Loading...
01-22-2007 - Regular CITY COUNCIL OF EDGEWATER REGULAR MEETING JANUARY 22, 2007 7:00 P.M. COMMUNITY CENTER MINUTES 1. CALL TO ORDER Mayor Thomas called the Regular Meeting to order at 7:00 p.m. in the Community Center. ROLL CALL Mayor Michael Thomas Present Councilwoman Debra Rogers Present Councilman Dennis Vincenzi Present Councilwoman Harriet Rhodes Present Councilwoman Judith Lichter Present City Manager Jon Williams Present City Attorney Carolyn Ansay Present City Clerk Susan Wadsworth Present INVOCATION, PLEDGE OF ALLEGIANCE There was a silent invocation and pledge of allegiance to the Flag. 2. APPROVAL OF MINUTES There were no minutes to be approved at this time. 3. PRESENTATIONS/PROCLAMATIONS/PLAQUES/CERTFIICATES/DON ATIONS A. Janet Miller, President/CEO Act Corp., requesting financial support for $11,144 (cont. from 12/4/06, Item 9B) Janet Miller, Interim President/CEO Act Corp., commented on the memo she sent to the City Manager Williams with regard to the financial crisis situation ACT Corp. has experienced over the past year. Because some of the actions they have taken are taking longer and there aren’t immediate results, they still find themselves in need of assistance. She further commented on their request for assistance. She Page 1 of 52 Council Regular Meeting January 22, 2007 asked Council to please help them address this community asset. Mayor Thomas commented on being at the VCOG meeting where Ms. Miller previously spoke. He thought all of the other cities have either pledged or paid their money to ACT. He feels this is a worthwhile cause and they need to do it. Councilwoman Lichter pointed out that Edgewater and New Smyrna were about the same due to both cities populations being similar. She asked if the amounts that have been set were set by ACT or if it was based on what has been given in the past. Ms. Miller stated it is based on the population of the cities. Councilwoman Lichter commented on attending ACT meetings over the past nine years. They may have the same population as New Smyrna but Edgewater doesn’t have the same tax base. She feels they should definitely give something and she asked City Manager Williams if that is the amount they could give. She asked if it should be divided and if our tax base should be taken into consideration. City Manager Williams stated when the City Managers discussed a formula to come up with funding, it was decided that population was the best mechanism to determine how they allocate each city’s portion. Councilwoman Lichter questioned if they had the $11,144. City Manager Williams informed her Council approved two additional police officers for FY2007. To date those positions remain unfilled. He suggested if Council chooses to fund it that they look at the savings from October, November, and December, reallocate those moneys and they fulfill the pledge and they have enough money should they so choose. Councilwoman Rogers doesn’t like the idea when they planned to hire two additional police officers to take one of those positions away with the needs of the City. Mayor Thomas informed her they weren’t taking it away. It is the three months that they haven’t been here that they already approved them and the money has not been spent. Page 2 of 52 Council Regular Meeting January 22, 2007 Councilwoman Rogers commented on taking money from one place and shoving it to the next. City Manager Williams stated they are reallocating it. Mayor Thomas stated they better learn how to do that because of their expenditures. Councilwoman Lichter stated in a sense it is almost the same objective because the two police officers might not be as needed if they take care of the problem before it happens. If the Chief is willing, she would be for it. Councilwoman Rhodes asked where Daytona was on the list. Ms. Miller informed her she hadn’t heard from Daytona. She initiated contact with Mr. Chisholm again today. Councilwoman Rhodes pointed out Deltona had only given half. Ms. Miller stated not all the cities did do their per capita amount but that was the request that was voted upon by the City Managers/County Managers. Councilwoman Lichter asked if it would be better to divide it into two different times and give part now and part later. City Manager Williams informed her that would be a question for Ms. Miller in terms of her funding requirements. Councilwoman Lichter asked Ms. Miller if it would be as effective that way. Ms. Miller informed her it probably could be. The advantage of the City giving the dollars to them in total is that they can leverage those dollars to get the match from the County. Councilman Vincenzi stated ACT Corp. is one of those organizations everybody hears about, nobody knows what they do but as soon as it disappears everybody notices. He feels this is a worthy cause. He would vote to donate the entire amount. Councilwoman Lichter made a motion to give the ACT Corp. the requested financial amount they have asked for of $11,144 which subject matter was continued from 12/4/06, Item 9B, second by Councilman Vincenzi. The MOTION CARRIED 4-1. Councilwoman Rogers voted NO . Page 3 of 52 Council Regular Meeting January 22, 2007 Councilwoman Rogers voted no because of what the City is going through budget wise. She could not vote with a clear conscience on this knowing they have issues currently within the City and that is where her loyalty stands. 4. CITIZEN COMMENTS The following citizens spoke: Dot Carlson , 1714 Edgewater Drive, President, on behalf of ECARD, stated she was present to monitor any discussion of the lawsuit filed against the City over the recently adopted Charter height amendment. As sponsor of the amendment, it is ECARD’s intention to join the City as an interverner in the case and their attorney has communicated their intention to defend with the City Attorney. They are convinced the Charter amendment is completely lawful and fully expresses the will of the citizens of Edgewater and that the Council is empowered and obliged by the City Charter to defend it against a legal challenge. Since the plaintiff’s proposed development in this case is admittedly full vested and therefore not impacted at all by the new height cap, they must conclude their intention in pursuing this lawsuit is to challenge the height cap. They question whether or not they have legal standing to pursue the suit and that at the very least they will waste thousands of taxpayers’ dollars in doing so. Ms. Carlson commented on a photo Council received of a damaged gopher tortoise. Mayor Thomas asked when it was taken and where. Ms. Carlson informed him the photo was taken in Titusville and was sent to her by Ray Ashton. She feels they need to do to stop incidental takes in the City of Edgewater. It is being done in other cities and counties. This is cruel. This gopher tortoise died instantly. The ones that are buried alive do not die instantly. Mayor Thomas asked Ms. Carlson if she was aware that the State already has laws in effect and the County is coming up with another set of laws, more stringent. Ms. Carlson informed him she knew. Mayor Thomas commented on needing to enforce the law. JoAnne Sikes , 125 E. Palm Way, stated she was there to speak for support for the library, for buying the property. It is an opportunity she hopes the city does not pass by. Page 4 of 52 Council Regular Meeting January 22, 2007 She knows finances are not always there. They built that library with grants. They might think about getting grants and purchase and rebuilding. She feels they need to do something now before the buildings cost more in the future. She hoped the Council would consider this. The library is their children’s future. They worked hard to get it. They solicited all over the City and stood on street corners to get the grant. She would be willing to do that again to fight to keep the library and give a place for it to grow. If it wasn’t a busy library that would be different but it is with one of the largest children’s programs in Volusia County. The children going to that library are Edgewater’s future. Dominic Capria , 606 Topside Circle, stated since they terminated the high paying job of $50,000 at the animal shelter, he was of the opinion they are going to go back to the volunteers who he feels do a great job. He found there was an application to hire another person again depending on experience anywhere from $17,000 to $42,000. He would like to ask why. Mr. Capria then asked about the debt schedule and the $500,000 for the animal shelter that the voters voted for. It looks like they have spent $30,000 on deletions, which leaves them $470,000. He asked if he was reading it wrong. City Manager Williams wasn’t sure where Mr. Capria got his information on the application that is out there. They have authorized to fill an animal control officer’s position. His figures and Mr. Capria’s don’t quite add up. Mr. Capria informed him he got the application on the desktop at City Hall. City Manager Williams was only aware of the animal control officer position that is out there. City Manager William stated as far as the debt service, he informed Mr. Capria he was correct in what he was interpreting. The City incurred $500,000 more debt and every year they make debt service payments or principle payments and that was the principle payment associated with that debt so it is paying that debt down each year. Mr. Capria stated so they are saying that debt service principle is going to get lower every year. City Manager Williams stated they have $550,000 in the bank that they are holding. Page 5 of 52 Council Regular Meeting January 22, 2007 Carol Ann Stoughton , 2740 Evergreen Drive, commented on the debt schedule. Most people here don’t realize that this City over the past six years has been in serious financial debt. First showing $69 million and now we are $45 million. The $500,000 that has been allocated to the shelter is only $470,000 in there as she sees it. The sheet was provided by City Manager Williams after the last regime of the last Mayor and under the last regime of the last City Manager. They knew there was a lot going on and nobody would give them answers. She feels the people should know that we are not a solid City to go out and purchase this, add on to this, build that. We are still paying for stormwater drains and still paying Mr. Hooper’s firm. She feels someone should come along and demand an attorney general audit and investigation as to what has been going on over the past five or six years. Ferd Heeb , 115 N. Riverside Drive, commented on a community he stayed in in Lake Worth that was very similar to Florida Shores. They had a major north/south corridor on each side and east west side streets and it is a long corridor. They had a similar problem that we are facing daily, which is increased traffic in these residential areas and speeding. The way they solved it is they installed engineered speed bumps. He had to drive in and out of that community three or four times a day for four or five days and they were not an inconvenience. All of these communities are being faced with the same problem in Florida. Mr. Heeb stated he has the impression that the citizens of Edgewater when they voted down the exception to the 35-foot height limit were sending this government a message that they didn’t want to trust decisions to the Council. They have appointed themselves as the City’s Planning & Zoning Committee. He recommended the City put on the ballot to start with the hospital. He gets the impression people want to look at each item that would exceed the 35-feet. 5. CITY COUNCIL REPORTS Councilman Vincenzi had nothing at this time. Councilwoman Rhodes would like the Police Chief and City Manager to look into the speed bumps. Councilwoman Lichter stated she received a call from a gentleman in Florida Shores who was very concerned about a Page 6 of 52 Council Regular Meeting January 22, 2007 large truck that was in front of his home on the City right-of-way for a considerable length of time and a gigantic boat in the driveway. She went and took a look at it and it did seem excessive to her and a problem. She reported it to Assistant City Manager Liz McBride and she assumed she was going to tell Code Enforcement. He was afraid to call Code Enforcement because of the repercussions in terms of this particular neighbor. He thought he had to divulge his name. She asked when they call if they have to divulge their name. City Manager Williams informed her no. Councilwoman Lichter stated a while back they had a plan where if police officers happen to be going down a street and they saw that there was such an obvious infraction for a length of time they might be able to call it in as well as other City employees and Code Enforcement. She asked if this was still in effect. City Manager Williams informed her they still participate. Councilwoman Lichter felt this should be known to the Council too if they just came on board. It’s not just on a complaint that violations have to be followed through on. It can be done by other people. She feels that will broaden the base to help with the problem. Councilwoman Lichter stated in 60 days the final decision will be made on the Water Authority. At last Wednesday’s meeting, a very important presentation was made and a particular draft document that was worked up by all the Managers. They presented a new document. The end result is that there are several verbiage changes that were suggested from the Managers reconstruction of WAV. Previously she was on the Water Alliance and that was just planning, not implementation. The WAV Group has up to now been not only planning but planning for implementation. They have gone through a very extensive study with an engineer and listed the projects after months of planning them. However, there are some managers in a couple of cities that think it is premature in the set up of things for the Water Authority to think it is going to be a water provider, that it should still go more to the planning type of regression. That is what the Managers came up with. More flexible in that all cities would not be involved with all projects and have to kick in some money. What is presented by the Managers would be in her opinion, but she voted for it because she doesn’t want to see the Water Authority go totally away, a watered down Water Authority. Page 7 of 52 Council Regular Meeting January 22, 2007 However it is still a water authority with the potential in the future of having more strength. In the 60 day time period that is involved, she will put the newest draft once our attorney, who is also the attorney for the Water Authority, the verbiage will be up to date, all complete and what she has to vote in 60 days yes or no on. She would put it in the City Manager’s office for everybody to look at. It provides flexibility. There will be two kinds of members, those that will be involved directly with the project and those that will at that moment have a different status, they will not have to kick in money. Yes it will be cheaper and the formula will not be the same. She will vote for it because she doesn’t want to see it go away. It is still communication and still very much going to emphasize conservation. It will be an umbrella group with St. John’s if a group needs to apply for federal money. Some cities will pull out because they don’t think it is strong enough and they are working on their own projects. She feels they shouldn’t pull out because there is nothing else in its place. She informed Council that if they needed to talk to City Manager Williams he is familiar. This will be voted on in March. Councilwoman Rogers stated in light of a recent article that came out in the newspaper and also to make some comments regarding Mrs. Sikes comments regarding the library. She finds it interesting that the library we have currently was built with grants. The property that they are going to be potentially looking at, at the last Council th meeting on January 8, the lady that got up and spoke regarding the library indicated that the Friends of the Library are going to work together to put together a building fund drive and that they will be looking to receive matching funds. Those are the types of things she heard and it was to be a long-range plan. The article in the newspaper almost sounded as if the City Council approved something and they didn’t know how much something was going to cost and they blindly approved it. They didn’t blindly approve anything other than to allow the City Manager to begin negotiations and make an offer. The gentleman that was interviewed and the statements that were made in the newspaper were inaccurate. Councilwoman Rogers then followed up on Mr. Heeb’s comment about the hospital. After their brief meeting with the Economic Development Board, that did seem to be a concern. She spoke with Mr. Lott as well as the gentleman that Page 8 of 52 Council Regular Meeting January 22, 2007 represents Bert Fish and she told them if Bert Fish wants to do something in this City, why are you stopping. Go forward, come back, talk to the Council and then they will go back to the citizens for that specifically. She didn’t think the citizens would turn something like that down. 6. CONSENT AGENDA There were no items to be discussed on the Consent Agenda. 7. PUBLIC HEARINGS, ORDINANCES AND RESOLUTIONS st NOTE: The 1 Readings of Items 7A through 7F were held nd November 6, 2007. The 2 Reading is now scheduled for February 5, 2007. These items are listed on the agenda for continuance to a date certain to save the cost of re- advertising in the newspaper . nd A. 2 Reading, Ord. No. 2006-O-35, Mark Karet, agent for Edgewater Airpark, LLC, requesting an amendment to the Comprehensive Plan Future Land use Map to include .60+ acres of property located at 1840 Airpark Road as Commercial (small scale comprehensive plan amendment) City Attorney Ansay read Ord. 2006-O-35 into the record. Councilwoman Rhodes moved to continue Ord. 2006-O-35 until February 5, 2007, second by Councilwoman Lichter . The MOTION CARRIED 5-0 . nd B. 2 Reading, Ord. No. 2006-O-36, Mark Karet, agent for Edgewater Airpark, LLC, requesting an amendment to the Official Zoning Map to include .60+ acres of property located at 1840 Airpark Road as B-3 (Highway Commercial) (rezoning) City Attorney Ansay read Ord. 2006-O-36 into the record. Councilwoman Lichter moved to continue Ord. 2006-O-36 until February 5, 2007, second by Councilwoman Rhodes . The MOTION CARRIED 5-0 . nd C. 2 Reading, Ord. No. 2006-O-38, Tom Valley, agent for PC Capital, LLC, requesting an amendment to Page 9 of 52 Council Regular Meeting January 22, 2007 the Comprehensive Plan Future Land Use Map to include 3.67+ acres of land located east of Old County Road, north of Pearl Street as Medium Density Residential (small scale comprehensive plan amendment) City Attorney Ansay read Ord. 2006-O-38 into the record. Councilwoman Rhodes moved to continue Ord. 2006-O-38 until February 5, 2007, second by Councilwoman Lichter . The MOTION CARRIED 5-0 . nd D. 2 Reading, Ord. No. 2006-O-39, Tom Valley, agent for PC Capital, LLC, requesting an amendment to the Official Zoning Map to include 3.67+ acres of land located east of Old County Road, north of Pearl Street as R-4 (Multi-Family Residential) (rezoning) City Attorney Ansay read Ord. 2006-O-39 into the record. Councilwoman Lichter moved to continue Ord. 2006-O-39 until February 5, 2007, second by Councilwoman Rhodes . The MOTION CARRIED 5-0. nd E. 2 Reading, Ord. No. 2006-O-40, Tom Valley, agent for PC Capital, LLC, requesting an amendment to the Comprehensive Plan Future Land Use Map to include 1.1+ acres of land located east of Old County Road, north of Pearl Street as Medium Density Residential (small scale comprehensive plan amendment) City Attorney Ansay read Ord. 2006-O-40 into the record. Councilman Vincenzi moved to continue Ord. 2006-O-40 until February 5, 2007, second by Councilwoman Rogers. The MOTION CARRIED 5-0 . nd F. 2 Reading, Ord. No. 2006-O-41, Tom Valley, agent for PC Capital, LLC, requesting an amendment to the Official Zoning Map to include 1.1+ acres of land located east of Old County Road, north of Page 10 of 52 Council Regular Meeting January 22, 2007 Pearl Street as R-4 (Multi-Family Residential) (rezoning) City Attorney Ansay read Ord. 2006-O-41 into the record. Councilwoman Rogers moved to continue Ord. 2006-O-41 until February 5, 2007, second by Councilman Vincenzi . The MOTION CARRIED 5-0 . st G. 1 Reading, Ord. No. 2006-O-44, City of Edgewater requesting an amendment to the Official Zoning Map to include 17.63+ acres of land located southwest of Edgewater Lakes Subdivision Phase 1a (Northstar Lane) as P/SP (Public/Semi-Public) (rezoning) continued from 12/4/06, Item 7E) City Attorney Ansay read Ord. 2006-O-44 into the record. Development Services Director Darren Lear made a staff presentation. Mayor Thomas opened the public hearing. The following citizens spoke: Karen Mason , 1847 Coco Palm Drive, stated in an effort to save time, she wanted to beg the Council to go forward. It is four years to this point just to change the land. There are many citizens that want this built that want these animals taken care of. She asked everybody in the audience who was in favor of getting the shelter built and urging the Council to move forward to please stand up. They asked that Council take the direction that was voted on four years ago and move on it. Dot Carlson , 1714 Edgewater Drive, representing ECARD, agreed that people voted on it and this should be done. This is a very needed thing. Leo Towsley , 2828 Unity Tree Drive, wondered when it would be built. It has been two years since it was voted on. He didn’t vote for it. Mr. Towsley stated they were told when it came up for a vote that it was supposed to be run by all volunteers and then they hired the Animal Services Director at $50,000 a Page 11 of 52 Council Regular Meeting January 22, 2007 year. He asked what would happen now since she is gone and they do build it. Will it be ran by volunteers or are they going to wind up paying someone to take care of it again? Councilwoman Lichter stated right now volunteers are running it. Mr. Towsley asked what would happen in the future. They were told this from the very beginning, which is why he thought everybody voted on it. They were told everything was supposed to be all volunteers and then they turn around without saying anything and hire someone to run it. He asked if this is something they are going to get stuck with paying somebody or more people eventually or more volunteers or no volunteers. He mentioned the Animal Services Director being fired over a volunteer complaining of her actions. He commented on the City wanting to bring in a veterinarian. He questioned what veterinarian is going to want to step up shop where the shop is being run by volunteers who if they complain to the City Manager is going to lose their whole job. He asked what is happening there because of the price going up. Trish Whitaker , 3124 Pine Tree Drive, ex-volunteer for the Animal Shelter, stated she was told some of the Councilmembers don’t want the animal shelter so they are planning on putting it up for a vote and that is another reason is it taking as long as it is. As far as where the shelter is heading, they want to know by the volunteers. They discussed with the Mayor about the plan with the veterinarian. As far as she knows it is a good plan and a solid plan. The veterinarian will be paid not by the city. She asked where it is heading. Mayor Thomas felt they had strayed way off the subject. They need to vote on the rezoning. He agreed to talk about the animal shelter later. Mayor Thomas entertained a motion. Councilwoman Rogers stated this item that is in front of them tonight is as the Mayor has indicated, rezoning. She has been instructed that they are more or less obligated to do the rezoning because this property is not just for the animal shelter proposed to be built. It is also for the utilities and they need to get that on the ball. City Manager Williams confirmed that was correct. Page 12 of 52 Council Regular Meeting January 22, 2007 Councilwoman Rogers stated and they cannot deny or put that off any longer unless they had, according to legal terms, substantial evidence to put that off. Therefore to vote on this tonight, put aside in their mind the animal shelter issue and go back and think it is because of the reclaimed water facility that is at this site. Councilwoman Rogers addressed Ms. Whitaker. She mentioned that she heard here were some Councilpeople. She stated the citizens voted for something awhile back, the $500,000. What the citizens voted for the citizens should get but a lot of things have changed. In the next few weeks they will be taking about this more. She at this point with the $500,000 that should have been spent and what should have been done and it’s not been done, she isn’t in favor of it. She was probably one of those that rumors ran around. If it would have been done according to the way the citizens were told it was to be done, she would be for it. That is not what has happened. This land cost the City money. If you take a percentage of this land and allocate the money that was used to purchase this, then you would start ticking along and realizing that the $500,000 some of it has been spent. She has asked for quantified breakdowns of that. They haven’t gotten that yet. She has a good idea what it is she is just waiting for the ball to drop and waiting for the rest of the things to occur as it should. Recently she received a phone call about an article in the Hometown News this weekend where a veterinarian had told Mayor Thomas that they would need to have an additional $1.5 million spent on a facility adjacent to the proposed animal shelter in order to accommodate him for his proposed management services that he would be providing to the shelter. She hasn’t heard any of this other than what she read in the paper and what a citizen called and was asking her. She was trying to say stay tuned, it’s coming. She wanted to explain her position. If they hear rumors and they want to get the facts, call the person directly and then maybe by them explaining themselves they will know it is a little different than what they heard. Councilwoman Rhodes moved to approve Ord. 2007-O-02, City of Edgewater requesting an amendment to the Official Zoning Map to include 17.63+ acres of land located southwest of Edgewater Lakes Subdivision Phase 1a (Northstar Lane) as P/SP (Public/Semi-Public), second by Councilman Vincenzi . The MOTION CARRIED 5-0 . Page 13 of 52 Council Regular Meeting January 22, 2007 st H. 1 Reading, Ord. No. 2007-O-02, Bishop Thomas Wenski requesting an amendment to the Comprehensive Plan Future Land Use Map to include 9.97+ acres of property located at 2310 S. Ridgewood Avenue as Commercial with Conservation Overlay (small scale comprehensive plan amendment) City Attorney Ansay read Ord. 2007-O-02 into the record. Development Services Director Lear made a staff presentation. Cynthia Raleigh , Baker Hostetler LLP, for Diocese of Orlando, supports staff’s recommendation and they were available to answer any questions. Mayor Thomas opened the public hearing. Councilwoman Lichter asked about the properties that were down a little further. Mr. Lear informed her it was just south of Riverside Bank. Councilwoman Rhodes asked if they want to build a church there does it have to be zoned commercial. Ms. Raleigh informed her there were no development plans at this time. Councilwoman Rhodes informed her she knew and was asking Mr. Lear. Mr. Lear informed her it was permitted in the proposed designation they would see after this it would be permitted. Councilwoman Lichter asked about the height. Councilwoman Rhodes stated that is covered in the Charter. She commented on churches not paying taxes. She feels if it is zoned commercial and they decide down the road to sell it, does that benefit the City tax wise whereas if they don’t zone it commercial and they don’t sell it. If it’s not zoned commercial and it is zoned public/semi-public and they don’t build a church there, that land value is less than if it was zoned commercial. Mr. Lear informed her as long as they own it they don’t pay taxes. Councilwoman Rhodes stated but the zoning is going to go with the resale. If they sell it in the future what is to our benefit is that it is zoned commercial. Mr. Lear informed her it takes an extra step out of the way. If they went to public/semi-public right now and they sold the land to Page 14 of 52 Council Regular Meeting January 22, 2007 someone that wanted to develop it commercially they would have to come back to Council. Councilwoman Rhodes stated but if they built the church, would it not be better to zone it public/semi-public. Mr. Lear stated it would be permitted in commercial. City Manager Williams stated the best decision is to zone it commercial rather than zoning it public/semi-public. The following citizens spoke: Kathleen Sayre , 11 Silver Circle, was opposed to this being changed to commercial property at this time without knowing if they are going to do something. She would like to know if they are planning on selling it and what type of thing they would be putting in there. Her property abuts this in the back and she wouldn’t want something like loud speakers and lights in her neighborhood. She would have no problem with it if they put a church in there. She didn’t feel they should change it until they know what they are going to do. Ms. Sayre pointed out where she lived on a map. Charles Martin , Sea Gull Court, stated his main question was on the listing they said they are going to have some sort of a conservation corridor and asked what that meant. He asked how much of the property is going to be in the conservation corridor. Mr. Lear explained with the conservation overlay they are required to do an environmental study on the property. Councilwoman Rogers stated he is talking about a buffer, an area where they aren’t going to build, like a 100 feet from the boundary line. Mr. Martin commented on the retention area and the area that drains into that lake. He wanted Council to be aware before anything else goes too much further. Councilwoman Rogers stated it currently says they don’t have a plan so they don’t know what is going to go there. Mr. Lear stated they are required a fifty foot setback when adjacent to residential zoning or use. In that buffer they are also required a certain amount of shrubs and tree and possibly a masonry wall depending on what plan they bring in. City Manager Williams stated they have provisions in the Land Development Code that Mr. Lear had just pointed out that helps provide a buffer. Page 15 of 52 Council Regular Meeting January 22, 2007 Councilwoman Lichter stated it seems to her highway commercial is basically on U.S. #1. Mr. Lear stated that is why they have the request in front of them tonight due to the frontage along U.S. #1. Councilwoman Rhodes felt it should be commercial due to U.S. #1 being all commercial. It’s got to fit. Mayor Thomas closed the public hearing and entertained a motion. Councilwoman Lichter moved to approve Ord. 2007-O-02, Bishop Thomas Wenski requesting an amendment to the Comprehensive Plan Future Land Use Map to include 9.97+ acres of property located at 2310 S. Ridgewood Avenue as Commercial with Conservation Overlay, second by Councilman Vincenzi . The MOTION CARRIED 5-0 . st I. 1 Reading, Ord. No. 2007-O-03, Bishop Thomas Wenski requesting an amendment to the Official Zoning Map to include 9.97+ acres of property located at 2310 S. Ridgewood Avenue as B-3 (Highway Commercial) (rezoning) City Attorney Ansay read Ord. 2007-O-03 into the record. Cynthia Raleigh , Baker & Hostetler, stated they agree with staff’s recommendation on this one as well but they also want to stress there are no development plans at this time. The diocese owns the property and it has no plans to sell it either right now. Any development that is going to happen on the property has to comply with code and setbacks that were mentioned by Mr. Lear. They are going to take into consideration the neighbors of the property. Due to there being no comments, Mayor Thomas opened and closed the public hearing and entertained a motion. Councilwoman Rhodes moved to approve Ord. 2007-O-03, Bishop Thomas Wenski requesting an amendment to the Official Zoning Map to include 9.97+ acres of property located at 2310 S. Ridgewood Avenue as B-3 (Highway Commercial), second by Councilman Vincenzi . The MOTION CARRIED 5-0 . Page 16 of 52 Council Regular Meeting January 22, 2007 There was a ten-minute recess at this time. The meeting recessed at 8:20 p.m. and reconvened at 8:30 p.m. st J. 1 Reading, Ord. No. 2007-O-01, amending the Land Development Code to include language pertaining to the Proportionate Fair Share Program to mitigate transportation impacts on development City Attorney Ansay read Ord. 2007-O-01 into the record. Development Services Director Lear made a staff presentation, which consisted of a Powerpoint Presentation. Mayor Thomas stated so what the legislature has told them is no pay, no grow. Councilwoman Lichter stated maybe they should hear from Mr. Wadsworth at a different meeting because there are certain dates that apply to water compliance, etc and plans and different dates that cities have to submit. She would like to be brought up on the water situation too. Mr. Lear informed Mayor Thomas he had those dates. Mayor Thomas stated the legislature has put it in and the City has to comply with it. Due to there being no comments, Mayor Thomas entertained a motion. Councilwoman Rhodes moved to approve Ord. 2007-O-01, amending the Land Development Code to include language pertaining to the Proportionate Fair Share Program to mitigate transportation impacts on development, second by Councilwoman Lichter . The MOTION CARRIED 5-0 . 8. BOARD APPOINTMENTS A. Animal Control Board: 1) Nomination by Councilwoman Rogers to fill a vacated seat due to the expired term of Karen Mason who seeks reappointment (continued from 1/8/07) Page 17 of 52 Council Regular Meeting January 22, 2007 Councilwoman Rogers moved to reappoint Karen Mason, second by Councilwoman Rhodes . The MOTION CARRIED 5-0 . 2) Nomination by Councilman Vincenzi to fill a remaining term due to the resignation of Pam Black Councilman Vincenzi moved to nominate Robin Feger, second by Councilwoman Rhodes . The MOTION CARRIED 5-0 . 3) Nomination by Councilwoman Rhodes to fill a vacated seat left by Debrah Brazzell who is not interested in reappointment Councilwoman Rhodes moved to nominate Barbara Eldridge, second by Councilman Vincenzi . The MOTION CARRIED 5-0 . 9. OTHER BUSINESS A. Property Exchange (Land Swap) – staff recommending approval of an exchange of equal size property within ParkTowne Industrial Center between the City of Edgewater and McCracken Properties, LLC, with execution by the Mayor City Manager Williams made a staff presentation. Councilwoman Rhodes felt this was a win-win situation. Councilwoman Lichter asked if that had to be recommended by Planning & Zoning. They aren’t involved with land swaps. This is the first one she has seen in nine years. Mayor Thomas entertained a motion. Councilwoman Lichter moved to approve the exchange of equal size property within ParkTowne Industrial Center between the City of Edgewater and McCracken Properties, LLC, with execution by the Mayor, second by Councilwoman Rogers . Page 18 of 52 Council Regular Meeting January 22, 2007 The MOTION CARRIED 5-0 . City Manager Williams informed Council he wanted to discuss an additional property swap and ask Council to authorize Mayor Thomas to execute a property swap at some point in the future once the costs are determined for related infrastructure to provide access to these properties that McCracken Properties LLC owns. He pointed out where the infrastructure ends. The City sold Mr. McCracken these pieces of property and they should have provided associated roadway network and utility infrastructure. With that comes some cost and the City did not make any provisions for that cost. What Mr. McCracken is willing to do is he is willing to exchange an equal amount of property at the appraised value of $70,574 and the estimated cost today is about 2.2 acres and he will install the roadway network and related infrastructure and turn it back over to the City. In an effort to save some time and to allow him to proceed with his project, he asked Council to authorize the Mayor to execute the property swap at some point in the future once the infrastructure is in place. They will determine that cost and bring back an agreement and he can sign it and they will update Council on that. Councilwoman Rhodes stated the answer is yes. City Manager Williams informed her he needed that in the form of a motion. Councilwoman Lichter stated if this was an ordinance, it would have to be listed and the public would be allowed to come. Since it is not they are going to make that determination anyway. City Manager Williams informed her they are only going to authorize the Mayor to execute the exchange. Councilwoman Lichter stated she would be in favor of it. Mayor Thomas entertained a motion. Councilwoman Rhodes moved to authorize the Mayor to complete a land swap once the infrastructure is in place, second by Councilwoman Rogers . The MOTION CARRIED 5-0 . Councilwoman Lichter asked what would happen with the FIND fill land that is five football fields. City Manager Page 19 of 52 Council Regular Meeting January 22, 2007 Williams informed her they have identified it as a potential site for a park but there is no definitive plans in place at this point in time. B. Edgewater Harbor PUD Agreement – discussion of the Project and pending issues City Manager Williams informed Council of an e-mail communication he had received from Kevin Donaghy outlining some various obstacles that he feels like the City has placed in front of his project therefore causing unnecessary delays. He felt this was something that needed to be addressed by the Council. The real issue at hand is they have come to a gentleman’s disagreement over the impact fees and the manner in which they will be paid. He has provided them with an update prior to this point. He thinks the PUD agreement specifies specifically how those impact fees will need to be paid. Council was advised of staff’s interpretation of the PUD agreement. At such time, they provided City Attorney Ansay an opportunity to bring herself up to date with regards to the PUD agreement. Today they still have a difference of opinion on the way in which those impact fees need to be dealt with and paid. He allowed Mr. Donaghy an opportunity to come before Council and address it and then Mr. McMillan will provide some dialogue with that as well. Hawk McMillan , Managing Member, Edgewater Harbor, stated they have 60 acres on the south border of the City that they are trying to develop and they need clarification of the City’s position with regards to the Edgewater Harbor project. They have been diligently working on this project and to date have spent $8,524,000 and they have become very concerned with regards to the City’s changing interpretation of the PUD agreement between the City and Edgewater Harbor. He would like clear answers from the Council on whether or not the City wants this project to go forward and if the City is willing to act in good faith consistent with their agreements and prior course of dealing. Respectively Edgewater Harbor needs answers to the following questions. Will the City review their site development plan, which has been completed and submitted to the City has of November 22, 2006. Allow Edgewater Harbor to develop their project in phases as set forth in the PUD agreement. Page 2 in the original and revised PUD Agreement allows them to pay their water & sewer impact fees upon approval by phase. Previously when they had Page 20 of 52 Council Regular Meeting January 22, 2007 submitted their site development plan to the City for the first phase of the mid-rise condominium project the City allowed the project to be developed in phases per the PUD. Review and approve the site development plan prior to requiring water & sewer impact fees and after approval of the site development plan only require the impact fees for the phases being developed. None of the language regarding the impact fees changed from the original version of the PUD agreement to the amended version PUD agreement. They are only looking for the same treatment they received before. That is not what is happening. The disagreement that City Manager Williams is talking about is a major disagreement and they are here today because they have a major disagreement with City Manager Williams. City Manager Williams has told Edgewater Harbor the following. Their site development plan will not be reviewed prior to Edgewater Harbor paying wastewater and sewer impact fees. This is different from their prior course of dealing. Wastewater & sewer impact fees have to be paid for all phases of the development, 450 units, before the site development plan will even be reviewed. City Manager Williams has publicly stated that Edgewater Harbor owes $2.6 million for wastewater & sewer impact fees, when the figure is based over the development of 580 units, not the 450 units awarded here on April 3, 2006 for Edgewater Harbor. According to the calculations received from City Manager Williams on January 3, 2007 the impact fees for 450 units should be $1.7 million less the $100,000 received by the City. This is a minor difference of only $1 million. City Manager Williams’ position now is even if they reduce their reservation of water & sewer down to the phase I development of 142 units they will be required to pay the wastewater impact fees for the entire project. When they were first before the City, the City required payment of the first phase of their development. Then it was 154 units and required impact fees of $539,000. The first phase of their revised project is 142 units. City Manager Williams and his staff calculated impact fees for them on January 3, 2007. According to the e-mail City Manager Williams handed them the water and sewer impact fees for 142 units is $529,000 less the $100,000 already paid. He then referred to the e-mail in the package from Donna Nichols to Liz McBride calculating the impact fee for $529,000, the net amount of $429,000 if the PUD was followed and consistent with their prior dealings with the City. $429,000, not $2.6 million. This is a major difference. He was glad to be back in front of the Council Page 21 of 52 Council Regular Meeting January 22, 2007 as this issue needs to be settled and settled now. Edgewater Harbor has worked in good faith and with diligence to develop this project. This is a different project than the one they had before and they require a different DEP application for reservation of water & sewer. When they were before the City previously, they obtained their commitments on their site development and then applied for reservation with DEP. The City has to sign their application with the DEP. To them this just looks like a stall tactic to put them back behind their construction deadline. He then presented a history of the project dating back to the Fall of 2003. Mr. McMillan commented on the hurricanes that occurred in 2004 and how they seriously impacted every real estate development, including Edgewater Harbor, with regard to construction costs. Because of that he came back to Council on April 3, 2006 with a revised proposal for their PUD. They believe it was a better project that better suited the City, both from an affordability and feasibility perspective and a project with a lower overall residential height, which seems to be the direction the Council has been going to. They took their height from 95 feet to 50 feet. Their current project submittal has their height at only 41 feet, which is only six feet over the 35 feet the City is looking for. They dropped it down an additional 9 feet. They dropped from 580 units to 450 units. They agreed at that meeting, at the insistence of Councilwoman Rogers, to despite their previous agreement that they would take the cost sharing agreement that was supposed to be the City with Boston Whaler for $500,000. They were satisfied with the revised PUD agreement despite having their project on multiple occasions being called the lesser of two evils, which at times gave him cause for concern. As he stands before the Council today, it causes him much greater concern. It is important to note the revised PUD agreement also calls for the project to be developed in phases. The language regarding sewer and water impact fees is identical in both the original and the revised PUD agreements. On rd the aftermath of the April 3 meeting, they spent over $300,000 on design, engineering, legal fees, management time and expenses working on their marina application. In order to establish how many slips the City could have, Edgewater Harbor paid to have the entire shoreline of the City of Edgewater surveyed. They paid for it. He knows of no other developer who has ever done that in his twenty- eight years of doing this. They are talking concurrency. Page 22 of 52 Council Regular Meeting January 22, 2007 They paid for that. He commented on who they hired and people they met with from St. John’s. They continue to th press forward with their applications. On March 28 they attended a St. John’s meeting and they started doing extensive redesign and reengineering of their project according to the amended PUD agreement. Mr. McMillan stated he wanted to talk about what he calls thnd the $32,900,000 extortion. On May 10 and May 22, Edgewater Harbor’s attorney Kevin Donaghy met with Darren Lear and City Manager Williams for the first time. They have been doing this for two and a half years and never had heard a word about this in two and a half years. Spending all this money, going along and all of a sudden they are told they had gotten 29 wet slips and 300 dry slips and they were told they needed to pay the City $100,000 per slip to purchase them. He spoke to a gentleman who has two marinas in Jacksonville and a dry slip there runs about $60,000 to $70,000. The $100,000 the City was telling him they had to pay, they forgot they had to build it, which would cost $6.5 million. If they were to build it at $22,000 a forty foot slip and then pay the City $100,000, they would negatively lose about $20 million. He didn’t think anybody in the world thinks that makes any sense. Then they were told they could pay the City a lease fee of $3 per foot, whether it was rented or not forever. That is $120 a slip forever and the City would be in charge of the marina they own. He went to the bank and asked if there was any way possible anyone would finance him to go build $6.5 million marina and that the first thing that has to be paid is the $3 per forty-foot slip, $120 a month whether it is rented or not to the City. They just about laughed him out of there. There is no way. He listed the surrounding towns they have contacted and nobody is doing that. It has never been done before. He appreciated that City Manager Williams wanted to bring in a little less than half a million dollars per year for the City but there is just no way. Economically you cannot do it. $32,900,000 that is ten times the cost of the land. You can buy a completed dry slip for $60,000 or $70,000 much less paying the City $100,000 and then having to build it for $22,000 a piece. He has never even heard of anything like that. They decided to press forward. At the same time the City is being sued by another developer here. He didn’t want to do that. They became a lot more skeptical. They were sort of worried the City was looking at the project as being evil and they were throwing up any road block they could come up Page 23 of 52 Council Regular Meeting January 22, 2007 th with. On the 30 they had another meeting and confirmed it would be $3 per foot whether the slip is rented or not forever. He was told yes. This effectively gutted any chance they had of building this dry stack marina. They tried to go forward and they redesigned the commercial portion of the project to move some of the commercial to U.S. #1 and relocate some of the residential to the eastern portion of the site. They were scheduled to go before the th Council on August 7 with a revised master plan. On the th afternoon of August 7, Darren Lear and City Manager Williams called them to inform them that any discussion of their project was going to be a discussion of lawsuits and that the climate of the castle was not right for obtaining amendments for the Council. Unfortunately he made the mistake of listening and withdrew their request. They decided they would take their design back exactly to where it was before if that was the case. They spent an additional million dollars to complete their site development plan. Their plan was completed and they turned it in in November and there it sits. It is a completed site development plan consistent with the PUD agreement and consistent with the original master plan. Mr. Lear, in his November letter informed them that the City had changed positions and that they needed to pay $2.6 million in impact fees. That figure was given to his bank. They had a million dollars more money to be giving the City for impact fees but the figure of $2.6 million, which was figured on 580 units, not the 450 units they had, and was rd given to them on April 3 was given to his bank and they decided not to give them the other million dollars. They took that away because he owed the City $2.6 million th according to the City. On December 4, City Manager Williams publicly stated Edgewater Harbor owes the City $2.6 million and they would not review the site plan. The incorrect pronouncements of the City’s attitude cost Edgewater Harbor its financing. They attempted once again rd to resolve this issue. They had a meeting on January 3 and talked about the new position on impact fees. They reiterated this was not their previous course of dealing and that the project was to be done in phases, all per the PUD agreement. Site development plan was reviewed prior to requiring impact fees and they stated their concern that the City was trying to take this away from them. He had two attorneys do research. These impact fees, they could state they run with the land. He could give the City $1.9 million and they could turn down his project and keep the money. He isn’t going to do that. He doesn’t have it to Page 24 of 52 Council Regular Meeting January 22, 2007 give to the City for the City to keep it and turn down his project. It’s not right and it’s not fair. He stated what he wanted to know was they discussed and said they would only reserve 142 units and they would take their chances. If they don’t have any more when they finish the 142 and want to go to the next phase they will wait until they get it or they will share in the cost of what it takes to bring it to there again. That is what they were told at that meeting. They were taking a risk and they were willing to take that risk. They know how much water and sewer the City has. If they lose okay that is fine. His project his first 142 units will be paid off and he will wait. He stated the fee for 142 units was calculated at $529,000. They have already paid the City $100,000. He wanted to pay $429,000 and he wanted to know if the City turns down his project if they are going to give him back his $529,000. He feels this is only fair. They are consistent with the 450 units. They are consistent with everything the City agreed upon. They have tried to make it exactly the way the City wants it to be and he feels that is only fair. He further commented on the difference between the original project and the revised project. He then mentioned having to go back to DEP because it is a different project. He wanted some good faith. He feels like that is only fair. The City invited them here. The City put it out for bid. He goes two and a half years and they never say a word about charging him anything for his dry stack marina for the slips. Nobody else is doing that. He has spent $8,524,000 trying to push the project. They are either going to go forward and if they will do what they have asked to look at this in phases, to work with them, let him pay them as they go, he will pay the $529,000 and they will start this project. That is what he wants to do. They can’t tear him up at the banks and give them a wrong number, blow him out there and then say no, give us the $1.7 million and they may not even give him the project and keep his money. He wants to go forward and build this project. If they can’t do it and they can’t settle this his only alternative is to file suit for damages and for equitable stoppable and for termination of vested rights with regard to their entitlements under the PUD agreement and to seek his attorney fees and costs. If that is the case, that is where he will be spending the $1.7 million. He knows it will be a long fight. He feels like it is only fair. He really wants to build this project. He spent three and a half years of his life at it. It cost him a Page 25 of 52 Council Regular Meeting January 22, 2007 marriage. He wished the City would be fair and honest in dealing with them. City Manager Williams informed the Mayor and Council they have heard one side of that story. What they have heard clearly is it is the City that has placed these hurdles in front of this development. He then went back to the RFP. This project was awarded to Mr. McMillan and his design team. That is a very critical component right there is the design team, based off of what advantages would be brought to the City. Since then, his design team has changed rather drastically and he has his new engineer present tonight, which was never approved by this Council. If you look at the amendment it clearly stipulates who that design team and project engineer is. That is probably problem number one that slowed the process down. Problem number nd two is Mr. McMillan didn’t describe to them that on May 2 rd or May 3 when Mr. Donaghy came in to meet with Mr. Lear and himself, Mr. Donaghy and Mr. McMillan have acknowledged the fact that those boat slips have value because Mr. Donaghy offered the City $40,000 a year for the City to turn over 332 boat slips out of 414 we have been allocated. That to him demonstrates there is a finite number of boat slips as a value to that. Prior to him being the City Manager, he was instructed by a previous City Manager to go out and research the cost for leasing boat slips and to pursue what kind of revenue streams that would bring back to the City. Mr. McMillan has described to Council that there is a value to the dry stack storages of $60,000 to $70,000. They had been advised at that time that they were worth $100,000 and they did present to him that if he wanted to purchase those that was the value they understood it was or since the had requested the City turn over those boat slips for an indefinite period of time, they said they would be happy to pursue some sort of lease obligation where the City receives some sort of benefit for the betterment of the whole City and go forward. As he has described it fell on deaf ears and then shortly thereafter he made the decision to terminate Katie Gierok from his design team and bring in the new gentleman and then they have before them the different revisions that have gone on. When he describes the August meeting in which he and Mr. Lear supposedly approached him and requested that he take that item off the agenda. It wasn’t anything he or Mr. Lear had approached him on. It was a member of his design team had dropped off the RFP with which the project was originally awarded to the City of Edgewater and they had Page 26 of 52 Council Regular Meeting January 22, 2007 made that determination to remove it for fear of what kind of political unrest it may cause and what kind of negative light that may shed on that project. They did have a number of different conversations regarding the impact fees. When the DEP permits and the Department of Health permits were issued they were issued for 600 units and that is what the calculation has been paid on. The reason being they are occupying space within the City’s water plant and the County’s wastewater plant for 600 units. As it states in the PUD agreement, impact fees are due upon the issuance of that permit. The issue he is describing is there were some previous discussions with the former City Manager with regards to phases and different things of that nature. He, today when they had conversation, acknowledged the fact that he may not be here some day or the Council may not be here some day and he acknowledged to him that the only thing they have left to go back on is the PUD agreement. The PUD agreement is silent to the fact of how you deal with those impact fees and the payment of such impact fees. That is what they have to go on. He can’t go back on what kind of agreement he may have had with Mr. Hooper or anything of that nature. That is where they have asked City Attorney Ansay to review the agreement. City Manager Williams stated then they had the meeting. He came in and they start talking about wanting to do this in phases and would the City be interested in allowing them to pay for impact fees on 142 units. It’s not something he is very comfortable with because clearly they have 600 units reserved at our water and wastewater capacity. That throws up some flags as to why all of a sudden they are willing to go back and pay for 142 units. They are trying to amend their DEP Permits. They left communication with Mr. Donaghy and Mr. McMillan that they would support payment for 450 units and that they would need to still go back and change their DEP permits and bring it back in line with what is approved in the PUD agreement. That is where they have gotten to in a very quick time frame and why they have settled on this agreement. Mayor Thomas commented on a discussion he had with Mr. Hooper about the Manatee Protection Plan with regard to the manatee slips were awarded to the City. He asked him how they are going to give them out. Mr. Hooper had the figure of $100,000 and City Manager Williams didn’t come up with that. Page 27 of 52 Council Regular Meeting January 22, 2007 Councilwoman Rhodes stated she thought he was saying Mr. Hooper had him research the figure when he was Finance Director. Mayor Thomas asked City Manager Williams if he came up with the figure. City Manager Williams informed him he came up with the $3 lease from what his research indicated to him. Councilwoman Rhodes remembered when that happened and she told Mr. Hooper do not give those away because that is a source of income and she knew it was a valuable source of income. City Manager Williams stated they know that other cities are pursuing a non-ad valorem assessment on these boat slips as a potential revenue source. Mayor Thomas informed him the $100,000 figure was before his time. Councilwoman Lichter stated this developer came in to them in good faith in the beginning. He had one of the most beautiful projects she ever saw. Maybe it was a little too high but it was gorgeous. She knows economic situations made a change. It took in commercial as well as the structures and it was beautiful. She didn’t understand what City Manager Williams was saying about the water being reserved. If they go to 142 units from 600 obviously you don’t need to save and say you can’t use that much water. It frees up a lot of water. City Manager Williams informed her right now they have permits issued for 600 units. They have to amend their permit. With regards to the comment that was made about the impact fees when Mr. McMillan brought that up he clearly told him that day it would not be his intention to ever keep his impact fees should his project not proceed forward and that the City would look at executing some sort of agreement where if that project didn’t go forward that those impact fees would be returned to him. The real big deal is they have 600 units reserved right now and that is space that is coming out of the City’s water plant. If another development comes along, they have to say there is water usage allocated for 600 units. Councilwoman Lichter commented on phases and believed they had done other projects in phases such as Edgewater Landing. She asked if that was a smart way to build in phases. City Manager Williams stated if Council is considering allowing them to proceed under some sort of phase, he would probably suggest they look at a performance Page 28 of 52 Council Regular Meeting January 22, 2007 bond of some sort to be put into the PUD agreement to guarantee that after 142 units they don’t walk away from the project. Councilwoman Lichter stated there was also some connection with Boston Whaler with this project and the smells. This project is much lower now than it was in the beginning. She asked if they paid Boston Whaler for that? City Manager Williams felt that was a silent issue as it relates to this development at this point in time. Councilwoman Lichter felt there had to be a way other than court that something could be worked out so the City doesn’t get hurt but that a person that has invested $8 million might be able to continue with the project. It is going to cost the City a lot to go to court and they don’t know how things turn out in court. She would think the word is try to work out something. City Manager Williams stated they attempted to do that this afternoon and were unsuccessful in getting that done. Councilwoman Rhodes asked what assurance they have if they do back off the impact fees and allow him to pay his impact fees for the 142 units, that they will finish the project. They need some assurance that that will occur. She informed Mr. McMillan he wasn’t going to get the boat slips for free. City Manager Williams stated $60,000 to $70,000 would be a great price. Mr. McMillan stated he would give them back to the City and that they could have them. He spent the $300,000 to get them for the City. It is his gift back to the City. They won’t make any claim on them if the City will work with them. Councilwoman Lichter didn’t want to negotiate the case here tonight. She didn’t think that was right. She thinks this is something City Attorney Ansay needed to look into. Mr. McMillan stated he would like Mr. Donaghy to address a few things City Manager Williams said. Kevin Donaghy , Edgewater Harbor, stated with regard to the phasing of the project, City Manager Williams is correct in that neither of the PUD agreements specifically state that the water & sewer impact fees for the entire project have to be paid at the time if they reserve them in phases. It does state the project can be done in phases. There is a slight ambiguity there. They would look at the prior Page 29 of 52 Council Regular Meeting January 22, 2007 course of dealing. Under the previous course of dealing this City with the same PUD agreement reviewed the project, reviewed their site development plan application in phases and required them to pay it for the first phase, for the 154 units. That is what they expected would be the same course of dealing for the revised project. Mr. Donaghy stated with regard to Gierok Engineering, they consulted the City Attorney who said if they wanted to change engineers they needed to send the City a letter. That is it and that is what they did. City Manager Williams is correct. They did offer $40,000 or $50,000 per year to the City after this discussion on boat slips. What he failed to mention was they had been to a meeting with th St. John’s on March 28 where St. John’s indicated that if they wanted to have a chance at this succeeding that they had to do something to mitigate water damage on the intracoastal. They basically said not to tell them they were going to put up 300 dry slips and 29 wet slips and there wouldn’t be some impact on the water. They were looking for some mitigation. He suggested they could kill two birds with one stone. They would allocate a portion of the revenue from the dry stack facility to be allocated to the City to be specifically used for mitigation of intracoastal pollution. Those slips were allocated to Edgewater Harbor in the PUD agreement and there was no discussion at all regarding fees. Maybe there should have been but there was not. Every other fee to this City is laid out there in detail. $500,000 per year, which is what the rental rate offered that would dwarf the purchase price of the land. That was not overlooked. Edgewater Harbor was granted those slips. Apparently Mr. McMillan is willing to entertain an agreement. They can’t make it economically feasible based on what has been proposed to them. They would like to go forward with the project. They just want some assurance. They would like the prior course of dealing. The impact fee portion of the agreements did not change so they feel they should be entitled to the same treatment from the facility. There was a different City Manager in there. The agreement was silent and interpreted this way so they expected it would be interpreted the same way. The agreement is not silent on the point that this project was going to be developed in phases. Councilwoman Rhodes didn’t think anybody had a problem with that. She thought they had the problem with they need the assurance. They need something that tells them this Page 30 of 52 Council Regular Meeting January 22, 2007 project will be finished. Mr. McMillan asked about their assurances after 2 ½ years of spending all that money and then he comes in and the City wants $32,900,000. He asked how they thought he felt about that. When they talk about what a slip is worth, they have to build it. If it is $100,000, you at least have to take out the cost of construction. Councilwoman Rhodes stated she said they could negotiate that. Mr. McMillan stated he doesn’t want them. They are too high. They aren’t worth what the City is asking for them. Councilwoman Lichter asked City Attorney Ansay if this should be discussed in this manner tonight and if that was alright. City Attorney Ansay stated it is very difficult to operate as a government body and do business at the same time when you are subject to this type of scrutiny. She stated the PUD agreement basically provides that if the City and the developer have any differences of opinion, they are required to first try and work it out with staff. That has happened. If not able to work it out, they file a formal appeal with this body, which is essentially what they are seeing tonight is their formal appeal to try to get this issued resolved with the City tonight. Mr. McMillan stated to be treated the same way they were. They want to pay it by phases. They just want to pay the impact fees for phase one. The City has the site development plan, which they have had for a couple of months. He wants the City to review it. Once they work out the differences in it he wants to be given some reasonable period of time, 120 days, to start building the project once the Council approves it. Councilwoman Rhodes stated they are trying to do that. City Manager Williams stated they reached out to these folks today and they tried to find some solution today but the conversation got so heated they could not communicate. Councilwoman Lichter stated sometimes when those things happen they need an arbitrator or another party. WAV is dealing with Daytona Beach in the same type of thing. Councilwoman Rogers stated a lot of information. One question that is in her mind is the discussion between the 450 units and the 580 units. Did you not say that the calculation of what you were told that was due to the City was calculated using 580 units. Mr. McMillan stated 600 actually. Councilwoman Rogers stated 450, 580, 600. Six Page 31 of 52 Council Regular Meeting January 22, 2007 hundred units is what it is in the PUD, 450 is what you are doing. They have a lot of numbers. Mr. McMillan informed rd her they changed that PUD on April 3 to 450 so 450 should be the only figure they should be talking about. Councilwoman Rogers stated once that occurred, then our capacity here should have went down to 450 instead of the 600 and that would be part of what Mr. McMillan is trying to come to them and say. City Manager Williams stated that is what they have said to him and that is why he is now before Council. They have said they have reserved 600 units in our water plant and 600 units reserved at the County’s wastewater plant. Councilwoman Rogers stated but rd then at the April 3 meeting it went to 450 and then he has been told his calculation is based on the 580 or the 600. City Manager Williams stated the discussion they had with him the other day was to pay us for the 450 units and modify his permit. He wants to pay for 142 units. Councilwoman Rogers stated and then as the attorney indicated she believed he agreed the impact fees to be paid up front, that is not in the agreement. She asked if that was correct. Mr. Donaghy stated the agreements are the same. The impact, it does state in the PUD agreement that the water and sewer impact fees are to be paid at the time of reservation. This is a different project. There is currently reservation based on the old project. That probably should have just been rescinded. They have to make a new reservation. They offered in early January, they talked to City Manager Williams and said if they need to they would only reserve 142 units and he informed them that they would be at their peril if when they finish that portion of the project and there wasn’t capacity available that they would have to wait until capacity was available or that they would have to pay their proportionate fair share. They indicated if the City would not let them pay for phase 1 if they had a reservation for 450, they would reduce their reservation with DEP to 142 units and then they would put another reservation in for phase 2. Councilwoman Rogers informed him the whole reason they are going to do that is because of the cost and because they are wanting to pay as they go and then as the City Manager explained the possibility of what he is trying to instruct them as Council is to look at a performance bond. She asked Mr. Donaghy how they feel about a performance bond. Mr. Donaghy informed her they hadn’t really addressed that before. He informed they were looking to be treated the Page 32 of 52 Council Regular Meeting January 22, 2007 same way they were before. They were able to pay it in phases and the agreement speaks to it says the City of Edgewater acknowledges this can be developed in phases. It is on Page 2. Councilwoman Rogers stated what has happened is this has changed so frequently. They don’t want to see something start and not get complete. She thinks that they aren’t going to come to a resolve this evening on this. She believes they need to discuss this further and then Mr. Donaghy needs to be thinking heavily about a performance bond and about getting something like that to them. She is going to need some kind of guarantee. Mr. Donaghy stated Mr. Kurt Wimpee, engineer, would like to address a little bit on the DEP issue also. Mr. Wimpee stated there currently exists DEP applications for six hundred whatever units from the previous phase. Those are more or less null and void because this is a different project. It has been redesigned. Those don’t carry on to a new project. They have to reapply no matter what. They have proposed to reapply with reservation for the 142 units. Therefore they will not be holding back capacity for the City’s plants. He feels that may be part of the confusion. Councilwoman Rogers asked where they are wanting to build the 142 units. Mr. Wimpee informed him in the same place. It’s just Phase 1 is 142 units. They would only reserve capacity for water and wastewater for the 142 units. When Phase 2 comes through they would go back through DEP and reserve again for Phase 2 and so on. Councilwoman Rogers asked what happens if there is another hurricane or they have money problems or whatever. The City of Edgewater would be left with all this land down there in Phase 1 and nothing else. Mr. Wimpee informed her that really didn’t have anything to do with the impact fees. Either way that could happen. Acts of god you can’t account for. Councilwoman Rogers informed him she was being sarcastic. Mr. Wimpee stated that is always a possibility. He knew Mr. McMillan was quite a responsible developer and is wanting to see this project through. He needs the City’s help to go forward with DEP applications for just Phase 1 at this time. They are willing to forego the reservation for all the other phases at this time so they wouldn’t prevent the City from having capacity in their plants. Councilwoman Rogers stated that changes everything. Why would they want to build and sell and hope they are going Page 33 of 52 Council Regular Meeting January 22, 2007 to achieve a certain amount of money per unit if they have no dock slips to offer these people if they grant it back to the City. You are being sarcastic. Mr. McMillan stated he wasn’t being. He looks at the cost the City is throwing at him and it is impossible. He cannot build it with what the City is asking. The best thing he can possibly do is give it to the City. He believed the City had 450 after they surveyed the coastline. He would be happy to give the City back that if he can keep his 29 wet slips for people to come up to use the commercial development in the front. He isn’t sticking them in the front. He is 400 feet back. He is still keeping the 10 acres along the river for commercial development. He just isn’t going to put in the dry stack marina. It is economically unfeasible. He can’t do it. He did the work for the City. They talk about concurrency on this. He paid concurrency on this and he will give it to the City. Councilwoman Rogers suggested Mr. McMillan, City Manager Williams and Mr. Lear try meeting again. She wants to see this project go forward. She doesn’t want to see that land sit there doing nothing. Mr. McMillan stated let him go build it in phases. They are getting impact fees up front. They are going to build it and the City is going to get more tax dollars and they can go from one place to the next. Councilwoman Rhodes asked if Phase 1 was towards U.S. #1. Mr. McMillan informed her Phase 1 is about 400 feet back. In Phase 1 they will be completing about 75% or 80% of the infrastructure for the whole project. They are frontloading the cost dramatically with Phase 1 as it is. They have to put in all the roads, they have to run the water, they have to run the sewer. They have to do the retention ponds. They have to do the landscaping. They have to do all of the things the City is requiring and that is frontloading the cost and they are at where they figure they will make a little bit of profit off of Phase 1 and they will have about 80% of the infrastructure completed for the whole project. Councilwoman Rhodes asked Mr. McMillan if they complete Phase 1 and don’t do anything after Phase 1 and he walks away. Mr. McMillan stated he would be a fool. Councilwoman Rhodes instructed him to sell the City back the property for what he paid for it. Mr. McMillan informed her no way. Councilwoman Rhodes informed him then Page 34 of 52 Council Regular Meeting January 22, 2007 he could do his Phase 1 and as long as he keeps going he doesn’t have to worry about it. She asked why he didn’t want to do that. Mr. McMillan informed her he was a victim of cancer and he might get it again. He has been fighting this battle for a long time. If he gets through the first phase and he decides he can’t go on, he could sell it to another developer or sell the front ten acres who will build what he said would be there. He might sell it to a developer like Paul Holland who builds commercial stuff on the front and knows how to do it very well. Councilwoman Rogers stated the fact that they are going to do 75% or 80% of the infrastructure with Phase 1 helps. Mr. McMillan stated now his land is down to nothing so why in the world would he not continue. Councilwoman Rogers stated if they end up granting the City back the slips, how is the City going to have right of way to get to those slips to maintain them. Mr. McMillan stated they could sell them to everybody else at $100,000 a pop. He knows there would be a lot of them being pulled. City Manager Williams stated those slips belong to the City of Edgewater and are not his to give back. Mr. McMillan told them they needed to go up and buy or condemn some property further north of his where it isn’t class II shellfish waters. He is across from class II shellfish waters and that is why two and a half years have gone into it and that is why they still can’t get there from here. If they go about a mile further north they are out of it. If they get to some property there they could build a dry stack marina without having these problems they have because of the class II shellfish waters. Mayor Thomas called a ten-minute recess. The meeting recessed at 9:40 p.m. and reconvened at 9:50 p.m. Mr. Donaghy stated City Manager Williams made a comment before the break that they did not have the rights to the slips. It is in the PUD agreement and that is not their opinion. They believe they would have vested rights to the dry stack slips and to the wet slips. It was in the original PUD agreement. It was part of their proposal and there was never any discussion of fees. Whether they work something out and abandon that position but they do believe that even though they are within the City of Edgewater that they would have vested rights to them and that they would not have to pay for them. Page 35 of 52 Council Regular Meeting January 22, 2007 Mayor Thomas stated Mr. McMillan a while ago said he gave them back and he said thank you and they have that on the record. Mr. Donaghy stated if they worked it out fine. Their position is they do have vested rights. Mr. McMillan stated he said if they gave him what he was asking for he would give them back. Mr. Donaghy stated maybe that is the direction they will go. Mayor Thomas asked if they could talk with the City Manager and City Attorney and then come back to Council. He likes the project and the idea on the river. He will not give the boat slips away. He is hearing a consensus of okay for the phases. Mr. Donaghy asked City Manager Williams when he would like to set up that meeting. City Manager Williams stated when they talk about phases he wanted some direction from Council as to do they want him to pursue some sort of performance bonds. Mr. McMillan informed him there is nobody that will issue performance bonds on phases of a project. How about putting in 80% of the infrastructure on the first phase. Nobody is going to build ¾ of a house and walk away. Somebody else will finish it. He is putting 80% of the infrastructure in on the first phase. If that isn’t assurance he doesn’t know what is. He bought the land. He spent the money. He is going to put in 80% of the infrastructure on the first phase. If it’s not him it will be somebody else. He promised them. Mayor Thomas stated he has seen this Council work before and they aren’t against making compromises. Mr. McMillan stated let’s make a compromise and if they can work this out and go forward he will happily give it back to them. He will relinquish his rights to the boat slips if they can go forward. City Manager William stated they are wiling to sit down and talk as long as Mr. McMillan can conduct himself in an appropriate manner. They will certainly be willing to do that. City Attorney Ansay stated with some assurance she thinks they know what Mr. McMillan wants in terms of their moon and the stars and she thinks she knows what the City wants. Page 36 of 52 Council Regular Meeting January 22, 2007 If they are going sit back down and yell and scream at each other as to what they want but not compromise, she feels they should lay it out tonight. Mr. McMillan stated let’s lay it out right here tonight then. City Attorney Ansay stated this is part of the problem. What they need to do is sit down and talk about what exactly the City wants and they need to tell them where they are willing to give and they will tell him potentially where they can recommend to the City to give. That is what they attempted to do today. If they can’t do that, they might as well let the Council make a decision tonight. Mr. McMillan informed City Attorney Ansay unfortunately they had a bad connection. Every time they spoke it was clicking. City Attorney Ansay informed him her connection was clear. She heard everything he said. Mr. McMillan stated they needed to sit down face to face and he promised them they wouldn’t have any problem. City Manager Williams felt one of the things they would like to pursue in just laying some of the ground work is if they bring back an amendment to the PUD agreement that they clean up a lot of the things that have gone awry with the previous two, design team and so forth and so on, permitting issues as well. He feels this side of the table attempted to do that today. Councilwoman Lichter asked City Manager Williams how they bring back the other design team. This is a different design team. City Manager Williams stated what they are saying is they need to the agreements to recognize the current design team. That is probably one area they need to start with some assurance is that it isn’t going to change from this design team to another design team. Councilwoman Rhodes asked what difference it makes to the City. Can’t he have any design team what he wants. City Attorney Ansay stated she didn’t know what previous opinion they were given from the City Attorney but the purchase and sale agreement actually made a big deal of the design team. That was one of only three assurances that the purchases were given is that the design team would stay the same. It clearly appears it was pretty important to the City then. Councilman Vincenzi didn’t feel that was important as long as it is a reputable person, what is the difference. Page 37 of 52 Council Regular Meeting January 22, 2007 City Manager Williams stated as they go back to the drawing board with these gentlemen, the clock is ticking on this PUD agreement for an April expiration. Maybe Council’s consideration to issue an automatic six-month extension to this PUD agreement pending successful negotiations and it could be brought back. Councilwoman Rhodes felt there should be a date on them. They aren’t going to drag this out forever. City Attorney Ansay felt if they are going to sit down and talk about where they go from here it is certainly legitimate to give an extension and the agreement does provide that the city has sole discretion for doing so. There is a time clock of rd April 3. She didn’t necessarily know if it was important that they do that tonight. Hopefully if they can work out some sort of a resolution and they have to do an amendment, when they do that amendment they will be able to knock it rd out hopefully before the expiration date of April 3 and include in that that additional time frame that will give the additional time to get things going. City Attorney Ansay hoped that by the first meeting in March they could come back and have recommendations for Council and hopefully be on the same page. Mr. McMillan asked when they could sit down and get together. City Attorney Ansay informed him they would get with him. Councilwoman Rhodes made a motion that they allow City Manager Williams negotiate with RM. McMillan and the Attorney sand the design team and clean up the language in the PUD and get this negotiated by March 5th, second by Councilman Vincenzi . The MOTION CARRIED 5-0 . OFFICER REPORTS 10. C. City Clerk City Clerk Wadsworth had nothing at this time. D. City Attorney City Attorney Ansay reported on the status of the Zeller/Green lawsuit related to the ParkTowne property. Page 38 of 52 Council Regular Meeting January 22, 2007 They filed our response to their complaint wherein they as Council directed at the last meeting essentially agreed they had certain vested rights as was evident in the resolution the Council passed where they defended essentially that the height amendment is not illegal or invalid and where they counter position saying to the court they want them to tell the City that on a go forward basis they have the authority to make these decisions. One of the things plaintiffs are saying is that this Council doesn’t have the authority to make a determination that certain folks are vested. In the interim she received contract from counsel for ECARD seeking to intervene in that lawsuit. What that essentially means they want to throw their hat in the ring so they too can attempt to defend the height amendment. Under the Florida Rules of Civil Procedure, the court is going to let them intervene. It is subject matter in which they have standing to bring that case. They are the ones who got it on the ballot so they have rightful place in the suit if they want to be there. They are asking for the City not to object and consent to them being in the game. Before she did that she wanted to run that by Council and seek their permission to say to the court or at least represent to ECARD that they can say to the court that the City has no objection to their intervening. They have expressed to her that again their concern is to intervene for purposes of upholding the height amendment. That they in no way at this point have any intention of taking an adversarial position to this Council in its determination that the Zeller/Greene property is vested. That isn’t their goal in the fight. They just want to see the amendment upheld. That is what she was seeking authority on tonight. Mayor Thomas asked City Attorney Ansay if she needed that in the form of a motion. City Attorney Ansay informed him consensus was fine as long as they are all okay with that. Council gave their consensus. City Attorney Ansay then reported that a lawsuit had been filed against the City in the name of Hoenstein. A person has filed a trip and fall case. Apparently notice was submitted, Statutory notice, which is required before you sue a governmental entity for a personal injury. It was submitted earlier last year. They apparently are alleging they tripped and fell on a manhole cover and the suit is actually being handled by Mr. Roper through the insurance Page 39 of 52 Council Regular Meeting January 22, 2007 carrier because they had to previously submit notice back before she was City Attorney the case was assigned to Mr. Roper. The insurance company is paying all the legal fees and will provide a defense to the City. Councilwoman Lichter asked where the person tripped. City Attorney Ansay didn’t know the address. City Manager Williams informed her it was in Terra Mar Village. They tripped over a manhole cover. City Attorney Ansay stated she didn’t know the extent of the damages. It was filed by a law firm out of Orlando. This is just something she wanted to bring to Council’s attention. City Attorney Ansay stated she just got going and she wanted to put the Council on notice. She had planned a trip for several years, her cousin is getting married, and she personally won’t be here for the next Council meeting. It isn’t a sign of times to come. She will be at every meeting and will schedule her future vacations around Council meetings. This is something she has had planned for several years. Mr. Ciocchetti will be here and he is well aware of everything that is going on. Mayor Thomas informed City Attorney Ansay he was served today on another one and he has given it to City Clerk Wadsworth. C. City Manager City Manager Williams recalled at the last meeting they had a presentation by the Library Board reference the purchase of property located at 1822 Banyan Tree Drive. Council directed him to pursue negotiations and establish a cost and they have done that. When they concluded that meeting during last month, they approached the homeowners and asked them if they would split the appraisal fee and that was the first step toward determining what the purchase price of this property would be. They have done so and both buyer and seller have agreed to do that. It was appraised at $158,000 so that is where they began their negotiations for the property. They sent through Jean Haughwout a contract that would allow them to purchase the property for $158,000. They counter offered at $200,000 and we recountered at $179,000 and they recountered at $189,000 and signed a contract at that price. He further commented on what is included in the $189,000. The seller has agreed to pay title insurance and document stamps. Right now they Page 40 of 52 Council Regular Meeting January 22, 2007 have no estimated use of the property so they have pretty much decided they would demo the property and they have estimated demolition costs to be about $10,000. The total cost for purchase and demo is $199,000. He went back in the budget and looked at potential funding sources for how they proceed with this. He commented on the three options he has provided to Council with regard to freezing positions, the shuffleboard courts and pursuing debt issuance. One of the things staff would like to suggest is that they consider the property to the north, if they pursue a debt issuance. They feel like that would be a beneficial purchase as well and to include the property directly to the east of it and they could possibly look at expanding that facility at some point in the future to satisfy maybe a City Hall or so forth. They would like for Council’s consideration on the conditions with which the employees working in here and how far $200,000 would go to upgrade the facilities. Due to the fact they are limited on our spacing, they are forced to build a room in the back of this facility to accommodate for some records storage and they are going to stop renting the facility out for community functions because of the damage they incur and it really isn’t a profitable source of income for us. They have also looked at grant opportunities. It is a possibility the ECHO grant could be a funding source. It is their understanding that Volusia County library system applied and received a $500,000 grant last year and they have applied for a $500,000 grant this year. It is a very competitive grant and they don’t know for sure that land purchases are eligible. They will also pursue state grants and look at those as well. He has had conversations with County Councilman Hayman and has requested the County’s assistance for the purchase of this property and associated properties. They have not heard a response back at this point in time. He looked for direction from Council on whether or not they want to pursue one of these funding sources for the property or how would Council like them to proceed. Councilwoman Lichter questioned if this should be on an agenda that is public so they have a chance for input on it. City Manager Williams stated it is Council’s discretion but the funding sources aren’t going to change. Councilwoman Rhodes asked why they are adding money to the Shuffleboard Courts. She knows they need to be rebuilt but that was supposed to come from FEMA money so why are they Page 41 of 52 Council Regular Meeting January 22, 2007 adding tax money to that. City Manager Williams commented on the increase in construction costs. Councilwoman Rhodes feels if the animal shelter has to live within their budget then the shuffleboard courts might have to live within theirs. He wasn’t sure how much of a shuffleboard court they could get built for $247,000. Councilman Vincenzi asked City Manager Williams if he was looking for guidance now. City Manager Williams informed him there are time lines associated with the contract. He thought they owed the owners whether or not they are going to pursue it with one of the funding options. Councilwoman Rogers stated one of these options has a contract price of $189,000. She stated appraised value is $158,000. If they are looking at buying two properties adjacent to this, by paying more than what this is worth then what you are doing is potentially increasing the prices of the homes adjacent to us that they are going to put out their money for. This is not a smart thing to do. They need to hold to the appraised value. She is for the library but she isn’t for paying more and she isn’t for making properties adjacent to it increase in value when there really is no value. That is stupid. Councilman Vincenzi felt it sets a bad precedent. Councilwoman Rogers stated artificially increasing a value because that is what these people want, well here’s the appraised value. Councilwoman Rhodes stated but if you have signed a contract. City Manager Williams stated they have not signed the contract. Councilwoman Rogers stated most contracts will have that as a contingency in them. City Manager Williams stated the contract has been written subject to Council’s approval. They do need to notify them th by February 15 whether or not they are going to proceed. Councilwoman Rhodes felt Option 1 was not an option. Take that off the table. Option 2 is an option because she feels FEMA should pay for the shuffleboard courts. That is what the plan was and that should still be the plan. Because you pursue Option 2 doesn’t mean Option 3 is out of the picture. City Manager Williams asked what he should tell these folks. Councilwoman Lichter stated tell them to get the price right. City Manager Williams confirmed the sellers were present but he didn’t know if they wanted to put them on the spot as to whether or not they would take Page 42 of 52 Council Regular Meeting January 22, 2007 $158,000. He could reapproach them and see if that is something they want to do. Councilwoman Rhodes stated as a rule you usually pay a little more than the appraised value. Councilwoman Rogers stated she never has. Councilwoman Rhodes told her good for you. Councilwoman Rogers stated most people don’t. Councilwoman Rhodes stated she was just saying in the scheme of things. She suggested $160,000 and agreed with Councilwoman Rogers that that price is too high. Councilwoman Rogers stated with Option 2, she wasn’t for taking any money from the shuffleboard courts. She recalled way back when the hurricane occurred. The shuffleboard courts and the building was knocked down within 72 hours and cleaned up and the reason for that was so the FEMA money would come in to play. First she heard 100% reimbursement, then she heard 90% reimbursement then she heard 80% reimbursement then 50% reimbursement. Way back when the reason that was given to her was that they weren’t rebuilding the shuffleboard courts exactly where it was at. Today she comes to understand the reason why the shuffleboard courts had to go to Rotary Park had to do with the flood zone. Because of that that is when they got limited money from FEMA. She was sure there was more to it than that. Either way she isn’t into cutting in to the shuffleboard court money. Councilwoman Rhodes stated the shuffleboard court was nowhere near worth $474,000. It was worth the $247,000 that FEMA reimbursed us. Councilwoman Rogers asked who gave them the construction cost figure. City Manager Williams informed her Leisure Services Director Jack Corder did. Councilwoman Rogers asked if this is the contract they had that did the Kennedy Park Gazebo. City Manager Williams informed her it hadn’t been awarded to any contractor. Councilwoman Rogers stated somebody had to give them that estimate based upon something. Leisure Services Director Jack Corder stated the cost estimate had the ones for the courts themselves, the 16 courts that are lighted, came from Nidy Corporation who is a shuffleboard court company that does that. The cost for the racquetball courts was an estimate from a local contractor as was the building. Councilwoman Rhodes suggested they take the racquetball courts out. City Manager Williams stated that was the Page 43 of 52 Council Regular Meeting January 22, 2007 whole facility that was destroyed. Mr. Corder explained he was just basing it on direction Council had given him at the time to move forward. Councilman Vincenzi felt the first thing City Manager Williams needed to do was go back and talk about the price again. The second thing City Manager Williams needed to do was find out exactly what is in the shuffleboard court estimate and rework that too. Let him know exactly what is included in it. City Manager Williams informed him he could give them that tonight. Councilman Vincenzi didn’t want it tonight. Jean Haughwout stated she thought the owners would rather not talk about negotiation at a public meeting but if City Manager Williams and Mayor Thomas could meet with them she felt they could work something out if they could find the funds to work it out. Dominic Capria , 606 Topside Circle, stated like Councilwoman Rogers said it was 75% FEMA. Then the State came in with another 5% and another 15% for a total of 90%. As he remembered it was like $500,000. Now all of a sudden it is $247,000 and includes other things other then the shuffleboard court. He didn’t think this was fair. Carol Ann Stoughton , 2740 Evergreen Drive, would like to know if the City has ever imposed a fee like they were talking about with Mr. McMillan as far as a performance fee. She asked if that had ever been assessed to anyone before. Councilwoman Rhodes informed her it had been. Ms. Stoughton asked who it was assessed to. Councilwoman Rhodes couldn’t remember but she remembered they couldn’t get it. Ms. Stoughton stated in other words they would want that builder to have a performance contract bond in order to proceed with this project. Mayor Thomas asked Ms. Stoughton if she was talking about the shuffleboard courts. She informed him she was talking about Mr. McMillan. Ms. Stoughton stated if a man is going to come in and go for infrastructure and everything else that is involved and Page 44 of 52 Council Regular Meeting January 22, 2007 he bellies up somebody else is going to come in. She doesn’t know why they didn’t try to work with the man. Councilwoman Rhodes informed her they are. Ms. Stoughton stated the St. John’s River Water Management District has never given an approval, to her knowledge, to do any work for docks or dredging of any kind so therefore he doesn’t even have the ability right now to put any slips in. She felt maybe the City should check on that too. City Manager Williams stated Coral Trace posted a performance bond just to answer the question. Councilwoman Rogers stated she heard what Ms. Stoughton was saying but they have done some work on the seawall all along that whole area on the river. That seawall is done. Ms. Stoughton stated she spoke to Mr. McMillan and he said that St. John’s has not ever given an okay for anything to be done there. Mayor Thomas stated they strayed from the library property. They need to make a decision. Councilwoman Lichter stated a suggestion came forth that City Manager Williams negotiate in private. Councilman Vincenzi stated it had to come back at a future meeting. The price has to be negotiated. They need a breakdown of Option 2 and then Option 3 is still on the table too. He didn’t feel Option 1 was a possibility. Mayor Thomas stated the police officers are too important. Councilwoman Rogers stated in the interim that Friends of the Library pursuing the matching grants. Councilwoman Rhodes stated Mr. Corder is looking into grants as well. She feels Option 3 will take too long. She feels they need to do something in the middle. If they want to do that to reimburse or whatever, then do that. Mayor Thomas thinks Option 2 is going to be just like the animal shelter. When are they going to build it? They need to start getting these things built. City Manager Williams stated they are very close to getting the permit from St. John’s on the shuffleboard court and its associated that if that is a potential funding source they are going to have to make a decision pretty quick. Page 45 of 52 Council Regular Meeting January 22, 2007 Councilwoman Rogers wanted to know what was going on with the shell. She is looking for money. City Manager Williams stated Council pretty much said they didn’t want to give it away. He thought they were waiting for someone to come forward and make an offer on it. Councilwoman Lichter stated why don’t they just do what they discussed. Let City Manager Williams negotiate in private with the homeowners. Leo Towsley , 2828 Unity Tree Drive, stated the land in ParkTowne that they use for the spoilage when the dredge the river, instead of making a park out of it, sell the land to commercial builders. Who wants to go to a park in the middle of a commercial zone? There is enough land there. City Manager Williams informed him we don’t own the containment site. Mr. Towsley asked who owns it. Councilwoman Rhodes informed him the Florida Inland Navigation District. Ruth McCormack, Library, clarified the grants are normally construction grants and they come after you have raised local moneys. That is what the Friends of the Library would begin after the purchase of the property. A long range of fund raising. When they get their half the matching grants come from the State level. There are other avenues for purchasing property but they have met with Mike Knievel, the Director of the Libraries, when they were proposing bringing this to the City and he flat out told them they wouldn’t get any assistance from the County on the purchase of the property. City Manager Williams stated a good point they should consider is what their position is going to be with the property to the north. From the staff’s perspective this is a valuable piece of property but it doesn’t lend itself for much in the way of expansion if they aren’t in the position to buy the property. If they buy this piece, that piece should be in their cross hairs. Councilwoman Rhodes stated she talked to City Manager Williams today for a long time and they could have City Hall there. At some point in the future, maybe it could be three stories, with the library taking the top story of it. They could rent out office space or have City Hall with Page 46 of 52 Council Regular Meeting January 22, 2007 plenty of parking. That is an option at some point if they want to do it. Just buying the land doesn’t mean they have to do it. In her opinion when you buy land you can’t go wrong. If it doesn’t fit in with your plans then you sell it. You don’t demolish the house first though. City Manager Williams stated they needed to think about the property to the north and the property to the east and what that affords the City to do especially if they are going to look at Option 3. He is kind of hearing that is their option. If it is not their intention to focus on those other properties as well, he didn’t know that this affords the library what they just talked about much opportunity to expand. Mayor Thomas asked City Manager Williams if he had direction. City Manager Williams informed him he had direction on go back and renegotiate. They wanted him to renegotiate on the property to the north and the property to the east and then they look at that as one. Councilwoman Lichter felt they should concentrate on the library at this time. The property to the north and the property to the south will still be there. Somebody will own the house and for the right price they will sell it in the future. Right now they have to deal with where can they get the money when they promised shuffleboard courts, they need police officers. If City Manager Williams felt he could negotiate another price she is for what the library asked for and not more. City Manager Williams asked if they had a price that was acceptable. Councilwoman Rogers stated the appraised value. City Manager Williams stated the appraised value is it. Mayor Thomas stated from what he heard they want him and City Manager Williams to work something out and bring it back to Council. Mayor Thomas asked City Manager Williams if he had direction and he informed him he did. City Manager Williams commented on the Statement of Revenues, Expenditures and Changes in Fund Balance for the period ended December 31, 2006 and presented Council with an update on their finances. Page 47 of 52 Council Regular Meeting January 22, 2007 City Manager Williams then went over the quarterly development services report outlining Building Department activity and status of commercial and residential projects. He expressed a concern with only issuing five single-family residence permits for this fiscal year. It doesn’t look real well going into a mid-year budget review. That will have some consequences as it relates to the growth of the tax base. City Manager Williams then presented an update on the amphitheater roof. City Manager Williams asked Council as they have talked about the effects of the 35-foot height amendment if it is their intention to explore putting a ballot question on the November 2007 election to address Public, Semi-Public and industrial uses. If that is Council’s intention they need to start the process now and get the ball rolling. He suggested they consider hiring a political consultant to help with the educational campaigns. If that is something they would like him to look at he would go back and prepare a budget for the cost of a political consultant and provide Council with some of those numbers. Councilwoman Lichter felt it should be written in a manner that the public could understand. She felt they should present examples. Councilman Vincenzi and Councilwoman Rhodes would like to pursue it. City Manager Williams stated through this process he has learned what may be clear to the Council is not clear to a number of other folks. That is why he has opened up the discussion tonight. City Manager Williams commented on the status of the animal shelter. The Council authorized the issuance of a legal ad soliciting interests from local veterinarians who want to come in and partner with the City. Those responses are due nd to the City on February 2 and once those responses are received within City Hall they will set up a special meeting devoted to the animal shelter and at that point in time give them all the proposals, options and costs and so forth associated with that. Page 48 of 52 Council Regular Meeting January 22, 2007 Councilwoman Lichter had a question on the shuffleboard courts. She just wanted to consider the shuffleboard courts and not the added projects. City Manager Williams stated the project worksheet was written around the shuffleboard courts, the racquetball courts and the associated infrastructure over there. He will look at that. He apologized for not clearly specifying what it was for. Mayor Thomas questioned why they wouldn’t replace everything that was destroyed. City Manager Williams stated that is what the project worksheet was written around that and that funding was allocated base off of that. 1. Tentative Agenda Items There were no Tentative Agenda Items to be discussed at this time. 11. CITIZEN COMMENTS The following citizens spoke: Chris Balmer , 148 Williams Street, commented on the dry stack slips. He knew Mr. McMillan was willing to give them back so generously but the reality is if they lose those the City doesn’t want to build them. That is really a loss to the citizens of Edgewater because those are public dry stacks. They aren’t just for the residents of that development. By giving those back to the City, because he can’t afford $100,000 for one, which he agreed was too high, it is really the citizens that lose out. When they talk about negotiating with him he hopes they aren’t just saying great they have 400 slips but the City isn’t going to build them. It is just like the sand in ParkTowne. It would just upset a lot of people. We have assets we can’t sell and raise money. Mr. Balmer then commented on hearing about the racquetball courts for the first time tonight. He is all about building the shuffleboard courts but maybe they could hold off on the clubhouse and the racquetball courts. He commented on the racquetball courts at Whistle Stop and people using them all the time. In these type of economic situations, he wasn’t for cutting firemen and policemen. Page 49 of 52 Council Regular Meeting January 22, 2007 Maybe taking on debt isn’t the right answer at this point. Maybe if they can trim a little elsewhere it will work. Leo Towsley , 2828 Unity Tree Drive, asked what made the City think they could take the money from Mr. McMillan’s dry docks if it is on his property and he is building them, why does the City feel. Councilwoman Rhodes informed him those are the City’s. The water slips belong to the City. Mr. Towsley was referring to the dry docks where they stack them. Councilwoman Rhodes informed him they aren’t taking that away from him. Mr. Towlsey stated if he bought the land adjacent to the water. Councilwoman Rhodes informed him it doesn’t work that way. The City of Edgewater has 450 slips, she believed, under the Manatee Protection Act that were allocated. They aren’t going to give them to anybody. City Manager Williams stated this was prior to class II waters and prior to the Manatee Protection Program and prior to the City being allocated 414 slips. Councilwoman Rhodes stated it isn’t in the agreement that he gets those for free. Mr. Donaghy agreed and stated Mr. McMillan will pay. Councilwoman Rhodes agreed that needed to be negotiated. Mr. Towlsey stated if he would have gotten the approval a couple of years ago when he was going for it he would have been able to keep it. Councilwoman Rhodes stated it doesn’t matter if you own property along the river then you have whatever slips you are entitled to but the City owns property along the river so we are entitled to a certain number of slips. He is commercial and we are a City and he is making money off of the City’s slips. She felt that didn’t make sense. The taxpayers ought to be making money off of the City’s slips. Mr. Towsley stated then the taxpayers should be building the slips. Councilwoman Rhodes stated they might. Maybe they could sell the slips to somebody else and maybe they build them and pay the City for them. She didn’t think they should give them away to anybody. Mr. Towsley agreed but felt the City should help at least build them if they are getting the money to help the revenue because he is putting up everything else down there too. Councilwoman Rhodes stated he is making money. The City isn’t making a dime. She suggested they wait and see what happens. Page 50 of 52 Council Regular Meeting January 22, 2007 Mayor Thomas stated they are ours. Under the Manatee Protection Act to save the manatees they only allow so many boats on the river, so many boat docks in a certain area and the State gave us allocated and then it is up to the City to allocate so many. They aren’t just giving them away. Councilwoman Rogers stated Mr. McMillan made mention about the land or about the water being class II shellfish waters. That also presents problems and additional costs. Frank Morris , 1382 Tatum Boulevard, thought he was supposed to be on the agenda. He was notified by the City he was going to be on the agenda. He was on the agenda last month for the first reading and then it was separated one parcel from five acres to two parcels of two and a half acres on Oak Trail. He wondered where he stood. City Manager Williams agreed to research this. Councilwoman Rhodes apologized and stated somebody made a mistake. Mayor Thomas asked Mr. Morris if he received a letter that he was on the agenda for tonight. Mr. Morris informed him yes. Mayor Thomas apologized. Mr. Morris stated he just wanted to know where he stood. All he wanted to do was separate the five acres to two two and a half acre parcels. He stated the Council tabled it and said they were going to walk the land and get back with him. City Manager Williams stated it was probably an oversight and he agreed to research it tomorrow and give Mr. Morris a call. Mr. Morris asked if he had to wait until next moth. He asked where he stood on his property. They were talking about they wanted to restrict the builders associations but they are almost forcing him to go to builders because he is allowed to have one house per acre and he wanted to make it harder on himself. He wondered where he stood. He questioned having to come back before the Council again. City Manager Williams informed him that was correct. He agreed to look at this to see what he could do. He briefly commented on this case. Page 51 of 52 Council Regular Meeting January 22, 2007 Mr. Morris stated all he is doing is separating the land from five acres to 2 ½ acres to make it harder on himself because he is already in the City. He has no intentions of doing anything except dividing the land into two parcels. Councilwoman Rhodes informed him when the County gets back to them they will get back to Mr. Morris. City Manager Williams stated the Council continued it and as soon as they can get it back they will have the discussion they are having here tonight. 12. ADJOURNMENT There being no further business to discuss, Councilwoman Rhodes moved to adjourn. The meeting adjourned at 10:45 p.m. Minutes submitted by: Lisa Bloomer Page 52 of 52 Council Regular Meeting January 22, 2007