Fort Walton Beach Council minutes — 05-04-06 special minutes — reading text

20.1 MINUTES OF THE SPECIAL COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA MAY 4, 2006 INTRODUCTION A special meeting of the City Council of Fort Walton Beach, Florida, was held on Thursday, May 4, 2006 at 5: 00 p. m. in the Council Chambers at City Hall, with the following present: I Mayor Mike Anderson I Councilmen: Mike Holmes, Bill Patterson, Jim Tucker ( arrived 5: 15 p. m.), Dr. Wayne Pullen, Jim Hartwell, and Mike Minich L Absent: Bob Campbell Also Present: Joyce Shanahan, City Manager; Helen Spencer, City Clerk; Finance Director ( position vacant); Toni Craig, City Attorney CALL TO ORDER The Mayor called the meeting to order. PLEDGE The Mayor led in the Pledge of Allegiance. UPDATE TO FAIRGROUNDS OPERATIONS PLAN Consideration of a request to approve an update to the Fairgrounds Operations Plan for 2006. The City Manager advised she received a request from Charles Rigdon of the Fair Association to allow Quality Motors to rent the front grounds, parking area in Parcel 1 on May 16 - 21 for a car sale. She noted that the Fairgrounds building in Area 1, and the property behind the Fairgrounds building in Area 2 were the parcels leased through the License Agreement. She noted the parking area in front, Parcel 1, was provided to be used by the Fairgrounds for parking for the particular events at the fairgrounds. She reported the City Attorney pointed out that this particular use for Quality Motors will take place in the front parcel of the property which is technically the City' s property. She mentioned the issue that arose was that Quality Imports should be seeking to come to the City to use the parking area rather than through the Fairgrounds, and the City derives the revenue. The City Attorney commented that the purpose of the License Agreement is to further the Fair Associations statutory duties and obligations as a Fair Association, but also it is intended to be a public purpose lease. She said public purpose endeavors should be those that are beneficial to the citizens of the city rather than to the public as a general whole. She said the other issue that the activity of Quality Imports is a completely commercial endeavor, and reminded Council that it is a less than fair market value lease and there are other procedures through the City to approve special events and of permitting City property. r- It was commented that the area has traditionally been used for commercial purposes and it would derive income for the City. The question was posed whether the City could lease that parcel with the funds to come to the City rather than the Fair Association. The City Attorney suggested it go through the processes set up for permitting other parks and recreational property, and to put in an application for the use of city property. The City Manager mentioned a fee schedule has not been established for the fairgrounds property. eo,1' Special Council 5-4- 06 UPDATE TO FAIRGROUNDS OPERATIONS PLAN Bull Rigdon, 9 Bay Drive, explained that Quality Motors will use part of the fairgrounds building for the computers and phones, and also set up tents out front for the salesmen. The question was asked if Quality Motors could set up behind the building. Mr. Rigdon responded that Quality Motors wants to be out in front so the general public can see it. The Mayor received clarification that Mr. Rigdon is renting part of the fairgrounds building in adclition to I letting Quality Motors use the parking lot, and wished to know if that complicated the issue from the City' s perspective. The City Attorney commented the overriding problem is that it is a completely commercial endeavor and does not fit within a public purpose for City property. She noted Mr. Rigdon has a certain right of assignment of his own building that is laid out in the License Agreement. She said the issue will be brought up at the next Council meeting to amend the entire 2006 Plan, and her opinion will remain the same for Quality Motors and the Tool sale. She mentioned when the License Agreement was prepared there was a set of operations that were known and that is what the License Permit was based. She said the City agreed to allow changes but each change should be looked at in context of the entire License Permit. Mr. Tucker arrived at 5: 15 p. m. Discussion centered on the use of the parking area in Parcel 1 now under the City' s control, and the historical use of the fairgrounds and parking area for commercial activities. The City Attorney mentioned when Council voted to approve the License Agreement, the Fair Association provided their Plan of Operation for 2006, and part of what was taken into consideration of the price of the lease was an additional 5% because there would be other activities. She said the issue now is that Quality Imports was not in the 2006 Plan when it was approved and staff negotiated the price of the lease based on what was anticipated to be their revenue from the activities. Discussion was held on the question of whether or not the parking area ( Parcel 1 ) can be used with the proceeds split between the Fair Association and the City. The City Attorney commented another legal issue is that it is not a public purpose to be in a commercial endeavor unless there are other mechanisms set up. She noted what she referred to by Quality Imports using the City' s property is that they go through the same permitting process as any other aGtivity on public property. She said whether or not a fee would include a surcharge on the proceeds would need to be addressed, and noted it would require an amendment to the License Permit if the City wanted to share in any charges made at the Fairgrounds. Mr. Minich moved to approve the update to the Fairgrounds Plan for the areas under their control in Area 1 and Area 2 (to allow Quality Motors to hold their event May 16-21, 2006). Mr. Patterson seconded motion. Discussion included an exchange of view on the Fairground Association' s control over the use of Area 1 and Area 2 whether it is for commercial or non- commercial use; the use of the parking area in Parcel 1 that is under the control of the City, with the City to receive the income; and the License Permilt fee and the Operations Plan for the use of the fairgrounds. The City Attorney clarified that each year Council will review and approve the Operations Plan for the fairgrounds. I The Mayor called for the vote on the motion and it carried by a vote of 5 to 1 with Patterson, Tucker, Pullen, Hartwell, and Minich in favor and Holmes opposed ( Campbell absent).  203 Special Council 5-4- 06 UPDATE TO FAIRGROUNDS OPERATIONS PLAN Mr. Minich moved to direct the City Manager to develop a license permit and schedule of fees for the a rea referred to asP arcel1 0 n the Northwest Florida Fairgrounds map. Mr. Hartwell seconded motion. The City Manager commented that staff will only bring to Council a schedule of fees because staff will r' take care of the license permitting as an administrative process. f Discussion included an exchange of view on permitting the use of City property adjacent to the fairgrounds, with any revenues derived to be retained by the City. The Mayor called for the vote on the motion and it carried unanimously with Holmes, Patterson, Tucker, Pullen, Hartwell, and Minich in favor (Campbell absent). Mr. Minich moved to direct the City Manager to negotiate a license agreement with Quality Motors on the short term at a reasonable price, for the use of Parcel 1 ( from May 16-21, 2006). Dr. Pullen seconded motion. Glenda Glover, 115 Waynel Circle, wished to know if parking for the baseball fields would be available during the Quality Motors event. The City Manager replied that typically they have had events coincide and exist well together. Mr. Rigdon commented in the past they have always worked with Parks and Recreation and they have always left space for the ball players to park, and they have had no problem. The Mayor called for the vote on the motion and it carried unanimously with Holmes, Patterson, Tucker, Pullen, Hartwell, and Minich in favor (Campbell absent). Mr. Patterson mentioned during the last hurricane Gulf Power contracted out with a corporation to put up a tentcity to house the workers and they had contacted the fairgrounds before the City took ownership. He commented the City Manager should get with the Fair Association and Power Company to work out arrangements. The City Manager reported she has had a conversation with Sandy Sims at Gulf Power about an Interlocal Agreement for the use of a staging area for the fairgrounds, and she and the City Attorney are wor~ing on that issue. Mr. Patterson mentioned that when the Fairgrounds Agreement is reviewed next year, the Operations Plan will be more accurate and the City will be able to renegotiate a more fair and equitable agreement. ADJOURNMENT Being no further business, the meeting adjourned at 5: 45 p. m. ED~.~ ddm