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10/28/1989 CITY COMMISSION SPECIAL MEETING October 23, 1989 The City Commission of the City of Clearwater met in regular session at City Hall, Thursday, October 23, 1989 at 6:00 p.m., with the following members present: Rita Garvey Mayor/Commissioner Don Winner Vice-Mayor/Commissioner Lee Regulski Commissioner William Nunamaker Commissioner Richard Fitzgerald Commissioner Also present: Ron H. Rabun City Manager M.A. Galbraith, Jr. City Attorney Cynthia E. Goudeau City Clerk The purpose of this meeting is to discuss the financing of improvements at Jack Russell Stadium and to approve two contracts for stadium expansion and building renovations at Jack Russell Stadium. Item #1 - Third Amendment to Lease Agreement between the City and the Philadelphia Phillies for Jack Russell Stadium. Michael Wright, Assistant City Manager, stated that subsequent to the October 19th Commission meeting, he entered into further discussions with Mr. Giles regarding how to deal with the contracts that were coming in over the estimate and would exceed the $800,000 required for the City to pay in the agreement. He stated staff is now recommending the contracts be approved as submitted with the $356,000 in additional financing to be arranged by the City with a loan to our General Fund from our Special Development Fund. The Phillies would pay annual lease payments of approximately $86,600 for five years or $433,000. The payments are equal to a five year loan of $356,000 at 8% interest. The spring training relationship between the City and the Phillies would remain until the year 2002. The City would postpone taking its one-fourth share of ticket sales until 1995. Currently, the agreement provides the City with one-fourth of the revenue from all ticket sales in excess of 4,600 tickets sold per game beginning in 1990. Questions were raised regarding when the first payment would be made to the City and it was indicated it was assumed it would be during spring training. Concerns were expressed regarding whether or not the financial status of the Phillies organization has been checked. Clarification was requested regarding the total $1.15 million in improvements and the Assistant City Manager indicated there are actually three separate contracts, two of which are being considered tonight. A third contract for equipment for the concession stand will be opened within ten days and is expected to cost approximately $100,000. He said there is a verbal understanding between Mr. Giles and the City that if the bid for the equipment for the concession stand comes in over $100,000, the bid would be scaled back so that it would not exceed that amount. Concern was expressed regarding the amount left in the Special Development Fund and Mr. Wright indicated that the $98,600 indicated was as of the end of the Fiscal Year 1988/89. There will be an additional $252,000 placed in this fund for the 1989/90 fiscal year. In response to a question, Mr. Wright indicated the 8% interest was chosen as it was the current rate being offered for five year treasury notes. Mr. Wright explained that by delaying the share of ticket sales the City will actually bring in more revenue as the latter six years ticket sales should be higher than the first six years. The point was made that, by doing this now, we forego the ability to negotiate that point in the future. Concern was expressed that there is no specified payment dates in the contract and this needs to be specified. Clarification was made that the funds to be used for this loan are not road and drainage monies but rather interest earned on the Special Development Fund. Staff is requesting the Commission approve the third amendment in concept and allow a special meeting on Monday, October 30th to approve the binding document. Some concerns were expressed that we are a lending institution to a profit-making organization which causes some basic philosophical problems. Commissioner Nunamaker moved that pertaining to the October 23, 1989 memo from Michael Wright regarding changes to the agreement with the Phillies and the proposed third amendment to the Phillies agreement be approved in concept with the binding document to come back for Commission approval. The motion was duly seconded. Further discussion ensued regarding the amendments being made on whether or not this is a good thing for the City. A request was made that staff assure that we are not asked to increase the amount to be spent on improvements at Jack Russell Stadium again. Also, a request was made that language be included that if for some reason it is found that we do not have to spend the entire $1.15 million that we not do so. It was also requested that language be changed to specify that the Phillies would pay any shortfall. Upon the vote being taken, Commissioners Winner, Nunamaker, Fitzgerald and Mayor Garvey voted "Aye;" Commissioner Regulski voted "Nay." Motion carried. Item #2 - Contract ($475,000) for Additions and Alterations to Jack Russell Stadium to Southern Bleacher Company of Graham, Texas. In conformance with the agreement between the City of Clearwater and the Philadelphia Phillies Professional Baseball Team, this contract is for the installation of two (2) stadium extensions (3,000 seats) on either end of Jack Russell Stadium. A question was raised regarding whether or not this has been approved by the architect and it was indicated this has been done. Commissioner Winner moved to award the contract for addition and alteration to Jack Russell Stadium to the Southern Bleacher Company of Graham, Texas, for the sum of #475,000, which is the lowest and most responsive and responsible bid submitted in accordance with plans and specifications and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. Item #3 - Additions and Alterations to Jack Russell Stadium - New Visitors Clubhouse and Additions. In conformance with the agreement between the City of Clearwater and the Philadelphia Phillies Professional Baseball Team, this contract is for the construction of new concession stands, toilet rooms, and storage area, New Visitors Clubhouse and Addition to existing clubhouse, and new concrete flatwork, ramps, and paving. In response to a question, Michael Wright, Assistant City Manager, indicated that the time of completion for this contract is February 1, 1990. Commissioner Winner moved to award the contract for Addition and Alteration to Jack Russell Stadium to Consolidated Building Concepts, Inc. of Largo, Florida for the sum of $484,241.00 which is the lowest, most responsive and responsible bid submitted in accordance with plans and specifications and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. Staff was directed to schedule a special meeting for 9:00 a.m. on October 30, 1989, if they are able to act on the amended agreement with the Phillies. The meeting adjourned at 6:59 p.m.