06-14-93 v CITY OF ATLANTIC BEACH
REGULAR MEETING OF THE CITY COMMISSION, JUNE 14, 1993, 7:15 P.M.
AGENDA
Call to Order
Invocation and pledge to the flag
1. Approval of the minutes of the regular meeting of May 24, 1993
and Special Called meeting of June 2, 1993
2. Recognition of Visitors:
3. Appearances:
A. Preliminary report from Fleet and Associates on expansion of the
Public Safety building (Janice Fleet)
4. Proclamation:
A. Proclamation recognizing June 14, 1993 as Flag Day
5. Old Business:
A. Discussion and related action relative to Appeal of Variance
Denial by Robert Lowther (City Attorney Alan Jensen)
B. Proposed refund of Gulf Breeze Loan (Foley and Lardner)
C. Discussion and related action regarding Letter of Commitment
concerning Barnett Bank loan (Finance Dir. Kirk Wendland)
D. Update report on permit parking on 10th Street between Beach
Avenue and Ocean Boulevard (Police Chief Thompson)
E. Discussion and related action relative to the general polices for
the Adele Grage Community Center (Commissioner Waters)
ALL MATTERS LISTED UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE ROUTINE
BY THE CITY COMMISSION AND WILL BE ENACTED BY ONE MOTION IN THE FORM
LISTED BELOW. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS. IF
DISCUSSION IS DESIRED, THAT ITEM WILL BE REMOVED FROM THE CONSENT AGENDA
AND WILL BE CONSIDERED SEPARATELY. SUPPORTING DOCUMENTATION AND STAFF
RECOMMENDATIONS HAVE BEEN PREVIOUSLY SUBMITTED TO THE CITY COMMISSION ON
THESE ITEMS.
6. Consent Agenda:
A. Water and Sewer Committee report
B. Status report concerning the allocation of Community Development
Block Grant Funds
C. Usage report on of the Adele Grage Community Center for May
D. Bid #9293-19 Backhoe
E. Grant application for DCA funds
F. Sea Turtle Inn will be the host hotel for a Hobi Cat Regatta June
25-27
7. Resolutions:
A. Resolution #93-24 relative to refinancing existing water and
sewer bonds and improvements to the existing water and sewer
systems
B. Resolution #93-25 thanking residents of Fleet Landing for
contributions towards the purchase of a defibrillator
8. Ordinances:
A. Introduction and first reading amending Ordinance #95-93-57
relative to Potbellied Pigs
B. Introduction and first reading of Ordinance #95-93-58 regarding
solicitation
C. Introduction and first reading of Ordinance #90-93-160 relative
to rezoning of Pan Am Mini Storage complex from CG to ILW
9. New Business:
A. Request with related discussion and action to approve a joint
venture for the sidewalk construction and roadway
widening/resurfacing of Church Road (PW Director Bob Kosoy)
B. Request approval of Change Orders for WTP #4 in the amount
of $8,400 increase (PW Dir. Robert Kosoy)
C. Discussion and related action requesting the acceptance of
proposals from J. Lucas & Associates for wells at WTP #2 &
#3 (PW Dir. Robert Kosoy)
D. Request with discussion and related action relative to transfer
of funds to purchase lift gate and hose making machine (PW Dir.
Robert Kosoy)
E. Request authorization to approve Application for Participation
Reservation Fee Agreement with First Municipal Loan Council
(Finance Dir. Kirk Wendland)
10. City Manager Reports and/or Correspondence:
11. Mayor to call on City Commissioners, City Attorney and City Clerk:
Adjournment
Reminder:
Joint meeting with the Community Development Board June 14, 1993 at
6:00 p.m.
National Flag Day June 14, 1993 - ceremony to be held in front of the
Public Safety building at 7 p.m.
V V
00
MINUTES OF THE REGULAR MEETING OF ATLANTIC BEACH T
CITY COMMISSION HELD IN CITY HALL, 800 SEMINOLE T E
ROAD, at 7 : 15 P. M. ON MONDAY, JUNE 14 , 1993 E E
D D
PRESENT: William I . Gulliford, Jr. , Mayor
Glenn A. Edwards M S
Lyman T. Fletcher 0 E
Adelaide R. Tucker, and T C
J. Dezmond Waters , III , Commissioners I 0 Y
NAME OF ONEN
AND: Kim D. Leinbach, City Manager COMMRS. N D S 0
Alan C. Jensen, City Attorpcy
Maureen King, City Clerk
The meeting was called to order by Mayor
Gulliford. The invocation, offered by Commissioner
Fletcher, was followed by the pledge to the flag.
1 . Approval of the minutes of the regular meeting
of May 24 , 1993 Edwards x x
Fletcher x
Motion: Approve minutes of the Tucker x x
regular meeting of May 24 , 1993 Waters x
Gulliford x
No discussion before the vote. The motion carried
unanimously.
Approval of the minutes of the Special called
meeting of June 2, 1993 Edwards x x
Fletcher
Motion: Approve minutes of the Tucker
Special called meeting of June 2 , 1993 Waters x x
Gulliford x
No discussion before the vote. The motion carried
unanimously.
Agenda Item 4A was taken out of sequence and acted
upon at this time.
A. Proclamation recognizing June 14 , 1993 as
Flag Day
Mayor Gulliford presented a Proclamation
recognizing June 14 , 1993 as Flag Day at a brief
ceremony which was held at the Flag Pole adjacent
the Public Safety Building prior to the Commission
meeting .
Agenda Item 5C was taken out of sequence and acted
upon at this time .
C. Discussion and related action regarding Letter
of Commitment concerning Barnett Bank loan
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June 14 , 1993 NAME OF
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Kirk Wendland, Finance Director, presented a Letter
of Commitment with Barnett Bank of Jacksonville for
the Purchase of up to $10, 000 ,000 in Tax-Exempt
Revenue Notes/City of Atlantic Beach Water and
Sewer Refunding and Capital Improvements Projects
(copy attached hereto and made a part hereof) . He
advised that Chauncey Lever, of Foley and Lardner,
who assisted in the preparation of the Letter of
Commitment, was in the audience, as well as
representatives of Barnett Bank. He explained the
Commission would be given copies of final loan Edwards x x
documents at a later time . Fletcher x
Tucker x
Motion: Authorize execution of Waters x x
Letter of Commitment with Barnett Gulliford x
Bank of Jacksonville for the Purchase
of up to $10, 000 , 000 in Tax-Exempt
Revenue Notes/City of Atlantic Beach
Water and Sewer Refunding and Capital
Improvements Projects
Mr. Wendland explained the intent of the Letter of
Commitment and Chauncey Lever of Foley and Lardner
gave a brief presentation and answered questions.
The question was called and the motion carried
unanimously.
Agenda Item 7A was taken out of sequence and acted
upon at this time.
A. Resolution #93-24: A RESOLUTION OF THE CITY OF
ATLANTIC BEACH APPROVING THE ISSUANCE OF A
$10,000,000 NOTE TO REFINANCE EXISTING WATER AND
SEWER BONDS, TO PAY COSTS OF CONSTRUCTION OF WATER
AND SEWER SYSTEM IMPROVEMENTS AND TO PAY COSTS OF
ISSUANCE; APPROVING WATER AND SEWER SYSTEM
IMPROVEMENTS; MAKING A DETERMINATION THAT THE NOTE
ISSUANCE IS IN THE PUBLIC INTEREST: AND PROVIDING
FOR AN EFFECTIVE DATE
Mayor Gulliford presented in full , in writing,
Resolution #93-24 . Edwards x x
Motion: Approve passage of Fletcher x
Tucker x x
Resolution #93-24 Waters x
Kirk Wendland explained Resolution #93-24 approved Gulliford x
the issuance of $10, 000, 000 in tax exempt revenue
notes , listed capital improvements that would be
accomplished, and identified when monies would be
spent.
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June 14 , 1993 NAME OF
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Commissioner Fletcher asked for a status report
concerning scheduling of projects . Bob Kosoy
explained some projects, such as meter readers,
were underway, and efforts were being made to
maintain the schedule of projects .
The question was called and the motion carried
unanimously.
Agenda Item 5B was taken out of sequence and acted
upon at this time.
B. Proposed refund of Gulf Breeze Loan
Kirk Wendland introduced Jean Mangu, of Foley and
Lardner, who reported the firm of Foley and
Lardner was comfortable with the City prepaying the
Gulf Breeze loan via the Arcadia transaction. She
indicated it would be a difficult process to prepay
the loan independently, without the involvement of
Arcadia. She explained if the city desired to
prepay on its own, it would not be possible to walk
in with cash, prepay, and have the liens on its
revenues released. Monies would have to be set
aside in an escrow to be paid over time in the same
manner that the Arcadia pool intended to use the
proceeds.
It was explained under the terms of the loan
agreement that was originally signed, the
provisions for prepayment were tied into a bond
issue and the requirements of the bond issue had
restrictions on prepaying.
With reference to the proposed Arcadia loan, it was
explained an escrow account would be funded for the
retirement of the bonds of Gulf Breeze . The
principal and interest would be paid as it came
due, until the city was able to prepay the loan.
Ms. Mangu advised it would be practical to
participate in the Arcadia pool at the present
time . It was explained if the City elected to
proceed with the Arcadia pool , the loan would run
until 1998 ,
After discussion, it was the consensus of the
Commission that there was not enough information
available to make a decision at the present time .
A discussion ensued and it was felt a financial
advisor, experienced in bond financing, should be
contacted to review the matter and advise what
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June 14 , 1993 NAME OF
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couse of action would be in the City' s best Edwards x
interest .
Motion: Decline to accept Arcadia Fletcher x x
offer Tucker x x
Waters x
A discussion ensued and it was decided to study the Gulliford x
matter more fully. The City Manager was asked to
contact a financial advisor and arrange a meeting
as quickly as possible .
The question was called and the motion resulted in
a vote of 1-4 , with Commissioners Edwards , Tucker,
Waters , and Mayor Gulliford voting nay. The motion
failed.
Agenda Item 9E was taken out of sequence and acted
upon at this time .
E. Request authorization to approve Application
for Participation Reservation Fee Agreement
with First Municipal Loan Council
Kirk Wendland presented a request for approval for
participation agreement with First Municipal Loan
Council . He explained the First Municipal Loan
Council would issue a series of fixed rate bonds .
At the present time the effective annual percentage
rate was estimated to be approximately 6%, and
participating municipalities would be able to
choose the loan term, up to 30 years.
Edwards
Motion: A x x
pprove application for
participation agreement with First Fletcher x
Municipal Loan Council Tucker x x
Waters x
No discussion before the vote . The motion carried Gulliford x
unanimously.
Agenda Item 7B was taken out of sequence and acted
upon at this time .
B. Resolution #93-25 - A RESOLUTION OF THE CITY OF
ATLANTIC BEACH THANKING FLEET LANDING RESIDENTS FOR
CONTRIBUTIONS FOR THE PURCHASE OF AN AUTOMATIC
ELECTRONIC DEFIBRILLATOR.
Mayor Gulliford presented in full , in writing ,
Resolution #93-25 .
Edwards x x
Motion: Approve passage of Fletcher x
Resolution #93-25 Tucker x x
Waters x
No discussion before the vote . The motion carried Gulliford x
unanimously.
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June 14 , 1993
NAME OF
COMMRS. MSYN
Mayor Gulliford presented Resolution #93-25 , in
plaque form, to Capt. Charles W. Styer, who
represented Fleet Landing.
2 . Recognition of Visitors:
Capt. Charles W. Styer referred to a request of Pan
Am Mini Storage to rezone their complex from CG to
ILW. Capt . Styer indicated residents of Fleet
Landing had complained because of noise generated
from Pan Am Mini Storage, such as, loud
motorcycles , boom boxes , and incoming and outgoing
traffic from the complex late in the evening.
Capt . Styer indicated he would like the record to
note the complaints of Fleet Landing. Mayor
Gulliford explained a public hearing to change the
zoning in ordinance form would be held July 26 ,
1993 . George Worley, City Planner, explained
research relative to complaints received against
Pan Am was conducted with reference to the Code
Enforcement Board complaints, only, and did not
include Police Department complaints .
J. P. Marchioli , 414 Sherry Drive, presented his
comments concerning recent denial of variances.
Mayor Gulliford indicated a special meeting would
be held between the Commission and the Community
Development Board in an effort to reach a consensus
regarding variances . He invited Mr. Marchioli to
attend the special meeting which would be scheduled
at a later date.
J. P. Marchioli , 414 Sherry Drive , complained of a
hole in front of his house at 414 Sherry Drive.
Bob Kosoy, Public Works Director, advised he would
look into the matter.
3 . Appearances:
A. Preliminary report from Fleet and Associates
on expansion of the Public Safety building
(this was withdrawn from the agenda and will
appear on the agenda of June 28 , 1993 )
4. Proclamation:
A. Proclamation recognizing June 14 , 1993 as Flag
Day (this was acted upon earlier in the agenda)
5. Old Business:
A. Discussion and related action relative to
Appeal of Variance Denial by Robert Lowther
Alan Jensen, City Attorney, reported it would be
appropriate for the Commission to refer the request
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June 14 , 1993 NAME OF
COMMRS. MSYN
for variance of Robert Lowther back to the
Community Development Board for reconsideration.
He added it would be appropriate to include any new
evidence regarding the matter. Edwards
Fletcher x
Motion: Refer appeal of variance of Tucker x x
Robert Lowther to the Community Waters x x
Development Board Gulliford x
George Worley was asked to advise the Commission if
Mr. Lowther' s residence was placed in its present
location at the request of the Oceanwalk
Association in an effort to save trees on the
site .
The question was called and the vote resulted in
all ayes . The motion carried.
B. Proposed refund of Gulf Breeze Loan
( this was acted upon earlier in the agenda)
C. Discussion and related action regarding Letter
of Commitment concerning Barnett Bank loan
(this was acted upon earlier in the agenda)
D. Update report on permit parking on 10th Street
between Beach Avenue and Ocean Boulevard
Police Chief David E. Thompson reported he met with
Ms . Lanier and a proposal was agreed upon. He
indicated the new parking configuration kept the
same number of permit spaces as previously
suggested, but they were grouped differently. He
added the residents would like to have some input
into the signs that were to be posted in front of
the complex, and he indicated he planned to meet
with several residents in the area before actually
making and posting the signs .
Edwards x x
Motion: Approve permit parking Fletcher x x
configuration on 20th Street between Tucker x
Beach Avenue and Ocean Boulevard, as Waters x
presented by staff Gulliford x
Commissioner Waters felt all signs within the city
limits should be of a standard nature .
The question was called and the motion carried
unanimously.
E. Discussion and related action relative to the
general policies for the Adele Grage Community
Center
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June 14 , 1993 NAME OF
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Commissioner Waters gave a summary of the Parks and
Recreation Committee ' s Survey concerning general
policies for the Adele Grage Commmunity Center
(copy of summary is attached hereto and made a part
hereof) . He indicated it was not necessary for the
Commission to take formal action, and he reported
a joint meeting of the recreation boards would be
held June 15 , 1993 .
Mayor Gulliford felt it was not prudent for the
City to monitor what was considered, or was not
considered to be profit for any organization. He
added the matter of profitability was between the
organization using the city facility and the State
of Florida or the Internal Revenue Service, and
that the City should not be involved. Commissioner
Tucker indicated the Little League listed
expenditures. The Mayor felt it was not possible
to interpret what was profit, as monies were
expended to buy supplies, etc. Commissioner Waters
felt there should be an accounting if an
organization was going to use the City' s
facilities. Commissioner Fletcher felt
educational , cultural , health, or any other similar
endeavors should not be curtailed because of fees
or costs.
It was decided to discuss the above referenced
matters at the meeting of June 28 , 1993 .
6. Consent Agenda:
A. Water and Sewer Committee report.
B. Status report concerning the allocation
of Community Development Block Grant Funds
C. Usage report on use of the Adele Grage
Community Center for May
D. Bid #9293-19 Backhoe
E. Grant application for DCA funds
F. Sea Turtle Inn will be the host hotel for a
Hobbi Cat Regatta June 25-27
Mayor Gulliford requested Item D be withdrawn from
the Consent Agenda. Edwards x x
Fletcher x
Motion: Approve passage of Consent Tucker x
Agenda with the exception of item D Waters x x
Gulliford x
No discussion before the vote. The motion carried
unanimously.
Mayor Gulliford requested a breakdown of what was
being provided from the low bidder. It was decided
to defer action until the meeting of June 28 , 1993
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at which time additional information would be
furnished. Edwards x
Fletcher x x
Motion: Defer action on Item D, Bid Tucker x x
#9293-19, Backhoe, so that additional Waters x
information can be furnished to the Gulliford x
Commission
The question was called and the motion carried by a
vote of 4-1 , with Commissioner Waters voting nay.
7 . Resolutions:
A. Resolution #93-24 (this was acted upon earlier
in the agenda)
B. Resolution #93-25 (this was acted upon earlier
in the agenda)
8. Ordinances:
A. Ordinance #95-93-57 - First Reading
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA, AMENDING CHAPTER 4, ANIMALS, SECTION 4-7 ,
MAINTAINING STABLES; KEEPING OF HOGS, BY ALLOWING
CERTAIN VIETNAMESE POTBELLIED PIGS AS HOUSEHOLD
PETS AND PROVIDING AN EFFECTIVE DATE
Mayor Gulliford presented in full , in writing,
ordinance #95-93-57 on first reading.
Edwards x x
Motion: Approve passage of Ordinance Fletcher x x
#95-93-57 on its first reading and Tucker x
set public hearing for June 28 , 1993 Waters x
Gulliford x
The question was called and the vote resulted in
all ayes. The motion carried unanimously.
B. Ordinance #95-93-58 - First Reading
Mayor Gulliford presented in full , in writing,
Ordinance #95-93-58.
AN ORDINANCE AMENDING CHAPTER 18 OF THE ATLANTIC
BEACH CODE ADOPTING VARIOUS RULES AND REGULATIONS
RELATED TO CHARITABLE SOLICITATIONS, REQUIRING A
PERMIT THEREFOR, AND PROVIDING AN EFFECTIVE DATE.
Edwards x
Motion: Approve passage of Ordinance Fletcher
#95-93-58 on its first reading and Tucker
set public hearing for June 28 , 1993 Waters x
Guilliford
A discussion ensued relative to Section 18-2 , Page
2 , and it was decided to add language indicating it
would be necessary for those wishing to engage in
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June 14 , 1993 NAME OF
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soliciting to obtain a permit, thus the second
paragraph would read as follows: "All persons,
before entering into or upon a residential premises
within the city for the purpose of soliciting,
shall register and obtain a permit with the City
Clerk and furnish her with the following. . . " It
was decided a clause prohibiting giving false or
misleading information should be included in the
language .
A discussion ensued regarding including
door-to-door campaigning in Sec. 18-8
"Exceptions" , but it was determined this was
covered in Section 18-1 (4 ) Solicitation.
Edwards x
Substitute Motion: Approve passage Fletcher x x
of Ordinance #95-93-58 on its first Tucker x
reading, as amended, and set public Waters
hearing for June 28, 1993 . Amendment Gulliford x x
as follows: include language
prohibiting giving false or
misleading information, and add
language indicating it would be
necessary to obtain a permit in the
second paragraph of Sec 18-2 , as
referenced above
No discussion before the vote. The motion carried
unanimously.
C. Ordinance #90-93-160 - First Reading
Mayor Gulliford presented in full , in writing,
Ordinance #90-93-160 .
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH AMENDING
THE ZONING CLASSIFICATION OF PROPERTY KNOWN AS 2383
MAYPORT ROAD, ALSO KNOWN AS A PART OF GOVERNMENT
LOT 7 , SECTION 8 , TOWNSHIP 2 SOUTH, RANGE 29, FROM
CG COMMERCIAL GENERAL TO ILW INDUSTRIAL LIGHT
WAREHOUSING: AMENDING THE OFFICIAL ZONING MAP TO
REFLECT THIS CHANGE; PROVIDING FOR SEVERABILITY;
PROVIDING FOR AN EFFECTIVE DATE.
Edwards
Motion: Approvex
passage of Ordinance Fletcher x x
#90-93-160 on its first reading and
set public hearing for July 26, 1993 Tucker x
Waters x x
No discussion before the vote, which resulted in Gulliford x
4-1 with Commissioner Tucker voting nay. The
motion carried.
9. New Business:
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June 14 , 1993 NAME OF
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A. Request with related discussion and action to
approve a joint venture for the sidewalk
construction and roadway widening/resurfacing
of Church Road
Bob Kosoy reported Jacksonville had suggested a
joint venture with the City for placing sidewalk
and roadway widening/resurfacing of Church Road
(west of Mayport Road) . He indicated the cost for
the City was $14 , 093 . 22 . He reported funds would
be obtained from Local Option Gas Tax Fund.
Edwards x x
Motion: Approve joint venture with Fletcher x x
the City of Jacksonville to place Tucker x
sidewalk and roadway Waters x
widening/resurfacing of Church Road, Gulliford x
west of Mayport Road, at a cost of
$14 , 093 . 22
Commissioner Waters requested that the sidewalk
continue on the South side of Church Road from
Mayport Road to the end of the Road at a cost of
$3 , 265 . 00 .
The question was called and the motion carried
unanimously.
B. Request approval of Change Orders for WTP #4
in the amount of $8 , 400 increase
Bob Kosoy presented a request to approve cumulative
Change Orders for Water Treatment Plant #4 in the
amount of $8 , 400 . 00 . He gave an explanation of
change orders that had previously occurred and he
reported the contract was awarded at $22 , 350 , but
with change order #4 the total price was $30 , 750 ,
thus there was an increase of $8 , 400 . He
explained $40 , 000 had been budgeted for this
project , and the City was well within its budgeted
amount even with the change orders .
Edwards x x
Fletcher x
Motion: Approve cumulative Change Tucker x
Orders for Water Treatment Plant #4 Waters x x
of $8 ,400 Gulliford x
The question was called and the motion carried
unanimously.
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COMMRS. M S Y N
C. Discussion and related action requesting the
acceptance of proposals from J. Lucas &
Associates for wells at WTP #2 & #3
Bob Kosoy requested that the Commission accept an
Engineering Services Proposal for New Water Wells
from J. Lucas & Associates in the amount of
$8 ,400. Because of the emergency nature of the
matter he also asked the Commission to waive
bidding procedures and to accept a quote for the
well drilling project from Earl Floyd & Son at
approximately $29 , 000 .
Edwards x x
Motion: Accept proposal from J. Fletcher x
Lucas & Associates to begin design Tucker x
work and the permitting process for a Waters x x
new well at the Buccaneer Water Plant Gulliford x
at a cost of $8,400, and accept a
quote for the construction work from
Earl Floyd & Son for approximately
$29 , 000
The City Manager indicated some funds would be
derived from the Barnett bank loan.
The question was called and the motion carried
unanimously.
D. Request with discussion and related action
relative to transfer of funds to purchase lift
gate and hose making machine
Bob Kosoy asked for approval to transfer funds to
purchase lift gate for vehicle P-11 and hose making
machine . With reference to lift gate for vehicle
P-11 he explained in keeping with the city' s safety
program, he was proposing to install a lift gate on
the mechanic ' s vehicle P-11 . This lift gate would
permit automatic loading and unloading of heavy
items, such as 300 pound tires , when performing
field repairs. He reported the total cost of the
lift gate installed was $1 , 290 . 00 . With reference
to the hose making machine, he reported after
studying the first five months of fiscal year
92-93 , a cost of $1 , 225 was directly attributed to
various hose purchases .
Edwards x
Motion: Approve transfer of funds in Fletcher x x
the amount of $3 , 990 from account Tucker x
#001-50-02-541-6400 due to savings of Waters x x
$5 ,454 on purchase of Backhoe Gulliford x
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Mayor Gulliford suggested contracting out the
City' s tire work.
The question was called and the motion carried
unanimously.
E. Request authorization of approve Application
for Participation Reservation Fee Agreement
with First Municipal Loan Council(this was
acted upon earlier in the agenda)
10 . City Manager Reports and/or Correspondence:
Kim Leinbach, City Manager, reported the City had
been officially certified as a "Tree City USA"
for 1992 .
Kim Leinbach reported the F.O.P. desired to conduct
a fund raising drive and he asked the Commission to
clarify whether the request should be handled under
his direction, only. The Commission indicated
their desire to have matters such as this handled
directly by the City Manager.
Kim Leinbach reported there would be a Hobi Cat
Regatta in conjunction with the Sea Turtle Hotel .
The City Manager was asked to pursue the matter of
restricting parking connected with the regatta to
one particular area, and perhaps using the Sea
Turtle parking lot.
11 . Mayor to call on City Commissioners, City
Attorney, and City Clerk:
Alan Jensen, City Attorney, reported he had been in
contact with John DeVault , Attorney, and Mr.
Devault had indicated he would undertake litigation
relative to the City' s lawsuit with the City of
Jacksonville .
Edwards x
Motion: Authorize the City Manager Fletcher x x
and Mayor to execute an agreement Tucker x x
with John DeVault, Attorney, to Waters x
undertake litigation relative to the Gulliford x
City' s lawsuit against the City of
Jacksonville
No discussion before the vote . The motion carried
unanimously.
Commissioner Tucker reported the Florida Municipal
Code Corporation had agreed to review the proposed
City Charter at a cost not to exceed $1 , 500 .
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4111 June 14, 1993 COMMRS. MSYN
Motion: Authorize expenditures not to Edwards x x
exceed $1 , 500 payable to the Florida Fletcher x x
Municipal Code Corporation to review Tucker x
the proposed City Charter Waters x
Gulliford x
No discussion before the vote. The motion carried
unanimously.
Mayor Gulliford reported an article relative to the
proposed Ocean County appeared in the Jacksonville
Business Journal .
Mayor Gulliford reported a recent Habitat dinner
was a success with approximately 180 people in
attendance.
There being no further business the Mayor adjourned
the meeting at 10: 20 p.m.
, l /i
' illiam Gullifol : , Jr.
Mayor/Presiding Ofer
ATTES T:
Q _ 2z
Maur-en King J
City Clerk
(Jf
f
Summary of Parks and Recreation Committee's Survey of Commission on
Monday, May 24, 1993 :
It remains clear that the commission is divided on the question of
charging for the use of facilities. There is some support for
charging fees for facility usages after business hours. There also
seems to be a lingering desire to provide categories of exclusion.
How to develop that list of exclusions is proving very difficult,
if not impossible!
Whatever the ordinary rules and charges will be, the commission
clearly favors special annual contracts for users capable of
providing desirable services for our city and its residents.
Beyond the traditional characteristics of these contracts, there
are some interesting new points:
1. Tremendous support for surcharging non A.B. residents for
using our facilities and services. This is particularly
desirable since such charges will be collected by the user and
then paid to the City without tying up our personnel.
2 . Continued support for requiring financial statements from
long term users of the City's facilities.
3 . Specific and unanimous support for charging annual
contractors (and perhaps all others) for extraordinarily
expensive impacts on the City such as stadium lights or
storage spaces.
4 . Confirmation of contractual users providing salaries for
themselves and their employees where applicable.
Unfortunately the survey failed to ask your input on the question
of who should negotiate contracts.
Further it is clear that, in future negotiations, the City will try
to create or expand more and better services for our citizens
through our annual contracts. This commission has authorized a
contract be drawn up with ABET for the establishment/continuation
of a Performing and Fine Arts Center operating out of the Adele
Grage Community Center.
Dear Fellow Commissioner:
Please let the Parks and Recreations Fact Finding Committee have
your advice n the following points:
/ YES 2 NO Do you favor charging A.B. residents, A.B. based
�� )/
organizations, A.B. businesses, governmental
departments (add more if you like) which host,
provide, or create not-for-profit social,
charitable, cultural, recreational, entertaining,
informational, fraternal, community activities or
programs which meet the needs of some section of
our folks here in A.B.?
If you voted YES, answer the following questions:
ii) / YES t NO 0, Do you favor charging for every usage of A.B.
public facilities?
YES 3 NO (2) Do you favor after business hours and weekend
charges?
pe) ,t, YES AL NO 4) Do you favor the original suggestion of the
Adele Grage Renovation Committee?
YES 2 NO 3 If time and space were available in any of our
facilities, would you be agreeable to RENTING
space to activities and programs held for the
benefit of people outside A.B. or offered for
financial gain or as a promotional activity for
future sales?
YES ! NO / Would you approve surcharges on tickets, players,
users from outside A.B.?
YES I NO Do you think every user of our facilities should
have to put down a CLEANING/KEY DEPOSIT which can
be refunded if everything is fine.
YES 5( NO / Do you favor long term, annual, and contractual
arrangements for our public facilities (e.g.
Little League, ABET, YMCA, etc. ) ?
If you voted yes to the above question, please
check the items below which you believe should
be in an annual contract:
t4 / YES NO Proof of insurance in a predetermined amount.
YESN3 NO Z Financial statement. How often? ‘14)&40
0
z
YES Y NO I Roster of players, Roll of members or subscribers.
YES NO Every contract renewable annually.
YES J NO Calendar specifying the exact blocks of time,
facilities needed, etc. provided IN ADVANCE of the
season. (All times not specified are subject to
being let! )
YES 3 NO 2 If salaries are to be paid, the amount should be
specified up front and in advance, and shown in any
any all financial statements submitted to the City.
YES s NO Clauses which hold the City harmless.
At YES S NO Special signs may be used with the permission of
( ) director of Parks or ( / ) the City Commission
or (3 ) the City Manager provided they are removed
after the season or activity.
4' YES 4 NO Special Charges negotiated for extraordinary or
expensive requests or usages: ball park lighting,
tennis lights, permanent storage, set up, etc.
By whom should they be negotiated?
e a / COMM/s54.1 rG t W,b 44 iDeD
YES Jr NO Proof of non-profit, tax exempt status.
Other suggestions:
YES S. NO Beyond contractual annual usages, A.B. facilities
will be provided on a first come, first served
basis.
YES tic NO Would you support a small annual revenue flow to
the Parks and Recreation Board to challenge them
to implement programs which would be provided by
volunteers so that there is little or no cost
for personnel?
YES ( NO / Should we negotiate a new contract with the WMCA
whereby they provide some minimal involvement in
the park for children through adults (e.g.
providing and collecting nets, balls, bats, etc.
so others may use the park) ?
YES si NO 2 Should we negotiate a broader spectrum of Y
activities which they would staff and for which
they could charge?
4 ) ' YES ,3 NO l Would you consider contracting with ABET/Carson
Merry to provide a Performing and Fine Arts
Center for Atlantic Beach in the Adele Grage
Center?
If you answered yes above, please continue with the
following questions:
P1N% A YES 1 NO A. Would you be prepared to allow ABET rather
extensive use and control of the front half of the
Adele Grage Com. Cntr.
/04 / YES 3 NO In lieu of rent, would you agree to the Thursday
night free, lower ticket prices for A.B. residents,
perhaps scholarships for dramatics in some
relationship to number of paying students?
Do you have any other helpful insights or
suggestions?
THANK YOU VERY MUCH!
,
or,
4f�( 6: a G
i
........)-
• • f
Barnett
Bank Barnett Bank
of Jacksonville, N.A.
50 North Laura Street
Post Office Box 990
Jacksonville, Florida 32231-3000
June 9, 1993
City of Atlantic Beach
800 Seminole Road
Atlantic Beach, Florida 32233
Attn: Honorable William I. Gulliford, Jr., Mayor
Attn: Mr. Kim D. Leinbach, City Manager
Attn: Mr. Kirk R. Wendland, Director of Finance
Re: Letter of Commitment for the Purchase of up to $10,000,000
in Tax-Exempt Revenue Notes/City of Atlantic Beach Water
and Sewer Refunding and Capital Improvements Project
Gentlemen:
Barnett.Bank of Jacksonville (the "Bank") has approved the purchase of up to
$10,000,000 in Tax-Exempt Revenue Notes (the "Notes")to be issued by the City of Atlantic
Beach (the "City"), the proceeds of which will be used by the City (i) to refund certain
obligations of the City, and (ii) to construct the water and sewer capital improvements (the
"Improvements") described in the City's Request for Proposal (the "RFP") dated April 6,
1993 (the "Project"), subject to, but not limited to, the terms, requirements and conditions
of this Commitment Letter.
TERMS, REQUIREMENTS AND CONDITIONS
1. Borrower: City of Atlantic Beach
2. Purpose: The proceeds of the Notes will be used to (i) finance design,
engineering, construction and other eligible costs of the
Improvements, (ii) repay certain existing debt of the City
consisting of the outstanding principal amounts of the City's
Oak Harbor Bonds, Buccaneer Bonds and State Pollution
Control Bonds, Series "Q", and (iii) pay costs of issuance and
other qualified costs and expenses, all as set forth in a projected
I
City of Atlantic Beach
June 9, 1993
Page 2
use of funds schedule to be approved by the Bank and the City
on or before the issuance of the Notes.
3. The Notes:
A. Principal Amount:
Up to $10,000,000 or a lesser amount mutually acceptable to the Bank and
the City.
B. Interest Rate:
The Notes will constitute "qualified tax-exempt obligations" ("Qualified Tax-
exempt Obligations") under Section 265 of the Internal Revenue Code of
1986, as amended (the 'Tax Code"), and the fixed interest rate applicable for
the term of the Notes will be 5.35% per annum, based on a 360-day year.
C. Late Payment Penalty and Default Rate of Interest:
A late payment penalty with respect to each late payment of principal or
interest on the Notes will be payable in an amount equal to five percent (5%)
of the late payment, not to exceed $250.00 in respect of any particular late
payment. In addition, interest shall accrue on overdue payments from the due
date thereof until paid in full at an annual interest rate equal to the sum of
five percent (5%) plus the annual rate of interest otherwise applicable to the
Notes.
D. Maximum Rate Provision:
The City will be entitled to a refund of all interest in excess of the maximum
rate allowed by law. If the interest rate is decreased because of this provision,
then the rate will be increased during subsequent periods (up to the maximum
rate allowed by law) until the Bank has received all amounts which it
otherwise would have received.
E. Draw-down Note:
The Notes will be issued in the form of a single draw-down note which
provides for periodic disbursement of funds until the authorized total principal
amount has been disbursed. The total principal amount will be disbursed
within the 36-month period following the closing date, unless a longer period
is agreed to in writing by the City and the Bank.
City of Atlantic Beach
June 9, 1993
Page 3
F. Repayment Terms:
(1) Quarterly Payments
Interest only will be payable on October 1, January 1, April 1 and July
1 of each year beginning October 1, 1993, and continuing through and
including July 1, 1996. Payments of principal and interest will be
payable on each October 1, January 1, April 1 and July 1 of each year
beginning October 1, 1996, and continuing through and including July
1, 2008, in amounts which will be sufficient to fully amortize the
principal of the Notes in equal quarterly installments during such
period. All outstanding principal, together with accrued and unpaid
interest thereon, will be paid no later than July 1, 2008.
(2) Prepayment
The Notes may be prepaid, in whole or in part, without penalty or
premium, at any time prior to maturity. The City shall provide the
Bank with ninety (90) days written notice of its election to prepay the
Notes. The Notes must be prepaid (without penalty) to the extent that
any portion of the proceeds of the Notes are not used for the Project
as provided in the final Note documents.
G. Reserve Fund:
There shall be established a Note fund (the "Debt Service Reserve Fund"),
which shall be maintained for the benefit of the Noteholders in an amount
not less than$500.000.00 (the"Reserve Amount"). Funds in the Debt Service
Reserve Fund may be used only for the payment of debt service on the Notes,
or, with the consent of the Bank, for prepayment of the Notes. The funds to
be deposited in the Debt Service Reserve Fund shall be paid from available
revenues of the City(including from revenues available from water and sewer
charges remaining after payment of debt service) in equal quarterly amounts
of $41,666.61, commencing on July 1, 1993 and continuing on each October
1, January 1, April 1 and July 1 thereafter until amounts on deposit therein
shall equal the Reserve Amount. The Debt Service Reserve Fund shall be
maintained in an account at the Bank, and invested in interest-bearing
securities chosen from authorized investment vehicles to be described in the
final documents.
City of Atlantic Beach
June 9, 1993
Page 4
410
G. Fees:
The City shall pay to the Bank simultaneously with the closing of the Notes
a fee of $25,000 for establishing the financing described herein.
4. Tax-Exempt Status:
The final documents will contain covenants requiring the City to comply with all laws
required to preserve the tax-exempt status of the Notes, including allocations of
reimbursement proceeds and covenants on the use thereof, if applicable. The City
will covenant that it (i) will not use the proceeds of the Notes in any manner which
would cause the interest on the Notes to be or become includable in the gross
income of the owner thereof for federal income tax purposes or cause the Notes not
to be Qualified Tax-exempt Obligations, (ii) will not do any act or fail to do any act
which would cause the interest on the Notes to become includable in the gross
income of the owner thereof for federal income tax purposes or cause the Notes not
to be Qualified Tax-exempt Obligations, and (iii) will comply with all provisions of
the Tax Code necessary to maintain the exclusion of interest on the Notes from the
gross income of the owner thereof for federal income tax purposes, including, in
particular, the payment of any amount required to be rebated to the United States
• Treasury pursuant to the Tax Code. The final documents will contain provisions
regarding an increase in the interest rate applicable to the Notes to preserve to the
Bank its after-tax yield on the Notes; provided, however, that no such increase shall
be applicable if the cause thereof is due to factual circumstances of, and unique to,
the Bank. The Bank and the City shall cooperate, at the expense of the City except
as to matters described in preceding proviso, to minimize, to the extent practicable,
the impact of any tax law changes or circumstances or events giving rise to an
increase in the rate applicable to the Notes, and any such increases shall deferred for
such period of time as the Bank and the City shall agree in the final documents.
5. Rebate:
The City will be responsible for determining any rebate to the United States
Treasury which is required by Section 148 of the Tax Code. However, if the City
fails, in the Bank's judgment, to properly determine such rebate amount then the
Bank may, at the City's expense,hire counsel, accountants or experts which the Bank,
in its sole discretion, determines advisable to determine the amount, due dates and
any other rebate requirements and the City shall remit such rebate amount to the
federal government not later than the due date thereof. The Bank will not be liable
for any failure to comply with Section 148 of the Tax Code.
City of Atlantic Beach
June 9, 1993
Page 5
6. Security:
The City will draw-down and apply a portion of the proceeds of the Notes to the
defeasance and subsequent retirement of the City's Oak Harbor Bonds on March 1,
1994, to the defeasance and subsequent retirement of the City's Buccaneer Bonds on
May 15, 1994 and to the defeasance and subsequent retirement of the State Pollution
Control Bonds, Series "0". The Oak Harbor Bonds are secured by a lien upon the
net revenues of the Oak Harbor water and sewer system. The Buccaneer Bonds are
secured by a lien upon the net revenues of the Buccaneer water and sewer system.
The State Pollution Control Bonds, Series "0" are secured by a lien upon and pledge
of the net revenues of the City's sewer systems. Upon the defeasance of such Bonds,
the Notes will be secured by a first lien upon and pledge of the net revenues of all
of the City's water and sewer systems (the "Pledged Revenues"). The City's water
and sewer revenues, and its accounting records in respect thereof, shall be
consolidated following the redemption of the Oak Harbor and Buccaneer Bonds.
"Net revenues" will be defined in the final Note documents. The City will covenant
that, to the extent the Pledged Revenues are not sufficient to satisfy payments under
the Notes, the City will budget and appropriate from legally available non-ad valorem
funds the amounts necessary to make all payments due under the Notes. The City
agrees to execute any and all documentation in connection with the Notes as may be
reasonably required by the Bank and its counsel to provide such lien upon and
pledge of the Pledged Revenues to secure the repayment obligations of the City.
7. Covenants:
The final documents relating to the Notes will include the following covenants which
may be deviated from only with the Bank's consent:
A. The City will submit annual audited financial statements prepared in
accordance with generally accepted accounting principles by the 120th day
following the end of each fiscal year.
The City will maintain a system of accounting in accordance with generally
accepted accounting principles, and will furnish a certificate of the
independent certified public accountants preparing such statements addressed
to the Bank stating that either (i) during the course of their preparation of the
financial statements of the City nothing came to their attention which led
them to believe that either the City was in default under the Note documents,
or (ii) the nature and extent of any matter which led them to believe that such
default had occurred.
City of Atlantic Beach
June 9, 1993
Page 6
The City shall also provide the Bank with such other financial information as
it shall reasonably request from time to time. Such information may include,
but is not limited to, financial information relating to the Project and the
Pledged Revenues.
B. The City shall covenant to set and increase water and sewer service charges
at levels which are sufficient to (a) pay the expenses for operation,
maintenance, repairs and replacements of the City's water and sewer systems,
(b) pay the principal of and interest on the Notes and all other indebtedness
relating to the City's water and sewer systems as the same shall become due
and payable, and (c) fund a restricted reserve account with annual amounts
equal to ten percent (10%) of the sum of items (a) and (b). The moneys in
the restricted reserve account will be used by the City for the purpose of
funding the quarterly Debt Service Reserve Fund installments, and paying the
cost of extensions, improvements or additions to, or the replacement or
renewal of capital assets of, or extraordinary repairs of, the City's water and
sewer systems; provided, however, if other available moneys are insufficient
to pay when due the principal of and interest on any indebtedness relating to
the City's water and sewer systems, the moneys in such restricted reserve
account will be used by the City to pay the debt service on such indebtedness.
C. The City will immediately give the Bank written notice of any Event of
Default or an event which with the passage of time would become an Event
of Default under the Note documents of which it shall have actual knowledge
or written notice.
D. The Bank shall have the right, at all reasonable times, to enter and to
examine and inspect the Project. The Bank and its duly authorized agents
shall also be permitted, at all reasonable times, to examine the books and
records of the City relating to the Project. The Bank shall receive notice of,
and shall be entitled to attend (by and through its agents) meetings of the
City staff and its consultant engineers or other consultants regarding
substantive and material matters concerning the construction, scheduling, cost
or revenues associated with the Project.
E. The City shall timely obtain all necessary permits and approvals required for
the completion of the Project. The City shall comply with all federal, state
and local laws applicable to the Improvements and the operation of its water
and sewer services, including all conditions of applicable permits, licenses and
interlocal agreements related thereto. The City shall provide a detailed
description of the components of the Project, together with a projected
commencement and completion schedule, which shall be acceptable to the
Bank in its reasonable judgment, prior to the closing of the Notes.
City of Atlantic Beach
June 9, 1993
Page 7
F. The final documents shall contain additional covenants of the City regarding,
among other things,maintenance of insurance,diligent collection of water and
sewer service charges, no permitting of any competing utility, no provision of
free service, retaining consulting engineers as necessary for the Project,
compliance with all applicable laws, not permitting any other indebtedness
secured by the Pledged Revenues, except as described below, and no sale or
mortgage of any of the City's water and sewer plant and equipment.
8. Additional Debt:
The City may secure additional notes with a lien on the Pledged Revenues only if:
A. in the case that the lien of such additional notes is on a parity with the Bank's
lien, then:
(1) acceleration of such additional notes is an event of default under the
Bank's Notes; and
(2) the City shall have obtained a certificate of an independent certified
public accountant to the effect that the gross revenues of the City's
water and sewer systems for the immediately preceding fiscal year or
the immediately preceding twelve (12) consecutive months,adjusted as
hereinafter provided, would have been sufficient to provide a "Debt
Service Coverage Ratio" for the City's total water and sewer system
indebtedness of at least 1.20 to 1.00, assuming that the maximum
annual debt service for the additional notes was included in the
indebtedness relating to the City's water and sewer systems. The Bank
and the City shall negotiate the exact definition and calculation of the
"Debt Service Coverage Ratio", which shall generally be the ratio of
net cash revenues divided by aggregate interest and principal for the
City's water and sewer system. For such purpose, the gross revenues
of the City's water and sewer systems may be adjusted by the
independent certified public accountant upon the written advice of the
City's consulting engineers, at the option of the City, to reflect (i) if the
City, prior to the issuance of such additional notes, shall have
increased water and sewer service charges, the gross revenues for the
12-month period may be adjusted to show the gross revenues which
would have been derived if such increased water and sewer service
charges had been in effect during the entire 12-month period, (ii) if the
City, prior to the issuance of the additional notes, shall have acquired
or contracted to acquire a water or sewer system the cost of which will
be paid from all or part of the proceeds of such additional notes, then
City of Atlantic Beach
June 9, 1993
Page 8
the gross revenues may be adjusted to reflect the gross revenues which
would have been derived from said existing water and sewer system as
if such existing system had been a part of the City's water and sewer
systems during such 12-month period, (iii) if the City will be
constructing or acquiring extensions or improvements to the City's
water or sewer systems from the proceeds of such additional notes and
has established rates by official action to be charged and collected
from the users of such facilities, such gross revenues may be adjusted
to reflect the revenues estimated by the consulting engineers to be
derived during the first 12 months of operation after completion of the
construction or acquisition of such extensions or improvements;
or
B. in the case that the lien of such additional notes is subordinate to the Bank's
lien, then:
(1) acceleration of such additional notes shall be an event of default under
the Bank's Notes; and
(2) the subordination provisions of such notes shall be acceptable to the
Bank.
9. Professional Consultants:
The City shall engage a consultant engineer and certified public accountants
acceptable to the Bank (i) to prepare an engineering feasibility study and (ii) to
prepare (or review the City-prepared) forecasts of Pledged Revenues, Project Costs
and debt service coverage, respectively. The engineering feasibility study shall
include a description of existing facilities,proposed improvements and costs, affected
service areas and capacities relative to forecasted demand (including, without
limitation, capacities under any required permits and intergovernmental or private
contracts for water source, sludge disposal, etc.), as well as addressing environmental
and permitting requirements and the status of the City's compliance with all existing
laws, regulations, rules and permits. The City shall also engage a consultant engineer
acceptable to the Bank to act as construction manager for those portions of the
Project as the Bank shall require. All such professional consultants shall be engaged
by the City, and the City shall provide copies of their reports and memoranda, etc.
to the Bank.
City of Atlantic Beach
June 9, 1993
Page 9
10. Disbursement (Draw-down) Schedule:
All disbursements (draw-downs) for each construction project will be subject to
approval by the Bank in accordance with its normal construction loan procedures and
the terms of the final Note documents,which generally require written disbursement
requests which shall be accompanied by appropriate certificates of consultant
engineers and City officials regarding work performed, work remaining, percentages
of budget disbursed and undisbursed, and statements regarding funds required to
complete the particular construction project. No proceeds shall be disbursed for
construction costs for a particular construction project until a construction schedule,
construction budget and fixed price construction contracts (including performance
and payment bonds) have been provided to and approved by the Bank; however,
upon request by the City, the Bank will negotiate the terms of disbursements to pay
the costs of design and engineering for the Improvements prior thereto.
11. Conditions Precedent to the Purchase of Notes:
In addition to the execution and delivery of final Note documents acceptable to the
Bank on the terms and conditions contained herein (which documents shall contain
the complete conditions to Note purchase), the obligation of the Bank to purchase
the Notes shall also be subject to satisfactory review by the Bank and its counsel of
documents establishing the authority and ability of the City to issue the Notes, to
refund the existing debt, to set water and sewer rates, to operate the water and sewer
system, to engage in the Project and to prosecute the construction of the Project.
The City and its counsel shall cooperate with the Bank and its counsel in providing
such documents and other materials as the Bank or its counsel shall request. In
addition, the City shall consult with the Bank and its counsel regarding the various
service areas of the City's existing water and sewer systems, and the consolidation of
the operating accounting system therefor.
12. Closing Costs and Service Charges:
The City will pay all closing costs and fees, including but not limited to, the Bank's
attorneys' and paralegals' fees. If the Note issue does not close as a result of any
action taken or failed to be taken by the City and within the control of the City, the
City agrees to pay, within ten (10) days of demand, all expenses incurred by the
Bank, including the Bank's reasonable attorneys' and paralegals' fees and expenses
in addition to any reasonable fees incurred by the Bank in collecting such costs and
fees. If the Note issue does not close as a result of any action taken or failed to be
taken by the Bank and within the control of the Bank, the Bank agrees to pay, within
ten (10) days of demand, all expenses incurred by the City, including the City's
reasonable attorneys' and paralegals' fees and expenses in addition to any reasonable
fees incurred by the City in collecting such costs and fees.
City of Atlantic Beach
June 9, 1993
Page 10
13. Counsel Review:
The law firm of Mahoney Adams & Criser, P.A. will act as Bank counsel at the
expense of the City. Legal fees for Bank counsel will not be in excess of $25,000.
All documentation executed and delivered in connection with the issuance of the
Notes shall be prepared by the Bank's counsel, including but not limited to, a
resolution to be adopted by the City Commission authorizing the issuance of the
Notes, the nonarbitrage certificate, I.R.S. Form 8038-G and Florida Division of Bond
Finance Forms 2003 (Bond Information Form) and 2004-B (Bond Disclosure Form-
Negotiated Sale), and shall be in form and substance satisfactory to the Bank and its
counsel and the City and its counsel and all other legal matters shall be satisfactory
to the Bank's counsel and the City's counsel. As a condition to the Bank's obligation
to purchase the Notes, the Bank's counsel shall provide to the Bank and the City its
favorable opinion concerning the tax-exempt status of the Notes.
The City agrees to provide opinions of counsel for the City addressing such legal
issues concerning the Notes and the Project as the Bank or its counsel may
reasonably require, including, without limitation, the organization of the City, the
authorization for the execution and delivery of the Note documents, the proper
execution and delivery of the Note documents, the enforceability of the Note
documents, the absence of violations of usury or consumer credit laws as a result of
the payment of any interest, fees or charges due under the Note documents, and the
absence of litigation or pending or threatened litigation.
14. Liability Clause:
Any reviews or approvals by the Bank will be for the benefit of the Bank and not the
City. The Bank has no liability for any defects including but not limited to, structural
or material defects in the Project.
15. Waiver of Jury Trial:
The Bank and the City hereby knowingly, voluntarily and intentionally waive any
right either may have to a trial by jury in respect of any litigation based on this
Commitment Letter, or arising out of,under or in connection with this Commitment
Letter or any related Note document, or any course of conduct, course of dealing,
statements (whether oral or written) or actions of any party hereto or to any related
Note document (or of any such party's affiliates, agents or employees). The parties
consent to jurisdiction and venue in the state or federal courts in Duval County,
Florida, in the event of any such litigation. This provision is a material inducement
for the Bank and the City entering into the subject Note transaction. The Note
documents shall include such additional requirements concerning jury trial waivers
as the Bank may require.
City of Atlantic Beach
June 9, 1993
Page 11
16. Required Provisions:
The final Note documents will include the Bank's standard provisions relating to tax-
exempt financing and such other instruments and documents as the Bank or its
counsel shall reasonably require. The City will take all actions, including but not
limited to the adoption of an authorizing resolution in form satisfactory to the Bank
and the City and their respective counsel, prepared by the Bank's counsel, necessary
to designate and qualify the Notes as Qualified Tax-exempt Obligations under the
Tax Code.
17. Default, Credit or Financial Condition:
The City's failure to comply with the material terms, requirements and conditions of
this Commitment Letter will constitute a default and, if such default shall continue
for a period of thirty (30) days after written notice thereof shall have been received
by the City from the Bank, unless waived by the Bank in writing or cured, such
default will relieve the Bank of any obligations under this Commitment Letter.
The Bank's failure to comply with the material terms, requirements and conditions
of this Commitment Letter will constitute a default and, if such default shall continue
for a period of thirty (30) days after written notice thereof shall have been received
by the Bank from the City, unless waived by the City in writing or cured, such default
will relieve the City of any obligations under this Commitment Letter.
The Bank will not be obligated to purchase the Notes if any adverse change has
occurred in the credit or financial conditions of the City or if the City is involved in
any bankruptcy, reorganization or insolvency proceedings.
18. Assignment and Assumption:
This Commitment Letter may not be assigned without prior written approval of the
Bank.
19. Governing Law:
This Commitment Letter and all documents to be delivered in connection herewith
shall be governed by, and construed in accordance with, the laws of the State of
Florida without reference to the choice of law rules or the conflict of law rules of
that State.
' City of Atlantic Beach
June 9, 1993
Page 12
20. Acceptance and Expiration:
Please inform us of your acceptance by signing and returning the enclosed copy of
this Commitment Letter by 5:00 p.m., EDT, on June 30, 1993. If the closing for the
Notes does not occur on or before July 1, 1993, the Bank's obligation hereunder shall
be extended for an additional thirty (30) days, and will thereafter automatically
terminate. The Bank's commitment to purchase the Notes at the interest rate set
forth herein shall terminate on July 31, 1993, unless the Bank and the City mutually
agree to extend the term of this Commitment Letter.
Sincerely,
BARNETT BAN . 0 ACKS•NVILLE, N.A.
/
By: ®%.%' i/�i .1.-
'obert A. Bares
ts: Vice President
(AB:Com-Itr.3)
City of Atlantic Beach
June 9, 1993
Page 13
ACCEPTANCE
We accept this commitment and agree to its terms, requirements and conditions, this
day of , 1993.
BORROWER:
CITY OF ATLANTIC BEACH
By:
William I. Gulliford, Jr.
Its: Mayor
By:
Maureen King
Its: City Clerk
By:
Kim D. Leinbach
Its: City Manager
MINUTES OF THE JOINT WORKSHOP MEETING OF ATLANTIC BEACH CITY
COMMISSION AND COMMUNITY DEVELOPMENT BOARD HELD IN CITY HALL, 800
SEMINOLE ROAD AT 6:00 PM ON MONDAY, JUNE 14, 1993.
COMMISSION MEMBERS PRESENT:
William I. Gulliford, Jr. , Mayor
Glenn A. Edwards
Lyman T. Fletcher
Adelaide R. Tucker
J. Dezmond Waters, III
COMMUNITY DEVELOPMENT BOARD MEMBERS PRESENT:
W. Gregg McCaulie
Robert Frohwein
Ruth Gregg
Mark McGowan
Mary Walker
Don Wolfson
ALSO PRESENT: Kim D. Leinbach, City Manager
Alan C. Jensen, City Attorney
Maureen King, City Clerk
The meeting was called to order by Mayor Gulliford. Gregg
McCaulie, Chairman of the Community Development Board, commented
that a number of requests for variances which had been denied by
the Community Development Board had been appealed to the City
Commission. In some instances the decision of the Community
Development Board had been upheld, but on at least one occasion the
decision had been overturned. There was some confusion on the part
of the Community Development Board regarding this action and he
felt there needed to be a pooling of thoughts and some direction
given to the Community Development Board.
Discussion ensued regarding a decision of the Community Development
Board which was overturned by the City Commission in a request for
a variance by Mrs. Cresson. Mayor Gulliford indicated he felt the
main problem was that the current code was vague and difficult to
interpret. He said an ordinance had been drafted to amend the
definition of accessory uses and accessory structures and he hoped
this would be helpful in handling similar requests in the future.
He felt it was the interpretation of the City Commission that Ms.
Cresson' s request was for authorization to construct an accessory
building and that a variance was not needed.
Commissioner Fletcher felt there needed to be a standard of review
which would be used in appeals brought to the City Commission so
that there could be some consistency in the handling of those
matters.
1
Page Two
Minutes - Joint Workshop
June 14, 1993
Further discussion ensued regarding the definition of accessory
structures and Commissioner Waters felt the central issue was
whether the City Commission and Community Development Board wanted
to recognize and enforce setbacks, and the type of structures which
should be considered accessory buildings. The city code currently
allows only one accessory building and he felt a more equitable
method may to establish a maximum number of square feet or a
percentage of lot size which could be covered by accessory
structures.
Since Flag Day ceremonies were scheduled for 7:00 PM at the public
safety building, Mayor Gulliford adjourned the meeting at 6: 55 PM.
vJ
Maureen King, Ci C13,k
MINUTES OF THE SPECIAL CALLED MEETING OF ATLANTIC BEACH CITY
COMMISSION HELD IN CITY HALL, 800 SEMINOLE ROAD, AT 7:30 PM ON
WEDNESDAY, JUNE 2, 1993.
Present: William I . Gulliford, Jr. , Mayor
Glenn A. Edwards. Commissioner
Lyman T. Fletcher, Commissioner
Adelaide R. Tucker, Commissioner
J. Dezmond Waters, III, Commissioner
And: Kim D. Leinbach, City Manager
Alan C. Jensen, City Attorney
Maureen King, City Clerk
1. Presentation of check relative to purchase of defibrillator
for the Fire Department
Capt. Edward Graham, U.S. Navy ( Ret. ) reported the residents of
Fleet Landing had contributed towards the acquisition of an
automatic electronic defibrillator for Atlantic Beach Fire
Department. He introduced Ms. Wheeler and Ms. Emerson who
presented checks in the amount of $4, 730.00 and issued a challenge
to the residents of Sevilla Condominiums and other Atlantic Beach
residents to match the Fleet Landing contributions, and hoped
adequate funds would be contributed to enable the city to purchase
two units so one could be placed on each fire truck. Chief
Williams reported the city had already received approximately
$1, 200.00 and he thanked those who had organized the fund raising
efforts.
Mayor Gulliford indicated he would issue a Proclamation making all
contributors Honorary Atlantic Beach Firefighters, and requested a
Resolution be prepared for presentation to the Fleet Landing
residents, and that a duplicate of said resolution be displayed in
an appropriate location in City Hall .
Mayor Gulliford announced he would attend a meeting relative to the
law suit with the City of Jacksonville at 9 :00 AM the following
morning. He indicated City Manager Kim Leinbach, Deputy City
Manager Jim Jarboe, City Attorney Alan Jensen, Committee Chairman
Ray Salman, and Attorney John Duvault would also attend this
meeting.
2. Report and recommendation concerning purchase of a second
sanitation vehicle
Kelly Burton reported in October 1992, the city had received bids
for the purchase of two 1993 Pak Rat sanitation vehicles. He
indicated one of these vehicles had been received and was in
service but the low bidder, Jacksonville Mack, had advised they
were unable to provide the second 1993 model but could provide a
1994 model for an additional $1 , 313.00. and city staff had been
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Minutes of Special Called Meeting
June 2, 1993
unable to negotiate further. They then contacted the other bidders
and Solid Waste and Recovery indicated they could provide an Isuzu
chassis with a Pak Rat body which would meet specifications at a
cost of $33, 500.00. He indicated this was the last 1993 chassis
available in the eastern United States and the dealer had agreed to
hold it only until 5:00 PM the following day. He requested
authorization to purchase this equipment from Solid Waste and
Recovery at a cost of $33, 500.00, which was less than the Solid
Waste original bid price, and about $1, 000.00 less than the price
being asked by Jacksonville Mack. Following further discussion,
Commissioner Fletcher moved to authorize the purchase of a 1993
Isuzu chassis with a Pak Rat body from Solid Waste and Recovery at
a cost of $33, 500.00, since Jacksonville Mack had notified the city
in writing that they could no longer meet the obligations of their
bid. The motion was seconded by Commissioner Edwards and was
unanimously approved. Mayor Gulliford requested that the second
low bidder, Moody Truck Center, also provide written notice that
they are unable to provide the specified equipment.
The City Attorney presented an agreement signed by counsel for Mr.
Blackard to resolve the matter of the Sixteenth Street beach
access. He also provided a sketch of the easement and proposed
beach dune overwalk, copy of which is attached hereto and made a
part hereof. The mayor reviewed the sketch and indicated the
agreement required a few minor modifications to the original plan.
Commissioner Tucker moved to accept the proposal offered by Mr.
Blackard to resolve the beach access problem at Sixteenth Street.
The motion was seconded by Commissioner Edwards and carried
unanimously.
3. Discussion and related action regarding the 1993/94 fiscal
year budget
Mayor Gulliford indicated the city commission, earlier in the year,
had acted on and agreed to certain personnel matters such as
increased pension benefits. Those benefits would require
additional funding in the operating budget for fiscal year 1993/94
and he said he had asked the City Manager and Finance Director to
prepare estimated budget figures to provide for the increased
benefits as well as any other matters they deemed necessary.
Finance Director Kirk Wendland distributed a graph illustrating the
distribution of Atlantic Beach property taxes which revealed that
only 11 . 6% of tax revenues were returned to Atlantic Beach.
Mr. Wendland then explained that personnel costs represented two-
thirds of the general fund expenditures and provided a summary of
anticipated personnel costs based on the current pay plan with no
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Minutes of Special Called Meeting
June 2, 1993.
additions, the current pay plan with the addition of costs related
to applicable bonuses, and costs of funding a modified pay plan
based on a recent survey of other cities with similar populations
including costs related to applicable bonuses and pension benefits
and the addition of the full-time Deputy City Manager. He
explained the various proposals in detail. He indicated one mill
of property tax represented approximately $436, 000.00 and an
increase of one mill in property taxes would be required to fund
the complete package.
Mr. Wendland explained in detail the costs related to each item and
asked the Commission which of the options they wished to include in
the proposed budget for FY 1993/94.
Discussion ensued regarding the city' s pay scale and Commissioner
Waters felt the city needed to hire additional workers at the lower
levels. Discussion ensued regarding the disparity which existed
between certain job classifications and Alan Potter, 374 Second
Street, felt an increase of an equal dollar figure to all employees
would be a fairer method of granting across the board increases and
would help to lessen the disparity, especially for the lower paid
employees. Mayor Gulliford pointed out Capt. Campbell had surveyed
other cities regarding pay scale and job classifications and data
from that survey had been taken into consideration in preparing the
projected figures which had been presented.
Following further discussion, Commissioner Fletcher moved to direct
the City Manager to prepare the budget based on the figures
presented to provide for an adjustment to the pay plan in
accordance with the survey conducted by Capt. Campbell; to provide
for the additional pension benefits; and to provide funds for a
full time Deputy City Manager. The motion was seconded by
Commissioner Tucker and carried unanimously.
4. Any other business
The City Manager felt the city had two options regarding the Gulf
Breeze bonds: ( 1 ) the city could prepay the Gulf Breeze bonds
using a fund source of its choice which would represent the
greatest savings to the city, or ( 2) prepayment could be made
through the Arcadia pool, which would represent a savings of
$90, 000.00 over the original agreement. Gulf Breeze had indicated
prepayment could only be made through the Arcadia pool and he felt
the city needed to solicit a legal opinion regarding prepayment
using a fund source of the city' s choice.
Kirk Wendland indicated Gulf Breeze was fairly close to closing the
deal with Arcadia and a decision regarding the method of prepayment
would need to be made very soon. Mr. Potter said he was very