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Palatka CRA, city staff discuss draft interlocal agreement; board seeks clearer cost methodology
Summary
Staff presented a draft interlocal agreement to govern coordination and payment for city services to the CRA; the board asked for clearer language limiting CRA responsibilities, an indirect-cost study and a consistent financial-report template ahead of an Aug. 19 budget discussion.
Staff told the Palatka Community Redevelopment Agency on July 20 that a draft city-CRA interlocal agreement is in the packet and intended to formalize administrative coordination, financial responsibilities and the CRA's relationships with the city and Putnam County.
"This is a draft for discussion purposes," staff said, describing the agreement as a comprehensive framework that should be policy-focused and include a mechanism to revise cost sections. Staff explained the recommended reimbursement mechanism is a percentage set annually rather than itemizing billable hours for each department.
The city manager walked the board through typical interlocal structure and emphasized the need for an indirect-cost study to estimate time and effort across departments. "You estimate that, over a period of time based on economic elements," the city manager said, describing the usual work that produces an indirect-cost rate.
Board members pressed for clearer limits so the CRA remains focused on redevelopment rather than routine maintenance. A commissioner noted that draft language (section 3.6) could be read to transfer general downtown maintenance to the CRA, asking staff to narrow wording and confirm what the CRA is responsible for. Staff said refinements and a cost-study-based template will be supplied, and that estimates will be provided for the Aug. 19 budget meeting.
Members also requested an eight-year financial breakdown for the St. John's Avenue streetscape project; staff said compiling older records may require research because not all documentation is digitized. The city manager and staff agreed to follow up with the requesting commissioner privately to refine the scope before producing the full packet.
The draft interlocal and the requested indirect-cost methodology will return to the board for further review.
