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HomeMy WebLinkAbout1989-07-06 - City Commission Special Meeting Minutesto,,q 7525 N.W. 88th AVENUE TAMARAC, FLORIDA 33321.2401 July 3, 1989 RECORD OF COUNCIL ACTIONS/DISCUSSIONS SPECIAL MEETING OF CITY COUNCIL OF TAMARAC, FLORIDA There will be a Special Meeting of the City Council on Thursday, July 6, 1989 at 9:30 A.M. in the Council Chambers of City Hall, 7525 NW 88 Avenue, Tamarac, Florida. The purpose of this meeting is to consider the following items: 1. MOTION TO APPROVE the proposed Millage Rate for the 1989/90 Budget. FINAL ACTION: APPROVED the proposed Millage Rate at 6.70 for the 1989/90 Budget. 2. MOTION TO APPROVE the Selection Committee's recommenda- tion of Grant Thornton as the City's auditor for Fiscal Years 1988/89, 1989/90 and 1990/91 at a cost not to exceed $98,300.00 and to AUTHORIZE" negotiations for an appropriate contract. FINAL ACTION: APPROVED. 3. MOTION TO APPROVE payment to Elena Logan in the amount of $2,750.00 for reimbursement of her legal expenses with funds to come from the City Attorney's legal services account. FINAL ACTION: APPROVED. 4. MOTION TO ADOPT Temp. Reso. #5503 authorizing the appropriate City officials to execute documents related to the sale of the Public Works property as follows: a. Special Warranty Deed b. Affidavit c. Non -Foreign Affidavit d. Tenant Estoppel Certificate e. Lease Agreement FINAL ACTION: RESOLUTION NO. R-89-205 PASSED. APPROVED. 5. MOTION TO ADOPT Temp. Reso. #5504 authorizing the appropriate City officials the agreement with to execute Scharf & Associates, an amendment to Inc., for design of a deceleration lane/entry design, parking lot revisions and a fire sprinkler system for the Tamarac Multi --Purpose Center in an amount not to exceed $12,100.00. FINAL ACTION: RESOLUTION NO. R-89-206 PASSED. APPROVED. 6. MOTION TO APPROVE attendance of the City Attorney at the 8th Annual Florida Municipal League of Cities Seminar from August 3 - 5, 1989 at the Mariott Marco Island Resort. FINAL ACTION: Agendized by Consent and APPROVED. The City Council may consider and act upon such other business as may come before it. All meetings are open to the public. Carol A. Evans City Clerk CAE/pm 1 1 Pursuant to Section 286.0105, Florida Statute$ If a person decides to appesl any decision made by t69 City Council with respact to any matter considered at such meeting or l,c>ari! g, he vAl need a record of the proreedings and for such n•r W, h , truy need to ensure that a vE batim record inchi:ic :, and upon 1;di;dh thri! {apraal is to I,e F7-Frj CITY OF TAMARAC CITY COUNCIL SPECIAL MEETING THURSDAY, JULY 6, 1989 CALL TO ORDER: Mayor Abramowitz called this meeting to Order on Thursday, July 6, 1989, at 9:30 A.M. in Conference Room #1 (City Clerk's Office). PRESENT: Mayor Norman Abramowitz Vice Mayor Dr. H. Larry Bender Councilman Bruce Hoffman Councilman Henry Rohr Councilman Jack Stelzer ALSO PRESENT: John P. Kelly, City Manager Richard Doody, City Attorney Ken Burroughs, Finance Director Mike Couzzo, Director of Public Works/ Parks and Recreation Peter Mack, Personnel Director Carol .. Evans, City Clerk Dina McDermott, Assistant to the City Manager Pauline Walaszek, Special Services Secretary 1. MOTION TO APPROVE the proposed Millage Rate for the 1989 90 Bu g�� SYNOPSIS OF ACTION: APPROVED a tentative Millage Rate of 6.70 for the Budget of 1989/90. City Manager Kelly said the last opportunity to submit the Millage Rate to the County Appraiser was August 3, 1989. He said he scheduled this meeting to give the City Council the opportunity to provide the direction to the appropriate staff to submit this information because the City Council would be on vacation from July 10, 1989, to August 6, 1989. City Manager Kelly said the Budget was not finalized; however, the preliminary Budget did not include the ambulance service or advancement wages. He said the Budget would required a Millage Rate of approximately 6.6. Mayor Abramowitz said the Millage Rate could not be increased once it went to the County Appraiser's Office; however, it could be decreased and City Manager Kelly agreed. C/M Hoffman asked if the Millage Rate was for the Operating Budget only and City Manager Kelly replied, yes. C/M Stelzer asked if the Budget included the Broward Sheriff's Office and City Manager Kelly said another Mill would have to be added if the City retained its own Police Department. Page 1 7/6/89 C/M Hoffman asked if the Budget included the Ambulance Service and City Manager Kelly replied, yes. City Manager Kelly said the Budget did not include any salary increases. C/M Hoffman asked how the City would pay for the Ambulance Service Contract if it was not included in the Budget and City Manager Kelly said this was why he informed the City Council that the .Budget did not include the Contract. City Manager Kelly said if the City Council wanted to include the Ambulance Service Contract accommodations had to be made in an amount of approximately $1301000.00. Ken Burroughs, Finance Director, said the Budget did not include any negotiations that were on -going. Mayor Abramowitz said he did not want the City to go through what it did last year. He said the City Manager indicated that he cut the Budget as much as possible; however, he did not want to place the City in another uncomfortable position. City Manager Kelly said he has not completed his final cuts in the Budget. He said last year, the Budget proposal provided for an increase of approximately 10% in the General Fund. He said the City proposed a Utility Tax of 6% last year which was approximately a 50% increase in the taxes that was translated into the General Fund. He said when the Utility Tax was not implemented, there was no option to raise the taxes to meet that percentage; therefore, $500,000.00 was taken from the Utilities Fund, $671,000.00 was used from the Drainage Fund and $613,000.00 was used from the Unappropriated Fund Balance. He said these Funds were non --recurring revenue sources which had to be replaced. Mayor Abramowitz asked if the City Manager was comfortable with sending the Budget to the County Appraiser's Office and City Manager Kelly said he would maka more cuts to accommodate the Ambulance Service Contract. City Manager Kelly said he was not comfortable that there were no raises in the Budget provided for staff because they certainly worked hard enough to receive them; however, raises for the staff could not be done this year. C/M Rohr suggested that the Millage Rate be raised and submitted higher to avoid the possibility of needing to raise it in the future. Mr. Burroughs said the value of a mil`j_'was 1.2 million dollars and C/M Rohr suggested that the existing Millage Rate be increased by one half of a Mill. He said the Millage Rate could be reduced at a later time if the entire amount was not needed. He said this would be better than not having enough filed with the County Appraiser's Office. City Manager Kelly said the proposed Budget was assuming that the City would Contract with the Broward Sheriff's Office. He said if the Broward Sheriff's Office merger was not approved, the proposed Millage Rate would have to be raised by one NLil. Page 2 7/6/89 C/M Hoffman said the proposed Budget was a large increase over last year's Millage Rate. He asked the City Manager to give an explanation of why it was necessary to project approximately 3 Mills more this year. City Manager Kelly said last year in order to offset the difference provided by the utility Tax because it was not approved, other funds were sought to replace it. He said in order to make up the difference, the Drainage Fund was depleted in the amount of $671,000, $500,000.00 was borrowed from the Utility Fund, $613,000.00 was taken from the Unappropriated Fund Balance and, $250,000.00 was taken from the Interim Service Fees. He said the revenues were decreased in the Building, Community Development and Engineering Departments, which amounted to approximately $250,000.00. He said this totaled 2.3 million dollars. C/M Stelzer asked what the Ad Valorem Tax was last year and City Manager Kelly replied, 3.36. City Manager Kelly said there were FICA increases of 8% and a significant increase in Pension Contributions this year. He said Peter Mack, Personnel Director, received a written submittal on the Long Term Disability Policy which reflected an increase of $.62 on each $100.00 of salary. He said there were several costs that were increasing which could not be controlled by the City. He said he could control expenditures; however, he could not control the revenue. He said the Department Heads were asked to submit a Budget less than last year which was very difficult for some of them; however, with the merger of the Broward Sheriff's Office, some of the vehicles would provide assistance in the capital equipment needs but not all of the needs. Mayor Abramowitz said he has seen things within the last 14 months about the City that he did not know before becoming Mayor. He said last year the City Manager suggested that the Millage Rate be sent to the County Appraiser's Office much higher than expected; however, he informed the City Manager that he did not want to continue the politics that the City had for the last 15 years. Mayor Abramowitz said the Millage Rate and Tax Structure in the City was lower than most Cities in the County; however, there came a time when things had to change. He asked what the City Manager felt that the Millage Rate was practical and would allow the appropriate services needed in the City. Mayor Abramowitz said there were several employees who have came to him regarding not receiving a salary increase. He said he felt very bad about this; however, everyone had to bite the bullet at some point in their life. He asked if City Manager Kelly was comfortable with the Millage Rate. City Manager Kelly said the Millage Rate of 6.6 covered the City except for the Ambulance Service Contract which was being negotiated, the funds for the lobbyist and the Page 3 7/6/89 Police Department. He said if the City retained their own Police Department it would cost an additional 1.3 Mils. C/M Rohr asked what would happen if the matter with the Police Department did not go in the City's favor. He said the City would have to deal with another shortfall if the Millage Rate had to be increased and could not be. He suggested that the City submit a higher Millage Rate than expected. Mayor Abramowitz said he understood C/M Rohr's suggestion; however, he did not want to play games. C/M Hoffman said the Millage Rate did not have to be submitted to the County Appraiser's Office until August 3, 1989 and C/M Stelzer said he did not want the Millage Rate approved by three Councilmembers only; therefore, the City Council should make their decision at this meeting. C/M Hoffman said by August 3, 1989, there was a good chance that the matter regarding the Police Department would be resolved. He said if the Courts ruled against the City, an adjustment could be made before August 3, 1989, as opposed to deciding this matter now. He said the City Council was aware that if the City had to maintain their own Police Department the Ad Valorem would increase $1.00 per $1,000.00. C/M Rohr said if the Court did not decide in the City's favor, the City would probably go for an Appeal and C/M Stelzer said if there was a Court Injunction filed against the City, the City could not Appeal the matter. City Attorney Doody said it was impossible to guess what a Court would do; however, the opposing parties tried to get injunctions against the City which were not successful because the Courts were not overly receptive to their arguments. He said he doubted that within the month, the Litigation would be much further than it was now. City Attorney Doody said if the Courts did not rule in favor of the City, he would be recommending that the City Appeal the Case to the Fourth District Court of Appeal. He said he did not feel that a decision would be made in the near future unless the other side decided that they wanted to drop the Lawsuit. He said he did not feel that the City would know any more in August, 1989, than they did now. C/M Rohr said he did not see any harm in submitting a high Millage Rate to the County Appraiser's Office when it could be lowered in the future. V/M Bender said the City Attorney just stated that the City would not know any more about the Case on August 3, 1989, than it did now. Mayor Abramowitz said there may be things that needed the City Council's approval during the vacation period and, if there were three Councilmembers present, then they would have to make a decision. He said the City Council would make a decision at this meeting; however, emergencies did occur. Ll 1 1 Page 4 i/6/89 C/M Stelzer said he was referring to the Budget. He said C/M Rohr seemed to be the only Councilmember that learned from experience. He said if the Millage Rate of 6.6 was submitted to the County Appraiser's Office and the Courts had not made a decision on the Police Department matter, when the final approval of the Budget was made, the City would still have to worry about the Courts ruling against the City. C/M Stelzer said he did not want to see the people paying a high Ad Valorem Tax in the future which would result in a surplus because the residents would not approve of this. He said the City should submit a tentative Millage Rate that would compensate the City if things did not go in the City's favor. He said the tentative Millage Rate should be as high as possible with the provision that, if the City could get releases from the opposing parties, the City could reduce the Millage Rate. C/M Rohr asked how City Manager Kelly felt about submitting a higher Millage Rate and City Manager Kelly said he approved. C/M Stelzer said he mentioned the Budget figures during his Report at the Public Hearing for the Broward Sheriff's Office merger. He said the newspapers did not print anything; however, he projected this type of situation several months ago. C/M Stelzer said 2.3 million should have been increased last year. He said if the City would have increased the Millage Rate by 2 Mills last year, the shortfall would not have been so terrible. He suggested that a tentative Millage Rate of 8 Mills be submitted to the County Appraisers Office with a provision that, if the pending Litigation would not be pursued, the Millage Rate could be reduced before August 3, 1989. He said the City Council should give the direction to the City Manager at this meeting to avoid another meeting during the City Council's vacation. Mayor Abramowitz said he researched this matter and he found that high Budgets were submitted; however, at the end of the year there was a lot of money saved. He said he was against this procedure but people felt the City made a mistake last year by being very legitimate and honest. He said he felt that it was not a mistake and he did not disagree with the City Council's suggestions; however, he did not feel that this was the proper way to handle it. C/M Stelzer said if the newspaper reported properly, the residents would realize that the City had a threat they had to contend with regarding the Broward Sheriff's Office merger; therefore, the tentative Millage Rate had to be increased by 1.4. Mayor Abramowitz said the City Manager was aware City Council's concerns and he knew that the City had a very hard time with every Budget for the Departments. He said the Budgets were decreased than they could afford; however, he did not want the Departments or employees the feeling that all City had to do was substitute the Millage Rate by increasing it to eliminate the problems. Page 5 of the Manager more to give the 7/6/89 Mayor Abramowitz said he saw the Departments cooperating and residents coming into the City that were afraid to do so in the past. He said he asked the City Manager if it was possible to do a 6 month review of the Budget. C/M Stelzer said the only thing actually increased in the Budget was 1 Mill because the 2.3 Mils in the Budget was last year's mistake. Mayor Abramowitz said this did not matter because last year's mistake was forgotten last year. He said the money was already spent by the people last year. He said the 'Utility Tax would have been very good for the City and the surrounding Cities that had a Utility Tax felt that Tamarac was crazy for not having a Utility Tax. C/M Stelzer said the residents never objected to the Millage Rate increasing; however, when a Utility Tax was proposed, there was always opposition. C/M Hoffman said the Millage Rate in 1979 was 6.01, 5.69 in 1980, 6.48 in 1981 and 3.36 in 1988. He said in 1981 the Millage Rate was nearly double what it was in 1988. Mayor Abramowitz said these were the figures that he objected to because they were created by playing games. He said he was aware of the games at this time; however, he was not aware of the games one year ago. C/M Stelzer said the figures did not mean a thing because in 1980 and 1981 there was a complete reassessment of the City with a Roll -Back. He said the Millage Rate in 1979 had no reflection on the City's recent concerns. C/M Hoffman said he would be very comfortable with a Millage Rate of 6.60. Mayor Abramowitz asked if the City Manager felt that the Millage Rate should be 7.0 or 7.2. He said he felt that a Millage Rate of 6.60 would be sufficient and he could not predict the matter concerning the Broward Sheriff's Office merger. C/M Hoffman asked if the City could find another tax to impose for emergency purposes during the year if the Broward Sheriff's Office matter was not ruled in the City's favor. City Attorney Doody said the City could impose user taxes such as, a Utility Tax. C/M Hoffman asked if a Utility Tax was the only tax that could be used and City Manager Kelly said User Fees could be used. C/M Stelzer said if the User Fees were increased, people would not come or remain in the City. C/M Rohr asked if a Municipality could have a minimum property tax because there were residents that paid very little tax for the services provided by the City. He said the Ad Valorem was set up by Assessment; however, the Assessment did not give the City a true amount of money. C/M Stelzer said a Municipality could not tax anything based on Assessed value as described in the State Statute. Page 6 7/6/89 C/M Hoffman asked if a tax could be placed on automobiles such as for parking and City Attorney Doody replied, no. City Attorney Doody said Municipalities did not have the power to levy taxes. He said the Legislator had this power and a City could not levy taxes without the approval from the Legislator. * * C/M Rohr MOVED to APPROVE an Ad Valorem Millage Rate of 8.01 SECONDED by C/M Stelzer. VOTE: Mayor Abramowitz - Nay V/M Bender - Nay C/M Hoffman - Nay C/M Rohr - Aye C/M Stelzer - Aye ** MOTION was DEFEATED by a 3 to 2 Vote. * C/M Hoffman MOVED to APPROVE the City Manager sending a * tentative Millage Rate of 6.60 to the County Appraiser's * Office, SECONDED by V/M Bender. City Manager Kelly said this was with the understanding that the Millage Rate would not include the Ambulance Service Contract or the Grantsman costs and C/M Hoffman replied, yes. C/M Rohr said he would like the Motion Amended to include that the Millage Rate could be increased after the negotiations were completed for the Ambulance Service Contract. C/M Hoffman AMENDED his MOTION to include C/M Rohr's Amendment, V/M Bender AMENDED his SECOND. C/M Stelzer said the City Manager expected the Ambulance Service Contract to increase the Millage Rate by 1 Mill over what was actually needed. C/M Hoffman AMENDED his MOTION to increase the Millage Rate to 6.70, if needed, V/M Bender AMENDED his SECOND. VOTE: Mayor Abramowitz - Aye V/M Bender - Aye C/M Hoffman - Aye C/M Rohr - Nay C/M Stelzer - Nay MOTION was CARRIED by a 3 to 2 Vote. 2. MOTION TO APPROVE the Selection Committee's recommendation of Grant Thornton as the City's auditor for Fiscal Years 1988/89, 1989/90 and 1990/91 at a cost not to exceed $98,300.00 and to AUTHORIZE negotiations for an appropriate contract. SYNOPSIS OF ACTION: APPROVED. Mayor Abramowitz asked if the City was mandated by law to have an Auditor and City Manager Kelly replied, yes. Page 7 WAWA Mayor Abramowitz asked if $98,300.00 represented three years of service and City Manager Kelly replied, yes. C/M Stelzer asked if the terms of the Contract would be negotiated as opposed to the costs and City Manager Kelly replied, yes. * C/M Rohr MOVED to APPROVE the Engagement of Grant Thornton * as the City's Auditor for Fiscal Years 1988/89, 1989/90, * 1990/91 and to AUTHORIZE negotiations for the appropriate * contract, SECONDED by C/M Hoffman. Mayor Abramowitz asked who was on the Negotiating Committee and City Manager Kelly replied, Ken Burroughs, Finance Director, Bob Hoyt, Deputy Finance Director, and Dina McDermott, Assistant to the City Manager. V/M Bender said the recommendations indicated that Peat Marwick was selected first and Grant Thornton was the second selection. He asked why Grant Thornton was selected and City Manager Kelly said there was a $10,000.00 difference in the cost of the two firms. City Manager Kelly said Peat Marwick was not willing to quote a fixed cost for a three year contract. Mayor Abramowitz said there was a member of the Public who wanted to speak on this Item and he would rule to allow it. Melanie Reynolds, Resident of Sands Point, said she objected to the three people on the Auditor Selection and Negotiating Committee because the Finance Department would ask for different services than the City Council. She said since the City Council was the governing Body of the City, they should have interviewed the Auditing Firms and she asked why this was not done. City Manager Kelly said in the past, Mrs. Reynolds criticized the City Council for participating on Selection Committees whose recommendations would be referred to the City Council for final actions. He said Mrs. Reynolds felt that this procedure was a conflict of interest and, to accommodate Mrs. Reynolds, it was determined that staff would make the recommendations to the City Council without the participation of a representative of the City Council. He said it seemed that regardless of which procedure was exercised, it would be criticized; therefore, he was dismissing Mrs. Reynolds's arguments. C/M Rohr said he was not an Accountant and he knew nothing about Accountant procedures; therefore, it was not appropriate to ask him to determine what Accounting firms should be hired when there were staff members involved in the needed services everyday. C/M Stelzer said he has been an Accountant for several years and he was aware of what the City needed. He said he was at the previous meeting of the Auditor Selection Committee when every Accounting firm was rated by points. He said he was very pleased with the rating procedure and he felt it was done properly. VOTE: ALL VOTED AYE OR 7/6/s9 3. MOTION TO APPROVE payment to Elena Logan in the amount of $2,750.00 for reimbursement of her legal expenses with funds to come from the City Attorney's legal services account. SYNOPSIS OF ACTION: APPROVED. City Manager Kelly said Elena Logan has petitioned the City Council to approve her request for reimbursement of legal fees that she incurred in defense of the defamation suit brought against her by John Montalvo, Jr. He said the suit was brought against Ms. Logan because of a written statement that she was instructed to prepare by the previous Personnel Director, Larry Perretti. City Manager Kelly said the suit was dismissed; however, there were expenses of $2,750.00 incurred for defense. He said Ms. Logan's defense was partly on behalf of the City and it was created from directions given by a City official. City Attorney Doody said he reviewed and supported the request because the actions Ms. Logan took were in direct response to the City's Policy on sexual harassment. He said as a result of Ms. Logan following the City's procedures, she was involved in a defamation lawsuit and, if the City Council did not approve the request, it may cause other employees involved in this type of harassment, not to come forward to the City Council. City Attorney Doody said he was informed that the lawsuit was dismissed and he anticipated that there would not be future legal expenses for this Case. C/M Rohr asked if it was possible for Ms. Logan to ask the Courts to pay the costs and City Attorney Doody said he would have to discuss this matter with Ms. Logan's Attorney. City Attorney Doody said the suit has been dismissed; therefore, the lawsuit would have to be repealed in order to have this done. * C/M Hoffman MOVED to APPROVE this Item, SECONDED by C/M Rohr. Vickie Beech, Resident, said she thought that the City automatically represented an employee when there was a matter that pertained to City personnel. She said the law firm of Ruf and Carsky was handling most of the litigation for this Case and she asked why the City would have to reimburse Ms. Logan when Ruf and Carsky was being paid to handle the matter. City Attorney Doody said the payment would not be submitted to the law firm of Ruf and Carsky. He said this matter pertained to a lawsuit separate and apart from the lawsuit against the City. He said there would be a conflict of interest if Ruf and Carsky represented both Ms. Logan and the City. TAPE 2 C/M Stelzer said there was a precedent set in the past where a City Councilmember sued another City Councilmember and the City paid the legal costs. VOTE: ALL VOTED AYE Page 9 7/5/89 4. MOTION TO ADOPT Temp. Reso. #5503 authorizing the appropriate City officials to execute documents related to the sale of the Public Works property as follows: a. Special Warranty Deed b. Affidavit c. Non -Foreign Affidavit d. Tenant Estoppel Certificate e. Lease Agreement SYNOPSIS OF ACTION: APPROVED. RESOLUTION NO. R-89-205 -- PASSED City Attorney Doody read Temp. Reso. #5503 by title. C/M Hoffman asked that Item e., be heard first because the discussion on this Item may affect the action of the City Council. C/M Hoffman said when negotiations took place for the sale of the Public Works property, the City's financial condition was very different than it is at this time. He said it did not seem that there was a reasonable need for the City to build a new Public Works facility on Land Section 7. He said if the City Council agreed with this, he did not see any reason for the City to rent property for approximately $250,000.00 per year. C/M Hoffman said based on the proposal of the Lease, it would take approximately one year after the signing of the Lease before the City was no longer obligated to the Lease. He said the City was required to give notice of 270 days to the owner when the City was planning to vacate the premises as well as clean the facility 45 days prior to the City's vacation. C/M Hoffman said it would be a long time before the City was in a financial position to build a new facility at Land Section 7. He suggested that the City use the old City Hall property for the Public Works Department and sell the existing Public Works property immediately without leasing it. C/M Hoffman suggested the Lease Agreement be Tabled and not signed until there was more information about what the City would like to do with the Public Works Department. Mayor Abramowitz said C/M Hoffman stated it would cost the City approximately $250,000.00 per year and he asked how C/M Hoffman determined this figure. C/M Hoffman said the rent on the property would be 1% over prime based on $1,900,000.00. He said if the prime rate was 13% an additional 1% multiplied by $1,900,000.00 calculated to be $250,000.00 per year. Mayor Abramowitz said the Lease indicated that the maximum that it could be over prime was 1%. He said C/M Hoffman indicated that the Public Works Department should be moved to the old City Hall and the existing Public Works property should be sold immediately. C/M Hoffman said the City should sell the property and give the title to the buyer immediately. �J Page 10 7/6/89 C/M Stelzer said the City needed money for a new Public Works Facility and, every year the City delayed building the facility, the costs increased approximately 15%. He said the original agreement for the sale of the property was that the buyer of the property would give the City the money needed for the Public Works Facility, which was 1.9 million dollars, and charge the City interest in form of rent. C/M Stelzer said he and Mike Couzzo, Public Works Director, discussed transferring all of the Administration to the old City hall building and finding a bay that could be used for the Fleet Maintenance Department. He said the finances were needed for the transfer and the City Manager indicated that the buyer was not interested in taking the property immediately. Mayor Abramowitz said the City informed the buyer that they would prefer the buyer take the property immediately and the City Manager stated that the buyer could not get the finances immediately. He said there was no reason why the City could not immediately inform the buyer that they intended to exercise their 270 day option. He said the purchaser could very well inform the City in 60 days that he was financially ready to take the property. Mayor Abramowitz said everyone knew the terms of the Agreement when it began and it was not the best Agreement available. He said the City had the old City Hall for sale for two years and there was nobody interested. He suggested that the City inform the buyer that they intended to begin their 270 day notice. Mayor Abramowitz said there were two Phases of the Agreement and he was concerned with the City beginning the construction of the Public Works Facility and the buyer deciding that he was not interested in Phase two. He said the City Council agreed not to do anything until all of the money was received from the buyer. C/M Hoffman said things that were agreed upon approximately 8 months ago were'not feasible at this time. He said the final sale of the Public Works property was contingent on things that the City may not have control over. C/M Hoffman said if the State or County decided not to permit a gasoline station on the corner, the buyer would no longer be interested in the property. He said the City should not be in the position of a commitment in building an expensive piece of real estate on Land Section 7 and find that the buyer was no longer interested in the old Public Works property because the State or County would not allow a gasoline station on the property. City Manager Kelly said C/M Hoffman was correct in stating that the times and circumstances have changed. He said the increasing regulations on environmental control was a big concern and, if the buyer agreed to give the City the 1.9 million dollars, he could not recommend that the City Council authorize the construction of the Public Works Facility on Land Section 7. He said he was not prepared to make recommendations as to how the City should address these concerns. Page 11 7/6/89 City Manager Kelly said there was a concern in the Public Works Department moving over to the old City Hall building because $700,000.00 was included in the proposed Budget as revenue from the sale of the property. C/M Stelzer asked if the sale was calculated for capital expenses and Ken Burroughs, Finance Director, said the funds were calculated as a capital offset. Mayor Abramowitz said he would not approve beginning construction of the Public Works Facility until the funds were available. C/M Rohr asked Mike Couzzo, Director of Public Works/Parks and Recreation, how he felt about using the old City Hall building for the Public Works Department. Mr. Couzzo said there was enough space to accommodate the Public Works Department; however, there was a concern about what would be done with the Fleet Maintenance Department. He said some renovation of the facility would be required if the Fleet Maintenance Department was to be located there because there was no availability for gasoline. He recommended that a Feasibility Study be done. C/M Rohr said there was no availability of gasoline to the existing Public Works building when the site was first used by the Department and Mr. Couzzo agreed. Mr. Couzzo said placing gas tanks now was a very complicated and expensive procedure. C/M Rohr said the City has been anticipating the sale of the old City Hall building for two years. He said he understood that the funds were placed in the Budget; however, there was nobody showing interest in buying the property. He said it seemed more feasible for the City to use the old City Hall building, which was available, and save 1.9 million dollars. He suggested the City ask for a three month delay on the Lease Agreement. City Attorney Doody said in October, 1988, the City signed a Purchase and Sale Agreement and most of the terms in the Lease Agreement were included in the Purchase and Sale Agreement. He said it was the purchaser's position that they would litigate against the City if the Agreements were not complied with in an attempt to cover the costs that were incurred. C/M Hoffman said the City did not disagree with the buyer needing time to accumulate the finances. He suggested the buyer inform the City how much time was needed to get the finances and the City retain possession of the property until 30 or 60 days prior to the time the buyer wanted to take the property. He said the City could move off the property without a lease after the buyer obtained the necessary funds. Mayor Abramowitz asked where the Public Works Department would go and C/M Hoffman said the Public Works Department would move into the old City Hall building. C/M Hoffman said during the time the buyer needed to obtain the funds the City could have a Feasibility Study done on what was needed for the Public Works Department to use the old City Hall building. Page 12 7/6/89 Mayor Abramowitz said the discussions by the City Council at this time were for concern of using the City's most valuable property to build a City complex. He said the property on Commercial Boulevard was very valuable and his concern was not building a Public Works Facility on Land Section 7. He said there were things that changed; however► a signature on a Contract did not change. He said the City was recently dealing with problems of decisions and contracts 6 years ago. He said he would like the buyer to give the City the money for the property and take the property immediately. City Attorney Doody said he understood that the buyer was not willing to delay the Lease Agreement so that the funds could be accumulated to immediately take possession Of the Public Works property. Bernie Freedman, Attorney for Jeff Berkowitz, Purchaser of the Public Works property, said his client spent several months working with the City on the Agreement. He said the Agreement was predicated on a set of circumstances that Mr. Berkowitz factored in as his reasons in purchasing the property. He said Mr. Berkowitz purchased the property for the exact price that the City was asking without negotiations. He said there were other circumstances that may have made the Agreement more appealing to Mr. Berkowitz without negotiating the price. He said if the circumstances changed, Mr. Berkowitz may have to reevaluate the entire Agreement to see if the Agreement would be beneficial for him. Attorney Freedman said the City may have to be in the position of litigation that may reduce the price of the property. He said he was not saying that litigation would take place; however, it was possible. V/M Bender said the original provisions indicated that 270 days notice could be waived by the landowner, which was Mr. Berkowitz. He said he felt very uncomfortable with the element of time. He suggested that Mr. Berkowitz consider reducing the notice time so that the City did not have to wait for one year to vacate the property. C/M Rohr asked how much time there was before closing and Attorney Freedman said Mr. Berkowitz was prepared to close on July 12, 1989. C/M Rohr asked if the City was committed to a minimum of 270 days of renting and Attorney Freedman replied, yes; however, there were environmental issues that would need to be reviewed once the City vacated the property. Mayor Abramowitz asked what would happen if Mr. Berkowitz came to the City immediately and agreed to closing without leasing. He asked Mr. Couzzo how much it would take to move the Public Works Department to the old City Hall building. Mr. Couzzo said if the City Council wanted the Public Works Department to relocate to the old City Hall a preliminary Feasibility Study should be done immediately because there were conditions of the building that needed to be corrected. Page 13 7/6/s9 Mayor Abramowitz said there was no way that the Public Works Department would be able to relocate into a new facility within 9 months. Gary Kuhl, Architect from Scharf & Associates, Inc., said if the money was available for the Public Works Department to relocate to the old City Ha i. i `:, , '. " ng, it would take 5 months for the transition, to occur. He said there were several things, such as gasoline tanks, permits, paving for trucks, building renovations, etc. He said there would be several environmental issues involved as well. Mayor Abramowitz said he was very concerned about the time frame involved. He said he would like Mr. Berkowitz to immediately take the property; however, the City had no idea what they would do with the Public Works Department. C/M Hoffman said he recognized that the City would need approximately 6 months before they could vacate the existing Public Works property; therefore, he withdrew his objections expressed at the beginning of the discussions. He said the City did not need a new facility on Land Section 7 and he suggested that a preliminary Feasibility Study be done regarding the use of the old City Hall building being used for the Public Works Department. Mayor Abramowitz asked Attorney Freedman to relate to Mr. Berkowitz that the City Council would like him to consider reducing the leasing time. C/M Stelzer said the City was supposed to sell the property contingent to a gasoline station being placed on it. He said the City wanted to sell the property and immediately use the money received for the property for a new Public Works Facility; meanwhile, the City would be renting the property from Mr. Berkowitz as an interest. He said he could not understand what the City Council really wanted. C/M Stelzer asked if the City Council wanted to continue with the building of the new Public Works Facility or place the Public Works Department in the old City Hall building. He said if the Public Works Department was moved to the old City Hall building there would be a cost. He said the money received for the existing Public Works property could not be used for operating expenses. He said Mr. Couzzo was correct in asking for a Feasibility Study for the relocation of the Public Works Department to the old City Hall building. C/M Hoffman said he did not believe that it would be feasible for the City to begin building a new Facility at Land Section 7 until the City sold the existing property. He said if the State and County decided that a gasoline station could not be placed on property, Mr. Berkowitz would be able to cancel the Purchase Agreement. He said until Mr. Berkowitz took complete possession of the property and received his permits the City would not actually have a valid sale of the property. Mayor Abramowitz said the County and Regulatory Agencies have indicated that there should be no problems with Mr. Berkowitz obtaining permits for a gasoline station for the property providing the City approved the sale of the property. Page 14 7/6/89 1 Cl Mayor Abramowitz asked the City Attorney to address the documents on the Agenda. City Attorney Doody said Item a., was a standard Warranty Deed for the Lots that constituted the Public Works property, Phase 1. He suggested that this Item be approved because the Closing was to occur on July 12, 1989. City Attorney Doody said Item b., was an Affidavit indicating that there, were at the present time, no anticipated Liens on the property. City Attorney Doody said Item c., was a Non -Foreign Affidavit indicating that the City of Tamarac was not a foreign entity. City Attorney Doody said Item d., a Tenant Estoppel Certificate, was a form that indicated that the City would stand by the Lease Agreement. City Attorney Doody said Item e., was a Lease Agreement and the information in the Agreement was self-explanatory. C/M Stelzer asked if there were any changes in the Lease Agreement and City Attorney Doody replied, no. * C/M Hoffman MOVED to APPROVE Temp. Reso. #5503, SECONDED by * C/M Rohr. VOTE: ALL VOTED AYE 5. MOTION TO ADOPT Temp. Reso. #5504 authorizing the appropriate City—o `ficial.s to execute an amendment to the agreement with Scharf & Associates, Inc., for design of a deceleration lane/entry design, parking lot revisions and a fire sprinkler system for the Tamarac Multi -Purpose Center in an amount not to exceed $12,100.00. SYNOPSIS OF ACTION: APPROVED. RESOLUTION NO. R-89-206 - PASSED City Attorney Doody read Temp. Reso. #5504 by title. Mayor Abramowitz asked the City Council to direct the Finance Director to pay all costs out of the Grant funds as opposed to using the City's funds. C/M Hoffman asked where the Multi -Purpose Center would be located and Mike Couzzo, Director of Public Works/Parks and Recreation, said the property was presently unplatted and the County required the entire parcel to be platted. He said the City requested the County grant a Building Permit to the City until the final plat was approved. C/M Hoffman had concerns with the costs for the designs and Mr. Couzzo said the Architect was present to explain the costs and procedures. Gary Kuhl, Architect from Scharf & Associates, Inc., said the deceleration lane had to be approved by the County and State. He said he would be making a proposal based Page 15 7/6/89 on staff's recommendations for the County. He said there were several things on the specifications that would have TAPE 3 to be revised to comply with these recommendations. C/M Hoffman asked if the costs would include Platting interviews, etc., and Mr. Kuhl said there was _i, additional service for the platting and it did not anticipate that the deceleration lane would have to be installed. Mr. Couzzo said the Architect and City thought that the property was platted; however, after additional research, they found that it was not, which required additional procedures. V/M Sender asked if the platting would have to be done on the property that was previously owned by the School Board and Mr. Couzzo replied, yes; however, the City now owned the property. Mr. Kuhl said the original plan was to build the Multi --Purpose Center on School property under a Ground Lease. He said this procedure became so complicated the idea was changed to swapping land which simplifieO the legalities of the situation. He said when this was initiated it was believed that the Park property was platted; however, it was found that the entire parcel was not platted. Mr. Kuhl said the County was now demanding that the deceleration lane be implemented. He said there was a lot of traffic in the area and, once the Multi -Purpose Center was built, the traffic would increase. He said he did not feel that the County's request was negative because it would eliminate a dangerous situation. C/M Hoffman said $4,200.00 seemed like a lot of money for design fees to pave approximately 60 feet. Mr. Kuhl said Scharf & Associates, Inc., enjoyed working for the City and, when specific items were required, the company did the work at cost or less. He said $4,200.00 may seem like a lot; however, the designs required an Engineer to do the Engineering, Architectural and Site Plans, which cost money. * C/M Rohr MOVED to APPROVE Temp. Reso. #5504, SECONDED by * V/M Bender. VOTE: ALL VOTED AYE 6. MOTION TO APPROVE attendance of the City Attorney at the Eighth Annual Florida Municipal League of Cities Seminar from August 3-5, 1989, at the Mariott Marco Island Resort. SYNOPSIS OF ACTION: APPROVED. * C/M Stelzer MOVED to APPROVE this Item, SECONDED by C/M Hoffman. VOTE: ALL VOTED AYE Mayor Abramowitz wished everyone a very happy and healthy vacation. 1 1 Page 16 7/6/89 C/M Hoffman said the Feasibility Study regarding the Public Works Department moving into the old City Hall building could be done in-house. He said if an outside firm was needed, it could be approved at a later time. City Manager Kelly asked how long it would take to complete a Feasibility Study and Mr. Couzzo said a preliminary Study would not take very long; however, there were mechanical and architectural considerations ne-de I for the Study. Mayor -Abramowitz said he would not approve changing the old City Hall building into a permanent facility for the Public Works Department. He said the building would be used temporarily for the Public Works Department and he felt that the Public Works Department was one of the most important Departments in the City. Mr. Couzzo said he did not feel that preliminary Feasibility Study would cost very much; however, there may be a need for outside advice for the engineering and architectural items. Mayor Abramowitz said he would like the Study done in-house and Mr. Couzzo said he would see that as much as possible done in-house. City Manager Kelly said there was an outstanding Audit to be performed on the Building Department as required by the Charter when a Department Head resigned or was terminated. He said he would like to engage Grant Thornton for the Audit. He said the City Council recently authorized approval of a Contract with Grant Thornton; however, he would like to call a Special meeting providing there was a quorum of the City Council to engage Grant Thornton for the Audit. C/M Hoffman asked if the Charter required that an outside Auditor be hired for this type of auditing and City Manager Kelly said the Charter required that there be an independent audit. Mayor Abramowitz said he would like City Manager Kelly to review the amount of funds that have been spent for audits and studies this year. He said he wanted to be informed of what was mandated and required. City Manager Kelly said the City Council recently approved a tentative Millage Rate of 6.70 and he asked if the City Council wanted to send the 6.70 to the County Appraiser's Office before he finalized his Budget reviews. Mayor Abramowitz asked if the City Manager was suggesting that the tentative Millage Rate be lowered, if possible, before it was sent to the County Appraiser's Office. The City Council agreed to send the 6.70 tentative Millage Rate to the County Appraiser's office and, if possible, it could be lowered later. Page 17 7/6/89 With no further business, Mayor Abramowitz ADJOURNED this meeting at 11:30 A.M. NO MAN ABRAMOWITZ, MAYOR CARCOL A. E A , CTTY CLERK "This public document was promulgated at a cost. of $134.40 or $16.EG per COPY to inform the general public, public officers and employees of recent opinions and considerations of the City Council of the City of Tamarac. l.,iTY OF TA ARAC ARF'R0 EO PJ MEETING OF A Cty NA, 1 P� Page 18 O