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10-12-99 Special/Workshop CITY OF DELRAY BEACH, FLORIDA - CITY COMMISSION SPECIAL MEETING & WORKSHOP - OCTOBER 12, 1999 - 6: 00 PM FIRST FLOOR CONFERENCE ROOM The City will furnish auxiliary aids and services to afford an individual with a disability an opportunity to participate in and enjoy the benefits of a service, program or activity conducted by the City. Contact Doug Randolph at 243-7127 (voice) or 243-7199 (TDD), 24 hours prior to the event in order for the City to accom- modate your request. Adaptive listening devices are available for meetings in the Commission Chambers. SPECIAL MEETING AGENDA (1) GOLF COURSE PERFORMANCE MEASURES. WORKSHOP AGENDA (1) Discussion concerning.the Tennis Center events and visions. (2) Discussion concerning the Tennis Center policy changes. (3) Tennis Center performance measures. (4) Presentation by P.E.C. on street, water, sewer and stormwa- ter coordinated capital improvement plan. (5) Lake Ida Road widening cross-section alternatives. (6) Commission comments. Please be advised that if a person decides to appeal any decision made by the City Commission with respect to any matter consid- ered at this meeting, such person will need to ensure that a verbatim record includes the testimony and evidence upon which the appeal is based. The City neither provides nor prepares such record. CITY OF DELRAY BEACH, FLORIDA - CITY COMMISSION SPECIAL MEETING & WORKSHOP - OCTOBER 12, 1999 - 6:00 P.M. FIRST FLOOR CONFERENCE ROOM AgeNDA ADD , VDI4M THE SPECIAL MEETING AGENDA IS AMENDED BY ADDING THE FOLLOWING ITEM: (2) RESOLUTION NO. 64-99: A resolution amending Resolution No. 52-99 and substituting this resolution to establish a Deferred Retirement Option Plan for certain eligible employees and adopting the Declaration of Trust of ICMA Retirement Trust, and providing for a coordinator. Additional information is also provided for the workshop items pertaining to the Tennis Center, as follows: · Letter from Mr. Dubin to Russ Cline & Associates expressing interest m hosting the Second Round of the Davis Cup in April 2000; · Draft copy of an agreement between the City and Ticketmaster for the sale of tickets for attractions at City facilities (i.e. Tennis Center); · Comparative breakdown and summary of resident and non-resident memberships at the Tennis Center. · Profit/loss survey of tennis operations for surrounding mumcipalities. S/City Clerk/Addendum. October 12, 1999 Special Meeting [ITY OF I]ELARY BER[H DELRAY BEACH ~lI-An~l~{~lC~[1~ 100 N.W. 1st AVENUE . DELRAY BEACH, FLORIDA 33444 . 561/243-7000 1993 TO: David T. Harden City Manager FROM: ~Robert A. Barcinski Assistant City Manager DATE: October 8, 1999 SUBJECT: AGENDA CITY COMMISSION WORKSHOP OCTOBER 12, 1999 APPROVAL PERFORMANCE MEASURES - GOLF COURSE Action City Commission is requested to consider approval of performance measures for fiscal year 1999-00 for the Municipal and Lakeview Golf Courses. Background Attached are proposed performance measures for the Municipal and Lakeview Golf Courses. Per the.terms of the management agreement with BJCE, Inc. the performance measures (i.e. goals and objectives) are to be approved by City Commission by October 15th. The performance measures proposed are based on the goals and objectives approved in the FY 99-00 budget, as well as other agreed upon tasks. The performance measures approved will be the basis upon which a bonus would be paid to BJCE, Inc. for FY 99-00. Recommendation Staff recommends approval of the proposed performance measures for the Municipal and Lakeview Golf Courses for FY 99-00. RAB:tas File:u:sweeney/agenda Doc: golf performance measures MUNICPAL GOLF COURSE PERFORMANCE MEASURES FY 99-00 1. Complete painting the exterior of the clubhouse pro shop by November 1999. 2. Complete installation of 9000 l£new 8' wide cart paths by September 2000. 3. Level and re-grass six (6) tee boxes by August 2000. The tee box numbers to be determined. 4. Increase number of rounds played from 88,000 to 91,000. 5. Increase revenue from banquet business by at least 6% from $525,000 to $556,500. 6. Increase participation in youth programs by at least 5% from 1200 to 1260. 7. Reduce weed population in fairways on hole numbers 13, 14, 15, and 18 to less than 10% of area (USGA standard). 8. Attain less than 5% weed coverage on all greens (USGA standard). 9. Attain a net operating income at least $170,000 (FY 98 $171,743 and FY 99 estimate $165,ooo). 10. Remove at least 20 Melaleuca trees. LAKEVIEW GOLF COURSE PERFORMANCE MEASURES FY 99-00 1. Increase number of rounds played from 55,000 to 60,000. 2. Increase youth participation by 5% from 1,200 to 1,260. 3. Attain a net operating income of a least $90,000 (FY 98 $72,188 and FY 99 estimate $1o0,000). 4. Remove at least five (5) Melaleuca trees. 5. Conduct at least four (4) youth tournaments during the year. 6. Host a Special Olympics Tournament in the fall of 1999. 7. Complete repairs to course restrooms by June 2000 i.e. roof, facia board, re-paint, repair doors. 8. Install screen/barrier behind green #6 by December 1999. 9. Attain weed coverage on greens of less than 5% and in fairways of less than 10% (USGA standard). [lTV (IF I)ELIII:IY BEI:IgH DELRAY BEACH ~Jl-J~ll~l~{~t~ 100 N.W. 1st AVENUE . DELRAY BEACH, FLORIDA 33444 . 561/243-7000 1993 TO: David T. Harden City Manager FROM: [~obert A. Barcinski , v Assistant City Manager DATE: October 8, 1999 SUBJECT: AGENDA CITY COMMISSION WORKSHOP OCTOBER 12, 1999 TENNIS CENTER VISION, DIRECTION, EVENTS At the City Commission meeting held on September 21, 1999, Commission requested a workshop session to provide Mr. Dubin policy direction concerning Tennis Center events and other policy issues regarding the Center. Mr. Dubin will be presenting his vision and business plan for the Center and will be seeking Commission consensus. Proposed policy changes and performance measures will also be discussed as separate workshop items. RAB:tas File:u:sweeney/agenda Doc: tennis center vision ~ ~nt~ o~ R~ ~o~ THE EFFORT ALWAYS MATTERS IA,/' ~,~' Commission voted as follows: Mayor Alperin - Yes; Mr. Schmidt - Yes; Mrs. Archer - Yes; Mr. Wright - Yes; Mr. Randolph - Yes. Said motion passed with a 5 to 0 vote. 9.B. TENNIS CENTER MANAHEMENT AHREEMENT/BJCE, INC. (d/b/a DUBIN & ASSOCIATES): Consider approval of an agreement between the City and BJCE, Inc. (d/b/a Dubin & Associates) for manage- ment services at the Delray Beach Tennis Center for the period October 1, 1999 through September 30, 2004. Mr. Wright stated that in his discussions with Mr. Dubin concerning the tennis center agreement, one of Mr. Dubin's comments was that he needs more direction as far as events and many other things that have to do with the tennis center. Mr. Wright suggested that the Commission discuss this matter at a workshop meeting as opposed to just having goals and objectives given to the Commission without any real chance for input. It was the consensus of the City Commission to sched- ule this item for the October 12, 1999 work session. Mr. Wright moved to approve the Tennis Center Manage- ment Agreement with the one change of the date from October 1 to October 15 on page 4, paragraph 9.(Performance Bonus). The motion was seconded by Mr. Schmidt. Upon roll call the Commis- sion voted as follows: Mr. Schmidt - Yes; Mrs. Archer - Yes; Mr. Wright - Yes; Mr. Randolph - Yes; Mayor Alperin - Yes. Said motion passed with a 5 to 0 vote. At this point, the time being 6:20 p.m., Mayor Alperin noted the arrival of Senator Klein at the meeting. The Commis- sion returned to Item 7.B. 7.B. Senator Ron Klein - Ceremonial Check in the amount of $100,000.00 from the Department of Environmental Protection for the Pompey Park Ballfields. Senator Klein came forward along with Representative William F. Andrews. They presented to the City Commission a ceremonial check in the amount of $100,000.00 signifying the matching contribution by the State to the local contribution for the upgrading of the ballfields and lighting at Pompey Park. As general information, Senator Klein stated the Legislature is currently in'committees which occur one week per month through the end of the year and into January and February prior to the beginning of the legisla- tive session in March. He pointed out that this is the time to hear from constituents and local governments about the issues so they can be incorporated into the process. Bills are being filed and the committees are hearing them, so now is the time to hear from the community if there are issues of concern. 7 09/21/99 10/07/1998 23:25 58124B7386 DELRAY BEACH GOLF CL PAGE 08 DELRAY BEACH TENNIS CENTER SCHEDULE OF EVENTS 1999 DATES EVENT JANUARY SUPER SERIES BG 10, 12, 14 SENIOR GAMES FEBRUARY ADULT CHAMPS MW OPEN, M45 SENIOR CHAMPS M50, 60, 70, 80 ATP PRE-QUALIFIER MAY i ATP TOURNEY ~ SR SECTIONAL (2ND SITE) : DESIGNATED BG 18 JUNE SUMMER CHAMPS BG 10, 12, 14 JULY " BG 14 ZONALS ' ROOTS ,AUGUST : ELKS SATELLITE BG I0, 12, 14 Q_~TOBER STATE CLOSED MW OPEN NO:VE~,...'~ER SUPER SERIES BG 16, 18 D_~CEMBER CHRIS EVERT PRO CELEBRITY 10/07/1999 23:25 5612437386 DELRAY BEACH GOLF CL PAGE 07 DELRAY BEACH TENNIS CENTER TOURNAMENT SCHEDULE 2000 DATE~'; TOURNAMENT jan 8- Gulfstream Super Series Jan 10 Boys and Girls 10-12-14 Jarl 30- City of Delray Beach Senior Games Fe~ 4 Men & Women Singles Doubles 50+ Fe~ 10- Super Seniors Championship Fel~ 14 Men's 55-65-75-80-85 Feb 26- CITRIX QUALIFIER Hard court Feb 27 Men's Open Feb 28-. CITRIX CHAMPIONSHIP Hard court March 5 Men Invitational May 27-. Gulfstream Designated May 29 Boys 18 Jmle 27-. Delray Summer Championships Jmse 29 ' Boys and Girls 10-12-14 Jul) 22- Roots Festival Tennis Tournaments July 23 Men and Women 35-45-55 -- Open - NTRP Aug 26- 28th Annual Elks Satellite Aug 28 Boys and Girls 10-12-14 OctOber 13- State Closed October 16 Men's Open Novem~:,er 18 Delray Holiday Super Series NoVemk,er 20 Boys and Girls 16-18 De~ember 9- CHRIS EVERT PRO CELEBRITY Hard court Deq~nber 10 MINOR ADJUSTMENTS MAY BE MADE TO SCHEDULE THROUGHOUT THE YEAR [ITY OF I]ELARY BER[H DELRAY BEACH ~I-~I~I~C~IJ 100 N.W. 1st AVENUE . DELRAY BEACH, FLORIDA 33444 - 561/243-7000 993 TO: David T. Harden, City Manager FROM: ~0Robert A. Barcinski, Assistant City Manager DATE: October 8, 1999 SUBJECT: Agenda Item City Commission Workshop, October 12, 1999 Proposed Policy Changes - Tennis Center Attached is a letter received from BJCE, Inc. proposing policy changes for the Tennis Center operations. A summary of the changes are as follows: 1. Increase number of courts that can be reserved for lessons from 2 to 4 2. Change the court reservation system from a call-in system to a lottery system 3. Reduce the number of clay court tournaments These proposals are made to provide a more equitable system for court reservations and to provide more of a balance in court use. Mr. Dubin reviewed these proposed changes approximately one (1) month ago with tennis center patrons. We have received some objections to these proposals, but have also received a petition supporting the change to a lottery system. City Commission is requested to provide Mr. Dubin direction on the proposed changes. Final approval of any authorized changes would be presented at the October 19th Commission meeting. RAB: kwg Attachments File:u:graham/misc Doc.:RAB's Agenda Memo re Tennis Cntr Policy Changes Printed ,on Re, cycled Pm~r 10/0~/1999 23:25 5612437386 DELRAY BEACH GOLF CL PAGE 01 MEMORANDUM OATE: October 8, 1999 -[O: Bob Barcinski I:ROM: '. Brahm Dubin I~.E: ' Delray Beach Tennis Center Policy Changes I. COURT ALLOCATION 1998-1999 We allocated no more than 2 courts during the morning (P~ime Tide) for lesson programs. The balance of courts were ~iLvailable for daily play. 1999~2000 In order to improve the "Balance" between lesson prDgr~;~ms And daily play, we are proposing to limit the nu~be:~~ of courts available for lesson programs to no more than ,] courts during prime time. :[.n alil cases, we will always attempt to use our hard co~rt:~ first. We will be sensitive to the days when there ar~ Team Matches that force us to block courts for daily ~ :~I. COURT RESERVATION SXSTEM Z1998-'1999, Court Reservations are taken at lpm the day before for meA~be]!:s anld at 3pm the day before for non members at the Pro Sh~p Cr by~ calling in. 1999-2000 In order to provide a more equitable system that migimi'zes abuse of the system, we are proposing a "Lottery" system. u: \bd\ tennis \memo~ \bbpolchg. doc Z0/0Z/1999 23'25 5~1243738B DELRA¥ BEACH GOLF CL PAGE 02 Phone System - Disadvantage~ On a daily basis, players must be available at lpm and must redial for at least 10-15 minutes. ,," By approximately 1:10-1:15 all prime time courts are gone - an advantage to those who are there in person. No!control over ~double booking" leads to open courts during prime time. Staff are unable to verify court reservations until after the fact - inefficiency. ,, Players don't know time of play until lpm, day before play. - Results in 1/2 hour gaps between lesson courts and daily play- Lotte~r¥ System - Members_Only ,, Tw(~ to seven days in advance booking. ,, Drawing insures the same opportunity for everyone. Every slip is verified in advance before drawing thereby improving management efficiently and eliminates "Double bookings". ,, Players cannot be denied prime time two days in a row. Four names will be given priority in prime time. Players will know time 2 days in advance. Non members will reserve 1 day before at 3pm- Status Inladdition, we will open up all 1/2 hour time slots, improving court usage. 10/~7/1999 23:25 5612437386 DELRAY BEACH GOLF CL PAGE 03 III. 1999 2000 VARIANCE CLAY COURT USTA Amateur 12 9 (3) Special Event 3 -0- (3) 15 9 (6) Hard Court -0- 3 3 Total 15 12 (3) :In addition, we will always attempt to start any tolrney as: late in the morning as possible to make available colrt~] for! open play. 10/07/1B99 23:25 5612437386 DELRA¥ BEACH GOLF CL PAGE 04 ]LOTTERY RESERVATION SYSTEM i[. Reservation cards for each day will be available atl the reservation counter. Each day is represented by a different color. 2. Members will simply fill out the reservation cards fcr the days they want to play and drop it in the corresponding slot. - Fill in the DATE you are requesting to play (all cards without date will be disregarded). '- All first AND last names of players must be listed on the sheet. CALL IN any changes of players within 48 hours(failure to do so will prohibit you from using the reservation system). - List 3 different time priorities. - You may book a court up to ONE WEEK IN ADVANCE. '- Only ONE CARD PER GROUP will be accepted (if duplicate names are found, all requests in question will be considered last). - ONLY MEMBERS are entitled to use the reservation system. - The COURT CAPTAIN is the member making the reservation. :- The COURT CAPTAIN is the only person to call for court time(if none has been assigned, the first name on the card is assumed the captain) - that being the only name on the court sheet. 3. iCards will be checked for DATE, DUPLICATION, shuff]_ed aind drawn at 12pm daily, 48 hours in advance of play.~ i~ ~- ~Following the daily draw, times will be posted at th~ reservation desk after 4pm. Only COURT CAPTAINS may ca~l afterl 4pm for COURT TIMES. 4 23:25 5612437386 DELRAV BEACH GOLF CL PAGE 05 5. Telephone reservations by members will be taken no so'oner than 24 hours in advance, one day after the draw. Ca'll Monday for Tuesday court times. (i.e. 9am for 9am, 10am for 10am) ~ 6. ALL PLAYERS MUST CHECK IN before play to receive colurt ass]_gnment. Each individual will SIGN their asisignment card and show their membership card The last toI do it Will take the card and post it on the door of their co, rt. COurt assignments WILL NOT be given out over the telep~lone ~or before check-in. · ~- ~If your COURT ASSIGNMENT CARD is not po~ted, is in'com~:~lete, or does not match the reservation, we will interrupt your game. ~ :!'{. Those who cancel their court after the draw has behn completed will be penalized (disqualified for the draw for the week). Only those who do not receive any of their times 'wili have the option to cancel. ::]. Courts may be scheduled in advance by staff for lessons, ~eam matches, tournaments, clinics and special I0. iPlayers who arrive more than 10 minutes late will automatically forfeit their court time. If, for some reason you can not keep your court time, please call us in advance. Not adhering to this policy may result in denying you the privilege Iof =eserving a court! I ~[~1. IIf you would like to play more than your assigned ti~e, you MUST come in to the desk and check court av~a~lab~llty. .~_2. iPlayer conduct in tennis is based on mutual respec~t and common courtesy. It is expected that players exhibit a ~olite demeanor at all times while on the premises. i 13 '.Do not go onto your assigned court until the time schedules iyou. It is disruptive to the players. I~ILU~E TO COMPLX WITH AN~ OF THE ABOVE RULES WILL ;i. UTOM~TICALLX RESULT IN DISQUALIFICATION. 5  Tuesday, Sept. 21, 1999 V~ 929 Fern Drive ~ Delray Beach, Fl. 33483 Mayor Jay Alprin (561) 243-8549 City of Delray Seact3[p 2 8 1999 100 N.W. lSt. Avenue^~.~:~l~i ~_.~(~.. ~.~.._ Delray Beach, FI 3e Dear Mayor Alprin: We, the undersigned, are writing to express our support for changing the system of court reservations at the Delray Tennis Center to a Lottery Based system. Presently, members must call in no sooner thafi 1:00pm to reserve a court for the following day. This system does not work very efficiently, and leaves many members unsatisfied. The present system lends itself to abuse by some members, despite the be, st efforts of the Tennis Center to prevent it. Mr. Laurent Leclerc, Director of Tennis for the center, has proposed to change the present system to one based on a lottery. Many members feel this change is worth trying. However, at a recent evening meeting, some members were very vocal in expressing their wish to maintain the status quo. There is, nevertheless, a large group (who was either unable to attend, or not able to express their opinions at the time) in favor of giving a new, more democratic system of court reservations a try. We are writing in the hopes that, should this matter come across your desk, you become aware that change is necessary, and indeed welcomed by many of us. Thank Y~,,:rd4r~va, J~che for your kind attention to this matter- [lTV OF I]ELAIIY BEI:IgH Pc3?. ~,eaS~ j~l.,i~l~l~CJt~ 100 N.W. 1st AVENUE · DELRAY BEACH, FLORIDA 33444 - 561/243-7000 1993 TO: David T. Harden City Manager FROM: ~5~ Robert A. Barcinski Assistant City Manager DATE: October 8, 1999 SUBJECT: AGENDA CITY COMMISSION WORKSHOP OCTOBER 12, 1999 PROPOSED PERFORMANCE MEASURES - TENNIS CENTER Attached are proposed performance measures for FY 99-00 for the Tennis Center. Staff and Mr. Dubin are seeking Commission direction on these measures prior to final approval. The measures proposed are based on goals and objectives approved in the FY 99-00 budget, as well as other objective discussed with Mr. Dubin. The performance measures approved will form the basis upon which BJCE, Inc. is awarded a performance bonus for FY 99-00. Mr. Dubin has agreed in writing to delay approval until the October 19, 1999 City Commission meeting. This item is presented as a workshop item at this time, pending the outcome of the discussion on visions and events. The performance measures will be revised based on that discussion and presented for final approval at the October 19th Commission meeting. RAB:tas File:u:sweeney/agenda Doc: tennis performance measures TENNIS CENTER PERFORMANCE MEASURES FY 99-00 1. Break even in Tennis Center operating expenses. 2. Sell naming rights for stadium by September 2000. 3. Promote and conduct at least three (3) non-tennis related events in the stadium during the year. 4. Conduct at least three (3) junior camps. 5. Conduct the Citrix Tournament and the Chris Everett Charity Tournaments. 6. Conduct a minimum of five (5) USTA amateur tournaments within the fiscal year. 7. Increase memberships by 7%. 8. Develop and implement operating policy changes as approved by City Commission by January 1, 2000. 9. Conduct customer satisfaction survey by June 30, 2000. RECEIVED MEMORANDUM SEP CITY MANAGER To: David T. Harden, City Manager From: Joseph M. ~~ance Director Date: September 21, 1999 Subject: Comparison of General Obligation Bond Debt to Revenue Bond Debt This memorandum is being issued to discuss the differences between general obligation bonds and general revenue bonds. General Obligation Bonds General obligation bonds are typically issued to finance long-term improvements that benefit the community as a whole. General obligation bonds sold by a municipality are secured by a pledge of a property tax on the assessed value of property. These bonds require a positive majority vote in a bond referendum in order to issue the bonds. There are two (2) types of general obligation bonds: 1. Limited ad valorem- bonds have legal limits on the maximum millage that can be charged (levied) for debt service 2. Unlimited ad valorem- bonds are secured with the full faith and credit of the municipality with no legal limit on the millage that can be levied The City of Delray Beach has unlimited ad valorem type bonds in that the State of Florida statutes have no maximum millage rate that can be levied for general obligation debt. Advantages of General Obligation Bonds · Citizens vote their approval of these bonds and therefore feel more involved in the process. · City would not have a statutory limit on the millage rate and therefore this debt cost would not apply to our present 10 mil cap on operating millage. · Bond interest rates are generally lower because the City is pledging their full faith and credit. · Bond costs are generally lower since no debt service reserve is required. · Bond issuance costs are generally lower because the overall cost of the bonds is lower and the bonds are easier to sell because of their security pledge. Disadvantages of General Obligation Bonds · Vote of the electorate requires an election which may not occur for an extended period and therefore delay the construction process and delay the ability to enter the bond market quickly to take advantage of favorable market fluctuations. · Vote of the electorate may not represent the majority vote of the people due to turnout percentages. · Vote of the electorate may be negative. Revenue Bonds Revenue bonds are long-term obligations of a municipality secured by a pledge of a specific revenue source other than property taxes. State statutes regulate many of these revenue sources in that many of them have maximum rates that are allowed. Therefore, revenue bonds are considered less secure than general obligation bonds. A municipality must generally "make-up" this loss of operating revenues by increasing rates or operating millage. Advantages of Revenue Bonds · Vote of the electorate is not required and thus bonds can be issued at any time without delaying construction or acquisition and allowing issuer to enter the market during favorable market conditions. · City Commission controls the approval process. Disadvantages of Revenue Bonds · Revenue bonds are subject to more stringent issuance requirements. · Revenue bonds may have restrictive legal bond covenants on the issuer meant to protect the bondholder. · Loss of revenues for operations would cause increase in property tax revenues to replace these revenues and this would impact operating millage (10 mil cap). · Interest rate costs are generally higher because the pledged security for the bond principal and interest payments is not as strong as a full faith and credit pledge. · Issuance costs are generally higher because the overall bond costs are higher and the bonds are more difficult to sell. · Overall costs are generally higher because a debt service reserve is usually required. Cc: Becky O'Connor, Treasurer .~~~~~ August 31, 1999 ~ ~ ~i - - ~ The Honorable Jay Alpedn, Mayor i-. ~-~ i SE]3 I 0 1999 , city of Delray Beach ~! r,z~'--x.~' ~-t"?~;.'.-v~;~" ~ 100 NW First Avenue t Delray Beach, Flodda 33~,~,d C..~--; -~~ REF: PBC PROJECT NO. 99502 q ...to -?~ LAKE IDA ROAD - MILITARY TRAIL TO CONGRESS AVENUE ~ P.O. Box [989 Wes[ Palm Beach. FL 33402-t c)8c) Dear Mr. Alperin: (56n 355-2oo~ F~X: (56~) 355-3~q0 I want to thank you and the City Staff for your cooperation in setting up the Public Information Meeting on the Lake Ida Road Project. The meeting, in my view, was www. co.pa/m-beach.fLus very productive, and some useful comments and requests were obtained from the residents. County staff has asked me to request the City's input for variations to the proposed road cross-section typical section raised at the Public Meeting of August · 10, 1999, for the above referenced project Staff has developed the following options for this road: m~s, sea~ count7 Option One: so=~ of count7 No alterations to the typical section or median locations as presented. Commissionel's · 21' median Maude Ford Lee, Chair · Two 11' travel lanes in each direction · 4' shoulder area on each side Warren H. Newell. Vice Chairman · 10.5' borders - (including, in order, a. 2' curb, 2' grass strip, a 5' sidewalk ~n T. ~arcus and a 1.5' grass strip) carol ^. ~ober~s Option Two:. (Fora portion of the segment) ~ary ~ccarry A 5-lane section with 64' of pavement and no median Bur~ ^aronson This option includes: - A 12' bi-directional centerlefl:tum lane Tony ~asi]o~i -TWO 11' travel lanes in each direction - 4' shoulder area on each side -10' minimum borders. - Medians would be eliminated between Chatelain Boulevard and Davis Road. co,n~ ~mi,isa-~mr This option would facilitate access movements to side streets and driveways ~ober~ Weisman on the south side of Lake Ida Road and would provide more "green space" between the pavement and the right-of-way lines. However, the raised landscaped median buffer would be eliminated in this section. Option Three: Change the typical section to provide: · A section with a 15.5' median (instead of a 21' median) for the entire project. Other features would be the same as Option One with the following exceptions in the border area: grass strip would be reduced from 1.5'- to 1.0' on each side. This option would allow an additional 6.5' for more "green space" between the curb and sidewalk, to be allocated between both sides. A minimum 2' buffer area would still be required foreach side, butthe other 6.5' could be divided in any combination between each side. 'An Equal Opportunity .~ff~,.,,,,,~,,,,~¢~o, ~,,ptoy,.- It should be noted, however, thata minimum of 7' -7.5' on a side would be required for trees. Another option would be to provide the additional green space, in back of the sidewalk. The Honorable Jay AIIpedn August 31, 1999 Page 2 Option, Four. · 15.5' median, as described in Option Three. · No median between Chatelain Boulevard and Davis Road, as described in Option Two. It is my understanding that the matters surroundinq rqadway liqhfin.q and subdivision walls will be resolved by the City through franchise agreements and special assessments, respectively. Further, I understand that the City will implement and coordinate with Palm Beach County (by permit) a landscaping plan for this roadway. Concerning a related outstanding issue, the Roadway Production Division - in conjunction with the Traffic Engineering Division - is in the process of conducting Signal Warrant Studies atthe intersections of Shady Lane and Davis Road with Lake Ida Road, per the City's request. It is very important that the city formally consider the typical section and median issues in an expeditious manner. The design cannot proceed without finalized curb lines. The ultimate landscaping or sidewalk locations, however, can be finalized in the next few months. Copies of the comment cards and sign up sheets from the August 10w Public Meeting are enclosed for your information. These are being forwarded to you at the request of Randai Krejcarek, P.E., City of Delray Beach Engineer. Your prompt attention to this request is greatly appreciated. I would also like to take this time to reiterate my offer of participation on this project. Should you orthe City Staff have any questions or wish to discuss these items in furtherdetail, or desire a presentation on these issues, please contact either me or Steve Carder, P.E., Special Projects Program Manager, Roadway Production Division, in-the Engineering and Public Works Department at (561) 6844078. Sincerely, Board MM.'adg Attachments cc: Commissioner Maude Ford Lee, Chair George Webb, P.E., County Engineer Edwin Jack, P.E., Deputy County Engineer Omelio Fernandez, P.E., Director, Eng. / Public Works Ops. Steve Carder, P.E., Special Projects Program Manager, Roadway Production Division Golf & Tennis Management, Development & Consuitat[°n ............ ---O~r*l 1, 1999 Russ Cline & Associates 2310 W. 75th street Prairie VilLage, Kansas 66208 Attention: Russ Cline Dear Russ: As vot~ k_n,:,w I recently spoke to Mike Mathis about our interest in hosting tt~e Second Romxd of the Davis Cup in April 2000 at the Delray Beach Temfis Center. added two more hard comts for a KreSS, ' ' ,smc(. last year we have converted our center 6.om't to hard court, total of seven, and imp~'oved our t.v. platform and interior signage. In additiox.t, we are nov,, trader contract with Ticketmaster for all on-site events. We believe that Palm Beach Cou,~ty is an excellent venue for this prestigious event with perfect timing; one. woek :ffter the Ericsson Event in Key Biscayne. Presently we host. the Cln;is Evert Pro Celebri .ty in December and now the Citrix Tennis Chmnpio,,ships ir, Februm'3r 2000. We would plan to commence marketing of the Davis Cup Event during Citrix. John McEm'oe will be playing Chrissie's event in December at the Delray Beach Temfis Center. We would love to have you and Mike come to this event to discuss with Jotm the possibility of Palm Beach County hosting file April event. We hope that you: will again give Palm Beach County the opporttmity to showcase itself to the world. I,ooking forward to hearing from you, Brahm Dubin cc: Dr. Jay Alperin, Mayor, City of Delray Beach Ms. Mary McCarty, Palm Beach County Commissiong Ms. Para Gerig, Palm Beach County Sports Commission Mr. Dave Harden, City Manager, City of Delray Beach u:/p/bd/ictters/msclfl~e.doc 2200 Highland Avenue - Delray Beach, FL 33445 - (561) 243-7064 - Fax (561) 243-7386 [lTV OF I)ELRI:IV BEI:I[H CiTY ATTORNEY'S OFFICE~°° ~TM^~' ~"^~"~^~"' ~°"~^ ~ TELEPHONE 561/243-7090 · FACSIMILE 561/'278-4755 DELRAY BEACH Writer's Direct Line: (561) 243-7090 Ali.America City. DATE: October 11, 1999 1993 TO: Alison MacGregor Harty, City Clerk FROM: Jay T. Jambeck, Assistant City Attorneytl SUBJECT: Ticketmaster Agreement. Attached is a draft of the Ticketmaster agreement that may be included with Brahm's materials for the workshop meeting on Tuesday. Please let me know if you should have any questions. Attachment LICENSED USER AGREEMENT THIS LICENSED USER AGREEMENT ("Agreement") is made and entered into as of the __ day of ., 1999, by and between TICKETMASTER-FLORIDA, INC., a Florida corporation ("Ticketmaster'), and CITY OF DELRAY BEACH, a Florida municipal corporation ("Principal"). WITNESSETH: In consideration of the mutual promises and covenants set forth herein, the parties hereby agree as follows: 1. Definitions. As used in this Agreement, the following terms shall have the respective meanings indicated below unless the context otherwise requires: (a) Attraction: A sporting event or other entertainment feature to be held at the Facility in respect of which Principal has authority to sell Tickets to the public. (b) Customer Convenience Charge: The amount charged to a Ticket purchaser by Ticketmaster for the use of the TM System. (c) Facility: Delray Beach Tennis Center, located in Delray Beach, Florida. (d) Facility Box Office: The Ticket locations at the Facility which are operated by Principal. (e) Hardware: All of that certain computer hardware, communications equipment, terminals and hook-ups listed with particularity on Exhibit 1, which is attached hereto and incorporated herein by this reference, or otherwise supplied by Ticketmaster to Principal at any time during the term of this Agreement. (f) Inside Charges: The amount charged to Principal by Ticketmaster for services rendered by Ticketmaster under this Agreement. (g) Outlet: A retail Ticket selling agency where Tickets for an Attraction are made available through the TM System and are offered for sale to the public. (h) Software: All the computer software, including all upgrades, new releases, new versions and modifications thereto during the term of this Agreement, which Principal shall have access to in connection with the sale of Tickets through the TM System. (i) Telephone Sales: All sales of Tickets through the TM System by telephone, IVR, computer, television, and similar means, including, but not limited to, the Internet. (j) TM System: The Hardware, Software, related procedures and personnel, and repair and maintenance services established and maintained by Ticketmaster for the purpose of selling, auditing and controlling the sale of Tickets for Attractions including, but not limited to, tickets sold at Outlets and through Telephone Sales. (k) Ticket: A printed or other type of evidence of the right to occupy space at or to attend an Attraction. (1) Ticket Receipts: The face value of a Ticket less the applicable Inside Charge. 2. Term of Agreement. The initial term of this Agreement shall begin on the date hereof and shall continue through the third (3rd) anniversary hereof. Thereafter, the term of this Agreement shall automatically be renewed for successive three (3) year periods unless either party hereto notifies the other party in writing, not less than ninety (90) nor more than one hundred and twenty (120) days prior to the end of the initial term or the then current renewal term, of its intentions not to renew this Agreement. 3. Compensation. In consideration for the license by Ticketmaster of the Hardware and Software to Principal and Ticketmaster's continuing services to be performed in connection herewith, Ticketmaster shall be entitled to receive the following fees and compensation: (a) Inside Charges: Ticketmaster shall assess and be entitled to receive from gross Ticket proceeds collected by it as an agent of Principal an Inside Charge on all Tickets sold or printed through the TM System. Such Inside Charge shall be equal to $0.00 per Ticket for each Ticket sold at an Outlet and the credit card charge set forth in Section 3(c) below with respect to Tickets sold by Telephone Sales. The Inside Charge shall be $0.05 for each other Ticket (other than complimentary Tickets) printed by or on behalf of Principal at the facility box office and $0.05 for each complimentary ticket printed by or on the behalf of Principal at the facility box office. The amount of Inside Charges owed by Principal to Ticketmaster shall be deducted from gross Ticket proceeds in the manner provided in Section 14 hereof. (b) Customer Convenience Charge: A per Ticket Customer Convenience Charge payable to Ticketmaster will be assessed against purchasers of Tickets at all Outlets and through Telephone Sales (see exhibit "B" attached hereto and incorporated herein as if fully set forth). The amount of the Customer Convenience Charge shall be determined by Ticketmaster from time to time during the term of this Agreement, taking into account market and economic conditions and expense factors. Principal consents to the imposition of the Customer Convenience Charge on all Ticket sales to purchasers at Outlets and on Telephone Sales. (c) Credit Card Sales: Principal hereby authorizes Ticketmaster to accept American Express, MasterCard, Visa, Discover and Diner's Club charges (and any other credit card which may hereafter be approved by Ticketmaster) in connection with sales of Tickets through the TM System. Ticketmaster agrees to absorb the credit card company charge relative to the Customer Convenience Charge and handling charge, and Principal agrees to absorb the credit card company charge relative to the face value of Tickets sold by Telephone Sales using such credit cards, in an amount equal to 2.5% of the face value of all Tickets sold by such credit cards. All such rates are subject to increase due to increases to the interbank rates, subsequent to Ticketmaster providing thirty (30) days written notice to Principal of such increase. Ticketmaster reserves the right to bill Principal for any credit card chargeback incurred with respect to any Attraction. Payment is due in full immediately upon receipt of such billing. (d) Handling Charge: Ticketmaster shall be entitled to assess and receive a handling charge in the mount of $2.50 per order ("Handling Charge") from each consumer ordering Tickets through Telephone Sales. The Handling Charge may be increased from time to time consistent with Ticketmaster's handling charge for similar facilities and is subject to automatic increase equal to any increase (rounded up to the nearest $0.05) in the postal service rates. Principal hereby agrees to the imposition of the Handling Charge. (e) Rental Fees: Principal shall pay Ticketmaster $2,000.00 per annum for the use of hardware (the "Hardware") defined in Exhibit 1 and on-line access to Tieketmaster's software (the "Software') during the term of the Agreement. The Hardware and Software shall at all times be and remain the sole and exclusive property of Ticketmaster, and Principal shall have no right, title or interest therein or thereto except as a licensed user thereof. (f) Season and Subscription Accounts: Principal shall pay Ticketmaster $3.50 per annum per season or subscription account in consideration for the storage and maintenance of each side account on the TM System. 4. Exclusive Rights. (a) Principal hereby grants to Ticketmaster, and Ticketmaster accepts from Principal, the exclusive right, subject to Principal's rights retained in this paragraph 4, during the term of this Agreement to sell, as Principal's agent, all Tickets for any Attraction made available generally to the public, via any and all means and methods, including, but not limited to, Telephone Sales, and Outlet sales. Principal retains all of its rights relating to sales of Tickets from the Facility Box Office provided Principal does not use the equipment or services of any third party computerized ticketing company or system to conduct such sales. (b) It is agreed and understood that neither Ticketmaster nor Principal guarantees or will guarantee that any minimum or fixed number of Tickets will be sold through the TM System for any Attraction. 5. Central Computer Facility; Conduct of Telephone Sales. Ticketmaster shall, at its sole expense, maintain a central computer facility at such location(s) as it shall deem necessary for the operation of the TM System. The central computer facility will be in operation 16 hours a day during each and every day of the year, and will be adequately staffed to perform all ongoing licenses user assistance, maintenance and repair services required to be performed by Ticketmaster under this Agreement. In addition to the foregoing, Ticketmaster also agrees to provide telephone Ticket sales services on behalf of Principal with respect to Attractions and, in that regard, shall receive telephone calls for Ticket sales between the hours of 9:00 a.m. and 9:00 p.m.E.S.T. Monday through Friday and between the hours of 10:00 a.m. and 7:00 p.m.E.S.T, on Saturday and Sunday, except on Christmas Day, and except for shortened hours on certain other holidays. Such telephone service will be adequately staffed to perform ongoing license user assistance with respect to Ticket sales. 6. Installation, Maintenance and Repairs. (a) Following the execution of this Agreemem, Ticketmaster shall proceed with due diligence to install the Hardware and to provide Principal with on-line access to the Software to facilitate Ticket sales on behalf of Principal in a manner compatible with the objectives of this Agreement and with due consideration of the needs of Principal. Any additional Hardware or Software or upgrades thereto beyond that described in Exhibit 1 attached hereto shall be provided to Principal at Ticketmaster's then current rates. The installation costs with respect to the Hardware, the cost of all telephone line connections between the central computer facility and the Facility, and all monthly telephone line costs with respect to the operation of the TM System between the Facility and the central compmer facility, shall be borne solely by Principal. Ticketmaster agrees to provide ordinary and routine maintenance and repair of the TM System at the Facility at no additional cost to Principal, provided that such maintenance or repair is not necessitated by the negligence of Principal, its employees, agents or representatives. Ticketmaster represents and warrants that adequate service sand repair personnel on duty at the central computer facility will be available to meet the reasonably anticipated service needs of Principal from time to time. In the event of any breakdown or malfunction in the operation of the Hardware, or difficulties encountered in connection with access to the Software, Principal agrees to promptly notify Ticketmaster of any such malfunction to assist Ticketmaster in performing its obligations hereunder. In the event of any emergency, Ticketmaster further agrees to respond to such emergency as quickly as possible to provide Principal with repair services. (b) Nondurable operational supplies which are used at the Facility in connection with the operation of the TM System, consisting of line primer paper and printer toner and ribbons, shall be paid for by Principal, and Principal shall be responsible for maintaining adequate supplies thereof to assure continuous operations at the Facility. 7. Limitation of Liability. In the event of any breach of this Agreement by Ticketmaster which may be caused by the malfunction of the Hardware or Software or by Ticketmaster's failure to provide required maintenance service and to keep the TM System in operating condition, the limit of any claim of loss by Principal shall be no greater than the proven financial loss sustained by virtue of such breach. Neither occasional short-term interruptions of service which are not unreasonable under comparable industry standards nor interruptions of service resulting from events or circumstances beyond Ticketmaster's reasonable control shall be cause for any liability or claim against Ticketmaster hereunder, nor shall any such occasion render Ticketmaster in default under this Agreement. 8. Training of Facility Box Office Employees. Principal shall staff the Facility Box Office at the Facility with its employees for the proper operation of the TM System for Ticket sales made through the Facility. Ticketmaster shall provide training to Principal at no additional charge for training Principal's employees, agents or subcontractors who shall be reasonably necessary for the initial staffing of the Facility Box Office and for operation of the TM System at the Facility. Ticketmaster shall also provide additional training at its cost to other employees, agents or subcontractors of Principal to the extent such training is necessary as a consequence of changes in, or a modification of, the Hardware or Software or in Ticketmaster's method of operation. To the extent of any change in personnel by Principal in connection with Facility Box Office sales requiring additional training beyond that initially contemplated hereunder, Principal agrees to absorb all of the expenses thereof, including trainer costs which are currently $15.00 per trainer per hour. 9. Facility Box Office Ticket Pick-Up. At all times during the term of this Agreement, Principal shall maintain a designated Facility Box Office location for the pick-up of Tickets purchases through Telephone Sales. The pick-up location shall be open during the normal hours of operation of the Facility Box Office. 10. Principal's Representative. During the term of this Agreement, Principal shall designate in writing to Ticketmaster an individual who will serve as Principal's representative with respect to the resolution of disputes which may arise in connection with the administration of this Agreement. Principal initially designates Brahm Dubin, or his designee as Principal's representative in such capacity. 11. Audit of Sales. At all times during the term of this Agreement, Principal shall have the right at its own expense to audit Ticket sales for Attractions at Outlets and through Telephone Sales made by Ticketmaster to assure its compliance with the terms of this Agreement. 12. Attraction Set-Up. In order to effectively utilize Ticketmaster's distribution technologies, within a reasonable time before (but in no event less than the time period described below) the scheduled on-sale date of Tickets for each Attraction (the "on-Sale Date"), Principal shall furnish Ticketmaster with all necessary information with respect to the proposed arrangement of the Facility for such Attraction, including, without limitation, seating layout, Ticket structure, discounts permissible, Ticket header information, color logos, entry information, vision and hearing information, wheelchair and other accessible seating information and such other information as is necessary for the proper sale of Tickets at the Facility Box Office, at all Outlets and by Telephone Sales (collectively, the "Set-Up Information"). Included in the Set-Up Information shall be Principal's prepared disclaimer respecting refund, the purchaser's assumption of risk of injury, and such other relevant information as Principal shall deem necessary or appropriate. The Set-Up information must be provided by Principal to Ticketmaster at least five (5) business days prior to the On-Sale Date for new on-sales and for new seating charts at any Facility. The Set-Up Information must be provided by Principal to Ticketmaster at least two (2) business days prior to the On-Sale Date for new Attractions which utilize seating charts then existing in the TM System. Notwithstanding anything contained herein to the contrary, Ticketmaster shall have no responsibility and Principal shall, to the extent permitted by law, indemnify and hold Ticketmaster harmless from and against any and all liabilities, claims, expenses - or causes of action resulting from the inaccuracy of any Set-Up Information furnished by Principal pursuant hereto. 13. Ticket Stock; Advertising. (a) Tickets Sold at the Facility Box Office: Principal agrees to supply, at its expense, all blank Ticket stock sold or printed at the Facility Box Office and shall have the right to sell advertising on such Ticket stock; provided, however, that Ticketmaster agrees to provide Ticket stock to Principal, at Ticketmaster's expense, in the event that Principal allows Ticketmaster to sell advertising, with respect to all of such Ticket stock. Ticketmaster agrees that any advertising placed on ticket stock provided by Ticketmaster is subject to the pre- approval of Principal. Principal shall be responsible for the security of Ticket stock in its possession and risk of loss of Ticket stock shall shift to Principal upon the delivery thereof to Principal or Principal's authorized representative, agent or employee. (b) Tickets Sold Through Ticketmaster: Principal hereby grants to Ticketmaster the right, in Ticketmaster's sole discretion, to advertise Attractions and the availability of Tickets at the Facility Box Office, at all Outlets and through Telephone Sales and, in connection therewith, to use the name and logo of Principal, the Attraction, the Facility and all other information respecting the Attraction. Ticketmaster, in its sole discretion, may promote and advertise on its own behalf, or on behalf of Principal or others, on all Tickets sold through the TM System at all Outlets and through Telephone Sales. Principal may, during the term hereof, provide and place advertisements in any form of media which Principal shall desire to promote the availability of Tickets; provided, however, that in the event Principal shall place any such advertisements its shall use its best efforts to cause the corporate name, logo, charge-by phone number and Intemet site address of Ticketmaster to be displayed in the advertisement, as well as the address of the Facility and, if possible, the identity of the Outlets where Tickets may be purchased. (c) Advertising Revenue: Ticketmaster and Principal shall separately receive and retain all income derived from advertising which each is entitled to sell under subsections (a) and (b) above. 14. Accounting Procedures. (a) Ticketmaster shall collect and deposit all Ticket Receipts derived from Ticket sales for Attractions from all Outlets and Telephone Sales in an account to be maintained by Ticketmaster at a financial institution selected by Ticketmaster. Withdrawals of all Ticket Receipts to which Principal is entitled shall be made from such account by Ticketmaster and delivered to Principal on Friday of each week with each weekly payment to be on account of TM System Ticket sales for Attractions occurring during the period of Monday through Sunday preceding such payment date. Each weekly payment shall be accompanied by a written accounting. (b) In the event that any Attraction is cancelled, postponed, or modified for any reason (each, a "Cancelled Attraction") the amount of funds held by Ticketmaster on account of Ticket sales for all Attractions ("Account Balance") (but specifically excluding therefrom the amount of Ticket sales proceeds to which Ticketmaster is entitled hereunder) shall be held and made available for distribution by Ticketmaster to consumers entitled to refunds. In the event that the Account Balance is insufficient to make all refunds, Principal shall deliver the amount of such deficiency ("Deficiency Amount") to Ticketmaster no later than 24 hours after notice by Ticketmaster to Principal. Ticketmaster shall also have the right to set-off any Deficiency Amount against any amounts held by Ticketmaster on behalf of Principal. It is agreed and understood that Ticketmaster is the Ticket selling agent of Principal and therefore Ticketmaster's agreement to make any refunds as the agent of Principal is subject and limited to Ticketmaster holding or receiving from Principal the full amount of funds necessary to make refunds to all consumers properly entitled to a refund. With respect to Cancelled Attractions, subject to Section 14(a), Principal authorizes Ticketmaster to refunds the Ticket price at each Outlet with respect to Tickets sold at such Outlet and by Telephone Sales with respect to Tickets sold by Telephone Sales, and to exchange Tickets pursuant to any exchange policy which may be adopted by Principal and Ticketmaster. Principal and Ticketmaster agree that Ticketmaster shall be entitled to retain the Inside Charges and Customer Convenience Charges assessable with respect to the initial sale of Tickets to Cancelled Attractions although no additional compensation shall be payable, or fee assessed by Ticketmaster, with respect to the exchange of any Tickets initially purchases at any Outlet or by Telephone Sales. Principal shall be responsible for any additional credit card charges incurred with respect to refunds of Tickets to Cancelled Attractions, and for all refunds and exchanges of Tickets initially purchased at the Facility Box Office. (c) It is agreed and understood that Ticketmaster shall not be liable to Principal for the printing and sale of counterfeit Tickets when such action is beyond the control of Ticketmaster; provided, that Ticketmaster has previously taken reasonable efforts to prevent the printing and sale of such counterfeit Tickets by adopting adequate control procedures. 15. Representation and Warranties. (a) Each party represents and warrants to the other that: (i) It is duly organized and in good standing under the laws of the State indicated as its state of organization in the first paragraph of this Agreement and has adequate power to enter into and perform this Agreement; (ii) This Agreement has been duly authorized, executed and delivered on behalf of such party and constitutes the legal, valid, and binding agreement of such party, enforceable in accordance with its terms; and (iii) The entering into and performance of this Agreement will not violate any judgment, order, law, regulation or agreement applicable to such party or any provision of such party's charter or bylaws, or result in any breach of, constitute a default under, or result in the creation of, any lien, charge, security interest or other encumbrance upon any assets of such party (or, in the case of Principal, result in any such encumbrance upon the Hardware or Software), pursuant to any instrument to which such party is a party or by which it or its assets may be bound. (b) Ticketmaster represents and warrants to Principal that: (i) Ticketmaster owns and has title to the Hardware and license rights in and to the Software; and (ii) The Hardware and Software will perform, and operation of the TM Systems, including all repair and service responsibilities, will be undertaken in a manner reasonably adequate for the performance of Ticketmaster's obligations under this Agreement; provided, however, that such warranties do not extend or become applicable with respect to any delays, stoppages or malfunctions which are caused by the acts of any third parties, or which are not under, or are caused by events or causes beyond, the control of Ticketmaster. PRINCIPAL HEREBY ACNKOWLEDGES THAT ALL IMPLIED WARRANTIES EXISTING BY OPERATION OF LAW, INCLUDING SPECIFICALLY ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPSOE, ARE EXPRESSLY DISCLAIMED AND NEGATED BY THE EXPRESS WARRANTIES PROVIDED HEREIN. (c) Principal represents and warrants to Ticketmaster that: (i) Principal is the sole and exclusive operator of the Facility and has the sole and exclusive rights and authority to enter into this Agreement and to schedule and present the Attractions at the Facility; and (ii) No agreement between Principal and any third party with respect to rights to sell Tickets contains or shall contain any provision inconsistent with any provision of this Agreement. (d) The representations and warranties contained in this Section 15 shall be deemed "material" as such term is used in Section 16, for all purposes related to this Agreement. 16. Event of Default; Termination. (a) The occurrence of any of the following events, continued for 30 days after receipt by the defaulting party of written notice thereof and the defaulting party's failure to cure the same shall, at the non-defaulting party's option, constitute an Event of Default hereunder: (i) the nonpayment by either party of any sums required to be paid or remitted to the other party hereunder; (ii) the default by either party under any material term, covenant or condition of this Agreement, or the breach by either party of any material representation or warranty contained herein; (iii) any affirmative act of insolvency by either party, whether voluntary or involuntary, or the filing by either party, or any third person against either party, of any petition or action under any bankruptcy, reorganization, insolvency or moratorium law or any other law or laws for the relief of, or relating to, debtors; provided, however, that no such act shall constitute an Event of Default unless and until such party shall be unable to meet its obligations to the other party under the terms of this Agreement; and provided that the parties agree that this Agreement constitutes a financial accommodation by Ticketmaster to Principal as such term is utilized in 11 U.S.C. §365; and (iv) the exposure of a substantial part of either party's property or of the Hardware to any levy, seizure, assignment or sale for, or by, a creditor or governmental agency. (b) Upon an Event of Default by Ticketmaster, Ticketmaster shall, without demand, forthwith pay to Principal all amounts due and owing pursuant hereto, and Principal may: (i) require Ticketmaster to remove all Hardware from the Facility and return the portion of the facility utilized by Ticketmaster to a state equal to or better than that which existed upon execution of this agreement, ordinary wear and tear excepted; and (ii) terminate this Agreement. (c) Upon an Event of Default by Principal, Principal shall, without demand, forthwith pay to Ticketmaster all amounts due and owing pursuant hereto and Principal authorizes Ticketmaster to set-off any amounts owed to Ticketmaster hereunder against any amounts held by Ticketmaster on behalf of Principal, and Ticketmaster may: (i) terminate Principal's right to access and use the TM System and take immediate possession of the Hardware wherever the same may be located without demand, notice or court order and return the portion of the facility utilized by Ticketmaster to a state equal to or better than that which existed upon execution of this agreement, ordinary wear and tear excepted; and (ii) terminate this Agreement. (d) No remedy referred to in this Section 16 is intended to be exclusive, but each shall be cumulative and in addition to any other remedy herein or otherwise available at law or in equity, each and all of which are subject to the limitation contained in Section 7 above. (e) Principal shall have the right to terminate this agreement upon thirty (30) days written notice in the event that the handling charge contemplated by Subparagraph 3(d) is increased to an amount that is unacceptable to Principal. Such determination is at the sole discretion of Principal. 17. Protection of Hardware. Principal acknowledges that the Hardware will be used by Principal at the Facility, which location Ticketmaster does not own, operate or control. Accordingly, the parties agree as set forth below with respect to the Hardware: (a) Loss and Damage: Principal hereby assumes and shall bear the entire risk of loss and damage to the Hardware, ordinary wear and tear excepted, whether or not insured against, once installed, unless occasioned by the negligence of Ticketmaster, from any and every cause whatsoever from the date of delivery of the Hardware to the Facility until removal thereof following termination of this Agreement. No such loss or damage to the Hardware shall impair any obligation of Principal under this Agreement. In the event of loss or damage of any kind to any Hardware, Principal, at its sole option, shall within thirty (30) days after such loss or damage: (i) Place the same, or replace the same with similar property, in good repair, condition and working order to the satisfaction of Ticketmaster; or (ii) Pay Ticketmaster in cash the full replacement cost of the Hardware, and Ticketmaster shall promptly install new hardware to replace the lost or damaged Hardware. (b) Insurance: (i) Principal shall, at its own expense, provide and maintain at all times during the term hereof insurance to protect the Hardware against loss caused by fire (with extended coverage), vandalism, malicious mischief, theft, or any other cause in an amount equal to the full replacement value of the Hardware as determined by Ticketmaster. Should Principal become unable to provide or maintain such insurance coverage, Principal shall promptly notify Ticketmaster in writing prior to the expiration of any such coverage and, thereafter, Ticketmaster shall have the right, but shall not be obligated, to provide insurance coverage for the occurrences specified above and charge Principal the costs of such insurance coverage. (ii) Principal shall provide, at its sole expense, comprehensive general liability and property damage insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 in the aggregate, for its protection and the protection of Ticketmaster. 10 (iii) Except as expressly provided in clause (ii) above, all insurance provided and maintained by Principal shall be in such amounts, under such forms of policies, upon such terms, for such periods and written by such companies as Ticketmaster and Principal shall agree upon, and in all cases such insurance policies shall provide for the waiver of the insurer's right of subrogation against Principal and Ticketmaster. All policies of insurance shall include Ticketmaster as an additional named insured and shall provide for at least 10 days prior written notice of cancellation or non-renewal to Ticketmaster. Principal shall furnish Ticketmaster with certificates of such insurance or other evidence satisfactory to Ticketmaster as to its compliance with the provisions of this Section. (c) Hardware and Software is Personal Property: Principal covenants and agrees that the Hardware and Software is, and shall at all times be and remain, personal property which shall, at all times, remain the sole and exclusive property of Ticketmaster and Principal shall have no right, title or interest therein or thereto except as a licenses user thereof. If requested by Ticketmaster, Principal will obtain a certificate in form satisfactory to Ticketmaster from all parties with a real property interest in the premises wherein the Hardware may be located, waiving any claim with respect to the Hardware. Except as may be necessary to prevent damage to or destruction of the Hardware, Principal will not move the Hardware nor permit such Hardware to be moved without Ticketmaster's prior written consent, which consent shall not be unreasonably withheld, and shall give Ticketmaster prompt written notice of any attachment or other judicial process affecting any item of Hardware. (d) Designation of Ownership: If, at any time during the term hereof, Ticketmaster supplies Principal with labels, plates or other markings stating that the Hardware is owned by Ticketmaster, Principal shall affix and keep the same in a prominent place on the Hardware in recognition of Tieketmaster's ownership of the same. (e) Use: Principal shall use the Hardware in a careful and proper manner and shall comply with and conform to all federal, state, municipal and other laws, ordinances and regulations in any way relating to the possession, use or maintenance of the Hardware. Neither Principal, nor its employees, agents, servants or representatives, shall alter, modify, copy or add to the Hardware or Software without the prior written consent of Ticketmaster. (f) Surrender of Hardware: Upon the expiration or termination of this Agreement, Principal shall return the Hardware to Ticketmaster in good repair, condition and working order, ordinary wear and tear resulting from proper use thereof along excepted. 18. Taxes. (a) Principal shall keep the Hardware free and clear of all levies, liens and encumbrances and shall promptly reimburse Ticketmaster for all license fees, registration fees, assessments, charges and taxes, whether municipal, state or federal, with respect to the Hardware located at the Facility, including, but not limited to, use, excise and property taxes, and penalties and interest with respect thereto, except and excluding, however, any taxes based on or measured solely by Ticketmaster's net income. 11 (b) Principal shall be responsible for the payment of any and all sales, amusement, admissions and other taxes or charges, measured by reference to a charge per ticket sold, due to any municipality or state as a result of, or in connection with, any Attraction held at the Facility (collectively, "Attraction Taxes") and for timely remitting same to the appropriate governmental authority. Principal shall promptly reimburse Ticketmaster for any and all such Attraction Taxes paid by Ticketmaster to any governmental authority on behalf of Principal (other than Attraction Taxes paid by Ticketmaster directly from proceeds of the ticket sales generating such Attraction Taxes), including penalties and interest with respect thereto, and including any and all expenses (including attorneys' fees) or damages that result from a failure by Principal to properly remit or reimburse Ticketmaster for any and all such Attraction Taxes as provided above. 19. Assignment. Without the prior written consent of Ticketmaster, Principal shall not (i) assign, transfer, pledge or hypothecate its rights in this Agreement or any interest therein, or (ii) permit the Hardware or any part thereof to be used, or access to the Software or any part thereof to be had, by anyone other than Principal or Principal's authorized employees, agents or subcontractors. Any such assignment shall not relieve Principal of any of its obligations hereunder. Without the prior written consent of Principal, Ticketmaster shall not assign nor transfer its rights in this Agreement or any interest therein, except in the event of an assignment by Ticketmaster to any parent, subsidiary, affiliate or successor-in-interest (including, without limitation, a successor by virtue of an acquisition), in which event no such consent shall be required. Any assignment, transfer, pledge or hypothecation for which consent is required hereby and which is made without such consent shall be void. 20. Indemnity. (a) Principal shall, to the extent permitted by law, indemnify Ticketmaster and its successors, assigns, officers, directors, employees and agents (collectively, for purposes of this Section, "Ticketmaster's Indemnities") against, and hold Ticketmaster's Indemnitees harmless from, any and all claims, actions, damages, expenses (including court costs and reasonable attorneys' fees), obligations, losses, liabilities and liens, imposed on, incurred by, or asserted against, Ticketmaster's Indemnitees occurring as a result of, or in connection with: (i) any Event or Default under this Agreement by Principal; (ii) Principal's use of the TM System or possession and use of the Hardware; or (iii) any Attraction held at the Facility; except to the extent that any such claim shall relate to Ticketmaster's negligence or willful misconduct with respect thereto. (b) Ticketmaster shall indemnify Principal and its successors, assigns, officers, directors, employees and agents (collectively, for purposes of this Section, "Principal's Indemnitees") against, and hold Principal's Indemnitees harmless from, any and all claims, actions, damages, expenses (including court costs and reasonable attorneys' fees), obligations, losses, liabilities and liens, imposed on, incurred by, or asserted against, Principal's Indemnitees occurring as a result of, or in connection with: (i) any Event of Default under this Agreement by Ticketmaster; or (ii) any alleged patent, trademark or copyright infringement asserted against Principal's Indemnitees with respect to Principal's use of the TM System; except to the extent 12 that any such claim shall relate to Principal's negligence or willful misconduct with respect thereto. 21. No Joint Venture. The relationship of Ticketmaster and Principal hereunder shall in no way be construed to create a joint venture or partnership, or to constitute either party as an agent or employee of the other party for any purpose other than as set forth herein. 22. Restrictive Covenant. Principal recognizes and acknowledges that the TM System as it now exists, including the Hardware and Software associated with the TM System and all improvements in the state of the art relative thereto, represents a valuable, special and unique asset of Ticketmaster. Principal consents and agrees that it will not, during or after the term of this Agreement, disclose any trade secrets of Ticketmaster as defined by Section 812.081, Florida Statutes, as may be amended from time to time, relating to the TM System, the Hardware or the Software, or applications, adaptations and modifications thereof, whether now existing or developed in the future, to any person, firm, corporation, association or entity for any reason or purpose whatsoever, provided, however, that this covenant shall not apply with respect to any information which becomes a matter of general knowledge within the public domain or if principal is obligated to disclose same by reason of any court order, rule or regulation applicable to the conduct of its business. Principal does further agree and acknowledge that any remedy at law for any breach or threatened breach of the provisions of this Section and the covenants set forth herein will be inadequate and, accordingly, Principal grants to Ticketmaster the right and entitlement to seek injunctive relief, without the posting of bond, for any such breach or threatened breach of the provisions and covenants herein in addition to, and not in limitation of, any and all other remedies at law or in equity otherwise available to Ticketmaster. 23. Miscellaneous. (a) Notices: Any notice required or permitted to be given by the provision hereof shall be conclusively deemed to have been received by a party hereto on the day it is delivered to such party at the address indicated below (or at such other address as such party shall specify to the other party in writing), or, if sent by registered or certified mail, on the third business day after the day on which mailed, addressed to such party at such address: (i) If to Ticketmaster, at: Ticketmaster-Florida, Inc. 225 East Robinson Street, Suite 355 Orlando, Florida 32801 Attn: Donna Dowless, Executive V.P. and: Tim O'Leary, General Manager and: Ticketmaster L.L.C. 3701 Wilshire Blvd., Ninth Floor Los Angeles, California 90010 Attn: Terry Barnes, President and C.E.O. and: Daniel R. Goodman, Esq., Executive V.P. and General Counsel 13 (ii) If to Principal at: (b) Effect of Waiver: No delay or omission to exercise any right or remedy in favor of Ticketmaster or Principal upon any breach or default hereunder shall impair any such right or remedy or be construed to be a waiver of any such breach or default; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent, or approval on the part of Ticketmaster or Principal of any breach or default under this Agreement, or of any provision or condition hereof, must be made in writing and shall be effective only to the extent specifically set forth in such writing. (c) Applicable Law: This Agreement shall be governed by, construed, interpreted, and enforced under the laws of the State of Florida and the United States without regard to conflict of laws provisions thereof. The sole jurisdiction and venue for actions related to the subject matter hereof shall be Florida state and United States federal courts having within their jurisdiction the location of Ticketmaster's office referenced in Section 23 (a)(i) above. Principal consents to the jurisdiction of such courts and hereby waives, to the fullest extent permissible, the defense of an inconvenient venue or forum to the maintenance of any such proceeding. (d) Additional Documents: Each of the parties hereto agrees to execute and deliver such additional and further documents and instruments as may be necessary or appropriate to carry out the intents and purposes of this Agreement. (e) Severability: In the event any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, but this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. Further, in the event that any provision of this Agreement shall be held to be unenforceable by virtue of its scope, but may be made enforceable by a limitation thereof, such provision shall be deemed to be amended to the minimum extent necessary to render it enforceable under the laws of the jurisdiction in which enforcement is sought. (f) Binding Effect: The terms, conditions, provisions and undertakings of this Agreement shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and permitted assigns. (g) Amendments: This Agreement shall not be changed, modified, altered or amended in any respect without the mutual consent of the parties hereto, which consent shall be evidenced by a written amendment to this Agreement executed by the parties hereto. 14 (h) Entire Agreement: This written Agreement and any Exhibits hereto constitute the sole and only agreement of the parties relating to the matters covered hereby. Any prior or contemporaneous agreements, promises, negotiations or representations not expressly set forth in this Agreement are of no force or effect. This Agreement supersedes any and all existing contracts and agreements by the parties with respect to the subject matter covered herein. (i) Force Majeure: Neither party hereto shall be deemed to be in default hereunder, and no Event of Default shall be deemed to have occurred, as a result of any delay or failure of performance which occurs due to any war, flood, fire, hurricane, earthquake, civil disturbance, act of God or other event beyond such party's reasonable control, including without limitation the failure of any computer system or embedded computer microprocessor to process or correctly interpret date data involving any date on or after January 1, 2000 (any such event is referred to herein as a "Force Majeure"), but only for so long as such Force Majeure shall continue to prevent such performance. (j) Counterparts: This Agreement may be executed in one or more counterparts, all of which shall be deemed to be one and the same document. (k) Third Parties: Nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement upon any person other than the parties hereto and their respective heirs, successors, legal representatives, and permitted assigns, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third persons to any party to this Agreement, nor shall any provision thereof give any third person any right of subrogation or action over or against any party to this Agreement. IN WITNESS WHEREOF, Ticketmaster and Principal have caused this Licensed User Agreement to be duly executed as of the date first above written. ATTEST: CITY OF DELRAY BEACH, FLORIDA By: City Clerk Jay Alperin, Mayor Approved as to Form: City Attorney 15 WITNESS: TICKETMASTER-FLORIDA, INC. By: Name Primed: Title: (prim or type name) SEAL STATE OF COUNTY OF The foregoing instrument was acknowledged before me this day of , 1998 by , of TICKETMASTER-FLORIDA, INC., a Florida corporation, on behalf of the corporation. He/She is personally known to me/or has produced (as identi- fication. Signature of Notary Public 16 DELRAY BEACH TENNIS CENTER Memberships · Membership Type 1999 INon Resident Family Annual I21 I I Non Resident Junior Annual I7 I INon Resident Single Annual I117 I IResident Family Annual I6,,3 I I Resident Junior Annual I8 I SUMMARY Residents 298 65% IResident Single Annual I 183 '1 Non-Residents 164 35% 462 100% IResident Junior Summer I 3 I INon Resident Family Summer I 2 I [Non Resident Single Summer ] 17 I I Resident Family Summer I 19 I I Resident Single Summer I 22 I ITotal 14621 u:lplbdltc/mbshpupd.xls MEMORANDUM RECEIVED To: David T. Harden, City Manager 0 C 1 1 1 1999 From:Ff~;t~C' Rebecca S. O'Connor, Treasurer CITY MANAGER Thru: Joseph M. S~ctor of Finance Subject: Survey - Tennis Operations Date: October 5, 1999 Attached are survey results relative to tennis operations for surrounding municipalities as per the request of Commissioner Archer. We have compared the net profit/loss at fiscal year ending September 30, 1998 for surrounding communities with that of the City of Delray Beach. It should be noted that the operation for Delray Beach's tennis operation has been separated from the stadium's operation so that the data is comparable. We have also included an income statement for the City of Delray Beach for Fiscal Year 1999 based on estimates provided by Brahm Dubin. C: Robert A. Barcinski, Assistant City Manager Brahm Dubin, Dubin & Associates CITY OF DELRAY BEACH TENNIS CENTER OPERATIONS COMPARISON WITH OTHER CITIES 1998 1998 1998 1998 1998 1999 BOCA BOYNTON CORAL FORT LAUD- DELRAY DELRAY EATON (1) BEACH (2) SPRINGS (3) LAUDERDALE TENNIS TENNIS (4) CENTER(5) CENTER (5) REVENUES: License Fees 0 0 0 0 0 0 Grants 0 0 0 0 0 0 Tennis Memberships 58,937 87,127 105,002 90,000 120,892 129,000 Tennis Programs 125,538 0 0 0 0 0 Tennis Lessons 0 0 13,278 78,736 129,979 220,000 Tennis Equipment Rental 0 0 0 0 645 2,000 League and Tournament Fee 0 48,000 0 12,016 36,532 50,000 General Admissions 0 23,700 22,798 84,643 37,044 40,000 Sale of Merchandise 10,601 0 13,654 0 25,437 30,000 Commission on Mdse. 0 265 0 2,551 2,914 2,000 Facility Rental 0 0 2,038 0 0 0 Sponsorships 0 0 0 0 0 0 Concert Revenue 0 0 0 0 0 0 Concession Revenue 0 0 20,530 0 0 0 Miscellaneous 0 2,556 2,706 0 1,605 14,000 *~I'OTAL REVENUES 195,076 161,648 180,006 267,946 355,048 487,000 OPERATING EXPENSE: 323,369 222,220 331,729 372,518 474,367 550,000 CAPITAL: 10,818 0 79,900 0 4,510 0 **TOTAL EXPENSES 334,187 222,220 411,629 372,518 478,877 550,000 NET PROFIT (LOSS) (139,111) (60,572) (231,623) (104,572) (123,829) (63,000) (1) Tennis Memberships and Admissions are combined. Encumbrances are not included. (2) Actual Amounts do not include encumbrances. Operating expenses include an estimate of $62,000 for utilities and insurance. (3) Encumbrances are not included. Tennis Lesson revenue are net of expenses. (4) Membership fees are estimated due to the fact that they are combined with other revenues. Encumbrances are included. (5) Includes encumbrances. The increase in revenues in Fiscal Year 1999 can be explained by an increase in tennis lesson revenue. This is offset, in part, by an increase in tennis lesson expense. Note: The survey results for the operation of West Palm Beach and Deerfield Beach were not considered due to the fact their operations were not comparable. file:tennisct/survey ::D ~: z ~ ~: o 0 (:ncc 0 ~ Z ~ :t Z < ~ ' ' ~ ~ 0 0 ~ ~ ~ ~ ~ I ~ , ~ 0 0 I I I ~ONSYU~ :Aq paq]o[d 666~ bb:~£:§~ Z~ qgO an1 §~p'zAa~q~[~-ep~a~e[\OO~-66\s~ga!OJd\dG¥96u~\squa~JedaP\~OO^JSSa\\ ~In~qe, wu~ '~n nn'~lnT~ nnn~ Tn~clgt ~r '~'~n anl fi~0~c/~p1TTf~-~D~F~Bf\(1R2-~\S~@[~J~\f1F~V3§Uq\S1Ua~]J~d@D\~^~Sga\\ SEPTEMBER, 1999 PRGPAR~D FOR TH~ CITY OF= DGLRAY B~_4CH, FLORIDA BY: Professional Engmeermg Inc. ;~00 E. Robinson StrGGt, SuitG 1560, Orlando, FL 32801 (66/60/60) 0'I/gI-l~I(I I DO£'N¥'kI$ fll~lY ' '\:D ~F'I~(I~[H~)S 0'~ ~OIJZ)~I~ suo!snlouoD £'~ spuneI/[O ooanoS uo.tlonpox~uI I'~ kW'Id SS~IhIISflH 0'£ hIOIJ~)~lS lqV~Id SSRlqlSflfl H~)V~ItI .~VlfI~IO ~IO CITY OF DELRAY BEACH BUSINESS PLAN 1.0 GENERAL Professional Engineering Consultants, Inc. (PEC) was authorized by the Delray Beach City Commission to develop a 20-year Capital Improvement Plan (CIP) and a Business Plan to describe the feasibility for the implementation of the 20-Year CIP. The 20-Year CIP is a separate report developed to assist the City staff with planning and coordinating related infrastructure improvements. The related infrastructure improvements include roadway reconstruction and resurfacing, expansion and upgrade of the potable water system, wastewater system enhancements and stormwater system improvements. 2.0 CAPITAL IMPROVEMF.~ PLAN OVERVIEW The City has conducted several master planning efforts since 1992. The master planning studies include: (1) City-developed ROadWay Condition Atlas dated January 8, 1999. (2) Technical Memorandum prepared for the city of Delray Beach entitled 2-Inch Water Main Replacement Program dated January 1998 and completed by Hazen and Sawyer. (3) Final Report prepared for the City of Delray Beach entitled Sewer System FI Program Phase 1 dated April 1998 and completed by Hazen and Sawyer. G:\.. ABUSPLAN.RPT 1 DB-ISI1.0 Cit~, of Delra~, Beach/Business Plan (4) Report prepared for the City of Delray Beach entitled Wastewater Transmission System Master Plan dated August 1992 and completed by Hazen and Sawyer. (:5) Report prepared for the City of Delray Beach entitled Water Distril~otion System Master Plan dated August 1992 and completed by Hazen and Sawyer. (6) Report prepared for the City of Delray Beach entitled St0rmwater Master Plan dated March 1993 and completed by Mock, Roos and Associates, Inc. (7) Numerous City staff meetings and staff reviews identifying additional capital projects needed to augment the existing master plans and the deletion of several completed capital improvement projects. PEC utilized the Roadway Condition Atlas (1999) as the base map. The Roadway Condition Atlas depicts the condition of all City-maintained roadways. The roadways were placed in categories A through E, with A being in very good condition and E being in very poor condition. With the coordination of the City staff, PEC selected roadways C, D and E as those in need of immediate repairs. Categories A and B are in good to very good condition and need no repair at this time. City-wide the cost of upgrading deficient roadways with conditions C, D and E totals $6,781,860. The cost for construction of unpaved existing roadways is $862,500 for a total of $7,644,300 for the roadway improvement program. The next step in development of the 20-year CIP included the identification and overlaying of the proposed water, wastewater and stormwater capital improvements on the Roadway Condition Atlas (base map). This exercise enabled PEC to identify the water, wastewater and stormwater improvements that are within the rights-of-way of roadways identified as G:\...kBUSPLAN.RFr 2 DB-15/1.0 (10/12/99) Cit~' of Delra~ Beach/Business Plan condition C, D and E. PEC also mapped all water, wastewater and stormwater improvements that are outside of the deficient roadways. Based on the depiction of all infrastructure capital improvements versus capital improvements within the fights-of-way of deficient roadways, we were able to describe the cost of the 20.year CIP in two phasea: (1) Roadway (C,D,E) and all capital improvements within the fights-of-way and; (2) 20- year CIP capital improvements, outside of the deficient roadway fights-of-way plus the deficient roadways and associated utility improvements. The total cost of infrastructure improvements (roadways, water, wastewater and stormwater) within the fights-of-way of the deficient roadways is $12,618,000. The costs of the improvements divided into categories are presented in Table 2-1. TABLE 2-1 20-YEAR CIP INFRASTRUCTURE IMPROVEMFNT COST WITHIN RIGHTS-OF-WAY Infrastructure Improvement Cost Roadway $7,644,360 Water $1,536,833 Wastewater $749,984 Stormwater $2,687,065 Total $12,618,000 G:\..ABUSPLAN.RPT 3 DB-15/1.0 City of Delray Beach/Business Plan The total cost of infrastructure improvements (deficient roadways, water, wastewater and stormwater) throughout the City is $40,629,000. The costs of the improvements divided into categories are presented in Table 2-2. TABLE 2-2 20-YEAR CIP INFRASTRUCTURE IMPROVEMF~NTS THROUGHOUT CITY Infrastructure Improvement Cost Roadway $7,644,360 Water $14,679,325 Wastewater $957,855 Stormwater $13,910,190 Infiltration/Inflow $3,437,506 Total $40,629,000 The preceding information was presented to the Delray Beach City Commission and City staff in a work session on June 8, 1999. The City Commission requested additional information concerning the funding alternatives, possible millage and utility rate implications and scheduling options. The following section presents the Business Plan which provides the requested additional information designed to assist the City Commission with deliberation concerning the feasibility of funding the 20-year Capital Improvement Plan. O:\...~BUSPL,M~I.RlYi' 4 DB-15/1.0 Cit}, of Delra~ Beach/Business Plan 3.0 BUSINESS PLAN 3.1 INTRODUCTION To develop this Business Plan PEC coordinated with the City's Finance Director, Treasurer, and the Environmental Services Director through a series of meetings and telephone conferences. Funding availability is based on information provided by the City, including the City's Budget Policies and Procedures and the City's annual budgets for the General and Enterprise Funds. The 20-Year Capital Improvement Plan has been defined in the previous section. The 20- Year CIP has been divided into the following components: Phase 1 Roadway Improvements to roads in levels "C" or worse and all associated water, wastewater and stormwater improvements located within the deficient roads rights-of-way. (Cost - $12,618,000) Phase 2 Roadway improvements to roads in level "C" or worse and all water, wastewater, stormwater and infiltration/in-flow improvements throughout the City. (Cost - $40,629,000) 3.2 SOURCE OF FUNDS The City of Delray Beach uses a variety of funds to implement its capital improvement programs. The City requires that any proposed borrowing shall include an analyzation of the impact of future debt service upon the projections of annual revenue and expenditures. G:\.,ABUSPLAN.RPT 5 DB-IS/1.0 00112/99) Cit~ of Delray Beach/Business Plan The City Commission must determine that any proposed borrowing will not diminish the City's ability to continue to provide municipal services at an adequate level. 3.2.1 PHASE 1 The 20-year proposed Capital Improvement Plan impacts the General Fund, Water and Wastewater Enterprise Funds and the Stormwater Enterprise Fund. Implementation of Phase 1 of the 20-year CIP has the following impact on the described fund accounts. TABLE 3-1 20-YEAR CIP FUND SOURCE IMPACTS - PHASE Funding Source Required Funding General Fund $7,644,360 Enterprise Funds Water and Sewer $2,286,817 S tormwater $2,687,065 Total $12,618,000 A review of the Water and Sewer Enterprise Fund with the Finance Director and Environmental Services Director indicates the funding for the proposed capital improvement projects is available from the annual appropriation of expenditures. The proposed CIP water and sewer projects could be funded without borrowing and with no G:\...~BUSPLAN.RPT 6 DB-15/1.0 (10/12/99) City of Delray Beach/Business Plan ~ to the existing customer base. No delay in existing/proposed projects is expected. A review of the Stormwater Enterprise Fund with the Finance Director and Environmental Services Director indicates the funding of the proposed capital improvement projects is available from the annual appropriation of expenditures. The proposed CIP stormwater projects could be funded without borrowing and with llg_llte,_O, hgg~ to the existing customer base. Existing stormwater maintenance projects may be delayed for a 1-2 year period to complete the CIP projects. A review of the General Fund with the Finance Director and Environmental Services Director was completed. The General Fund is a very complex account comprised of numerous sources of revenue. Revenues for this fund are derived from Ad Valorem taxes, sales and use taxes (including local option gas taxes), franchise fees, licenses and permits, intergovernmental revenue, charges for governmental services, fines and forfeitures, and miscellaneous revenue sources. The appropriation from the General Fund is for expenditures such as general governmental, public safety, public works, parks and recreation, grants (matching funds), retirement funds, capital, and contingency. The City's proposed 1999/2000 General Fund is a total of approximately $51,000,000 which includes Ad Valorem tax revenue of approximately $32,500,000. The City's proposed 1999/2000 millage rate is 7.65 mills of which 6.91 mills is levied to fund the City's general operating expenses and 0.74 mills is levied to fund the City's payment of principal and interest (debt service) for any loans secured by the full faith and credit of the City of Delray Beach. G:\...~BUSPLAN.RPT 7 DB-15/1.0 O0/~2/99) City of Delray Beach/Business Plan The Phase 1 roadway improvements are to be funded from the General Fund. Currently, the General Fund is balanced and does not have any additional revenue sources to fund the roadway improvements. The Phase 1 roadway improvements are $7,644,000 and must be funded from a borrowing by the General Fund. A borrowing by the General Fund would be based on a pledge to 'budget and appropriate' the amount necessary to fund the annual debt service. The annual debt service necessary to fund a construction program of approximately $8,000,000 would be approximately $600,000 over a 20-year term at an interest rate of approximately 4.8 percent. This increase to the General Fund expenditures is equivalent to a millage rate of .20 mills. In mary, the General Fund must be increased by an annual amount of $600,000 (.20 mill.q) to support the debt of $8,000,000 for improvements to roadways "C* or worse. 3.2.2 PHASE 2 Implementation of Phase 2 of the 20-year CIP impacts the General Fund, Water and Sewer Enterprise Fund, and the Stormwater Enterprise Fund. Phase 2 includes improvements of all roadways 'C' or worse and the water, sewer, and stormwater capital improvements City-wide. The total cost of Phase 2 is $40,629,000. Implementation of Phase 2 of the 20-year CIP has the following impact on the described fund accounts: G:\...I, BUSPLAN.RPT 8 DB-15/1.0 (1o/12/99) City of Delra~ Beach/Business Plan TABLE 3-2 20-YEAR CIP FUNDING SOURCE IMPACTS - PHASE 2 Funding Source Required Fllndlng General Fund $7,644,360 Enterprise Funds Water and Sewer $19,074,686 Stormwater $13,910,190 Total $40,629,236 A review of the Water and Sewer Enterprise Fund with the Finance Director and Environmental Services Director indicates the funding of the City-wide water and sewer capital projects is not currently available from the annual appropriation of water and sewer expenditures. The cost estimate for the total City-wide water and sewer capital improvements is $19,074,686. A borrowing by the Water and Sewer Enterprise Fund would be necessary to fund the City-wide 20-year water and sewer CIP. The existing Board Resolution (Series 1997A) authorizes the issuance of additional parity bonds from the Net Revenues of the System upon certification by the City's Consulting Engineer of sufficient Net Revenues. An annual debt service amount of $1,450,000 would be necessary to support a parity bond issue of approximately $19,074,686 over a 20-year term at an interest rate of 5.0 percent. This proposed increase in the net revenue of the Water and Sewer Enterprise Fund would result in a rate increase of up to 8.5 percent. G:\..ABUSPLAN.RPT 9 DB-15/1.0 (1ot12/99) City of Delray ]~ach/Business Plan A review of the Stormwater Enterprise Fund with the Finance Director and Environmental Services Director indicates the funding of the City-wide stormwater capital projects is not currently available from the annual appropriation of stormwater expenditures. The cost estimate for the total City-wide stormwater capital improvements is $13,910,190. A borrowing by the Stormwater Enterprise Fund would be necessary to fund the City-wide 20-year stormwater CIP. An annual debt service amount of approximately $940,000 would be necessary to support a revenue bond issue of approximately $13,910,190 over a 20-year term at an interest rate of 5.1%. The proposed increase in the net revenue of the Stormwater Enterprise Fund would result in a rate increase of up to 60 %. In summary, if the total 20-Year CIP were funded through a series of borrowings by the General Fund and the Enterprise Funds, the following conditions would result: (1) Revenue to the General Fund would have to be increased by $600,000 per year (equivalent to a .20 millage increase); (2) Net revenue of the Water and Sewer Enterprise Fund would have to be increased by $1,450,000 per year (equivalent to an 8.5% rate increase); and (3) Net revenue of the Stormwater Enterprise Fund would have to be increased by $940,000 per year (equivalent to a 60% rate increase). G:\.. ABUSPLAN.RPT 10 DB-15/1.0 (IO~12~) Cit~, of Delra~' Beach/Business Plan 3.3 CONCLUSIONS The City of Delray Beach has developed a 20-Year Capital Improvement Plan integrating proposed infrastructure (roadway, water, wastewater and stormwater) capital improvements. The capital projects include improvement of ail City-maintained roadways that are defined as Category ~C" or worse and all water, wastewater and stormwater improvements needed for the 20-year planning period. The total estimated cost of the 20-Year Capital Improvement Plan is $40,629,000. The funding necessary for the implementation of the total City-wide 20-year plan would result in the need to increase revenues of the General Fund and Enterprise Funds as follow: 1) The revenue to the General Fund would have to increase annually by $600,000 over a twenty (20) year period. The increased revenue is equivalent to 0.20 mills of Ad Valorem tax. 2) The Water and Sewer Enterprise Fund revenues would have to be increased annually by $1,450,000 over a twenty (20) year period. The increased revenue is equivalent to a water and sewer rate increase of approximately 8.5 percent. 3) The Stormwater Enterprise Fund revenues would have to be increased annually by $940,000 over a twenty (20) year period. The increased revenue is equivalent to a stormwater rate increase of approximately 60%. An alternate to immediately funding the total 20-Year Capital Improvement is to implement the CIP in phases. Phase 1 is proposed to include all City-maintained roadways that are defined as Category *C# or worse and related water, wastewater, and stormwater ~:\.. ABUSPLAN.RPT 11 DB-15/1.0 (10t12199) Cit~, of Delra~, Beach/Business Plan improvements within the existing rights-of-way of the deficient roadways. The proposed Phase 1 of the 20-Year CIP can be implemented at an estimated total cost of $12,618,000. As with the City-wide 20-Year CIP, the impact to the General Fund would be the same (annual increase in revenue of $(:~)0,000). The General Fund impact is unchanged because the proposed roadway improvements are consistent. The impact to the Water and Sewer Enterprise Fund and the Stormwater Enterprise Fund would be minimal with no rate increase necessary to fund the implementation of Phase 1 of the 20.Year CIP. 4.0 SCHI~fIULE Based on meetings with the Environmental Services Director, we suggest the City of Delray Beach utilize its continuing engineering consultants to provide the design and permitting of the capital projects. Most of the proposed projects are not complex engineering design and permitting assignments and can be completed within a 120-180 day period. The key to successful implementation of the proposed capital improvements is utilizing the 20-year CIP to eoordlnate the design, permitting and construction of the roadway and infrastructure improvements ~, avoiding the installation of underground facilities subsequent to the completion of a roadway improvement project. Another key factor for public acceptance of the implementation of the 20-Year CIP is the timing of the construction projects. PEC suggests using the "season" (November through March when population increases due to tourists and winter residents) as the time for completion of design and permitting. The remaining seven months would be the best time for coordinated construction activities. G:~...~BUSPLAN.RPT 12 DB-IS/1.0 00/12/99) Cit~ of Delra~ Beach/Business Plan Based on an annual window of oppo~ for seven (7) months of construction, PEC recommends that Phase 1 of the 20-Year CIP could be completed within two (:2) years of start-up. The total 20-Year CIP could be completed within (3) years of start-up. G:\...~BuspLAN.RPT 13 DB-I:511.O ~1 Engineering Consu/lants, Inc. ;~00 G. Robinson StrGGt, SuitG 1560. Orlando, FL 32801 CITY DF DELRI:IY BEI:IgH CITY ATTORNEY'S OFFICE ~,oo ,w ,~, ^v,~,~,,..~,~.,,,¥ ,,~^~,,, ..o,,,,~^ TELEPItONE 561/243-7090 · FACSIMILE 561/278-4755 DELRAY BEACH  Writer's Direct Linc: 561/243-7091 Ali.America City DATE: October 11, 1999 TO: City Commission FROM: Susan A. Ruby, City Attorney SUBJECT: Amended Resolution for General Employees Drop Plan The attached resolution amends Resolution No. 52-99 previously approved by the City Commission, which establishes a Drop Plan for certain eligible general employees, by deleting a part of the last sentence in Section 1. The ICMA Corporation is requiring this revision. Please place on the October 12, 1999 City Commission meeting. Attachment cc: David Harden, City Manager Alison MacGregor Harty, City Clerk RESOLUTION NO. 64-99 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING RESOLUTION NO. 52-99 AND SUBSTITUTING THIS RESOLUTION ESTABLIHSING A DEFERRED RETIREMENT OPTION PLAN FOR CERTAIN ELIGIBLE EMPLOYEES AND ADOPTING THE DECLARATION OF TRUST OF ICMA RETIREMENT TRUST; PROVIDING FOR A COORDINATOR; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Delray Beach, Florida (hereinafter referred to as the "City") has previously established and maintains a deferred compensation plan for certain of its employees which is administered by the ICMA Retirement Corporation (hereinafter referred to as the "Administrator"); and WHEREAS, the City desires to establish a Deferred Retirement Option Plan (DROP Plan) for certain eligible employees; and WHEREAS, the City desires that the DROP Plan be administered by the ICMA Retirement Corporation and the funds held under such a plan shall be invested in the ICMA Retirement Trust, a trust established by public employees for the collective investment of funds held under their retirement plans. WHEREAS, other public employers have joined together to establish the ICMA Retirement Trust for the purpose of representing the interests of the participating employers with respect to the collective investment of funds held under their deferred compensation plans; and WHEREAS, the City does hereby wish to execute the Declaration of Trust of ICMA Retirement Trust; and WHEREAS, the City does he~'eby .wish to amend Resolution No. 52-99 by amending Section 1 of said resolution upon the direction of the ICMA Retirement Corporation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Resolution No. 52r99 is amended by amending Section 1 to read as follows: That the City does hereby establish a DROP Plan in the form provided by the plan attached hereto as Appendix A for certain eligible employees and executes the Declaration of Trust with the ICMA Retirement Corporation, as same appears in Appendix "B" which is attached hereto and made a part hereof, as an amendment and restatement of its existing agreement with the ICMA Retirement Corporation, intending that this execution to be operative with respect to any retirement or deferred compensation plan subsequently established by the City if the assets of the plan are to be invested in the ICMA Retirement Trust, o,~1 ~i;~.~,~,o *~a Tr~T~Sa Da,; ..... , ~ .....,; .... T~etee, Section 2. Employees eligible to participate in the DROP plan are those employees who are eligible members of the General Employee Pension Plan under the terms and conditions set forth in City ordinances as may be amended from time to time. Section 3. That the City hereby agrees to serve as trustee under the Plan and to invest funds held under the Plan in the ICMA Retirement Trust. Section 4. That the City does hereby authorize the City Manager of the City of Delray Beach, Florida to be the coordinator for this program, and to be the official of the City authorized to receive the necessary reports, notices, etc. from the ICMA Retirement Corporation or ICMA Retirement Trust as administrator, and to cast, on behalf of the City, any required votes under the program and is authorized to execute all necessary agreements with the ICMA Retirement Corporation incidental to the administration of the program. All administrative duties to carry out the plan may be assigned by the City Manager to either the City Manager's Office or to appropriate departments of the City. Section 5. That this resolution intended to substitute for Resolution 52-99. PASSED AND ADOPTED in regular session on this the ~ day of ,1999. MAYOR ATTEST: City Clerk 2 RES. NO. 64-99