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05/24/1994 (2) :,. ';,:'::' '>. ': ,'" :" .'/ :','.., r', ::,:~.:..'~_:.'.~':".",,,,,,,,,,._~-.I.~..,,,.,...:., ',"l . ',' ',"" ': ,,:.: :'#',' "',,,~, ':, '.,,' ','.,: ".", :;j\(,'. ,..'" "I~" '."l'::" l' , . , , . . , , , .<, ',>' . ~ ':"0'>--4 " ' ~ .._....-..~c....,~~:. ..... ,'...,.:,.,. '\>1f""'~ :,I,,~~' . \,' ". '::; : : ' · CHARTER REVIEW . COMMITTEE MINUTES ' Date cgCfO . ' '.' '_' ..,', 1 ;'"..:,." ',"",,'.,',\"':,.,' ,'>", ,:' '" ," ...:, "'. ',",.,",' ,.' ,:> " "; ",';~~ ,',,'.';':',.. ',: :~1,0 ",. "",~ : 1.'~ ,'I ' ''II,'~' \~ '~' ,I' -1,..":- , , I', ' " I ,. " "n. .' [_. " ,,( J ,! ' " , ,'. ' . , :: ",' t":',,,P:' ,,,,,,_;"':.4:"",1 ""'::':,,::~'..~.. _,:,"';'L'::';\.4'.":L"":~ {;_~,"'," :(,':";r", ',' ';"'. .~' ,. ',,,"',,~..," """"'., '.' " '",',",: ',:, ~ :,.'t ':,,' ::",', .. , , ' , ... J ~.. . . ", ,;~., I ..r,,:"., ~ i > I', , I ~ CHARTER REVIEW COMMITTEE MEETING May 24, 1994 ~ The Charter Review Committee met at City Hall on Thursday, May 24, 1994 at 7:03 p.m. with the following members present: Gerald Figurski, Chairman Jerry Lancaster, Vice-Chairman Anne Garris (arrived at 7:45 p.m.) Kenneth Hamilton Allijewski (arrived at 7:45 p.m.) Curlee Rivers Tony Salmon Les Smout Absent: '> Joe Evich Karen Seel Also present: o Kathy Rice, Deputy City Manager Mary K. Diana, Assistant City Clerk The Chairman called the meeting of the Charter Review Committee (CRC) to order. Deputy City Manager Rice was invited by the CRC to attend the meeting to answer some of their questions. Community Redevelooment Agency (eRA) Ms. Rice stated authority is delegated to the Community Redevelopment Agency by the county Indicating only commission members can serve on the CRA. In response to a, question, Ms. Rice indicated the Metropolitan Planning Organization, Pinellas Planning Council. EMS, and the Pinellas Suncoast 'Transit Authority each have a commission member serving as a representative. The Board of Pension Trustees consist of the commission members. o o 1 ..",..-I.( .\" ,... ....... .,. ..., ..~ :'->...' ''':' ..... ,. .. .~:.. ..:, '('., . ,1 I " I.t I 13 ' ,J. " ", ': .. . ' ,:.1:'-:, '; j '".,:",~: ~' ,~' +', '~'" ',/ (' ~, ,,' '; ': : .:. .:' ~ :. '< ~"~'i' ~_ :~~.....j\..':~"_:'t~" ....:~....:.:..~~ -~ .~::'. ~,'., :~.:, . '.: ,:', ,..' ';. " .: I ,': ':':. ", ,;,:" " ~ :..' ", ',' ': :, : -:'.. '.: :':, '",.",:. " ': ','" ':,' ~ -.'./ , ' : .":~,: ': ' ',. " ::' ~~:,." ," ,": ,:', :', ';.-,' \ I' Concern was expressed in having the same body serve as both the commission ~ and the CRA. Ms. Rice indicated each body is governed by different rules. She said she has seen no abuse in the city structure by the commission also functioning as the eRA. ~ Concern was expressed the charter allows property to be sold to another governmental entity for less than appraised value. It was questioned whether this was in the best public interest. Ms. Rice indicated there are public purposes to be served citing land swaps that have been of great benefit to the city. Discussion ensued in regard to the rules governing the eRA being less stringent than those governing the commission. Concern was expressed when property is transferred to the CRA, there is more flexibility. Reauirements fa Durchasing Dropertv and/or construction of buildings Discussion ensued in regard to property purchases by the city. Ms. Rice referred to a memo from the city's Real Estate Service Manager summarizing the statutory requirements in Chapter 119 governing city property purchases. She explained the public disclosure requirements and exemptions regarding appraisals. (~ :YJr'!>~ Ms. Rice noted the city recently adopted an ordinance which provided all conveyances of city owned real property contain a use restriction with a right of reverter to the city in the event any future owner would seek to use the property for a purpose that would exempt it from ad valorem tax. In response to a question, Ms. Rlce indicated if an offer for property by the city is public information, an appraisal is not required unless there ;s a code or charter requirement to do so. It was indicated if an exemption is requested to the requirements of Chapter 119, public disclosure is not required until an option contract to purchase is obtained. A question was raised if an appraisal would provide a starting point on where to negotiate. Ms. Rice said staff is available to do appraisals. Concern was expressed in restricting negotiations by requiring early disclosure and the expense of obtaining appraisals. ,I ". ~ I i' Discussion ensued requiring the city to have appraisals done when purchasing property; however, not putting this requirement in the charter. 'Wi A suggestion had been received the commission not purchase any real property nor construct any new building costing in excess of $2 million without first obtaining two proposals submitting construction costs for bid and then submitting purchase or " mlnoh0524.94 2 May 24, 1994 ,',",":",,:_" P,",;, "':')":>" "i", ":'\,"',"_,,' ,:::,:'':',::',:':: , , ,h " ' 1 '. . ~I .I,...... ~. I '" " ",.,. '\ ',, ,,' , " " ' '. ~ .1..... I, Il:-.I , I~ ',,' '" ;-', ' ., , , A question was raised what would a "no vote" reflect regarding the proposed referendum on city hall. It was felt it would not be clear as to what the public wanted. ~ construction costs to public referendum. Concern was expressed In having a necessary project go to referendum and being voted down. Discussion ensued in regard to the Sun Bank building purchase. ~ An opinion was expressed if the city obtains appraisals as a matter of practice, this requirement should be in the charter. Concern was expressed In having to be too specific such as how old an appraisal can be, who Is required to provide one, etc. Questions were raised regarding the proposed $22 million municipal services building and police facility. Ms. Rice reviewed the bIdding procedures indicating this facility would be done under a sealed bid scenario. Referring to Article IX. Fiscal Management Procedure, a question was raised how the city can build a $22 million facility and not be roqulred to go to referendum. An opinion was expressed there should be restrictions rogarding purchases of this magnitude. Ms. Rice indicated the city's bond counsol felt a municipal services facility and public safety complex would be a public safety Issue addressed in Article IX. A suggestion was made to delete the language in Article IX dealing with public health and safety. Concern was expressed for necessary projects such as the sewer plant being required to go to referendum. It was felt projects mandated by the state and federal government should be identified in the charter. (:> Concern was expressed in the way the $22 million project was handled as it was not clearly identified on the agenda and it was discussed very late in the evening. Ms. Rice indicated there had been public debate. It was a situation where employees had to be moved and the money was available. An opinion was expressed there should be limitations placed on the commIssion regarding agendas and public notices. It was noted commission rules provide no Item can be added to the agenda without 72 hours notice, if practical. It was felt the language in the charter regarding public health and safety allowed too much flexibility. Ms. Rice noted ballot language is limited and sometimes it is difficult to explain the issue adequately. ~ A request was made for staff to provide the city ordinances regardIng bidding procedures. till mlnch0524.94 3 Moy 24, 1994 . .surolus propertv . Deputy City Manager Kathy Rice reviewed a memo dated January 21, 1994, from the former city attorney regarding the 15-year limit on leases of city property and the provision that if property is leased for a period term longer than 3 years, it has to be declared surplus. The charter does not require the city to solicit bids or proposals before deciding to renew a lease. She said the intent of the charter was not clear and staff would like clarification. An opinion was expressed after property has been leased for 15 years, consideration should be given to whether there should be a different use for the property rather than just renewing it. A question was raised if a declaration of surplus can be revoked and it was indicated not when the property has been donated. A question was raised when the city has donated property. Ms. Rice responded Jots in Greenwood were donated to the Neighborhood Housing Services who in turn donated them to the Habitat for Humanity for infill housing. Other examples cited were rights-at-way to DOT, easements, etc. . Discussion ensued regarding whether property in excess of $1 million should go to referendum before it can be transferred. It was questioned whether this would be too restrictive to the city and Ms. Rice cited the sludge farm in Hillsborough as an example. An opinion was expressed if the city sells property at the fair market value, it need not go to referendum. In response to how many $1 million plus transactions a year the city handles, Ms. Rice indicated there could be many due to road improvements. A recommendation was made to appoint a task force to review the surplus section of the charter. The majority consensus was not to appoint one. Concern was expressed in having to go to referendum every time a $1 million road project came up. Discussion ensued in regard to obtaining additional information regarding the number of city leases and terms before any recommendations are made by the eRe. \J It was felt the word "transferred" should be clearly defined. o mlnch0524.94 4 May 24, 1994 <' ,'c,l,. I,' ~ ,! There was discussion regarding the public needing to be educated regarding the pros and cons of going to referendum. It was indicated the city cannot be run by referendum. ~~ . , A recommendation was made to require a 4 to 1 vote for transactions over $1 million. The majority consensus was to recommend a super majority. A suggestion was made to use the language "80% of the commission" in case the number of commission members increases. Concern was expressed in the city transferring property to the CRA and the CRA in turn selling the property for less than the appraised value. It was noted the Florida Statues allows the eRA to sell property for less than appraised value. It was felt the charter should be more restrictive than the state law. In response to a question, it was indicated the CRA gets their money from tax increment financing. A question was raised If the CRA has the ability to borrow money from parties other than the city. Ms. Rice indicated they could. Concern was expressed in using ad valorem taxes to purchase property and then declaring it surplus. ~~ I-H. Discussion ensued in regard to the East End property and it was noted the city owns 90 percent of it. A question was raised why the city bought property in the eRA redevelopment area, and it was indicated it was to be used for the city hall complex. A question was raised when the commission buys property should the purpose for the purchase be required to be specified. A request was made to have Peter Gozza, Executive Director of the CRA, at the next meeting to provide input. Discussion ensued in regard to the changes being proposed for Section 2.01 (d)(4). Member Hamilton moved that Section 2.01 (d)(4) be amended to read as follows: li!l Surplus property. Prior to the sale, donation, or other transfer, or to the lease for a term longer than tfflee five years of any municipal real property, the property must be declared surplus, and no longer needed for municipal public use by the commission at an advertised public hearing. '" ." mlnch0524.94 5 May 24. 1994 j',' ,':,:":",:',,,,':' '.~.,'.-:,,/,.',.~., '~.:~~.:'~~..~:.::..,'~~..........:.-.;........:.....:....:~.....~,~,., "'t"i';. '.. ':,' ':",,:' :" .,: "'.'''''::':'{,,:'';,~,~::'':',:''';''.'.: .,,':,',', :~" ,,;:,:.....":, .. ~ Except in the case of right of way or casements or transactions with t}6Yernmental entities os described herein, no reol property may be given away or donated without prior appro....al of the qualified voters of the city at referendum. ~ ib.l In the event the fair market value of a parcel of municipal real property is in excess of one million dollars as declared by the commission based on appraised value, no such real property, including but not limited to a transfer to another governmental entity, may be conveyed without an affirmative vote of 80 percent of the members of the commission. 1&1 Surolus Rei* property dcol:lfed surplus may only be sold to the party 2. non-governmental individual or entity submitting the highest competitive bid above the appraised value, ffiteCpt where the rcal property is proposed to be transferred to another governmental entity. ill.l Surplus real property may be exchanged for other real property having a comparable appraised value. ill No municipally owned real property... !9l heascs of real propert.(. The commission has the power to lease municipal real property for #tfee five years or less without declaring it surplus. Municipal real property declared surplus may be leased for a maximum of -1-6- 20 years. provided, however. nothing hereIn shall oreclude renewal of any lease. .tf~~. I". '~ 1Ji~~fI 1hl Industrial park property may be leased up to 30 years with an affirmative vote of four fifths 80 percent of the commission after a duly advertised public hearing... ill All leases of municipal real property... ill! Right-of-way or easements. No right of way or easement... f6} i2l No municipal or other public real property lying west of Osceola Avenue, east of Clearwater Harbor between Drew and Chestnut Streets, being further described as:... The motion was duly seconded and carried unanimously. . ",,:,:,\ f"";' The meeting recessed from 8:44 p.m. to 8:50 p.m. u minch0524.94 6 Mov 24. 1994 :.,~," '_' '..' :"", ~., .:,,"" !/\~',,~":'~;I'~:'. :',:, ,:.... ',' .','",',:: ':, ,'" ,;' ' ,:,', ' ,", I""" : ", ,.:'<, ..,',:':,:',....'~,>,.>':,' '''''':;''>'-:;,'\ :':> :,~ "",' ',:'" ,,:", ".:,: ',,, ',' ,',: ".:....' "-" ,'.. ".'~",':' .' ", ' .~< ': ,'.' :'", , ",';,,":'." "",,<<"::':, :';', , . ' . , " ,1.1\" ..=.t. ' [J ,', ....', ,',. ,,' ".,." ,'" ','! >;",~ ~ : ",',,' : :', :, '/ : ,~ .. :' ':: ':1' .,~: J .:; ...::.~:" '.':'.' ,";,', :':~J:.:~~~.....:. ,'..,...L~:.. .. 'l' ..~i.::;~~..i:~";', :", ~'.:, ":v' " I, ':, ~ .:\ ~, ,:: ", ':', .' ,," ':' ,',;, I' ' , ...", ".,:: ,::,..: : : I :':: .. ': ~ ,: .' ..;' '. ':-. ' ,: , : ' '.,,' ',: .':'+'. . ~,~ . '. ; '.;:' .... ..:, .;:' ..:: ' ~ } Reaulrements reauirlng purchase of orooertv and/or construction of buildings f~ Discussion ensued in regard to previous conversation regarding the commission not purchasing and/or constructing any building if the value is in excess of $2 million without first obtaining two appraisals. It was noted an appraisal is not obtained on the construction of a building. An opinion was expressed a new appraisal is not necessary If one exists that is fairly recent. It was noted there are real estate people on staff. Discussion ensued in regard to negotiating real estate deals out of the sunshine and it was indicated staff can but the commission cannot. It was questioned whether an appraisal would tip one's hand. It was indicated once an appraisal is obtained it is public record. Concern was expressed by not obtaining an appraisal the city may be taken advantage of. It was felt an appraisal should be done by a state certified appraiser. f,1.c;)' \ , . ':.-f{. Discussion ensued in regard to adding language to this section that the commission shall not purchase any real property in excess of $2 million without first obtaining two appraisals from state certified appraisers. A question was raised if it was more appropriate to have an independent appraiser when purchasing property in excess of $2 million. There was discussion in regard to requiring one appraisal from a state certified appraiser for purchasing property under $2 million and requiring two appraisals from an outside state certified appraiser for property purchases in excess of $2 million. A question was raised regarding the intent of the words ildisposed of' regarding municipally owned property identified as recreation/open space on the city's land use plan map. It was felt the intent was that nothing could be done with this property unless approved at referendum. General Accounting Office (GAD) An opinion was expressed there should be an audit staff reporting to the commission charged with the responsibility of finding enough savings to support the cost of that department. This office should be reviewing customer service, internal controls, the number of employees, procedures, doing investigations if necessary, etc. They should also cooperate with and assist the outside auditor to minimize outside costs. Q A question was raised if the GAD would be separate and distinct from the current internal audit staff. It was indicated it would be the same; however, would not rep'ort to the city manager. I':"::;'" \:I mlnch052.4.94 7 May 24. 1994 --~.,I;""'''t,. ""Ii .,.1.,1 ".. ~ '~'" '~''L :; J I, " J ::"::':'::'::_" ';:',-,,"':' :,:,;;" \....> ,: ",'....;' ,,' .,,',' ,": ,':",',.' '. ~',', ',',' ::, ,,", ',;, '>',., .'.. ':.',' " ",:':' ~"'\,' ~::':",~..,'" ,'>",:,':', ,"':,::"'/~',>" ',' . , '" "'l~1 .~] ,~., "') '; ',."':'",;',.". , ;. , ~ " .' ", ~J., ~ ' '}, t ',' " , " I, ' ~ I~ .6:i;~ ~\d '. v.h \/ij ~ "" " , ' A question was raised as to what the commission would do with the information provided by the audit staff and it was indicated implement their recommendations. It was believed having the internal audit staff reporting to the commission would not preclude them from doing things for the city manager. An opinion was expressed that from a practical standpoint the commission cannot monitor the financial function on a regular basis. If there is concern the internal audit staff receives their paycheck from the city manager, concurrence can be required when hiring and firing the internal auditor. It was felt there may have been a problem due to the internal audit office being understaffed. It was proposed rather than using the term GAD to use the title Inspector General and have this position report to the City Attorney. The internal audit office would be responsible for financial and compliance functions. Concern was expressed in the legal department losing their effectiveness by getting involved in policies and procedures. A question was raised if what is attempting to be accomplished by creating a GAO could be done within the confines of the present structure by having a three~ member staff report to the city manager. Discussion ensued in regard to the new internal auditor proposing to review a quarterly calendar with the commission and the city manager. One of the auditors could be assigned specifically to efficiency and operating type audits even though he reports to the city manager. Concern was expressed in having two audit departments. An opinion was expressed that the new internal auditor should be given the opportunity to function. Concern was expressed in creating a new department. Member Lijewski moved that the internal staff report directly to the commission and serve at their pleasure to perform defined functions. The motion was duly seconded. An opinion was expressed the city manager should have auditors under him primarily to perform the mundane financial functions. Having an audit office report to the commission gives them an arm to get information to make a decision rather than going to the city manager. Concern was expressed in the potential of a commission becoming overly zealous creating alot of additional work. It was felt the financial function should be where it is currently. Upon the vote being taken on the motion on the floor, Members Garris, Lancaster, Lijewski and Figurski voted Itaye;" Members Hamilton, Rivers, Salmon and Smout voted "nay." Motion failed. mlnch0524.94 8 Mav 24, 1994 ;~~~~\~:i);>:~:":'.: ;.";:"1:. ' . , , .. .' ',' . ~+ 'c~. ,.'..,...'-'.t""!..~,..\.l:",..:--..::.\I~..':\;.C.!.,'-I,I>~iT:<:;:.J.~ . , .T ~ ' . ~ Member Salmon moved to have the existing financial and compliance functions performed by the dty's internal audit staff remain under the jurisdiction and control of the city manager and that other accounting or review functions, including but not limited to, economy and efficiency be done by staff reporting directly to the commission. The motion was duly seconded and upon the vote being taken, Members Salmon, Rivers and Smout voted uaye;u Members Garris, Hamilton, Lancaster, Lijewski and Figurski voted unay. U Motion failed. '~ I Member Lijewski moved that the internal audit staff report directly to the commission and serve at their pleasure to perform defined functions. The motion was duly seconded. Upon the vote being taken, Members Garris, Lancaster, Lijewski, Salmon and Figurski voted "aye;1t Members Hamilton, Rivers and Smout voted !tnay.1t Motion carried. Meeting dates. Charter Review Committee meetings were scheduled for Wednesday, June 1, 1994, at 5:30 p.m. and Wednesday, June 22, 1994, at 7:00 p.m. Locations to be determined. The meeting adjourned at1 0:15 p.m. Attest: .~ .~'~ .. o mlnoh0524.94 9 Mav 24. 1994 "''in ~ ;, ~....., "\ "'..~. Ui..f ":' ,,',' ''''1,}''-' " ' it~;;~':.:~l\"~~' i' I:,~,t.,.~:~.. .