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02-01-84SpMtg FEBRUARY 1~' 1984 A Special Meeting of the City Council of the City of Delray Beach, Florida, was called to order by Mayor Willard V. Young in the Council Chambers at City Hall at 10:35 P~e., Wednesday, February 1, Roll call showed: Present - Council Member Malcolm T. Bird Council hember Doak Campbell Council 5~ember Arthur Jackel Mayor ~illard V. Young Absent - Council Member Edward L. Perry Also present were - City Manager James L. Pennington and City Attorney Herbert W.A. Thiele. ~ayor Young called the meeting to order and announced that this meeting has been called for the purpose of (1) considering settle- ment of %~rd Food Service License agreement for Delray Beach Country Club Restaurant; (2) considering License Agreement with Toni and Jim Brez for operation of De lray Beach Country Club Restaurant; (3) con- sidering repairs at Delray Beach Country Club; (4) considering setting date for public hearing on FOP impasse resolution; (5) considering purchase of 14 vehicles for Police Department under State Contract; (6) considering transfer of $18,497.40 from Contingency Fund to Police Department for purchase of 14 vehicles; (7) consider the Sewer Rate Study Commission action with Highland Beach; (8) considering 'proposed closing of Germantown Road Bridge. The City Attorney reported on the background of this issue. He advised that the prior licensee owed the City approximately $6,500 for outstanding license payments, utilities and maintenance payments. %~en the City took possession under the terms of the license, they were permitted to take hold of personal property at the site, which they did. Mr. ¥~ard valued the personal property, stock, inventory, etc., that was on the site at about $18,000. The City took the bargaining position that they did not think it was worth that much but would be willin9 to negotiate; in exchange for a general release of any claims they may have against the City, if Ward would sell the City all the materials at the site free and clear of any liens or encumbrances for the amount owed to the City, they would call it square. They now have a bill of sale and a general release subject to Council's acceptance. This would excuse all of the claims the City has against ~. Ward and they would subsequently execute a general release in his favor. For the $6500 they were owed, they would get in trade all of the personal property and inventory which Mr. ¥~rd valued at $18,000. The City valued it at less that $18,000 but more than the $6500 owed. Mr. Bird moved to accept the bill of sale and the general release and execute a release to Mr. Ward, seconded by 5~. Campbell. Said motion passed unanimously. The City Attorney reported that Council directed that the Brezs be substituted in the pre-existing License Agreement; however, two problemsarose: (1) the resolution of the %~rd matter; and (2) the condi- tions at the Country Club presented a problem for the new licensee and the City in restoration and repair of the site. Based on that, they proceeded to make changes to the License Agreement to resolve the mat- ter. As they were substantially rewriting a lot of the agreement, they went off even further and negotiated an entirely new License Agreement. It is before Council now and it addresses the concerns they had about a new licensee taking over the Country Club restaurant and bar operation and also makes some modifications for the future, which were not origi- nally addressed, so that a new licensee could go in and do things that need to be done. The City Attorney outlined the provisions of the new License Agreement. Upon question by 5~. Campbell, the City Attorney replied that the Brezs would be responsible for any vending machines which might be put in. Upon question by ~. Bird, the City Attorney advised that there is an error in paragraph #16; it should be modified so that the bathrooms and locker rooms are not the licensee's responsibility. The phrase "but not limited to the bathroom" should be excluded. The City Attorney advised that the City would agree by this License that all of those items mentioned in Exhibit A would be funded and paid for by the City to bring it up to operational condition. This includes some general repair items, some painting, the finishing of the roof, a number of plumbing items and a number of electrical items. Once those things have been done, the City hanager will give a notification to the licensee that the place is ready for operation. Then the clock begins to run for the purpose of the license payments; however, the license payments would be excused for the first three months of that period to offset having the licensee redo, reupholster, refinish or replace the furniture inside with like materials at his own expense. Upon question by Mr. Bird, the City Attorney advised that if the Brezs choose to replace the furniture, the new chairs would become the City's property because the City is helping to defray that cost. The old chairs would be disposed of by the Brezs at their option for seating capacity or firewood. The City Attorney discussed the license payments and out- lined the items in the agreement which are different than those in the prior license agreement. With Council's concurrence, the Administration and the City Attorney's office will finalize the final inventory list with the Brezs. The only difference between that list and the prior list is that they have added those things which they got by bill of sale from the Ward Company. In summary, they are going to be havin9 a five year license with increasing license fee payments and, initially, the City will be obligating itself to repair, replace or in some other manner make operational and functional those items set forth in Exhibit A, at the City's cost. Thereafter, the licensee will be responsible for the interior and the City for the exterior. Mr. Bird questioned paragraph #17 prohibitin9 candles on the premises. The City Attorney advised that only applies if it would violate their insurance policies. Mr. Campbell stated that it was understood that all of the existing equipment and furnishings that were in place as of the com- mencement of the license would remain titled in the City although the licensee may improve or repair that equipment. He noted that the third paragraph on page 7 says that "title to all fixed and expendable equip- ment purchased by the licensee from funds other than those provided for shall remain vested in the licensee". The City Attorney replied that is correct; those are add-ons. Mr. Campbell further stated it is clearly understood that the licensees are not going to be responsible for any of the maintenance in the restroom facilities; those would still be tied into the locker rooms. The City Attorney replied that is correct and added that the locker fees would now be collected by the City. ~. Campbell stated that the licensee should understand that the City may determine that it~sin their best interest to lease out the entire facil- ity, in which case the licensee will have 60 days notice to plan for and relocate their business; the City Attorney added, that is, in the event they are unable to negotiate a transfer of the license, hr. Campbell stated that he would like the licensee to be uninhibited in fixing up the place. One of his concerns is that if the licensees were to ~o in and spend a considerable amount of money in fixin~ it up, the City might then give them 60 days notice to move out. ~. Bird suggested that they could make that a subject o~ the franchise agreement for the Club at the time they gave it up. The City Attorney stated that, as a Council policy, he feels they will prob- ably attempt to have, as a part of any franchise or contract operation, the fact that the new operator would assume this license agreement; this agreement allows them to do that but it does not obligate them to. - 2 - 02/01/84 Upon question by Mr. Jackel, the City Attorney replied that he negotiated the agreement. ~. Jackel questioned why they went with a five year agreement this time. The City Attorney stated that the amount of capital expenditures, which may be necessary, led them to the negoti- ation that a period longer than 15 months was necessary for an operator to recoup that kind of major investment. 5~. Jackel asked if there is a provision whereby the City can cancel this agreement upon notice if performance is unsatisfactory. The City Attorney advised that the notification is only if they fail to comply with the terms of the li- cense; there is no "no-cause" termination. ~. Jackel expressed concern over a five year agreement in which the City has no way out and stated that he thinks it is a poor business arrangement. Further, 5~. Jackel questioned the legality of the agreement and why they did not go out to bid. The City Attorney advised that Council agreed to substitute one licensee for another. ~r. Jackel felt they are rushing into this and suggested discussing it at a workshop meeting. Further, he suggested that the Administration renegotiate the agreement relative to termina- tion of the agreement. Mr. Campbell stated that the point mentioned about termina- tion is a just one and, perhaps, a clause could be inserted which would give the City an out upon long term notice. Other than that, he feels it is a fair agreement and feels the City is under an obligation to reopen the restaurant as soon as possible. There is a lot of work that needs to be done and Mr. & Mrs. Brez will have to go in with consider- able energy, time and money to put that restaurant in an acceptable condition. In order to do that, they could not accept a short term lease. Further, he does not feel they could get a quality restaurant on a short term lease unless the City expended the monies necessary for repair and renovation in the interior. Upon question by 5~. Jackel, hr. Campbell stated that he feels very comfortable with ~.~. & hrs. Brez and he has received many recommendations on their behalf. ~r. Bird stated that they have managed to destroy nearly everything they bought out there five years ago; most of it due to lack of maintenance, lack of interest and an inability because of short term relationships. Regarding termination provisions, he feels the license agreement adequately covers it in regard to failure to perform. He would not favor a "no cause" termination provision. It seems to him they are faced with two choices; they can continue under the existing license agreement for 15 months with no substantial improvement to the property or they can execute a long term lease which is going to obtain for them a refurbished facility which is in keepin§ with the desires of the people who use the establishment. He agrees with 5~. Campbell that they have had adequate time to review the lease. Mayor Young concurred with 5~. Bird's and 5~. Campbell's comments. M~S%' Phyllis~Pl~me asked the following questions: In the present budget, where is the money that will pay for a full-time clean- ing person to take care of the restrooms? Where are they going to move the Club ~lanager? If they have to rent a trailer for him, where will that money come from? She stated that she is concerned because those types of things are not covered in the present adopted budget. Mr. Bird advised that in addition to the $3800 in fees from the locker rentals, there is also $2000 called for in this agreement. They are not hiring restroom attendants; the City could easily contract with a cleaning service to come in two or three times a day. It prob- ably amounts to 1-2 hours labor a day. Further, the agreement says that the Club Manager will be relocated as soon as possible. The City Ks in the process of replacing the cart storage area and they have obtained additional space from Mr. Block. If those combined areas do not grant the relief they are looking for, they will have to readdress the issue. Mrs. Plume asked what the City is going to do with the property at got from ~. %~rd. The City Manager stated that he has talked with the golfers and there is a need at the golf course. He assures Council and the golfers that these things are going to happen in a fairly quick - 3 - 02/01/84 period of time. That, in his opinion, is a much more responsive manage- ment system at the course where they can keep better control of those facilities so that the golfers themselves can also know what is going on. That takes a little bit of time; they're going to take care of those things and also try to get the other facilities mentioned off the ground, hopefully, a lot quicker than six months to a year. Mrs. Plume stated that she is concerned as to ~ether all of this is going to cost the golfers money. 5~. Bird stated that if the Brezs maintain the facilities in the manner they maintained their facil- ity in Boca Raton, the golfers are going to benefit. They will get the kind of ongoing maintenance which will reduce future costs for replace- ment maintenance. Mr. Bird advised ~s. Plume that the golfers will get all the money put into their budget which in the past was given to the license holder for those things. Also, the new licensee will give them an additional $2000 a year. Mr. Jackel moved to conclude the license agreement with & Mrs. Brez regarding the management of the Clubhouse at the Delra~ Beach Country Club starting as soon as possible, seconded by 5~. Bird. Said motion passed unanimously. Before roll call, Mr. Bird stated he assumes that will in- clude an amendment to the agreement to clean up a couple of the para- graphs. The City Attorney stated there will be changes on Pages 7 and 8 on the bathroom responsibility; also, they will make the license agree- ment as of January 10, 1984. Upon question by ~. Jackel, hr. Bird advised that the rent will become due at a future date. At this point the roll was called to the motion. 3'. The City ~anager reported that in order to get this opera- tion started, they will have to make a number of repairs at the City's expense. Council has been provided with copies of reports from the Building and Engineering Departments, as well as the Health Department. They are looking at a figure in the neighborhood of $24,000. Hopefully, they can cut that figure lower by utilizing some inhouse talent. The City Manager outlined some of the items which must be taken care of. He and the City Attorney agree that they need to declare this of an emer- gency nature so they can proceed as soon as possible. If they go out to bids, the process will take about 1 to 1½ months. He requested Coun- cil's authorization to proceed. Upon question by Mr. Jackel regarding the timbers for the roof, the City Manager advised that they are getting treated materials. hr. Bird moved to authorize the Administration to commence immediate repairs at the Delray Beach Country Club using any combination of inhouse and contract labor as necessary to do it in a timely manner, seconded by ~. Jackel. Said motion passed unanimously. Before roll call the following discussion was had: Upon question by ~. Jackel, ~. Huddleston, Finance birec- tor, advised that currently at the Golf Course there is an uncommitted reserve from the fire loss. If these monies come from that, it would leave them with a balance of about $140,000 to work with the cart shed and those improvements. Mr. Bird noted that the first comprehensive list of problems came to them just 3 or 4 days ago. He is disappointed that, apparently, people who have been responsible for the facility have never found it necessary to conduct this thorough an inspection. They certainly have the ability to do it within the City. A more formalized procedure has to be established and he suggested that a procedure be put together Dy the Adminstration and brought back to Council for review, hayor Young concurred. Upon question by the City Attorney, Mr. Bird stated that the motion is intended to waive the normal bidding requirement and use what- ever is necessary to get the job done in an expeditious manner. - 4 - 02/01/84 At this point the roll was called to the motion. The City Attorney reported that Council is to consider setting a date for a public hearing on the FOP impasse resolution for purposes of rendering the final decision that Council is empowered to make. Council discussion was had regarding the public hearing. Upon question by Council members, the City Attorney advised that there is nothing in the Statutes which states that Council must render a decision at that point in time; it says as expeditiously as possible. Upon further question, he advised that all discussion has to be public at that time. Mr. Bird stated that the Police Department has not received the cost of living increase yet and noted that by delaying the hearing they are costing them dollars. Mr. Bird moved to hold the public hearing for the FOP im- passe resolution at a Special heeting on Thursday, February 16, 1984 at 4:00 P.M., seconded by ~. Jackel. Said motion passed unanimously. 5~. The City Manager explained that they have a tilae schedule problem. The budget indicates the purchase of 12 police vehicles; however, during the interim period two vehicles were completely totalled so the request has been modified for 14 vehicles instead of 12. The bid price is $9,408.10 per vehicle. The total bid price for 14 vehicles will be $131,713.40; they have $92,400.00 in the budget. When the cars they now have are bid out and they get the insurance proceeds back ~or the two totalled vehicles, it appears they will still need $18,497.40 to cover the cost. Upon question by Council, Mr. Huddleston advised that there is about $6,000 uncommitted in the Law Lnforcement fund; consideration would have to be given as to whether or not that was an extraordinary item. 5~. Bird questioned how the two vehicles were totalled. He further stated that he would be interested in hearing a presentation relative to pursuit procedures. The City hanager advised that he has discussed this with the Police Chief and they will be getting together to compile statistics. Chief Kilgore advised that the two totalled vehicles were not involved in high speed chases; they were respondin9 to service calls. Mr. Bird moved to authorize the purchase of 14 vehicles for the Police Department under State Contract, seconded by 5~. Jackel. Said motion passed unanimously. Mr. Bird moved that the shortfall of $18,497.40 for the purchase of subject vehicles be provided from the Contingency Fund to the Police Department for the purchase, seconded by F~. Jackel. Said motion passed unanimously. ~. Bird reported that the Citizens Committee has provided them with an arbitration agreement which they have accepted; establish- ment of a mechanism to resolve the discrepancy through arbitration instead of litigation. Council's acceptance of that contract with the engineers has ended the need for the Committee. ~. Bird thanked the members of the Citizens Committee for their time, effort and perspi- cacity in coming up with a solution to this problem, hr. Jackel con- curred. Mayor Young requested that a letter of thanks be prepared and sent to the members of the Committee. Mr. Bird moved to dissolve their involvement with the Com- mittee at this time, seconded by ~. Jackel. Said motion passed unani- mously. 8. The City Manager stated that the question before Council is whether or not the City wants to make an official response relative to the closing of Germantown Road Bridge. The County Commissioners are meeting at 10:00 Ah on February 7th for a public hearing to consider this item. The City Engineer's office has recommended against the closing. - 5 - 02/01/84 Mr. Bird stated that one of the things Council told the developers of Crosswinds and Abbey Delray South was that they wanted to, for access for emergency vehicles, extend Homewood Boulevard through their project to intersect with Germantown Road, but they had no inten- sion of closing off Germantown Road and making their projects a major entrance and exit from the area to the south of them. He added that they all recognize that the bridge needs to be improved, but the minute they cut it off and four-lane Linton Boulevard, they will be doing what they assured the developers was not their intention. He feels they have some obligation to tell the County that part of their informal under- standing with those developers was that Germantown Road would continue to exist. F~. Jackel sug~sted as a motion that they pass a resolution addressed to the County Commissioners requesting them not to close the bridge, hr. Bird suggested they add to that request that the County give it priority for replacement; that it is not as useful as it could be from a fire standpoint because they cannot move pumpers across the bridge. Mr. Bird noted that the police say they have a traffic problem on the road. He does not know what it does to the traffic flow as there is no engineering estimate, but he would guess they can look for another 1200 cars or so to use Homewood Boulevard and, of necessity, then wind their way through Crosswinds to get there. Mr. Bird moved that they encourage the County to replace it in addition to not closing it; i.e., to not close the bridge and to replace it with a bridge that would at least carry emergency equipment, seconded by Mr. Jackel. Said motion passed unanimously. Before roll call the following discussion was had: 5~. Campbell stated, for clarification, that they should refer to Germantown Road by its official State designation since it is a State designated road; that bridge would be the only wooden brid~ on a State designated road in the State of Florida. ~. Bird stated that since it was modified to the extent that the more eastern portion of it now no longer joins up because of the 1-95 berm, etc., it might be advantageous to ask them to bring it up to Code and turn it over to the City. The City Attorney advised against that suggestion because one of the issues they intend to raise in their 8th Street litigation is the equal protection problem. There is no statutory mandate that the State upgrade anything that they give to the City, only to the Counties. At this point the roll was called to the motion. Mayor Young declared the meeting adjourned at 12:20 P.~. Clerk ATTE~: MAYOR The undersigned is the City Clerk of the City of Delray Beach and that the information provided herein is the minutes of the meeting of said City Council of February 1, 1984, which minutes were formally approved and adopted by the City Council on NOTE' TO~ READER: If the minutes that you have received are not completed as indicated above, then this means that these are not the official minutes of City Council. They will become the official minutes only after they have been reviewed and approved which may involve some amendments, additions, or deletions to the minutes as set forth above. - 6 - 02/01/84