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03/30/1989 CITY COMMISSION SPECIAL MEETING March 30, 1989 The City Commission of the City of Clearwater met in special session at the City Hall, Thursday, March 30, 1989, at 9:02 a.m., with the following members present: Rita Garvey Mayor/Commissioner Lee Regulski Commissioner Don Winner Commissioner William Nunamaker Commissioner Absent: James L. Berfield Vice-Mayor/Commissioner Also present: Ron H. Rabun City Manager M. A. Galbraith, Jr. City Attorney Cynthia E. Goudeau City Clerk The Mayor called the meeting to order. Item #1 - The Oaks of Clearwater Retirement Center The City Commission approved a refinancing plan for The Oaks of Clearwater Retirement Center in December, 1988, however, the principals were unable to close the loan. The Gulf Breeze Pool Series E Bonds became unavailable and the Nursing Home portion of the Retirement Center was determined not to be eligible for financing under the HUD/GNMA program. Therefore, the loan agreement and secondary loan agreement have been modified. Ordinance 4738-88 approving the plan for the acquisition and improvements to The Oaks of Clearwater will not need to be amended. The plan now is for a loan through the Gulf Breeze Loan Pool Series C1 of $27,000,515 and a loan for the nursing home through Florida National Bank of approximately $6 million. There has been a net reduction in the debt on the facility of $4,485,000 at closing. However, the loan documents allow The Oaks to borrow an additional $4 million on parity with the two mortgage loans, but on the condition the debt never exceeds the equivalent of the $38 million debt originally contemplated for the project. The City is still acting as a conduit borrower and this will have no effect on the City's liabilities. There are four new participants in the transaction: Underwood, Neuhaus and Company acting as Remarketing Agent; Sumitomo Bank acting as Liquidity Facility Provider; Eagle Mortgage Company as the Mortgage Company; and Sun Bank acting as Trustee. The debt obligation will not appear on the financial statements of the City and will have no effect on the debt limitation of the City Charter. In addition, the City will not be responsible for monitoring the facility for payment of principal and interest on the bonds nor will they have any financial accounting or reporting requirements upon issuance of the bonds. The City of Clearwater's name will not appear on the bonds. Ed Bulleit of William R. Hough and Company, the City's Financial Advisor, reiterated this change will have no effect on the City of Clearwater and the City will have no financial responsibilities. A concern was raised that because the bulk of the project is now residential and not the nursing home, there is possible violation of the Charter limitation on the issuance of the revenue bonds. Dan Livermore, Bond Counsel for the City, stated a residential retirement community falls under the health portion of the exemption from the Charter limitation, and he would give a written opinion to that effect. The City Attorney stated that when the ordinance was adopted in December, it allowed some modification should the Commission determine the agreements are in substantially the same form as adopted. He stated it is his opinion that they are and the Commission would need to approve the amended Loan Agreement and Secondary Loan Agreement. Commissioner Winner moved to approve the Amended Loan Agreement and Secondary Loan Agreement on behalf of The Oaks of Clearwater Retirement Center. The motion was duly seconded and carried unanimously. Item #2 - Clearwater Beach Hotel Settlement Florida Clearwater Beach Hotel, which owns lots 1-5 of Clearwater Beach Park Subdivision, has filed a motion to intervene in the consolidated lawsuits relating to James R. Gray and other Clearwater Beach property owners. A hearing has been scheduled for April 10th for a hearing on the motion. The intervenor now wishes to discuss the possibility of entering into a settlement agreement which is similar in most respects to the settlement agreement which was approved with the property owners in the previously referenced case. The City Attorney recommended changes to the agreement as follows: 1) In paragraph 11, in order to incorporate a last minute correction to the other settlement agreement, delete the reference to "jet skis" and add the following: "With respect to the above uses of the Beach Property, the Property Owner agrees to comply with the provisions of Article VI of Chapter 114, Clearwater Code of Ordinances, and the City agrees that it will not unreasonably withhold any waiver that may be sought pursuant to such Article."; 2) In paragraph 18, fourth line, change "54 units" to "48 units."; 3) In paragraph 18, add the following: "The amount of density computed in accordance with this paragraph will not be recomputed at any future date but will be the final density available to the Property Owner for future development.; 4) In paragraph 23, delete the last two sentences. In response to a question, the City Attorney indicated that by becoming an intervenor in the suit, the Florida Clearwater Beach Hotel would become a part of the suit. Harry Cline, Attorney representing Florida Clearwater Beach Hotel, stated they have no objection to the City Attorney's recommended changes. He stated their first goal is to obtain the same settlement as their neighbors; if they are unable to do so, they feel the settlement is inappropriate and they would seek damages. He stated the settlement agreement with the property owners in the other suit adversely impact the Clearwater Beach Hotel. Mr. Cline reviewed the history of litigation regarding the Florida Clearwater Beach Hotel as well as that of the "Gray owners." Discussion ensued regarding the impact of the settlement on the Florida Clearwater Beach Hotel property, whether or not there was an adverse impact and if the Clearwater Beach Hotel is in a unique situation. Discussion also ensued regarding a Quit Claim Deed to the City by the Florida Clearwater Beach Hotel for property seaward of the hotel and whether or not allowing the Clearwater Beach Hotel use of this property would violate the Charter. Commissioner Winner moved to approve the settlement with the Florida Clearwater Beach Hotel as intervenor in the James R. Gray et al lawsuit. The motion was duly seconded. Discussion ensued regarding whether or not a precedent would be set by this action and result in similar requests. Upon the vote being taken, Commissioners Winner and Nunamaker voted "aye." Commissioner Regulski and Mayor Garvey voted "nay." Due to the tie vote this item is continued until the next regularly scheduled Commission meeting of April 6, 1989. Item #3 - Sheraton Sand Key Resort DRI Settlement Agreement The State Department of Community Affairs (DCA) filed an appeal regarding approval of the Sheraton Sand Key Development of Regional Impact (DRI). Paula Harvey, Acting Planning and Development Director, stated the primary concern of the DCA was the evacuation facility. She stated this was not ignored in the Development Order as it was stated it would be provided for, however, the DCA wants specifics in the DRI. Steve Siebert, Attorney representing the Sheraton Sand Key Resort, stated the DCA was not involved in the DRI review. He stated he has talked to the DCA and they appealed due to the time frames. A settlement has now been reached, DCA wants to review hurricane evacuation plans and requested they be ready earlier in the process than had originally been proposed in the DRI. The Acting Planning and Development Director indicated all the items that were of concern to DCA have been addressed. Commissioner Winner moved to approve the Settlement Agreement. The motion was duly seconded and carried unanimously. Item #4 - Dunedin Pass Project At the December 15, 1988 City Commission meeting, the Commission approved the paying of 14%, or at that time the projected funding of $8,400, for the costs proposed by the Pinellas County Scope of Services for the sampling program for Dunedin Pass. On March 9, 1989, the City received an invoice from Pinellas County for these services at a cost of $115,113. The request is for the City to pay an additional fee of $7,715.82 for the total cost of $16,115.82. The funding is available in the Special Development Fund. A request was made that the Commission receive periodic reports regarding the progress of improvements to the Bay. It was also requested that signs be placed designating seagrass areas. Commissioner Regulski moved to approve the additional payment of $7,715.82 for the City's contribution to the Scope of Services proposed by Pinellas County for the sampling program for Dunedin Pass and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. It was also stated there had been three or four manatees in Clearwater Harbor over the weekend, and that there needs to be some effort to protect these animals. Item #5 - Annual Evaluation of the City Manager The City Manager was hired April 4, 1988 at which time it was agreed that an evaluation and salary review would be done at the end of one year. Discussion ensued regarding what actions to take in order to evaluate the City Manager and consider a salary adjustment. Concern was expressed that input was needed from middle management, and a request was made by the Mayor that the Commission consider hiring an outside consultant to perform a "language of climate" survey. Discussion ensued regarding the need for such a survey, whether or not salary should be tied to the evaluation, and other possible processes to use. Consensus of the Commission was that a salary adjustment be considered at the April 6, 1989 meeting, and that options for the evaluation process be discussed at the April 3, 1989 work session. Other Commission Action The Mayor questioned Pinellas Planning Council (PPC) procedures and whether or not there was anything the City of Clearwater could do to help. Commissioner Winner, Chairman of the PPC, stated currently only governments having jurisdiction over property can request an amendment to the Land Use Plan, and that the City is now placed in a position where it has to annex property prior to making requests for Land Use Plan amendments. The City Attorney stated he will be providing possible corrective action at the April 3rd work session. The City Manager reported there would be a "kick-off" meeting regarding the Clearwater Pass Bridge Project at 5:00 p.m. on the 20th of April. Concern was raised regarding the Budget Advisory Committee as most members have resigned. It was stated the problem is enough direction has not been provided to the board and that board members become disillusioned when their recommendations are not acted upon. Commission consensus was to discuss the Budget Advisory Committee at the April 3rd work session. The Mayor requested input regarding styles of watches which are being contemplated for use as gifts to visitors. No consensus. The meeting adjourned at 10:51 a.m.