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12/19/2000CITY COMMISSION SPECIAL MEETING CITY OF CLEARWATER December 19, 2000 Present: Brian J. Aungst Mayor/Commissioner J. B. Johnson Vice-Mayor/Commissioner Robert Clark Commissioner Ed Hart Commissioner F. David Hemerick Commissioner Also present: William B. Horne II Interim City Manager Garry Brumback Assistant City Manager Bob Keller Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Keith Ashby General Services Administrator Brenda Moses Board Reporter The Mayor called the meeting to order at 9:00 a.m. at City Hall. ITEM #2 - Approve Use Agreement with Philadelphia Phillies The City has been developing the means to build a new community sports complex. The next step in conjunction with the City’s development plans, which utilizes funds provided by the State, Pinellas County, the City, and the Philadelphia Phillies, is to approve a use agreement between the City and the Phillies. Pursuant to the City’s application to the Office of Tourism, Trade and Economic Development, to qualify for funds under 212.20, Florida Statutes, a fully executed Use Agreement must be entered into prior to December 31, 2000. The Use Agreement is the legally binding document that details the terms and conditions precedent to the use of a new community Sports complex by the Phillies for spring training. The main components of the Use agreement are as follows: 1) The initial term of the agreement is 20 years with the team having one five-year extension right and the city and team having three mutually agreed upon five-year extensions; 2) the mutual covenants of the parties, which include ownership of the facility, home field commitment, Florida State League commitment and environmental laws indemnity; 3) use, operation, and maintenance of the facility that includes Phillies use, public bodies use and partnership events; 4) the marketing programs as set forth by the conditions provided by Pinellas county; and 5) revenues, fees, taxes, and insurance responsibilities and requirements. General Services Administrator Keith Ashby introduced those involved in the process. The term sheet was approved in September 2000; the interlocal agreement in November 2000 and the development agreement should be completed in January or February 2001. Today consideration is being given for approval of the use agreement. This document is not site specific but deals with how the project will operate economically and operationally. It includes broad guidelines already approved in the term sheet. Mr. Ashby reviewed the expenses and revenues for the current facilities and projected expenses and revenues for Carpenter Field Complex and the new sport complex. He said one of the major accomplishments of this use agreement is that the Phillies have agreed to contribute $587,000 in advertising annually. Mr. Ashby reviewed the three differences in the term sheet and the use agreement: 1) remedies for signage conflicts with sponsors of special events; 2) establishing criteria for upgrading the facility; 3) criteria for decisions to rebuild the stadium if damaged or destroyed. It was noted that if there are any interruptions in the ability to use the facility, the term of the agreement will be extended to assure a full 20 year term. Bob Reid, of Bryant, Miller, and Olive, said the Phillies have agreed to a minimum 5-year extension in the event of an interruption of facility use. In response to a question, he said should the Phillies decide not to extend the use agreement, the City would not be obligated to rebuild the stadium. In response to a question, Mr. Ashby said staff has consulted with the Risk Management Department regarding insurance to reimburse the City due to an interruption of use. He does not anticipate any problems regarding the “name” of the stadium as the contract provides that its name will fit the image of the City and be construed as “wholesome”. The City will have the authority to approve the name. The contract provides for a third party construction consultant engineer that would review both parties’ recommendations in the event of construction/repair issues. Should the Phillies’ site preparation/construction be found in violation of FDEP (Florida Department of Environmental Protection) guidelines, the Phillies are obligated to ensure compliance. In response to a question, Mr. Ashby said if the Phillies decided not to proceed with construction of the project, the City would still receive the State funding as granted over a 30-year period. City Attorney Pam Akin said the City has an umbrella insurance plan that could provide additional coverage for structures in addition to self-insurance. In response to a question, she said a separate additional lease for Carpenter Field would be presented to the Commission for review. Mr. Ashby said staff would address the possibility of an addendum to the agreement regarding a baseball strike or other monumental work stoppage and its consequences. Mr. Reid said rents would not be affected by a work stoppage as the minor leagues would continue to use the facility, and as rents are paid annually to the City. He explained the “force majure” section of the agreement. In response to a question, John Timberlake, Director of Florida Operations for the Phillies, said the contract provides that the Phillies would own their own concessions. However, he said the Phillies would not preclude some events such as Little League, high school teams, etc. to provide concession services under specific predetermined guidelines. He said the Phillies intend to be good neighbors and would continue to pay parking fees to various groups during spring training. Concern was expressed that it is difficult to change or place a cap on yearly expenditures for the facility once the contract is negotiated. Commissioner Johnson moved to approve the Use Agreement between the City and the Philadelphia Phillies. The motion was duly seconded and carried unanimously. The meeting recessed from 9:58 to 10:09 a.m. ITEM #3 - Authorize City Attorney to execute contract with Siemon, Larsen & Marsh to provide professional services relating to 3 proposals for redevelopment of Clearwater Beach and to provide further refinements to "Beach by Design", for $100,000 On August 8, 1998, the City authorized the execution of a contract with SLM (Siemon, Larsen & Marsh) for professional services relating to the redevelopment and revitalization of Clearwater beach and downtown Clearwater in the amount of $445,900 over two fiscal years. As of this date, the Scope of Services outlined in this contract has been completed and the contractual amount for those services has been expended. Included in these services was the preparation of a document entitled “Beach by Design”, which was presented to Commissioners by SLM on October 17, 2000. Public hearings also were held by the City to allow city residents to review the proposals contained therein. Subsequent to that presentation, three different beach redevelopment proposals were presented to City staff for review and analysis. SLM’s participation and input during these presentations has been useful and valuable to staff. Staff recommends that SLM be retained to provide further professional services relating to the three beach redevelopment proposals, as well as to provide further refinements to “Beach by Design”. The downtown plan project was funded in the amount of $700,000 and only $185,525 has been spent to date. The balance of these funds are being returned to the General Fund retained earnings at first quarter, and of this balance, $100,000 is requested for appropriation to fund this new contract with SLM. Assistant City Manager Bob Keller said he would personally monitor expenditures related to this contract with SLM. Ms. Akin said Mr. Siemon’s fees of $200 per hour are in line, if not lower, than most attorneys’ fees. Open contracts with SLM are being closed as related projects are completed. Mr. Keller said total expenses paid to SLM over a three-year period are approximately $821,000. In response to a question, Mr. Keller said he felt that a fresh set of eyes would be at a disadvantage in this process due to Mr. Siemon’s vast experience and ongoing knowledge of the City and its redevelopment efforts, his interaction with various entities regarding development proposals, and the down-time and enormous effort required for a new consultant. Commissioner Clark moved to authorize the City attorney to execute a contract with Siemon, Larsen & Marsh to provide professional services relating to three proposals for the redevelopment of Clearwater beach and to provide further refinements to “Beach by Design” in the amount of $100,000. The motion was duly seconded and carried unanimously. ITEM #4 - Adjourn The meeting adjourned at 10:35 a.m. ______________________________________ Mayor/Commissioner ATTEST:_____________________________ City Clerk