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HomeMy WebLinkAbout03122008~.vr cm' K /-~ HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL AGENDA REGULAR MEETING WEDNESDAY, MARCH 12, 2008 - 7:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA ALL AGENDA ITEMS MAYBE INSPECTED /N THE OFFICE OF THE CITY CLERK 1225 MAIN STREET, SEBASTIAN, FLORIDA Individuals will address the Cify Counci! with respect to agenda items immediately before deliberation of the item by the City Council -time limit five minutes where public input allowed CALL TO ORDER 2. PLEDGE OF ALLEGIANCE LED BY VICE MAYOR NEGLIA 3. MOMENT OF SILENCE 4. READING OF CIVILITY PLEDGE BY VICE MAYOR NEGLIA We will be respectful of one another even when we disagree. We wit/ direct a!l comments to the issues. We will avoid personal attacks. 5. ROLL CALL 6. AGENDA MODIFICATIONS Modifrcations and additions require unanimous vote of City Council members 7. 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. 8. CONSENT AGENDA A!I items on the consent agenda are considered routine and will be enacted by one motion. There wid be no separate discussion of consent agenda items unless a member of 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 stag of the meeting or by raising his/her hand to 6e recognized. ~-2 A. Approval of Minutes -Special Meeting 2/27/08 3-ta B. Approval of Minutes -Regular Meeting 2/27/08 COMMITTEE REPORTS & APPOINTMENTS City committee reports and Council Member regional committee reports. No public input or action except for City commiKee member nominations and appointments under this heading. 10. PUBLIC HEARINGS -None 11. UNFINISHED BUSINESS 12. PUBLIC INPUT Public Input far each individual is frve minutes, however, it can be extended or terminated by a majority vote of Counci! members present. 13. NEW BUSINESS 08.031 A. LoPresti Aviation T5-41 (Airport Director Transmittal, Proposed Lease and Agreement) i. Lease ii. Economic Development Incentive Agreement 14. CITY ATTORNEY MATTERS 15. CITY MANAGER MATTERS 16. CITY CLERK MATTERS 08.032 A. Citizen Budget Review Advisory Board 43-45 i. Direct City Clerk Re: Two At-Large and One Alternate Member Terms - Extend One Year Term Expirations from April 2008 to November 2008 or Re-Advertise for New Members for Review of 2008/2009 Budget (City Clerk Transmittal, Code Provisions) 17. CIT A. B. C. 08.033 D. E. Y COUNCIL MATTERS Ms. Simchick Mr. Wolff Mayor Coy i. Potential City Hall Open House (no backup; Mr. Neglia Mr. Paternoster 18. ADJOURN (A!! meetings shall adjourn at 10:30 pm unless extended for up to one half hour by a majority vote of City Council) HEARING ASSISTANCE HEADPHONES ARE AVAILABLE /N THE COUNCIL CHAMBERS FOR ALL GOVERNMENT MEETINGS. ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE WITH RESPECT TO ANV MATTER CONSIDERED AT THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE. WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE HEARD. (286.0705 F.S.J !N COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT (AOA), ANYONE WHO NEEDS A SPECIAL ACCOMMODATION FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 589-5330 AT LEAST 48 HOURS IN ADVANCE OF THIS MEETING. OACOminq llleefing5: March 26, 2008 - T00 pm -Regular City Council Meeting Apri! 9, 2008 - 7:00 pm -Regular City Council Meeting Apri! 23, 2008 - 7:00 pm -Regular City Counci! Meeting cm ~ S_I~_N HOME OF PELICAN ISLAND SPECIAL CITY COUNCIL MEETING ATTORNEY-CLIENT SESSION MINUTES WEDNESDAY, FEBRUARY 27, 2008 - 6:00 PM CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 2. 3. Mayor Coy called the Special Meeting to order at 6:00 p.m. ROLL CALL City Council Present: Mayor Andrea Coy Vice-Mayor Sal Neglia Council Member AI Paternoster Council Member Dale Simchick Council Member Eugene Wolff ~~pF~ Staff Present: City Manager, AI Minner City Attorney, Rich Stringer City Clerk, Sally Maio Deputy City Clerk, Jeanette Williams IN ACCORDANCE WITH 286.011(8), F.S. REGARDING A PUBLIC REQUEST MADE BY THE CITY ATTORNEY ON FEBRUARY 13. 2008, CITY COUNCIL WILL RECESS CITY OF FELLSMERE The City Attorney briefly announced the purpose of the Attorney-Client session under FS 286.011(8) and his request at the last meeting, announced the names of those who would be in attendance as follows, and said the estimated time of the session was less than one hour: Mayor Andrea Coy Vice-Mayor Sal Neglia Council Member AI Paternoster Council Member Dale Simchick Council Member Eugene Wolff City Manager, AI Minner City Attorney, Rich Stringer Certified Court Reporter J ~~pF~ Special City Council Meeting February 27, 2008 Page Two Mayor Coy then recessed the meeting for the session and the individuals referenced above left the Chambers to go to the second floor conference room. REOPENING OF PUBLIC MEETING TO ANNOUNCE TERMINATION OF ATTORNEY-CLIENT SESSION Mayor Coy reopened the Special Meeting at 6:43 p.m. and announced the termination of the Attorney-Client Session. 5. Being no further business, Mayor Coy adjourned the Special Meeting at 6:43 p. m. Approved at the February 27fhh, 2008 Regular City Council Meeting. Andrea Coy, Mayor ATTEST: ~~ ~~~ Sally A. Maio, MMC -City Clerk (~ ~~ ~ ~~ $Ea~TA1V HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL MINUTES REGULAR MEETING WEDNESDAY, FEBRUARY 27, 2008 - 7:00 P.M. 2. 3. 4. 5. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA The Mayor called the regular meeting to order at 7:00 p.m. Mayor Coy led the Pledge of Allegiance. A moment of silence was held. ~~ Mayor Coy read the Civility Pledge. We wiN be respectful of one another even when we disagree. We will direct all comments to the issues. We will avoid persona! attacks. ROLL CALL Citv Council Present: Mayor Andrea Coy Vice-Mayor Sal Neglia Council Member AI Paternoster Council Member Dale Simchick Council Member Eugene Wolff Staff Present: City Manager, AI Minner City Attorney, Rich Stringer City Clerk, Sally Maio Deputy City Clerk, Jeanette Williams Airport Director, Joseph Griffin Police Lieutenant, Bob Lockhart Police Lieutenant, Greg Witt Public Works Director, Jerry Converse Stormwater Supervisor, Tim Walker G"O AGENDA MODIFICATIONS Modifications and additions require unanimous vote of City Council members Mayor Coy announced the Sebastian River High School instructor has withdrawn the request and asked to be moved to April 23, 2008. ,~ -- ~~ ~I Regular City Council Meeting February 27, 2008 Page Two 7. PRUGLAMAfIUNS AWAhruJ. tSKrtr ArvrvVUrv~. nn oY~a Presentations of proclamations, certificates and awards, and brief timely announcements by Council and Staff. No public input or action under this heading. 08.025 A. Certificate of Appreciation to Maureen Cummings -Natural Resources Board Sentice Mayor Coy read and presented the certificate to Maureen Cummings. 08.013 B. Sebastian River High School Student Presentation -Crime and Drug Use Prevention (backuppreviouslvorovided) Withdrawn until April 23, 2008 by request of the presenter. Brief Announcements Mr. Neglia said the Ecumenical Council will place a box in the lobby for its food pantry for the Easter season; reported on the County attempt to get an Advanced Life Support (ALS) truck but were unable to do so; reported on the grand opening regatta hosted by Sebastian River High School at the C54 canal which was a well run event ,they are seeking donations at www.sebastiancrew.com, and invited everyone to another race this Saturday. Ms. Simchick reported the Wabasso Beach improvement bidding process is underway and Golden Sands will be the designated lifeguard/surfer beach; reported on her trip to Tallahassee to lobby far funding for the City Manager's proposals and listed the individuals she met with and said it was her pleasure to serve her community; and announced the grand opening of the North Sebastian Conservation Area will be Saturday from 8 a.m. to 3 p.m. Mayor Coy read from a prepared statement (see attached) regarding lack of decorum at recent Council meetings, stated that costumes and signs which disrupt meetings are not appropriate, noting there is a resolution which prohibits signs at Council meetings. She said it is time to enforce our own policies, asking what message we are sending to children and constituents when we condone inappropriate behavior. She said as Mayor, and Chair of the Council, she will prohibit the wearing of costumes and disguises while at the podium and will enforce the prohibition of signs. She said she has discussed this with the City Manager and City Attorney and noted we have been advised by the City Attorney we can impose reasonable rules of conduct as long as we treat all equally. Mr. Wolff called a point of order noting that we are on Proclamations, Awards and Brief Announcements and this is not an appropriate time for this. Mayor Coy said it is an announcement of her enforcement of policy as Chair. I_ ~ ~~ Regular City Council Meeting February 27, 2008 Page Three ~T Mr. Wolff said the problem emanates from the chair, because there is a time for each member of Council to speak under his or her matters, and said the root cause is the inability to follow the rules, what she said was important but wondered how her announcement will address policy, behavior of the Council and without any backup material will only lead to more animosity amongst the members and begged the chair to think of the structure we are trying to work with and whether this is correct place to announce the dictates of the Mayor's office. Mayor Coy said this is not up for debate and if he wanted to poll the Council relative to her announcement he may do so. Mr. Wolff asked fellow Council members if they feel that this is the correct place in the agenda to bring this issue up. Mr. Neglia said the Mayor had a right to say what she said, it was said in the right position, and it is ridiculous to mention that it is the wrong time. Mr. Paternoster read the title for item 7, and said it would be better served under City Council matters because this is personal to her. Ms. Simchick said she was speaking as the Chair and not as a personal matter, stating she made an announcement as Chair; that Council has gone off track and it was timely and felt it was appropriate. Mayor Coy said she thought it interesting that the input was as to her timing and not the content. Mr. Paternoster said he did speak to content and noted it, and was concerned that she spoke on behalf of all members of Council, that she needs to practice what she preaches, that she has singled out one individual who she has had problems with, and that this comes after a meeting at which she was overruled on her decision. He said information should have been forthcoming to the rest of Council and asked that each member receive an abridged edition of Roberts Rules of Ordersince in the past we were advised that we could use it lackadaisically and now we are following the letter of the law so he requested a guideline to follow. Mayor Coy asked to read an item into the record and Mr. Paternoster called for a point of order because at the last meeting there was a request not to allow items to be read into the record. A poll of the members resulted as follows: Neglia, Simchick and Coy -read the item Wolff, Paternoster - do not read the item _~ ` Y~ I ~~ ,;; 3 Regular City Council Meeting February 27, 2008 Page Four Mayor Coy then read from the minutes of the January 10, 2007 Regular City Council Meeting, "Mr. Gilliams approached the podium wear a hot dog on a bun hat and was asked to remove it on a point of order by Mr. Paternoster if he wished to address Council." Mr. Paternoster then asked for another point of order stating that it seemed each time Council discusses an item, if she is going to have final commentary that all members should have another turn for commentary. Mayor Coy asked if he wanted to make the point of order on the issue they are discussing. Mr. Paternoster stated he was and asked the attorney to clarify that a point of order is a problem in the procedure. The City Attorney clarified that Council has been off the point of order for a little while at this point. ~~ga ~°~ The City Manager suggested moving on. ~` ~° y CONSENT AGENDA All items on the consent agenda are considered routine and will be enacfed 6y one motion. There will be no separate discussion of consent agenda items unless a member of City Council so requests; in which event, fhe item will be n:moved 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. i-f3 A. Approval of Minutes - 2/13/08 Regular Meeting 08.026 B. Purchase of 2008 Bobcat Mini Excavator for Stormwater from Smith Bros. Contracting 15-25 in Ft. Pierce, FL - $38,641.12 (PW Transmittal, Notice, Bid Tabulation) 08.027 C. Waive Bidding Process and Purchase Ten ICOP Model 20/20 Digital Patrol Camera 27-34 Systems in the Amount of $52,355.80 from ICOP Digital, Inc. and Ten Model M 7100 Mobile Radios in the Amount of $35,643.37 from Communication International Inc. (PD Transmittal, ICOP Quote, Communication International Inc. Quote) Mr. Paternoster removed item B. MOTION by Ms. Simchick and SECOND by Mr. Wolff, to approve items A and C of the consent agenda. Result of the roll call was as follows: Ayes: Neglia, Paternoster, Simchick, Wolff, Coy Nays: None /~~ Passed 5-0 4 Regular City Council Meeting February 27, 2008. Page Five Item B ~T The City Manager and Public Works Director responded to questions from Mr. Paternoster. MOTION by Mr. Paternoster and SECOND by Mr. Neglia to approve item B of the consent agenda. Result of the roll call was as follows: Ayes: Paternoster, Simchick, Wolff, Coy, Neglia Nays: None Passed 5-0 9. COMMITTEE REPORTS & APPOINTMENTS City committee reports and Council Member regional committee reports. No public input oraction except for City committee member nominations and appointments under this heading. 08.027 A. Natural Resources Board 3537 i. Todd Klitenic Reoort on Duck Crossino (Minutes Excerpt Cost Estimate) Todd Klitenic, Natural Resources Board, distributed materials to Council and requested installation of duck crossing signs on the four corners of the Easy Street Park and renaming the park. City Council discussion took place on the matter, and it was suggested that the City be looked at as a whole, and the City Manager said he could handle this as an administrative matter and report back. Mr. Wolff urged the Committee to petition the City to have the Easy Street lake tested and determine if it is still hazardous and if not remove those signs. The City Manager said he would administratively take care of this with the Environmental Planner. 10. PUBLIC HEARINGS -None 11. UNFINISHED BUSINESS 08.014 A. Set Bi-Annual Goals and Objectives for City Clerk As Required by Resolution ss R-07-31 (City Clerk Transmittal) Mr. Neglia said he had no problems, that the Clerk's staff is helpful and courteous, noted her duties are fulfilled. Mr. Paternoster said the Clerk far exceeds what is expected. Ms. Simchick said this is an administrative position, for the past year her office was burdened with records law, public records requests and made no complaints. She urged /~ the Clerk to continue to operate at the high standard that she does. `/ Regular City Council Meeting February 27, 2008 Page Six Mr. Wolff said Clerks office is well run, demeanor of staff stems from leadership, stated one goal would be to take more of her vacation time. Mayor Coy said it is hard to set goals because the office is governed by statutes and regulations, but stated two goals: more vacation and continue to set the standard for courtesy and customer service, noting her office does best job in City. She also urged her to continue to mentor her staff for her eventual retirement. MOTION by Mr. Paternoster and SECOND by Mr. Neglia to take more vacation time. Mr. Gilliams requested to speak and Mayor Coy said this was an administrative matter and would not recognize him because she had not allowed public input at the last meeting when they discussed the City Manager and City Attorney. Mr. Paternoster appealed the Chair's decision not to allow a member of the public to speak. The Mayor said her decision was based on a previous meeting where this was deemed an administrative matter, and to be consistent she denied the request. Result of the roll call to recognize the public was as follows: Ayes: Wolff, Paternoster Nays: Coy, Simchick, Neglia Failed 2-3 The voice vote on the original motion was as follows: Ayes: Coy, Neglia, Paternoster, Simchick, Wolff Nays: None. The Mayor called for recess at 8:01 p.m. and reconvened the meeting at 8:14 p.m. All members were present. 12. PUBLIC INPUT Pubtic Input for each individual is five minutes, however, it can be extended or terminated by a majority vote of Council members present. 08.028 A. Karen Dieol - sernor Resource Hssociauon rresenrauon or rvarne unanue~ Services (no backup) Karen Diegl, Senior Resources Association, introduced herself and explained the new name change from Indian River County Council on Aging. She gave a power point presentation on the organization, citing all of their contributions and noting they are the Community Transportation Coordinator. Mayor Coy said she had received an invitation for Meals for Mayors, helping to deliver ~) meals on wheels, and invited any member of Council to help out. t /" ~' ,.~~ ~'~`,,a Regular City Council Meeting February 27, 2008 Page Seven Mr. Neglia asked if there would ever be transportation on Saturdays and Ms. Diegl said there is a Saturday grant available but the funding went to another more traveled route, but in the future there maybe funding available. Ms. Simchick asked for a contact number and how many hours do they ask people to volunteer, and Ms. Diegl said they can call the Davis Street or Vero Beach location, noting the RSVP is a program which manages volunteers for a number of different organizations. She said volunteer hours are up to the volunteer. She gave the number as 569-0760. Anita Solomon urged Council to look at the needs of the citizens of the City and to uphold promises made. She then distributed a proposal to purchase a projector for "Theatre Under the Stars', a suggestion she made at the January 9r" Council meeting. (see attached) Mr. Neglia asked for a copy of the letter she read from and said the projector was a great idea. Mayor Coy suggested this could be an agenda item The City Manager said he has been looking into this and offered to report back on this at a future meeting. Richard Gilmore, 744 Kroegel, Sebastian, discussed Sebastian 2020, stating as a community we forget the path we are on and proposed we look ahead to 2020 because Sebastian will be changed, he described a scenario for 2020 and asked what steps citizens can take from preventing things from happening and recommended a commission to come up with a vision for Sebastian circa 2020. Damien Gilliams, 1623 US 1, said Ms. Diegl took twenty minutes under Public Input without a vote and hoped he would have the same consideration; said the Mayor should not have made her announcement under Proclamations and Awards; thanked Ms. Simchick for going to Tallahassee and asked far a report on her activities; said Mayor Coy discriminates on what people wear; asked if she had heard of the first amendment; said if we kept the fire department here we might get the ALS truck; said he was still waiting on his docks; talked about people dying at a City Council meeting and submitted an article about the shootings in Missouri (see attached) and asked why we have to have these security measures in place and if we treated people with respect The Mayor stated he had 15 seconds to wrap up. Mr. Gilliams continued. The Mayor thanked him. Mr. Gilliams said twenty minutes did not go by, and she gave him his first warning. He asked for a point of order and she gave him a second warning and asked him to take his seat. r~~ r. Regular City Council Meeting February 27, 2008 Page Eight Russell Hermann, encouraged the Council to restore decorum and respect to our meetings. He said all City Council members are accountable to the citizens, said we live in a place where freedom reigns, but interruptions are not tolerated. He asked what kind of example we are giving to our youth. Bill Bodon, 614 South Easy Street, said he sees some civility but not enough, said there should be freedom of speech and civility, said he understands the frustrations of the business community, and urged Council to revisit some of the regulations of the City to assist business owners. Chuck Lever, noted water shortages in other areas, and urged Council to look into this before it is too late. He offered his condolences to Mr. Paternoster and his family and noted it was not mentioned by the Chair. Jim Gallagher, Holden Avenue, said as a high school teacher for 30 years, he did not allow anyone to disrespect anyone, and was here to express his dismay at recent meetings and asked Council to put aside political differences to end this regular embarrassment, asking who would want to serve on this Council. He urged this not be allowed to continue under the guise of freedom of speech. He challenged the members to join together and put an end to this childish demagoguery. Todd Klitenic, 1274 Barber Street, stated amendment one passed and asked if the budget committee can meet earlier to see if we need to cut personnel or cut the budget. He also said the veteran Council Members swore to uphold the constitution and should allow freedom of speech. 13. NEW BUSINESS 08.029 A. Settlement of Adverse Possession Claim by Roman Witek of Bailev Drive (City at-st Attorney Transmittal, Letter Memorandum of Law, Affidavits, Photos, Letter) The City Attorney reiterated his recommendation as set out in the agenda packet. He stated the party is in agreement, and it will be done by governmental deed, the equivalent of a quit claim deed. MOTION by Mr. Paternoster and SECOND by Mr. Neglia to approve the settlement of Adverse Possession Claim by Roman Witek of Bailey Drive as per the City Attorney's transmittal. Result of the roll call was as follows: Ayes: Coy, Neglia, Simchick, Wolff, Paternoster Nays: None Passed 5-0 ~, ~/ (,} I l ~/ Regular City Council Meeting February 27, 2008 Page Nine CRAFT 14. CITY ATTORNEY MATTERS 08.030 A. Receive Direction as to Settlement of Fellsmere Annexation Litigation (no backup) The City Attorney said settlement proposals have gone back, he has brought forth language worked out with their attorney, and one addition is that the City of Fellsmere will pay 35% of any money they receive in lieu of recreation donations east of I95, noting there should be a time limit when they must do that. He recommended authorization to settle in accordance with the terms he has proffered with the addition that monies must be spent within a reasonable amount time as to address the impacts of population growth. The Mayor asked when this is public knowledge The City Attorney said the draft agreement is public record, but not his litigation strategy, until he believed, the final judgment is entered. The City Attorney advised Council should vote to authorize settlement with the Fellsmere litigation in accordance with draft stipulated final judgment with the one modification. MOTION by Mr. Paternoster and SECOND by Mr. Neglia to authorize direction for a settlement agreement of Fellsmere annexation and litigation issue. Result of the voice vote was as follows: Ayes: Neglia, Simchick, Wolff, Paternoster, Coy o~ .~ Nays: None ~~ Passed 5-0 Other Matters The City Attorney invited Council members to talk individually to him and if he issues an opinion it will go to everyone, but if there is a problem he will go to the member first. He said Roberts Rules is written for the English Parliament and offered to boil down shortened version for a five member body to be incorporated in a future procedural resolution. In regard to signs in the chamber, he said a lot of the conflicts Council is running into are where enforcement is felt to be unfair and forgiveness of the rules as they are written, is in the hand of the legislative body. He further advised, there is no provision for administrative waivers and if we keep hearing about unfair regulations over and over again, it is a good sign that the rule should be changed. 9 Regular City Council Meeting February 27, 2008 Page Ten 15. CITY MANAGER MATTERS The City Manager announced the Airport Workshop would be held April 2, 2008. (date changed later in meeting) The City Attorney alerted Council that at their next meeting, Planning and Zoning will be considering parking requirements for marinas uses and putting electricity on the docks that will not solve the parking problem, the problem is marina uses have certain parking requirements. 16. CITY CLERK MATTERS None. 17. CITY COUNCIL MATTERS A. Mr. Paternoster Suggested putting a timer on the screen for public speakers and a marquee outside of city hall with meetings noticed; said because of the Sunshine law, this is the only time we can share our ideas with one another and we have emotions and he is trying to influence others to vote his way and sometimes we confuse debate with civility; don't think it is right for anyone to pick on anyone and would like to see it curtailed; received a reply from Charles Vogt, Florida Dept. of Health regarding the Citgo station on US 1 (Steil) underground tanks, and that the City Manager was aware of what is going on and read Mr. Vogt's letter into the record: "Thank you for inquiring about the facility known as Steil No. Sixteen The site closed over two years ago and remains in out of service status. The status requires that the underground storage tanks remain empty and the facility does not reopen unless the facility comes into full compliance. The property is also known to be contaminated and is covered under a state restoration program. Unfortunately there have been delays in the execution of funds to a state contractor to begin remedial activities to include removal of the underground tanks. All parties are trying to cooperate but have been stifled by the lack of funding. At this point the facility is in a gray zone but technically in compliance as Jong as the fuel is not added to the tanks. The cosmetic issues of the facility, although unsightly are not under my jurisdiction nor DEP but the City of Sebastian Code Enforcement Division. 1 believe they (the City) is aware of the funding dilemma. The sad thing is we almost had the project approved near the end of last year. Hopefully the actions will progress and the eyesore and the environmental issues will quickly disappear" 10 Regular City Council Meeting February 27, 2008 Page Eleven [~R~~T The City Manager said he was unaware of these issues and said he would get with Mr. Vogt on the contamination level. Mr. Paternoster said the Florida Brownfields Program assists with cleanup of hazardous materials and provides financial assistance. The City Manager said there have been discussions about applying for Brownfields for the property but did not know if the Citgo station was the best use for this program due to the small size and lack of a business on the hook. The City Manager also said he would continue to get with Code Enforcement on the unsightly, unsafe structure issue. B. Ms. Simchick Ms. Simchick said she could not make the April 2nd Airport workshop and after discussion it was changed to May 7`", 2008 at 7 p.m. She said the Citgo station contamination would be a good project for the Natural Resources Board; announced the Pelican Island Wildlife Festival on March 8`", 2008 from 9 a.m. to 4 p.m.; noted Mel Fisher's Museum's new paint job looked nice as well as Wendy's landscaping. C. Mr. Wolff Mr. Wolff said it is clear from public that civility and the behavior of Council is a concern and barometer of the community and Council should set an example. He suggested Council follow the lead of the County Commission and rotate the chair on a 12 month basis and perhaps Council will think about this at the March election anniversary. He stated he is not interested in being the chair. He asked that everyone accept his apology for his behavior and pledged to do better and encourage the other members to do the same. D. Mavor Coy Mayor Coy reiterated the last paragraph of her statement to join her in the effort to restore dignity and respect for a democratic process and they have her pledge that she will do her absolute best to set aside any personal issues and focus on the business of Sebastian. E. Mr. Neglia Mr. Neglia said he thinks he is civil and will do his best to work with Council; not sure the Natural Resources Board should be in the contamination business but should work on becoming a green city; and asked if someone inspected the Citgo gas station. C 11 Regular City Council Meeting February 27, 2008 Page Twelve w~ ~~~ r 4s~~ a^~~' The City Manager stated the inspection is done by the Health Dept. or DEP and the contamination remediation would go back to the owner of the property and he would get Code Enforcement working on the other issues. The City Attorney stated the state has total enforcement of underground fuel tanks. 18.' Being no further business, Mayor Coy adjourned the regular meeting at 9:55 p.m. Approved at the March 12<", 2008 Regular City Council meeting. Andrea Coy, Mayor ATTEST: SaNy A. Maio, MMC -City Clerk I `~ n ~y'° ~f ~;~ ;, 12 alr a s e ~~" HOME QF FFi1GlH ISLAND AGENDA TRANSMITTAL Subject: 1.Airport Lease Agreement Agenda No. tJO. ~,~ ~ with LoPresti Aviation. 2. Economic Development Incentive Agreement with LoPresti Department Origin: uni ' al Airport Joseph Griffin Finance Director: Cen Cillgore City Clerk: Sally Maio /\ Ap ove Submittal by: City Attorney: Richard Str ger Date Submitted: March 5, 2008 ne •, City Manager For Agenda of: March 12, 2008 Exhibits: 1. Air ort Lease; 2. Economic Develo ment A reement EXPENDITURE AMOUNT BUDGETED: APPROPRIATION REQUIRED: -0- -0- REQUIRED: -0- SUMMARY On December 8, 2008, an economic development analysis relating to hanger development was delivered to council members. That discussion centered on the pros/cons of the city using FDOT grant money to develop additional hangers at the Sebastian Municipal Airport. Currently, there are two FDOT grants available for hanger construction. That project amount total is $1.425M. Subsequent to the December 08 submission to council, economic development discussions were restarted with LoPresti Aviation of Vero Beach. LoPresti Aviation is comprised of several entities. The core business, LoPresti Speed Merchants, is engaged in the, FAA certified, manufacturing of aircraft modifications that provide airframe efficiencies for General Aviation aircraft. A separate business entity concerns the development of the LoPresti Furv. This FAA certified aircraft will be marketed to the sports aircraft aviation enthusiast, and is planned to be built at a plant near Albuquerque, NM. LoPresti Aviation is currently located at Vero Beach Airport. Because of current, and future, business obligations, it has: 1. outgrown its current facility for the manufacturing portion of its business and; 2. understands that the facility does not meet the image marketing requirements for the sale of the Fury that will have a price point of approximately $450K. LoPresti Aviation has been approached by, and is considering, proposals from out-of--state interests for relocation. The firm has a long relationship with Indian River County and would prefer remaining in the area. Near term LoPresti Aviation requirements for its business are: 1. an administrative facility that displays a corporate respect fox the customer; 2. a manufacturing/storage facility to house the Speed Merchant business; and 3. a follow-on hanger/aircraft storage facility for marketing/sales and distribution of the F~ aircraft. Knowing that LoPresti Aviation was/is considering out-of-state possibilities and understanding the need for economic development in Sebastian, Che staff of Sebastian Municipal Airport approached LoPresti with an offer for LoPresti to consider that centered on the lease of a `wing' of the airport admin building, and the lease of a manufacturing/aircraft storage facility constructed with the aforementioned PDOT grant funds. Staff priorities during negotiations was/is the expectation, and requirement, that LoPresti would: 1. be a long-term airport tenant; 2. establish itself as a valued and respected member of the community, and 3. establish and engage in job creation as their business grows. LoPresti Aviation interests are prepared to commit to a lease agreement that would provide for the relocation of LoPresti Aviation to the Sebastian Municipal Airport. The timetable is dependent on the construction of a manufacturing facility to house the Speed Merchant manufacturing business. Construction estimates are that the city would agree to amove-in date for the administrative facility of December 1, 2008 and for the manufacturing facility oflanuary 1, 2009. LoPresti Aviation will agree to bring its entire business to Sebastian Airport, including the relocation of forty-five (45) jobs within nine (9) months of Sebastian Airport occupancy. LoPresti Aviation will further agree to establish the U.S. East Coast sales/marketing/distribution center for the F~ aircraft at the Sebastian Airport. In addition, LoPresti Aviation will relocate all administrative, marketing, and engineering functions to the Sebastian Airport. Total job growth impact for Sebastian Airport within a two (2) year period is estimated at seventy (70) jobs. To provide an initiative for job creation, staff recommends the approval of an economic development agreement that will provide for an $8,400 rebate to LoPresti. This agreement would run fox the first ten (10) years of the lease agreement. LoPresti would be eligible for the payment if they maintain a minimum of forty-five (45) jobs throughout the year---every year for 10 years. RECOMMENDED ACTION 1. Move to approve lease between the City of Sebastian and LoPresti Aviation. 2. Move to approve Economic Development Agreement between the City Of Sebastian and LoPresti Speed Merchants, Inc. ~ c, AIRPORT LEASE THIS LEASE, made and entered into this day of March, 2008, by and between the CITY OF SEBASTIAN, a municipal corporation existing under the laws of the State of Florida, (hereinafter referred to as the "Landlord"), and LoPresti Speed Merchants, Inc. (hereinafter referred to as "Tenant" or LoPresti). The Landlord and the Tenant are sometimes collectively referred to herein as the "parties". This document contains seventeen (17) pages, plus Schedule Pages "A" and "B." WITNESSETH: WHEREAS, the Landlord is the owner of certain property located in the County of Indian River County, Florida; and WHEREAS, the certain property is being used for the operation of the Sebastian Municipal Airport (hereinafter referred to as the "Airport"); and WHEREAS, the Landlord has agreed to lease such property to the Tenant subject to certain terms and conditions consistent with or in support of the current aviation use of such property; and WHEREAS, the Tenant desires to lease the said property from the Landlord, and to that end and in consideration of the premises, and the covenants, terms and conditions to be performed as set forth hereinafter; and NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the receipt and sufficiency of which are hereby acknowledged, the parties have agreed as follows: 1. RECITALS. The stated recitals are hereby incorporated by reference in this Lease Agreement. 2. LEASED PREMISES. Subject to the terms and conditions set forth hereinafter, and in accordance with the Principal Guiding Documents for Sehastian Municipal Airport, the Landlord hereby leases to the Tenant and the Tenant hereby rents from the Landlord that portion of the real property of the Landlord which is described more particularly on Schedule "A" affixed hereto and made a part hereof by reference (hereafter referred to as the "leased premises A"), also included is that portion of real property of the Landlord which is described more particularly on Schedule "B" affixed (_~ hereto and made a part hereof by reference (hereafter referred to as the "leased premises B"). In the event that any portion of the Leased Premises, A or B, is needed for actual improvements to the Airport, any portion thereof rendered unusable to Tenant shall be released from this lease and the rental payments adjusted accordingly. Pending approval of the underlying lease by the City Council of the City Of Sebastian, it is understood that Tenant shall have access to the leased premises `A' on December I, 2008 for the purposes of configuration and `move-in' functions. It is anticipated that Tenant shall have access to leased premises `B' on January 1, 2009. It is understood that Tenant's start date for rent payments on the leased premises is January 1, 2008. Tenant agrees to `hold harmless' the City Of Sebastian for any/all claims, liability, and damages resulting from activities by Tenant during move-in. 3. TERM OF LEASE. The term of this Lease shall be for a period of fifteen (~5) years commencing January 1, 2009, and will end on the fifteenth (15~') anniversary of such date. The Tenant shall have the option to extend the lease for a period of five (5) years with agreement by the City Of Sebastian. Notice of intent to exercise said option by Tenant must be received by Landlord no later than six (6 months prior to the expiration of the underlying lease. 4. RENT. The parties agree that the rent, payable by the Tenant, during the term of this Lease shall be as follows: (a) Base rent for the leased premises shall be forty-four thousand four hundred dollars ($44,400.00). The parties recognize that the purchasing power of the United States dollar is evidenced by the United States Department of Labor, Bureau of Labor Statistics, Index of Consumer Prices. In January, 2010, the Landlord will compare the most recent price index with the base price index for 2009, and the yearly rent amount shall be increased proportionally based upon changes in the price index, if appropriate, on February 1, 2010. Another such adjustment shall be undertaken for February 1, 2011, and every year thereafter until the expiration date of the lease, including the option period if applicable. In no event, however, shall the rent decrease below the sum of $44,400 in Years 1 through 10, or below $48,000 for Years 11 through 15 and any extension thereafter. _,\ ~l z (b) Time of the essence. The Tenant agrees promptly to perform, comply with and abide by this Lease, and agrees that timely payment is of the very nature and essence hereof. In the event that any rental payment due hereunder shall not be paid within five days of when due, Tenant shall pay Landlord a late payment fee of 5% of the amount of such late Rental Payment. This charge shall be considered additional rent and not interest. (c) Default in rent. If any of said sums of money herein required to be paid by the Tenant to the Landlord shall remain unpaid ten (10} days after written demand by Landlord, then the Landlord shall have the options and privileges as follows: (1) Total acceleration. To accelerate the maturity of the rent installments for the balance of the term. This option shall be exercised by an instrument in writing signed by the Landlord, or its agents, and transmitted to the Tenant notifying him of the intention of the Landlord to declare all unmatured rent installments presently due and payable. (2) Partial acceleration. In lieu of the option in sub-paragraph (1) above, the Landlord may, in like manner, declare as presently due and payable the unpaid rent installments for such a period of years as may be fixed in the Landlord's said notice to the Tenant. The exercise of this option shall not be construed as a splitting of a cause of action, nor shall it alter or affect the obligations of the Tenant to pay rent under the terms of this Lease for the period unaffected by said notice. (3) Other remedies. In addition to the options granted above, the Landlord may exercise any and all other options available to it hereunder or under law, which options may be exercised concurrently or separately with the exercise of the above options. (d) Default in provisions. If the Tenant shall default in the performance of any other term of this Lease (except the payment of rent), the Landlord, or its agent or employee, shall send to the Tenant a written notice of default, specifying the nature of the default, and the Tenant shall, within thirty (30) days after the date of said notice, cure and remedy said default, whereupon this Lease shall continue as before. 3 If the Tenant shall fail to cure and remedy such default within said time, the Landlord shall have the right to declare, by written notice to the Tenant, that the Lease is in default, and to use all remedies available to the Landlord hereunder or under law, including, but not limited to, those remedies, procedures and rights specified in the other paragraphs of this Lease. (e) In addition to the rental amount, the Tenant shall pay Florida sales tax, if applicable. (I) The above rental for the leased premises shall be payable in advance, in quarterly installments, commencing on January 1, 2009. Rental payments for leased premises as described in Section 3 (above), Schedule "A," and Schedule "B" will then be due on a like day of every quarter thereafter during the term of this Lease. 5. IMPROVEMENTS TO TIC PREMISES. The Landlord acknowledges that the Tenant is leasing the premises for the primary purpose of the operation of Tenant's manufacturing business. In order to utilize the leased premises for this purpose, it maybe necessary to use improvements previously constructed upon the ]eased premises. Tenant acknowledges that these improvements are owned by Landlord. (a) The Tenant shall have the right to use the leased premises for any lawful purpose described in Section 6 hereof, and shall have the right to construct improvements upon the leased premises, provided any such improvements do not in any way curtail the use of the airport facilities in their usual operations and provided further that any such improvements are approved, in writing, by the Sebastian City Council prior to commencement of any construction. The Tenant covenants and agrees that all such construction shall be in accordance with the local and state codes, regulations and requirements as well as in accordance with all requirements of the Federal Aviation Administration (FAA) and the Florida Department of Transportation (FDOT). (b) The Tenant shall indemnify, defend and hold the Landlord harmless from any claims, losses, damages or liens arising out of the construction of any such improvements. 4 (c) All improvements and fixtures of every kind now or hereafter erected or placed on the leased premises shall, at the end of the term or earlier termination of this Lease, for any reason, be and become the property of the Landlord and shall be left in good condition and repair, ordinary wear and damage by the elements excepted. In order to confirm sole ownership in the Landlord, the Tenant shall, at Landlord's request, execute any and all documents of transfer which Landlord deems necessary to perfect title to said improvements. The Tenant agrees that all improvements shall, upon the termination of this Lease for any reason, be free and clear of all encumbrances, liens, and title defects of any kind. A fixture shall be defined as an article which was a chattel, but which, by being physically annexed or affixed to the realty by the Tenant and incapable of being removed without structural or functional damage to the realty, becomes a part and parcel of it. Non-fixture personalty owned by the Tenant at the expiration of the term or earlier termination of this Lease, for any reason, shall continue to be owned by Tenant and, at its option, may remove all such personalty, provided the Tenant is not then in default of any covenant or condition of this Lease, otherwise all such property shall remain on the leased premises until the damages suffered by the Landlord from any such default have been ascertained and compensated. Any damage to the leased premises caused by the removal by Tenant of any such personalty shall be repaired by Tenant forthwith at Tenant's expense. 6. USE OF LEASED PREMISES. The Tenant agrees that no use of the leased premises will be conducted in such a manner as to constitute a nuisance or a hazard and that, in connection with the use of the leased premises, the Tenant will observe and comply with all applicable laws, ordinances, orders and regulations prescribed by lawful authorities having jurisdiction over the leased premises. Tenant will abide by the principal Guiding Documents for Sebastian Municipal Airport. Tenant agrees that the leased premises shall be used by the Tenant for the purpose of the operation of a manufacturing business. No other use may be conducted by the Tenant without the express written consent of the Landlord. Such consent may be withheld by the Landlord for any reason. 5 r~~'.)~ (` 1,~/ All aeronautical businesses and activities must be certified and licensed by appropriate agencies, including the FAA, in the appropriate categories of their specific operation. 7. REPAIRS AND ALTERATIONS. The Landlord shall not be obligated to maintain or repair the leased premises or any improvements located thereon or any part thereof during the lease term or any renewal thereof. The Tenant agrees, at its sole cost and expense, to maintain all of the leased premises. The Tenant shall keep the leased premises in a good state of maintenance and repair and keep the leased premises in a clean and orderly condition in accordance with local ordinances, including but not limited to, the Sebastian Land Development Code and all other community standards ordinances. Tt is an express condition of this Lease that the leased premises aze kept in an attractive manner at all times. Upon obtaining the prior written consent of the Landlord, which consent maybe withheld for any reason, the Tenant, at its sole cost and expense, may erect such additional improvements on the leased premises as it deems appropriate and may make such alterations or major renovations to the existing improvements as it deems appropriate, provided, however, that such alterations or renovations shall not disturb the structural integrity of such existing improvements, and provided that the alterations or renovations shall comply with all applicable governmental regulations. The Tenant shall indemnify, defend and hold the Landlord harmless from any claims, losses, damages or liens arising out of or in any way connected with such additions or renovations. 8. UTILITIES. The Tenant shall be responsible for all costs of electricity, lights, water, sewer, heat, phone, Internet, or any other utility or service consumed in connection with the leased premises. Relating to leased premises `A', utility charges shall be assessed to Tenant by Landlord on a prorated basis according to the Tenant square foot usage. Relating to leased premises `B', utility charges shall be charged by the appropriate agency to Tenant by separate meter. The Landlord shall have no liability for the failure to procure, or the interruption of, any such services or utilities. 9. SIGNS. The Tenant shall have the right to erect and maintain such sign or signs on the premises as may be permitted by applicable law; provided, however, the Landlord must approve any such signs in writing prior to erection. The Landlord may (~<j I impose any reasonable restrictions as, in the sole discretion of the Landlord, are deemed necessary. 10. TAXES. The Tenant shall pay during the Lease term all ad valorem taxes, assessments or any other governmental chazge levied or assessed against the leased premises (including the Tenant's leasehold by the appropriate governmental authorities), together with all ad valorem taxes assessment or other governmental chazge levied against any stock of merchandise, furniture, furnishings, equipment and other property located in, or upon the leased premises. All shall be paid by the Tenant on a timely basis and receipts therefore shall be provided to the Landlord upon request. 11. LIABILITY INSURANCE. The Tenant shall provide and keep in force, at its own expense, during the term of this Lease, comprehensive public liability insurance coverage with respect to the leased premises and operations thereupon. The insurance coverage to be maintained by the Tenant shall contain limits of. (a)Bodily Injury and Property Damage - $1,000,000 Combined Single Limits (b)Products and Completed Qperations Liability (if applicable) - $1,000,000 Combined Single Limit. (c) Aircraft Liability - $1,000,000 Bodily Injury and Property Damage Combined Single Limit. (d)Insurance in the full replacement value of all Personal Property, Equipment, and Trade Fixtures on the Leased Premises. (e) Ground and Hangar Keeper's Liability -adequate coverage for any single aircraft in storage or caze and a limit covering the total value of those aircraft but not less than .$100,000 for damage to any one (1) aircraft and $500,000 per each occurrence. (~ Chemical Liability Insurance (if applicable) -minimum of $400,000 Combined Single Limit. (g)For aircraft Fueling Operations - a Comprehensive Aircraft Liability policy indicating that the coverage includes owner's fueling/defueling operations with fueling equipment owned and/or operated by the Tenant. The minimum shall be $1,000,000 Combined Single Limit for Bodily Injury and Property Damage. (h) Automobile Liability Insurance: (1) Each service provider operating one or more motor vehicles on the City's premises in the performance of their work shall purchase and maintain Automobile Liability Insurance with policy limits of not less than $300,000 Combined Single Limit. (2) Service Providers having unescorted access to the AOA at the Sebastian Municipal Airport shall purchase and maintain Automobile Liability Insurance with policy limits of not less than $1,000,000 Combined Single Limit. ~ ~~ ~~_.:~ (i) Builder's Risk -during any construction on a leased site, the service provider shall furnish Builder's Risk Insurance insuring the contract price, with the City listed as the named insured. Any deductibles under the builder's risk policy shall be the responsibility of the service provider. (j) Workers' Compensation Insurance: as required by Florida Statutes. Tenant agrees that, should there be an expansion of the use or occupancy beyond the primary use set forth herein, Landlord may alter the minimum amounts stated in the preceding sentence during the term of this Lease by resolution of the City Of Sebastian City Council. Landlord will give written notice of any such change to Tenant, and such changes will take effect immediately. Any policy or policies of insurance required pursuant to this Lease shall be issued by one or more insurance companies authorized to engage in business in the State of Florida. The Tenant shall supply the Landlord with a certificate of such insurance with evidence of the payment of the premium thereon. All policies described in this Paragraph shall contain a clause preventing cancellation of any coverage before thirty (30) days written notice to the Landlord and shall name the Landlord as an additional insured. Upon the request of the Landlord, the Tenant shall provide copies of said policies to the Landlord. 12. PROPERTY, FIRE AND EXTENDED COVERAGE INSI,JRANCE. The Tenant shall, at its sole cost and expense, procure and keep in effect such standard policies of property casualty, fire and extended coverage insurance as the Landlord deems necessary and appropriate. Upon request, the Tenant shall provide to the Landlord a certificate of such insurance with evidence of the payment of the premium therefore. The Landlord shall have no obligation to keep the leased premises contents insured nor shall the Landlord have any obligation to insure any personal property used in connection with the leased premises. Any policy or policies of insurance required pursuant to this Lease shall be issued by one or more insurance companies authorized to engage in business in the State of Florida. All policies described in this Paragraph shall contain a clause preventing cancellation of any coverage before thirty (30) days written notice to the Landlord and shall name the Landlord as an additional insured. Upon the request of the Landlord, the Tenant shall provide copies of said policies to the Landlord. In the event that the Tenant's use and occupancy of the premises causes any increase in the premium for any property casualty or fire insurance maintained by Landlord on the Leased Premises or any portion 1w~ 8 thereof, Tenant shall reimburse Landlord for the amount of said increase within thirty days of notice of the same. 13. DAMAGE OR DESTRUCTION OF IMPROVEMENTS BY FIRE OR OTHER CASUALTY. In the event the leased premises are destroyed or damaged by fire or other casualty, the Tenant, at its option, agrees that it will cause said premises and/or other improvements to be replaced or said damage to be repaired as rapidly as practicable. The Landlord may abate the Tenant's rent for the period of time more than 80% of the principal building, if any, is unusable. In the event the Tenant elects to repair and/or replace the leased premises, the Landlord shall have no claims against any insurance proceeds paid to the Tenant on account of such damage and/or destruction nor shall the Landlord have any responsibility or obligation to make any expenditures toward the repair and/or replacement of the building and other improvements on the leased premises. (a) If the Tenant, under its option, elects not to repair the leased premises, either party may choose to cancel the Lease; if either party elects to cancel the Lease, the Landlord shall be entitled to that portion of the insurance proceeds paid as a result of such damage and/or destruction to the building and other improvements on the leased premises, the Tenant shall be entitled to the remainder, if any, of the insurance proceeds. (b) In the event the Tenant, under its option, elects not to repair and/or replace the leased premises, the Tenant shall, at its sole expense, remove all remaining portions of the leased premises. 14. INDEMNIFICATION. The Tenant agrees hereby to defend, indemnify and save the Landlord harmless from any and all actions, demands, liabilities, claims, losses or litigation arising out of or connected with the Tenant's occupancy or use of the leased premises and the use of the leased premises by tenant's agents, employees, and invitees, including all attorney's fees incurred by the Landlord in defending any such claims. This Paragraph shall survive the termination or cancellation of the Lease. 15. ENVIRONMENTAL MATTERS. The Tenant hereby agrees to indemnify, defend and hold the Landlord harmless from and against any and all claims, lawsuits, losses, liabilities, damages, and expenses (including, without limitation, clean-up 9 ~ ~ `~ costs and reasonable attorney's fees) resulting directly or indirectly from, out of or by reason of any hazardous or toxic materials, substances, pollutants, contaminants, petroleum products, hydrocarbons or wastes being located on the property and being caused by the Tenant, sub-Tenants, agents, assigns, or users of leased premises or fuel farm. The presence of said substance or materials on the leased premises, or fuel farm, shall raise the presumption that Tenant is the cause of such presence. This Paragraph shall survive the termination, or cancellation, of the Lease. 16. PREVENTION OF USE OF THE PREMISES. If, after the effective date of this Lease, the Tenant is precluded or prevented from using the leased premises for those primary purposes identified in Section 6 of this Lease, by reason of any zoning law, ordinance or regulation of any authority having jurisdiction over the leased premises and such prohibition shall continue for a period in excess of ninety (90) consecutive days, the Landlord may allow the Tenant to terminate this Lease. The right to terminate this Lease must be granted by the Landlord, in writing, before the Tenant shall be released from its obligations under the terms of this Lease. 17. LANDING FEES. Landing or any other type of use of runway fees being charged by Tenant are specifically prohibited by this Agreement, so long as all other tenants of the property owned by the Landlord located at the Airport are prohibited from charging any such fees, as the use of the Airport is for the general public. Nothing in this Lease shall act to prohibit the Landlord from charging such fees as it deems necessary or desirous. 18. GOVERNMENT SEIZURE. In the event the United States Government, or any agency or subdivision thereof, at any time during the term of this Lease takes over the operation or use of the airfield and/or Airport which results in the Tenant being unable to operate under the terms of the Lease, then the Lease may be extended upon mutual agreement of the Tenant and the Landlord for an additional period equal to the time the Tenant has been deprived of the value of this Lease. If the duration of the seizure exceeds ninety (90) consecutive days, the Landlord, at the Landlord's sole discretion, may terminate this Lease. / to / ~~~ ~_.~ 19. EMINENT DOMAIN. If all or any part of the leased premises shall be taken under a power of eminent domain, the compensation or proceeds awarded for the taking of the leased premises shall belong to the Landlord. If the taking is to such an extent that it is impracticable for the Tenant to continue the operation of its business on the leased premises, the Lease, at the option of the Landlord, may be terminated. Nothing herein shall prevent the Landlord and/or the Tenant from seeking any and all damages sustained from the condemning authority by reason of the exercise of the power of eminent domain. 20. DEFAULT BY TENANT. As used in this Lease, the term, "event of default", shall mean any of the following: (a) The failure of the Tenant to fulfill any duty or obligation imposed on the Tenant by the Lease; (b) The appointment of a receiver or the entry of an order declaring the Tenant bankrupt or the assignment by the Tenant for the benefit of creditors or the participation by the Tenant in any other insolvency proceeding; (c) The Tenant's failure to pay any consideration, to the Landlord, required by this Lease; (d) The taking of the leasehold interest of the Tenant hereunder pursuant to an execution on ajudgment; (e) The Tenant's abandonment of any substantial portion of the leased premises. "Abandonment" shall be determined by the Landlord; (f) The Tenant or any guarantor of Tenant's obligations hereunder, filing a petition for bankruptcy or being adjudged bankrupt, insolvent, under any applicable federal or state bankruptcy or insolvency law, or admit that it cannot meet its financial obligations as they become due, or a receiver or trustee shall be appointed for all or substantially all of the assets of Tenant or any Tenant's obligations hereunder; (g) The Tenant or any guarantor of the Tenant's obligations hereunder shall make a transfer in fraud of creditors or shall make an assignment for the benefit of creditors; -__~ 11 C ~~ (h) The Tenant shall do or permit to be done any act which results in a lien being filed against the leased premises or the property which is not released of record within thirty (30) days of the date it is initially recorded in the Public Records of Indian River County. Each party covenants and agrees-that it has no power to incur any indebtedness giving a right to a lien of any kind or character upon the right, title and interest of the other party in and to the property covered by this Lease, and that no third person shall ever be entitled to any lien, directly or indirectly, derived through or under the other party, or its agents or servants, or on account of any act of omission of said other party. All persons contracting with the Tenant or furnishing materials or labor to said Tenant, or to its agents or servants, as well as all persons whomsoever, shall be bound by this provision of this Lease. Should any such lien be filed, the Tenant shall discharge the same by payment or by filing a bond, or otherwise, as permitted by law. The Tenant shall not be deemed to be the agent of the Landlord so as to confer upon a laborer bestowing labor upon the leased premises a mechanic's lien upon the Landlord's estate under the provisions of the Florida Statutes, or any subsequent revisions thereof; (i) The liquidation, termination, death or dissolution of the Tenant or all Guarantors of the Tenant's obligations hereunder; (j) The Tenant fails for more than one hundred twenty (l20) consecutive days to continuously conduct and carry on in good faith the type of business for which the leased premises are leased; (k) The Tenant shall be in default of any other term, provision or covenant of this Lease, other than those specified in subparts a through j above. Upon the happening of any "event of default", the Landlord may, at its option, terminate this Lease and expel the Tenant therefrom without prejudice to any. other remedy; provided, however, that before the exercise of such option for failure to pay rent or failure to perform any condition imposed herein upon the Tenant, the Landlord shall give written notice of such event of default to the Tenant, which thereafter shall have thirty (30) days from the date notice is sent by the Landlord within which to remedy or correct such default, unless such default is the failure to pay rent, in which case the Tenant shall have / ~.\ `' ; ` ~ 12 ten (10) days from the date notice is sent by the Landlord within which to remedy such default by paying all rent due. 21. IDENTITY OF INTEREST. The execution of this Lease or the performance of any act pursuant to the provisions hereof shall not be deemed or construed to have the effect of creating between the Landlord and the Tenant the relationship of principal and agent or of a partnership or of a joint venture and the relationship between them shall be and remain only that of landlord and tenant. 22. NOTICES AND REPORTS. Any notice, report, statement, approval, consent, designation, demand or request to be given, and any option or election to be exercised by a party under the provisions of this Lease, shall be effective only when made in writing and delivered (or mailed by registered or certified mail with postage prepaid) to the other party at the address given below: Landlord: City of Sebastian Attn: City Manager 1225 Main Street Sebastian, FL 32958 Tenant: LoPresti Speed Merchants, Inc. 202 Airport Drive East Sebastian, FL 32958 Attn: Curtis LoPresti provided, however, that either party may designate a different representative or address from time to time by giving to the other party notice in writing of the change. Rental payments to the Landlord shall be made by the Tenant at an address to be furnished to the Tenant. 23. RIGHT TO INSPECT. The Landlord may enter the leased premises upon reasonable notice: (a) To inspect or protect the leased premises or any improvement to a property location thereon; (b) To determine whether the Tenant is complying with the applicable laws, orders or regulations of any lawful authority having jurisdiction over the leased premises or any business conducted therein; or 13 /._ ~ 3~ ~ `,~/ (c) To exhibit the leased premises to any prospective purchaser or tenant during the final sixty (60) days of the lease term, or at any time after either party has notified the other that the Lease will be terminated for any reason. No authorized entry by the Landlord shall constitute an eviction of the Tenant or a deprivation of its rights or alter the obligation of the Landlord or create any right in the Landlord adverse to the interest of the Tenant hereunder. 24. REMOVAL OF TRADE FLYTiIRES, SIGNS AND PERSONAL PROPERTY. At the expiration of the Lease, the Tenant agrees to immediately surrender possession of the premises and all facilities thereon. Tenant shall have the right to remove all personal property owned by the Tenant provided any damages in removal are repaired by the Tenant at Tenant's sole cost. Any personal property not removed within thirty (30) days shall be presumed abandoned. The cost of removing any such abandoned property that the City deems unusable shall be indemnified to Landlord by Tenant. 25. HEIGHT/HAZARD RESTRICTIONS. The Tenant expressly agrees for itself, its successors and assigns, to restrict the height of structures and other obstructions on the leased premises to such a height so as to comply with all Federal Aviation Regulations, State laws and local ordinances, rules and regulations now existing and hereinafter promulgated. The Tenant expressly agrees for itself, its successors and assigns, to prevent any use of the leased premises which would interfere with or adversely affect the operation or maintenance of the Airport or otherwise constitute an airport hazard. The Tenant covenants and acknowledges that the use of the leased premises as proposed by the Tenant does not interfere with or adversely affect the operation or maintenance of the Airport or otherwise constitute an Airport hazard. The Landlord reserves unto itself, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the leased premises, together with the right to cause in such airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation or flight in the airspace, and for use of said airspace for landing on, taking off from, or operating on the Airport. 26. NONDISCRIMINATION. The Tenant for itself, its personal representatives, successors in interest and assigns, as part of the consideration hereof, C~ t~ does hereby covenant and agree as a covenant running with the land that (i) no person on the grounds of religion, gender, marital status, race, color, age, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subject to discrimination in the use of the Tenant's facilities; (ii) that in the construction of any improvements on, over or under the leased premises and the furnishing of services thereon, no person on the grounds of religion, gender, marital status, race, color, age, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; (iii) that the Tenant shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964. In the event of the breach of any of the above non- discrimination covenants, the Landlord shall promptly notify the Tenant, in writing, of such breach and the Tenant shall immediately commence curative action. Such action by the Tenant shall be diligently pursued to its conclusion, and if the Tenant shall then fail to commence or diligently pursue action to cure said breach, the Landlord shall then have the right to terminate this Lease and to re-enter and repossess said land and improvements thereon. 27. ENTIRE AGREEMENT. This Lease contains all of the understandings by and between the parties hereto relative to the leasing of the premises herein described, and all prior agreements relative thereto have been merged herein or are voided by this instrument, which may be amended, modified, altered, changed, revoked or rescinded in whole or in part only by an instrument in writing signed by each of the parties hereto. 28. ASSIGNMENT AND SUBLETTING. The Tenant shall not assign this Lease or sublet the leased premises or any portion thereof, or otherwise transfer any right or interest hereunder without the prior written consent of the Landlord. If the Landlord consents, in writing, to the assignment, subletting or other transfer of any right or interest hereunder by the Tenant, such approval shall be limited to the particular instance specified in the written consent and the Tenant shall not be relieved of any duty, obligation or liability under the provisions of its Lease. IS ( ~--~ \, J~ 29. BINDING EFFECT. The terms and provisions of this Lease shall be binding on the parties hereto and their respective heirs, successors, assigns and personal representatives, and the terms of any Addendum attached hereto are incorporated herein. 30. APPLICABLE LAW/VENUE. In the event of litigation arising out of this writing, venue shall be in Indian River County, Florida and the terms of this Lease shall be construed and enforced according to the laws of the State of Florida except to the extent provided by Federal law. THE PARTIES HEREBY WAIVE THE RIGHT OF TRIAL BY .TiJRY OF ANY ISSUES SO TRIABLE. 31. ATTORNEYS FEES. In any action arising out of the enforcement of this writing, the prevailing party shall be entitled to an award of reasonable attorneys fees and costs, both at trial and all appellate levels, based upon the prevailing rates of private attorneys in Indian River County, Florida. 32. RECORDING. In no event shall the Lease or a copy thereof be recorded in the Public Records of Indian River County, Florida. 33. MISCELLANEOUS. The Landlord shall have the option, without waiving or impairing any of its rights hereunder, to pay any sum or perform any act required of the Tenant, and the amount of any such payment and the value of any such performance, together with interest thereon, shall be secured by this Lease, and shall be promptly due and payable to the Landlord. All delinquent payments to the Landlord shall bear interest at the rate of 18% per year from date the payments are due to the date of payment. Said interest shall be calculated on a daily basis and shall be due and payable when billed. In the event of the Tenant's breach of any of the provisions of this Lease, the Landlord shall thereupon have a lien upon all revenues, income, rents, earnings and profits from the leased premises as additional security to the Landlord for the Tenant's faithful performance of each of the terms and provisions hereof, and to secure payment of all sums owing to the Landlord hereunder. Such liens shall be superior in dignity to the rights of the Tenant and any of its creditors or assignees or any trustee or receiver appointed for the Tenant's property, or any other person claiming under the Tenant. Upon the Landlord's termination of the Tenant's rights under this Lease by reason of the Tenant's default, all J .1J11 16 i\ ,~~_(i l such revenues, income, rents, earnings and profits derived or accruing from the leased premises from the date of such termination by the Landlord shall constitute the property of the Landlord, and the same is hereby declared to be a trust fund for the exclusive benefit of the Landlord and shall not constitute any asset of the Tenant or any trustee or receiver appointed for the Tenant's property. The provisions of this paragraph shall be effective without the Landlord's re-entry upon the leased premises or repossession thereof, and without any judicial determination that the Tenant's interest under said lease has been terminated. The Tenant acknowledges that the Landlord is required by law to operate under an Airport Master Plan and the Tenant covenants that he will use the leased premises consistent with the Airport Master Plan. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. ATTEST: CITY OF SEBASTIAN A Municipal Corporation By: Sally Maio, City Clerk Al Minner, City Manager Approved as to Fonn and Legality for Reliance by the City of Sebastian only: Rich Stringer, City Attorney LoPresti Speed Merchants, Inc. Corporate Seal: By: Curtis LoPresti, President t~ (351 Schedule "A" Lease Agreement between the City Of Sebastian and LoPresti Speed Merchants, Inc. 1. Leased premises shall include a `wing' at the Sebastian Municipal Airport Administration Building currently known as the "Public Works Wing." This space is approximately 1700 square feet, more or less. 2. A 10' X 10' office adjoining the lobby area of the administration building is included. Total leased space is 1800 square feet. 2. Premises are furnished, as is. Prior to occupancy, the Landlord and Tenant will exchange an inventory of the furnishings that will include the condition of said fumishings. 3. Utility charges shall be prorated according to square foot usage. 4. Common Area Maintenance (CAM) shall be at no charge to the Tenant. 5. Lobby/reception area shall be considered a common/shazed space with other building tenants. 6. Tenant shall have priority use of a locked Conference Roorn/Library adjacent to the lobby of the administration building with appropriate notice to the Landlord. 3~ Schedule "B" Lease Agreement between the City Of Sebastian and LoPresti Speed Merchants, Inc. Concerning Hanger Operations 1. The City Of Sebastian shall lease to LoPresti Speed Merchants, Inc. a 15,000 square foot hanger located at the Sebastian Municipal Airport, adjacent to the Airport Administration Building. It is understood that the hanger facility shall be used in conjunction with the manufacturing operations of LoPresti Aviation interests. The City Of Sebastian retains ownership of the hanger facility throughout the term of the lease. 2. The lease rate shall be at a rate as describe in section 4 ofthe lease agreement 3. It is understood that LoPresti will provide adequate insurance on all aspects relating to its manufacturing/hanger operations. In addition, LoPresti will provide adequate liability and property damage insurance coverage on the city- owned hanger facility. LoPresti Speed Merchants, Inc. will hold harmless the City Of Sebastian of any claim or liability relating to LoPresti's hanger operation. 3~ ECONOMIC DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SEBASTIAN AND LOPRESTI SPEED MERCHANTS. INC THIS AGREEMENT, made and entered into this day of March, 2008, by and between the CITY OF SEBASTIAN, (hereinafter referred to as the City) a municipal corporation existing under the laws of the State of Florida, and LoPresti Speed Merchants, Inc. (hereinafter referred to as LoPresti). The term of this agreement shall be for ten (10) years; from January I, 2009 through December 31, 2019. WITNESSETH: WHEREAS, the City is the owner of certain property located in the County of Indian River County, Florida; and WHEREAS, the certain property is being used for the operation of the Sebastian Municipal Airport (hereinafter referred to as the "Airport"); and WHEREAS, LoPresti has agreed to enter into a lease with City for certain property available at said airport For those activities consistent with or in support of an aviation manufacturing facility; and WF~REAS, City recognizes the designation of aviation as a `tazgeted industry' to attract jobs and economic development; and NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the receipt and sufficiency of which are hereby acknowledged, the parties have agreed as follows: I. LoPresti will move its existing business operation to the Sebastian Municipal Airport. 2. LoPresti will move, and/or establish, forty-five (45) jobs at its operation at the Sebastian Municipal Airport within nine (9) months of occupancy. That number shall be maintained as a minimum for the duration of their tenancy at Sebastian Municipal Airport. 3. LoPresti agrees to establish the U.S. East Coast sales/marketing/distribution center for the Fury aircraft at the Sebastian Municipal Airport. 4. The City of Sebastian shall rebate to LoPresti eight thousand four hundred dollars ($8,400) per yeaz if the minimum number ofjobs are maintained at LoPresti throughout the year. 5. It is agreed that acts of God or unusual events will nullify this agreement. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. ATTEST: Sally Maio, City Clerk Approved as to Form and Legality for Reliance by the City Of Sebastian only: Rich Stringer, City Attorney CITY OF SEBASTIAN A Municipal Corporation Bv: AI Minner, City Manager LOPRESTI SPEED MERCHANTS, INC. Curtis LoPresti, President ~-~ 1 arc a $EBA,sTtgN - " ;~ HOME OF PELICAN ISLMlD City of Sebastian 1225 Main Street Sebastian, Florida 32958 Subject: Citizens Budget Review Advisory Agenda No. ~~, (~.3 ~, Board Department Origin: City Clerk's Office Approved for b ttal by: Date Submitted: 3/4108 For Agenda of: 3/12/08 City Mana City Attorney: ~hibits: Sections 2-221 through 2-223 Code of Ordinances SUMMARY STATEMENT In accordance with Section 2-221 - 2-223 of the Code, the City Council, at the first regular meeting after each election, shall appoint a Citizens' Budget Review Advisory Board composed of seven members. Section 2-223 in part states: "Each City Council member shall appoint one member of the initial board, and each initial board member's term shall end at the same time as the term of the council member making the appointment......Thereafterecch newly elected or re-elected Cify Counci! member shalt, at the first regular meeting after taking office, appoint one board member, who shall serve for a two year term." Mayor Coy's appointee is Adrina Davis who will serve until the end of Coy's term in November 2009. Vice Mayor Neglia's appointee is Dwight Trout who will serve until the end of Neglia's term in November 2008. Council Member Paternoster's appointee is Thomas Burke who will serve until the end of Paternoster's term in November 2008. Council Member Simchick's appointee John Oakes has resigned and Ms. Simchick will have to appoint another member who will serve until the end of Simchick's term in November 2009. Mr. Wolff's appointee is Brad White who will serve until the end of Wolff's term in November 2009. Because the City Council terms were extended to November by moving the election to November, there is an assumption that the individual appointees' terms will continue until the Council member terms expire. The two newly elected officials will each appoint a representative following the November election. ,I 2 ~~~~ ~. ~~~ Section 2-223 further reads: "The City Council shall appoint two additional members, I who will serve until the next election....... The City Council, at the first regular meeting after each election, shall appoint two additional board members, who shall serve for one-year terms." In April 2007 Ed Herlihy and Todd Klitinic responded to advertisements and were appointed as the at-large members for one year with terms to expire in April 2008. Charles Cardinale was appointed alternate. They reviewed and made recommendations on the current 2007/2008 FY budget. Charles Cardinale submitted a late application and was appointed alternate to this Board by Council under a separate provision of the Code which allows up to two alternates for any board or committee. There was a motion in April 2007 to appoint him alternate for one year. Since this code provision was written when elections were in March and there was no March election this year, we need to make an adjustment for the at-large positions as we transition to November elections. RECOMMENDED ACTION 1) We are seeking direction from Council as to the following: a) Direct staff to advertise for new at-large members and alternate (if council wishes to retain this position) at this time since the at-large terms by code are for one year and alternate by motion was for one year and all are set to expire in April 2008; or b) Permit the two at-large members and alternate (if council wishes to retain this position) to continue their terms to November 2008, which would allow them to review the 2008/2009 FY budget and then advertise for new at-large members in November following the election for review of the 2009/2010 budget. 2) Request Ms. Simchick to appoint a replacement for John Oakes within the next couple of months with term to expire in November 2009. DIVISION 4. BUDGET REVIEW ADVISORY BOARD Sec. 2-221. Established. There is hereby established a citizens' be composed of seven residents of the city. (Ord. No. 0-98-14, § 1, 10-14-98) budget review advisory board. The board shall Sec. 2-222. Responsibilities. The board shall assist in the city's budget review process and shall make recommendations to the city council prior to the first budget hearing for each fiscal year. In order to effectively advise the city council, the board shall become familiar with the city's budget process and shall review the city's proposed budget and all reports submitted by city staff concerning the proposed budget. (Ord. No. 0-98-14, § 2, 10-14-98) Sec. 2-223. Terms of members. The city manager or his designee shall be an ex officio member of the board and shall provide the board with all financial documents and materials which reasonably relate to the budget advisory responsibilities of the board. Each city council member shall appoint one member of the initial board, and each initial member's term shall end at the same time as the term of the council member making the appointment. The city council shall appoint two additional members, who will serve until the next election. Thereafter, each newly elected or re- elected city council member shall, at the first regular meeting after taking office, appoint one board member, who shall serve for atwo-year term. The city council, at the first regular meeting after each election, shall appoint two additional board members, who shall serve for one-year terms. (Ord. No. 0-98-14, § 3, 10-14-98) Secs. 2-224--2-230. Reserved. (~'~-~~