WPB Loses Two More Valuable Employees!
More fallout from the Sunset Lounge, this time the City has lost two valuable employees,WPB Procurement Official Paul Bassar, and Kathleen Walter, Communication Director.
Keith James was sworn in as Mayor in 2019 and Frank Hayden was the City Procurement Officer for many years until he was re-assigned to the Office of Economic Opportunity.
James & Johnson then hired Nathaniel Rubel and shortly after Paul Bassar. In three years the City has had three Procurement Officers, now looking for a forth. An employee who wishes to remain anonymous mentioned “they were pushing Paul to do something with those bids he didn’t want to do so he just resigned and from what I understand went back to work for the Federal Government.”
Who is Paul Bassar.? Obviously a man of integrity.
Education:
University of South Carolina Bachelor’s degree: Interdisciplinary Study.
Strayer University: Master’s Degree: Public Administration.
“Paul Bassar As a Senior Procurement Analyst my primary responsibility is to provide customer service in the area of contract administration (both pre-award and post-award) and day-to-day guidance, both written and oral, to a wide variety of senior leaders, managers, team leaders, and users throughout Consular Affairs.”
Aug. 3, 2022 A letter sent to Mr. Ben Bush, Co- Owner of Mad Room Hospitality, LLC from WPB Procurement Official Paul Bassar.
“It has been brought to my attention that Mad Room Hospitality, LLC, violated the terms and conditions of the RFP and the City Code of Ordinances by contact with the Mayor and a City Commissioner.”
The Mayor being Keith James, and Commissioner Peduzzi.
The story was written by Terry Parker, Investigative Reporter for channel 25 (WPBF) after Vita attorney Malcolm Cunningham obtained emails from Mad Room to James and Peduzzi, thanking them for their support; which Cunningham pointed out was also a violation of the city code prohibiting any contact until the contract was executed. Parker’s story can be read below, and if you are interested in reading the the emails between the parties which WPBF has included please click on the link “Read the letter here:”
Who is Kathleen Walter? In my opinion a woman who has been there, done that, and can’t do it and longer.
Kathleen Walter hired by Mayor Jeri Muoio in Dec. 2016 as the Cities Communication Director.
Below is an excerpt from the PB Post, and the entire story can be read below.
“West Palm Beach has named WPEC Channel 12 reporter Kathleen Walter as the city’s new communications director.
Walter, a Smith College graduate, also worked for WPTV, WPBF and News Max, and served as public relations director for Hospice of Palm Beach County and communications director for the Dori Saves Lives Foundation.
She earned a bachelor’s in English from Smith College, and graduated magna cum laude from Florida Atlantic University with a master’s in political science.
Walter’s bio on the WPEC website lists her as an investigative reporter, anchor and political analyst who has interviewed heads of state, including Presidents Bill Clinton and George H.W. Bush, as well as legislators and presidential candidates Hillary Clinton and Mitt Romney.”
https://www.palmbeachpost.com/story/news/2016/12/25/mayor-picks-tv-reporter-kathleen/6985542007/
I sincerely wish Mr. Bassar and Ms.Walter the best life has to offer in moving forward with their lives.
The end
Sunset Lounge Open House
The event was held on Saturday 10-8-2022 @ 11:00 AM and there were to be 2 showings.
A presentation by Dr. Alisha Winn on “Historical background” and she spoke on the “Styx” when people of color lived on the island of Palm Beach and what became of them. A story on the Styx can be found at the end of the story and draw your own conclusions as to which version is believable those of African Americans or the Palm Beach Historical Society’s version.
Looking around an elderly gentleman caught my attention by the name of Arthur L. Freemon, who walked with the aid of a walker, and he was on the dance floor swaying with music only he could hear and a serene smile on his lips. I made it a point to introduce myself and we spoke for a while. I asked if he attended the Lounge when it was opened and he shared a story with me and gave permission for me to share with readers. His story.
Mr. Freemon was in the service and on some type of training mission when the day was over some of his friends were planning a trip to the Sunset Lounge to unwind and invited him to go. He declined saying he was tired and just wanted to go home. His friends insisted, and he again declined the invitation and went home.
He was home for a short time when a knock on his door found his friends outside asking him to join them saying don’t make us come in and take you out by force. He relented and joined them for a trip to the Lounge. My next question was “did you have a good time?” He responded “it was the best night of my life, I met my future wife that night, and we danced the night away, and that was 47 years ago.” The Sunset lounge held good memories for Mr. Freemon and he was excited it was about to be reopened.
The picture above shows the 2nd. floor where diners ate while watching the dancers below them and the space under the 2 centered windows is where the band set up.
Happy residents at the Open House checking out the dance floor. Double click pictures to enlarge.
Jade Jarvis, Anchor/Reporter for Channel 25 (WPBF) has written a story concerning the City’s Open House for the Sunset Lounge and reads in part:
Saturday, community members in West Palm Beach got their first look at the renovations inside the historic Sunset Lounge since they started back in 2019.
The project is several years in the making and officials said there’s still a ways to go before it can open its doors officially.
“It’s been a long time in the making, but this is a location that wasn’t just a music venue. And it wasn’t just a lounge. It was really a place that meant so much to the community and was a place that gave people a sense of purpose and place,” Christy Fox, a West Palm Beach city commissioner, said.
The entire story is below and when you open the link you will find 2 more links and I encourage readers to take the time to read Previous Coverage on “Judge orders West Palm Beach Mayor Keith James to give deposition in Sunset Lounge lawsuit” and “Vita Lounge LLC files lawsuit against West Palm Beach for disqualifying it from running historic Sunset Lounge”
https://www.wpbf.com/article/community-members-invited-inside-sunset-lounge-for-sneak-peek/41565457
Below is a story on the Styx and includes quotes from former City Commissioner Richard Ryles, Everee Jimerson Clarke and Derrick McCray. Clark and McCray are decedents from folks who lived in the Styx.
https://cbs12.com/news/local/the-folklore-surrounding-the-styx-of-palm-beach
“Officials said construction project fees estimate to be $16 million.”
As hard as I tried I couldn’t see where 16 Million was spent and it’s reassuring to me that the City’s Internal Auditor is continuing to audit the project.
The Sunset Lounge is extremely important to the African American community and the City needs to step up and do the right thing by finishing the project so older residents can stroll down memory lane as they did Saturday and the young can began making their memories.
The end
Coffee With A Cop 10/5/2022
The event was held at the new Salento Coffee Shop (formerly Dunkin Donuts) in the City Hall Courtyard. I noticed colorful chairs and tables outside and hope they are there to stay.
City Commissioners made an appearance along side the Police Officers and talked to residents who voiced concerns, and thanked them for their service. They were there to listen and listen they did. The event was a success with approximately 100 residents coming and going.
The highlight for me was meeting an old friend “Moose”
Moose, a Bloodhound, was donated to the WPB Police Dept. when he was 3 months old and I remember thinking at the time will he ever grow into his large ears, nose and feet? He did! Moose and his “mom” Officer Jen Hardiman entertained many visitors who wanted to pat him and ask questions. Moose goes home every evening with Jen and helps locate kids and senior citizens who wander away from home, and there have been success stories. Moose got thirsty and bent down to get a drink of water when I noticed his ears floating in the water and started laughing when Mom Jen pulled out a towel and started wiping his ears and face. They make great partners and Jen keeps in shape walking him. Moose showed me his best side (profile) and my apologies for chopping off Jen’s head. I should not be allowed to use a camera—–ever. Double click to enlarge pictures.
I met some nice residents and one woman by the name of Shannon Hunihan was introduced to me and she is the Chief Marketing Officer for Mint ECO Car Wash and the company washes the Police Cars for free. No charge, obviously a supporter of our first responders. We had a conversation and she told me the great deal offered to all with a dirty car. I will take advantage of a good deal and will share with readers they have 3 locations listed below along with monthly deals.
Southern Blvd & Dixie HWY 316 Southern Boulevard, West Palm Beach, FL.
Okeechobee & FL-Turnpike West 1950 Golden Lakes Blvd, West Palm Beach,
Indiantown & I-95 220 Maplewood Drive, Jupiter, FL.
I included their website for convenience and there are great values to be had, such as:
Shine Package Plus $35.00/month unlimited trips to the car wash.
Shine Package $30.00/month unlimited trips to the car wash.
Clean $20.00/month unlimited trips to the car wash.
If you bring your car in 10 times a month, they will wash it, no additional charge.
https://www.mintecocarwash.com/
Speaking of cars, my only disappointment with the event was being able to park on Clematis street near the event. The City has removed many metered and handicapped parking spaces and what is left is hard to come by. There was a Police car and a WPB city van parked in metered spaces along with undercover police cars. I complained so lets see what happens.
If you have been following the stories on the Sunset Lounge the City is having an open house.
Historic Northwest Community Meeting & Sunset Lounge Open House
Historic Northwest Community Meeting & Sunset Lounge Open House
Date: 10/08/2022 11:00 AM – 3:00 PM
Location: Sunset Lounge
609 8th Street West Palm Beach, Florida 33401
The end
Mayor Keith James Court Ordered To Give Depositio
Two TV stations WPBF 25 and WPTV 5 News have recently reported stories on the problem the City is having finding a company to run the newly refurbished Sunset Lounge, and both stories are included. Below you will find excerpts from both 25 & 5 news stations. My comments in italic.
WPBF 25 News Terri Parker Investigative Reporter
Judge orders West Palm Beach Mayor Keith James to give deposition in Sunset Lounge lawsuit.
The city filed a protective order motion saying James had no direct knowledge of firm’s disqualification to run the venue.
A judge has ordered Mayor Keith James to give a deposition in the lawsuit filed by Vita Lounge, LLC over its disqualification to run the Sunset Lounge, saying the company is entitled to discover what role James played in pushing them out.
As Vita Lounge LLC goes forward with its lawsuit against West Palm Beach for disqualifying the company from running the historic Sunset Lounge, lawyers tried to shield James from testifying by filing a motion for a protective order.
James voted in June for the Miami company Mad Room Hospitality to run the newly renovated, $16 million Sunset Lounge, saying he thought Mad Room was better equipped to take on the big job than local contender, Vita Lounge LLC.
But Vita won the vote. Two days after Vita secured the bid to begin negotiations, James sent an email to the city attorney questioning whether Vita had violated the “cone of silence” by giving an interview about the Lounge to WPBF 25 News.
And now that Vita is suing, the city didn’t want James to explain what made him question Vita’s actions — questions that led to their disqualification.
When Vita filed to take James’ deposition last month, city lawyers filed a protective order, including a signed affidavit from James, saying in part: Please read the entire story below.
But Judge John Kastranakes questioned that – saying, according to a court transcript:
“One could legitimately question the veracity of that statement given the emails. Why shouldn’t the Plaintiff be able to depose the mayor as to what caused him to send that? How did he get wind of that?”
Vita’s lawyers are implying James was searching for a pretext to disqualify Vita so his choice, Mad Room, could take over, which is what happened.
Mad Room said it is no longer interested in the job, and the trial with Vita will be tentatively scheduled for late October.
The Sunset Lounge remains empty, costing taxpayers an estimated $30,000 a month according to city staff.
https://www.wpbf.com/article/judge-orders-west-palm-beach-mayor-keith-james-to-give-deposition-in-sunset-lounge-lawsuit/41253470
WPTV 5 News Michael Buczyner The Channel 5 stories mention three people interviewed for their story, Robbie Littles, a former City Commissioner, Rodney Mayo, Local business owner and Lia Gaines, a staunch advocate for African Americans.
Ballooning costs, inability to find operator hamper West Palm Beach’s efforts to revive historic Sunset Lounge.
The city of West Palm Beach and its community redevelopment agency are creating a new African American cultural tourism destination.
The publicly-funded redevelopment of the Sunset Lounge in the city’s historic Northwest neighborhood hopes to “pay homage to the rich jazz and Black history of the area.
“This was the entertainment hub,” Robbie Littles said. “It was the only place the good top-shelf Black entertainers could perform.”
Littles recalls musical memories he made at the Sunset Lounge as a young man.
“We sat out on a hood of cars at night when the big entertainers were here and listened to it,” he said. “At that point in time, for Black folks, this was the only place for us to go.”
Mayor Keith James and CRA Director Christopher Roog declined multiple requests for an interview to answer WPTV’s questions about the project, including the cost.
Local business owner Rodney Mayo told Contact 5 that he recently toured the Sunset Lounge.
“I was concerned where all the money went but once you walk in, you’re like, ‘This is where it all went,'” Mayo said. “They really didn’t skimp on anything. It’s really all first-class finishing.”
The city wouldn’t allow our cameras inside the renovated venue to see how the dollars were spent, despite multiple requests. Why was Mr. Mayo allowed to tour the Sunset Lounge and Channel 5 was not?
When pressed why and a spokesperson told Contact 5 that the city is planning an “open house for the community” once they receive a certificate of completion from the building department.” I would find it hard to believe Channel 5 bought the reason. Hopefully they verified a certificate of completion has not been issued.
Mayo said he considered applying to operate the Sunset Lounge but doesn’t think it’s viable.
“Dinner theaters are kind of done. They don’t exist anymore for a reason because it’s a bygone era,” Mayo said. “You cannot bring back the past or recreate the glory, sometimes you have to adapt to what the current market is and the current market is not what they are building.” I respectfully disagree with Mr Mayo’s statement. At the end of the story please read about 30 Dinner Theaters in Florida.
Mayo believes for the Sunset Lounge to shine, the CRA should go back to the drawing board and develop a new plan.” OMG seriously?
That has people like Lia Gaines concerned about what it could mean for the future of the historic Northwest neighborhood as cranes pierce the horizon and development creeps closer.
“They have no place else to expand to, so they have to come north,” Gaines said.
“It’s still the area closest to downtown,” Littles added. “It’s still the area closest to the water.”
And as Littles looks on to the future, he’s hopeful for new musical memories at the Sunset Lounge and the historic Northwest neighborhood he knows so well.
Entertainers like Ella Fitzgerald and Louis Armstrong graced the Sunset Lounge dating back to the 1940s and 1950s, making it a “premier African American entertainment” venue at a time of racial segregation.”
At the time it’s all the African Americans could claim as “theirs” and should be returned to them, and Vita Lounge, LLC, a black owned, local business should be allowed to operate the lounge. Just common sense.
The CRA recently estimated operating costs for the Sunset Lounge at around $26,000 a month to maintain the building. Staff gave a figure of $30,000.00 to WPBF 25 news, and $26,000 to WPTV 5. Staff should have a meeting and agree on a figure. I’m going to use $26K and if correct James has cost the taxpayers since June a total of $104,000.00.
A spokesperson told Contact 5 that the city is expected to issue a new solicitation for the operation of the Sunset Lounge in the near future.
30 Dinner Theaters in Florida
https://www.tripadvisor.com/Attractions-g28930-Activities-c58-t117-Florida.html
The end
Public Comment
November 5, 2021, Story published in WPB Watch, and a comparison will be made between Cohen Brothers development of the Tent Site and City property discussed at the City Commission meeting held 9/6/2022.
“The Tent Site is a piece of city owned property that has been dormant and a terrible eye sore for 24 years, until the Cohen Brothers has a vision to build “West Palm Point”
It’s the end of the meeting and Commissioner Peduzzi, James was absent, asks the City Clerk if there are any comments emailed to the City. Well, yes there are. In fact there are 77 comments to be read. Due to the amount the Clerk is advised to just read the names and addresses, and if they are in favor or opposed to the project. I listened and wrote every name and address down.
All 77 comments were opposed to the project, and if that’s not surprising to readers this should be. The vast majority who opposed live in my area, District 2, called the Villages and live many miles from the Tent Site.
Sept. 6, 2022 City Commission Meeting.
8.4. “Resolution No. 240-22 finding that City property located at the corner of Quadrille Plaza Drive and Clematis Street is not needed for City purposes, declaring the property as surplus, and authorizing the conveyance of the property through negotiation of the sale with NL 512, LLC.” Who are they?
Mr. Rodney Mayo sent email to the City on Tue, Sep 6, 2022 @ 4:24 am, and can be read below. If you own and love a dog as many of us do, please take the time to read the email. The picture was included with Mr. Mayo’s email. Click to enlarge.
“Dear Commissioners,
Although I do not oppose the sale of this strip of land in hopes that it will be put to a better use I must express my disappointment over our repeated attempts over the past 4 years to utilize this public property as an art installation and most recently a dog park.
In 2019 we first approached the CRA who claimed ownership and control over this strip of land. We proposed an art wall installation similar to the Wynwood Walls in Miami’s art district. We offered several different proposals at no cost to the city or the taxpayers. We just wanted to create an inviting environment for residents and visitors to downtown. As the entrance to the 500 block from the east, that strip of land is the first thing people see heading west. We have tried over the years to make the 500 block a destination by creating entrance planters, weekend street closures and events. We offered all the usual criteria , safety plan, liability insurance, agreement to remove and restore the lot. We asked the DDA for help to get it approved but was told it was CRA property and they could not help.
After some time waiting for approval we were told we could not use the lot and that the CRA had plans they could not disclose.
We then approached the CRA and the DDA together to create a dog park on that site. Again paid for by private business and at no cost to the city, CRA, DDA or taxpayers. After a few months of getting bounced around we were finally told that the lot belonged to the city and we would have to contact them. I am confused as to why for 3 years we were told by the CRA the lot was under their control.
We proposed a dog park with irrigation, dog bag dispensers, obstacle course, seating and shade. We offered to do this as a pop up with no strings attached. If the lot was sold or needed for another use we would remove everything and restore to its current state. (Currently the lot is not maintained, it is half sand and mud, there is no irrigation and the hedges are dying.)
We were told no by the city representative.
Even if this lot sells or goes under contract to a private entity the time frame for construction is Atleast 12-18 months away.
We would like the opportunity in that time, for what ever time, to create a pop up dog park for our community. The lot currently is used as an impromptu dog park, we would just like the opportunity to beautify , maintain and perhaps save a puppy or 2 from the barrage of sand spurs that currently exist.
After all this is taxpayer property and it would be nice if the taxpayers could actually benefit from it before it is disposed to a private developer.
Sincerely
Rodney Mayo
Subculture Group”
9/6/2022 Discussion by City Officials on the piece of surplus land.
The area under discussion is the red section on the right. Click to enlarge.
Jennifer Ferriol, Director of Housing and Community Development, made the presentation for Resolution No. 240-22.
James: “Now we have a number of items that came from the portal and have been distributed to you Commissions. Madam City Attorney, are we obligated to read these out loud with comments coming from the portal?” City Attorney: “You have the comments in front of you so you can read them and take into consideration as you make your decision. We will keep the comments as public record.”
Residents who took the time to email the City with their comments and submit them by 2pm requesting a dog park were ignored, their name, address and comments were not read out loud for their opinion as was done at the Cohen Brothers project when 77 residents asked the City to deny their project. It appeared to me James did all he could to keep Cohen Brothers away from the Tent Site.
We don’t know how many emails were sent, and I will go out on a limb and suggest all emails were in favor of a temporary dog park. Did City Commissioners have the time to read residents emails in the Portal before making their decisions?
The Parcel proposed for surplus is 25’ wide and when Commissioner Fox asked the length of the property. Ms. Ferriol admitted she didn’t know but would have an answer when they meet for the second vote.
So, who is NL 512, LLC. See definition of LLC below.
NL 512, LLC is a Florida Domestic Limited-Liability Company filed On August 25, 2022. The company’s filing status is listed as Active and its File Number is L22000372131.
The Registered Agent on file for this company is Jones Foster Service, LLC and is located at 505 South Flagler Drive, Suite 1100, West Palm Beach, FL 33401. The company’s principal address is 285 Banyan Boulevard, West Palm Beach 33401 and its mailing address is 285 Banyan Boulevard, West Palm Beach, FL 33401.
The company has 1 contact on record. The contact is Navarro Lowrey, Inc. from West Palm Beach FL.
NAVARRO LOWREY, INC. 285 Banyan Boulevard West Palm Beach, FL. 33401
“Navarro Lowrey is a focused commercial real estate provider that owns, develops, leases and manages commercial real estate properties from its corporate headquarters in West Palm Beach, Florida.”
What is the meaning of a limited liability company?
“A limited liability company (LLC) is a business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.”
Jones Foster Service, LLC filed On August 25, 2022 with the Florida Department Of State Business Registration, 13 days before the City Commission met to decide on a piece of surplus City owned property. If I didn’t know better I would think Jones Foster or Navarro Lowery had a heads up. I’m sure it’s just a coincidence both have the same business address: 285 Banyan Boulevard. Will the City request an appraisal and accept bids on the land, or has the decision been made?
https://www.bizapedia.com/fl/nl-512-llc.html
The end.
Possible reason the WPB CRA Is Losing Millions!
Below is a section of the City’s IA (Internal Audit) the City’s watchdog who reports on waste, fraud and abuse was release June 22, 2020, and is the first report issued. The audit is ongoing.
“Community Redevelopment Areas are established by local governments to carry out redevelopment activities that include reducing or eliminating blight, improving the economic health of an area, and encouraging investments.
The WPB CRA works with residents, property owners, businesses, developers and other community organizations to foster redevelopment within the CRA Districts.”
CRA Funding:
The primary funding source available to the CRA consists of Tax Increment Revenues. Tax Increment Revenues are a unique tool available to cities and counties for redevelopment activities and are used to leverage public funds to promote private sector activity in the targeted redevelopment areas.
4. Contract Procurement can be read on page 14.
First Contract:
“After a competitive bidding process, the City entered into an agreement with RMA to staff the CRA with an initial term of three years that was extended by an additional two years, for a total of five years, thereby exhausting all available extensions.
The contract was executed in December 2013 and was scheduled to expire in December 2018. However, in 2016, the Palm Beach County Inspector General’s Office (IG) issued Investigative Report No. 2016-0002 that included a review of the procurement process for this contract. We reviewed the IG report and the City’s procurement documents related to this contract. We found that the IG report was sufficiently reliable to provide an independent assessment of the procurement process for this first contract. A copy of the IG report including the related documents can be found in the Attachments section of this report. We note that the IG report recommended reviewing the contract and taking appropriate action. Thus, we focused our efforts on assessing the procurement of the second contract.
Second Contract:
We reviewed the documents related to the second contract with RMA and found that in September 2018, a new contract was executed between the City and RMA without going through a competitive bidding process and was approved by the Commissioners. We found that the contract value after five years was about $6.4 million to a single vendor. This contract was brought before the City Commissioners for approval in August 2018, as Resolution No. 242-18, which did not meet the Procurement Code requirements. Specifically, the requirements not met were placing an RFP/RFQ for vendors to competitively bid on the contract. We found that the supporting documents did not clearly indicate that 1. New competitive bids were required to obtain a new contract, and 2. The Commissioners were being asked to waive this particular requirement. We acknowledge that it is within the Commissioners discretion to waive procurement requirements, however, requests made to Commissioners should be clear and transparent, particularly in high-dollar contracts to single vendors.”
“Rasing questions about contract awarded to RMA”
By: Niels Heimeriks Posted at 3:19 PM, Sep 28, 2016 and last updated 3:20 PM, Sep 28, 2016
“A report by the Palm Beach County Inspector General’s Office released today is highly critical of the city of West Palm Beach, its former spokesperson Elliot Cohen and a city contractor in charge of redevelopment.
The Inspector general concludes that former city spokesperson Elliot Cohen disclosed classified information to the public; that he used his position and city resources to run his private side business, and that he improperly had a side job with a city contractor.
But the county watchdog goes even further, saying that Cohen misused his position to solicit business for his private firm.
As a result the O.I.G. brings into question whether the more than $3 million the city has paid RMA was wasteful, or even fraudulent spending, and recommends the city review its contract.”
Below is the story written by WPTV Chanel 5 Niels Heimeriks
Jon Ward was the Executive Director of the Community Redevelopment Agency before Mayor James replaced him with city employee Christopher Roog, although RMA employees are still on the job.
I placed a PRR (Public records Request) for information on how much money the City actually paid out for the still closed Sunset lounge, and received an invoice for $150.00 for the information, which I am not willing to pay.
“Jon Ward, executive director of the Community Redevelopment Agency, noted that several significant projects are getting underway, after years of studies by urban design consultants.”
https://rma.us.com/just-in-west-palm-beach-digs-into-clematis-street-makeover/
What is the hourly salary?
Urban Design Assistant $105.00/Hr; Urban Designer 1 $115.00/Hr; Urban Designer 11 $125.00/Hr; Sr. Urban Designer $150.00/Hr; Director- Urban Design & Planning $185.00/Hr.
A reader of WPB Watch also placed a PRR and received the response below which was shared with me, and I am now sharing with readers. Click on the picture to enlarge.
A PRR Will Cost You $150.00 In WPB
CRA Organization Chart Information received from WPB Dept. Internal Auditor.
CRA Board Mayor Keith James, Commissioners Fox, Lambert, Peduzzi, Ward and Warren.
Executive Director Christopher Roog
RMA Principals
Deputy Director & Administrative Assistant
Marketing Manager & Northwest Project Manager
Special Events Coordinator & Northwest/Pleasant City Manager
Real Estate Associate
“We note that the CRA structure has changed and the new Executive Director is now a City employee. All other personnel are employed by Redevelopment Management Associated (RMA) and are assigned to the City’s CRA by RMA.”
A resident sent a PRR on Mon, Aug 15, 2022 @ 1:00 pm which reads “part 2 Internal Audit Report on page 5 there is a Organization Chart that includes a Real Estate Associate. Please Name of Real Estate Associate, resume and salary” Received a response from the City, except the information he requested was not provided. See City response here. Sunset Lounge A.L. PRR
Mayor Kith James stated it is costing the City $26,000/month to operate the vacant Sunset Lounge at a CRA meeting when discussing the disqualified bidder (Vita) in what I believe was an attempt to push the Commissioners into a decision to decide on Mad Room. I can’t believe James is truthful and spending that amount of money on an empty building and placed a PRR.
My PRR sent 8/15/2022 @ 8:39AM. ” Please send me all invoices and receipts paid for the Sunset Lounge for the months of May, June and July for year 2022. Thank you in advance for your help.”
City responded Tue, Aug 16, 2022 @ 8:56 am with an Invoice. PRR will cost me $150.00. $75.00 deposit to start process and $75.00 on delivery. City states $200.00/per hour and apparently it will take 45 minutes. See invoice here. Sunset Lounge Invoice $150.00
CRA Management and Staffing Contracts:
“Up until 2013, the CRA was managed and staffed by the City of West Palm Beach. In 2013, a competitively bid contract to manage and staff the WPB CRA was awarded to Redevelopment Management Associates (RMA) for a three-year term to commence on January 1, 2014 for the amount of $41,000 per month from January 1 – February 28, 2014 and increased to $78,000 per month on March 1, 2014, for the remainder of the agreement. This monthly fee was subject to a 2.5% increase, effective October 1st of each year. Per the contract, the City of West Palm Beach had the option to extend the term for up to two additional years by the execution of a written amendment to the contract. After the extensions, the first contract was set to terminate on December 31, 2018. However, in September 2018, a new contract was entered into with an effective date of October 1, 2018, and it was not competitively bid. This contract, like the prior contract, is currently in effect for three years with the option to extend for an additional two years through the execution of a written amendment. The compensation for this contract is $99,750 per month and is subject to a 3% increase, effective October 1st of each year, which comes to a cost of about $6.4 million over five year.”
I attended the meeting in 2013 and recall when the CRA contract was discussed and approved and that was the first and last time a “Request For Qualification” and not a “Request For Proposal” process, meaning that the city wouldn’t attach a specific dollar figure to the bidding process. The City automatically renewed the contract, the only difference was RMA received a substantial raise every time, and there is no need to wonder why the City ” wouldn’t attach a specific dollar figure”
At the time Mayor James was Commissioner James and voted for approval.
The City may have placed Mr. Roog as Executive Director of the CRA although 7 employees of RMA are still running the show. Where are taxpayers dollars, now gone missing?
James and Johnson, the two that run the City with an iron fist is throwing good money after bad. A City where employee moral is at a all time low, many in fear losing their job.
Commissioners I write these stories for you as well as the residents of WPB for no other reason than to bring to your attention to what is happening in our City that “Staff” conveniently leave out of presentations. If James and Johnson want it staff better sell it or become another Phyllis Brooks, fired after 38 years of service.to a City she loved.
As far as the Sunset Lounge, which belong to the black community, in my opinion only a black management firm can properly run it.
I placed a call to Mr. Roog on Tues. 8/16/22 @ 11:22AM and left a message with my name and phone no. and requested a call back. I’m still waiting for the call.
The end
IA Report May 6, 2021 Part 2 + Surprise
West Palm Beach Community Redevelopment Agency Audit Part 2 Released May 6, 2021.
Unlike Part 1 of the audit, this report contains 23 pages, and sums up the report. Below are excerpts from the report and I urge readers to read it in it’s entirety.
1. Inadequate Controls and Oversight of CRA Expenditures
Condition Page 6
“Expenses Without A Project Code: 93 (15%) expense items were not allocated to a project code. We found that the project code assigned to these items was zero, instead of being allocated to a project code where costs could be tracked and accounted for. The CRA paid approximately $731,341 for the invoices related to these expenses.” Read the entire report for Criteria, Cause, Effect and Recommendation.
2. Insufficient Oversight of the Incentive Grant Program.
Condition Page 12
“The CRA offers Incentive Grant Programs that have specific guidelines and an application process that must be followed. Each Incentive Grant Award must be approved by the CRA board, We reviewed all 85 grant projects that were provided to us by the CRA including all 101 invoices submitted for reimbursement and found the following discrepancies:” Read the entire report for Criteria, Cause, Effect and Recommendation.
3. Fixed Assents Variances.
Condition Page 15
“During our review of the CRA’s fixed assets, we identified an area of concerns related to the City’s fixed assets. As of September 30,2020 the City had a balance of approximately $85 million of land recorded in the General Government and the balance included all departments that own land as well as the CRA. We found that $26 million (32%) of the $85 million was recorded as a lump sum value.” Read the entire report for Criteria, Cause, Effect and Recommendation.
4. Lack of Tracking and Monitoring of CRA Properties.
Condition Page 17
“We found that the process to track CRA owned properties was inadequate and ineffective. As such, the CRA could not confirm with certainty that the list of 95 properties that they identified as CRA owned properties was inclusive of all CRA properties.” Read the entire report for Criteria, Cause, Effect and Recommendation.
The IA (Internal Audit) Report could not have come at a better time due to the timing of the report and the controversy over the Sunset Lounge, and who will be chosen to manage it.
Below you will find the story by Investigative Reporter Terri Parker of WPBF (25) and Ms. Parker apparently requested a PRR (Public Records Request) from the city concerning the emails. Ms. Parker has included a three page letter dated 8/3/2022 from the Procurement Division to Mr. Ben Bush, Mad Room Hospitality, LLC and states Mad Room “violated the terms and conditions of the RFP” (Request For Proposal) Ben & Zach Bush are co-owner’s of Mad Room Hospitality.
Email from: Zach Bush to Keith James sent 6/27/2022 @ 11:15AM
Email from: Zach Bush to Joseph Peduzzi sent 6/28/2022 @ 9:04AM
Email from Keith James to Zack Bush sent 6/28/2022 @ 11:00AM. James points Mr. Bush to a project coming down the road and suggest he check it out.
The CRA should be abolished, there are many millions not accounted for and millions more spent in 2 areas of the city with no oversight. Easiest department to pilfer money from. No one watching.
Below is the IA Audit dated 5/6/2021
The end
Sunset Lounge–Starting Over!
Below are excepts from a newly released story on the Sunset Lounge and the ignominious failure the City made in their attempt to find an operator. My comments in Italic, entire story can be read below, and it contains links to stories on Channel 5 which makes for interesting reading.
FOX 29 WFLX
“Both potential operators of Sunset Lounge disqualified by city”
“It’s back to the drawing board to find an operator for a signature West Palm Beach redevelopment project.”
The latest twist comes after the city disqualified both of its bidders over alleged lobbying violations.
The city said Vita Lounge LLC, the minority group first selected, “blatantly violated” an ordinance against lobbying for the contract through Facebook posts and e-mails.
Vita denied the accusation and filed a lawsuit.
“The city then disqualified Mad Room Hospitality for allegedly making “courtesy contact with the mayor and a commissioner during the prohibited contact period.” Commissioner Peduzzi was the lone vote to approve Mad Room Hospitality along with Mayor James. Can we presume he was the Commissioner contacted?
In a statement to Contact 5 Thursday afternoon, the co-owner of Mad Room Hospitality said they were “improperly disqualified by a technicality.”
As a result of all of this, the city canceled the request for a proposal meant to find an operator to run the Sunset Lounge.
“The city’s community redevelopment agency said it costs about $26,000 a month to maintain the empty building.” $26,000 a month maintenance for an empty building. A PRR (Public Records Request) needs to be made. Readers were sent the Internal Auditors report on the CRA where millions were unaccounted for, what’s a few more thousand? Think about that when your trying to buy gas, food, money for the parking meters.
“A city spokesperson told Contact 5 that the CRA board will meet in the coming weeks to discuss the next steps and future operations of the Sunset Lounge.” Will meet in the coming weeks, not in a hurry to do what needs to be done, and give the contract to Vita who 4 Commissioners originally voted on before Commissioners Lambert and Ward changed course. Commissioners Fox and Warren stuck to their convictions to stay with Vita.
“Mad Room Hospitality was improperly disqualified by a technicality and the city, in my opinion, realized its error which is why they changed their course in posting the letter it did to DemandStar.” DemandStar, a company that handles Government Contract Bids, RFPs & Procurement. A PRR needs to be made to view the letter the city sent to DemandStar.
“We have requested from the City a letter rescinding their improper cancellation and we expect this to be forthcoming.”
“The city of West Palm Beach allows a responder to communicate with the city at the execution of a contract/agreement or once the solicitation stage has ended. It was clear then and remains clear now that the solicitation stage had ended.” Contract not signed.
“Ultimately, the City has to do what they feel is best for the community and we only want the best for the Sunset Lounge and the Historic Northwest District. Mad Room is not interested in pursuing this project further at this time.”
“For what it is worth, which we also made abundantly clear to the City–(which seemed to ruffle some feathers)-Mad Room does not feel Vita was treated fairly by the City of West Palm Beach.” Wow!
We certainly wish the City the very, very best in moving this project forward as the Community deserves and needs this project to flourish.”
https://www.wflx.com/2022/08/11/both-potential-operators-sunset-lounge-disqualified-by-city/
In closing the CRA has spent in the Downtown City Center a total of $174,271,223. Northwood/ Pleasant City $19,101,585. for a total of $ 193 million, 372 thousand, 808 dollars. I recently received part 2 of the Internal Auditors Report on the CRA, and that story will be coming shortly. Here are a few lines from the audit released.
Opportunities for Improvement
1. Inadequate Controls and Oversight of CRA Expenditures.
2. Insufficient Oversight of the Incentive Grant Program.
3. Fixed Assets Variances.
4. Lack of Tracking and Monitoring of CRA Properties.
In my opinion the city should seriously consider disbanding the CRA and stop wasting taxpayers dollars.
The end!
IA Report June 22, 2020 Part 1
My comments in Italic
IA (Internal Audit) report is lengthy and below is what jumped out at me. I have included the entire report below for your review. If you take the time to read it something may jump out at you that I missed.
The Internal Auditor (IA) dept. is overseen by the City Commissioners and the report (part 1) was issued when the dept. was severely understaffed.
IA Responsibility:
“Perform audits and provide services to help the City achieve the highest level of effectiveness and efficiency with uncompromised integrity. Promote compliance with laws, rules, regulations, policies, procedures, contracts, and agreements through reviews and analyses of the City’s services and activities.”
Contents: Page 3:
BACKGROUND Page 1
STATEMENT of SCOPE Page 2
STATEMENT OF OBJECTIVES Page 3
STATEMENT OF METHODOLOGY Page 3
STATEMENT OF AUDITING STANDARDS Page 3
AUDIT CONCLUSIONS AND SUMMARY OF FINDINGS Page 4
NOTEWORTHY ACCOMPLISHMENT Page 4
CRA ORGANIZATION CHART Page 5
OPPORTUNITIES FOR IMPROVEMENT Page 6
1. STAFF ASSIGNED TO THE CRA Page 6
2. MONITORING PURCHASES Page 9
3. COMPREHENSIVE OVERSIGHT OVER CRA ACTIVITIES Page 12
4. CONTRACT PROCUREMENT Page 14
RESPONSE FROM CITY ADMINISTRATION Page 16
RESPONSE FROM RMA (CONTRACTOR) Page 17
AUDITOR’S COMMENTS Page 18
ATTACHMENT A – PBC INSPECTOR GENERAL (IG) REPORT Page 25
ATTACHMENT B – GOVERNOR’S EXECUTIVE ORDER AND RELATED DOCUMENT Page 26
Page 1: Community Redevelopment Areas in the City of West Palm Beach:
“The CRA consists of two separate Redevelopment Districts the City Center Community Redevelopment Area, more commonly known as the Downtown CRA, and the Northwood/Pleasant City Community Redevelopment Area.”
CRA Funding:
“The primary funding source available to the CRA consists of Tax Increment Revenues. Tax Increment Revenues are a unique tool available to cities and counties for redevelopment activities and are used to leverage public funds to promote private sector activity in the targeted redevelopment areas.”
Page 2: CRA Management and Staffing Contracts:
“Up until 2013, the CRA was managed and staffed by the City of West Palm Beach. In 2013, a competitively bid contract to manage and staff the WPB CRA was awarded to Redevelopment Management Associates (RMA) for a three-year term to commence on January 1, 2014. In September 2018, a new contract was entered into with an effective date of October 1, 2018, and it was not competitively bid.”
CRA Revenues:
“From 2014-2019
“Downtown City Center CRA: $174, 271, 223” Appears to me the City considers Downtown the only area in need of improvement. The City should look at areas of the city that are pitch black at night. I’m sure residents would appreciate lighting.
Northwood/Pleasant City CRA: $19,101,58” Home of the Sunset Lounge. City (James) is concerned the City is paying a few thousands a month while waiting for MadMen LLC although the Commissioners approved Vita LLC the contract. He was a City Commissioner for 8 years, was not concerned about millions.
Total spent in 2 areas: $193,372,808.00, click to enlarge.
Page 3: Statement of Scope:
“The scope of the audit was from January 2014 through December 2019 (audit period) which is the period of time since the City outsourced the management and staffing of the CRA to RMA.”
Statement of Objectives:
“The objectives of the first part of this audit were to:
a. Determine whether the CRA was adequately staffed and had sufficient oversight over day-to-day operations; and
b. Determine whether CRA funds were used for CRA activities and properly accounted.”
Statement of Methodology & Statement of Auditing Standards. Also on page 3.
Page 4: Audit Conclusions and Summary of Findings:
“We concluded that there were opportunities to improve internal controls and management and oversight of the CRA operations. Specifically:
1. We found that some RMA employees assigned to the City’s CRA did not meet minimum qualifications for the positions they filled.
2. We found that there was inadequate oversight over the purchases made on City PCards such that p-cards were issued to non-City employees, purchases were not allocated to projects, purchases did not have sufficient justifications, and some purchases were not permissible under the P-Card policy.
3. RMA employees, acting as CRA staff, did not have comprehensive documented and/or established project management processes and procedures, that would have allowed them to independently provide comprehensive information on all CRA activities and the associated public funds.
4. The second contract with RMA did not go through a competitive bidding process, though it was approved by the Commissioners. We found that the supporting documents did not clearly indicate that a). a new competitive bidding process was required to obtain a new contract, and b). the Commissioners were being asked to waive this requirement. The procurement of the first contract was assessed by the Palm Beach County Inspector General’s Office and the report has been attached.”
Noteworthy Accomplishments:
“We acknowledge that the CRA under RMA’s management has been instrumental in improving various streetscapes and increasing community engagement through marketing and special events such as Bowties and Bourbon, the Heart and Soul Festival, and BBQ, Blues and Brews. We commend the Finance Department for taking immediate corrective action and deactivating the P-Cards.”
Page 6 – 8 Opportunities for Improvement
1. “Staff Assigned to the CRA
“Auditing standards indicate that disclosures should be provided when there are limitations or uncertainties with the reliability or validity of evidence. As such, we provide the following disclosures.
Over the course of audits, multiple attempts are made to obtain the data necessary to complete the review. Further, auditors follow up with audit clients to ensure that the data obtained is accurate. During the audits, we notify the audit client when we identify potential concerns and we provide sufficient information to facilitate a candid discussion. Specifically, we found the following concerns at the time the individuals were hired by RMA:”
Pages 6 -8 contain more info; and I encourage readers to take the time to read these 3 pages and notice the lack of over site from City leaders, concerning the contract with RMA not honoring the contract with unqualified employees earning from $95 to $155/hr. Two Employee closely related to RMA partner. It’s disgraceful.
Page 9-11:
Monitoring Purchases:
Condition
“The City’s Procurement Card Policy states that employees who have regular status with the City are eligible to obtain a purchasing card (P-Card). RMA’s contracts did not grant regular City employee status to RMA employees. RMA’s contracts clearly stated that some expenditures were subject to reimbursement and administrative fees and other expenditures could be paid for directly by the City. The contracts did not mention P-Cards. Based on our review, we found that an average of two RMA employees were issued P Cards with monthly spending limits of $10,000 per card and the majority of purchases were placed on an administrative assistant’s P-Card.”
Inadequate Oversight of Purchases
“From 2014 through 2019, there were about 1,040 P-Card transactions totaling about $253,000. Based on our review, we found insufficient oversight of purchases made as follows: For example, we identified purchases for:
1. Award luncheons/banquets and applications for awards (over $4,000),
2. Gift Cards (over $2,000), and
3. Work pants and shirts for RMA Employees (over $2,500).”
Once again I ask readers to read pages 9-11 for more shocking disclosures of the CRA and RMA.
As I have mentioned multiple times the importance of the WPB Internal Auditor Department, and Beverly Mahaso, Chief Internal Auditor, and her limited staff, who gave the City a straight forward and balanced report to help the city with it’s problem solving. If not for them we would not be aware on the millions of taxpayer dollars wasted, and/or missing. The good news is the City has not renewed the contract with RMA, and it is now being overseen by Christopher Roog, Executive Director of the CRA. Will the City do anything to re-coop money wasted by abuse? I doubt it. Let sleeping dogs lie.
The end!