06/14/1996 (2)
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COMMISSION
City Commission Minutes
Date
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CITY COMMISSION SPECIAL MEETING
CITY OF CLEARWATER
June 14, 1996
Present:
Rita Garvey
J. B. Johnson
Robert Clark
Ed Hooper
Karen Seel
Mayor/Commissioner
Vice-Mayor ICommissioner
Commissioner
Commissioner
Commissioner
Staff and Project Team Members
Elizabeth M. Deptula, City Manager Mich Sauers, Globe Facilities President
Kathy S. Rice, Deputy City Manager Barry Strafacci, Globe Facilities General
William C. Baker, Asst. City Manager Manager
Bill Baird, General Services Manager Mark Healey, Boston Concessions Group District
Jay Ravins, Controller Manager
\ Cynthia E. Goudeau, City Clerk Dean Rowe, Rowe Architects
Gwen Legters, Soard Reporter Clark McKinnon, Project Architect
The special meeting was called to order at 9:00 a.m. in City Hall, for the purpose of
discussing Ordinance 6061-96 and funding for the Harborview Center.
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First Readinq Ordinance 6061 -96 - Deleting Subsection (3) of Section 22.83 relating to
special events to allow special events on holiday weekends on City beaches.
The City Manager stated this ordinance will delete the provision that does not allow
special events on Clearwater beach on holiday weekends. This will enable scheduling the
grand opening of Pier 60 Park on Labor Day weekend, and enhance the City's image as
a tourist community.
Jean Sherry, Tourism Development Director, responded to a concern deletion of the
provision could open the beach to undesirable events. It was indicated a Special Events
Committee will evaluate, approve and oversee all events. If problems occur, the City could
adopt a new ordinance or policy to manage special events.
Commissioner Clark moved to approve deleting Subsection (3) of Section 22.83
relating to special events to allow special events on holiday weekends on City beaches.
The motion was duly seconded and carried unanimously.
The City Attorney presented Ordinance 6061-96 for first reading and read it by title
only. Commissioner Johnson moved to pass Ordinance 6061-96 on first reading. The
motion was duly seconded and upon roll call, the vote was:
"Ayes": Johnson, Clark, Hooper, Seel and Garvey.
"Nays": None.
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'-, Harborview Center
1 . Overview of ty1eetina Puroose and Expected Results
Referring to the extensive packets of materials provided to the Commissioners and the
press, Ms. Deptula reviewed the project to date. Reservations had been expressed
regarding the necessity for additional funding. acquisition and reliability of the numbers. the
construction management process and how the project reached this point. Staff was
requested to provide a full accounting and accountability for the project.
Ms. Deptula listed the team members available to answer questions, stating she has
met with contractors and consultants, and walked the Center. She expected today's
overview of the history of the Maas Brothers property, now known as the HBrborview
Center, and documented paper trail to result in a clear understanding of the current status.
She hoped a full discussion of ongoing operations will provide a clear and unambiguous
understanding of the final project. While this is not an audit, she agreed an accounting is
appropriate and felt it will clarify if value was received for the money spent. She
commended staff for their tremendous effort in compiling the information on short notice.
The information will be preserved in an archive file. She questioned Commission
expectations of today's meeting and whether they will be satisfied if the above
conclusions are met. While the majority agreed, Commissioners Seel and Clark wished to
reserve judgment until all the facts are on the table.
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2. Historv of the Proiect
Ms. Deptula felt the City can be proud of the Harborview Center as an example of
refurbishing an old building to benefit the public. She cautioned against unrealistic
expectations, as the building cannot be expected to break even in the traditional sense.
The previous Commission had decided the building would not be charged for its
construction and renovation, forgiving $13 to $15 million of debt that would otherwise
burden the facility. In response to a question. Commissioner Seel indicated. while the
figure she calculated last week was in error, the actual cost of the proiect is not known.
Ms. Deptula expected the Commission to reach agreement on a final amount by the end of
today's meeting.
Referring to the history, Ms. Deptula said the City Commission first decided to look for
a conference/convention center site in March 1990. That discussion continues today
among those who feel a convention center should be built on Clearwater beach. In June
1991, the City Commission and eRA considered purchasing the former Maas Brothers
building for $1.9 million. In December 1991, some Commissioners expressed concerns
regarding buying the property without specific development plans.
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In June 1992, a City Commission task force was formed to determine potential uses
for the property. The primary recommendation of the 1 5-member task force was for the
City to enter negotiations with the Florida Gulf Coast Art Center (FGCAC.) This proposal
did not come to fruition when it failed to obtain necessary voter approval. Other
considerations regarding closing Drew Street and Commission concern for the importance
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...... of public access, activities and water vista were discussed. Throughout 1992, transfers of
property occurred between the CRA and City. Frequent discussions ensued regarding who
should own the property. The City ultimately became the owner.
In October 1992, Creative Contractors removed dangerous external precast panels for
$34,000. Operational expenses such as power bills, roof work, and security system costs
were accumulated in a special project. not a construction budget. In 1992/ after the
referendum for the art center had failed, the City Commission issued an RFP (Request fci'
Proposal) to develop the site and entertain additional options.
In May 1993, the City Commission, City Clerk, and City Attorney traveled to Atlanta,
Georgia to inspect Dave and BUster's, a popular entertainment center / as a possible use for
the Center's third floor. The Commission decided the first floor would remain a community
activity room. CIP funds were transferred from the City Hall Annex community room to
this project. '
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In March 1994, a proposal was made for SteinMart to move into the building's mid
level. Ms. Deptula reported people from around the country have requested information
regarding this use as a way to defray the cost of operating a conference center. Mixed
uses in the building resulted in extraordinary expenses, such as meeting fire rating
regulations. The Commission had expressed concern about going forward without a plan
for the rest of the building. The City entered into an agreement with Dean Rowe to assist
the City in renovation because of time constraints imposed by SteinMart requesting prompt
completion of renovations. In August 1994, the City Commission discussed a first floor
community room, allowing trade shows to take precedence. Commission discussion
continued for several meetings regarding the use and purpose for the first floor. Today the
understanding is, while Parks and Recreation has events, penciled in, these events may be
moved if Mr. Strafacci is able to schedule revenue producing events. In November 1994,
as SteinMart Phase 1 was being completed, staff advised the Commission savings could
be generated by proceeding with portions of Phase 2 immediately. The Commission
concurred and directed staff to proceed with Phase 1 a immediately.
Discussions with Pickles Plus began in January 1995. The small sandwich shop/deli
facility was to be located on the first floor. Final approval did not occur until
August 1995. The Commission, staff, and the principles of Pickles changed the concepts
and specifics of the lease a number of times.
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In July 1995/ major discu~Rinns ensued regarding the cc:;t of u proposed third fllIlJ'
catering kitchen. A final verbal offer regarding contract terms for a third floor restaurant
was made on July 20, 1995, and the City Commission approved the concept. Two weeks
later, the City Commission rescinded their approval and changed the terms of the contract.
Contract terms were never agreed in writing. As Globe Facilities, the contract manager of
Harborview Center, felt more revenue could be generated by a rental banquet facility under
their control, supported by a catering contractor, staff requested the Commission change
their direction from a restaurant to a banquet room. In October 1995, the Commission
discussed purchasing equipment the restaurant firm had purchased in anticipation of the
July 1995 contract which was not consummated. The City purchased much of that
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--.., equipment and those expenditures are reflected in the budget detail. In January 1996, the
Commission consensus was to contract with one caterer. Information regarding the top
contender was obtained and the City is ready to contract with a caterer.
While Ms. Deptula acknowledged that criticism regarding lack of planning may be
justified, she noted the minutes demonstrate the history of staff responses to changing
Commission direction. In response to a question regarding why a pro forma of potential
expenses and revenues was not prepared, it was indicated staff lacked the expertise to
prepare a pro forma. Globe Facilities was hired while the City was still grappling with the
issue of what would be in the Center. She noted Commissioner Fitzgerald and Mayor
Garvey were outspoken regarding the need to stop and plan a total picture, but the
majority of the Commission desired to move in the direction that was taken. Ms. Deptula
did not feel it was staff's prerogative to stop the City Commission from going forward.
The Mayor concurred with this analysis.
3. Financial Information~ Reconciliation of budget, expenditures, and other costs
associated with the project
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Ms. Deptula distributed a report titled. "Harborview Center Costs.. What is the Real
Number?" The report listed the history of approved costs, expenditures and a
recommended budget increase to complete the construction project. Extensive backup, in
the form of budget analyses, and history of amendments for the various projects was
provided and reviewed. All funding resources were identified, summarized and
documented. Highlights of the report are as follows: Purchase price and closing costs,
$1,926,710; approved construction project budget, $10,793,610; and approved furniture,
fixtures and equipment (FFE} budget, $496,406, for a subtotal of $13,216,726.
Ms. Deptula noted Mr. Ravins included in the analysis other operational costs, not
related to construction costs. Emergency removal of deteriorating exterior panels from the
vacant Maas Brothers building was required and included in the total of building operations
costs. While it has not been City policy to charge the costs of normal staff operations to
any specific project, a full accounting of actual costs would require such a notation, so
each department was requested to provide a detailed accounting of their expenditures.
SteinMart's costs for interior renovations had not been included previously. Ms. Deptula
asked the Commission which, if any, of the following they wished to include in the totals:
Maas Brothers emergency repairs and building operations of $136,565; City departmental
labor and materials expenditures of $142,408; and SteinMart expenses of $356,370, for a
subtotal of $13,495,699. The currently recommended budget increase of $730,900 for
completion of the construction project, would bring the subtotal to $14,582,972.
In response to questions, the City Manager said the $100,000 loaned to Pickles Plus is
included in the above numbers. As a 50 percent rent credit will be extended for renovation
funds expended by SteinMart, it was felt half these costs should be reflected in the
accounting.
Ms. Deptula stressed the above accounting represents every penny expended on the
subject property. Discussion ensued regarding whether the Commission wants to use total
.J construction costs. or the total expenditure as the final figure. While some did not feel the
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.-", Harborview Center project should be charged for departmental support not charged to
other City projects, others felt an accounting of all expenses is necessary to achieve a
total picture. In response to a question, Ms. Deptula said an enterprise fund is one that
has a reasonable expectation to pay for itself. She noted the decision whether or not to
forgive operational and maintenance debts or to require the Harborviow Center to pay for
itself are policy decisions to be made by the Commission.
Discussion ensued regarding in-kind costs and other related costs of ownership. One
Commissioner felt the costs to secure and prevent further deterioration of the vacant
building should not be charged to the Harborview Center. Ms. Deptula said an RFP went
out to see if someone would take over the building before its renovation, and several uses
were considered, but very little revenue was generated during that time. A question was
raised whether the cost of ownership in the private sector would include building
operations and maintenance. Ms. Deptula affirmed it would. To simplify future
discussions, she suggested using the construction project cost figure of $13,216,726, and
total project cost of $14,582,972, providing a clear understanding which figure is being
addressed in each case. Related costs were discussed regarding electrical work,
landscaping, parking lot paving, convention center studies, and lost revenue from pulling
the parking meters. It was indicated no estimates are included for Budget, Central
Permitting, or City Management time. Ms. Deptula pointed out none of the
Commissioners' time was factored, either. While she offered to estimate and include
these costs, she did not feel it was appropriate.
:)
Discussion ensued regarding" what happened to the money allocated for the catering
kitchen. The cost accounting does not show the money was spent, so $490,000 should
be available for the catering kitchen. Ms. Deptula said, while the original plan called for
two kitchens, this was changed to one large kitchen and a banquet room now called the
Clearwater Room. The additional funds are needed to finish the banquet room, and
purchase kitchen and catering equipment.
In summary, Ms. Deptula said subtotals #1 and #2 as depicted on Exhibit A to these
minutes are givens; subtotal 1t3 is to include half of SteinMart's costs and an estimate of
additional staff time. Discussion ensued regarding how to report these costs. Ms. Deptula
said the cost of preparing a business plan and a formal budget cannot be recouped by a
rate increase as might occur with other enterprise funds, such as the Marina. She
recommended memo entries to track expenditures rather than budget amendments. It was
indicated half the administrative, or staff costs, are included in the operational budgets of
enterprise funds. Discussion ensued regarding construction versus operation costs. Ms.
Deptula reiterated the project cost in "human toll" is difficult to determine and
rcccmm3nd;Jd the Commiesion focus on what number to use.
Commissioner Clark moved to use subtotal #3, $13,495,699, with the addition of
$178,000, in round numbers, to reflect the payback to SteinMart through their lease, as
the figure of the building's cost thus far. The motion was duly seconded.
In response to a question, Ms. Deptula said the rent credit reduces City revenue, and
may be considered a factor in the operation costs. Using these numbers, the rounded
J figure would be $13,673,700. Commissioner Seel did not support the motion because she
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-...., felt labor should be included as the true cost of the project. Mayor Garvey did not feel
operating expenses should be included as part of the construction cost.
Upon the vote being taken, Commissioners Johnson, Clark and Hooper voted" Aye";
Commissioner See I and Mayor Garvey voted "Nay." Motion carried.
Brief discussion ensued regarding a funding summaries attachment. Ms. Deptula
wanted the Commissioners to be clear about the Penny for Pinellas summary showing
interest charges on loans. It was indicated, when a Penny for Pinellas proiect borrows
money from another fund, it repays the fund from which it was borrowed. Because the
City gets the money over a ten year period, it looks as if the project costs more. Ms.
Deptula noted the first page of the funding summary should be corrected to read
$1,926,710 for the First Quarter 92/93 Infrastructure Tax. In response to a question, she
said the $100,000 under Harborview Center relates to the loan to Pickles Plus to be repaid
over two five-year periods.
The meeting recessed from 10:32 to 10:45 a.m.
The City Manager said she was reminded of a $25,000 no-interest bank loan approved
by the CRA to Pickles Plus. The interest of $5,478.27 is to be prepaid to the bank by the
CRA through a grant program no longer being practiced by the City. Ms. Rice will research
and provide more information later.
Mr. Ravins distributed "Harborview Convention Center Project Related Expenditures as
I,~:;J of 6/12/96." He explained, during the last two days, he fine tuned the line numbers in the
Phase II construction costs to reflect an approximate $ 24,000 increase in the available
balance. While the total balance did not change, the architectural fees allocated for the
kitchen were separated from those allocated for the Clearwater Room, to more accurately
reflect what has been spent. Discussion ensued regarding how draw requests are
submitted and approved, purchase orders prepared and payment documented.
A question was raised if funds in excess of $400,000 are actually available to
complete the kitchen. Ms. Deptula read into the record a recap of the funding resources
detail approved for the Harborview Center as follows: General Fund, $1,435,120;
Infrastructure and Penny for Pinellas, $8,499.006; Special Development Fund,
$3,032,600; CRA, $150,000; and Harborview Center Fund, $100,000, for a total of
$13,216,726.
A question was raised why Mr. Ravins' summary does not detail total expenditures in
Phase II between November 17, 1994 and September 7, 1995. Mr. Ravins responded he
reported totals by phase because Rowe Architects was unable to provide line item
allocation of expenditures in the lime available to prepare this report.
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4. Construction Project Issues: Accountability, construction management process
(CeD's), architect contract
Ms. Deptula said Mr. Baird has spent an extensive amount of time reviewing
--I construction details during a walkthrough of the building with Mr. Strafacci. Having just
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-"'. received the preliminary construction punch list, he has not had an opportunity to review
and amend the list based on his walkthrough. She hoped the revised punch list will be
available for Commission review next week. The punch list was compiled by the architect
and consulting engineers.
Clark McKinnon, Project Architect, detailed the preparation process of the construction
proiect punch list. He responded to questions, stating only finance and building inspection
staff accompanied him during the punch list inspection. Mr. Baird will coordinate getting
interested parties together for inspection and preparation of documentation. Concern was
expressed a final number cannot be obtained today because the punch list is incomplete.
Mr. Rowe indicated very little remains to be accomplished, and what there is has been
counted in the report before the Commission. The remaining items will not require
significant expenditures.
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A description of the construction management process followed. Mr. Rowe explained
the architect teams with the contractor, a fee is negotiated up front, and general
requirements, such as overhead, are agreed upon. He said the terms "general
requirements" and "conditions" are used interchangeably. A costMplus fee basis is used to
develop a budget. He explained the bid process, stating all work is done under a
construction change directive (CCD.) Contracts arB adjusted for down time, and items are
rebid when they come in over what was budgeted for a particular section. He described
the complexity of the construction documents and drawings, stating he is waiting to be
paid for the new drawings prepared as a result of the recent change in plans regarding the
banquet hall and catering kitchen. In response to a question, he said Mr. Baker authorized
him to do the work that would not be disruptive once the center opened. '
A question was raised whether it is common for municipalities to approach projects
without spending limits. Mr. Rowe responded it is not common but it has been done. A
maximum price is usually guaranteed when the approach is defined. He explained the
problems he encountered as the numbers for the kitchen and restaurant started coming in.
While the kitchen was supposed to be designed to feed 800 to 1,400, an 8,300 square
foot dining area would only seat 266 people, according to code. Current standards show
the high end cost of a restaurant is $135 per square foot, so the cost of a 8,300 square
foot restaurant would be well over $1 million before any furniture, fixtures or kitchen
equipment were added.
Assistant City Manager Bill Baker reported on the construction management process
and CCO's (construction change directives.) He explained how the contract for the
Harborview Center was tied to the Municipal Services Complex contract because of the
urgency to move out of the City Hall Annex within one year. As time estimates for design
and construction would span two years, staff was told to use the design/build scenario to
construct the complex. The City Commission was aware of this decision. Then City
Manager Mike Wright advocated a procedure for overall architectural management, to
include an architectural manager, architect, contractor, and City interface. He said the
City saw a way to save money by having a contractor and a single architect to provide
construction management. The MSB project started with a three-person team on a fast
track basis, with Mr. Rowe providing all the services. During space needs studies in
'......) February 1994, the possibility arose to renovate the Maas Brothers building, bring it to
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0--- ADA standards and make it available to SteinMart by mid-May of 1994. To accomplish
this, an architect was needed to start immediately and the City Commission authorized Mr.
Rowe to take it on. The City amended his contract to include the Harborview Center
renovations.
Mr. Baker indicated, as SteinMart neared completion, the City Commission decided to
finish the Harborview Center, so Phases IA and II were authorized. He listed the piecemeal
construction and design elements that went forward at the City Commission's direction.
When discussions turned to first and third floor restaurants, $300,000 was reserved to
apply toward the cost of a restaurant, without knowing what actual costs would be. After
the restaurant contract was not executed successfully, the decision was made to create a
banquet room and use the reserved money toward a catering kitchen. The requested
funds are based on market evaluation of costs to create a banquet/kitchen facility and
bring the Harborv;ew Center project to completion. Mr. Baker said Mr. Rowe's fee for
amending the plans is moderate, and was approved at a City Commission meeting.
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In response to a request from the City Manager, Mr. Baker described the process the
City used in reviewing the documents presented. As the City Commission approved funds,
Mr. Baker held weekly meetings with the architect, and contractor, to identify the money
and what to do with it. As the architect drew up plans, he authorized the contractor to
bid. When bids were within budget, instigating work orders were processed. If bids went
beyond budget and sufficient adjustments could not be made to get the work done, staff
brought the matter to the City Commission. He referred to Pickles Plus Too shell work as
an example. He said staff does not bring a funding request to the City Commission unless
they are sure it is needed. In every step of the budget, items were based on professional
calculations or bids.
In response to questions, Mr. Rowe said the Donnell firm was brought in because of
their expertise in costing and managing large convention centers. Mr. Rowe felt it would
have been better had Globe been on board earlier. Once Globe came in, it was determined
definite changes were needed. Mr. Rowe related how he was able, at the request of the
prior City Commission, to come up with a way to remove the columns and install exposed
trusses for $175,000 without disturbing Stein Mart or the roof. In response to a question
regarding the cost for Pickles Plus Too, Mr. Rowe indicated $100,000 was estimated for
what was thought was going to be a small pub/delicatessen. Instead, this is going to be a
small restaurant, which has increased the cost.
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Questions were raised regarding the life span of the building as modified and what
percentage of the wiring and plumbing has been replaced. Mr. McKinnon said the building
was stripped down to the basic structure. Asbestos was removed, and the roof and skin
replaced. The original building consisted of the lower level with a parking deck and the
south half of the building. In 1964, an additional parking deck was added. Two floors
were added later. No insulation was found in the exterior walls, so IFIS was used on the
exterior to improve aesthetics and insulation. Existing storm drainage was in good shape,
but the Fire Marshal required two stand pipe sprinkler systems to be converted to one
system. The freight elevator was rehabilitated; an escalator and a new passenger elevator
were installed. Electrical and mechanical systems are totally new, but much of the
existing plumbing was retained, especially below grade. New bathrooms were placed on
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.~ the south wall. He estimated the life of the building has been extended 20 to 30 years.
He stated there have been some surprises. Blockage in existing plumbing has also
occurred. He said the facility is as like a new building as it can be.
Questions were raised regarding whether feasibility studies were done. Mr. Rowe said
feasibility was studied with regard to the initial remodeling, but no study was conducted
for Phase II. Mr. Rowe said budget analyses were done as they went. Completion of one
unfinished section of the upper roof, visible while riding down the escalator, is being held
pending the decision on the banquet facilities. The roof will be penetrated by mechanical
systems if the banquet hall and kitchen go forward.
Discussion ensued regarding Mr. Rowe's contract. It was indicated he is asking
$21,000 in fees for the new construction, above what was budgeted. Ms. Deptula
expressed concern staff has been unable to produce a copy of the signed contract, but had
no doubt the City Commission approved the budget amendments and fees.
Mr. McKinnon responded to questions, stating he was not aware of any warranties
being waived because the building is not new, or of additional maintenance contracts being
required. One letter of specific concern related to exempting tile work from warranty
because of the unleveled floors. Mr. McKinnon indicated it is standard practice for a tile
contractor to put in writing that he is not responsible for the effect of variations in
substrate flooring on his tile project. He reported no abnormal tile loosening has occurred
and extra materials are available in storage if any tile replacement is needed.
'"J Matt Renconn responded to questions regarding the computer operated, zoned air
conditioning system. He said each floor has a separate air handler and it is possible to cool
one ballroom at a time.
5. Harborview Center OngoinQ Operations: SteinMart lease, Harborview Center
operations, and restaurant versus banquet room
It was indicated SteinMart has a separate electric meter and pays its electrical cost.
Discussion ensued regarding the lease terms. Ms. Deptula will locate and copy the memo
outlining the terms.
Ms. Deptula introduced Barry Strafaccl, onsite manager of Harborview Center
operations. She said he is subject to the same budget process as City departments.
Mr. Strafacci listed the things he has done since he moved in, with regard to catering
events and scheduling use of the Clearwater Room. In response to a question, he had to
stop showing the Clearwater Room to people wanting to book Christmas parties because
all available space is full for the month of December. He did not stop showing the room
because his agenda item was postponed.
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Discussion ensued regarding the rationale of approving a catering contract before a
kitchen is built. Ms. Deptula indicated it was hoped to bring the caterer on board to help
design the catering kitchen as part of project closure. A question yvas raised why the City
is paying outside consultants to decide on equipment. Mr. Rowe reviewed the background
of McFarland and Associates' involvement, stating they were retained first to evaluate
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" equipment being considered for purchase. Discussion ensued regarding net food and
beverage profit, the percentage paid to the caterer, and the City's profit.
Terms of Clearwater Room rental were discussed regarding return on the food and
beverage service, overhead coverage and Globe personnel salaries. Mr. Strafacci indicated
he was comfortable with the numbers as reported. He was anxious to receive approval to
proceed with marketing his "product."
Concern was expressed funds were approved in 1995 Dnd a catering kitchen
scheduled to open in January 1996, but nothing has been done. Mr. Rowe said they were
assigned the task of designing the kitchen last Fall and McFarland had prepared preliminary
designs. The did not proceed at full speed because of rumors indicating the kitchen
project could be dropped. He reiterated the $300,000 budgeted was not sufficient to
complete the project. It was indicated the $750,000 being requested is needed, in
addition to the unspent funds, to finish the banquet room and catering kitchen, and bring
the project to closure. In response to questions, Mr. Sauers and Ms. Deptula said the City
is obligated to provide a full banquet kitchen and all equipment. The kitchen would need
the capability of preparing and cooking all foods except specialty items like pastries.
,',.:)
Discussion continued regarding the type of cost/benefit analysis done when plans
changed to a banquet hall and kitchen, the factors considered when deciding the type of
restaurant wanted, whether one or more caterers was more desirable, and the feasibility of
a mobile kitchen like the one used by Boston Concessions. Selection, contract terms, and
desirability of a local catering firm were considered. The City Commission had expressed a
desire for selection of a local firm because it was hoped to capture as much local business
as possible. Based on the desire for a local firm and the perceived need for a nationally
established catering contractor, the recommendation for a partnership between Boston
Concessions and Oelectables was brought to the Commission. It was indicated
Delectables was already in business and had an existing clientele from catering functions
before the Kapok closed its largest banquet space. That business is coming to the
Harborview Center now. Discussion ensued regarding costs for catering a function. It
was reported one customer said the Harborview Center charges $25.00 a plate plus room
costs, while Delectables quoted a cost of $12.00 a plate, for the same menu. It was not
known what other factors may have been involved, but Mr. Sauers offered to follow up
with the customer in question.
Mr. Sauers stated the issue of rents, percentages and exclusive catering were debated
at length and he gave evidence regarding the available options to the City Commission last
Fall. He received direction to go with the one caterer concept. When the contract with
Boston Concessions expires, the City may want to reopen the bid process.
Commissioner Seel requested a revised operating budget for the Harborview Center,
stating the figures are "way off." Mr. Strafacci did not agree, stating the reports shows
the Center within $18,000 of the deficit prediction. He will meet with Budget Director
Tina Wilson today to work on next year's budget and make any necessary adjustments
needed to ensure the accuracy of this year's budget. One issue he noted is they have not
received budgeted income from Pickles Plus.
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Discussion continued regarding the $25,000 interest~free bank loan to Pickles Plus
mentioned in earlier discussion today. Ms. Rice reported the eRA guaranteed lump sum
prepayment of the interest on the five year loan. Pickles Plus received the funds in
December 1995 and has begun to pay on the loan. They are using the funds for leasehold
improvements. such as miscellaneous electrical work, tables for the patio and other
furniture and equipment. Commissioner Clark did not expect to see this type of a deal in
the future. Ms. Rice agreed, stating the lump sum payment was a practice of the former
eRA that is no longer being followed.
.-...., Discussion ensued regarding a completion date for Pickles Plus. Mr. McKinnon did not
know the exact date, stating they are waiting for submission of architectural plans for the
deli. A question was raised whether the City can go back out to bid if Pickles Plus does
not come through. Ms. Akin will review their contract. She indicated their time frame is
based on completion of construction and she was not sure the City was ready. Mr. Baker
said the lease stipulates they must open within three months of receiving the Certificate of
Occupancy and they get the first three months rent free. No drawings submission date
was established.
Ms. Rice responded to an earlier question regarding definition of a catering kitchen.
She said two sections in the caterer's contract refer to a production kitchen, which is not
defined in the contract. but is defined in the RFP.
6. Recommendations for Project Closure: Recommended budget amendment
',.'.:)
Referring to the report titled, "Recommendations to Bring Harborview Center Project to
Completion", Commissioner Johnson spoke at length. He pointed out the Commission
could not have voted against the items brought forward last year because that would have
stopped progress. He hoped no Commission ever engages in this type of project in the
future. He expressed concerns the additional funding may not be strictly necessary and he
did not want to burden the project with another million dollars in debt. He felt the items
listed below the $498,400 subtotal were wants, rather than needs and could be delayed.
Ms. Deptula stated $498,400 would take care of the basics. She reviewed the handout.
"Commentary - Funding for Catering Kitchen" providing a breakdown of the approved
budget, less costs for work already completed and expenditures.
A question was raised regarding $82,400 additional funding requested for the cost of
completing the Pickles Plus space. Ms. Deptula said the actual bids greatly exceeded the
$80,600 originally approved. Mr. Baker reviewed how the process evolved and why
Pickles Plus was not approached to repay the additional amount. It was indicated lengthy
debates had occurred regarding City versus vendor responsibilities.
Discussion ensued regarding $55,000 budgeted for the proposed marquee sign.
Mr. Strafacci said this was an estimate by one firm, and the figure may be reduced when
the item is bid. While some Commissioners did not agree with advertisers subsidizing the
marquee, others urged staff to investigate who might be interested in underwriting the
cost.
'J
The meeting was opened for public comment.
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-.....,
Jeffrey Storey expressed concern the facility had been touted as one that could be
used by the entire citizenry of Clearwater and urged further consideration of a public
restaurant. Ms. Deptula cited parking problems, site constraints and potential legal
reasons why this is not feasible. In addition to the need for separate access to the
building, such a proposal would push completion of the kitchen and banquet room back
even further, delaying the revenues needed to go forward.
Stacy Benton spoke at length on behalf of Scheller and Benton, the restaurateurs who
proposed Clearwater on the Bluff as the third floor restaurant. She talked about why
negotiations failed, citing many instances where her experience and her architects'
research do not agree with what the City's architects report. She expressed concern they
had purchased a large amount of used restaurant equipment with the understanding they
had a contract with the City. While Ms. Rice had indicated the City could not take their
proposal to the City Commission, Ms. Benton said she was never notified their deal was no
longer on the table.
Ernst Scheller reviewed the ups and downs of negotiations with Ms. Rice, Mr. Rowe
and Mr. Baker. He said some of their kitchen equipment was bought by the City and is in
use in the Harborview Center. He did not agree with Mr. Rowe's reports regarding what is
needed to complete the kitchen and banquet facility and felt he still has a deal with the
City.
;~ ~
1,.;-::,,/
Mr. Raymond. architect for Scheller and Benton, related his understanding of the
issues, stating the Fire Marshal does not require a separate exit unless they have 600
seats. He indicated the existing restrooms are adequate for the restaurant and fall within
the distance travel requirements. He estimated it would cost $450,000 to build and
furnish a 4,500 square foot restaurant, based on his calculation of $95.00 per square foot.
He estimated additional equipment and air handler needs, urging the City Commission to
consider the restaurant concept.
Mr. Raymond responded to questions how he proposes to access and air condition the
restaurant when no activities are in the center. Mr. Rowe responded with his
understanding of the square footage and restroom calculations.
Ms. Rice was asked to respond to the allegations of Ms. Benton and Mr. Scheller. She
said she remembered the conversations differently. After lengthy discussions, she was not
able to reach an agreement regarding what each party would do. She had stated the City
could not ask the City Commission for money to provide the things they were asking.
Because Benton and Scheller were upset they were left holding the used equipment, she
offered to purchase from them the equipment the City could use and allowed them to store
the remainder in the Annex. She was sorry they remembered the conversations
differently, but stressed she provided several pieces of correspondence and verbal direction
where the City was going with the facility.
'.~
In response to a claim the City was using their equipment, Ms. Rice said they were
allowed to store their excess equipment at the Annex until they could sell it. Ms. Benton
complained a deal to sell the remaining equipment fell through because pieces were
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missing, or not accessible when she attempted to retrieve them. Ms. Rice responded she
informed them in writing the equipment had been moved, and the location.
Kate Kilbride complained of the difficulties she experienced for several weeks trying to
book the Clearwater Room and obtain information regarding rates and availability. She
objected vehemently to spending $14 million of taxpayers' money on something that will
never see a return.
Lucius Pitts stated it is obvious to everyone the City is going to have to find the money
to complete this project. He indicated, if money is found, it can be found for other projects
as well.
The meeting recessed from 1 :52 to 2:08 p.m.
Commission and staff discussion returned to the subject of project closure. General
discussion ensued regarding the $5,000 paid for evaluation of the used equipment, the
original $300,000 allocation being included in the available $450,000, and whether a
mobile kitchen is needed. Mr. Strafacci explained, in response to questions, it is not a
mobile kitchen, but equipment that includes rolling stock such as warmers on wheels to
provide service for buffets and concessions. He said the list was pared significantly before
it was submitted.
'~d.':'\)
In response to questions regarding rehabilitation of an upper level men's restroom,
Mr. Rowe said trying to save an old men's room remaining from the Maas Brother's
building was a mistake. These funds will enable cleaning up the restroom and bringing it
to code.
Mr. McKinnon responded to a question regarding fire stair hardware. While it is
operable, some of the old hardware looks bad and they want to replace it before it fails.
Mr. Rowe responded to questions regarding proposed Clearwater Room upgrades to
chandeliers, trim and ceiling treatment.
Commissioner Seel was not comfortable agreeing to closure before the punch list is
completed. Discussion ensued regarding repairs needed to complete the punch list.
Mr. Baird will meet with the team at the beginning of next week to determine the repairs
still needed. Ed Parker, the construction contractor, said minor allowances adequate to
take care of the remaining costs have been factored in the totals and most are already
paid. He was willing to stand behind that amount. He stressed no additional costs would
be incurred.
Commissioner Seel moved to wait until a final review is completed before deciding on
the final figure. She felt one additional walkthrough would be satisfactory and expanded
on the definition of a punch list.
Commissioner Johnson moved to approve $498,400 for completion of the building,
leaving the lower portion of the list to be approved at a later date. There was no second.
'..J
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The motion to postpone completion pending a final walkthrough was duly seconded.
-'h...,..
Commissioner Clark indicated he was not concerned about the punch list, but
supported the motion because he did not want any more surprises regarding completion of
the project.
. Upon the vote being taken, Commissioners Seel. Clark and Hooper voted "Aye";
Commissioner Johnson and Mayor Garvey voted ~INay." Motion carried.
Adjournment
The meeting adjourned at 2:25 p.m.
ATTEST:lf'-\-l.:. 2. ~-.
City Clerk
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I-Iarborview Center Costs
'\
,
What is the Real Number?
June 14, 1996
~urchase of Maas Brothers Building,
including closing costs
$1,926,710
Approved Construction Project Budget
10,793,610
Approved Furniture, Fixtures &
Equipment Budget
Subtotal #1
496,406
_ J3.216.726
Maas Brothers Building Operations Expenditures
136,565
I'':;
Subtotal #2
J3.353.29t
City Department Expenditures
142,408
Subtotal #3
13.495.699
Currently Recommended Budget Increase to Complete
the construction project
730,900
Subtotal #4
14.226.599
,~
EXHIBIT A
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