MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING FEBRUARY 06, 2017 PRESENT: Chair Willie Charles Shaw, presiding, Vice Chair Shelli Freeland Eddie, Members Liz Alpert, Suzanne Atwell, and Susan Chapman, Executive Director Thomas Barwin, Attorney Robert Fournier, and Secretary Pamela Nadalini ABSENT: None The meeting of the Community Redevelopment Agency (CRA) was called to order by Chair Shaw at 2:51 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY MEETING OF JULY 18, 2016 (AGENDA ITEM CRA-1) Chair Shaw noted Community Redevelopment Agency (CRA) Board consensus to approve the minutes of the Special Sarasota Community Redevelopment Agency Meeting of July 18, 2016, as presented. 2. APPOINTMENT RE: NEWTOWN COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD (AGENDAITEM CRA-2) Secretary Nadalini stated that a vacancy exists due to the resignation of Joe Hembree; that Mr. Hembree held the seat designated for an individual who is a Commercial Real Estate Developer; that an Application was received from lan Black which is included in the Agenda backup material for CRAI Board's consideration. Chair Shaw noted Community Redevelopment Agency (CRA) Board consensus to appoint lan Black to the Newtown Community Redevelopment Agency Advisory Board (NCRAAB), for the seat designated for an individual who is a Commercial Real Estate Developer and congratulated Mr. Black on his appointment. 3. APPROVAL RE: REQUEST THE CRA TO RECOMMEND TO THE CITY COMMISSION AUTHORIZATION FOR THE AGREEMENT BETWEEN THE CITY OF SARASOTA AND THE GOTCHA GROUP, LLC, (RFP #16-67CM) PERTAINING TO THE FUNDING OF A DOWNTOWN CIRCULATOR TRANSIT SYSTEM IN AN AMOUNT NOT TO EXCEED $338,747.50 (AGENDA ITEM CRA-3) General Manager Economic Development Steven Stancel, Neighborhoods, Redevelopment and Special Projects Division, Neighborhood and Development Services (NDS) Department, Parking General Manager Mark Lyons, Parking Operations Division (POD), City Manager's Office and Downtown Improvement District (DID) Operations Manager John Moran, came before the CRA Board. Mr. Stancel presented a PowerPoint on the Chamber monitors and stated that a Request for Proposal (RFP) was completed for professional firms providing On-Demand Transit Services; that five proposals were received and four firms were interviewed to determine qualifications and ability to provide the required services; that negotiations took place using the terms of the RFP and standard procurement procedures leading to an agreement with The Gotcha (Gotcha) Group, LLC; that included in the Agenda backup material is a document entitled "Agreement for Funding of Downtown Circulator Transit System" to provide an on-demand, no-fee ride service to Downtown residents, merchants and visitors of the City; that the Contract is for a two-year Pilot Program which Gotcha will receive subsidization up to a maximum amount of $338,747.50, or $319,400.00 in monthly operating expenses via reimbursements, along with receiving $19,347.50 in upfront equipment purchases by the City; that funding for the Pilot Program will come from the Downtown Transportation Fund which includes Tax Increment Finance (TIF) and Transit Development monies; that subsidization is projected to be approximately $312,843.50 in year one of the proposed Contract and $25,904.00 in year two of the proposed Contract; that after year two of the proposed Contract, the service is expected to be funded 100 percent privately from advertisements plaçed on and within the vehicles and no further subsidies will be required from the City; that the higher Book 3 Page 31846 02/06/17 2:30 P.M. Book 3 Page 31847 02/06/17 2:30 P.M. subsidization rate in year one is the result of the initial start-up costs and an expected delay period for receipt of revenues from advertisement; however the maximum subsidization for the two year period may be reduced based on the advertisement revenue; that this form of On-Demand Transit System meets with the goals and objectives outlined in the Downtown Master Plan 2020, the Comprehensive Plan, the City-Wide Mobility Study and Strategic Plan; that Staff recommends the CRA Board recommends approval from the Commission for funding a Downtown Circulator Transit System between the City and Gotcha in an amount not-to-exceed 338,747.50. Mr. Stancel continued that this form of transportation is already in place in several communities across the country, including Boca Raton, Tampa, Delray Beach and Palm Beach, Florida; that Gotcha transportation services will provide six-passenger eco-friendly electric vehicles which can be hailed via a cellular telephone application (App), centralized telephone number, or by waiving the vehicle down at the side of the roadway; that a total of seven vehicles are being proposed and one will be equipped for those with disabilities; that vehicles will run twelve hours a day, seven days a week and will have an anticipated wait time of between five to ten minutes; that vehicles will be stored overnight in the on Palm Avenue; that the service areas identified will cover the entirety of Downtown, south from sarafs Street and west of the identified rail right-of-way adjacent to School Avenue, north of Mound Street and east of the Bayfront, which consist of the following seven distinct neighborhoods: 1) Rosemary 2) Gillespie Park 3) Park East 4) Laurel Park 5) Towels Court 6) Burns Court 7) Golden Gate Point and the Bayfront Mr. Stancel further stated that a study was conducted on the topic of Downtown Circulators by the City of Sarasota, Florida in 2015; that surveys and public workshops were utilized to determine who the users of these services would more than likely be; that the top three users discovered would be Downtown residents, Downtown Employees, and Hotel Guests visiting the City; that the study identified connectors in the Downtown area such as Main Street businesses, hotels, performing arts venues and other surrounding areas; that the Downtown area is becoming increasingly more populated and these services can help with transportation; that the proposed system of Gotcha has been endorsed by the Downtown Improvement District (DID), the Downtown Sarasota Alliance (DSA), the Sarasota Downtown Merchants Association (SDMA), the Downtown Sarasota Condominium Association (DSCA), The Greater Sarasota Chamber of Commerce (GSCC) and many private property owners; that Gotcha is from Mount Pleasant, South Carolina and formed in 2009 at Florida State University (FSU) and has since partnered with 29 other universities; that the company has also worked with other cities and towns on a small to large scale and has provided over five million rides without any reported accidents. In response to a question from Vice Chair Freeland Eddie asking if the City would receive a mid-term financial report, Mr. Stancel stated yes; that a report will be received and passed along to the CRA Board; that the vendors of Gotcha will also provide a monthly report; that the vendor establishes the rates along with the advertisements displayed on the vehicle and determines whether the revenue being generated is profitable; that the system is basically a reimbursement arrangement meaning the company is billed and sends receipts to the Neighborhoods, Redevelopment and Special Projects Division, Neighborhood and Development Services (NDS) Department and the excess of what is left over will be paid out. Discussion ensued about the boundary map areas the vehicles can travel to and from on a daily basis as outlined on the map displayed on the Chamber monitors, the vehicles currently being limited to streets with a 35 miles per hour (MPH) speed limit due to safety issues, and the Florida Department of Transportation (FDOT) has already been contacted regarding the possible use of bicycle lanes on main roads to help ensure safety. In response to a question from Vice Chair Freeland Eddie asking if the City would still be responsible for fees should Gotcha experiment not perform as well as planned, Executive Director Barwin sought CRA Board consensus to have Griffin Blackwelder, Vice President of Gotcha come before the CRA Board to address the question. Chair Shaw noted CRA Board consensus for Griffin Blackwelder, Vice President of Gotcha to come before the CRA Board to address the question. Griffin Blackwelder, Vice President of Gotcha, came before the CRA Board and stated that Gotcha is in charge of leasing or buying the vehicles outright; that this same practice is utilized all around the country; that the City will not be held responsible for any leases or agreements should the initial agreement be terminated. In response to a question from Member Atwell about the two-year proposed contract and how the operation will fully finance itself after the second year, Mr. Blackwelder stated that the majority of revenue comes from advertisements on the vehicles; however the company is dediçated to the account executives and business development people who perform research for companies to market the vehicles. Discussion ensued about the telephone App to be used for reserving rides which performs in a queue system with a waiting list for drivers to view. In response to a question from Member Alpert about the average wait time, Mr. Blackwelder stated that the average wait time is approximately five to ten minutes; that the company also has the ability to notify waiting customers of any time delays. In response to a question from Member Chapman about the proposed success of Gotcha as the result of past circulators not being successful, Mr. Stancel stated that the belief is in the past those circulators were primarily fixed-route systems and were on set schedules; whereas these are not fixed-schedules, and Mr. Blackwelder stated that the drivers are not stationed somewhere idle waiting for someone to use the App for a pick-up; that when the drivers do not have passengers, they are travelling within the most highly-dense areas of the city looking for other pickups as soon as they are dropped off, or awaiting somebody to hail them. Mr. Moran stated that the CRA Board is also reminded that Gotcha has been in business since 2009 and has proven themselves in other cities, and Mr. Lyons stated that the equipment typically requires a Commercial Driver License (CDL), the requirement of every vehicle being Americans with Disabilities Act (ADA) equipped, or are fuel driven which would make the transportation systems more expensive are not being utilized. In response to a question from Vice Chair Freeland Eddie about the Designated Service and the Systems Service Managers as related to the budget and listed in the proposed agreement, Mr. Lyons stated that the costs for the two positons have already been accounted for within the Gotcha plan; that Gotcha will hire their own Designated Service and the Systems Service Managers to manage the system. Mr. Moran stated that a spreadsheet entitled Gotcha Monthly Revenues and Operating Expense Budget-Years 1, 2, and 3 = Sales Rate Incentive Formula" was created which Gotcha has agreed to is included in the Agenda backup material. In response to a question from Vice Chair Freeland Eddie asking if the City's subsidy covers for both positions although they are not City employees, Mr. Moran stated correct; that the positions are still through Gotcha and more than likely local personnel will be recruited and trained assuming the contract is approved. Discussion ensued about the profile of a Gotcha driver with safety being the number one priority, going through complete packground checks, having multiple interviews before hiring and the importance of hiring individuals with personality who are local and familiar with the region. Book 3 Page 31848 02/06/17 2:30 P.M. Book 3 Page 31849 02/06/17 2:30 P.M. Discussion ensued about the pick-up and drop-off location sites, the operation to be monitored by City Staff, Gotcha providing the City with monthly reports on ridership, hours of operation, along with loss of service, all vehicles having the capability to run up to four hours after being fully charged electrically, open invitation for residents to name the On-Demand Transit System and the suggested name S-Cargo for Sarasota Car Go. In response to a comment and question from Vice Chair Freeland Eddie about monthly invoicing since the agreement states the invoices will be approved by the City Manager and asking if this is normally done by the Purchasing Division, Mr. Lyons stated that since the Parking Division will be monitoring the program and the service is contractual, Staff will be approving. In response to a comment and question from Vice Chair Freeland Eddie about the modification of services and scope, and asking if this is also related to parking, Mr. Lyons stated that any approval would go through the Parking Office Division (POD) which would be done in concert with consulting with the Planning Department and Gotcha management to ensure that the ridership levels are being met and the frequency of the service and any delays which may be noted are addressed; that Staff will be able to capture any of these issues in order to utilize the administrative process necessary for making adjustments as quickly as possible; however some changes may have to be made within a two-week period as the result of Special Events requiring additional fleet service. Vice Chair Freeland Eddie recommended that those changes be reflected in the proposed agreement should the CRA Board move approval. Chair Shaw stated that the power of the wind and resistance should be taken into consideration when determining the route to St. Armands Circle and travelling over the bridges. In response to a question from Member Alpert asking if the App has a name, Mr. Blackwelder stated that the App is currently called the Gotcha Ride; however the App drivers are not setup and will not work if downloaded. Executive Director Barwin stated that as related to adding language to the modification of services and scope when a manager is generally overseeing a project, Administration often delegates to Staff for timely review which is then brought back for review and consideration; however Staff will review with the City Attorney's Office first to ensure any changes are aligned properly with City Codes. The following person spoke: Patrick Gannon, President, Downtown Sarasota Condominium Association (DSCA), read a prepared statement indicating the DSCA Board has been kept updated about the plans for the Downtown Circulator for over a year and had previously endorsed the plans to move this proposed plan forward, this Downtown Circulator is being viewed as a very positive project which will help reduce traffic congestion in the Greater Downtown area and enable groups of people to gather together and come to Downtown to visit restaurants and retail establishments or any of the cultural venues, thereby helping to reduce congestion on City streets and may also free up parking for others coming Downtown, the Community Redevelopment Agency Board (CRA) is urged to recommend the Commission approve the proposed contract with The Gotcha (Gotcha) Group, LLC and fund the startup period for this new vital service. A motion was made by Vice Chair Freeland Eddie, seconded by Member Atwell for the Commission to approve the agreement for funding of a Downtown Circulator Transit System between the City of Sarasota and The Gotcha (Gotcha) Group, LLC in an amount not-to-exceed $338,747.50, and to include language as related to the modification of services and scope, which carried by a 5-0 vote. 4. ADJOURN ie A Chair Shayetigimedt the Community Redevelopment Agency (CRA) Meeting at 3:31 p.m. - / 4 : oo S SDno Willie Charles Shaw, Chair Attest - A.o Pamela M. Nadalini, Secretary Book 3 Page 31850 02/06/17 2:30 P.M.