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HomeMy WebLinkAbout04-26-2017 CC Minutes/CRAL -m Ly SEBASTLA�N HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL REGULAR MEETING & COMMUNITY REDEVELOPMENT AGENCY (CRA) MEETING MINUTES WEDNESDAY, APRIL 26, 2017 - 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor McPartlan called the regular City Council meeting to order at 6:00 p.m. 2. Pastor Todd Thomas of the Sebastian Christian Church gave the invocation. 3. The Pledge of Allegiance was recited. 4. Roll Call: Mayor Bob McPartlan Vice Mayor Andrea Coy Council Member Ed Dodd Council Member Jim Hill Council Member Linda Kinchen City Staff Present: City Manager Joe Griffin City Attorney Bob Ginsburg City Clerk Jeanette Williams Administrative Services Director Ken Killgore City Engineer Frank Watanabe Airport Director Scott Baker Community Development Manager Dorri Bosworth Director of Golf Greg Gardner Police Chief Michelle Morris Records Clerk Cathy Testa Community Development Coordinator Margarita Hernandez Asst. Administrative Services Director Cindy Watson Procurement Manager Randy Moyer AGENDA MODIFICATIONS — None PROCLAMATIONS, AWARDS, BRIEF ANNOUNCEMENTS Presentations of proclamations, certificates and awards, and brief timely announcements by Council and Staff. No public input or action under this heading. 17.073 A. Proclamation — Guardian Ad Litem Month — April 2017 H.L. "Vern" Melvin, 19th Judicial Circuit Director, Guardian ad Litem Program Mayor McPartlan introduced Mr. Melvin and read the proclamation. 17.074 B. Proclamation — National Volunteer Week — April 23-29, 2017 Mayor McPartlan read and presented the proclamation to Sebastian Community Police Volunteer Members. Regular City Council & CRA Meeting April 26, 2017 Page Two 17.075 C. Mr. Snow and members of the football team thanked the City's Parks and Recreation Department and Council for their assistance with the practice and games held at the football field. He presented a plaque to Community Development Coordinator Margarita Hernandez. Brief Announcements • 516117— Craft Club Show in Riverview Park— 10 am to 3 pm Mayor McPartlan announced the Craft Club show set for May 6'". Vice Mayor Coy reported the Natural Resources Board's Earth Day was phenomenal, thanked the Board and invited the public to mark their calendar for next year. 7. Recess City Council Meetinci and Convene as Community Redevelopment Agency A. Chairman McPartlan called the CRA meeting to order at 6:11 p.m. Members present included Chairman McPartlan, Vice Chairwoman Coy, Mr. Dodd, Mr. Hill and Ms. Kinchen. B. Approval of Minutes — March 22, 2017 CRA Meeting MOTION by Ms. Kinchen and Vice Chairwoman Coy to approve the March 22, 2017 CRA minutes. ROLL CALL: Vice Chairwoman Coy — Aye Mr. Dodd — Aye Mr. Hill —Aye Ms. Kinchen —Aye Chairman McPartlan —Aye Motion carried 5-0. The Community Development Manager explained that Waste Management developed a commercial waste recycling program but CRA businesses were hesitant to join because of the cost to enclose or enlarge recycling dumpsters as required by code. She said the City would like to keep the dumpsters enclosed and thought by offering grants to offset some of the cost the businesses might be more willing to join the program. She said page two of the application was revised to add a maximum award of $1,500. to help construct the enclosures. MOTION by Mr. Hill and SECOND by Mr. Dodd to approve the revised Facade, Sign, and Landscape Grant Application. Vice Chairwoman Coy asked if there was a time frame that could be extended for businesses to join the recycling program. The City Manager reported that Waste Management does have two businesses interested in joining and would get back to the board with the program's time frame. Regular City Council & CRA Meeting April 26, 2017 Page Three ROLL CALL: Mr. Dodd —Aye Mr. Hill —Aye Ms. Kinchen —Aye Chairman McPartlan —Aye Vice Chairwoman Coy - Aye Motion carried 5-0. D. Chairman McPartlan adjourned the CRA meeting at 6:16 p.m. 8. Adiourn Community Redevelopment Agency Meeting and Reconvene as City Council 9. CONSENT AGENDA All items on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of consent agenda items unless a member City Council so requests; in which event, the item will be removed and acted upon separately. If a member of the public wishes to provide input on a consent agenda item, he/she should request a Council Member to remove the item for discussion prior to start of the meeting or by raising his/her hand to be recognized. A. Approval of Minutes — March 22, 2017 Meeting 17.072 B. Approve Lease Agreement Between the Sebastian Municipal Airport and CzechSport Aircraft, Together with Cruiser Aircraft, Inc. for the Use of Hangar C and Authorize the City Manager to Execute Appropriate Documents (Transmittal, 3/22/17 Transmittal, Agreement) 17.076 C. Approve Purchase and Implementation of ADP Human Capital ManagementSoftware in the Amount of $6,100 and Authorize the City Manager to Execute Appropriate Documents (Transmittal, ADP Summary, Overview, Agreement) 17.077 D. Award Off -Site Mechanical and Electrical Repair Services Agreement to Vinnie's Family Auto Repair and Authorize the City Manager to Execute Appropriate Documents (Transmittal, Bid Tab, Page 1 of Services Agreement, Price Bid Sheet, Certifications & Declarations) (Full Contract Available in City Clerk's Office) 17.078 E. Award Agreement to McDine's Painting, Inc. in the Amount of $36,600 for the Preparation and Painting of the Historic Sebastian Elementary School and City Hall Administration Building and Authorize the City Manager to Execute Appropriate Documents (Transmittal, Bid Invitation, Bid Tab, Page 1 of Agreement, Certifications & Representations) (Full Contract Available in City Clerk's Office) 17.079 F. Approve Expenditure of Forfeiture Funds to Gang Resistance Education and Training (GREAT) Program in the Amount of $413.82 (Transmittal, Invoice, Letter, F.S.932.7055) 17.080 G. Approve Alcoholic Beverages for Salinas Event at Community Center on May 20, 2017, from 3:00 p.m. to 8:00 p.m. DOB Verified (Transmittal, Application, Receipt) 17.081 H. Approve Indian River Drive Closure for HALO Rescue 5K Run on September 16, 2017 from 6:00 a.m. to 11 a.m. (Transmittal, Route, Application, Receipt, Correspondence) 17.082 I. Approve 5`" Annual Sebastian Charter Junior High 51K Run at Sebastian Municipal Golf Course on May 13, 2017 from 6:30 a.m. to 11:30 a.m. (Transmittal, Application, Receipt, Route) Regular City Council & CRA Meeting April 26, 2017 Page Four Ms. Kinchen requested to pull item C and Mr. Hill requested to pull item I. MOTION by Ms. Coy and SECOND by Mayor McPartlan to approve items A, B, D, E, F, G, and H of the consent agenda. ROLL CALL: Mr. Hill - Aye Ms. Kinchen Mayor McPartlan — Aye Vice Mayor Coy — Aye Mr. Dodd - Aye Motion carried 5-0. Item C — ADP Human Capital Management Software The City Manager said it was his desire to go to a paperless payroll system with a check-in/ check-out procedure. The Procurement Manager said the automation will give managers the tools to better manage their hours. Ms. Kinchen asked if employees will check-in on smart phones. The Procurement Manager said that will be capable but the contract does not include hardware; employees will use a computer, kiosk or have their managers access their record. He also said he planned to go live in September/October and there wouldn't be a price increase until 2019. MOTION by Ms. Coy and SECOND by Mayor McPartlan to approve the purchase of ADP Human Capital Management software. ROLL CALL: Motion carried 5-0. Ms. Kinchen —Aye Vice Mayor Coy — Aye Mr. Hill - Aye Mayor McPartlan — Aye Mr. Dodd —Aye Item I- 5th Annual Sebastian Charter Junior High 5K Run Mr. Hill noted he has tried to get some of the 51K runs moved throughout Sebastian for many years and this Sebastian Charter Junior High's 51K Run will showcase the Golf Course on May 13, 2017 at 6:30 a.m. He invited the public out to join the win-win event since the businesses along the riverfront will be able to stay open. MOTION by Mr. Hill and SECOND by Vice Mayor Coy to approve the 5th Annual Sebastian Charter Junior High 5K Run at Sebastian Municipal Golf Course on May 13, 2017. ROLL CALL: Mayor McPartlan — Aye Vice Mayor Coy — Aye Mr. Dodd —Aye Mr. Hill - Aye Ms. Kinchen - Aye Motion carried 5-0. 10. COMMITTEE REPORTS & APPOINTMENTS City committee reports and Council Member regional committee reports. No public input or action except for City committee member nominations and appointments under this heading. 17.083 A. Brief Announcement of Openings on the Following Boards: Construction Board; Citizens Budget Review Advisory Board; Natural Resources Board; Police Officer Board of Trustees Pension Board; Planning & Zoning Commission Regular City Council & CRA Meeting April 26, 2017 Page Five The City Clerk announced the current boards that have openings and invited anyone interested to contact her. Vice Mayor Coy said she went to an Indian River Chamber of Commerce's Community Leaders Summit where guest speaker Bill Fruth gave the same advice for Indian River County, to have thousands of acres shovel -ready to move forward. Ms. Kinchen reported during her monitoring of the County Commission meetings, the Commission approved the CR512 paving project and to extend the water line assessment project through the entire Collier Creek and Harbor Point subdivisions. 11. PUBLIC HEARINGS 17.029 A. AN ORDINANCE OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, RELATING TO MEDICAL MARIJUANA TREATMENT CENTERS; AMENDING THE LAND DEVELOPMENT CODE ARTICLE XXII (LANGUAGE AND DEFINITIONS); AMENDING ARTICLE VI (CONDITIONAL USE CRITERIA); AMENDING ARTICLE V (ZONING DISTRICT REGULATIONS); PROVIDING FOR SEVERABILITY, CONFLICT, CODIFICATION, AND AN EFFECTIVE DATE. (PJ Ad 3/28/17 & 4/11/17) The City Attorney read the title to Ordinance No. 0-17-01 and Mayor McPartlan opened the public hearing at 6:29 p.m. MOTION by Mr. Hill and SECOND by Vice Mayor Coy to approve Ordinance No. 0-17-01. Joe DiBartolo asked why the marijuana won't be sold in drug stores as opposed to a clinic. Mr. Dodd responded that the federal government considers it a Schedule 1 drug which can't be sold in drug stores. Mr. Hill thanked the City Attorney for writing the ordinance. The City Manager cited the permissible locations listed on pages 137-139 of the agenda packet. Vice Mayor Coy noted Council would have to approve the location. Mayor McPartlan closed the public hearing at 6:33 p.m. ROLL CALL: Vice Mayor Coy — Aye Mr. Dodd — Aye Mr. Hill - Aye Ms. Kinchen - Aye Mayor McPartlan — Aye Motion carried 5-0. 12. UNFINISHED BUSINESS 17.031 A. 6:34 pm The City Manager gave a brief background of his effort to extend the lease. In 2015, he notified Mr. and Mrs. Fink that he would not take the current lease extension before Council and asked for another lease. He did not hear back from them and prepared an RFP in November 2016 which he presented to Council in January 2017. Regular City Council & CRA Meeting April 26, 2017 Page Six At that time Council instructed him to begin negotiations with Mr. and Mrs. Fink; there have been four negotiation sessions; he believed they are at an impasse; on April 17 he received notice that Mr. & Mrs. Fink would not accept the lease presented to them and they would be making a presentation to Council. The City Manager recommended sending a letter to Mr. & Mrs. Fink stating the current lease will terminate on November 20, 2017 and move immediately to the RFP process. MOTION by Mayor McPartlan and SECOND by Vice Mayor Coy to send a letter to the current tenant as outlined and approve the RFP process going forward. Warren Dill, Attorney, representing Mr. and Mrs. Fink and their corporation DTF, Inc. introduced himself and asked that Mr. Fink be allowed to make a presentation before Council. 6:47 pm MOTION by Mr. Hill and SECOND by Mr. Dodd to waive the speaking time limit for Mr. Fink for his presentation. The City Attorney said that would be appropriate. Mr. Dill distributed a statement dated April 26, 2017 from Mr. Fink. (See attached) Mr. Dodd clarified that Council is not negotiating the lease only the motion to send the letter and if Mr. Fink's comments relate to lease terms it would not be appropriate. He said if they are going to negotiate a lease there should be a motion to negotiate contents of a lease. Mr. Hill agreed that Council did not need to be involved in the lease but to listen and understand whether the tenant is willing to continue negotiating and determine if we are at an impasse and if we are, how to proceed. Mayor McPartlan stated the tenant doesn't agree with the City's appraisal at $20 a sq. ft. so there is a great "in between" in what the restaurant is worth per month. He said for the six months prior to January 2017, the City received less than $1,000 on six month's rent; the only way to establish fair market value is to put the operation out to bid. Mr. Hill said at this point they should not discuss the rent difference but whether there is an impasse and he would like to hear from the public, Mr. Dill, and the Finks. Dennis Fink thanked City Council for the opportunity to speak; noted the letter from a former City Manager stating they would have been awarded a 40 year lease if it was authorized and read his statement. (See attached) Mr. Fink's statement started to get into numbers and Mr. Hill called for a point of order to ask him if he is willing to negotiate further with the City. Mr. Fink said they definitely wanted to go forward. Mr. Hill said the City has received his latest proposal and asked if the City is willing to negotiate. Mr. Dodd asked Mr. Fink if he is willing to negotiate his lease concerns and the difference in rent. Mr. Fink said he thought he could get past the concerns to negotiate. Regular City Council & CRA Meeting April 26, 2017 Page Seven Mr. Hill said the difference is $20,000 a year and whether the parties are willing to budge is the question at hand. The City Manager said he negotiated by splitting the difference in the rent amounts down the middle, rounded down to their favor, eliminated the ad valorem tax, and did not include outside patio space. Ms. Kinchen asked if the RFP had a specific dollar amount or did he leave it up to the restaurateur to fill it in. The City Manager said the restaurateur could fill it in or put a minimum of 5% of sales. Vice Mayor Coy said they are paying $33,500 annually which includes the property tax. The City pays the utilities and does the maintenance on property which is included in the current lease. Mr. Fink said it has been a fair deal for the last 20 years. Mr. Fink said improvements they have made included a patio for outdoor seating, the canopy, tiled the dining floor and built partitions throughout the restaurant. Ms. Coy noted the City did not charge more rent since he can seat more people and the City recently put on a new roof and carpeting. Mr. Fink said they were willing to take over some improvements. Mr. Hill said the City Manager has indicated that he doesn't want to go any further and Council's decision is to decide if they should direct the City Manager to continue the negotiations. Mr. Dodd offered a compromise, noting there is an interest in replacing the existing lease to allow the Finks to continue to operate the facility but renegotiate some of the items. He asked the Mayor to pull his motion to table until first meeting in June, and direct both parties to re-enter negotiations and if still at impasse in June, direct the City Manager to notify them that the City won't renew lease and go out to RFP. Mayor McPartlan said he will not pull his motion and asked the City Manager if he had the sense that an agreement can be reached. The City Manager did not think an agreement could happen but if Council wanted to go forward, he would recuse himself and assign Administrative Services Director Ken Killgore to negotiate. The City Manager said citizens are involved, and as a government there is a higher standard of care needed; he has tried to submit a fair lease that puts the City in the position of a real landlord. Mayor McPartlan said the only way to get a true estimate is to go out to the competitive, open market and there are people that might want to bid. He said the remark that the City is kicking the Finks out is not true in any way, shape or form. The City has abided by the 20 year lease and his personal feeling is that the only way to get the fair market value is to give everybody the opportunity to bid on it, to include the current tenants. He didn't think any more meetings would change the minds of people that think the City isn't getting fair market value. Vice Mayor Coy said Council could give them another deal but noted this is a very litigious age and the City could be sued if it were perceived as another deal. She did not think they could go further. 7 Regular City Council & CRA Meeting April 26, 2017 Page Eight 7:24 pm Mr. Dill said they are not on an impasse on the lease at all, the parties never got past the rent. He said Mr. Fink has been complying with the lease where he is not required to pay utilities or facilities maintenance. The lease will be a historical document and there will be some changes in the renewal that Council and the Finks feel are more equitable. 7:36 pm 7:41 pm He said Mr. & Mrs. Fink are still paying for the substantial investment they made; additionally they spent $75,000+ on furniture, desks, chairs, bar, kitchen equipment; and noted per the previous City Manager's letter, there would have been a 40 year lease. He said there is a legal contract stating, "Concessionaire shall have the option to renew the agreement for two additional ten year terms provided it's within the sole discretion of the City, provided the City approves renewal of the lease. The Finks have the option to renew and Council's right to approve the renewal." Mayor McPartlan asked Mr. Dill if he represented the Finks in 1997 and if he agreed with the lease at that time. Mr. Dill said he did and it was the best lease they could receive. Mayor McPartlan said the City has fulfilled our portion and now if the tenant requests it, the City can consider the renewals. Vice Mayor Coy added that Council has directed the City Manager to re -negotiate not renew the old lease. Mr. Dill said the lease continues on which does not imply terminate. He said in law, the "right to renew" and "right to approve" must be read in parametric so they both have meaning. The Finks are prepared to make amendments to the current lease, including increased rent and utilities; the only thing to determine is the rent amount which is Council's responsibility. He is confident that once the rent is set, he was confident the rest of the items could be negotiated. He said the $16.00 a sq. ft. was not reasonable rent. Mr. Dodd called the question. He said there is an obligation to notify the tenant of termination. Mayor McPartlan said the amount needs to be set by going out for bid. Mr. Dill suggested the City retain a golf course consultant that understands restaurants leases when they are part of a municipal golf course to obtain the rent amount. Public Input John Ferraro said the golf course is always empty but he always has a good time at the Eagles Nest and a new restauranteur will lose money during the summer months. Fred Richard said he and his friends won't eat at the Eagles Nest, the quality isn't there but they do enjoy the golf course. Greg Hepler, Sebastian, owner of the Pelican Diner, said he heard the restaurant was up for lease and thought there might be a business opportunity; in listening to the numbers, the rent is not far out of reach. He said the liquor license is an unlimited potential of money; there is no excuse not to make money. He said taking into consideration the number of golfers, the available parking, and some advertising, there is tons of potential and he would like to see it go out to bid. Sherry Shook said she plays golf and it appears there is an impasse. She is would like it to go out to bid. Gail Gangloff said she plays golf, it seems clear to her that this should be put out to bid Regular City Council & CRA Meeting April 26, 2017 Page Nine Diane Ranzinski, Sebastian, said she too plays and it is good business practice to go out to bid. Tracy Way, Sebastian, said the lease was given with an option to renew and the option is being pulled away only to get more money; the meals are reasonably priced and this will push the prices up. Comparing the restaurant to other golf course restaurants, negotiating the new lease is the right thing to do. Robert Crady said the restaurant needs a lot of improvement, he doesn't even go for beer, the service and signature prime rib was horrible. Joe DiBartolo said none of the fundraisers will happen again if Teresa Fink isn't given a fair shot. Ben Hocker said he has leased buildings and when tenants leave, the renovations become part of the property; the lease is over and should be put out for everyone to bid. What is lost is the cost of doing business. Ed Aherns, 201 Poinciana Street, plays golf twice week and has never had a bad meal. The Finks always fill tournament slots; they are a great asset; and should give them some leeway. Damien Gilliams, real estate broker, restaurateur, broker of liquor licenses, said Council has a fiduciary responsibility to the taxpayers with this City property; the lease has run its course and needs to go out to bid. Triple net leases are common where the maintenance, tax, and insurance are paid by the tenant. Leanne Harkins, Sebastian, said Mrs. Fink has right to renew especially since she took a 30 year loan for a 20 year lease; the current lease should be renegotiated. 8:00 pm Vice Mayor Coy asked the City Attorney if the City is in violation by not automatically renewing. The City Attorney said no, when the City reaches 20 years, the tenants have the right to renew. If they do, it's up to Council if they want to go forward. Vice Mayor Coy stated the City is not unfairly kicking the tenant out; if the City was violating the lease Mr. Dill would be coming after the City. Carl Shook said it is a poorly run restaurant and competition is the best way to solve the problem; it should be put up to bid. Mr. Hill said he didn't believe they were at an impasse; said the contract was signed with the assumption of a renewal; the Finks are willing to negotiate, not just renew, and the issue is whether Council is willing to continue. He said it would be a good faith gesture to try to renegotiate since the Finks are willing to increase the numbers. He said he was not at an impasse. Mr. Dodd asked if the City has to notify the tenant of termination to do the RFP. The City Attorney advised he didn't view it as a termination; the lease term is approaching and the City is deciding what to do about that. Regular City Council & CRA Meeting April 26, 2017 Page Ten Mr. Dodd clarified that the motion stated the City Manager will send a letter to DTF, Inc. advising the lease would be up and then go out for RFP. He asked if the letter was required. The City Attorney said they should receive a letter that the City is not going to go forward with renewal. Mr. Dodd asked if the City could use the RFP route without the letter to establish fair market value; then the City could give an offer and if they don't accept that than the City terminates. The City Attorney said that causes issues with the RFP being a fair document and the City analyzing the responses; in his view the RFP shouldn't be used as a negotiation tool. ROLL CALL: Mr. Dodd —Aye Mr. Hill - Nay Ms. Kinchen — Aye Mayor McPartlan — Aye Vice Mayor Coy — Aye Motion carried 4-1. Mayor McPartlan called for a recess at 8:11 p.m. Upon return at 8:19 p.m., all Council Members were present. 17.030 B. Office) The City Manager said this was the low bid and the City Engineer reported the permitting is going along very well. In addition to the contract, the City Manager requested approval from Council to demolish what is left of the Boudrot pier pilings which was included in the bid. MOTION by Mr. Hill and SECOND by Ms. Kinchen to award construction services agreement for reconstruction of the piers and docks as well as authorize the City Manager to execute the appropriate documents. Damien Gilliams suggested having an engineer review the plans to make sure the pilings are set for a category 4 or 5 storm so they won't have to be replaced again. Ben Hocker, Sebastian, asked if there was schedule for replacement; is there a hurricane standard; and what is the projected dollar amount going back to the emergency fund. The City Engineer said the project must be done within 18 months of the hurricane; the docks are required to be 5 feet above the high mean water table; and FEMA will reimburse the City $925,000 and the state's reimbursement will be $125,000. James Cahn asked when the project will start. The City Manager said a "notice to proceed" meeting would happen next week and the contracted time is 120 days. Mr. Cahn asked for police patrol during the upcoming holiday weekend at the Yacht Club ramp so everyone remains safe. He noted the town has doubled in size but not the amount of boat ramps and asked to find a way to make another ramp. 10 Regular City Council & CRA Meeting April 26, 2017 Page Eleven ROLL CALL: Motion carried 5-0. Ms. Kinchen - Aye Vice Mayor Coy — Aye Mr. Hill - Aye Mayor McPartlan — Aye Mr. Dodd —Aye It was the consensus of Council to include the demolition of Boudrot docks with this action. 17.084 C. Annual Review of "Southern" Seawalls (Transmittal. 1/14/15 Transmittal, 2/11/15 Transmittal & Minutes. 6/13/15 Transmittal, 8/26/15 Transmittal, 4/13/16 Transmittal & Minutes. Presentation) The City Manager gave a brief history of the City's effort to assess southern seawall annually. The City Engineer highlighted the assessment completed by Hoyle Tanner and Associates, Inc. in 2015, as well as the seawall's current condition through his PowerPoint provided the agenda packet. He said if a private property seawall fails, the emergency plan is to bury the failing wall and charge the property owner. Mr. Dodd suggested that Council should approve the "bury and sod approach" and direct the City Manager to have an engineering specification developed that can be used for permitting purposes that is preapproved by the SJRWMD and DEP so the process is ready for a catastrophic event. Mr. Hill suggested getting approval for the entire process. The City Engineer said when the City is doing an overall project the City can repair without a permit to maintain the water system. Mr. Dodd said he was concerned that Council has been informal, and when it does need to happen, the City could get caught in a liability issue. MOTION Mr. Dodd and SECOND by Mr. Hill that Council approve the "bury and sod approach" for repairing individual bulkhead walls with the failure determined by the City Manager; and, direct the City Manager to have engineering specifications developed and submitted to state and federal agencies for approval. The City Manager noted the City can act in emergencies without a permit. He suggested they should get approved specifications. Ms. Kinchen said she would like to see that the cost for private property repair is charged back to property owners. Paul Amos, Attorney with the Law Firm of Rossway, Swan, Tierney, Barry, Lacey & Oliver, representing Mr. Blakemore Smith and the properties at 243 & 237 Joy Haven Drive introduced himself and distributed aerial photographs. (See attached) He said the canal is being used as a retention system with two outfalls into the Sebastian River (page two). He pointed out that during a 50 or 100 year storm, water will sheet flow from the rooftops, driveways, porches, pool decks photographed on page two into the retention system and become a conveyance system providing for high velocity erosion scour. He said as an operator of the conveyance system, there is a responsibility for the system which is not prepared to convey the high velocity water. He said while the City might not pay for the repair, it would be called inverse condemnation. 11 Regular City Council & CRA Meeting April 26, 2017 Page Twelve Mr. Amos also said the bulkheads were placed in the 1950's prior to the development reaching the extent it has, the system is holding a load they were never designed for. He asked Council to consider canal armoring instead of burying; his client is concerned with the erosive effect as the heavy weight of drenched soil will travel and destabilize his backyard. Mr. Hill called for a point of order noting Mr. Amos should receive Council approval to continue past the speaking time limit. Mr. Amos wrapped up by saying he wanted to bring to Council's attention the operation of the system. Vice Mayor Coy said she is confident in the system and if her property eroded, it would be an act of God. Mr. Amos said inverse condemnation might see it differently. Damien Gilliams said the precedence been set, the north side of the highlands was done and asked how Council could do one side of CR512 and not the other; said the City could be liable; and suggested workshopping the seawall repair. ROLL CALL: Mayor McPartlan — Aye Vice Mayor Coy — Aye Mr. Dodd —Aye Mr. Hill - Aye Ms. Kinchen - Aye Motion carried 5-0. MOTION by Mayor McPartlan and SECOND by Vice Mayor Coy to have property owners pay for the emergency repair of seawalls on their private property. ROLL CALL: Motion carried 4-1. Vice Mayor Coy — Aye Mr. Hill —Aye Mayor McPartlan - Aye Mr. Dodd — Nay Ms. Kinchen —Aye Mayor McPartlan asked the City Attorney for his opinion that, if a property owner believes they have a problem, does not repair it and the wall falls in, then chooses to come after the City, would the City be liable. The City Attorney said from what Council heard in prior discussions, the building of improvements puts additional pressure on the wall, in addition to the general idea that the City would be making improvements to private property, there are private property owners making things worse so the City would not be liable. 13. PUBLIC INPUT - None 14. NEW BUSINESS 17.069 A. First Reading Ordinance No. 0-17-02 — Alcoholic Beverages in Riverview Park — Set Public Hearing for May 24, 2017 (Transmittal. 0-17-02) 12 Regular City Council & CRA Meeting April 26, 2017 Page Thirteen AN ORDINANCE OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, RELATING TO PUBLIC PARK RULES AND REGULATIONS, LIMITING THE USE OF ALCOHOL TO CITY SPONSORED EVENTS AMENDING CODE SECTION 74-4 (a) 7; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read the title of Ordinance No. 0-17-02. MOTION by Ms. Kinchen and SECOND by Mr. Hill to pass Ordinance No. 0-17-02 on first reading. ROLL CALL: Motion carried 5-0. Mr. Dodd — Aye Ms. Kinchen — Aye Vice Mayor Coy — Aye Mr. Hill - Aye Mayor McPartlan — Aye 17.085 B. Award Police Evidence Building Construction Contract to LH Tanner Construction in the Amount of $345.281.46 and Authorize the City Manager to Execute Appropriate Documents (Transmittal, Bid Tab, Plans, Page 1 of Agreement. Certifications & Representations) (Full Contract Available in City Clerk's Office) The City Manager recommended approval. MOTION by Mr. Hill and SECOND by Mr. Dodd to move staff recommendation and authorize the additional funding of $79,007.46. ROLL CALL: Motion carried 5-0. 17.086 C. Mr. Hill -Aye Mayor McPartlan — Aye Mr. Dodd — Aye Ms. Kinchen—Aye Vice Mayor Coy — Aye The City Manager recommended approval. MOTION by Vice Mayor Coy and SECOND by Ms. Kinchen to approve the construction contract for the columbarium. ROLL CALL: Motion carried 5-0. Ms. Kinchen —Aye Vice Mayor Coy — Aye Mr. Hill - Aye 15. CITY ATTORNEY MATTERS Mayor McPartlan — Aye Mr. Dodd — Aye The City Attorney thanked each of them for taking his recent phone calls. 13 Regular City Council & CRA Meeting April 26, 2017 Page Fourteen 16. CITY MANAGER MATTERS The City Manager announced the Children of Adult Alcoholics made a donation to City for the monthly use of the old Council Chambers for their meetings. 17. CITY CLERK MATTERS - None 18. CITY COUNCIL MATTERS A. Council Member Kinchen Ms. Kinchen thanked staff for stretching the asphalt on Easy Street all the way down to Fleming Street. B. Mayor McPartlan Mayor McPartlan said staff did a tremendous job assisting with Earth Day and CASTLE's Memory Field. C. Vice Mayor Cov Vice Mayor Coy remarked it has been one year since the City decided not to drive in Riverview Park and its working better and better. She suggested asking the Parks and Recreation Department to consider the planting of some backup trees in the park. D. Council Member Dodd - None E. Council Member Hill Mr. Hill thanked the MPO, state and Mayor of Vero Beach for going against staff recommendation to use the CR510 and CR512 preservation land for the North County Hub; the new location will be great. 19. Being no further business, Mayor McPartlan adjourned the regular City Council meeting at 9:18 P.M. Approved at the May 10, 2017 Re ular City Council meeting. Mayor Bob McPartlan ATTEST: e nette Williams, MMC — City Clerk 14 MEETING OUTLINE APRIL 26, 2017 I want to thank the City Council for allowing us to speak and present our position. In 1990 we won the bid to operate the Food & Beverage Concession for the SMGC. It should be noted that the first time it went out to bid, no one responded. Right from the beginning we made improvements and expanded the bar and kitchen area. We added equipment, and even added a private phone system on the 9h Tee Box so the golfers could call in food orders which would speed up play. We paid for the cable, digging of the trench line, equipment and hook-up. The present Lease is an extension of that bid. It was signed in 1997, which included a major expansion of the facilities, financed by us, and the work was completed in the fall of 1998. After the expansion and throughout the years we continued to make improvements. We added a 20' X 45' patio and planted surrounding shrubs. We've remodeled a number of times, including an extensive one 3 or four years ago. We want to renew this Lease, as is our option with your approval, and amend our present Lease as necessary. We have a letter from the former City Manager regarding the intent of the renewal options. (SEE Thomas Frame Letter) Comparison to other restaurants We should not be compared to other restaurants but rather, we should be compared to other Golf Course Food & Beverage Operations. This is what the RFP was for in the first place. Closings or loss of play due to weather conditions are prevalent in this industry. We are required to be open daily and at specific times when the golf course is open whether it is profitable or not. On many Mondays for instance, we have sales as low as $200 to $300 for the day. Even the booking of weddings and banquets are somewhat restrictive, subject to the golf course operation. We accept and understand this though, but it needs to be reflected in the rental cost. As I pointed out, the Lease proposed by the City Manager amplifies the difference, and the rental factor is just unworkable. (SEE Lease Concerns) We have offered a rent that is considerably higher than Fairwinds or Sandridge Golf Courses, but we believe that by working together with the SMGC, we could succeed. That is one of the reasons I included a rent based on the percentage of sales. Together we could promote golf tournaments, hold special in-house tournaments, promote leagues, offer Golf & Grub Specials, Golfers Combo Specials or even a Pilots Special since Uber is now available at the Airport. This would be in addition to our daily and weekly specials that we advertise for all. 1 believe you need to look at us as a service, just as a Golf Club Maintenance or a Golf Club Management company provides a service. Payments are different, but it's the same principal. The Concession was originally put out for bid because the golf course was losing money in the food and beverage operation. It has never lost money since we took over, and in addition it received an extremely valuable asset (the 2200 sq ft clubhouse expansion) that we financed. (See DTF CONCESSION LEASE REVENUES & EXPENSE SHEET) The rent should be fair for both sides, but it must be stressed that this rent should allow for competitive food and beverage pricing with other golf courses. Revenue By DTF INC City Manager's DTF INC Proposal Proposal 57,600 * 36,000 22.400 utilites 22.400 utilities 80,000 58,400 *includes property tax Our Present Payments 28,400 + 5,100 (property tax) utilities included 33,500 The City Manager wants us to pay $46,500 more per year. We have proposed paying $24,900 more per year. This could be higher or lower depending whether or not the 5% of Sales was used. Income would be approximately $30,000 to the City, with most expenses paid by us. We also have agreed to $35K in Improvements If you look at Fairwinds, their revenue is approximately $10K per year minus expenses (water, sewer, electric, building maintenance) and the Concessionaire does not pay property taxes. Their income to the Golf course would be closer to a breakeven point with that payment. Sandridge would be somewhat higher, but not near as high as us. Yearly occupancy costs comparisons between Concessionaires are as follows: Sandridge: $20K a year Fairwinds: $30K a year City Manager SMGC Proposal $80K a year We would be paying $60K more than Sandridge (with two courses) and $70K more than Fairwinds. Even if our proposal is accepted we will be paying more than $38K and $48K respectively. SMGC needs to be competitive with these and other golf courses, and 1 believe we are pushing the limits. At the City Managers rental price and lease requirements we do not feel it possible to succeed, and to be honest, I am concerned that what we proposed may not allow us to be successful as well unless we work together in promoting and expanding our revenues. • We offer three options for rent: 1. Instead of a base rent plus a percentage of alcohol sales, we would pay a percentage of all food and beverage sales, including vending machines. Because of highly seasonal sales we would offer a base rent of $30K per year and 5% of sales, whichever is greater, and the property tax would be paid by the City. This gives the City the ability to capitalize not only on our investment, but their investment as well. This was in the RFP that the City Manager put out in January, but now says the City does not want to base rent on speculation. If that's now the case, the two other options are: 2. A total rent of $36K per year which includes property taxes paid by the City, or 3. $30K per year and we pay property taxes • We will guarantee $35K in Improvements to be made in the first three years • We will pay all electric for the concession area of the clubhouse. We will pay for 75% of the water once it is separated from the cart barn and a direct line is run to the clubhouse. RFP I would like to comment on the RFP. I noted earlier that no one responded to the first SMGC bid in 1990. And it should be noted that only one company bid on the Fairwinds RFP in 2013, which is basically the same one used for the Sebastian RFP put out in January of this year. It should also be pointed out, that the proposed Lease by the City Manager came from Fairwinds Golf Course. According to Fairwinds, any future RFP and Lease will be changed. I do believe though, that if you do reject our proposal and put out an RFP, it should be based on the minimum rent amount of $57,600 and the Lease agreement that the City Manager presented to us as the City s final offer. And what happens if no one bids? I believe this to be a high possibility since they will need to furnish tables and chairs, equip the restaurant, as well as make other improvements, with only a ten year lease and a high rental dollar amount in relation to the operation. On a related issue, the company that won the Fairwinds bid is the same company that runs the Concession at Sandridge, so if they do bid and win, what happens to the competition between the courses? And if someone else bids and does pay that higher rent, what will the pricing at SMGC be, and will it be competitive with other courses? Will they succeed? It is important to note that the failure or turnover rate of Golf Course Food & Beverage operations are great. Just look at the history of the courses in the tri -county area. We seem to be stuck on the Appraisal figures comparing us to other restaurants rather than comparing us to other golf course food & beverage operations. I understand we differ, but the decision will have a major impact on all of us. We have agreed on most items, but the rent of $57,600 per year proposed by the City Manager is just not workable, as is the Lease that we were given as the City's last offer. I assume that if our Lease is not renewed, the Lease that the City Manger presented to us will be part of his RFP with a rent minimum of $57,600. 1 really have my doubts that anyone with experience in this business would sign that Lease. After 26 years operating at the SMGC, and the previous years spent as a manager and District Manager for a restaurant group that included full service and fast food restaurants, I believe my wife and I have been and will be successful. The hard work, hours spent and dedication by us is real. I hope you decide to stay with us, rather than take a chance on the unknown. I would be happy to answer any questions. Lease Concerns The following are a few of the items of concern in the City Manager's new Lease: Section 2.01 Sites: The Concession Lease is to include the Restaurant/Bar, Patio & Storage Outbuilding .... but "The LESSOR may add or delete, by addendum to the agreement, additional sites at its sole discretion." "Nothing contained in the Concession Lease shall preclude the LESSOR from charging fees for, including but not limited to, parking, admission, and specials events." Section 3.05 Reports & Records: Subsections B. & F. require a POS (point-of-sale system) & must be approved by the City. What do we do with our present system if not accepted, or if we want to change systems because of technology advancements? Subsections C & D require submitting a percentage of sales record, but why ask for sales if the lease is not based on a percent of sales? We offered to pay a percentage of sales saying that we felt it was the fairest way to go, but the City Manager said he was not interested in speculation. As a side note, why was it put in the RFP only 2 months ago? Section 4.01 Advertisement: All advertising, on and off site, must be approved by the Director of Golf and require approval by the Sebastian Community Development Department. Extremely unworkable even for our food & beverage operation, and I am sure, no landlord would require that of any other restaurant tenant. Sections 4.02 & 4.03: 4.02 states The LESSEE agrees that it will obtain prior written approval from the LESSOR for originally approved specifications, signage, and graphics and also for equipment, or fixtures LESSEE plans to install requiring any structural modifications. But then, 4.03 states the LESSOR reserves the right to require the LESSEE to change any item it previously approved. You get permission to do something, and then you may have to remove it? Section 4.05 Hours of Operation: The Hours of operation are one-half (1/2) hour before the first SMGC Tee Time until the close of the SMGC Pro Shop seven (7) days a week. Any other hours outside of normal hours of operation for the SMGC will be approved by the Director of Golf. This essentially means, for instance, that the Director of Golf needs to approve our serving of Dinners. The LESSOR may require a change in days and hours of operation if such a change is desirable to provide the best service to the public. I understand this, and it does make it clear that we are a service to the Golf course operation. Again, any other restaurant tenant would not have these restrictions or obligations. Section 16.01 Termination by the LESSOR: The LESSOR shall have the right to terminate the Concession Lease without cause on ninety (90) days prior written notice. Again this is not normal in restaurant tenant leases, or any lease for that matter, unless further stipulations are in place. Other areas are confusing and questionable as well. The important issue here is that the City Manager is presenting a Lease based on Fairwinds Golf Course, while using a comparative restaurant approach on US 1, Riverfront, and even Beachside properties. Your can't compare apples to pears. DTF CONCESSION LEASE REVENUES & EXPENSES Revenues (12 months 03/01/16 — 02/01/17) Base Rent $17,340 Alcohol % Rent 11,047 Total $28,387 Expenses Bldg Maint $ 2,064 (yearly amount based on 7 month average provided by the City Manager) Electric 14,667 " Sub Total $16,731 $7,619 is the estimated total water bill for the entire golf course, including the, Maintenance Building that houses the golf course maintenance operation, the Cart Barn which wash the golf carts daily and has an ice machine, the four Golf Course bathrooms, Clubhouse bathrooms, and food operation. It should be noted that there were and continue to be water line breaks that cause business interruptions and loss of water. According to the City Manager a direct line to the Clubhouse will be put in. Water $3,500 (estimated yearly cost) Total Expenses $20,231 We have contributed $8,156 in annual income after expenses, plus we have constructed a 2200 sq foot addition to the clubhouse, vastly improving the amenities at SMGC. The expansion, equipment and furnishings were at no cost to the City. We have also added a 20' X 45' patio a few years after the expansion. Our figures are a little different than the City Managers, but it is for a full year, and it does make a difference. Considering what we put in and the risk we took, we are certainly in line with other Golf Course Food & Beverage Operations, as well as other City leases. We will continue to make all repairs to the restaurant equipment, fixtures and furnishings and have agreed to pay utilities, a fair rent, and make a minimum of at least $35K in improvements. PROVIDED BY DTF INC 4-24-17 Thomas W. Frame 171 Pelican Island Place, Sebastian, F132958 April 22, 2017 The Honorable Bob McPartland, Mayor City of Sebastian Council Members 1225 Main Street Sebastian, Florida 32958 Dear Mayor and Council Members: In 1997, Dennis Fink, president of DTF, Inc., approached the City of Sebastian regarding the potential of expanding the size of the kitchen and dining room of the Eagle's Nest Restaurant located at the Sebastian Municipal Golf Course. At that time, I was employed by the City Council as the City Manager and was authorized to proceed with negotiating a proposed revised concession lease that could be reviewed by the Council for its consideration. The restaurant was limited in size and consisted of 1,200 square feet The 2,200 square feet expansion, as proposed by DTF, would increase the size to 3,400 square feet, with construction costs to be borne solely by DTF through private financing. Because of the cost of the expansion, DTF had originally requested an amended lease for a period of 40 years. However, due to a restriction on airport leases, an agreement or lease was limited to a period of 20 years. Given the size of the undertaking and the potential financial burden by Dennis and Teresa Fink on behalf of their corporation (DTF), as well as the benefit to the Golf Course and the City, it was agreed that, in addition to the 20 year lease term, the City would provide an option (Section 4. Term) that would allow the concessionaire to request two additional 10 -year terms. While approval of such requests would be at the sole discretion of the City, it was anticipated that subject to revisiting items that may be in need of revisions, the two (2) 10 -year extensions of the Concession Lease would be granted by the City because the City would have initially granted a 40 year lease if it had been possible_ This arrangement provided the opportunity for up to 40 years use of the facility by DTF, and the Council retained the authority to review and act on a properly submitted request for renewal of the existing Concession Lease. Very truly yours, 0 s Thomas W. Frame cc: Dennis and Theresa Fink 61, 'Pz- Brevard Rugby Club P.O. Box 60431 Rugby Club Palm Bay, FL 32906 April 20, 2017 To Whom It May Concern: I am writing this letter in support of Theresa Fink and everyone else at the Eagles Nest Restaurant at the Sebastian Golf Course. Although based in Brevard County, we have been holding our Spring Golf Tournament at the Sebastian Golf Course since 1989 and just had our very successful 271' annual event there on April 15l During those 27 years, Theresa and the staff of the Eagles Nest have been a constant that we have come to depend on. We typically have a minimum of 128 players — and have had as many as 150 players - with additional sponsors and volunteers attending the awards luncheon afterward. All of the players, sponsors and volunteers repeatedly compliment the food and service at Eagles Nest. We used to have a fall tournament at other golf courses, and I continually get calls about moving our spring tournament back to Brevard county, but I resist because but none of them have had food or beverage services that can compare to Eagles Nest — in quality, affordability or friendliness of the staff. And from an organizational standpoint, Theresa is by far the easiest, and most understanding of our needs, of any food vendor that I have worked with. Some of the players in our tournaments come from out of the area and bring their families to spend the weekend in a local hotel so they can enjoy the beautiful Sebastian waterfront. And it is a tournament tradition for many of the players to congregate at Captain Hiram's after the awards ceremony and raffle. So, in closing just let me say that in addition to having a beautiful golf course, run by a top-notch professional in Greg Gardner, you also have a jewel of a restaurant in the Eagles Nest, managed by a wonderful person, Theresa Fink, and staffed by some of the friendliest people I've ever come across. The combination of these two things are why we have been holding one of the largest tournaments held yearly at Sebastian Golf Course, since 1990, and hope to continue doing so for as long as possible. Sincerely, vm Corkey Newman President and Tournament Director Brevard Rugby Club 321-626-3357 From: Linda Swackhamer <gramswack@gmail.com> Date: Mon, Apr 24, 2017 at 3:31 PM Subject. Eagles Nest Restaurant To: council@cityofsebastian.org Dear City of Sebastian Council Members, I am writing on behalf of contract renewal for the Eagles Nest Restaurant. It is my understanding that this subject will be discussed at your meeting scheduled for Wednesday, April 26, 2017. Unfortunately I will be unable to attend the meeting but sincerely hope my comments will be heard at that time. The Eagles Nest Restaurant is and has been a highly successful business for the past 26 years and it is my hope that council will find it in the city's best interest to renew their contract Not only does this business cater to the needs and appetites of the people of Sebastian but it also aids in the economic growth of the community by employing local residents. As a Volunteer Event Organizer for the St Baldrick s Foundation I can attest to the good deeds Theresa and Dennis Fink promote through their workings with our organization. In two short years their hard work has succeeded in garnering more than $16,000 in donations to St Baldrick's to be used for lifesaving childhood cancer research. The St. Baldnck's Foundation is the number one private funder of childhood cancer research awarding millions to promising new research projects worldwide. The generosity of Sebastian residents is felt worldwide through the hard work of the Finks and St Baldrick's. Organizing and implementing the Rays of Hope golf tournament the past two years has not been an easy task and they have done an admirable job thus showing the Sebastian community spirit of helping thy neighbor. The loss of the Finks at Eagles Nest would be a great loss to the community! Sincerely, Linda M. 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