Fort Walton Beach Council minutes — 09-11-12 regular — reading text

October 1, 2012. until September 30, 2015, carried unanimously. RESULT: ADOPTED [ UNANIMOUS] MOVER: Dennis Reeves, Council Seat 3 AYES: Griggs, Reeves, Goodwin, Nabors, Rigdon, Rynearson ABSENT: Joyce gossom Award of ITB 12 -027 for the Pump Station No. 1 Force Main The City Manager advised bids were received from five vendors for the Pump Station No. 1 Force Main and Reclaimed Water Main, and that the firm Utility Service Company out of Gulf Breeze, Florida, was the low bidder. When questioned, the City Manager responded that the company has a good reputation and that the City's consultant on the project, Hatch Mott MacDonald, has worked with them in the past. The vote on the motion to award the bid to Utility Service Company of Gulf Breeze, Florida, for a not -to- exceed amount of $6, 923, 123. 67, to construct a new Pump Station No. 1 Force Main and Reclaimed Water Main, and to authorize the City Manager to approve project change orders up to 10 percent of the bid amount in accordance with the City' s Purchase Policies, carried. unanimously. RESULT: APPROVED [ UNANIMOUS] MOVER: Bobby Nabors, Council Seat 5 SECONDER: Dick Rynearson, Council Seat 7 AYES: Griggs, Reeves, Goodwin, Nabors, Rigdon, Rynearson ABSENT: joyce gossom Award of ITB 12 -028 for the Pump Station No. 1 Renovations & Storage Tank The City Manager advised bids were received from six vendors for the Pump Station No. 1 Renovation and Storage Tank, and that the firm Wharton -Smith out of Sanford, Florida, was the low bidder. Dan Keck of Hatch Mott MacDonald advised he had personally checked references for Wharton - Smith, questioning them heavily, and received excellent feedback on their work. Mr. Keck continued they have an experienced staff and have worked on numerous projects of this type and he believes the firm will do an excellent job for the City. Clty Co., d ofFo, l Wa[ roa Hevch Page 5 Printed  Minutes 11, 2012 Dean Covey, 270 Brooks Street SE, expressed concern with the City Manager's approval on change orders of up to 10 percent of the bid amount. The City Manager advised that the recommendation is in accordance with the City's Purchasing Policies. He also acknowledged his background in civil engineering and his familiarity with the aspects of the project. Council requested they be kept apprised of the project and any high expenditure items. The vote on the motion to award the bid to Wharton -Smith Inc, of Sanford Florida, for a not -to- exceed amount of $6, 467, 000. 00 to renovate Pump Station No. I and construct a new 4 million gallon wet weather storage tank, and to authorize the City Manager to approve project change orders up to 10 percent of the bid amount in accordance with the City' s Purchase Policies, carried unanimously. _ RESULT: APPROVED [ UNANIMOUS] MOVER: Bull Rigdon, Council Seat 6 SECONDER: Bobby Nabors, Council Seat 5 AYES: Griggs, Reeves, Goodwin, Nabors, Rigdon, Rynearson ABSENT: joyce gossom Local Mitigation Strategy Annual Update Stella Jones, City Planner, advised the City participates in FEMA' s Community Rating System for the National Flood Insurance Program, and the Local Mitigation Strategy Plan Report is prepared by the County's Comprehensive Plan/ Local Mitigation Strategy Committee, as well as representatives from the City. Ms. Jones advised no action by Council is necessary; the only requirement is for Council to receive this item as information and document it in the meeting minutes. Revised Interlocal Agreement for Sound Side Development The City Manager informed this was addressed earlier at the CPA meeting, and explained that during their review of the project, HUD determined that the secured loan amount could be increased to accommodate the general contractor performing the infrastructure improvements, allowing the general contractor to complete construction of the entire project. Therefore, the Interlocal Agreement is revised to reduce the CRA' s financial contribution from $ 2, 5000, 000 to 700,000, benefiting the City by allowing the reallocation of the remaining funds to other projects and programs within the CRA. The vote on the motion to authorize the Mayor to execute the amended Interlocal Agreement with the Fort Walton Beach Housing Authority and Sound Side apartments, LLC, for the Sound Side apartments development and any accompanying documents associated with the Interlocal Agreement, carried unanimously. Cary Coaaatl ojPort Walton Beach Page 6 Printed 911312012  71 Regular Meeting Minutes September 11, 2012 RESULT: APPROVED ] UNANIMOUS] MOVER: Bobby Nabors, Council Seat 5 SECONDER: Dick Rynearson, Council Seat 7 AYES: Griggs, Reeves, Goodwin, Nabors, Rigdon, Rynearson ABSENT: joyce gossom Discussion of the Draft Development Agreement Components for the Landmark Center Development Tim Bolduc, Acting Engineering/ Utilities Director, discussed the four components that Fort Walton Development Partners ( the developer) is seeking from the City for their Landmark Center project. These components include 1) conveyance of City property for a parking garage; 2) funding from the City for infrastructure; 3) participation in existing City grant programs; and 4) Tax Increment Financing (TIF) refund to the developer in an amount equal to the tax revenues that would be assessed on the property. Mr. Bolduc continued that Staff is working with the Developer to construct a Development Agreement that would embody the requests of the developer, while meeting the needs and funding capacity of the City, and requested Council discuss the components of a Development Agreement and to provide any direction to Staff as they see fit. Mr. Rigdon stated he has received a lot of calls from people who object to the project, and stated his concern that taxpayers' money is being used for private investment. Discussion ensued regarding the projected size of the planned parking garage and the number of spaces that the developers are planning. Ken Wright of Fort Walton Development Partners explained they are using existing plans from a previous development agreement with the City. Charles Scott, 205 Beachview, stated his thoughts that a parking garage is not needed and that governments should not be in the business of picking winners and losers. Phil Golmeyer, 205 Buck Drive, stated he would like to see a private appraiser appraise the worth of the land. He also discussed the impact on the increase in traffic in the area; that a traffic study needs to be conducted to determine the Level of Service ( LOS); stated his opposition to transferring tax money back to the developer; and received clarification that there would not be a fee for parking in the proposed garage. Mr. Golmeyer also discussed a possible conflict of interest with Councilmembers Reeves and Nabors who have businesses downtown, and questioned whether they should recuse themselves from voting on the issue. Jim Dowling, 111 Ferry Road, discussed possible concerns if a garage is built, including creating a public nuisance if occupied by individuals during day /evening hours; ensuring citizens would receive prime parking spaces, in the lowest levels of the structure; and ingress /egress and the impact of traffic in the local area. Mary Jo Johnston, Greenbrier Drive, stated she does not like the idea of the project and that Council needs to be cautious about spending taxpayers' money. City Council ofFort Walton Beach Page 7 Printed 91131202 72 Regular Meeting Minutes September 11 2012 Ms. Johnston expressed her thought that the citizens represented by Council should have been better informed about the project and had the opportunity to express their feelings. Council acknowledged that a workshop was held last week on the project that included renderings on how it would look when completed, and that if Council moves forward this evening, there will be more workshops and meetings for public input. Mr. Rynearson stated his opinion that the agreement as presented to Council this evening would set a terrible precedent. He stated he is not opposed to the project per se; rather, to the City's investment in a private development. Mr. Rynearson suggested a cap be placed on infrastructure, grant monies, and the amount of TIF revenue, and that the City wants to be business friendly but not 'business foolish.' Mr. Rigdon reiterated his opposition to the project and the use of taxpayers' money for private development. Mr. Nabors stated he sees this development as a tax incentive, and the need to increase revenue by working with private developers. He continued the development will generate tax revenue and createjobs, and feels this type of investment is what is needed and that in the long run, it will benefit the City, and expressed his support of the project. Mr. Goodwin stated fear should not be used to stop the project, and that the City's budget will not be impacted since CRA funds and tax increment funding will be used. Mr. Goodwin stated he supports the projects but welcomes additional discussion. Mr. Reeves responded to a previous comment regarding a conflict of interest since he is a downtown business owner. He advised he had spoken with the City Attorney at the beginning of discussion of the project, and was advised since he would receive no monetary benefit from the development, no conflict exists. The City Attorney reiterated, stating neither Mr. Reeves nor Mr. Nabors would receive a monetary benefit. Mr. Reeves continued that although he feels it is an excellent project that would benefit not only himself as a business owner but the community as well, he has a difficult time supporting it at this time, stating the City can only do so much financially but the developers keep asking for more. Mr.