HomeMy WebLinkAbout04241991 City of Sebastian
POST OFFICE BOX 780127 o SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 [] FAX (407) 589-5570
91.116
AGENDA
SEBASTIAN CITY COUNCIL
REGULAR MEETING
WEDNESDAY, APRIL 24, 1991 - 7:00 P.M.
CITY COUNCIL CHAMBERS
1225 MAIN STREET, SEBASTIAN, FLORIDA
ALL PROPOSED ORDINANCES AND INFORMATION ON ITEMS
BELOW MAY BE INSPECTED IN THE OFFICE OF THE CITY CLERK,
CITY HALL, 1225 MAIN STREET, SEBASTIAN, FLORIDA.
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. INVOCATION - Reverend Ron Barber, Community Baptist
Church, Roseland
4. ROLL CALL
5. AGENDA MODIFICATIONS (ADDITIONS AND/OR DELETIONS)
6. PROCLAMATIONS AND/OR ANNOUNCEMENTS
A. Proclamation - Municipal Clerks Week - 5/5/91 -
5/]_1/91
7. PRESENTATIONS - None
90.211
91.066
91.015
8. PUBLIC HEARING, FINAL ACTION
ORDINANCE NO. O-91-03 - Mandatory Numbering of
Improved Properties
AN ORDINANCE OF THE CITY OF SEBASTIAN, INDIAN RIVER
COUNTY, FLORIDA, PERTAINING TO THE DISPLAY OF BUILDING
NUMBERS; AMENDING ARTICLE V OF THE LAND DEVELOPMENT CODE
TO ADD NEW SECTION 20A-5.46 PERTAINING TO THE DIMENSIONS
AND LOCATION OF BUILDING NUMBERS TO BE DISPLAYED;
PROVIDING FOR REPEAL OF ORDINANCES OR PARTS OF ORDINANCES
IN CONFLICT HEREWITH; PROVIDING FOR INCLUSION IN THE LAND
DEVELOPMENT CODE OF THE CITY OF SEBASTIAN; PROVIDING FOR
SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. (lst
Reading 3/27/91, Advertised 4/10/91, PH 4/24/91)
ORDINANCE NO. O-91-10 - Columbus Club
Comprehensive Land Use Plan Amendment - 2.65
Acres
1ST PUBLIC HEARING AND TRANSMITTAL TO DEPARTMENT OF
COMMUNITY AFFAIRS - PURSUANT TO F.S. 163.3184
(15)(b)1. "..THE INTENTION TO HOLD AND ADVERTISE A
SECOND PUBLIC HEARING SHALL BE ANNOUNCED AT THE FIRST
PUBLIC HEARING."
AN ORDINANCE OF THE CITY OF SEBASTIAN, INDIAN RIVER
COUNTY, FLORIDA, PERTAINING TO A CHANGE IN THE
COMPREHENSIVE LAND USE PLAN; AMENDING THE
COMPREHENSIVE LAND USE PLAN MAP FROM INDIAN RIVER
COUNTY MD-1 (MEDIUM DENSITY) DISTRICT TO CITY OF
SEBASTIAN INS (INSTITUTIONAL) DISTRICT FOR LAND
SITUATED IN THE NORTH CENTRAL AREA OF THE CITY,
APPROXIMATELY 2.65 ACRES MORE OR LESS, LOCATED ON
GIBSON STREET; PROVIDING FOR A COPY OF THE
DESIGNATION CHANGE TO THE COMPREHENSIVE LAND USE PLAN
MAP TO BE FORWARDED TO THE FLORIDA DEPARTMENT OF
COMMUNITY AFFAIRS; PROVIDING FOR REPEAL OF ORDINANCES
OR PARTS OF ORDINANCES IN CONFLICT HEREWITH;
PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN
EFFECTIVE DATE. (lst Reading 3/27/91, Advertised
4/15/91, 1st PH 4/24/91)
Collier Place PUD Conceptual Plan Termination -
Pursuant to Section 20A-4.9.E.3.(i) (Staff
Recommendation dated 4/18/91)
City of Sebastian
POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 [] FAX (407) 589-5570
MINUTES
SEBASTIAN CITY COUNCIL
REGULAR MEETING
WEDNESDAY, APRIL 24, 1991 - 7:00 P.M.
CITY COUNCIL CHAMBERS
1225 MAIN STREET, SEBASTIAN, FLORIDA
ALL PROPOSED ORDINANCES AND INFORMATION ON ITEMS
BELOW MAY BE INSPECTED IN THE OFFICE OF THE CITY CLERK,
CITY HALL, 1225 MAIN STREET, SEBASTIAN, FLORIDA.
Mayor Conyers called the meeting to order at 7:00
p.m.
2. The Pledge of Allegiance was recited.
Invocation was given by Reverend Jim Brown,
Community Baptist Church, Roseland.
4. ROLL CALL
Present:
Mayor W.E. Conyers
Councilman Peter Holyk
Vice Mayor Frank Oberbeck
Councilman Lonnie Powell
Councilman George Reid
Also Present:
City Manager, Robert McClary
City Attorney, Charles Nash
Director of Community Development,
Bruce Cooper
Acting Finance Director, Larry
Napier
City Clerk, Kathryn O'Halloran
Deputy City Clerk, Sally MaiO
Regular City Council Meeting
April 24, 1991
Page Two
91.116
91.016
5. AGENDA MODIFICATIONS (ADDITIONS AND/OR DELETIONS)
At the request of the City Manager, Council concurred
to place discussion of a fuel tank leak at the City
garage under presentations.
6. PROCLAMATIONS AND/OR ANNOUNCEMENTS
Proclamation L Municipal Clerks Week - 5/5/91
5/11/91
Mayor Conyers read the proclamation honoring
Municipal Clerks.
7. PRESENTATIONS
The City Manager reported on Empire Engineering's
discovery of ground and water contamination at the
city garage caused by a leak in a 5000 gallon diesel
tank originally scheduled for retrofitting. He
explained that the tank will now have to be removed
and the soil excavated and moved offsite.
Andy Feinstein, Empire Environmental, said the soil
had been analyzed and been found to be excessively
contaminated and that DER has been informed that the
tank would be removed this Friday, at which time the
extent of the groundwater contamination can be
tested.
Bob Walker, Empire Engineering and Testing, said all
contaminated soil will be removed on Friday.
The City Manager gave a cost estimate ranging from
850,000 to 860,000.
Vice Mayor Oberbeck suggested the city get out of the
fuel business. The City Manager responded that the
Acting Finance Director had contacted a supplier on a
temporary basis and that Vice Mayor Oberbeck's
recommendation merited close scrutiny.
The City Manager noted that the consultants bid had
contained an alternate bid for removal of this tank
for $3000.
2
Regular City Council Meeting
April 24, 1991
Page Three
MOTION by Powell/Oberbeck
i move we approve removal of the 5000 gallon tank
at the city garage.
ROLL CALL:
Mayor Conyers
Councilman Holyk
Vice Mayor Oberbeck
Councilman Powell
Councilman Reid
aye
aye
aye
aye
aye
MOTION CARRIED 5-0.
Bob Walker quoted prices of 860 per ton for removal
to a burn center and $9 per ton for excavation of
soil.
MOTION by Oberbeck/Powell
I move we authorize the contractor to proceed
with removal of contaminated soil from the site on an
emergency basis.
ROLL CALL:
Councilman Holyk
Vice Mayor Oberbeck
Councilman Powell
Councilman Reid
Mayor Conyers
aye
aye
aye
aye
aye
MOTION CARRIED 5-0.
The City Manager said the Contamination Assessment
Report would be on the May 8, 1991 agenda, although
it may not be presented before agenda deadline.
At this time, Mayor Conyers requested that Ron Harsh
and Joe DeWolfe be allowed to make a presentation
regarding the recent TAB fundraiser. Council
concurred.
Ron Harsh and Joe DeWolfe, coordinators of the TAB
fundraisers on April 13, 1991, commended all those
involved in making it a success and presented checks
totalling $4652 to TAB representatives. Mr. Harsh
said a tentative two day event was in the works for
April 11 and 12, 1992.
3
Regular City Council Meeting
April 24, 1991
Page Four
8. PUBLIC HEARING, FINAL ACTION
90.211 A.
ORDINANCE NO. O-91-03 - Mandatory Numbering of
Improved Properties
AN ORDINANCE OF THE CITY OF SEBASTIAN, INDIAN RIVER
COUNTY, FLORIDA, PERTAINING TO THE DISPLAY OF BUILDING
NUMBERS; AMENDING ARTICLE V OF THE LAND DEVELOPMENT CODE
TO ADD NEW SECTION 20A-5.46 PERTAINING TO THE DIMENSIONS
AND LOCATION OF BUILDING NUMBERS TO BE DISPLAYED;
PROVIDING FOR REPEAL OF ORDINANCES OR PARTS OF ORDINANCES
IN CONFLICT HEREWITH; PROVIDING FOR INCLUSION IN THE LAND
DEVELOPMENT CODE OF THE CITY OF SEBASTIAN; PROVIDING FOR
SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. (lst
Reading 3/27/91, Advertised 4/10/91, PH 4/24/91)
The City Attorney read Ordinance No. O-91-03 by title
only.
Mayor Conyers opened the public hearing at 7:46 p.m.,
however, being no public input, he closed the public
hearing immediately.
MOTION by Oberbeck/Powell
I move we accept the final reading of Ordinance
No. O-91-03.
The Director of Community Development recommended an
amendment to page 3, #6 as follows: (amended
legislatively) "All buildings which have free
standing signs on the same lot or parcel of land
where the building is located shall display their
building number on ~he ~p een~e~ ~ such sign an~7
~f ~he s~ ~s ~um~a~e~ ~he bu~§ ~umbe~s sha~
MOTION by Powell/Oberbeck
I move we amend Ordinance No. O-91-03 as
recommended by Mr. Cooper.
ROLL CALL:
(amendment)
Vice Mayor Oberbeck
Councilman Powell
Councilman Reid
Mayor Conyers
Councilman Holyk
aye
aye
aye
aye
aye
MOTION CARRIED 5-0.
4
Regular City Council Meeting
April 24, 1991
Page Five
91.066
ROLL CALL:
(main motion)
Councilman Powell
Councilman Reid
Mayor Conyers
Councilman Holyk
Vice Mayor Oberbeck
aye
aye
aye
aye
aye
MOTION CARRIED 5-0.
B. ORDINANCE NO. 0-91-10 - Columbus Club
Comprehensive Land Use Plan Amendment - 2.65
Acres
1ST PUBLIC HEARING AND TRANSMITTAL TO DEPARTMENT OF
COMMUNITY AFFAIRS - PURSUANT TO F.S. 163.3184
(15)(b)l. "..THE iNTENTION TO HOLD AND ADVERTISE A
SECOND PUBLIC HEARING SHALL BE ANNOUNCED AT THE FIRST
PUBLIC HEARING."
AN ORDINANCE OF THE CITY OF SEBASTIAN, INDIAN RIVER
COUNTY, FLORIDA, PERTAINING TO A CHANGE IN THE
COMPREHENSIVE LAND USE PLAN; AMENDING THE
COMPREHENSIVE LAND USE PLAN MAP FROM INDIAN RIVER
COUNTY MD-1 (MEDIUM DENSITY) DISTRICT TO CITY OF
SEBASTIAN INS (INSTITUTIONAL) DISTRICT FOR LAND
SITUATED IN THE NORTH CENTRAL AREA OF THE CITY,
APPROXIMATELY 2.65 ACRES MORE OR LESS, LOCATED ON
GIBSON STREET; PROVIDING FOR A COPY OF THE
DESIGNATION CHANGE TO THE COMPREHENSIVE LAND USE PLAN
MAP TO BE FORWARDED TO THE FLORIDA DEPARTMENT OF
COMMUNITY AFFAIRS; PROVIDING FOR REPEAL OF ORDINANCES
OR PARTS OF ORDINANCES IN CONFLICT HEREWITH;
PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN
EFFECTIVE DATE. (lst Reading 3/27/91, Advertised
4/15/91, 1st PH 4/24/91)
The City Attorney read Ordinance No. 0-91-10 by title
only.
Mayor Conyers opened the public hearing at 7:51 p.m.
John Farnsworth, adjacent property owner and residen%
of Roseland, questioned the impact on his property.
The Director of Community Development responded that
impact would be addressed if and when the property
is proposed to be developed and that Mr. Farnsworth
would be notified.
5
Regular City Council Meeting
April 24, 1991
Page Six
91.015
Mayor Conyers closed the public hearing at 7:54 p.m.
MOTION by Oberbeck/Powell
I move we approve Ordinance No. O-91-10.
ROLL CALL:
Councilman Reid
Mayor Conyers
Councilman Holyk
Vice Mayor Oberbeck
Councilman Powell
aye
aye
aye
aye
aye
MOTION CARRIED 5-0.
Mayor Conyers announced Council's intention to hold a
second public hearing.
Mayor Conyers called recess at 7:56 p.m. and
reconvened the meeting at 8:12 p.m. Ail members
were present.
Collier Place PUD Conceptual Plan Termination -
Pursuant to Section 20A-4.9.E.3.(i) (Staff
Recommendation dated 4/18/91)
Mayor Conyers opened the public hearing at 8:14 p.m.,
however, being no input, he closed the public hearing
immediately.
MOTION by Oberbeck/Reid
I move to terminate the conceptual development
plan for the Collier Place PUD.
ROLL CALL:
Mayor Conyers
Councilman Holyk
Vice Mayor Oberbeck
Councilman Powell
Councilman Reid
aye
aye
aye
aye
aye
MOTION CARRIED 5-0.
9. PUBLIC INPUT
A. Non-Agenda Items
None.
B. Agenda Items
None.
Regular City Council Meeting
April 24, 1991
Page Seven
91.117
91.118
10.
11.
CONSENT AGENDA
Approval of Minutes L 4/'10/91 Regular Meeting
MOTION by Powell/Holyk
I move we approve the consent agenda.
ROLL CALL:
Councilman Holyk
Vice Mayor Oberbeck
Councilman Powell
Councilman Reid
Mayor Conyers
aye
aye
aye
aye
aye
MOTION CARRIED 5-0.
COMMITTEE REPORTS/RECOMMENDATIONS
A. Board of Adjustment
Reappointment__°f James Husk - Three Year Term
to Expire 5/1/94 (Staff Recommendation dated
4/17/91, Husk Memo dated 3/19/91)
MOTION by Oberbeck/Powell
I move to reappoint James Husk to the Board of
Adjustment for the additional three year term to
5/94.
ROLL CALL:
Vice Mayor Oberbeck
Councilman Powell
Councilman Reid
Mayor Conyers
Councilman Holyk
aye
aye
aye
aye
aye
MOTION CARRIED 5-0.
Appointment of Alan M. Shisgal as Alternate
Member_- Three Year Term to Expire 5/1/94
(Staff Recommendation dated 4/17/91, Shisgal
Application, PD Memo dated 3/18/91)
MOTION by Oberbeck/Holyk
I move to appoint Alan M. Shisgal as alternate
member to the Board of Adjustment for a three year
term expiring 5/94.
Vice Mayor Oberbeck recommended that some board terms
be rotated or a limit be placed on them. Council, by
consensus, placed discussion of this matter on the
May 1, 1991 agenda.
7
Regular City Council Meeting
April 24, 1991
Page Eight
ROLL CALL:
Councilman Powell
Councilman Reid
Mayor Conyers
Councilman Holyk
Vice Mayor Oberbeck
aye
aye
aye
aye
aye
MOTION CARRIED 5-0.
12. OLD BUSINESS
90.290
GDC Bankruptcy Claim (City Manager Recommendation
dated 4/17/91, GDC Offer, Exhibit A__, Exhibit C,
79 Agreement, 2/19/86 Palmer Opinion)
The City Manager reiterated his report (see attached)
on GDC negotiations and recommended a counteroffer.
City Council requested that the City Manager, prior
to mailing a counteroffer to GDC, submit it to
Council for their review and discussion at the next
possible meeting.
Ray Thompson, 209 SW Caravan Terrace, Sebastian,
expressed concern for a flood prone water retention
area ad3acent to his home that had never been
completed by GDC, which it now claims is in Unit 16
rather than Unit 13.
13. NEW BUSINESS
91.119
Airport FBO Minimum Standards (City Manager
Recommendation dated 4/18/91, Proposed Minimum
Standards)
Following a brief presentation of the proposed
standards by Airport Manager, John Van Antwerp, and
input from Council members, Council concurred that
Mr. Van Antwerp should survey other airport managers
and consult with staff to refine the proposed minimum
standards so that Council might have something to
work with when the airport compability study is
completed.
14. MAYOR'S MATTERS
Mayor Conyers requested that the Chief of Police
check into older children hanging out at BSSC and the
Creative Playground; stated, regarding the recently
submitted petition requesting funding for a narcotics
officer, that people should review what they are
signing; requested updates on the Macedonia Baptist
8
Regular City Council Meeting
April 24, 1991
Page Nine
Church, police facility, City garage building and the
Hartman report on proposed city sewer and water; read
a log of yearly use of the Community Center and Yacht
Club by senior citizens; read a letter commending
Acting Finance Director, Larry Napier and his
department for the successful audit report and
questioned whether the city is in compliance
with Section 2-63 regarding costs in excess of $2000
with recent renovations.
Responses to updates were as follows: The Director
of Community Development stated that the city is not
taking any action in regard to the church; the Acting
Finance Director said the bid opening on the Police
facility is May 10th, that he is finishing up bid
specs for the garage and that the city is in full
compliance regarding Section 2-63; and the City
Manager said the Hartman report will be submitted in
two to three weeks.
15. COUNCIL MATTERS
A. Vice Ma oy_0_~ Oberbeck
In response to question by Vice Mayor Oberbeck
regarding the status of negotiations with Sebastian
Lakes for Laconia Street, the City Manager said he
had not yet completed an outline to present to them.
Vice Mayor Oberbeck commended the Police Department
for several recent arrests.
B. Councilman Holyk
Councilman Holyk said, reporting on his attendance at
the last County Commission meeting, the commission
would like direct input from City Council and
volunteered as a council liaison; expressed concern
for the location of a gas station on the CAVCORP
property adjacent to Riverview Park and suggested
Council pursue purchasing the rest of the lot.
D. Councilman Reid
Councilman Reid recommended that Council look at
developing nine more holes at the Golf Course and
requested that Council investigate regulating
garage/yard sales.
Regular City Council Meeting
April 24, 1991
Page Ten
90.242
16.
The City Manager suggested that the Director of
Community Development obtain model ordinances for
review and let staff recommend to Council. The
Director of Community Development suggested it be
passed through Planning and Zoning.
C. Councilman Powell
In response to Councilman Powell, the City Manager
said the City Engineer would start on May 1, 1991.
CiTY ATTORNEY MATTERS
The City Attorney said there is proposed airport
zoning regulation legislation which may change
Chapter 333 FS, changed last year, which may affect
the ordinance he is drafting.
At the request of Councilman Powell, the proposed
adult entertainment ordinances scheduled for the May
workshop were postponed.
17. CITY MANAGER MATTERS
18.
The City Manager requested Council's blessing for the
carpeting of the City Council chambers at a cost of
$1700.
Being no further business, Mayor Conyers adjourned
the meeting at 9:47 p.m.
Approved at the
Meeting.
Kathr~ M. 0 Halloran, City Clerk
10
. . onyers, M~6r
/
City of Sebastian
POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 u FAX (407) 589-5570
SUBJECT: GDC Bankruptcy Claim
City Manager
EXPENDITURE
REQUIRED:
) Agenda No.
)
) Dept. of Origin: City Manager
)
) Date Submitted: 04/17/91
)
) Approved For Submittal By:
)
) For Agenda Of: 04/24/91
)
) Exhibits:
) - 3 Pages - GDC Offer -3 pages
)
) - Exhibit "A" - Essential Contract
) Elements - 2 pages
)
) - Exhibit "C" - 4 pages
)
) - 1979 Agreement
)
) - 2/19/86 Palmer Opinion
AMOUNT
BUDGETED:
APPROPRIATION
REQUIRED:
SUMMARY STATEMENT
On April 6, 1990, General Development Corporation ("GDC") filed
for protection under Chapter 11 of the Federal Bankruptcy Laws.
Since that date, GDC has failed to meet its obligations under
the terms of a contract with the City dated August 15, 1979. On
June 26, 1990, July 12, 1990, November 13, 1990, January 16,
1991, March 26, 1991, and again on April 9, 1991, I met with
officials of GDC to discuss a possible agreement between GDC and
the City. The effect of an agreement would be to relieve GDC of
its obligations under the terms of the 1979 agreement.
CITY OFFER
GDC had previously been furnished copies of my report to City
Council dated 1/29/91 regarding the bankruptcy and the City's
response.
-- i --
GDC OFFER
At the March 26th meeting, GDC presented their view of the City's
claim. This was done on a page marked "Discussions Only" and
dated 3/14/91. GDC denied most of the City's claims totaling
$4,460,256 and provided their own estimate of ,liabilities
totaling $1,059,531. Although GDC presented this page for
discussion, no one present could detail the reductions since,
according to GDC officials present, it was prepared by GDC
officials who were not present. I agreed to review it and discuss
it in further detail at a subsequent meeting. At the April 9th
meeting, GDC presented, again for "Discussions Only" a
preliminary offer of various properties valued at $698,470.
Attached was a detailed description of tract numbers and
converted drainage lots. These two (2) pages are not dated, but
are enclosed for your review.
DEFICIENCIES IN GDC PROPOSAL
The negotiating session of April 9th began by my questions of the
GDC estimate of liabilities as presented on the page dated,
3/14/91. Again, the officials present could not give much detail
on their rationale for reducing much of the estimate, but the
following discussion is numbered in the same order as their page:
1. Unit 16 Street and Drainage. City estimate equals
$220,700; GDC - $64,509; a reduction of $156,191. GDC offered no
explanation other than that was their estimate to bring into
compliance the street and drainage facilities in Unit 16.
2. Unit 17 Street and Drainage. City estimate equals
$1,364,472; GDC - $739,222; a reduction of $625,250. GDC offered
no explanation other than this was their estimate to bring into
compliance the street and drainage facilities in Unit 17.
3. Elkcam Waterway. City estimate $1,531,250; GDC - $230,400; a
reduction of $1,300,850. GDC denies any responsibility to
construct seawalls in the major canals South of CR 512. The GDC
estimate of $ 230,400 is their estimate to construct the water
control structure on the Elkcam Canal, a project the City
estimates at $300,000. GDC's response to the reduced estimate is
that the bulk heads were GDC's obligations to property owners and
not to the city. Balderdash! Paragraph 15 of the 1979 agreement
explicitly requires GDC to construct these facilities.
4. Wentworth Ditch Realignment. City estimates $103,834; GDC -
$ -0-; reduction of $103,834. GDC denies any responsibility for
this grossly misaligned ditch stating that it existed prior to
their development. However, GDC's drainage plans require a canal
to be located in a rear yard easement. Paragraph 10 of the 1979
agreement states:
- 2 -
DEFICIENCIES IN GDC PROPOSAL
{Continued~
,,X. General will indemnify and legally
defend at not cost to the City and save the
city harmless from any and all actions and
judgments, if any, by purchasers of property
from General who have any complaints or legal
actions against General in regards to the
location and/or construction of drainage ways
in the city.',
Additionally, in paragraph 12 of the agreement, the City accepted
only those drainage facilities which were "recorded in the
official Records of Indian River County." The misaligned
Wentworth ditch is clearly not recorded in the official records
of Indian River County. The City simply cannot accept something
that does not exist. Nor is the City required to accept an
"improvement" which is constructed on private property and not
held by deed or easement by the City, namely the Wentworth ditch
which is completely outside of the easement and on private
property.
In his legal opinion dated February 19, 1986, then City Attorney
Thomas C. Palmer, Esq. opined that the City accepted only those
drainage facilities which were properly aligned. Lastly, prior
to bankruptcy, GDC would promptly respond to complaints from the
City or property owners and correct misaligned ditches in all
units of the Sebastian Highlands. Clearly, GDC's administration
and practice of the 1979 agreement committed GDC to realign
improperly aligned drainage facilities.
5. Construction Contingency. The City estimate $322,000; GDC -
estimate $ -0-; reduction of $322,000. GDC claims their should
be no construction contingencies. Further, they claim that the
contingencies in the City estimates were included in the cost
estimates to bring street and drainage facilities in Units 16 and
17 into compliance with the 1979 agreement. GDC's assertion is
nonsense and deserves no further explanation. A construction
contingency of 10% is reasonable.
6. Unit 16 Stormwater Retention Lake. (Collier Waterway) The
City estimate $695,100; GDC - estimate $-0-; reduction of
$695,100. GDC's explanation for this reduction was that the
stormwater lake was a part of the improvements of that portion of
Unit 16, which is not yet constructed and therefore, the
construction of this stormwater lake is not required at this
time. However, when confronted with photo copies of the the
recorded plats, which indicates that about 98% of the lake is in
Unit 11, GDC continued to deny they had any responsibility for
its construction. They also said that permits would be difficult
to obtain. Paragraph 15 of the 1979 agreement requires GDC to
construct this lake and to maintain all waterways South of CR 512
until all the work is completed. GDC has a responsibility to
construct this lake under the terms of the 1979 agreement.
- 3 -
DEFICIENCIES IN GDC PROPOSAL
(Contlnued~
?. Emergency Repairs To Date. City estimate $15,400; GDC -
$15,400; reduction $ -0-. At the April 9th meeting, I advised
GDC that the City was amending this claim for an additional
$55,000 for repairs to streets in Unit 17 which were in a
deplorable and unsafe condition. GDC asked for additional
details which I have since furnished to them.
8. Improperly Aligned Drainage Ditches. City estimate $197,500;
GDC - $-0-; reduction of $197,500. GDC disputed any obligation
to correct improperly aligned drainage ditches. Please see
Paragraph number 4 above. However, as we discussed this matter,
GDC offered to accept the figure of $100,000. The City's
estimate of $195,000 was calculated as follows:
Estimate 25 ditches in 13 Units (excluded are
Units 7, 12, 16 & 17 and "Wentworth" ditch.
13 Units X 25 Misaligned Ditches X $600 per
Ditch = $195,000
I have no problem in reducing the estimate to $100,000.
9. Englar Bridge Repair. city estimate $10,000; GDC - estimate
$10,000; reduction of $ - 0-.
SUMMARY
The total City estimate is $4,460,256; the GDC estimate is
$1,059,530; the overall difference is $3,400,725. As outlined
above, I do not believe we should accept GDC's lower estimates.
There are three (3) claims that the City may be able to reduce
its estimate: In claims number 1 and 2 for Units 16 & 17 Street
and Drainage, the City may wish to reduce its estimates to the
1979 contract standard of soil cement base and one inch of
asphalt, although this standard would not meet current standards.
The third area is identified in claim number 8 above to reduce
the value of improperly aligned drainage ditches from $197,500 to
$100,000.
GDC PROPOSED ASSETS FOR TRADE
GDC has presented a preliminary for "Discussions Only" offer of
$698,470. At the same time, GDC is offering to convey some
$168,000 (their value) of other "assets" to the City, including
the various "park" tracts and residential building lots, which
were converted for drainage retention. In my judgment, this
offer should not be considered until the dollar amount of the
claim is resolved.
- 4 -
CITY COUNTER OFFER
At this point in time, it may be appropriate for the City to make
a counter offer. Any offer should include those "Essential
Contract Elements" which were outlined in my memo to the Mayor
and City Council, dated January 29, 1991 and since revised. GDC
has agreed to all but one (1) parcel on this schedule. Exhibit
"B" of the January report outlined in dollars and cents GDC's
1979 contractual obligations. I may point out' that these
obligations do not list an additional $55,000 authorized by City
Council for Unit 17 street repairs nor does it list the
maintenance expenses GDC would incur for street and drainage
facilities had GDC not filed for bankruptcy. As noted in the
"Summary" part of this report, I believe there is some
justification for a reduction in the City's estimate of GDC's
liabilities. Exhibit "C" of my January report outlined those
assets which I believe would be appropriate as a "trade" with GDC
to relieve GDC of its 1979 contractual obligations. I have
revised that schedule, which is enclosed for your review.
~'PARKS"
I do want to point out that GDC says there is a difference
between "dedicated" and "designated" park tracts. It is GDC's
position that those tracts which they have identified as
dedicated parks are ones which they are willing to convey to the
City.
GDC's position on the "designated" parks, is that GDC has
obligation or responsibility to convey this property to the City
or to develop the parcels as park. It is their intent to further
subdivide these "park" parcels into residential building lots and
sell them. They have also suggested that the City agree to
rezone some of these tracts to commercial zoning designations.
When asked to convey them to the City, GDC's response is that
they would be willing to sell these tracts to the City at fair
market value. With this type of pathetic corporate greed, it is
little wonder that GDC finds itself in bankruptcy court or that
it has been found guilty of illegally misrepresenting its
properties. GDC clearly represented these sites as parks. In
good faith, individuals purchased building lots with, at least,
implied promises of neighborhood parks. In good faith, the City
identified these parks as open recreation space in its local
comprehensive plan. It is unfortunate that the 1979 agreement
did not specifically address this issue. Rather than conveying
these parcels as GDC assets, they might otherwise be viewed as
GDC liabilities. Therefore, I believe the City should be very
hesitant to exclude these properties from the current
negotiations or to ever allow a rezoning to other than its
current "Public Service" zoning designation.
CITY IS NOT A DEVELOPER
I must again bring to your attention that by relieving GDC of its
obligations, the City would assume responsibility for the
maintenance of infrastructure (streets and drainage) built to
date. However, it must be understood that the City is not
assuming GDC's responsibilities under the 1979 agreement.
- 5 -
(Example: GDC is required to construct certain seawalls along
the Elkcam Waterway at an estimate cost of $1.2 million. The city
may choose to construct the seawalls, or to install rip rap, or
to do nothing.) The point is that the city of Sebastian is not a
developer and must make no pretense that it is to assume GDC's
civil liabilities, responsibilities, representations 'or promises.
Under no circumstances is the City committing to construct
streets or drainage structures in portions of Unit 16 or 17 which
are platted but not improve.
- 6 -
4.
5.
6.
7.
8.
9.
10.
11.
unu ~ to ~/treet and Drainage
EIkcam Waterway (Seawall and Water Control
Structure)
Wentworth Ditch - Realignment
Construction Contingency (10%)
Unit 16 Stormwater Retention Lake
(Collier Waterway) - not constructed
Emergency Repairs To Date
Improperly Aligned Drainage Ditches
(Estimate)
Repair Englar Bridge Over Collier
Waterway in Unit 16
Park, Governmental and Conservation
Sites
Commercial/Industrial and Other
Properties
TOTAL
1,364,472
1,531,250
103,834
322,000
695,100
15,400
197,500
10,000
$ 4,460,256
739,222
230,400
~0-
-0-
15,400
-0-
10,000
$1,059,531
TRACT NUMBERS AND CONVERTED DRAINAGE LOTS
DESCRIPTION
Tract B, Unit 14
Tract C, Unit 8
Tract A, Unit 13'
Tract B, Unit 13'
Tract D, Unit 13
Tract tl, Unit 17-
Tract I, Unit 17'
Tract K, Unit 17-
Tract M, Unit 17.
Tract R, Unit 17'
Tract S, Unit 17'
Tract O, Unit 17
(Park)
(Park)
Residential Lots
Unit 11, Block 55, Lots 10 to 15
Unit 11, Block 386, Lots 2 to 7
Unit 16, Block 545, Lots 12 to 17
Unit 16, Block 612, Lots 10 and 11
Unit 17, Block 449, Lots 1 to 11
Unit 17, Block 451, Lots I to 4
Unit 17, Block 462, Lots 11 and 12
Unit 17, Block 570, Lots 4 to 19
Unit 17, Block 578, Lots I to 16; 19 and 20
Unit 17, Block 579, Lots 12 to 14 and 19, 20, and 21
Unit 17, Block 580, Lots I to 3; 19 and 20
Unit 17, Block 582, Lots 6 to 11 and 18 to 23
Unit 17, Block 584, Lots 13 to 16
Unit 17, Block 586, I,ots 6, 7, 8 and 19, 20, 21
Unit 17, Block 589, Lots 4 and 5
Unit 17, Block 596, Lots 12 to 15 and 18 to 22
Unit 17, Block 598, Lots 14 to 17
Total of 116 residential lots converted to
drainage .....................................
Total Acreage
7,82
8.01
3.99
10.08
26.81
3.76
33.28
2.80
2.10
2.44
1,91
8.50
111.10
29.00
TOTAL ACREAGE 140.10