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06-12-90 Regular
~ I CITY OF DELRAY BEACH, FLORIDA REGULAR MEETING - CITY COMMISSION June 12, 1990 6 P.M. AGENDA Commission Chambers PUBLIC HEARINGS - 7 P.M. Please be advised that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at this meeting or hearing, such persons will need a record of these proceedings, and for this purpose such persons may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. The City does not provide or prepare such record. 1. Roll Call. 2. Invocation. 3. Pledge of Allegiance to the Flag. 4. Agenda approval. Action: Motion to approve. 5. Approval of Regular Meeting minutes of May 22, 1990 and Special Meeting Minutes of May 15 and May 30, 1990. 6. Proclamations: vA. Commending Mr. Dan Burns and the National Automobile Dealers Association for their contributions to improving the quality of life of our communities. vB. Commending Fire Fighter Ruspell Accardi, Fire Fighter Michael McCleary, Fire Fighter David Brassard, Paramedic-Fire Fighter Richard Murphy, Pa~amedic-Fire Fighter Edward Crelin, Driver- Engineer Wayne Dorcas, Lieutenant ~h0rnas Buce and Battalion Chief Frank Ryncarz for ".i'~lird Place" ranking in the 1989 International Extrication Competj.t.:ion ûnd SYMy;·sil1.Ir, C. Commending LieutGnan~ Rotext Múxeland III, Paramedic- Fire Fighter Raymond B. Fitzer, DrivQ Pngineer Peter Carafano, Paramedic-Fire Fighter Katherine If0ccherl, and Mr. Gordon Panter for "Third Place" ranking in the 1990 Canadian International Advanced Life Support Competit10n. D. Commending Stephen Adderly for hjs flchievements as an athlete and role model for youth in the City 0; Dei.ray Beach. 7. Presentations: A. Formal Introduction of City Department Heads to City Commission and City Manager. Agenda Meeting of 6/12/90 B. Legislative Summary by our Legislative Consultant Kathy Daley. 8. Consent Agenda: A. BANKING SERVICE AGREEMENT: Consider approving a one year extension of our banking service agreement with Barnett Bank for general banking services including lockbox operations services for water/sewer bill payments and occupational license payments. City Manager recommends approval. B. FINAL PLAT APPROVAL: Approve final plat for Old School Square located on N.E. 1st Street and Atlantic Avenue. City Manager recommends approval. C. REQUEST FOR VARIANCE: Consider request from property owner at 1850 Lake Drive for a dock variance to install a dock/slip 30 feet into Lake Ida. City Code allows a maximum of five feet. City Manager recommends approval. D. REQUEST FOR VARIANCE: Consider a request from property owner at 25 N.W. 25th Street to install a dock/slip 30 feet into Lake Eden. City Code allows a maximum of five feet. City Manager recommends approval. E. RESOLUTION NO. 56-90: A Resolution assessing costs for abatement action required to board up an unsafe structure at 300 Gulfstream Boulevard. City Manager recommends approval. City Manager recommends approval. F. RESOLUTION NO. 57-90: A Resolution recognizing Gates Castle for his 10 years of dedicated service as an employee with the City of Delray Beach. City Manager recommends approval. G. RESOLUTION NO. 58-90: A Resolution correcting the legal description contained in Resolution 7-90 which vacated and abandoned a portion of Lindell Boulevard and Germantown Road (Target Shopping Center/ Waterford) . City Manager recommends approval. H. RESOLUTION NO. 59-90: A Resolution amending Resolution No. 54-89 and Resolution No. 23-90 regarding the Education Board by extending the sunset provision until July 12, 1990. City Manager recommends approval. I. AWARD OF BIDS AND CONTRACTS: 1. Annual Wrecker/Towing Services- Police Department- Zuccala Wrecker Services in the amount of $145,514 (no City funds expended. Users will be responsible for payment of charges for wrecker/towing services). 2. North Federal Highway Irrigation- Community Improvement- All-Green Law Sprinklers in the amount of $23,590 with funding from 1987 Utility Tax- N.E. 8th Avenue and Federal Highway to AlA (Account No. 333-4141-572-61.29). -2- Agenda Meeting of 6/12/90 9. Regular Agenda: A. REMOVED FROM THE AGENDA. B. SITE PLAN APPROVAL: Consider site plan approval for Delray Town Center, Phase II, a proposed 71,990 square foot retail shopping center, located north of Linton Boulevard approximately 630 feet east of Military Trail. No Planning and Zoning recommendation ( 3 - 3 vote). v' C. CONDITIONAL USE AND SITE PLAN APPROVAL: Consider conditional use and site plan approval for the proposed Bayside Manor Adult Congregate Living Facility (ACLF) to be located on the west side of Venetian Drive between Ingraham Avenue and Galanger Way. City Manager and Planning and Zoning Board recommend approval. D. SITE PLAN APPROVAL: Consider site plan approval for a proposed Holsum Bakery to be located on the east side of Congress Avenue between Park of Commerce Boulevard and the L-30 Canal (Tract K, Delray Park of Commerc e) . City Manager and Planning and Zoning Board recommend approval. E. APPEAL OF COMMUNITY APPEARANCE BOARD ACTION: Consider appeal of Community Appearance Board action of May 9, 1990 which denied an application for a projecting wall sign for Total Golf. F. APPROVAL OF SELECTION OF ARCHITECT (S) : Select architect(s) for the Decade of Excellence Parks Projects and authorize staff to negotiate a contract(s). G. GOLF COURSE LICENSE AGREEMENT: Review and determine status of current golf course license agreement. H. WAIVER OF BID IRREGULARITIES AND AWARD OF BID: Consider waiving bid irregularities in the bids received for the North Federal Highway Landscaping Project and Award bid to All-Green Lawn Sprinklers in the amount of $90,460.55 with funding from 1987 Utility Tax- N.E. 8th Avenue and Federal Highway to AlA (Account No. 333-4141-572-61.29) . City Manager recommends approval. I. APPOINTMENT OF AN ALTERNATE MEMBER TO THE BOARD OF ADJUSTMENT: Appoint a member as an alternate to the Board of Adjustment to a term ending June 12, 1993 to fill the unexpired term of Mark Krall. Seat 4 appointment. J. APPOINTMENT OF A MEMBER TO THE HUMAN RELATIONS COMMITTEE: Appoint a member to the Human Relations Committee to a term ending June 12, 1992 to fill the unexpired term of Randee Golder. Seat 1 appointment. K. APPOINTMENT OF A MEMBER TO THE HISTORIC PRESERVATION BOARD: Appoint a member to the Historic Preservation Board to a term ending June 9, 1992. Mayoral appointment. L. RESOLUTION NO. 55-90: A Resolution authorizing the Community Redevelopment Agency to purchase the closed gas station -3- Agenda Meeting of 6/12/90 at 442 West Atlantic Avenue, located on the southeast corner of West Atlantic Avenue and S.W. 5th Avenue, owned by Chevron, U.S.A. and the vacant parcel, (formerly the site of the Old Taxi Stand), located between N.W. 4th Avenue and N.W. 5th Avenue east of and adjacent to the Old Georgia Town Tavern property which the City owns. City Manager recommends approval. M. APPROVAL OF AGREEMENT BETWEEN THE CITY AND PALM BEACH COUNTY SCHOOL BOARD: Approve an agreement with the School Board to provide school buses and drivers for the Summer Day Camp programs. City Manager and City Attorney recommend approval. N. CANCELLATION OF BID AWARD AND RE-AWARD: Cancel award of bid to Regency Dodge, Inc. for a 3/4 Ton Pick-up Truck for Streets Department and re-award bid for that truck plus an additional four trucks (five total) to Sherwood Pontiac- GMC Truck, Inc. in the amount of $55,600 with funding from Parks, Utilities, and Streets automotive budgets (XXX-XXXX-XXX-60.84). City Manager recommends approval. 10. Public Hearings- 7 p.m.: A. ORDINANCE NO. 19-90: An Ordinance amending the Code of Ordinances to allow directional signs for civic organizations, churches, recreational facilities, and residential subdivisions to be located on rights-of-way. City Manager recommends approval. 11. Comments and Inquiries on Non-Agenda Items from the Public- Immediately following Public Hearings. 12. First Readings: None. 13. Comments and Inquiries on Non-Agenda Items: A. Commission B. City Attorney C. City Manager -4- - MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER SUBJECT: AGENDA REPORT - MEETING OF JUNE 12, 1990 DATE: June 8, 1990 8. Consent Agenda: A. Banking Service Agreement. This is an agreement for banking services including lockbox operations services for water/sewer bill payments and occupational license payments with Barnett Bank. This is a one year contract extension. Terms and provisions include: 1. Banking charges for services provided under this agreement will remain unchanged during the entire term of the agreement. Those services include TBA Account Maintenance, deposits, microfilming checks, returned items, wire transfers, research items, internal transfers, stop payment, zero balance accounting (master and subsidiary) , partial and full reconciliations, deposit reconciliation, armored car service, rubber stamp endorsement, night depository key lock bags, coins sort and deposit, foreign coin/currency exchange, monthly safekeeping and safe deposit box. 2. All items deposited for credit by the City or deposited as a result of the lockbox activity, shall be credited to the account of the City on the same day on which the Bank received credit for such items. Wire transfers shall be credited to the account of the City on the same date on which the Bank received credit for wire transfer. 3. Tax Collector deposits shall be shown as ledger credit on the date on which the deposit is made. 4. The Bank will have and main\ 3:;;-. SHf tic :.eüt s l: fil ..L '1..0 " . ';,:'I0r t. City requirements on a continuinl] })a s.i s A Cr> ;,,;J~ l¡Ð.!hl,:fBment Services person will be desigr:;tEH.l by f he B;:, ,I{ t,c ;":: ~ ,~. s liaison with the City for all matters regarding j~8 ..~cr:ount 5. Armored car services will be prov ideò. on I'. dai ly (MonÚ¡~ '.r through Friday) basis. 6. A complete account analysis will be pJ~vided by th~ Bank &t th€ end of each calendar month, and no later tha~ t~e ~~th w0Fking day of the following month. 7. Bank supplies such as rubber stamp endorse!!"': 'Ls j ( .~) ,.; wT2.pp~j/~..' and night depository key locks will be s upp 1.1. ed ¡. -.: nc, '": o:~ t: . A detailed summary and a complete copy of the current agreement is attached as backup material for this item. Recommend approval of one year contract extensioI)._ un':}·L C£ t<?!-~~~~_.} I_ 1991, for banking services, with Barnett Bank. - AGENDA REPORT ~.-. Meeting of 6/12/90 B. Final Plat Approval. This is a staff initiated request for final plat approval for the Old School Square project located on N.E. 1st Street and Atlantic Avenue. At your April 24th meeting, the Commission approved Resolution No. 42-90 which abandoned the right-of-way from Pearl Street and a 16 foot alley located between Lots 1 through 4 of Block 68 as required for replat of Old School Square. This plat incorporates those abandonments and dedicates additional right-of-way for streets and establishes a new Florida Power and Light easement. This action is consistent with previous plat approval for projects in which the City holds a vested interest. Recommend approval of final plat for Old School Square. C. Request for Variance. The property owner at 1850 Lake Drive has requested a variance to install a dock/slip 30 feet into Lake Ida. City Code allows a maximum of five feet. The City Engineer has reviewed this request and recommends approval as it would be impossible to construct a usable dock and meet Code requirements. Additionally, the proposed dock will not pose a safety hazard. Adjacent property owners have been notified and have voiced no objection to the proposed dock. Recommend approval of dock variance to install a dock/slip 30 feet into Lake Ida at 1850 Lake Drive. - D. Request for Variance. The property owner at 25 N.W. 25th Street has requested a variance to install a dock/slip 30 feet into Lake Eden. City Code allows a maximum of five feet. The City Engineer has reviewed this request and recommends approval as it would be impossible to construct a usable dock and meet Code requirements. Additionally, the proposed dock will not pose a safety hazard. Adjacent property owners have been notified and have voiced no objection to the proposed dock. Recommend approval of dock variance to install a dock/slip 30 feet into Lake Eden at 25 N.W. 25th Street. E. (Resolution No. 56-90) This is a Resolution assessing costs for abatement action required to board up an unsafe structure at 300 Gulfstream Boulevard. The Resolution sets forth the actual costs incurred and provides the mechanism to attach a lien on this property in the event the assessment of $554.40 remains unpaid. Recommend approval of Resolution No. 56-90 assessing costs for boarding up an unsafe building within the City. F. (Resolution No. 57-90) This is a Resolution recognizing Gates Castle for his 10 years of dedicated service as an employee with the City of Delray Beach. This item is before you for formal adoption only, prior presentation was made at your June 5th workshop meeting. '"- - 2 - AGENDA REPORT Meeting of 6/12/90 Recommend approval of Resolution No. 57-90. G. (Resolution No. 58-90) This is a Resolution correcting the legal description contained in Resolution 7-90 which vacated and abandoned a portion of Lindell Boulevard and Germantown Road (Target Shopping Center/ Waterford). Recommend approval of Resolution 58-90. H. (Resolution No. 59-90) This is a Resolution amending Resolution No. 54-89 and Resolution No. 23-90 by extending the sun set provision contained in those resolutions until July 12, 1990. This action follows direction received at your June 5th workshop meeting and which time advisory boards were discussed. Recommend approval of Resolution No. 59-90. 1. AWARD OF BIDS AND CONTRACTS: 1. Annual Wrecker/Towing Services- Police Department- Zuccala Wrecker Services in the amount of $145,514 (no city funds expended- users will be responsible for payment of charges for wrecker/towing services). 2. North Federal Higway Irrigation- Community Improvement- All-Green Law Sprinklers in the amount of $23,590 with funding from 1987 Utility Tax- N.E. 8th Avenue and Federal Highway to AlA (Account No. 333-4141-572-61.29) . 9. Regular Agenda: A. REMOVED FROM AGENDA. B. Site Plan Approval. We have received a request for site plan approval for Delray Town Center, Phase II, a proposed 71,990 square foot retail shopping center, located north of Linton Boulevard approximately 630 feet east of Military Trail. The development proposal for this project consists of developing the easterly 9.68 acre parcel of the 20 acre Delray Town Center Development. This plan adds 71,990 square feet of retail uses to the already approved 101,417 square feet Delray Town Center Phase I (Albertsons) project. Within Delray Town Center Phase II, two 20,000 square feet Sub Anchor Retail shops; one 15,750 square foot Sub Anchor Retail shop; one 4,800 square foot Local Retail shop; one 7,240 square foot Restaurant; and one 4,200 square foot Bank, with drive through, are proposed. Previously the Commission had considered a policy change to eliminate out-parcels. As proposed, this site plan contains a free standing bank building. Staff has recommended that the bank building be eliminated. In addition, the Commission is being asked to act upon a request for Administrative Relief for 67 compact car parking spaces to be used for long term employee and a request for waiver of the - 3 - AGENDA REPORT Meeting of 6/12/90 Landscape Code to eliminate the five foot landscape strip along the west property line at the rear of the building. The Planning and Zoning Board at its May 24th meeting failed to make a recommendation (3-3 vote) . The Community Appearance Board at its March 28th meeting found the general development concept acceptable. At its May 23rd meeting the Community Appearance Board recommended approval of landscaping and elevation plans. A detailed staff report is attached as backup material for this item. Recommend consideration of site plan approval, request for Administrative relief and request for waiver of the Landscape Code for Delray Town Center Phase II. C. Conditional Use and Site Plan Approval. We received a request for conditional use and site plan approval for the proposed Bayside Manor Adult Congregate Living Facility (ACLF) to be located on the west side of Venetian Drive between Ingra~am Avenue and Galanger Way. The project is located on the west side of Venetian Drive just south of Nassau Street. This property is the former Marina Delray Hotel, Restaurant and Bar. The site was rezoned by the City to RM-15 Zoning District in 1981 at which time the uses were classified as nonconforming. The nonconforming use was alleged to have ceased for more than 180 days on two separate occasions thus terminating the use of the property ' as a restaurant and bar. The previous owner of the property b contended the use had not lapsed and the City entered into litigation to discontinue the use. Prior to resolution of that litigation, the owner filed for bankruptcy and the property was foreclosed. The new owner is seeking an amicable solution to the litigation action and wishes to sell the property for the establishment of an Adult Congregate Living Facility. The development proposal involves renovating the inside of the structure to provide 40 rooms with a total of 65 beds and one room for the resident nurse and overnight staff person. On site parking lot modifications, as well as, additional landscaping will be provided. Parking lot modifications and landscape improvements are also proposed for an off-site parking lot located approximately 150 feet north of the proposed ACLF site. An assessment of this project has revealed that elimination of the commercial use and any potential reestablishment is of paramount concern to both the residents of the area and the City Administration. The establishment of the ACLF use will achieve these goals. The ACLF use will contain a higher density than a conventional residential use but this will be offset by its reduced potential impact in terms of number of persons, cars, and offsite activities. The Planning and Zoning Board at their May 24th meeting recommended approval subject to conditions. The Community Appearance Board at - 4 - AGENDA REPORT Meeting of 6/12/90 their May 23rd meeting recommended approval of landscape and elevation plans. Recommend approval of site and development plan for Bayside Manor. D. Site Plan Approval. Consider site plan approval for a proposed Holsum Bakery Distribution and Retail Thrift Store to be located on the east side of Congress Avenue between Park of Commerce Boulevard and the L-30 Canal (Tract K, Delray Park of Commerce). On January 30, 1990 the Commission approved the replat of Tract K. This Tract was subdivided into three lots, two lots contained 1.551 acres each and the third lot 2.012 acres. The Delray Park of Commerce Master Development Plan designated Tract K as Service Industry. The property owner has made application to the City to construction a 6,650 square foot bakery distribution center on Lot 1. This proposed use is consistent with the Service Industry classification of the PCC (Planned Commerce Center) Zoning District. The development proposal is a 6,640 square foot bakery distribution center which will contain a 1,640 square foot thrift store and 16 loading bays. Customer parking for the retail use will be located in the front of the building. Employee parking will be located to the north of the customer parking area and just north of the loading bays located to the rear of the structure. Daily activities at the site will consist of a tractor trailer delivering fresh bread during the late evening/early morning hours and taking empty racks back to the bakery. In turn the 15 delivery personnel (drivers) will load their trucks with fresh bread in the morning and return in the late afternoon with "day-old" bread which will be sold from the retail store located within the structure. An assessment of this project reveals that it does meet the criteria specified in the "Standards for Evaluating Site and Development Plan Applications" . However, there are concerns with regards to locating the landscape material within the utility easement and the failure to accommodate the five foot landscape strip along the south property line. If a waiver is not granted for the required five foot landscape strip, replatting and site plan modification will be required to relocate the 25 foot ingress/egress easement. Similarly, site plan modification will also be required if the request to locate landscape material within the 25 foot utility easement is denied. The Planning and Zoning Board at their May 24th meeting recommended approval subject to conditions. The Community Appearance Board at their May 23rd meeting recommended approval subject to conditions. A detailed staff report is available for review in the City Manager's office. Recommend approval of site plan for Holsum Bakery subject to conditions and approval of request for waiver of the Landscape Code deleting requirement for five foot landscape strip along the south property line. - 5 - AGENDA REPORT Meeting of 6/12/90 E. Appeal of Commun~ty Appearance Board Action. On May 9,1990 the Community Appearance Board heard a request for a projecting wall sign to face Congress Avenue for Total Golf. At that time the request was denied based upon the applicant currently having two free-standing signs facing Interstate 95 and Congress Avenue, and a flat wall sign facing Interstate 95. Subsequently the applicant has requested City Commission review of this request. Total Golf does not front on Congress Avenue and therefore cannot have additional flat wall signage for traffic entering from Congress Avenue. A projecting sign would provide them greater visibility by traffic entering from Congress Avenue, they requested a permit to attach a projecting sign to their building. City Code allows one fixed projecting sign, with Community Appearance Board review, provided the sign does not extend more than three feet beyond the wall or exceed the maximum sign area of 30 square feet. Recommend consider of appeal of Community Appearance Board action denying a projecting sign for Total Golf. F. Approval of Selection of Architect(s). At your May 22nd regular meeting the Commission deferred action on selection of an architect(s) for the Decade of Excellence Parks Projects which includes design improvements at Miller Field, Veteran's, and Currie Commons Parks, pending additional information and workshop discussion. At that time, an evaluation committee consisting of the Purchasing Director, Planning and Zoning Director, City ., Engineer, a member of the Comprehensive Plan Open Space and l Recreation Element Team, and the Parks Director had performed interviews and recommended the following firms as ranked in order: 1. Currie Schneider Associates AlA, PA¡ 2, Wallace Roberts and Todd; 3. Edward D. Stone, Jr. and Associates; 4. Digby Bridges, Marsh and Associates; 5. SWA Group; 6. Shoup/McKinley Architects and Planners. On June 5th a workshop meeting was held, at which the top four ranked architectural firms, interested in this (these) project(s), made presentations. This item is on your agenda for formal action. The City Commission has the option to split the award and award the projects to more than one firm. Recommend selection of architect(s) for the Decade of Excellence Park pro1ects and direct staff to enter into contract negotiations. G. Golf Course License Agreement. Please refer to staff report from the City Attorney's office on this item. H. Waiver of Bid Irregularities and Award of Bid. On May 16th, bids were opened for the North Federal Highway Landscaping Project. Twelve bids were received ranging in price from $79,660.55 to $169,925.95. The City had estimated this project would cost approximately $120,000. All-Green Lawn Sprinklers was the low bidder ($79,660.55) with Tuttle's Nursery and Landscape second ($114,500) and Celebration Acres third ($121,803.94). At the bid opening All-Green came forward with a question regarding bidding - 6 - . AGENDA REPORT Meeting of 6/12/90 the unit price for Royal Palms. The specifications called for matched Royals with 12 feet of grey wood and 20 feet of overall height. Subsequently it was brought to staff's attention that a Royal with 12 feet of grey would would be approximately 25 feet in overall height or greater. All-Green's bid was based upon Royal Palms 20 feet in overall height, the average cost of which was estimated at $450 each. All other vendors submitted their bids based on providing Royals with a minimum of 12 feet grey wood. Prices ranged from $903 to $3,500 per palm. All-Green resubmitted that portion of their bid regarding Royal Palms to meet the requirements. Their new estimate for providing Royal Palms is $1,350 per unit. This increases the overall bid to $90,460.55 which is still $24,039.45 lower than the second lowest bid. Recommend consideration of waiving bid irregularities in the bids received for the North Federal Highway Landscaping Project and Award bid to All-Green Lawn Sprinklers in the amount of $90,460.55 with funding from 1987 Utility Tax- N.E. 8th Avenue and Federal Highway to AlA (Account No. 333-4141-572-61.29). I. Appointment of An Alternate Member to the Board of Adjustment. This is a Seat 4 appointment of a member as alternate to the Board of Adjustment to fill the unexpired term of Mark Krall ending June 12, 1993. We have received applications from the following individuals: Scott Bechtle Nadine Hart Milford Ross *Randee Golder , Lorraine Kasper Benjamin Warren Susan GraceyJón Levinson *Currently serving on Delray Beach Housing Authority. The expiration term for this appointment is based upon Commission adopted Local Rules currently in effect which state, "appointments for vacancies occurring on a board wherein the particular member has, for whatever reason, not fulfilled their entire term of membership on that particular board, commission or committee shall be for a full term". Subsequently, however, the Commission has discussed a policy change by which members will be appointed to fill unexpired terms, plus a full term in order to standardize Board appointments. In addition, at your June 5th workshop discussion was held regarding standardizing the appointment by making all non-building related Board appointments in July and building related Board appointments in August. Therefore, the Commission may wish to defer this and the appointments which follow pending finalization of ordinance changes or proceed with these appointments ensuring that provisions to bring these actions into conformance are addressed in future ordinance changes. Recommend appointment of a member to the Board of Adjustment to a term ending June 12, 1993. - 7 - AGENDA REPORT Meeting of 6/12/90 J. Appointment of A Member to the Human Relations Committee. This is a Seat 1 appointment of a member to the Human Relations Committee to a term ending June 12, 1992 to fill the unexpired term of Randee Golder. We received applications from: Sharon Bush Leo Kierstein Mark Shepard Dr. Jack Crespin Deri J. Ronis William Weitzberg Mary Haussermann Milford Ross Recommend appointment of a member to the Human Relations Committee. K. Appointment of A Member to the Historic Preservation Board. This is a Mayoral appointment of a member to the Historic Preservation Board to a term ending June 9, 1992. We received applications from: I William V. Ayers Sandy Jamison ¡' Julie M. Morgan *P. Richard Brautigan Ro.n.:lld --A-;---bu-sk: **C. Spencer Pompey Christine B. Bull ,.£-e nnie--Mae KeR-z.i~· Frank A. Rozzo Daniel H. Carter / Marjorie A. Miller J... I j * Currently serving on the Human Relations Committee. ** Incumbent. Is eligible and has requested appointment to another term. Recommend appointment of a member to the Historic Preservation " Board. L. (Resolution No. 55-90) A Resolution authorizing the Community Redevelopment Agency to purchase the closed gas station at 442 West Atlantic Avenue, located on the southeast corner of West Atlantic Avenue and S.W. 5th Avenue, owned by Chevron, U. S .A. i and the vacant parcel, (formerly the site of the Old Taxi Stand), locateâ between N.W. 4th Avenue and N.W. 5th Avenue east of and adjacent to the Old Georgia Town Tavern property which the City owns. This action follows discussion held at your May 22nd regular meeting and formalizes direction received. The two parcels proposed for acquisition, would become an integral part of the Peach Umbrella Marketplace Redevelopment project and will be incorporated into the modified CRA Redevelopment plan. Recommend approval of Resolution No. 55-90. M. Agreement between the City and Palm Beach County School Board. This is an agreement with the School Board to transport children in our summer camps (Community Center, Pompey Park and Carver Middle School), to various local facilities and field trips in the tri-county area. We will need three buses, four days per week for eight weeks, the approximate cost for this service is $12,000. The School Board charge is far below the rental rate of conventional bus service. In addition to those charges we will be providing automobile insurance on the buses at limits of not less than $550,000 (liability) , $1,000,000 (personal injury), $250,000 - 8 - AGENDA REPORT Meeting of 6/12/90 (property damage) . The approximate charge for this insurance is $4,000. Funding is available in Parks and Recreation Administration (Account No. 001-4111-572-33.97). Funding for driver's salary and mileage charges is available in the Parks and Recreation/Athletic Division Day Camp Program (Account No. 001-4121-572-34.02- $5,000); Pompey Park Day Camp Program (Account No. 001-4127-572-35.15- $3,500); and Carver Recreational Facility Day Camp Program (Account No. 001-4128-572-34.02- $3,500). Additional funding will be required for the insurance charges. Recommend consideration of an aqreement between the City and School Board to provide bus transportation for our summer camp proqrams. N. Cancellation of Bid Award and Re-Award. At your April 11th meeting the Commission approved award of bid to Regency Dodge, Inc. for a 3/4 Ton Pick-up Truck for the Streets. Department. However, when the dealer tried to place the order, the factory had stopped taking orders for this model year. Subsequently, four other requests for 3/4 ton pick up trucks were received. A RFQ was sent out and bids were received on May 30, 1990. Of those responding, Sherwood Pontiac- GMC Truck, Inc. was the low bidder. Recommend cancellation of bid award to Reqency Dodge, Inc. and award of bid for five ( 5 ) 3/4 Ton Pickup Trucks-(2) Parks and Recreation; ( 2 ) Public Utilities; and ( 1 ) Public Works/Streets- Sherwood in the amount of $55,600 with fundinq from Parks, Utilities, and Streets automotive budqets. 10. Public Hearings- 7 p.m.: A. (Ordinance No. 19-90) This is a Second Reading of an Ordinance amending the Code of Ordinances to allow directional signs for civic organizations, churches, recreational facilities, and residential subdivisions to be located on rights-of-ways. While similar provisions exist, this revised ordinance clarifies those provisions and enacts a new subsection to provide for directional signs in residential subdivisions. Directional signs for civic organizations, churches, or recreational facilities will be limited to a maximum of six. The number of directional signs permitted for each qualifying applicant, up to the maximum, shall depend upon the needs of the traveling public as determined by the Public Works, Engineer, and Building Departments. The signs shall be 8" x 30" and designed and installed in accordance with City specifications at the expense of the applicant. Residential subdivisions containing 25 or more living units may have a maximum of four directional signs describing the internal street system. The signs shall be limited to eight feet in height, with a sign face not to exceed 16 square feet or four feet in width - 9 - . . AGENDA REPORT Meeting of 6/12/90 or height. Signs with faces greater than four square feet shall be subject to review and approval by the Community appearance Board. Recommend approval of Ordinance No. 19-90. 11. Comments and Inquiries on Non-Agenda Items from the Public- Immediately following Public Hearings. 12. First Readings: None. 13. Comments and Inquiries on Non-Agenda Items: A. Commission B. City Attorney C. City Manager - 10 - MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER SUBJECT: AMENDMENT TO AGENDA REPORT - MEETING OF JUNE 12, 1990 DATE: June 12, 1990 The agenda report is amended as follows: 9r. Appointment of an Alternate Member to the Board of Adjustment. . . We have received applications from the following individuals: John Baccari Nadine Hart Sid Solloway Scott Bechtle Jon Levinson Benjamin Warren Susan Gracey Milford Ross The applications for this corrected list were forwarded as a part of your original agenda package. 9J. Appointment of a Member to the Human Relations Commi ttee. . . We received applications from the following: Sharon Bush does not have a current application on file and attempts to reach her have met with negative results. Her application is being removed from consideration. 9K. Appointment of a Member to the Historic Preservation Board. . . We received applications from: William V. Ayers Nadine Hart C. Spenser Pompey Richard Brautigan Cecil Jamison Frank Rozzo Christine Bull Marjorie Miller Rettig Talbot Daniel Carter Julie Morgan The applications for this corrected list were forwarded as a part of your original agenda package. · /:tv( [ITY DF DELAAY BEA[H ' if t" ~. . CITY ATTORNEY'S OFFICE 310 SE. '" STREET. S~:j, FEORJDA 33483 407/243-7090 TELECOPIER 407/278-4755 /f,Z--. ,..f.. MEMORANDUM ì/[Rl~©~O'¥J~iQ)~ JUN 0 8 90 Date: June 7, 1990 To: Ci ty Commission CITY COMMISSION David Harden, City Manager From: Jeffrey S. Kurtz, City Attorney Subject: Review of Contract Proposed by Delray Golf/Buy-Out The proposed buy-out contract requires a termination fee of $55,000.00; purchase of golf shop inventory; purchase of range balls; purchase of all consumable supplies at cost plus freight; purchase of licensees equipment in the _-?ffi0unt of $63,322.00; capital improvements reimbursements and paYments in the amount of $132,635.76, purchase of equipment in accordance with the installment sales agreement in the amount of $589,000.00 as well as requiring the assumption of obligations of the various contract referred to below. The agreement grants the City a credit in the amount of $71,322.00 to compensate the City for honoring all priviledges attributed to "lung cards", "flag cards", other charitable discounts and "rain-checks". There is no statement in the contract that such credit reflects an unweighted pro-rata share of this expense. - I. Obligations to be Assumed Pursuant to Proposal Our office has reviewed the proposed buy-out contract submitted by Delray Beach Golf, Inc., which provides that the City will assume the obligations of various contacts, and find that most of the contracts would require, in writing, acceptance of the vendor of the transfer/assignment. A. Vendor Contracts. More specifically, the ETA Tee Time System is a three year contract which would require the City to pay $1,000.00 per month, plus $2.00 per unsold subscription under 500 prescriptions per month. The Network Security contract is a five year contract which would require the City to pay approximately $160.00 per month. Further, the Network Security System contract requires the City to indemnify Network which the City can not legally do. It also requires the City to indemnify , · City Commission David Harden, City Manager June 7, 1990 Page 2 Network for any claims that may be instituted by third parties. This provision is unacceptable. The exterminating contract will expire in January and requires the City to pay $50.00 per month. The Tourist Information Channel contract for which a deposit in the amount of $750.00 has already been paid, commences June 15, 1990 and runs through November 15, 1990 and would cost the City $250.00 per month. B. Golf Pro Contract. The agreement provides that the City will assume the obligations of the employment contract wi th Mr. Hinton. This contract is a two year contract which expires December 31, 1991. The contract provides that said 90 days notice must be given to sever the contract and the severance must be for good cause. The contract provides a salary in the amount of $50,000.00, three weeks paid vacation, 3% of gross sales of the driving range (paid quarterly), 5% of the gross sales of the golf shop merchandise revenues (paid quarte~ly), 10% percent gross revenues of the golf school (paid quarterly), all proceeds from golf lessens, and repair of golf clubs, (which the Golf Pro personally conducts or repairs). Further, the contract requires a payment of PGA dues, PGA Group Health Insurance at $202.95 (quarterly), permits personal use of equipment at cost, use of facilities for himself and his family, expenses to two PGA merchandise shows a year and one PGA seminar a year. The proposed contract also requires the City to aSßume the obligations of the restaurant sublicense agreement and the restaurant management agreement. The sublicense and management agreements terminate on December 31, 1~94. The sublicense and management agreement requires payments to be made at an annual rate of $30,000.00 for the period between January I, 1990 and December 31, 1990. The contract with B.L.S., Inc. (Restaurant Management) further provides that notwithstanding anything to the contrary contained in the sublicense or management agreement that until the facility is remodeled, the monthly fee shall be $2,500.00. Our office has also reviewed a letter agreement, signed by Delray Golf, Inc. that requires, until the approximately $400,000.00 of renovations is completed that the rent shall be $1,500.00 a month, at which time the payment will then escalate to $2,500.00 per month. The.payments required to be paid by B.L.S., Inc. escalate for years two through five as follows: Year 2 - $36,000.00; Year 3 - $43,000.00; Year 4 - $48,000.00 and · City Commission David Harden, City Manager June 7, 1990 Page 3 Year 5 - $48,000.00. The only other monetary provision in the B. L. S, Inc. Management Agreement Contract is that B.L.S, Inc. was required to deposit a sum of $6,000.00 in an escrow account to secure a potential default; however, the contract provides that if there are no defaults within the first two years that the escrow will be returned. An assignment requires the prior written consent of the restaurant management firm. The restaurant management agreement provides that the restaurant will pay all fees, charges, and taxes, including sales taxes regarding the restaurant operation. The agreement provides that the restaurant manager shall give executive employees of the restaurant and golf premises, a discount of 50% on food at the restaurant. II. Installment Sale Agreement (Addendum D to the Proposed Agreement) .--- The proposed contract provides that the City will execute and deliver to Florida Golf Equipment, Inc. an installment sale agreement and note. Specifically, the proposed Agreement provides that the City shall pay to Delray Golf, Inc., the sum of $132,635.76 (for items of capital equipment, capitalized cost and capital improvements as set forth in Exhibit B) and the termination fee of $55,000.00 via note in 60 installments at 9% interest per year. It 15 questionable why the 15% overhead amounts in Exhibit B would be included in the amount to be financed via the note. The Agreement further provides that the City shall purchase from Florida Golf Equipment, Inc. all golf carts and equipment referenced in Exhibit C in the amount of $589,000.00 pursuant to an installment sale agreement which provides for 9% interest over a five year period. At Delray Golf, Inc. 's option, Delray Golf, Inc. may assign its rights to receive the $132,635.76 amount and $55,000.00 termination fee to Florida Golf, Inc. in which case all sums will be evidenced by one note. Our office recommends the following changes in the installment sale agreement and/or note: 1. Delete the word "contract" in the second sentence of Section 1.1 (b) for it. adds nothing to 'the meaning of the sentence. City Commission David Harden, City Manager June 7, 1990 Page 4 2. Section 1.1(d) should be reworded as follows: "The Note shall bear interest from its date at the rate of nine percent (9%) per annum computed on the basis of a 360-day of 12 thirty-day months on the unpaid principal of the Note until the principal amount of the Note is fully paid. 3. The City should have the right to prepay the Note, thus, a new Section 1.1(f) should be added which would read as follows: (F) The Purchaser may prepay the Note, in whole or in part, at any time without penalty or premium upon ten (10) days prior written notice to the Seller. 4. OUr office is uncomfortable with the language in Section 1.2 regarding the pledge of "Revenues," which term is defined in Section 5.8 to include ad valorem tax revenues. As you know, the Florida Constitution prohibits a city from pledging its ad valorem taxes beyond one y~ar without a referendum. The City could pledge either à-specific source of non-ad valorem revenue or use the covenant to budget and appropriate method, which the City used for its $500,000.00 Bond Anticipation Note issued on March 15, 1990. If the latter is chosen, section 1.2 should be rewritten as follows: The Purchaser hereby covenants to appropriate in its annual budget by amendment, if necessary, City Moneys in each fiscal year of the Purchaser, in amounts sufficient to pay the principal of an interest on the Note, as the same become due. Notwithstanding the foregoing covenant of the Purchaser, the Purchaser does not covenant to maintain any services or programs, as provided or main- tained by the Purchaser, which generate Non-Ad Valorem Revenues. To the extent that the Purchaser is in com- pliance with the above, the obligations of the Purchaser contained herein shall not be construed as a limitation on the ability of the Purchaser with respect to or covenant to pledge the Non-Ad Valorem Revenues for other legally permissible purposes. For the purposes of Section 1.2, the term "City Moneys" shall mean the moneys budgeted and appropriated by the Purchaser from not otherwise pledged, restricted or encumbered Non-Ad Valorem Revenues pursuant to the Purchaser's covenant to budget and appropriate such Non-Ad Valorem Revenues contained herein; and the term "Non-Ad Valorem Revenues" shall mean all legally available revenues of the Purchaser, contained in the Purchaser's City Conunission David Harden, City Manager June 7, 1990 Page 5 general fund, derived from any source whatever other than ad valorem taxation on real and personal property that are legally available for payment of debt service by the Purchaser. 5. Since the Note to be issued by the City will not be rated or credit enhanced, and since there will be no disclosure document regarding the Note, it is our recommendation not to allow free transferability of the Note. To effectuate this concept, the following sentence should be added to the end of the first paragraph of Section 1.3: Notwithstanding any provision contained herein to the contrary, the Note shall not be transferable without the prior written consent of the Purchaser. 6. Similar representations and warranties, as those contained in Section 2.2(b), (c) and (d) , should be made by the Seller. -.---. 7. Add the following to the end of the last sentence of Section 2.2 (e) : "...for federal income tax purposes." 8. The City should be allowed some grace period (15 days) before nonpayment under the Note constitutes an Event of Default under Section 4.1(a). 9. The events of default in the Note do not match the events of default set out in Section 4.1 of the Instal~ent Sale Agreement. This must be corrected. 10. The following phrase should be added to the end of Section 4.2: "...provided, however, that acceleration of the amount due on the Note shall not be a remedy available to the Seller." 11. In light of the suggested change regarding Section 1.2, Section 5.8 should either be deleted or modified to remove the reference to ad valorem revenues. 12. The following Legend should appear on the top of the Note. This Note is not transferable without the prior written consent of the City. 13. The term "City" or "Issuer" should be used rather than the term "Purchaser" in the Note. 14. The Note should be dated the date of delivery. City Commission David Harden, City Manager June 7, 1990 Page 6 15. Paragraph (a) on Page 2 of the Note should be deleted. since acceleration is something to which the City should not agree. 16. The paragraph under clause (b) on page 2 of the Note should either be deleted. completely or limi ted. by the phrase "to the extent permitted by law". 17. Section 215.84, Florida Statutes, provides that, if an obligation is not rated in anyone of the three highest rating classifications, and, absent an interest rate waiver from the State Board Administration, the average net interest cost of the obligation cannot exceed 150 basis points of THE BOND BUYER "20 Bond Index" published immediately preceding the first day of the calendar month in which the obligations are sold. If the Note was sold ln June, the maximum interest rate of the note could not exceed 8.75%. Similarly, if the Note is issued in July, the maximum permitt~ rate on the Note would have to be recalculated. Thus, the 9% contemplated interest rate is unacceptable. III. Sales Tax provisions of Proposed Contract; Miscellaneous Requirements: The proposed agreement further seeks an amendment to the license agreement wherein the City would agree that the the licensee was acting on behalf of the City ín regard to purchase of tractors and further requiring the City to pay sales tax and/or use tax due on the license fees paid to the City by the licensee. Legally, the City can not, by contract, shift the responsibility from the payment of sales tax from the licensee to the City. The City is exempt from sales tax and paying such tax would thus, not further a public purpose. Our office would suggest that this burden be assumed by the licensee. The contract further requires the City to cancel the $2,500.00 letter of credit; to make arrangements for transfer of utilities with the City to be responsible for reimbursement of all deposits. The contract provides that the City shall assume all licensees insurance policies and that the City will reimburse the licensee for pro rata payments. It also provides that if the City directs, the licensee will cancel all policies and insurance, however, the City shall then reimburse the licensee to the extent the licensee receives less than pro rata reimbursements of premium. City Commission David Harden, City Manager June 7, 1990 Page 7 In summary, it is our legal opinion that the City can not accept the sales tax responsibility sought to be shifted to the City pursuant to the contract. Further, the obligations which may be assumed by the City pursuant to the contracts named above require in some instances renegotiation to omit indemnification clauses, etc. and said agreements require the written consent of the vendors prior to the City assuming obligations thereunder. The installment sales contract should be reworded by redefining the definition of revenues to exclude ad valorum tax revenues and covenant to budget language should be inserted to protect the bondability of non-ad valorem revenues, other terms and conditions of the installment sales agreement and note including the interest rate, should be modified as suggested above. If you should have any further questions or concerns, please do not hesitate to contact our office. ~ift' ~<;{( -~- -- . ! ¡ I ..:.': . ..~: .- .. -.. '-. - u .! \ ¡ , Ii! í~ I, ¡ ; ¡ 'INSTÄ~ENT S1\LE Þ-GREEMENT ! I í ;! !./ I I I I ! L . . Thi~: rrl:s~a lI:lêrt Sale ÀgreeI\1ent, ,ertQrfid int~ as of the 1st ! ¡ day of June,: 19QO by and between Florl.da Gqlf Equ~pment, Inc., a I ¡ ?lorida ~or~o:ra~ion, (hereinafte;r- call~d the "Seller") t ·and The j City of .Dê~=a~ BQ~ch, FloridaJ a duly fonstitut&d municipal corporati,on updêr t.hQ lat.:c of thQ Stat~ of. Florida (hcrcÜnaftQr called the "Pur haser"). ! t' : i ; , : , ' \ I . ; !{ .! ~ !! ![ !! -ª :I ª' I I I ¡ i ~ J In c~na~~e ati?n of the pur~haße p~icelhereinafter men~ioned ¡ and agreed to b paid to the Seller by ~he 'Purcha~er, and of the covenant3', a'g:re ment~ and conditions hereinhfter set forth to be I performed', filif lled and observed'by the ~rc'ha::ser, the Sefler doe::s herc:by agrc:e 't 3~11 to the Purbho.ser,! andl the ?urchase~ hereby o.grees _ t? pu:rc ase: from the 3~ller, ;the I ccNipment and other i prope::ty ,l:x¡a.ted ð~ the Delray .Beach MUnictipal Golt' course, as I descr~be~ l.~..sc edu!e I (the "pr6perty"~, jttacheo her. eto and by I ì ~ererence made part hereor. ~ I I· t ; . I . I I. I , NOW TREMl'" R1! ,the purChaser in cOr\slaeration or -the premises herein cohta~he , dòes hereby ag ee wlt~ th Seller as follows: : . I ~ I ¡ I: I' ¡ ¡ . ; '; ¡ 1\RTI LE I [ 1 ! I PAYMwJ TERMS ¡ I se;~~on i. T~e pay;nent TeJms. Thle pa ent terms under this Installment Sål Agreement shall :be as foll ws: I I I ¡ I .... I I I.) I (a) ¡ purch se Þrice. The pprchaser shall pay to the Seller I as the purcha~e price of said Property, the film of. doll~rs (:$ I ~ !) in lawfµl moner Of' the United states of ;'.merlca.: Ii ¡ I; _ ¡ ¡ I (b)! ~.. . I The slfm O~ dollars: ($ ) ¡)er onth, shall be due and pa able by PurchasGr to Seller on;th~:l t day of July, 19ì'Q, and pn t G ~~t day o~ Q~ch and e'Jery rnonththQ QaftQr until ful y paid, o~ until "Final' PaymQnt Date," as:: het~i aft~r mGntionQd, hichever ofcur:s: first. Payments ! ~hall fir~t ,~Q applied to intGrts;t, thQn to ~~Rtrae~ principal. ThQ obliga.ti~n of ;thQ Purchase to ro.~ke I Ine:tallIllent Paymente h.~rQUndQ.r: &ht. ~l be ~videnced by a Promi5roryl Note (the "Note"), in tOG form set¡fo th in Schedul~ II attached hereto and by reference I made a part hbr of. t : l . i . 1\ i ¡ 1· I I I (¡ l (c) Plabe of ~a .ent~. The ·purchas.er s, all make all payments to seller o.t I' t e o.ddre~~ set. f rth for nQtices in Section ~.l hcr~of o~· o.t ~ ch 19ther addres as sHall I b~ 'set !orth on the I regi~trYfooks ainE¡dined by the purcha$er ds ·règ1strar. ! I ,I· ¡ EXHIBIT " " '1 I I ; .. , J \ ' í I I I . I I, I' 1 I ¡ II: I I f I ¡ I ¡ ! 1 ' ¡ I' ¡ , , t (d) :¡ _~ Interest shall be compqted at the annual rate i of nine perce~t (9tj, computed a~~ payab~e mpnthly in arrears over I I the life of tqi rn~tallment sale!Agreem~nt ~ntil the said purchase I . price iSlfUl~Y pai~. Interest Thall afcru~ as of June. 1, 1990. I II ~ i; . . (e) I Final Pa ent Date. The enti~p purcha~e pr~ce, together I :,;ith accr;ueq ..i ter~!ã.t, ~hall beJdue and payablg on JunQ 1, 1995 ' (thQ "Final Pa Qnt: DatG") . ! I I I! I I !. I ¡ I ;.. SQct~on 1. PavmQnt SourcQ. Tho Purcha~or ~~ not obl~gatQd to pay ~hQ ¡ pu ohasQ prico ovi4QnCod by this;: Installm~nt Sale Agreemen~ a~~ e ~ronissory Note or t~e irytereat thereon except fro~ legally ~vailable ::evenu~s ("~~venj1ee", as herei~after def1.ned),: a~d. t¡he ~ull fa1.th. an4 cred~~ of; thð Purcho:ser ~:s not I pledged f.,or ~~$pa~.ent of th~5 Ir:stallm,ent pale Agreement and the- . Note and thi3' In:stallment Sale Agreem'ent I and the Note do not constitu~e o'n: i deb~ednes5 of thy Purch~5erl'N'ithin the meaning of <'my con5tiblti al,' :sb1tutOry or¡ charter provision or limitation and it l~ eXpFe sly~ agreed by thisellet th~t it sholl never have the right to r quire or compel the exercise of the ad valorem tdxing pdwer: bf the'Purchaser, 0 taxation Vn any rorm or any real :.)I· personál 'pro arty therein, ro the. p,ayment or the Installment r payments :Or 6th r aDi.ounts due undlr this I¡ns~allment sal-e...~9ree!I1ent I or evidericed by the'Note. ¡ l I~ {s ~Jherragreed betwe n the ~rc aser and Seller that I this Instal~men Sale Agreement and the NO~Q and the obligations evidenced hereb anà thereby shail not èonstitute a lien upon any : property '!o{ :t e Purchaser inctuding, ~ without limitation, the Property¡~ut:s alII constitute a 'lien only on the Revenues, all in the mann~r rie~e··n p~ovided. I ; I' . ! '¡! !' : !: t. . Section L· Note Reqlster.¡ The Purchaser shall keep books f~r the r~gi~trÅtio~ of ownership,of the,Not4 and for the r~gistra- tlon of trarisfets of the Note. The Notè shall be transferable by the registe~ed owner thereof in! perso~ or I by its attorney duly authoriz~d ip:w iti~g only upon tpe b?ok~ ofit~e Pu~c~aser:and only I upon surrenper the,reof together ',nth; a "1r1.tten Instr~ment of I tt-ansfer·1 sat.Is actöry to the Purchasèr ~uly executed by the ' reqister~d 6..:m r 6r it~ duly 1uthori'zêd ,attornêY. U::>on the ! \ 'I' ". .. tran~fer of the Not~, the PurchadGr shall issue in the narnQ of tho tranb:fc:.ro.'o ..1 no No~o. I ¡ I· i : ! I f I! I. T~Q. P ch~cor may doom ~d trott tho PQr¡;;on in whoso nama tho Noto ..shat~ Q r~gistÐrÐd upon the books 4f tha Purchaser as the absolute 'owner f the Note, whet er the No~e ahall be overdue or root, for the:pu poeJ of reoeiving, payment of~ or on aooountof, the principoiof àn intere~t on the Hote o~ the same becomes due, and for all o\he;r: P o~es. All :sue paymen~e 8;0 1'Jð:de to the :registe- red o~~e~ or'up n it3 order ~hall bs valid ond .tteetual to satisfy J I! I.~, . ~ - - ! i I i I , I I ! . I ~ i [. . ,. . l'··. . ¡ ...... .' ,., ;. L .. ,.'. , J. I ,. . '..~, ',. .. .. . c...· r !, r ¡' '..' ......,...', .,. ..' " .,~,.- I ~ f I I I I . . I.! ;.. i ¡. I and diGohargG t Q lJ.ab1.1 ty upon 'the Note tq the extent of the BUIll or aúms SO paid. ! I ' I '.. . I ¡ , , ; ARTICLE II i ;' . ' I I ; . RB JIr'l'A'l'IONS W . I' ~ ' . , I . . Sectio~ . 2 1 Rêpr9~~nt<ltio 5: and warranties of the Seller. The seller repr ents and ~arrantG for the benefit of the Purchaser - ,:' . " ' as foll0"10: ¡ , ¡ I'! ¡ (a) ¡: vl· n~tal ent Sale A r~~rn¡ t. Thl~ InGtall~ent ~ale Agre~m6nt ~s r. v~id and binding o~ligation of tha Seller, entorceable:in Accordance ~ith its terns. ¡ ¡ ; '. I /'. I I! I '. -- , ,:." I [ I 1 , (b):; Sell '8 Titl . The Selller ha~ go?d ~d marketablG titla to the2roPé.rt I tree and clear rf all liene and enO.umbrano.e~, and is duly aut~orJzea 'to convey sue titl~ to Ithe'Sellðr. " l! I I ! I (c) J Disc nèr ot warrant es. ~he Pur~ha3er tickno~iedges thbt the., ... S~ll i~ sel11ng the'. Prope~y fa:s :i:s", and ;that the .. Sell,er ~S_ 0 W~y OR ~PRESEN1'ATI?N, ¡EITHER ~_?~PRESS OR . IMPLIE~, : .AS¡ ~ ~ VALUB I DESI(fN r CON9ITI9N, .MERCHANT~ILIT'l OR FITNESS FOR P TICULAR PURPOSE bR ~ITNESS :YOR'USE O~ ANY o~ THE ... ..- I" ~' ,. PROPERTY OR' AN PORTION THEREOF. In no evènt shall the Sellër be liable ~or l an incidental, in ireet, f sp~c1a~ or conseque1jt.ial damage i.n c?~n cti~.? with or ar~si~g o~t or thfs Inst~ll~entSale I Agreemen~ o~ t e e~1stence, furntSh~ng.;fun?t10n1ng or Purchas.er's use :of~e ?ro,ertYr or any ite~, product or s~rv1ce provided for in this Instal ment Sale Agreero1nt. ¡ I; '.' :. I I I . ( .' i' l .' : I . ~ . section 2 2 Representations and Warranties of the Purchaser. ,. ' . .. ,.. . . . ~e ~~~~~~fr .epr¡sents and waryants fqr ïe b¡neEi t of tre Siller (a.)'I. I a iza ~ I . .! Thie ~rc::haser fs a: duly orgàn1zQ,d apc:I a.li~.ÌY existing m1.þ1icipa~ ,:o*,or<¡ition un,der., the'l,:"ws of ~o statG 0 Flòrida and has,¡all requ1s1te power and author1ty to own and 10' atQ' it!; prope.rti~s and 'to carrY on its activities a~ noy con~uot d and a.G prQçently proP9sed!to be conduct~d., t . I ,! ~ i i I I : , . If. _ . . ~ (b).: Pen n LJ..t at~on. 0 the ~O~ edge of the purchaser, I there arc no rocèedin96 pendihg or threlten~d in any court or befóre tJ~ny gov rnm~tal. authority or arÞitr'atic?n board. or tribunal 'Whic~ i~ ~dv ;Sc?-! de~er1l1ined~ yould; m.atorifllly and 'adversely atfect thë con 1tJ..cn (f1nancial ·or otharwJ..QG) of tha Purchaserr or. tne'èx~~~erlce' r ~er5 or abil.tty of the þu:ro~aaQr to ~ntar~ into and pe~~o~ ~~ oh~igaticna undd~ this ~n~tall~ent SalG AgrOQ~Qnt, or tha p~édqê f the Rsvenues. ¡I :. .~.. I ¡ I J i ¡ ,,'> .;. - 3 - I I . I .~. . I ' I ! '1 ; . ; I ; : !,! i ' t I 'j ! I ,¡ I I i . _ ._ ¡ . , . :: ¡ , " . ( ! ~ " ,.. .. -r ¡ ¡ r ! ¡ I I , t I I I ¡ . (0): rnlsta ImQnt SalQ Â. raaÌD.ant u;¡1 al and Authorized. The Qxecutio~ an?d liv~ry .of this I1stallc4n~ ~ale:Ag~eement ~nd the I Nota, and thQCO sumnat10n of the.transact~ans prov~ded for ~n thie Installme'nt !;al~ AgraQmQnt and coritplianc~ by:the Purchaser with the I Dro..,iSÞion'~ of 'tì)i~ I'nSÞtallmont satQ AgrQomQn~ arQ within thQ powQrli: ! .. " It' ¡ of the Purqh,aser under and pUfsuant :to :ChaptQr 166, Florida "tatut"o.: ao "ndod, tho "'rhaoor'o tartor and Cod" of Ordinances (éo lectively, the Act") land have been duly and I. effeotiv~ly ~út orized by all ne ee8ary~act on on the part of the ~ " t ?urchmr,' I ¡ I J! I . , ( d)1 C f } i t i h L ~ i' 1 . . h ¡ om ance w t a·~. T e Purcl1a:le~ :5 ~n comp ~anCe Wl.t I , dll 1dvs;' ordin nces, government 1 rules =î regulations to which it is subject ~ Yh~ch dre mdter~d1 to i~s p operties, operations, I finances 'or sta us as a municipa corpoiati n. . r' I! ' I' I ¡ : ,- (e) 'Ta E em t Status or the Installrn nt Sale A reement and Note.' The pµrc aser aCknoWledge~ that it 1 the intention hereo! I that int~reS:t1 u der~ the terms o!~ this installment sale Agreement and the Note' no be 'included with, n the ~ross income or the seller for fede,tall fn ome f tax purposes. In ,rurtherance thereot, the i ?urchaser agree that it will ta~e all ~ctfon within its control ·!:21 ch is :nece'5s ry '1n order for fald Iht:.erést to remain excluded from gross in~o e for federal income t~xat~on purposes_including I the prompt fili g of Form 8038G wlth the! Internal Revenue Service, and shall' ddr in from taking a ct~on JhiCP. results I in such interest being ncluded in gross inco ~ , I; ! " : I 1 ; , " I i I I 'i I I ARTICLE III ¡ I ! -,-4-, ¡ I: ¡ : ! THE PROPERTY ! I I I I, i Section¡ 3. Possess ion. ¡rhe Purcha er may take and have possessi<\n 9~ ,Property on rne 1.\ 19 0 and enjoy the use '. thereof.¡ I ¡! ; ì I' ¡ . ': f / . Sectío~? passaGe of Title. T~tlei to the said Proçerty , , -, ¡ shall pas~ í1fu*e iat~ly to the Pur~haser upon tXQ~ution and pelivery ¡ 'i of thi~ In~t.ll Qnt·S.lo Àgroomo1t and the at. to tho s.ll.r. I: ¡ I' ¡ ¡ l ' I. I ¡ ~TICLE rv ¡ I I ~,..,. OF DB " I bB>lB . , '¡ t I , sec~io~ 4. EVent:5 of Def~ult Defined The following shall I be "Event;s c:f: DíefouJttl under thi:s Insta:llment Sale Agreement and the t;.e.rm:·Evr~t of qefault" and ::r~faultt· 3hb.ll ~eon wh~ne~er they are used in thi Inštollment Sal Agreement yone or more of the fOllciwin.g : ~vlert If! ' " I r . , . , . , ., ..' r : , ; " ,I ~ 'I ," - - : I : "f ' t . ~ : i I ., ,I . : I , '\f : .' 1 , l ,¡ '. , . , . r I' L - - .,.. '.: I _0 I (f r it -. -"_. .W :! . ¡ ¡ I ' ! 1 I I I :¡'; ¡ . ~ : i !. ( a) ': Purch .:ser i f 0..11 s to pay, on 0 before the due date or dates spe:cifri~d herein, any sum.(p) of :n~:mey;, i~cl~ding interest, ¡ payable ":1nd~r: he ter:m.:s of thJ.:5 rn.:stallment Sale Agreement or I secu:::-ed hereby i or ¡ J I ~ ¡ 'I ¡ I ' (b) j Pu~Ch ser¡ fails to o,serve br ertorm any other ot , Purchaser's dut, es,: obI igations 'or undérta ings hereunder ror a I i perloð or 3'0' ays! after notlc~ given! in accor<1ance with the ! prov 151005. or S ctlon 5.1 her eo!" or ! I· I I; ¡I : . " , (C)i If. kn ~¡arrant:y, repre~entatlbn, br other statè1Uènt: by I' the PUrchaser'o by an orr1cer or~agent or tfie purchaser contained I' 1n this rnstaÌl ent!saIe Agreeme t or any lrtstrument rurnisnect 1n compliance wIth or in rererence t this Ínst~llment salé Agreement 1s false 0. r ~is eadir.g in any ma¿erlal ~esp!'ct when made::. or ! '¡'! J ~! ' . (d) ~¡ lft la y m'aterial prov sion qf t is Installmeht Sale Agreemen~sh~fl at any time and or anYI rea~~n'cease to ~e valid an~ bindipg p~ ~e .~rcha5er, or:sh~l~ be d4cl~red to be ~ull and vOId, or ,th~ ~a Idl~y or enforce~blllty! Oft·thl~ Installment Sale I', Agreement shall be contested by ~he Purchas r; or .' . :: I ¡ II I : (e) I An; liE ent of Default" shall ocdur and be continuing under the ~ote.: I: ¡ I I I: .........- ' , "j I I . , Sect,ion; ~. Remedie on Defau .! Upon t;he occù:r:r~nCê and I continuancQ òf n Event of Defaul hereunder, Selle:- may tmrsue any , . . I I' t , .... . t'Gmedies provid d by law or undel the Note t Seller's option. .: r ì ¡ , 1 ¡ I, ¡ r : t , -~.' I ì [ ARTIJ:V I : ¡ I i ¡ ¡ ¡ : " ¡ ¡ MISCEL QUSI I i ,¡ I I SQction 5. Not leQs. Alll notieds 0 othQr communication horour.dor c~all bo '~ufficiQntly 'given ~nd ¡hall ba daQm~d givQn whon hand-dQíi~QrQd, mailod by I rQgistQro or CQrtifiQd mail, postage prepa~d. di~p_tchQd by oVQrnigh~ c~rriQr, or tra~smittQd __ by telecopy or imilar mea~ð of tflecommònic~tion and confirmed by rcgistere,d b~ ert~fi~d mail t the. f' artìe~ at the followi:1g Qddr~:3:3e.:3: II'! ¡ ; ,t ' ' Pur~h ser; City;of Qelray Beach, Plorida ! ¡ ci ty IMandger i ¡ 100 ~. W. 'First Avenue i. ! ¡ ~ Delray B ach~ Florida ~:3444 ¡. ¡ ¡ ¡ Tele10PY (407) 243...3?74 I I ¡ , : ¡ Selie: ¡t Florida olr, Equ1pmèn1:.;, Inc. , " ¡ ¡. c/o qilb rt; ~oldsta~i? : i ¡ 1808;Ritt.enhpuse Square ! ¡ Philadelp'hia~ Pennsylvania 19103 I I, ; ; ~ . ¡ -- ¡ I l - _: " . ':: i ' ' ¡' ¡ ¡ ; - ,.. - ' .- , , ,j ¡ ! I " : ," ' I I '.' I i I I : ,I I t !! i I : I , ! with copy to: Paul·E. hap.iro, Esq. ' ! : ¡ , shaPiro Bregman I ! ¡ 177 50ut Flagler Drive I' .1 ¡ I suite 31 East I I I ;, i west!palf Beach, Florida 33401 I : ! I Telecopy (407) 65'-6222 I I" : 1 J ': I Section: ~. sat sractlon or I stall en sale eeme t. upon the paym~nt :bY rqhaser or all 'sums a.~e h reunder and uþder tne Note and th~ ir~ll ~errorIDance a*d d1sc~argê by purchaser or all other urtde~'t:,ak:tngsi and obligations :or I purçhaser hereunder, purcha~e~:5~~lD ce~s~ to be obligated ånd ~eller shall þease to have rIghts ,und r thIS Installment salelAgrie~ent anct the Note. :1 ::! I ' Sectiori 5. Definition of Revenuei. Revenues shall ~ean all c,f the revenhås of the Purchaser ,!linC1Udinq ðd valorem tax revenues I I" . I . and non-ad val rem revenues of the PUrchaser der~ved from any source w~atso:e t.er I :which are Ie ally ayailable to make paY111ents under thlS Inst Ilment Sale Agre ment and the Pronissory Note. , I'! I I ~ " í l I . .. .' . . Sectlon 5. SavJ.nqs. The ~l}valJ.dJ.ty 0 enforceab.ll~ty of any provisiori or 'this Installment Sale Agre'emeft shall not affect or ~wpair the vaiif' ity' of any othe¡!prOViSion r term. .: I i ¡ I sectiori :5. Successors. 'e rig Its 'nd obligati"õfi~ of the Seller .s~alí: i ure; to the b~nefit of! and be binding \?-pon its r.espect~ve succ 5sors and ðS5J.gn . ; : ¡ ~ I I I : sec~iori t 5}6 !Merqer. Tbis In~tal ment Sale Agreement con5titu~es 'a, ftl1 ~nd complete ~nderst*ndi q between the parties relatlnq~to þ~e tra~sfer of th7 PFopert~1 an all aqreem~nts and/or ê"ontractsi. e~ th r oral or wr~ttQn, or otl1êr legal l.nstrUlUents n'lating ,to !:he pro~.QrtYI are he.r1eby sup!arseped upon thQ Q):;ecution 01 this Instal mont Salo Agreem¿nt. Pµrchacor enters into this Inbtallm~Dt 'S~l Àg~gQmQnt in fuil reliancelupon its own indepen- dGnt ir1V~r,;t~gation ~ and judg:nQnt a~ th 'dua condition~ of thQ ProPQrty : anqth;orQ :an~ no verbal! or oth'or 4groë;¡montc ':Jhich would modify or aí;fect. this Installment Sale Agreèment. ~ I! I í I I I Sectiorl s.r Date3. The u~e of the "dated a~ of" date herein " i3 for çom(e.~ni'ence' of referencte only i an1 the actu~l r date of I ~xecuti,:,~ h~.r;e f b~ eo.ch po.rtyl bereto¡ is set forth below t~e ì re:>Dcctl.Ve 5~gn ture o! each. I < . I \ : I' ¡. . , ,I t sec~lo~~. Governinq Law. This Inst Ilm~nt sale Agreement shall be ,¡'govern by the laws or the state t Florida. ¡ I I I ¡ i ¡ t ! f ' ' I II I ! . I I I í ' I I ¡ [ - - , ,j, I I . r II ! ! I i r I , , ¡. ,I ¡I - j I, I I, ' :i ' I'. I -,. -- - - i.J ,I !! ¡ I I I :: ¡ I ¡ I I' I I ! ¡ I t. I ¡', . 'I I· ¡ , I ' I ¡ ) I IN \oo{ITNE~S WHEREOF, each of the parties fereto has caused this I Instal1me'nt 'sa1 ~ Ag'reement to bel execut'ed by its duly authorized ¡ orricers ~nd: ~t~ corporate seal t~ be her;eun~o arrixed and attested I as or th~ l~t d Y Of June, 1990.1 ;! ¡' J : l I ! I . ¡ ¡,;. ; i ' I . I , !: f I ; ~1 I I I i .1 ¡; f I I , I, '! 'II CITY Or' D1!iLRAY BEl\CR, YLORIDl\ -".TTEST: ' ;;; as Pt1rchÅsér' ! :; ¡ I I ¡ · I;, ' I 'I ¡ '1: ~ I ,i i By: ¡ I City CH~r ¡ : I Mayor L I ¡ I ~ : I J " ¡: t Datel,'of txecution: I ( . ! !! ¡ i ! : r I I ; :! i FLOR~DA yeLY EQ\nPKENT, INC. 'I ATTEST: ¡ ; t as seller ~ I' · i t I ~ I 1 ¡ I ; ~ I .f ¡.; By: i I '-....... , , Authoriz'ed þfficer ¡ President " ' I lit ¡ I I'. ' t, !: Date: of foxecution: -, : i t ¡ : r I · I' I . : : . ---< I; ì ¡ .¡; I 'I I I' : ; : . I : I I . I· 'I , I, I ' , I t . , , , · ~. I ' I· , , !: ¡ I ' I \ I'; I ¡ ¡ ! -, 'I I ! ; I ' ¡ j I: ! I I í I ' ! . , ,: I I ¡ ,I ¡ . I ¡. j ¡, ¡ : ,! I ¡ . I I II, r . : It [' ¡ : ! t I ¡ ¡. I' ), I i I !' 1,/ I, .¡ '.)" f, -- , , . I . . I 1 ~ '¡ r ,:: " I, !' I' : ' t ; .'I! ! I I ! I ' .' ¡ ¡ \ ~- -;-- . ; I . -'. ~ I ' r I , I I '. ; : í ¡ ¡ ; ! t I i I ! : ' I i ¡ I 6CHEbuLB r I I r ; I ¡ I i î ¡ i De3cription, of Equ~pment ¡ l i I I I I I I I I ~ I ~ ; ! , ¡ t i i I I I i i ! I i i ! I , ¡ I i ! ! ¡ : , , j ( i I ' : , , I I ; f i I , ¡ I I ¡ -I I : ¡ I ! I \ : i I I I' I , \ I ' ! I I' ¡ : ¡ I I I r ' , ì , I : I i { ¡ I I ! ; í ¡ I ; : I f ' I l : I , ~ ! ¡ r I ¡ I t ; t ---- ,I ¡ , 1 1 I ! ! t :.1 I , ¡ I , I, i ¡ , I ! I ~ . ! , I : I , , I : : ! 'I' t .---{....- ¡ 1 i I l ' , : , ! , , I , ' , ~ I I ! ' ' I 1 ¡ I i j : I I i I I ' , I I ! I I I I , ; i ¡ ! i I : ¡ ! , I ' I t I : t I , I I ì ¡ , I i, , I ! I I I , i I I I t \ I ·1 \ ! \ ; I , I i I I ¡ ! ~í . t I , , j ¡ 'i , ,I' ¡ I I I : I , r I. ,\:: I A 1 . , I : :~i ,'-: I ; I .. ., . I f ' I. ! 'f I , " t f II \ I I , i I . '- - .. I ¡! If II I ¡J ¡ í I ' I 'I I . I j ';! ! SCRED LE II k It I . FO OP t I¡: I I PROMISSbRY NOT, I : I ¡ I , I ¡ , ì : f I:! Da t e : June 1, 1990 ¡ !' ! / ~; ~ I For i value reckived, THE C±TY OF :DELhy BEACH, FLORID1\. , a municipal coiporatîon (the "Purchaser"', premises to pay to the (>rder of ,FLOR¡ID~ .GOj.;P EQOIPMENT, II' INC., ~ Florida corporation (the I' "Seller"), ~p~ pr.1ncipal sum of. :! ($ ) , l togetherwitn ipterest at the rate of nine percent (9%) per annum ¡ ~nd other ~~o~nts! from the d~te her~of: as specified in the · Installme,:nt,sa:e Àgreement date1 as of¡June 1, 1990 between the Purchaser and t e Seller (the "I stallment al~ Agreement"). , l !. I " . : ~ l ~ - The ,sum ~f I dollar~ ($ I ) per month shall bê I' due and pay~bl by ,Purchaser on !he fi~st ~ay of July, 1990, and ¡ on the first:d y of each and ev~ry mo~th ~hereafter until fully i paid, or¡ un~il Jun~ 1, 1995, wlÜcheve~ firs:t occurs;. Payment¡; I shall fír,st þe applied to interest, thQn t4 principal. Intorest I shall be:compu ed 9n the basis þr a 30-dat month and a 360 day year, ac~ruir-q 9 of June 1, 199~, computQd ~nd payablQ_in arrear3 as prescribed ovel. No intQrQIiÞ't ¡;hall! bQ Paid in excè;s of the , , I" I r ' maximum ~at~ ål owe~ by thQ law~ of tho ~tatQ of Florida or of the United States~o A.!nerica. l ¡i I ' I ! I: I ' í I l (, ' Thi~ N~t? ~ Q~idQncQ of ~ho contraþt obligat~on de~cribed in . the Inst~ll¡~um Sa~e Agroomont. The ~rcho3er ~rrevoc.:1bly and uncondi,tí:onally promi~og a.nd ag eC3 tq make payments hereunder I çUf:iciQ~ tþlp y a~l of the prinçiplll o~ and interest on this Note ' . .0Rn anda~ ~~QIGam~ beoornC3 due. I It i~:exp~essly agreed that all I ,;,'f ini ti~ng,! ~otena~t3, conditio~~ and .a\Jreements contained in the I ¡, rn¡;tallme,nt Ib,a C Agreement execrted u~ co~nectlon herewith are I, hereby in~orpor ted by reference n this ;lnstrument as though fully I, Bet for-th ð t '1 ngth. herein. HJ...rever I '1n the event of confl ict I b~t·,.¡eez: '.:.~í3: t!0 e ~~d the Installment sa~e Arreement the terms d:1d 'I condit~on~ ofjt i~ Note shall corltrol. ~ ¡ , II I f Ii ! ; t { . . , The mon~hl payments aue hereunder ,~aytnot be prepai? by the [, Purchaser, in:~ ole'or in part, JithQut;the prior written consent i of the selle~: I 'I i ! ¡ I [~ I The folloW' ng shall be "Events of Defa It" under this Note: ¡ i I! l ¡ (a)l~he! chhser shall fa1l to Jay, on or before the due II date or datê~ pecified herein, I any s~m(s) of money, including ;.;"¡terest,lpaY¡b e u1der the term1 of thIs Nlte;, I (b) I,Any,b nkr~ptcy, insolvency or oth r p~oceQding ahall P9 institute,~ bí '0 with the consent bf the c as~r for th. purpo~Qg ,I· ¡ [' :' ' : ,j ¡, B 1 I , 'I , ·1; t I , ~ \. \ : ' ,\ : t l I I I I ., I I I i : . I I' I : I i ,.1 !, I I I' " ¡: ¡ I ! ~; ¡ t' ::: ¡ L I ¡ I; I : or errec~ln~;a omp~sitlon between the rc~aser and its creditors I I ot' ror 'Che: þu pose of adjusting the: clatms of such creditors I I I,' I t t I I pursuant-Co,an federal or stat sta u e now or hereafter enacted a:1ð sUch: pr:oþe din9s_ sh~ll ~ot ~ave b~en ~isrÜssed wit~in sixty - . (50) days alte th~ lnstltutlon of the ?ame; or " ' I! ¡ I! ! ! Ii, I . . , (c) I An,Eent ;of Default shall occ~r ~nd be contInuing ~r.der ,I the rnstàllmenl Sale Agreemer.t'l :; t, ~ i: ¡ 1 I ! ,I _ . I . ! : · Upo~ th~ ccu~rence and co. tlnuanpe of an Event of Default ! hereunder, ~eller may take any of the fqlloJing course~ of action: , 'I I r I \ Å' -\ : ! ¡!. I I .. · (a) I W~~hqut n,otJ..ce or dema ,d, Sel~er nray declare un.me~latP-1Y ¡ due and payaple a~ 1 s\lInS of mqney du~ ~1reur:der and ev~dênced hereby, ~og~çh4r w~th Interest ~hereon~ 11 WhlCh event th~ ~ame I shall be~.om~ lired~atelY due and',: payabl~ b the Purcha~~r without i further notice or d,emand; or! 1'- ,: I ¡ , . : ,i I I )': · . (b) -j: S~~11 may take whatev~.r other; action at la·.... or ~n equity ¡. WhiCh may aDpea neçessary or èestrabl~ to cÓllQct amounts then due : ånd ther~af~~r to þecorne due hQrQun¿9r¡ or ¡under the In::ltollment L Sale Aqre..e.mi~t r ~o enforcQ anY~toth~r Þ. fits right5 h~r.e.under or ~ thereund~r. , ¡ ¡ i I II· I I I ì \ - If ~rsh~s r s~all bQ in def ult, S~llef ::Ihall hav';the right, at Purchaser'>: e)(f]¡;~ns;Q to rotaiï an attor~y to 'lUake any demand, I òr othe~is4 'p otg~t or onforca litd ri~ht~ hereunder. pu. rchaser y~' hereiliy pro1:\u;o to pay all oost3 ond': e enses so incurred by I S~ller, inc~~d~ng çourt coats a~d atto~neY'5 fee or commission, and the f.ail.ur~¡ of Purchas~r to pro::nptlý p~.L. the same upon demand I ç;hal1J..n' it.S;J01'f cbnatitute 0 further! an1l adc11tlonal EVent of II' ~1- '1 f I ¡ . CQfault..! ¡ t ¡ . , I ¡., I ; '! t : . . A.11y ,fo~b,eð. ð.nc,e by the Seller, lnC,lua.tng but not lllHted to I the acce~tdn~~ y t~e Seller of ah¥ pa~~ntteqUired hereunder, or . a part t~ere~f, on/the due date I or su~se ent to the d~e date, ! ~hðll not b~ co siðerec1 as a waifer of the ight of the Seller to I E:)\Jr~ue any rkmecÌy h~reunder or uncter the Inst'allment Sale ~greement \ for existing bx3ubsequen~ Event~ of Default or for breach of any I other sUIi.ua:rl 0 di;rrerent term, covenant or condition h~rein ::>r ther2in on thè art or the Purchaser to be observed and performed. :' II ¡ I! I sell.'er ,m~ pu~sue any othe1; or further re.medies to enforce I seller' s .'rlghts under this Note _I ; I I \ I! I , I I t I ¡ I , Purcras~r her~by waive? p!jesentm~nt, protest and. darn and, i not~ce of¡ pr¡re t, ~emand, d~sh01or and¡nOn~ayment of th1s Nato_ I hi, . f - i .' J ' i . . T e ?~~I;S lp o,f this Note ~ sub]ec;t tOI the rQgu;trat on pro- V1S1.0na s~t p?r h ir the I~sta~l~ent satQ AfJrg~m'mt, ag noted on the registry.bo kg to be ma~ntalned by th~ PùrchacQr ~a regi~trar. '~ II ;I ! ¡ B 2 :I I ì I ' , I ¡ ) I I ] I ¡ , I ¡ I J I ' _ _ , I', ' ' t~ . .': I l , .' I I I ,I 'I ' ,:t I . ,I , ': 'I I i I I l: , : I I ' , I. This Note shall be govern a by the laws of the state of i Florida,l wh:ich laws shall be applicable n the interpretation, I const1:\.lctioò 'ar <1 enrorcement hereof" ! I 'I ¡ I ¡ : I - IN wrT~~S WHEREOl', the clty of bel ray Beach, Florida has caused t~is: fr ~ls~ory Note to þe exe~ute~ by its Mayor and the seal or ~al~. c ty ~o be affixe9 heret9 an4 attested by the City : clerk of saia c lty,l all as of the date set ,forth above. i: I I j , I IIi I I - I , ! !:: THE CIT OF DELRAY BEACH, FLORIDA , ; : I I I f I I I: , I \' , I· ¡ , , '¡ I; I: (SEAL) ; !:! By: ; ~ , : I: i I Mayor ' A"'.lTEST": I!! i " I I: , , i I! r I ! ¡ r i : : -! Ii ¡ ¡ \ I, ! I: ! I I' 1 : I, I ¡' : ¡ , !¡ It: I ,I' I r; t City Clerk Iii ! ~~_ ; , ',I 1 ¡ i . I I' I I I ; t t : ! I! ~ ; I . l ¡ . ! r, I . I 'I I' I ! -, , ¡ Ii, I ----<¡-:... : t ~ I 'j I I ¡ I ¡ I " ; \ . ~ ¡ , i' : i, I ¡ I I I ' ,ill ' , i I ¡ ; I i f ¡I, I ¡ \ I , \ ( I I I ¡ ; : 'I i I I I : I I 'I" ¡ ¡ I ¡I Ii, I ¡I t, ¡ I 'I I , ¡ ¡ ¡ ! I I I I I i I , I I I ' < I' B-3 " I I I I , I , ' t ¡ ¡ \ ; .n ~. . ._. . ._... ... Agreement this ____ day of May, 1990 by and between the City of Delray Beach, Florida (hereinafter referreð to as the "City"), and Delray Golf, Inc. (hereinafter referred to as "Licensee"). WIT N E SSE T H . . A. On November 3, 1989, City and Licensee entered into a License Agreement (the "License Agreement") providing for the Licensee to license from the City the Delray Beach Municipal Golf course (the "Golf Course"), effective January 1, I 1990. ß. /AS Of: Decemb~r 2~, ¡989 Licensee entered into a Sub-License Agreemeht, effective January 1, 1990, whereby it i - sublicensed the restaurant faci 1 i ties located at the ---Golf Course (the "Restaufant Sublicense") to Delray Golf Restaurant, Inc.; which in turn entered into a Management Agreement for the restaurant (the "Restaurant Management Agreement") with B.L.S. Services, I nc. , a Florida corporation (the "Restaurant: .' Manager"). C. Florida Golf Equipment, a Florida ...:.." I nc. , corporation ("Florida Golf") leased to Licensee the golf carts and certain equipment òescribed on Exhibit "C" attacheò hereto and used in connectio~ with the operation of the Golf Course (the "Golf Course Equipment~). .. r' ~.... ...,"." ....' ............. ..., "v' "'"'--:I....... oJ f f ~ 1..,1 I I'; UCLKA ¡ Dt,..t1. ... C¡ IY ATTORNEY [4J 002/003 D. The parties now desire that the operation of the Golf Course be assumed directly by the City, with the exception of the restaurant management and, therefore, the License Agreement shall be terminõted upon the terms and conditions set forth herein. NOW, THEREFORE, intending to be legally bound hereby, the parties hereto agree as follows: 1. ~i20 pf License Agreement. The License Agreement shall be terminated as of 8:00 PM May 31, 1990, which / termination shall be deemed effective as of June 1, 1990. City shall pay Liceosee a termination fee of $55,000 (see Paragraph lO(e». ~--- Thereafter, neither party shall have any obligation, responsibility or liability to the other under the License Agreement, unless such obligation is expressly set forth herein. ---'2. ~eof Inventory. (a) Golf Shop tn~en~Q'Y. The City shall purchase from the Licensee all of the inventory owned by Licensee located at the pro shop at the Golf Çour~e and intended for sale to the public. Inventory will be physically taken on the evening of May 31, 1990 and will be priced at the Licensee's actual cost plus freight. (b) ~ang~ Ball:¡. All range balls located at the Golf Course shall be purchased by the City at $.50 for each new range ball and $.10 for each used range ball. 0653B -2- 900530 -_.._-~_..~ v.. .. I." vwL"I.'-C\. 1 lJ'-,l.l.. --- ~II! A¡¡UKN~Y I4J 003/003 (C) 511pplies, City shall purchase from the Licensee all unused fertilizer, turf treatment substances and other chemica15 locðted at Lhe Golf Course, as well as all cleaning and maintenance supplies, gasoline and oil used in connection with the maintenance of the Golf Course and the operation of the golf carts, and all other consumable supplies. Chemicals, f ue 1, oil and supplies will be purchased at the Licensee's cost plus freight and open containers will be valued on a pto-rated basis. 3 . £L~~~lðying Pri~ilege5, The City ----7 acknowledges that the Licensee has, in accordance with the \ ~- License Agreement, entered into certain long term playing - arrangements with patrons of the Golf Course, allowing playing privilegeB through December 31, 1990; a list of the persons entitled~to such privileges has been delivered to the City, Licensee has also agreed to honor the "lung card", "flag card" ðnd certain other charitable discounts, anð has outstanding "rain-checks" entitling patrons to free play, The City has agreed to hOnor all such privileges, and in return the City Shðll receive a credit hereunder in the amount Of~~~ against all sums due to Licensee by the City under this Agreement. 4 . Res t aur ant J1a.n.agement .-A9 reemen~, The Restaurant Sublicense is hereby cancelled effective June 1, 1990 and the City hereby agrees to assume all of the obligations of Licensee and Delray Golf Restaurant, Inc, under the Restaurant 06538 -3- 900530 Sublicense and the~ Restaurant Management Agreement. As of I I , June 1, 1990, the þarties shall obtain from the Restaurant , [ Manager a document acknowledging thðt it will be mana9in9 the restaurant on behð~f of the City pursuant to the Restaurant Management Agreement, and that neither the Licensee nor the Restaurant Sublicensee shall have any further oblig~tions to the Restaurant Manager. 5. ; ~icen5ee's E~me~~ As of June 1, 1990 the ; City shell purchase from the Licensee the various items of computer equipment, furniture, fixtures, office supplies, office equip~entand othei personal property listed on Exhibit I "A" hereto. The pu~çÞase price for such items shal~ be $63,322. --.. 6. Licensee A9reement~. As of June 1, 1990 the City will assume the obligations of the Licensee unðer those agreements identified on Exhibit "E" attached hereto. 7 . Capital Improverl)ents. In accordance with the License Agreement, the Licensee has provided certain items of capital equipment, incurred certain capitalized costs in connection with obtaining the license and performed certain capital improvements to the Golf Course. The items of capital -'.~ equipment, capitalized cost and the capital improvements ar~,~ set;. forth on 'Exhibit "B" attached hereto. The City shall ;~' ....,.~> reimburse the Licensee for all of the items set forth on -~,- ." ......, ').,,:'.. ,:' Exhibit "B" in the sum of $132,635.76 (see Paragraph lo(e,~)':~~i~~;~:;;~ ,.:~;"¡,,,,,,\,j("\<,~-:,~. " 8. Florida Golf~.Equipment. As of June 1, 199o.Lþj1~',;;f.~~f~,:;: ,:'''~':~;~~~~'~-~cii;~;~~ ;~ City will purchð:se, on an installment basis, all of the,~,~;tif'.Jw~t.:~,' ..;::r~:jS"~-:i:: .', .e~,"'·'~'s: .;_.,. ";:. ';: é';::', _:i-;·. "",,,', . '.1-:.: 0653B -4- 900 S 3 ó:~:;~:,rl)\;;~,,;:~t\ . -~~11.*1·tr i carts and èquipment utilized in connection with the operation of the Oolf Course owned by Florida Golf Equipment, Inc. (8S shown on Exhibit "C" attache~ hereto), in accordance with the terms of ð certain Agreement (the "Installment Sale Agreement"), a copy of which is attached hereto 85 Exhibit "D". The City recognizes that Florida Golf Equipment, Inc. is owned by the principals of Licensee and that the City's agreement to~purchase the equipment is a material inducement to Licensee to enter into this Agreement. 9. Amendment to License A9reement. The License Agreement is/herebY, amende\:! tol provide that: (a) As of January l~ 1990, Licensee was acting on behalf O}/~heCÎ-t.y with ~98rd to b.he ytí{chðse \'P~- /' ~ / ~ ~ tractors/~hown on ExhibIt "B"; and /, i ' í (b) In the event it is determined that any State r \ of Florida sale~ or use tax is due on the license fees paid to the City by Licensee, City shall be responsible for :such payments. 10. Actions to be taken by the Parties ~t t~ Q.l.Q.rim1. The closing of the trensaction contemplated by this Agreement shall take place on June 1, 1990. In order to effectuate the transaction contemplated, the parties will take the following actions: (8) The City will execute and deliver to Floriõð Golf Equipment, Inc. the Installment Sale A9reement, as well as the Note attached thereto. 06536 -5- 900530 ¡ I I (u) Florida Golf Equipment, Inc. will deliver to the City a Bill of Sale, and any other appropriate title document5, xelating lo the equipment subject to the Installment Sale Agreement. (c) The City will pey the Licensee for all items described in paragraph 2 above, and for the purchased items of personal property set forth on Exhibit "A" after deducting from the sums due therefor Lhe sum of $71,322 as set forth in Paragraph 3 above. , (d) The Licensee will deliver to the City a Bill of Sale, and !ny other ðpp~opri~te title ,documents, transferring all of the personal property set forth on Exhibit -......--- "A" to the city. (e) The City will pay the sum of $132,635.76 to the Licensee as set forth in Paragraph 7 above and the sum of ,"". ;.-".." $55,000 as set forth in ?ara9raph 1 above. The payment by.t.,he.,.:,.';: _.~-~..... -:' City of both of these sums shall be evidenced by a Note p8Y8ble~ .. :....... in 60 equal monthly .installments of principðl ðnd interest ,.. j >. computed ðt 9\ per ~nnum. At the option of the Licen~ee, it:>·, I may ass i gn its right to recei ve such sums to Florida Golf in ,___.;...> . 7,':¡-·."n,: which case the sums tlue under this sub-paragraph shall be ðdded~- to the Nvte described in sub-pðrðgtðph 10(a) above. '~:~;F~-~~'> " (f) The City will return to the Licensee or NCNa, aloog with ð notice of cðnuellation, the $250,000 of Credit issued by Ncue and dated Decemb~r 31, 1989 (as '-, amended), securing the obligations of Licensee under the ,Ji~~~- '-~-~' I !f;f{~~" I' ~tt#. - ~i¥' .~~;~~. :#]é~ 06538 -6- i;¿~;,~1 900530 !i"t,!< .4 :"'''!'f-' .. - ~ T,icense A9reement. (9) The Cil.y and Licensee will mê\ke ~rr8ngements to transfer the telephone and Flotida Power & Light accounts to the City's name. Licensee shall ba responsible for all bills through May 31, 1990, and the City shall be responsible for ðll bills thereafter. ¡r there ale any deposits relating to such accounts, City will reimburse Licensee for such deposits. (h) At City's oplion, City shall assume all of Licensee's insurance policies relating to the Golf Course and I relateå personal property, in which event City shall reimburse . Licensee for/anyp~yments ~rev!ous~y made by Licensee applicable to any Pletiod or time after May 31, 1990. In the ~--- event that City so directs, Licensee shall cancel any or all such policies of insurance and City will reimbur~e Licensee to the extent that Licensee receives less than a pro-rata reimbursement of premium. (i) The parties shall execute mutual releases, releasing each other from any and all obligations and/or liability incurred prior to the date of this Agreement. (;) The parties shall execute such other documenLs as are deemed reasonably necessary by either to effectuate the termin-al:ion of the License ^9reement and the transfer of the operation of the Golf Course to the City, as 06538 -7- 900~30 " I described above. IN WITNESS WHEREOF the patties hereto have e~ecuted this Agreement as of the day and year first above written. Attested By: CITY OF PELRAY BEACH, FLORIDA --....... - City Clerk By:... Approved ~s to Form, _,_--1____, I I By: -.....- I --....-..-....-----. . .-..-- ----~ City Attorney DELRAY GOLF, INC. -...... " 8y: __ " -"'" -.. . ~'!~ .. ~ ... . --;.;.. -, ..... .~..' ~. ,......,.... DELRAY GOLF RESTAURANT, INC. ._ .. . ,. ~ -.- ...- 0- ",-;;,,~:,;t" -,,- .4',_ -,,_....~, ...... -:..... ::-. "....~~_..~'~J ',";.- By' ",:~~~t~E; - ..,... -.- ...- . ." :~:... y. -~- -~~1'. ~:.,(~~~-;; " ...;?..?o"O",:'<. ..... ,'. :!~ FLORIDA GOLF EQUIPMENT,'INC~',.""f';'" "~...."':::"'~ -r-:-" -- -- ".' ;~. ,>"". .1 ..._ 8y:__.._._.. 06535 -8- 900S30:,~' ;t~1 , :;·~:r·~~·'~~~iitt. EXHIBIT A ---_._~.----.~-~.---_.------~_.------~--~--_._----------- , 'rURNI'l'URa/O!'FICE f;gUIPHENT .___.·___________M._M_._~_ TYPEWRITBR LAMP TYPBWRITBR CART OFFICI FURNITURE CHAIRS ANSWBRING MACHINI FILS CABINETS CALCULATOR TIM! RICORDBR COpy MACHIN! STATIONERY SUPPLIES MISC. OFFICI SUPPLIES PRO SHOP ! .._~--_.._- I PHONIS PHONI SYSTIM PA SYSTIM .~.-- WINDOW TREATMENTS CARPETING CABIHBTS BAG RACKS rIal BXTINGUISHERS lIRS'!' AID XITS STOCKING KI'1'8 MIRROR PULL CARTS DRIVING RANGE .........---------- RANGE BASK!'!'S UTILITY ÐASKI'rS TRACTOR/BALL PICKBR COMPUTER SYSTEM/SUPPLIES -------~~----~---~--~--- GOLF COURSE ----------- FLAG POLES TEE MARKERS WATER CONTAINERS AND FOUNTAINS CUPS HALL WASHERS WASTE BASKETS YARDAGE MARKERS HOLE CUTTERS / I I / --- i .' , . .P,--~-· , . I ....... -- I ! i ~,.", . I j I ! ¡ I ;.. .~. - ~: N .,. In co f"'I 0 In "'"' In \D .... .... 0 ..0 C-- r-- t"-o 0 0 In \Þ C'\ .... 1.0 ex) t' 0 ,.... f11 · · · · · , · · · · · · , . 01 tt) ..,. 0'\ f") N \Ø '" If'I ('I' .. I.D tr"I 0 Lt"\ E-cl 0 0 'It' 03 Ø'\ In I.Ø <0 (\') <0 0 r-- 0 "" C'"- ..,. QQ .. ,., ID .,. ro') N ro') N .-4 l¥' \0 M .. .. .... .. M .. .. .. .. .. .. .. .. f"4 \Ø ('I') N 0 M It1 ("') .-4 Il't N ~ M .,. "'" f"4 "" .. .,. ~ 10 ~ ... ... M r-f (/). Ø'\ ('I') In f"4 0 N ,... ,... f") f"4 r-- N ~: ro- N ... 0 .... re- f"'4 t"- al ID t"') t"') · · · · · · · · , , · · ...~: .... 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' :3 -.~ ,~- ..........-_..,,~~ ~ ~ ..... N N ~ ..... yo4 yo4 ..... yo4 rl r4 .... N N ~ 0 '\~::Î5:'.-:.".:I. '... : ~ ø .','L~·Î1F X"'· '.~; ¿f,~".r:i" ." -.-..-..''''., ',' . ',. -,. ..' ..... -. ~~þ . -.,::::t+(.-\~ "~"', . :.. ~ u u ~ ~ ~. ~...':~j,.,~~.~, ~~ ~ . Ü Ð. ~ .,:"".':.;..;"'" Hen·" . . ,"'. c.',,, ';f', . ·:;:~_F~,~:·~<..:r.,;.:,~~,!t, . "'~' . ~ ~ ~ ~ ~ ~ ,...;,i.·..:..1'...~.fik.'...;.i....~.,'.£;:.:7J4.;1,. ";..' '... o 0 ~ ë4 ~'~"'i:" ""j;,;","f,.,. . Vt to ~ tI) U ,c; '. .,:.. ;.~,~,~... ~. ' ·";":~¥.,'Ž:'....... , . ..,~~. '. . EXHIBIT E . CONTRACTUAL OBLIGATIONS ________-.___M__~_____. I I 01 1990 [PRE-PAID ORE ENS FEE PERMITS ......-..... 0 XETA ,TeE TIMB SYSTEH " 1:':0,1' o 'NETWORK SECURITY SYSTEH"š;~r ~"':..$ ( .~~ > i;·~·;~~ll~· O.!;MA BXT£RHINATÍNG CONTRACT'¡j;,;!: 0" LUNG. !!'CANCER AND FLAG CHARITY CARDS AND RAIN CHECKSï~¡~ ; , , '~.,::·H:; o't TOURIST INFORMATION CHANNEL . ·i;~;Æ;·~ , . . ··',..:f' ".'-¡~'.~"'- [.;:i·'.:,;~h~ o E:HPLOYMENT¡ CONTRACT - R. ~INTON ~t.~r ~-""'-.... / I , , " , .. ------. ¡.~ -. i .. ~ ..~_.. ,',.....:: .-,':,;:, . ,~,-'. MEMORANDUM TO: DAVID HARDEN - CITY MANAGER FROM: LULA BUTLER - DIRECTOR, COMMUNITY IMPROVEMENT ~ SUBJECT: VARIANCE REQUEST FROM CAB'S DECISION DATE: JUNE 6, 1990 BACKGROUND Attached is a request from Sign Graphics, a sign contractor representing Total Golf, located at 955 S. Congress Avenue, Bay 116, for Commission review for a variance following a denial by the Community Appearance Board on May 9, 1990 for a projecting sign. The Board felt the business had 3 signs, which was sufficient. Total Golf has tenant panels on the free-standing signs facing 1-95 and Congress Avenue, they also have a flat wall sign facing 1-95. (Minutes from CAB meeting of 5/9/90 attached) As the business does not front on Congress Avenue, they may not have additional flat wall signage for the traffic entering from Congress Avenue, so they are asking instead for a projecting sign on their business, which could be seen when entering from Congress Avenue. RECOMMENDATION Staff is recommending that the Commission consider the request from Total Golf for a variance to allow a projecting sign. LB:DQ D/6 A:TotIGolf.CC q-c: r-, e u NINUTES: communit~ppearance Board May 9. 1990 Page 8 consistent. Mr. Wilsher questioned if there was a blanket approval for the area. Mr. Sanzone offered to verify the blanket status. The colors for the sign are ivory and brown. Lengthy discussion ensued. It was noted by the applicant the sign is consistent with existing signs and the cabinet is existing. However. the members did not feel there was any consistency and did not have any information as to the blanket. After discussion, Mr. Marsh moved to approve as submitted. Seconded by Mr. Eckerle with the vote as follows: Richard Eckerle Yes Ann Pearson No Mark Marsh Yes Will iam W ilsher Yes Mrs. Pearson did not feel the sign was harmonious with existing signs. 2l. DAN BURNS OLDSHOBILE 90-6000 2200 SOUTH FEDERAL HIGHWAY BRIGHT IMAGE 1 FREE-STANDING SIGN, WHITE NEON Represented by Hark Little. The sign will be custom built. The applicant was unable to use a variance sign since due to the distance of the property to the road. The sign is at 181. The background is red; the copy in black and with a white outline. Hr. Harsh moved to approve. Seconded bY~ Eckerle with the vote as follows: Mark Harsh Yes Ann Pearson Yes Richard Eckerle Yes William Wilsher yes ,22. TOTAL GOLF, '. _ 90-5935 . ,".,- ...·955 SOUTH CONGRESS AVENUE~""BAY 116 SIGN GRAPHICS OF FL EAST 1 FIXED PROJECTING SIGN . Represented by Gus Wunsch. The applicant stated he could not have a flat wall sign and was proposing a projecting sign which he could have. The members were not in favor of the projecting sign since they did not feel the building was designed for such a sign. Hr. Eckerle stated the applicant already has three (3) signs. Hr. Eckerle moved to deny the app lication. Seconded by Hrs. Pearson with the vote as follows: Ann Pearson Yes Richard Eckerle Yes I,t ark ~t a r s h yes application denied \ William Wilsher Ïes I I 23. ED ~!ORSE CA.DILLAC 90-5936 Sign~!oªRrhics COMPLETE SIGN & GRAPHIC SERVICES May 15, 1990 City of Delray Bch. Sign & License Dept. 100 NW 1st Ave. Delray Beach, FL 33444 Attn: Joyce Desormeau R~: Projecting Sign - Total Golf Dear Joyce, . In regards to the projecting sign proposed for Total Golf, located in the Delray Commercial Center 955 So. Congress Ave. Bay 116. The sign was re- jected at the C.A.B. meeting on ~~y 9, 1990. The sign is allowable within the Sign Code and we are going to appeal th~ decision. Since the sign will meet Code we would appreciate any help in the matter and ask for it to be placed on the City Commision Agenda at your earliest convenien avance for your cooperation, 1.\(.'1 365-243-3349 r. S,W. 10th ST, DELRAY BEACH, FL 33444 3Eb---)'Jtt~7-t:-1 - " - . - -- < ~ 0 (-"\ -' MEMORANDUM To: Lula Butler, Community Improvement Director Thru: Jerome Sanzone, Chief Building Official From: Joyce A. Desormeau, Occ. Lic. 6. Sign Admin. ~"L/ Date: May 18, 1990 Subject: TOTAL GOLF SIGN VARIANCE ----------------------------------------------------------------------------- Attached is a request from Sign Graphics, a sign contractor representing Total Golf , 955 S. Congress Ave., Bay 116, for Commission review and variance following a denial by the Community Appearance Board May 9, 1990 for a projectin& sign. The Board felt the business had three signs, which was sufficient. Total Golf has tenant panels on the free standing signs facing 1-95 and Congress Avenue, they also have a flat wall sign facing 1-95. As the business does not front on Congress Ave. , they may not have additional flat wall signage for the traffic entering from Congress Avenue, so are asking instead for a projecting sign on their business, which could be seen when entering from Congress Ave. . r " . [ITY DF DELRAY BEA£H ~:~, );~~~~~~~~':' CITY ""TORNEY'S OFFICE 310 S,E. 1st STREET, SUITE 4 DELRAY BEACH, FLORIDA 33483 HI 407/243-7090 TELECOPIER 407/278-4755 MEMORANDUM Date: June 7, 1990 To: City Commission David Harden, City Manager From: Jeffrey S. Kurtz, City Attorney Subject: Golf Course Contract - Default provisions - Bidding Requirements I. Review of Termination/Default Provisions in Current Contract Our office has reviewed the current golf course contract which provides, among other provisions, that the City may terminate the agreement for cause if: "the licensee fails to perform any term or condition I of the agreement and the failure to perform is not : remedied by the licensee wi thin thirty ( 30) days t aft~receiving notice in writing of such default, or in cases where remedial measures may take longer than thirty (30) days, satisfactory remedial action must begin and be consistently undertaken wi thin thirty (30) days after receiving notice in writing stating the nature of the failure of performance and the City's intention to terminate if not corrected and which remedial measures must be completed wi thin a reasonable time as set forth in the notice from the City"; or any failure to perform was a monetary default or other material default and such monetary or material default was the subject of two written deficiency or default notices from the City within the previous twelve (12) months". The default provision further provides that the default provision will not apply when the licensee's failure to perform in a timely manner was caused by the licensee's inability to secure necessary governmental permits after a reasonable effort by licensee to obtain said permits, or other causes beyond the reasonable control of the licensee." 'tG · r \ City Commission David Harden, City Manager June 7, 1990 Page 2 A. Liquor License. In light of the foregoing contract requirements, as long as the licensee has diligently pursued the transfer of the liquor license, failure to have obtained the license at this time would not be deemed a default under this agreement. Our office is currently investigating whether the licensee has diligently pursued the transfer of the liquor license. B. sales Tax. Article 21 governs taxes and fees on page 14 of the agreement and specifically states that the licensee shall pay: "all license fees and state and city excise taxes and occupational taxes governing the business conducted on the golf premises; pay all taxes on personal property of the licensee and the golf premises; and shall pay all applicable sales taxes attendant to operations hereunder." (emphasis added) The contract also has a general provision requiring the licans.ee to adhere to all applicable State and Federal laws. The licensee has failed to pay the sales tax as required by this agreement. It is our office's opinion as con- firmed in an informal opinion by the State Department of Revenue, that sales taxes must be paid pursuant to the contract, and applicable law and that the responsibility of payment rests with the licensee. The default provisions of the contract provides that when there is a monetary default or other material default within a twelve (12) month period, which was the subject of two written deficiency default notices that the City may terminate the contract. Mr. Goldstein was provided a letter dated February 20, 1990 informing him of the requirement to pay sales tax. It is our office's opinion that the February 20, 1990 letter constitutes one defi- ciency notice and the failure to pay said sales taxes is a material default. Therefore, the City Commission may direct staff to provide an additional notice requiring payment within a reasonable time (7 to 10 days) and a failure to remit said payments within the appropriate time frame will result in termination. I r "- City Commission David Harden, City Manager June 7, 1990 Page 3 C. Procedure for Reporting Capital Improvement Values. The contract in Article 4, Section 1408, "Value of Capital Improvements", requires that the licensee seeking credit for capital improvement projects completed by its staff, will provide the City with a statement indicating the amount of time laborers spent working on the project, the rate of the laborers pay, and the invoices indicating cost of materials. The City will then add the cost of materials. Robert Barcinski, Assistant City Manager in his memorandum dated June 6, 1990, (attached hereto as Exhibit A) indicates that the City has not received the documentation regarding the rebuilding of benches; the restoration/ repair of rain shelters; and for signage improvements. While standing alone, this deficiency may not be deemed a material breach, it may be considered material in concert with the failure to pay sales tax. The contract requires a notice of default, giving thirty (30 ) days to correct this deficiency. The City Commission may direct Staff to issue a letter of default requiring that said documenta- tio~-be provided within thirty (30) days or there will be a termination of the contract. D. Maintenance. The contract provides that disputes concern- ing maintenance standards, as defined in Exhibit B to the agreement, are to be referred to the City Manager. The City Manager's decision shall be binding upon all parties. Robert Barcinski's memo addresses his evaluation of course maintenance. If the City Manager determines that the maintenance responsibilities have not been met, the lack of maintenance, depending on the degree, could constitute a material breach, which upon notice of such default, could be grounds for termination. E. carpeting and Air-Conditioning. Further, the contract provides that the licensee accepts all properties, facili- ties and equipment "as is" providing however that the air-conditioning system will be in good operating condition on June 1, 1990 and that the City is responsible for major repairs exceeding $2,500.00. The contract requires the licensee to be responsible for carpeting as it is responsible for repair and replacement of all golf course properties. Thus, in summary, it is our office's position that failure to pay sales tax is a material breach and the failure to t , "- City Commission David Harden, City Manager June 7, 1990 Page 4 abide by the other terms of the agreement referred to above, in a cumulative sense, constitutes a breach of the agreement. These defaults, however, if cured wi thin the time specified above would constitute compliance and the City could not terminate the agreement. The contract does not provide for termination without cause. II. Effects of Termination or Buy-OUt. If the contract is terminated for cause or if the City accepts a buy-out as proposed, the City will require the services of a management firm if it deems an outside management approach is more appropriate than having City Staff manage the golf course. Bringing in a management firm will require time for negotiation of an agreement. If, instead, the buy-out is accepted as proposed, additional time will be required to obtain the written consent of various vendors and/or managers of the restaurant to the assignment of obligations and responsibility by the City. Some of the contracts will require renegotiation to eliminate indemnifica- tion clatrses, etc. III. Request for Proposals. Our office has reviewed State Statutes and City ordinances regarding the necessity of going out for an "RFP" for the selection of a new management firm. While there is no statu- tory requirement to go out to bid, the City's ordinance requires competitive bidding for contracts requiring expendi- ture of amounts over $10,000.00, where price considerations are paramount. The ordinance however, does not absolutely mandate, (and has been interpreted in the past to not require) competi- tive bidding in a personal services type of contract where expertise and "management fit" are the prime considerations. Therefore, while our office would recommend that the City's ordinance be clarified in this regard, it is our offices opinion that while the City may choose to go out for RFP's, the City is not legally required to do so. If the City deems that competitive RFP's are desirable, it should not automatically consider negotiating with any of the bidders responding to the last request for proposals, pursuant to the former "RFP", because the former RFP terms were com- pletely different in scope than the services now contemplated; - I r '\ I City Commission David Harden, City Manager June 7, 1990 Page 5 I the RFP responses are seven months old; and there was a com- pletely different Commission making the previous selection. However, the City may negotiate a new contract with any of the previous bidders or other appropriate parties, especially in light of the emergency situation that would be likely created if the present contract is terminated immediately, or a buy-out occurs promptly, requiring the City to act immediately. ~r~K Attachment cc: Robert A. Barcinski, Assistant City Manager Joseph Weldon, Director of Parks and Recreation ~....~...... I . , , : " R~C~ ~it _<..0 ___ Ciíy ..~Hom~y'~ omcc City of O(,:Ca~' Besch . [ITY DF DELRAY BEA[H 100 N,W, 1sr AVENUE OELRA Y BEACH, FLORIDA 33444 407/243· 7000 MEMORANDUM TO:. David T. Harden, City Manager Jeffrey Kurtz, City Attorney FROM: ~ Robert A. Barcinski, Asst. City Manager, Community services~ SUBJECT: Possible Default Items/Municipal Golf Course June 6, 1990 - DATE: Based on last night's workshop discussion I am submitting the following information for consideration in response to City Commission's request on items of~efault. 1. Sales Tax License Fee/Capital Improvements. Article 21, Section 21.01 " Taxes", requires the Licensee to pay all applicable sales tax. It has been the opinion of the City Attorney that the Licensee is required to pay sales tax on the yearly license fee payment. On February 20, 1990, a letter was sent to-Mr. Goldstein informing him of this requirement and requesting payment of same. No written response was ever received to this letter. Mr. Goldstein communicated verbally to me on at least two occasions that he did not feel obligated to pay the tax even if it were required. He indicated that this item was not addressed by the City in the bid process, contract negotiations, or in the contract document itself. He felt that the City should pay the tax from the license fee he was required to pay the City. On March 21, 1990, an opinion letter received March 20, 1990, from the State Department of Revenue was hand-delivered by me to Ms. Bregman's office at the Municipal Golf Course. 2. Value of Capital Improvements Article 14, Section 14.08 "Value of Capital Improvements" is very specific in direction and required documentation concerning Capital Improvement Projects, and in determining value of same. It specifically addresses the process to be followed for determining value of items completed with in-house labor. I have not received documentation on the following items that were completed by in-house labor in order to determine value. 1. Rebuilding of benches. '" Restoration/Repair of rain shelters and restrooms\ In addition ¿. . I have not received bids or invoices for work done on the rain shelters through contract. t '\ . ;- 3 . 90 - 120 Day Improvements This item has been substantially completed with the following exceptions: 1. Replace rain shelters to the west of #13 Tee - this has not been completed. The Licensee requested verbally that they be relieved of this item. I did not give permission to not replace. However, as I understand it a May 15th request requested that this item be eliminated. 2. Upgrade Golf Course Signage - The Licensee has made efforts in this are'ã. This item was not specifically defined. The main entrance signs have not been replaced or repainted. I need as~istance in determining if this item has been complied with. 3. Upgrade Driving Range - The Licensee has requested redefining of-the scope of work to expand on this item. I concur with the request. The original scope proposed to build a range building manned by an employee. I concur with the Licensee that this makes no sense. Tees have been realigned, ball washers~purchased, new tee markers not installed; would be with new scope. I do not think this is an item of default. 4. Course Maintenance --- A. Weeds It is my opinion that the Licensee has complied with course maintenance provisions of the contract. They have been very responsive to items I have pointed out that needed maintenance attention. At last night's meeting concerns were raised regarding the fairway weed problem. The contract requires that the fairways "be kept weed free to an extent of at least 90% of the area by the proper application of herbicides". In all fairness to the Licensee, weeds have been a problem at the course for years and were an extensive problem when they took over the course. The Licensee has initiated an aggressive weed control program which was developed through the assistance of an agronomist. This seems to be an area of concern. I think the Licensee is taking proper action, however, if there is doubt I would suggest hiring our own agronomist to review the work program of the Licensee and make recommendations to the City including how long they think it will take to reach the 90% requirement. With dry weather conditions, un-irrigated roughs, and canal irrigation I think this is a difficult problem to resolve. I I , , " B. Cart Paths/Resurfacing There are numerous areas on the cart paths and around the pro shop and restaurant that need patching and resurfacing. The Licensee proposes in their May 15th request to re-prioritize capital items to include this work. I wholeheartedly concur. Section 23, Exhibit A, requires cart paths be maintained in a smooth condition and repaired promptly. This may be considered a technical violation, however, I feel it is best addressed in the redefinition of capital improvements. I also cannot certify to the condition of the cart paths at the time Mr. Goldstein took over. I think in fairness to the Licensee his request on this item in the capital improvement program should be accepted. 5. Liquor License We still do not have a liquor licensee transferred in the name of BLS Services. The Licensee has been attempting to get this accomplished. See attached letter dated May 15, 1990. 6. Request to Re-prioritize and Revalue Capital Improvements Attached is a request to re-prioritize and revalue capital improvement items per Exhibit D. I have reviewed and discussed these w±-t.h the Licensee and concur with their request. This is not a specific default item but I felt it should be included in this report in that I have referenced it in some of the other items in this memo. The original exhibit was never meant to be inflexible or unchangeable. It was understood during contract negotiations that this was a beginning list that could change based on need and actual costs for completing the projects. If you have any questions concerning this memo please call me. I have been inspecting this course for sometime now. Although others may not agree I have, in my opinion, witnessed improvements to the course and facilities. The effort has been and continues to be made by the Licensee in all areas. There was a point in time i.e., April, early May, when course conditions were not good. This was after the busy playing season and at a time when we were receiving very little rain. Course conditions have improved since then in my opinion. The Licensee also inherited some terrible conditions. 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