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HomeMy WebLinkAbout08112010City Council Present: Mayor Richard H. Gillmor Vice -Mayor Jim Hill Council Member Andrea Coy Council Member Eugene Wolff Council Member Don Wright None. CITY OF sEBAST1AN HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL MINUTES REGULAR MEETING WEDNESDAY, AUGUST 11, 2010 6:30 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor Gillmor called the Regular Meeting to order at 6:30 p.m. 2. Invocation was given by Pastor Clifton Cooley, Calvary Baptist Church. 3. The Pledge of Allegiance was recited. 4. ROLL CALL Staff Present: City Manager, Al Minner City Attorney, Robert Ginsburg City Clerk, Sally Maio Deputy City Clerk, Jeanette Williams Airport Director, Joe Griffin Finance Director, Ken Killgore Growth Management Director, Rebecca Grohall Police Captain, Mike Beyer Police Captain, Robert Lockhart Public Works Director, Jerry Converse MIS Senior Systems Analyst, Barbara Brooke -Reese 5. AGENDA MODIFICATIONS Modifications and additions require unanimous vote of City Council members 6. 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. 10.073 A. Presentation of Plaque to Employee of the 2 Quarter Jeanette Williams, MMC Deputy City Clerk Mayor Gillmor read Ms. Williams' bio and plaque and presented her with a savings bond, and made a formal presentation of her Master Municipal Clerk plaque and pin. Regular City Council Meeting August 11, 2010 Page Two 10.116 B. Proclamation Florida Water Professionals Week August 16 -20 Accepted 5 by Florida Water Pollution Control Operators Association Regional Director, Steve Utter Mayor Gillmor read and presented the proclamation to Mr. Utter. 10.117 C. Proclamation Visiting Nurse Association's 35 Anniversary Accepted by 7 President, Joyce Baldrice and Board Chairman for VNA of the Treasure Coast, Ann Marie McCrystal Mayor Gillmor read and presented the proclamation to Ms. McCrystal. 10.118 D. AlgaGen LLC Presentation by William Cox Bill Cox and Erik Stenn recognized Andrea Coy, Al Minner and Beth Mitchell for their assistance, and gave a power point presentation (see attached) in regard to their company and product. Mr. Stenn said they need a good water source for aquaculture, which is their reason for looking at the Archie Smith fish house site, but there is much that needs to be explored to determine if the site is feasible. Mr. Cox said they could begin using the facility for administrative purposes going in. Ms. Coy discussed the AlgaGen operation currently located in Vero Beach and said the Sebastian site was recommended by Commissioner O'Bryan based on the potential good water quality at the site. Mr. Hill said he would hope that based on the historical value of the property, any renovation would be in keeping with preservation. Mr. Cox responded that the exterior would remain just the same; there would be working aquariums inside the front and a greenhouse for people to visit to go along the educational line of the working waterfront. Mr. Hill said this was a very exciting concept and thanked them for considering Sebastian. In response to Mr. Wolff, Mr. Cox said he had been with the company since May, and described the other staff members' experience and function. Mr. Wolff noted they were asking for a 99 year lease from the County, and asked why such a long term lease. Mr. Cox said this is a local business that is going to stay local, will be kept private and are looking for the long term. Mr. Wolff said they are talking about drawing and re- injecting water and asked if they currently do this in their Vero location. Mr. Cox described their current operation, and the three potential methods they could use if they should obtain this site are to: truck in water to store in a tank; use the river water; or put in some saltwater wells. They said the required permitting from various agencies could take up to one year. Mr. Stenn, in response to Mr. Wolff, said there is no product smell; the materials are live and liquid. Mr. Wolff was invited to come out and visit the current facility. The City Manager noted there is a resolution of support later on in the agenda. 2 Regular City Council Meeting August 11, 2010 Page Three Brief Announcements Ms. Coy announced that Indian River State College will be conducting 25 classes in the Sebastian location this year, and anticipate 500 students attending. She also announced the Sebastian River Area Chamber of Commerce Candidate Forum on Thursday, August 12 from 7 -9 pm in the City Council Chambers for County candidates. 7. CONSENT AGENDA All items on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of consent agenda items unless a member City Council so requests; in which event, the item will be removed and acted upon separately. If a member of the public wishes to provide input on a consent agenda item, he /she should request a Council Member to remove the item for discussion prior to start of the meeting or by raising his/her hand to be recognized. 9 -16 A. Approval of Minutes 7/28/10 Regular Meeting 10.112 B. Authorize Execution of Modified Sovereignty Submerged Lands Lease 17 -36 Renewal for Working Waterfront Dabrowski Property (City Clerk Transmittal, Cover Letter, Lease) 10.119 C. Resolution No R -10 -20 Authorizing Application for Florida Fish and Wildlife 37 -61 Conservation Commission (City Manager Transmittal, R- 10 -20, Application, Legal Description, Map) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE CITY MANAGER AND /OR HIS DESIGNEE TO APPLY FOR FUNDING FROM THE FLORIDA FISH AND WILDLIFE CONSERVATION COMMISSION, FLORIDA BOATING IMPROVEMENT PROGRAM, PROVIDING FOR AN EFFECTIVE DATE. 10.099 D. Renewal of Property, Casualty, Liability and Workers' Compensation Insurance 63 -67 Coverage FY 10/11 w /Florida League of Cities for One Year Term (Tabulation of Renewal Savings, FMIT Proposal for FY 10/11) Mayor Gilimor said he had been requested to remove item B. The City Attorney noted for item A, the 7/28/10 minutes on circle page 14 of the packet, in regard to the LoPresti lease, that the reference to Amendment Two should be actually be Amendment Three and the paragraph referenced in the amendment should be six rather than seven. MOTION by Ms. Coy and SECOND by Mr. Wright to approve as corrected. The City Clerk clarified the motion was to approve items A, C and D as corrected. Result of Roll CaII: Ayes: All Nays: None Passed 5 -0 3 Regular City Council Meeting August 11, 2010 Page Four Item B Sovereign Submerged Lands Lease Waterfront Dabrowski Property Damien Gilliams thanked Mayor Gillmor for removing the item. He asked if the Fisherman's Landing Sebastian (FLS) waterfront lease had been executed and the City Manager confirmed it was. Mr. Gilliams expressed concern that he and Mr. Wolff were away during the lease approval and did not have an opportunity to comment and said it could have been placed on a referendum. Mr. Wolff questioned paragraph three in regard to the supplemental payment and the City Manager explained that FSL will report all of the wet slip rentals to us and we will report it to the state. He said the annual submerged lands lease fee and recording fee will be reimbursed to the City by FLS in accordance with the City's lease agreement with FLS. MOTION by Mr. Hill and SECOND by Mr. Wright to approve item B, the Submerged Lands Lease. Result of Roll Call: Ayes: All Nays: None Passed 5 -0 8. COMMITTEE REPORTS APPOINTMENTS City committee reports and Council Member regional committee reports. No public input or action except for City committee member nominations and appointments under this heading. 10.088 A. Parks and Recreation Advisory Committee 69 -78 i. Interview, Unless Waived, and Appoint One Alternate Member with Term to Expire 5/31/2012 (City Clerk Transmittal, Two Applications, List, Ad) City Council briefly interviewed applicants Webster and Caswell. Ms. Webster noted her 26 years residency and her involvement with Sebastian Little League. Mr. Caswell noted he had been in Sebastian one year and one week and his involvement with youth sports. Mr. Wright nominated Ms. Webster. There were no other nominations; Ms. Webster was appointed as alternate member to the Parks and Recreation Advisory Committee. 9. PUBLIC HEARINGS None 10. UNFINISHED BUSINESS None 11. PUBLIC INPUT Harvey Wheeler questioned the City's return on investment on the fish house, and questioned grant funds to improve the Hurricane Harbor property. He clarified he was referring to the Dabrowski waterfront operation. Mayor Gillmor responded that in government, return on investment is more of a cultural thing and we are hoping our return will be to retain the culture and history of commercial fishing. 4 Regular City Council Meeting August 11, 2010 Page Five Damien Gilliams, 1623 US Highway 1, asked the City Manager for the record if we had put out the waterfront project for RFP, said certain individuals in the community are rewarded, cited the concrete pad on the waterfront and said no member of Council had the audacity to question it, and instead they go after the little people in town. He cited the recent adoption of the DR 420 form was approved with a higher millage rate, and he urged Council not to raise taxes, and expressed disappointment that no one from the community questioned it. 12 NEW BUSINESS 10.023 A. Award Bid /Contract to E. J. Breneman for Micro Surfacing and Crack Sealing; to 79 -172 Asphalt Recycling for the Milling and Reclamation of Roads; and to APAC of Florida, Inc. for the Asphalt Placement Based on Formal Bidding Prices and Negotiated Asphalt Tonnage Prices (Public Works Transmittal, Memo, Price Sheets, Contract) The City Manager said this was a multiple contract item, that no bids had been received on the microsurfacing, so the City had renegotiated an agreement with the previous contactor E.J. Breneman. MOTION by Ms. Coy to approve. In response to Mr. Wolff, who asked why we were not inundated with bids in these economic times, the City Manager said though he did not have a specific answer; it may be because these are smaller jobs over different areas rather than one big project. Mr. Wright said perhaps the large number of stimulus paving jobs have companies busy elsewhere. The City Manager cited E.J. Breneman's qualifications and experience in response to Mr. Wright. Mayor Gillmor SECONDED the motion at this time. Mr. Wright asked if guarantees were available for product failure within a time frame of a few years. The City Manager responded that the contracts were standard one year contracts and he asked that defects be left to administrative determination, noting the Public Works Department is comfortable with E.J. Breneman. Result of Roll Call: Ayes: All Nays: None Passed 5 -0 10.120 B. Sebastian Municipal Airport Lease V- Raptor Aircraft, LLC (Airport Transmittal, 173 -201 Letters, Business Plan, Memo of Understanding, Lease) The Airport Director said the City has an opportunity to receive a $1.45 M grant which requires a $290,000 match from the City to construct a hangar and lease the hangar to V- Raptor Aircraft, LLC. He said he had investigated them through the Florida Division of Corporations and found little financial information, but that they are a legitimate LLC and 5 Regular City Council Meeting August 11, 2010 Page Six have a private investor. He said they are in the process of a lease purchase of the old Ford Wire Building to construct the composites off -site and then would transfer them to the airport hangar for final assembly. The City Manager noted that approval of the lease would, in effect, be a commitment to the use of a loan from DST funds to the airport for the match. MOTION by Mr. Hill and SECOND by Ms. Coy to approve. Damien Gilliams said Florida is short on its budget but FDOT has money to throw to Sebastian, that we are in an economic crisis and Council doesn't know when to stop spending. He asked why the company can't come up with the match. Jeff Kerlo, Chief Technical Officer, V- Raptor Aircraft, LLC, said they have already spent $1 M in the community, and that the influx of outside money from customers will trickle down into the community. Mayor Gillmor said he had spoken with Mark Bontrager, Vice President of Spaceport Operations, Space Florida about this business, and he noted there are commercial space ventures interested in tapping into Mr. Kerlo's expertise, skills, and custom aircraft fabrication. Mr. Kerlo responded that they were approached at the Oshkosh Air Show and given a RFQ to begin contractor preliminaries which is a good indicator of market interest. In response to Mr. Wolff, Mr. Kerlo explained the $1 M invested was the $250,000 down payment for the former Ford Wire building, money for development and renovation to the property, in addition to tools, molds, textures, jigs related to the operation of the building. Mr. Wolff questioned the lack of any financial reports for the company. Mr. Kerlo said they exist under the umbrella of a larger corporation that is a prime contractor to General Dynamics which supplies spares and services to support all existing Russian military hardware employed by the Afghani Army. Mr. Wolff said with the last hangar we built, the tenant could not pay the rent and asked what type of commitment the investor has, and why was it critical to have a demonstration area at the Sebastian Airport. Mr. Kerlo responded he was familiar with that situation; they would not purchase the Ford Wire building without an intention to make a go of it; and this airplane addresses a market that has not been approached or attained. Mr. Wolff said when a prospective tenant comes to the City, we hear a lot of talk, noting he has to provide more documentation to get financial aid for his children's school than we get at Council, and we have to get serious and have a fiduciary responsibility to the citizens to get more documentation. Mr. Hill said Council is not transferring funds, but are matching funds to build a hangar for the City to lease to them and it will be paid with Airport funds, and this is exactly what we should be doing with the Airport. 6 Regular City Council Meeting August 11, 2010 Page Seven Mayor Gillmor agreed that the tax money for the grant comes from airport fuel tax and noted that the idea that we can get that tax money back and put it back in the pockets of taxpayers is ridiculous. Mr. Wright said this proposed lease ties in with our Economic Development Plan to create meaningful jobs. He advised them they can apply for incentives. He cited today's paper which said we are at 14% unemployment, wished the company success and said if it doesn't work out we lease the hangar to someone else. Result of Roll Call: Ayes: All Nays: None Passed 5 -0 Mayor Gillmor called recess at 8:00 pm and reconvened the meeting at 8:13 pm. All members were present. 10.121 C. Resolution No. R -10 -22 DST Advance to Airport Fund for Construction of 203 -207 Hangar from the Discretionary Sales Tax Fund (Airport Transmittal, R- 10 -22, Sched. A) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADVANCING FUNDS FROM THE DISCRETIONARY SALES TAX REVENUE FUND TO THE AIRPORT ENTERPRISE FUND; MAKING PROVISIONS FOR REPAYMENT OF THE ADVANCE AND MAKING PROVISIONS FOR THE PAYMENT OF INTEREST ON SEAID ADVANCE AS PROVIDED FOR IN SCHEDULE "A," ATTACHED HERETO; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read Resolution No. R -10 -22 by title. MOTION by Mr. Hill and SECOND by Mr. Wright to approve R- 10 -22. Damien Gilliams asked if we had advertised to give other companies willing to provide their financial statement a chance; noting it costs time and money to evict which might exceed the City's grant match of $290,000. He said if this was advertised in an aviation magazine, he asked the Mayor if he knew how many corporations would love to come and use the money. He asked the Mayor if it was advertised. Mayor Gillmor responded it was properly advertised. Ms. Coy said we are not giving this individual $290,000 and the City Manager concurred there is no money leaving the City, rather we are loaning our own funds to ourselves and then charging ourselves interest, and there is no financial risk to the City. Mr. Wright said we are not loaning money to anyone, but funding construction of a building that we will own and lease out. He noted we had discussed doing this in the past even though there was no potential tenant at that time. Mr. Wolff again said he is asking for the qualification of applicants who come before us and while we have great hope, it is not based on anything tangible, such as a business plan or financials. He said the City Manager has made clear there is no financial risk to the City, but we still need to qualify prospective people. He also asked if this was advertised. 7 Regular City Council Meeting August 11, 2010 Page Eight The Airport Director said while it had not been advertised in magazines, he has been in contact with six or seven entities and given tours of the Airport. Mr. Wolff said the Airport Director was doing a great job and had good business acumen, but wanted to clarify that it was not advertised since it was noted earlier on the record that it was. Mayor Gillmor offered kudos to the Airport Director. Result of Roll Call: Ayes: All Nays: None Passed 5 -0 10.118 D. Resolution No. R -10 -23 AlgaGen, LLC (City Manager Transmittal, E -Mail, 209 -213 R- 10 -23) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, FLORIDA, INDIAN RIVER COUNTY, SUPPORTING THE LOCATION EFFORTS OF ALGAGEN, LLC AND ENCOURAGING THE BOARD OF INDIAN RIVER COUNTY COMMISSIONERS TO CONSIDER A LEASE AGREEMENT FOR ALGAGEN, LLC TO LOCATE IN THE ARCHIE SMITH FISH HOUSE IN SEBASTIAN, FLORIDA; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICT; AND PROVDING FOR AN EFFECTIVE DATE. The City Attorney read Resolution No. R -10 -23 by title. MOTION by Ms. Coy and SECOND by Mr. Wright to approve Resolution No. R- 10 -23. Damien Gilliams asked how this item was directed for placement on the agenda. The City Clerk said it was directed at the July 28th CRA meeting, however, minutes from that meeting have not been provided for approval yet because they were just completed. Mr. Gilliams said placement of a resolution on an agenda requires a vote of City Council. He was advised it does not, though passage of a resolution does. Mr. Gilliams asked what would happen if the algae gets out of control. Mr. Wolff questioned the phrase in the resolution "provides a perfect location and asked, without an environmental study, how does the City make that assumption. Mr. Cox explained they have options on what organisms they can grow and three water options to grow the organisms to include: trucking in the water to store in tanks; take local species from the water out of the river; or put in a well. He also noted they could still operate traditional aquariums. Mr. Wright read the entire phrase as "provides a perfect location for promoting business expansion, job creation, and historic preservation" which he said was an accurate statement. Mr. Wolff said the materials stated the site was not ideal for expansion but would require acquisition of neighboring property and asked Mr. Cox if that was correct. 8 Regular City Council Meeting August 11, 2010 Page Nine Mr. Cox responded that initially they were going to grow macroalgae but decided they could make good revenues with other organisms with the existing facility, and Mr. Wolff withdrew his concern. Result of Roll Call: Ayes: All Nays: None Passed 5 -0 10.114 E. Resolution No. R- 10 -24- Archie Smith Fish House (City Manager Transmittal, 215 -218 R- 10 -24) A RESOLUTION OF THE CITY OF SEBASTIAN, FLORIDA, VOICING CONCERN REGARDING THE DETERIORATION OF THE ARCHIE SMITH FISH HOUSE AND URGING INDIAN RIVER COUNTY BOARD OF COUNTY COMMISSIONERS TO ENSURE THE PRESERVATION OF THIS HISTORIC PROPERTY; PROVIDING FOR CONFLICT; PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read Resolution No. R -10 -24 by title. Damien Gilliams noted the bond money might prohibit using the facility for commercial activity and asked if we are going to do all the deteriorated properties along Indian River Drive. Ben Hocker asked who the holder of the property is and Mayor Gillmor responded Indian River County. Mayor Gillmor clarified for Mr. Hocker that there would no expense for Sebastian. Mr. Wolff asked the City Manager to speculate how the County intended to fund the improvements and if there was a fund for historic preservation. The City Manager said Mr. Baird would probably head towards the residual funds from the Land Acquisition Committee, recreational impact fees, or grants. He said the use of recreation fees would probably depend on the public visitation /museum type activities. Ms. Coy responded the residual in the $300,000 Land Acquisition fund would make the most sense. The City Clerk noted for the record that this was actually the resolution that was directed by the CRA at its last meeting not the previous resolution. Result of Roll Call: Ayes: All Nays: None Passed 5 -0 10.039 F. Discussion of Proposed Capital Improvement Program FY 2010/11 Through FY 219 -247 2015/16 (Finance Director Transmittal, Proposed CIP) The City Manager gave a PowerPoint presentation on the CIP (see attached). He noted for the FY10- Gateways, the CRA which met prior to this meeting had directed him to reduce the level of the gateways, thus reducing the $250,000 in current funding. 9 Regular City Council Meeting August 11, 2010 Page Ten Mr. Wright noted that the $75,000 for Bark Park improvements was to expand the recreational activities in the entire park and is not just for dog activities. The City Manager said he would obtain public input on proposed improvements. Mr. Wolff inquired whether there was any plan to improve the jogging path at Hardee Park. The City Manager said there was not at this time, but if that was the direction of Council to advise him of that tonight, he would include it. He said there is $35,000 in the current FY budget for Hardee Park play equipment, which has not been used as yet due to the Collier Creek project. He said it could be used for the play equipment or for the trail or a combination of both. The City Manager said he has received a few complaints on the trail. Mr. Hill said he would like to hear from Parks and Recreation on this issue. The City Manager said he would provide it on the August Parks and Recreation agenda. Mayor Gillmor questioned the $50,000 for City Hall Parking /Landscaping stating there was nothing on the horizon for a public center. The City Manager concurred. Mayor Gillmor said the plan is actually to knock down the buildings next door for parking improvements that are not needed at this time. He listed the organizations that use the two buildings to the west of the old schoolhouse and said there are no other buildings that take the place of those structures. Mr. Wright agreed this may be too aggressive a plan right now, and noted we are getting a recommendation for renovation of the buildings. Mayor Gillmor said he had spoken to Retired Senior Volunteers Program which provides volunteers and they have a plan for mentoring small businesses, and this could be a possible use for one of those buildings. Ms. Coy agreed it was premature to tear down something when we don't know what we are going to do with it, and we should leave it unless for some reason we need to condemn it. Mr. Hill said we need to weigh the public benefit and there is no benefit to removing it. Mayor Gillmor said the people using it are the City's stakeholders and Mr. Wright said the $50,000 is better spent on roads. Mr. Wolff said there are a large percentage of people still affected by stormwater issues and asked how we could accelerate that program. The City Manager responded an increase in the stormwater fee, which was implemented in 2001, could get you a little more funding or perhaps getting money from other funds. He said while he thought the City was doing a good job in this area, stormwater issues would continue. Damien Gilliams asked why businesses with site plans that are required to provide stormwater retention have to pay the stormwater fee. He asked Council to come to meetings and find ways to cut taxes, not increase them. He recommended stopping the recreation impact fees and obtaining funding from the Clambake festival. 10 Regular City Council Meeting August 11, 2010 Page Eleven Ben Hocker asked about funds for renovation of the old school buildings; whether there was sewer on Indian River Drive; and said the County does not allow plastic piping. The City Manager said he was not familiar with the County's applications but assumed Mr. Hocker was referencing the quarter round project, noting the quarter rounds have pros and cons. 13. CITY ATTORNEY MATTERS None 14. CITY MANAGER MATTERS The City Manager updated Council on the annual stormwater fee credit application for sites that have retention areas which was extended this year, noting the credit resulted in a $20,000 reduction in stormwater fee revenues. 15. CITY CLERK MATTERS The City Clerk announced that the official qualifying period for the two City Council member seats on the November 2 General Election begins August 19 and ends September 3rd 16. CITY COUNCIL MATTERS A. Council Member Wolff None B. Council Member Wright None C. Mayor Gillmor Mayor Gillmor reported on the last meeting of the Indian River County Mayors group at which they discussed the Indian River County Chamber's requested budget of $158,000 but will only be receiving $119,000 which is the same as last year. He noted their allotment of $35,000 for business attraction was used in the first quarter of this year. He said Indian River County's allotment is very low compared to Martin County which has $800,000, St. Lucie County has $600,000, and Brevard has $1.2 M. It will be suggested that each City contribute a small amount toward economic development and ask the County to match the amount to raise the budget requested by the Chamber, but that each City would have to approve it first. Ms. Coy asked that this be placed on a Council agenda and he asked the City Manager to put it on the August 25 agenda. D. Vice Mayor Hill None E. Council Member Coy None 17. Being no further business, Mayor Gillmor adjourned the Regular Meeting at 9:44 p.m. Approved at the August 25, 2010 Regular City Council meeting. ATT S Ricnar&/H. Gillmor, Mayor Sally A. Maio, MC City Clerk tL