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HomeMy WebLinkAbout05282008Cf1Y QF HpME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL MINUTES REGULAR MEETING WEDNESDAY, MAY 28, 2008 - 7:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA Mayor Coy called the Regular Meeting to order at 7:00 p.m. 2. The Pledge of Allegiance was led by Council Member Paternoster. 3. There was a moment of silence. 4. READING OF CIVILITY PLEDGE BY COUNCIL MEMBER PATERNOSTER We will be respectful of one another even when we disagree. We will direct all comments to the issues. We will avoid personal attacks. 5. ROLL CALL City 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 Building Director, Wayne Eseltine City Engineer, David Fisher Police Chief, Jim Davis Police Lieutenant, Greg Witt Regular City Council May 28, 2008 Page Two 6. AGENDA MODIFICATIONS Modifications and additions require unanimous vote of City Council members None. 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. 08.066 A. Proclamation -Elder Law Month 1 Mayor Coy read the proclamation, however, there was no one in attendance to receive it. 08.067 B. Certificate of Appreciation - Andy Mandell, Mr. Diabetes, Executive Director of the Defeat Diabetes Foundation - 10,000 Mile Awareness Walk Mayor Coy presented the certificate to Andy Mandell, who presented a hat and information to the Mayor and gave a brief report on his Diabetes walk, and website defeatdiabetes.org. 08.001 C. Certificate of Appreciation to Jeff Kagan for Parks & Recreation Advisory Committee Service Mayor Coy presented a certificate to Jeff Kagan and thanked him for his service. Brief Announcements Mr. Paternoster announced that the Tourism Development Council had voted on bids for grants from various local agencies and only the Sebastian Historical Society was denied their bid for $5,000. He said he rallied for them and the requests for grants will now go to the Indian River County Commission with a request to find the money for them. Mayor Coy stated that Piper had announced today that they will stay in Vero Beach and that Governor Crist was in attendance. Ms. Simchick suggested residents send letters to the Commission on behalf of the Historical Society for their funding. Mr. Wolff congratulated all graduating seniors in Indian River County and reported on his attendance at the Scholarship Awards in Sebastian where $1.5 million in scholarships were given by various organizations and individuals. He also talked about Dollars for Scholars and praised those who raise and donate funding for all scholarships. 2 Regular City Council Meeting May 28, 2008 Page Three 8. ITEMS NOT COMPLETED AT THE MAY 14, 2008 MEETING 08.031 A. Resolution R-08-04 -Florida Dept. of Transportation Supplemental Joint 3-12 Participation Agreement for Hangar Construction (Airport Transmittal, FDOT Letter, Agreement, R-08-04) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PUBLIC TRANSPORTATON SUPPLEMENTAL JOINT PARTICIPATION AGREEMENT WITH THE FDOT TO PROVIDE FUNDING TO CONSTRUCT HANGARS; PROVIDING FOR CONFLICT; PROVIDING FOR EFFECTIVE DATE. The Airport Director stated this resolution is to accommodate a grant name change from "t-hangars" to "hangars". Damien Gilliams, 1623 US 1, asked why the lease was not re-advertised like it was previously when J-Med bid on it, cited concerns expressed in a 4/2/08 FDOT letter and asked for the City Attorney's opinion. The City Manager responded, as requested by Mr. Paternoster, that staff had responded to FDOT concerns and they have cleared the process because the City did go out twice before, had an appraisal done and the enterprise was aviation related. The City Manager, in response to Mr. Paternoster, said the existing Administration Building is receiving nothing in rent at this time, has high maintenance costs, and the new tenant will help pay down debt and pay a portion of the utilities. He said the grant money in the amount of $1.425 million will not come from City coffers but mostly from federal AV gas taxes. He said the remaining $285,000 City share will be financed and offset by the lease payment. He said the airport must begin to work on its own and operate autonomously. Mr. Neglia said this is the direction in which we should be moving and hoped the City will have a long time relationship with LoPresti Aviation. Mayor Coy commended the City Manager and Airport Director for seeking this grant and said if the City does not take it someone else will. Ms. Simchick responded, for the benefit of the speaker, that we did not do an RFP because we are getting fair market value based on the appraisal prepared by Mr. Preuss. Mr. Wolff agreed with Council but asked, citing that jobs are a pivotal part of this agreement, how negotiations are going between LoPresti and Piper. The City Manager stated staff is not privy to negotiations between them but advised if LoPresti cannot certify 45 new jobs they will pay the full bill. Mr. Wolff inquired about progress on production of the Fury and how negotiations were going with New Mexico and the City Manager said LoPresti is surfing the market for the best location. Regular City Council Meeting May 28, 2008 Page Four MOTION by Mr. Neglia and SECOND by Ms. Simchick to approve Resolution No. R-08-04 authorizing the execution of the supplemental Joint Participation Agreement between the City of Sebastian and FDOT, titled "construct hangars." Roll call vote on the motion was as follows: Ayes: All Nays: None Passed 5-0 08.031 B. LPA Hangar Professional Services Contract (Airport Transmittal, Scope, Estimate, 13-22 Site Plan, Elevations, Floor Plan) The Airport Director said this item will approve LPA Group to provide services to get the specs ready in an amount not to exceed $46,852, and cited the timeline with construction completed by December 31, 2008. The City Attorney clarified that this comes under the existing general services engineering contract with the LPA Group and the purchase order will say we authorize the work to be done in exhibit A at the compensation listed on exhibit B and these are the only exhibits pertinent to the purchase order. Damien Gilliams, 1623 US 1, said the City was giving away the farm by taxpayers paying for professionals to prepare site plans and asked why LoPresti can't do it and what is the City's guarantee if they go bankrupt. Mayor Coy gave him a first warning stating his concerns have already been explained to him. Mr. Gilliams told her not to interrupt and Mayor Coy gave him a second warning. Cindy Falco-DiCorrado, Louisiana Avenue, Sebastian, asked if the new hires have to be Sebastian people and the City Manager said the requirement is just 45 people. Ms. Falco- DiCorrado said perhaps LoPresti can think about hiring Sebastian people and gave kudos to everyone for this agreement. Mr. Neglia said LoPresti will have to hire 18-20 more and hoped they will be locals. Richard Gillmor, Kroegel Avenue, Sebastian, cited page 16, task 2-3 and was concerned because it sounds like taxpayers are going to pay for furniture, equipment, signs and landscaping. The City Attorney said this is standard design build language to establish design guidelines and ultimately the cost allowance for furniture will be zero, that we considered these factors so we can tell them we will not provide them. Ms. Simchick said on page 22, exhibit E, the language is inconsistent and she had suggested that the City Attorney amend the language to say we are only supplying a shell. The City Attorney advised that exhibit E is not a part of this but simply a conceptual plan that was prepared to show how LoPresti will lay out the interior. Ms. Simchick requested that all 4 Regular City Council Meeting May 28, 2008 Page Five contracts state "per tenant" with regard to interior improvements and change exhibit A to state simply "15,000 SF hangar building". In response to Mr. Wolff about fixtures, the City Manager said he had sent a memo today by a-mail (see attached) explaining these concerns. Bill Bodon, Easy Street, Sebastian, said this will lay a foundation at the airport and will be good for Sebastian. The Airport Director, in response to Mr. Paternoster, said the Administration Building has been without a tenant except Public Works since October 2006, and Mr. Paternoster noted people have not been knocking down doors, LoPresti will be the seed, and he is ready to support this. Mr. Wolff expressed concern for the $47,000 cost for LPA Group to say "you come back with a design to build a shed" and thought it an incredible amount of money. The Airport Director cited some of LPA's other tasks such as site design and permitting from other agencies such as St. Johns River Water Management District. Mr. Wolff expressed concern for other private individuals who might want to come into the airport and have to pay this amount upfront. As requested, the Airport Director cited the hourly costs for LPA to be from $60 to $124 per hour depending on the task. Ms. Simchick said this is not a time sensitive issue and said she must have clarity in the language before she can support it, her specific concern being exhibit E and again she requested that there be language that states any interior improvements are to be done by the tenant. Mr. Neglia said he would like to the see the language changed and come back to the next meeting. Mayor Coy said she would have no problem changing that language but disagreed we are building a shed, stating this is a $1.7 million project and citing an example of design costs for a sign currently under consideration by the VFW. The City Manager said LPA will create site plans, do governmental agency permitting, and construction oversight and agreed the cost is outrageous, but to start the RFP process for professional services again will take 3-4 months longer and would be costlier. He stated that only pages 15-18 (actually 14-18) are presented for Council consideration tonight and pages 19-22 are schematics that LPA did for staff to show Council where we are headed. He said if approved tonight it will go to P & Z for site plan approval but the site plan will not show interior improvements, and again Ms. Simchick asked to put in that all interior improvements are to be made by the tenant. The City Attorney said exhibit E is not what Council is approving tonight Regular City Council Meeting May 28, 2008 Page Six Mr. Wolff expressed concern for task 1-2 interior space improvements and the City Manager responded it is within the scope. Ms. Simchick asked the Building Director to come to the podium and asked him questions about requirements for hangars. The Building Director said the tenant's intended use would drive how it is permitted, however he did say that storage of hazardous materials would require some storage or separate room with an one-hour firewall, and that typically in this type of use, planes would not be stored inside but rather worked on and stored outside. He said you would typically take a statement from a tenant about the intended use and then go from there. Ms. Simchick said the $2 per SF market value is not fair if this is to be industrial use and it is prudent to make sure the language protects taxpayers so they are not responsible for costs. Mr. Wolff said he understood what she was saying, that we applied for a grant for a hangar and the appraisal comps were for hangars and not manufacturing facilities and we are not within the specs of the grant. Ms. Simchick said we promised a 15,000 SF metal frame building and the appraisal was done in that manner, Mr. Preuss was not given the diagram in exhibit E, said she would not move forward like this and was unsure if FDOT is aware of this. The City Manager responded that the specs were not provided to Mr. Preuss because they were not done at the time they contracted with him for the appraisal, that FDOT saw the conceptual drawings in the packet and they are okay with it, that we are not at the point that we know what will go in the building, and advised Council that they will see the contract for construction before it is approved. Mr. Paternoster asked the Airport Director to give Council a timeline for the project. The City Manager cited the location of the appraisal comps as to cost and square footage. Ms. Simchick requested to mark exhibit E "per tenant". Mr. Neglia asked if we are going to go over the grant amount, and the City Manager responded we haven't bid yet and there is a chance you can build just a building and go over budget. Mr. Paternoster again asked for a timeline and the Airport Director concurred we are pressed for time. Mr. Wolff noted the timeline is on the transmittal. MOTION by Ms. Simchick and SECOND by Mr. Wolff to approve the purchase order for planning services by LPA Group with the modification on project description to read 15,000 SF hangar shell with no more improvements beyond basic necessities: bathroom, mechanical rooms, break room and office. 6 Regular City Council Meeting May 28, 2008 Page Seven Discussion followed. The City Attorney read the amended language as follows: Project Description: The City of Sebastian, Florida desires to construct a 15,000 square foot hangar shell building with no interior improvements except as necessary for bathroom, mechanical, break room, and office and continue with location of Sebastian Municipal Airport X26. Result of the roll call vote was as follows: Ayes: Simchick, Wolff Nays: Paternoster, Coy, Neglia Failed 2-3 MOTION by Mr. Paternoster and SECOND by Mr. Neglia to approve the LPA agreement with just the amendment change to 15,000 SF. The City Attorney read the amended language as follows: The City of Sebastian, Florida desires to construct a 15,000 square foot hangar building on a location at the Sebastian Municipal Airport X26. Mr. Wolff clarified that the City Manager will come back to Council before the construction contract is approved and the City Manager responded when Council awards the contract they will have all information and the site plan will go to P & Z on June 19 or early July. Result of the roll call vote was as follows: Ayes: Wolff, Coy, Neglia, Paternoster Nays: Simchick Passed 4-1 Mayor Coy called recess at 8:55 p.m. and reconvened the meeting at 9:09 pm. All members were present. 08.065 C. First Reading of Ordinance No. 0-08-04 -Requiring Planning and Zoning 23-2s Commissioners to Have One Year of Residency (City Attorney Transmittal, 0-08- AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING CODE OF ORDINANCES SECTION 2- 170 BOARDS, COMMITTEES, COMMISSIONS: QUALIFICATIONS TO ADD A ONE YEAR RESIDENCY REQUIREMENT FOR PLANNING AND ZONING COMMISSION; PROVIDING FOR APPLICABILITY, SEVERABILITY, CONFLICTS AND EFFECTIVE DATE. The City Attorney read Ordinance No. 0-08-04 by title. MOTION by Mr. Paternoster and SECOND by Mr. Neglia to approve Ordinance No. 0-08-04. The City Attorney noted the approval should be to pass on first reading and set public hearing. It was determined to set it for June 25, 2008. 7 Regular City Council Meeting May 28, 2008 Page Eight Result of the roll call vote was as follows: Ayes: All Nays: None Passed 5-0 9. CONSENT AGENDA All items on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of consent agenda items unless a member 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 start of the meeting or by raising his/her hand to be recognized. 27-32 A. Approval of Minutes -May 7, 2008 Airport Workshop 33-45 B. Approval of Minutes -May 14, 2008 Regular Meeting MOTION by Mr. Neglia and SECOND by Mr. Paternoster to approve the May 7, 2008 and May 14, 2008 minutes passed on a voice vote of 5-0. 10. COMMITTEE REPORTS & APPOINTMENTS None. 11. PUBLIC HEARINGS None. 12. UNFINISHED BUSINESS 08.064 A. Approve Additional Funding for Trex Material for Pedestrian Bridges (City Manager 47-75 Transmittal, Info) The City Manager said the manufacturer of the bridges does not recommend using trex due to need for additional strengthening, and recommended rather than concrete, hard wood epoxy or wood be used, and asked for approval for staff to investigate lighting further and leave it to staff's discretion. Frank Watanabe, Neel-Schaffer, addressed Council stating Eco Bridges builds pre- fabricated bridges, that epi-wood would be slightly higher cost and that they support the use of wood. He said trex has also been found to have mold issues. The City Manager recommended against solar lighting because of increased cost of $7,000 per bridge. Discussion followed on deck material and the Mr. Watanabe's preference for yellow pressure treated pine due to its strength and lower cost. 8 Regular City Council Meeting May 28, 2008 Page Nine Mr. Neglia said he had seen lawsuits involved with trex and concurred with wood and electrical lighting. Mr. Wolff concurred but expressed frustration about the high cost of lighting, at $50,000 for three bridges. He said he had talked to the City Engineer who was looking at other options to find a reasonable cost. MOTION by Mr. Wolff and SECOND by Mr. Paternoster to move ahead with the bridges using wood and to have engineering look at all lighting options and get back to Council. The City Manager said he would like to move ahead and execute the contracts but continue to do more homework on the lighting issues which will be bought forward in the future on a consent agenda. Council agreed. Result of the roll call vote was as follows: Ayes: All Nays: None Passed 5-0 08.010 B. Council Comments on Revised Seawall RFP (City Manager Transmittal, Draft RFP) 77-94 The City Manager asked for Council comments on the revised RFP noting he would like to go to press tomorrow by 3 pm. Damien Gilliams, 1623 US Highway 1, commended Council for going out to bid again but suggested going out to only the people who assisted the City the first time. MOTION by Mr. Paternoster and SECOND by Mr. Neglia to approve the Collier Creek design-build RFP as stated. Mr. Wolff suggested adding a citizen to the selection committee to audit and give input to ensure the RFP process goes as smoothly as possible and for the sake of transparency and fairness. Mr. Neglia said he had someone in mind. The City Manager asked if this is what Council wants to do, they leave it to his discretion to select the individual. Mayor Coy said she thought someone living on the canal was not a good decision because they have an investment and would not be totally unbiased. Ms. Simchick suggested using another government official such as another city's engineer. Mr. Neglia said just give confidence to our staff and do it. The City Attorney advised Council cannot put someone on this committee since it is an administrative function that is laid out in Florida Statutes. He said Council could in the future adopt its own policies or rules on design/build by ordinance, said the City Manager is not limited to his own staff, and that government officials are immune from liability but a private citizen would not be. 9 Regular City Council Meeting May 28, 2008 Page Ten The City Clerk reread the motion as requested, however the City Attorney said this is not a motionable issue. Mr. Paternoster withdrew his motion. Following further discussion, four Council members agreed that using another government official would be preferable to using a citizen, however it was left to the discretion of the City Manager. The City Manager said he was hearing that Council is happy with the scope of the RFP and he would let Council know shortly of his decision on adding another member to the screening committee. Discussion followed on contact from vendors, and members stated they would not respond. In response to Mr. Wolff, the City Attorney advised that receiving an election donation from a vendor would not be perceived as lobbying as long as there is no discussion about the issue, though for the candidate's own good, it would be wise to refuse. 13. PUBLIC INPUT Public Input for each individual is five minutes, however, it can be extended or terminated by a majority vote of Council members present. AI Malone, Easy Street, expressed concern for speeders on Easy Street, asked why officers are not patrolling Easy Street, asked about lights out at the Yacht Club, and about uncomfortable benches in the riverfront that he had discussed with Dave Fisher, and requested grading be put in front of new culverts on Easy Street so a child won't crawl inside. Mayor Coy suggested that "street closed-local traffic" signs and barricades not be removed from Easy Street at 3:30 pm each day during construction. Mr. Paternoster said Mr. Malone had attended his forum and he had talked to the City Manager about this issue today. Cindy Falco-DiCorrado, Louisiana Avenue, recommended the City promote Sebastian's historical districts more and commended Harry Tanner for his work on behalf of the Historical Society and was sorry he didn't get his $5,000 grant. Damien Gilliams, 1623 US 1, said he had tried to sell a condo in the building where it was located and was told by staff he could not, he read the letter from GMD, and said he was stonewalled and then the person did open an office in another suite. Mr. Paternoster asked the City Attorney that if this is a legal issue should Council listen. The City Attorney said they should not respond and said he had responded to Mr. Gilliams' attorney. Mayor Coy asked Mr. Gilliams to move on to another topic and Mr. Gilliams said he was not asking for a response. He was given warnings but repeated he had a right to speak under the rules, so Mayor Coy gave him his third warning and asked him to leave. He was escorted from the podium by Chief Davis and Lieutenant Witt. 10 Regular City Council Meeting May 28, 2008 Page Eleven Mayor Coy called a recess at 10:16 pm and reconvened the meeting at 10:20 pm. All members were present. Chuck Lever, Mulberry Street, Sebastian, asked if anything had been done on his earlier request for awards to police officers on which Council voted 5-0, or the boat trailer parking fees he had suggested, noting 67 cities charge a fee. MOTION by Mr. Paternoster and SECOND by Mr. Neglia to extend the meeting passed on a voice vote of 5-0. 14. NEW BUSINESS 08.069 A. Consideration of Meeting Start Time -Requested by Council Member 95-100 Paternoster (R-07-32 Meeting Procedures) Mr. Paternoster suggested starting regular meetings at 5:30 pm to enhance public participation and perhaps end meetings a little earlier for everyone. Ms. Simchick said she would have scheduling problems starting that early because of work and family concerns and suggested instead utilizing off Wednesdays for quasi hearings, an option set out in the procedures resolution. When asked by Ms. Simchick, the City Clerk said many years ago Council had workshops on the first Wednesday of each month, at which they would discuss issues at length and then act on them at the two regular meetings, then later added a provision for quasi hearings to take place at alternate Wednesdays due to a large number of quasi issues related to annexations which were taking whole meetings to complete. She said there are not many quasi issues now as there were then. Mayor Coy said she has Land Acquisition Committee meetings on Wednesdays that sometimes runs late. The City Manager suggested playing the quasi thing by ear. Mr. Wolff said he could start at 6:30 pm. It was the consensus of Council to move the time a'h hour earlier and directed staff to come back with an amending resolution. 15. CITY ATTORNEY MATTERS The City Attorney reported on a settled claim whereby the City will receive money for damages caused to the City. 11 Regular City Council Meeting May 28, 2008 Page Twelve 16. CITY MANAGER MATTERS The City Manager said the Press Journal is notified of Police Officer awards but if Council wishes we can give them publicly. Chief Davis said his officers are satisfied to receive them in house rather than at a Council meeting. Ms. Simchick suggested putting a list in the Pelican Brief so all residents will read it and the City Manager said he would do that. She suggested in the event of lifesaving, would they consider being awarded at a meeting. Ms. Simchick asked about the schedule for Airport citizen workshops and the City Manager said he is working on it. She said she wants to know the format, time and place. 17. CITY CLERK MATTERS None. 18. CITY COUNCIL MATTERS A. Manor Coy Mayor Coy thanked City Council members, the VFW and American Legion for the May 26th Memorial Day Service in Riverview Park. She requested that the new SJRWMD rules be placed on the June 11th agenda if possible and Ms. Simchick requested a report from staff on the issue. B. Mr. Neglia Mr. Neglia reported that through the Sebastian Property Owners Association, he and Bruce and Barbara Zingman and their neighbors collected $550 at the last concert in the park for victims of the Palm Bay/Malabar fires. He thanked Mr. Zingman who was in attendance. He asked where new rules for parks were and the City Manager said he was working on them. He then asked about the ordinance for side yard vegetation removal and the City Attorney said staff is in full scale discussions with US Fish and Wildlife about the Habit Conservation Plan and suggested waiting until that is resolved, because USFW have problems with the ordinance. C. Mr. Paternoster Mr. Paternoster continued on the issue of the side yard vegetation removal ordinance and it was the consensus of Council to bring back the language the way it is currently written for review and direction to staff. 12 Regular City Council Meeting May 28, 2008 Page Thirteen Mr. Paternoster said he had requested the City Manager to put a marquee out in front of City Hall to better promote meetings. D. Ms. Simchick Ms. Simchick said she asked the City Manager to make a sign for Easy Street Park and he advised her he had e-mailed her back. She said the City showed great camaraderie at the Memorial Service. E. Mr. Wolff Mr. Wolff asked the City Attorney for an update on the Firehouse Garage and marina parking issue and the City Manager said the Firehouse issue is back in their court. Mayor Coy announced there is a Concert in the Park on Friday, May 30th with Storm Riders from 5:30 pm to 8 pm. Mr. Wolff asked about the Economic Development Plan draft he had received from the Chamber and the City Manager said it will be scheduled for the July 9th meeting. 19. Being no further business, Mayor Coy adjourned the regular meeting at 10:55 pm. Approved at the June 11, 2008 Regular City Council meeting. Andrea Coy, Mayor r'~ ATTEST: ~ % _ Sally A. Maio, MMC ~ City 13 Page 1 of 4 Jeanette Williams From: Sally Maio Sent: Wednesday, May 28, 2008 12:16 PM To: Jeanette Williams Subject: FW: LPA Contract FYI -print this out as well for the record. From: Alfred Minner Sent: Wednesday, May 28, 2008 11:27 AM To: Dale Simchick; council Cc: Rich Stringer; Sally Maio; Joseph Griffin Subject: RE: LPA Contract Council Members: In response to the attached a-mail correspondence, it is important to be extremely clear on what staff is asking of Council this evening with respect to the Design/Build Contract with LPA. Also, understand that prior to any construction, Council will have opportunity to review final designs and cost estimates of the hanger, prior to execution of a Design/Build Agreement with the prospective proponent that is awarded the contract. Having said that, I offer these bullet points for further clarification purpose: As outlined in state statutes (F.S. 287.055 (9) (b)), the LPA Group is serving as our "design criteria professional". In other words, the process for which we are embarking is a Design/Build process similar to the Collier Creek Wall RFP, whereby LPA will serve as a professional consultant to ensure basic design methodology is met for its client. This is similar to how CDM served in the Collier Creek Design/Build RFP. In your packets for this evenings meeting please see circle page 13. The effort was made to outline for Council the important milestones for the project, so as not to piece-meal the process. At that time, staff anticipated bringing aDesign/Build contract to you by July 9, 2008. The dates in this schedule may need to be amended by two-week intervals. Tonight, Council is approving the contract between and the City and LPA NOT the contractor. As such, the contractor awarded the Design/Build Agreement can execute any modification or concern that Council may have with the limited design concept prepared by LPA, needed for aDesign/Build market place RFP. Therefore, Council will have opportunity to publicly review the final design of the hanger facility prior to award of a Design/Build contract. At that stage, the actual construction and layout will be clearly identified and available for Council review and amendment. This process should alleviate any worry Council may have with a "custom built" hanger or underestimating rental value of what will ultimately be a City asset. The hanger itself will be a "shell building". This basic form should include office space, restrooms and infrastructure connections such as water, sewer, electric, phones, IT and fire sprinkler system (of course monthly utility expenses are not paid by the City). These are basic services that any company would require should the City have to market such a facility. Remember too, walls and other interior improvements in a "shell building" are not load bearing and are relatively minor expenses to construct or relocate. Interior walls in such a structure are generally metal stud/drywall improvements. In some application, LoPresti requires segregation with fencing. In other respects, LoPresti will provide prefabricated cabinets, which seal materials. In hindsight, this makes some of the labels on the concept plan a bit of a misnomer. In final design you will see the plan prior to build-out. At this stage, I do not anticipate interior constructionco be extensive to such a point whereby construction costs are substantially increased or rental value is under-estimated. 5/28/2008 Page 2 of 4 With respect to the "citizens left holding the bag" -All economic development plans provide incentive to reduce target industry's bottom line. In this fashion, jobs are created and larger investment is made in the community. These actions are aimed at setting the stage for a healthy economy. These facts are universal and sometimes contested. We have seen this locally with respect to the "Piper" incentives. With respect to the City and LoPresti -the City will remain financially whole. In other words, no money is lost and no cash or abatement incentives have been directly provided to LoPresti that diminishes the City's bottom line. Many economic development plans cannot boast such win/win scenarios. Again, I hope this is helpful in preparation for this evenings meeting. AI Minner City Manager Ciry of Sebastian -----Original Message----- From: Dale Simchick Sent: Tuesday, May 27, 2008 5:49 PM To: Alfred Minner; Dale I. Simchick Cc: Rich Stringer; council Subject: Re: LPA Contract Al, I am glad we are getting clarification. We are building a 15k metal hanger shell (Vanilla Shell).We need to modify the language so there is no confusion. The shell shall have no more improvements beyond the basic necessities(bathroom, mechanical rooms, but no firewalls, Information Technology services ,etc- by us or custom built interior) Also the design build will ONLY include whats required for a hanger. Please word that as such. Also making it cost less. * * * Special note -any interior improvements to be done by tenant, per code, by licensed contractor. So to re-cap our packets are misleading to us and maybe LoPresti, could cause us finacial loss if left as is and need to be clarified so not to appear like we promised them a hanger and now are custom building an interior industrial plant. The Citizens left holding the bag so to speak. Please modify the summary not to say shops.(pg.13) modify Exhibit A it reads Sk hanger and l Ok shops. Exhibit E was conceptual only and and the diagram should be modified in improvement area's to say per tenant.Most Important!!!! 5/28/2008 Page 3 of 4 Also I have sent a copy to Rich Stringer to make sure he secure's language for tomorrow even to make sure we are not responsible for anything else then what's in our lease Exhibit "B" 15K metal hanger and what our Joint participation agreement-the item before clearly decribes t-hanger to "Hanger". ---------- Original message from "Alfred Minner" <aminner@CityOfSebastian.org>: -- Dale: I wanted to catch up with you on a few points from this morning's conversation about the LPA Design/Build Contract on the Agenda for tomorrow evening. I am a little concerned that a few issues are not clear and wanted to be sure I got these correct, hence the written response. • WITH REGARD TO THE INFORMATION PROVIDED TO ADAM PREUSS - I was incorrect in what I told you. Joe Griffin in fact, did not rp ovide Adam with the building layout that is now in your packets. Please keep in mind that was a conceptual layout plan used to show LoPresti that the "shell building" could house their Speed Merchant operations. For all practicality, we are building a shell building. However, there will be an office, mens/w omens restrooms and break room in the hanger, which will probably be built with metal stubs and drywall. This construction is typical for speculative building. It is also typical for "hanger" space and should not increase potential rental value past what is already speculated ($2 per square foot). WHAT JOE GRIFFIN DID SUBMIT TO ADAM PRUESS WAS THE SITE PLAN LAYOUT. The layout was a copy from the Airport Layout Plan (a.k.a. Airport ALP) Council recently approved on moving development from the west to east side of the airport. This ALP roughly showed the footprint of where the proposed hanger was to be located. Please note a few specific dates, which provide legitimacy to Joe's position. Adam Pruess and Joe first met in approximately late January 2008. At that time no conceptual drawing existed to provide Adam, that is why he did not receive a copy of the plan prior to, at least starting, the appraisal. Also note that the first invoice from Mr. Pruess was received on February 1, 2008 and that is prior to the date, which is on the hanger conceptual plan (February 8, 2008). Note that Joe received the conceptual plan from LPA on February 11, 2008. • I made a call to Adam Pruess today to ensure that he understood our intent of the 5/28/2008 Page 4 of 4 building and I believe he understood that the main concept of the building is open hanger space. I will be meeting with him tomorrow around 9:15 AM for further clarification purposes. You specifically mentioned, "MIX-USE" on the phone. You also mentioned the need for firewalls and other protection. This just did not make sense to me at the time because the "LoPresti" hanger is a single industrial operation in an "airport zoning". There is no mixed use for this building. To make sure I was on the right page, I vetted this with Wayne Eseltine. He concurred that because it is a single use buildi ng for industrial use, no firewalls or other segregation is required. Note again the purpose of the concept was to depict to LoPresti that they could house separate options and demonstrate their process flow in the facility. Also remember that this plan will need to be reviewed/approved by the Planning and Zoning Commission prior to construction. This is planned for sometime in June. ONE MORE ITEM ON MIXED-USE. If I recall correctly a "mixed-use" issue arose at the Sebastian Industrial Center, where Wayne required a firewall separation. This action was required because the owners of the establishment were renting a portion of a designated "industrial" facility to a dance studio, which is a commercial use. Hence, the commercial dance studio needed to be "life safety" separation from the more intense use in the same building. This is not the case in this situation where the hanger will house only one industrial use -fabrication of LoPresti aircraft speed modifications. • FDOT DID RECEIVE A COPY OF THE HANGER CONCEPT PLAN WHEN IT WAS COMPLETED. In summation we are building a "shell hanger". The basic use and conceptual layout is practical for any other aviation use that may use the building, aside from LoPresti. I think we had that conversation a week or so ago when you brought some of these concerns to my attention. I still recommend approval of the concept and think that it lays groundwork for future enterprise and job expansion at the airport, which will ultimately assist Sebastian in luring a Florida Target industry. I hope this directly addresses and provides some clarification to issues you have. AI Minner City Manager City of Sebastian 5/28/2008