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HomeMy WebLinkAbout2008 12 15 Regular 601 Arts Festival BudgetCity of Winter Springs Special Meeting December 15, 2008 121508_CO M M_Specia I_Meeting_Regular_601_Arts_Festiva I_Bu dget_Review COMMISSION AGENDA ITEM 601 December 15, 2008 Special Meeting Consent Informational Public Hearing Regular X MGI~~"1 /DEPT. Authorization REQUEST: The City Manager requesting a discussion of the Arts Festival Budget. PURPOSE: This agenda item is needed for the Commission to clarify its policy regarding the Arts Festival in order to resolve a funding issue with the Chamber of Commerce. ISSUE: The Chamber of Commerce believes the City owes the Chamber $2,044. Based upon my understanding of the facts, my authority to refund the Chamber is limited to $1,030. CONSIDERATION: On September 8, 2008 the Community Development Department presented Regular Agenda Item 601 establishing a $9,845. Budget for the City's expenses involved in the event. The Commission approved a budget of $6,470. to be covered by donations collected by the City and the Chamber with the following caveats. 1. The Chamber would commit up to $6,470. 2. If the parties were not successful in raising donations the City would cover the shortfall. 3. The City's actual cost was $8,968. 4. Total Donations were: Bright House Donations Available to City $6,470 Bellus Insurance $ 455 Waste Pro 1029 Total Donations $7,954 1 City of Winter Springs Special Meeting December 15, 2008 121508_COM M_Specia I_Meeting_Regular_601_Arts_Festival_Budget_Review 5. Based upon Donations there is a $1,104 shortfall as follows: Cost $8,968 Donations 7 954 Shortfall $1,014 6. As provided in the WLOQ Jazz Festival Settlement Agreement which provides that the $1,104 Chamber donation can be utilized for any future event, I have applied the $1,014 from the Settlement Agreement to cover the balance of the cost as follows: Cost 2C~. Revenue Donations: Bright House $6,470 Bellus Insurance $ 455 Waste Pro 1029 Total Donations $7,954 WLOQ Settlement $1,029 Tota I 7. Chambers Position The Chamber represents that the City owes them $2,044 as follows: 1) Their share of the $7,500 Bright House Donation Bright House Donation $7,500 Chamber Pledge (6 470 Chamber Share $1,030 2) Credit for the WLOQ Settlement 1 014 Total Q4_ 8. Citv Staff Position The expenditures in excess of the $6,470 budget were absolutely essential to provide a safe environment for the Arts Festival and to accommodate unanticipated site preparation needs to promote a successful event. Nothing in the Commission's motion gives the Chamber a reasonable claim for the $1,014 WLOQ Settlement Revenue. 2 City of Winter Springs Special Meeting December 15, 2008 121508_COMM_Specia I_Meeting_Regu lar_601_Arts_Festival_Budget_Review The Settlement Agreement clearly provides that the revenue from the Settlement Agreement can be utilized to offset the City's cost of a future event. Utilization of the $1,014 to pay the overage cost for the Arts Festival is clearly consistent with the Commission's authorization provided in the September 8, 2008 Regular Agenda Item 601. It is also clearly consistent with the Commission's stated goal of funding the event from donations. 9. Alternative "1" Upholding City Staff Position If the Commission upholds the staff's position the City will reimburse the Chamber $1,030. The Project will be paid totally from funds authorized for City events. There will be no need to commit General Fund dollars to fund the event. 30. Alternative "2" If the Commission upholds the Chambers position, which staff does not believe to be a reasonable claim on City revenues, the City will reimburse the $2,014 after the Commission identifies a source of revenue to replace $1,014 in WLOQ's Settlement Agreement revenue. RECOMMENDATION: It is recommended that the Commission review the facts in this matter and decide which alternative is in the best interest of the public. ATTACHMENTS: December 3, 2008 Charles Lacey Letter to City Manager November 18, 2008 City Manager Letter to Charles Lacey September 8, 2001 Regular Agenda Item 601 and Minutes September 8, 2008 Regular Agenda Item 602 and Minutes COMMISSION ACTION: 3 Oviedo -Winter Springs Regional Chamber of Commerce 1511 E. State Road 434, Suite 2001 Winter Springs, Florida 32708 RECEIVED DCC 0 4 2008 CITY OF WINTER SPRINGS December 3, 2008 City Manager Mr. Ronald W. McLemore City Manager, City of Winter Springs 1126 East State Road 434 Winter Springs, Florida 32708-2799 Dear Ron: Thank you your letter of November 18, and, in particular, the opportunity to discuss it with you. First, I want to thank you, the Commission, and the many City employees who helped produce this event. I trust the results were a boost to the City's cultural profile. As a foofiote, we received a "star" rating in Sunshine Artist, which evaluates shows -effectively ranking our Festival of the Arts in the top 100 in the nation. Your letter and our conversation focused on two topics: 1) how sponsorship funds for the OWSRCC Winter Springs Festival of the Arts came to the City, and the accounting thereof; and 2) the history and resolution of an event credit due the Chamber for support of the Latin Fest. We can dispense with Point #2 quickly. We have never questioned the application of the $1,014 (a/k/a Latin Fest) credit. The method employed is entirely satisfactory. The resulting arithmetic is in question, as detailed below, but not the approach. As to Point #1, which you describe as "Why did the City get the Check?": it is not material to us who received the actual check (although I do find it odd that sponsorship funds for our event would flow that way). The essence of the question is the expense that was agreed upon between the Chamber and the City Commission. Once we understand that amount, the calculation of the funds owed to or from the City is easily determined, regardless of who initially received the sponsorship money. Your letter states the obligation to the City incurred by the Chamber is $8,968.54. I submit that the City Commission agreed to a total cost to be paid by the Chamber in the amount of $6,470.00. We relied upon that agreed-upon service level and concomitant cost. I have attached the minutes from the September 8, 2008, meeting of the City Commission, Item 601. We worked diligently with staff to manage the event in a way that reduced the costs, estimates of which were initially over $11,000, to the $6,470 that was approved by the City Commission. Any costs that exceeded that amount, and which were not agreed upon by us, should not be charged to us. If the City actually incurred nearly $9,000 in costs, these overages were at the discretion of the representatives of the City (and may or may not have been worthwhile expenditures). I do not believe that the Chamber can be held responsible for costs that we neither reviewed for their necessity to our event nor approved. Our agreement was for Mr. Ronald W. McLemore December 3, 2008 Page 2 $6,470 in services from the City, and that is what I feel is the correct amount for the Chamber to pay. Based on this rationale, the following arithmetic applies: Service level agreed upon $ 6,470.00 Prior Credit to the Chamber - 1,014.00 Due to the City $ 5,456.00 Presenting Sponsorship funds $ 7,500.00 Excess Revenues over Service Costs $ 2,044.00 Refundable to the Chamber I would like to have the City Commission review this matter at the next meeting as a scheduled agenda item. This would allow them to review all the circumstances in advance. If you do not feel this is the appropriate process, I can initiate the discussion via Public Input. I will depend upon your advice as to the correct course. Thank you for your assistance. If you would like to discuss this further, please contact me at 407- 359-9927 or by email to CAL.cc@QTSCorp.com. Sincerely, cc: Mr. Corydon Skeates CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION REGULAR MEETING -SEPTEMBER 8, 2008 PAGE 8 OF 27 CONSENT 205. Parks And Recreation Department And Public Works Department Requesting Authorization To Award The Contract For Construction Of the Trotwood Park Expansion To BDG Construction Services, LLC. This Agenda Item was not discussed. "MOVE TO APPROVE." MOTION BY COMMISSIONER McGINNIS. SECONDED BY COMMISSIONER BROWN. DISCUSSION. COMMISSIONER KREBS NOTED, "I DON'T NEED, ESPECIALLY THINGS FOR INFORMATIONAL AND CONSENT - I JUST READ IT ON LINE." COMMISSIONER McGINNIS STATED, "I DO." COMMISSIONER KREBS ADDED, "ANDREA (LORENZO-LUACES), IF YOU CAN NOT MAKE ME A COPY, THAT WOULD BE GREAT." MAYOR BUSH THEN SAID, "ANDREA (LORENZO-LUACES), WHY DON'T YOU POLL THE COMMISSIONERS AT A LATER TIME AND ASK HOW THEY WANT THIS; SO, WE CAN SAVE PAPER." VOTE: COMMISSIONER McGINNIS: AYE COMMISSIONER KREBS: AYE COMMISSIONER BROWN: AYE DEPUTY MAYOR GILMORE: AYE COMMISSIONER MILLER: AYE MOTION CARRIED. • :• AGENDA NOTE: THE FOLLOWING REGULAR AGENDA ITEM WAS DISCUSSED AGAIN, AS PREVIOUSLY NOTED ON PAGE 5 OF THESE MINUTES. • • REGULAR AGENDA REGULAR 601. Community Development Department Requests The City Commission Consider Costs To Be Incurred By The City Related To The 2008 Winter Springs Festival Of The Arts And Decide The Level Of Service To Be Provided By The City And A Funding Source For The Corresponding Expenditures. Mr. Charles Lacey, 733 Bear Creek Circle, Winter Springs, Florida: spoke to the City Commission on the upcoming Festival of the Arts. CIrY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION REGULAR MEETING -SEPTEMBER 8, 2008 PAGE 9 OF 27 Mr. Lacy then explained, "None of our events are actually going to be on Tuskawilla [Road] so, it would be possible to leave Tuskawilla [Road] open; we'd just have to pay close attention to the pedestrian traffic that might be crossing Tuskawilla [Road] to get over to the stage and the music events. And, we're very sensitive about the grass and the quality of the shrubbery that is going to be down the center of Blumberg Boulevard, and we've gone to great pains to try to find an aesthetically pleasing way to address that concern." Continuing, Mr. Lacey explained, "So, we've allocated quite a bit of manpower to patrol that azea. I think we're going to place the tents in a way that discourages people from going back in to the nice shrubbery and we're going to have people there from Police Officers to Police Explorers to other volunteers, taking special care to make sure that the pedestrian traffic is first of all, diverted away from that." Discussion followed on parking, volunteers, Police assistance, and deposits. Commissioner Brown asked Manager McLemore, "Have you met with Event Planner - who wanted to work with the City, whose information I have sent you?" Manager McLemore said, "I have not heard back from that person yet." Commissioner Brown added, "She may be here tonight. I think she is going to introduce herself during Public Input. This might be great opportunity to partner with her and see what she might be able to bring to the table over the next month." With further comments, Manager McI:eIllore noted, "I'll be happy to talk with her if you will just give me that discretion and this is not that issue of finding that person. I can have a scope of services for her or anyone else, just for this event, but it will be different from the RFP (Request For Proposal) we're going to put out." Discussion. Mr. Lacey stated, "We are asking for a Waiver of the fees that aze on this that are six thousand four hundred and seventy dollars ($6,470.00) and the refundable deposit and per your suggestion Mayor, any additional funds that come in through. Brighthouse, we would apply that to this dollar first. If it came in excess of that, we would take it, but if we got another six thousand dollars, we would apply that to this and compensate the City for that." Tape 2/Side A Mr. Paul Partyka, 292 Solaris Wharf Street, Winter Springs, Florida: addressed the City Commission on this Event. CITY OF W INTER SPRINGS, FLARIDA MINUTES CITY COMMISSION REGULAR MEETING -SEPTEMBER 8, 2008 PAGE 10 OF 27 Commissioner McGinnis commented, "As we sit down and look at our Final Budget, we may decide to in fact take something else out..." Commissioner Krebs noted, "... We might..." Commissioner McGinnis continued, "...In place of this." Continuing, Commissioner McGinnis noted, "Now we are going to talk about another Event, so I would suggest to the Commission that when we sit down, we might substitute this for another Event. But, I agree, it is the visibility, the name recognition, your numbers sound great, I don't know -first year, it doesn't matter. It is a goal, and maybe next year it will be even better. So, that is the way I am looking at this. I do support it." Commissioner Krebs, "I agree with some of what you say Commissioner, but if we are lucky, and I think we will be, this Event may cost us absolutely nothing." Deputy Mayor Gilmore noted, "I can support this, but would ask the Police Chief to go back, since his is thirty-six percent (36%) of this Budget, to go back and see if there are alternative ways of providing what you want." Further discussion. "I WOULD LIKE TO MAKE A MOTION THAT WE APPROVE WITH THE UNDERSTANDING THAT SPONSORSHIP DOLLARS WILL BE APPLIED TO THE CITY'S BUDGET OF SIXTY FOUR HUNDRED AND SEVENTY DOLLARS ($6,470.00) FIRST, AND THAT IF WE ARE UNSUCCESSFUL IN RAISING THAT AMOUNT, THAT WE WILL LOOK THROUGH THE BUDGET PROCESS AND POST-BUDGET PROCESS TO REPLACE AN EXISTING EVENT OR EXPENDITURE TO COVER THE LOSS THAT WE SHOULD INCUR ON THIS, IF WE SHOULD IN FACT INCUR ONE:' MOTION BY COMMISSIONER BROWN. MAYOR BUSH STATED, "SECONDED BY COMMSSIONER MILLER." DISCUSSION. VOTE: COMMISSIONER BROWN: AYE COMMISSIONER MILLER: AYE DEPUTY MAYOR GILMORE: AYE COMMISSIONER McGINNIS: AYE COMMISSIONER KREBS: AYE MOTION CARRIED. CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 Ronald W. McLemore City Manager November 18, 2008 Charles Lacey, President Oviedo Winter Springs Chamber of Commerce 200 West Broadway Street Oviedo, Florida 32765 Dear Charles: I have been advised that you have the following questions regarding recent events. Art Festival: as 1 understand it your question is; Why did the City get the Check? Answer: The Mayor was successful in acquiring a grant from Bright House to help pay for the City's portion of the cost of the Arts Festival. The Mayor took this action because the City had established a policy of not assuming any cost for events. It was understood that if any funds were left over after paying for the City's cost those funds would be made available to the Chamber. Reasonable minds would conclude that since the City's cost are to be covered first from the grant, the City would be the recipient of the grant. The City's cost of the event was $8,968.54. Therefore, there are no funds to be allocated to the Chamber from the $7,500 grant. Latin Fest: As I understand it your question is; is the Chamber entitled to the $1,014 payment the Chamber made to the City to cover the City's $5,014.32 cost? Answer: I am at a loss to understand the rational for this question. The payment of the $1,014 to the City resulted from a bonafide settlement of a dispute between the City and the Chamber. In this case, as in most bonafide settlement disputes, the final settlement involves a number of negotiated concessions of the parties' claims. The negotiated terms of the settlement are final. Quite frankly, I have never experienced parties' of a bonafide settlement dispute attempting to reopen the terms of the settlement. In this case the terms of the settlement clearly defined in Regular Agenda Item 602 of September 08, 2008, and the official records of the City are as follows: "That the Chamber pay the full amount of the $1,014.00 donations it acquired for the event to the City to be utilized for a future Town Center event, and that the other guarantors be released from their collective $4,000.31 obligation to reimburse the City." For your information the $1,014 Chamber payment was applied to the City's $1,468.00 cost overage for the Arts Festival. I hope this information is helpful. If you have any additional question please contact me at your convenience. Sincerely, 1 ~ ~''~ Ronald W. McLemore City Manager /Jp 11208 Chamber President Questions ARTS FESTIVAL -CITY COST City Payroll Cost Non-Chargeable Chargeable Total Regular Time Overtime Beautification 561.00 209.00 352.00 Police 6,456.00 2,115.00 4,341.00 Building 230.00 -0- 230.00 Utility 157.00 -0- 157.00 Stormwater 10.00 10.00 -0- Public Works 1,002.00 923.00 79.00 Parks 2.191.00 493.00 1.698.00 Total 10,607.00 3,750.00 6,857.00 Contractual Cost -National Construction Rentals Securing and Screening Veteran's Memorial Construction site from Arts Festival Area Contractual Cost -Central Florida Landscaping Miscellaneous Material - Lowes 1,563.72 250.00 297.82 Total 8 9~$,_4 COMMISSION AGENDA ITEM 601 September 8, 2008 Meeting REQUEST: CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X M r. ,~~ /De t. Authorization The Community Development Department requests the City Commission consider costs to be incurred by the City related to the 2008 Winter Springs Festival of the Arts and decide the level of service to be provided by the City and a funding source for the corresponding expenditures. PURPOSE: The purpose of this agenda item is for the City Commission to review estimated costs for the City's participation in the Winter Springs Festival of the Arts on October 4-5, 2008 and to decide on an appropriate funding source for the related expenditures. CONSIDERATION: On October 4, 2008, the Oviedo-Winter Springs Chamber of Commerce (the Chamber) will be hosting the first Winter Springs Festival of the Arts Two Day Signature Event in the Winter Springs Town Center, on Blumberg Boulevard. This event will feature the City's first juried outdoor fine arts festival with approximately ninety (90) visual artists and a variety of performing artists. The Chamber has been involved in extensive pre-event planning with the City to ensure a successful event that will compliment the annual Taste of Oviedo event held in Oviedo. Representatives from the Chamber have worked with Chris Carson of the City's Parks Department, in addition to meeting with Staff from several other participating Departments, in an effort to coordinate manpower and equipment requirements that will further ensure the public's safety during this event. 090808_COMM_Regular_601 _W interSprin gsArtsFesti val After a careful review of the event application submitted by the Chamber, City Staff has agreed with the need for two road closures for this event located on Blumberg Boulevard and on Tuskawilla Road, which will be on October 4, 2008, loam to Spm, and on October 5, 2008, loam to Spm. Tuskawilla Road will be opened during the time when there are no activities related to the event. In addition, City Staff is concerned for the City's landscaping investment along Blumberg Boulevard, where potential damage to plant material and turf could occur during setup and during the ongoing event activities. Staff has discussed this at length with representatives of the Chamber Below, City Staff has compiled an estimated budget containing costs the City will incur to participate and make this two day event both safe and successful. City of Winter Springs -Required Services Budget Item Refundable Event Deposit (Oviedo-W. S. Chamber) LED Message Sign Board (5 days) Temp. Fencing -Vet's Memorial Water Barricades (Road Closures - Blumberg/Tuskawilla) Cones, Tape, Signage Police (Off Duty) Per Capt. Deisler 4 Officers gam-6pm Sat. /2 Officers all night Sat. 4 Officers gam-6pm Sun. Parks (Overtime) 12 hrs @ $20/hr. P.W. (Overtime) 8 hrs @ $20/hr. CDD - U.B. (Overtime) 14 hrs @ $20/hr. Labor (Site Prep. Mowing, Spread Mulch) Equipment (Site Prep. Mowing, Spread Mulch) Mulch -Donated by A Budget Tree and City Artist Parking Lot Curb Ramp Portable Light Towers (2 days) Total There is no cost for Fire Dept. participation. uanti Each Total Cost 1 $1,500 $1,500 4 $450 $1,800 1 $900 $900 17 $75 $1,275 1 $500 $500 1 $2,880 $2,880 4 $240 $960 2 $160 $320 1 $280 $280 1 $200 $200 1 $280 $280 100 $0 $0 1 $150 $150 2 $150 $300 9 845 '" Refundable Event Deposit Not In Total 090808_COMM_Regular_60l _W interSpringsArlsFestiva) STAFF RECOMMENDATION: Staff recommends the City Commission make a decision regarding the levels of service that will be provided by the City for the 2008 Winter Springs Festival of the Arts Event and decide on a funding source for the related expenditures. ATTACHMENTS: A. Winter Springs Festival of the Arts -Event Map COMMISSION ACTION: ~; ~. .. J, f ~ ~~ rr to "'+~~` ~ r ~ l l ,,~ ,- ''; t t i ~ ~ i i J t , / ...- ,' ;r ~, y~ /j ~J E 1 1 • 1-+ _}= I li J, ,,~ ~ ``~~1' ~ C _~ ~ ~ ~~ i ~~~ ,~ ~ ~ ~~'-'` '~ I t t ~` ~ \ ~ 1, ~ . } ~. / se .~ ~ > ~ l' ~.. t '' / 4`, _ y~l l ~' ~ ~ ~~~~ ..' ~ t_ ~ 8 ~ % '~ ~ ~~- ~ ~ ~ I ~ ~ ~~ x 'J / J ~ f J ..'7'l ~.r~ r tai f f X _ - - _.~` '~~ ~ ' . ~ ~~1 ~ '~~~ f t .l ., f, ~~- .jilt ~`,,~ ~t ! :~~ ,~ ~~~~ 1 ~ _.. ~ ti ~ ~ .~, r ~, i ~ l ~;, ~1 I [ ~. f CITY OF WINTER SPRINGS, FLORIDA MMUTES CITY COMMISSION REGULAR MEETING -SEPTEMBER 8, 2008 PAGE 8 OF 27 CONSENT 205. Parks And Recreation Department And Public Works Department Requesting Authorization To Award The Contract For Construction Of the Trotwood Park Expansion To BDG Construction Services, LLC. This Agenda Item was not discussed. "MOVE TO APPROVE." MOTION BY COMMISSIONER McGINNIS. SECONDED BY COMMISSIONER BROWN. DISCUSSION. COMMISSIONER KREBS NOTED, "I DON'T NEED, ESPECIALLY THINGS FOR INFORMATIONAL AND CONSENT - I JUST READ IT ON LINE." COMMISSIONER McGINNIS STATED, "I DO." COMMISSIONER KREBS ADDED, "ANDREA (LORENZO-LUACES), IF YOU CAN NOT MAKE ME A COPY, THAT WOULD BE GREAT." MAYOR BUSH THEN SAID, "ANDREA (LORENZO-LUACES), WHY DON'T YOU POLL THE COMMISSIONERS AT A LATER TIME AND ASK HOW THEY WANT THIS; SO, WE CAN SAVE PAPER." VOTE: COMMISSIONER McGINNIS: AYE COMMISSIONER KREBS: AYE COMMISSIONER BROWN: AYE DEPUTY MAYOR GILMORE: AYE COMMISSIONER MILLER: AYE MOTION CARRIED. ••3 AGENDA NOTE: THE FOLLOWING REGULAR AGENDA ITEM WAS DISCUSSED AGAIN, AS PREVIOUSLY NOTED ON PAGE 5 OF THESE MINUTES. • • REGULAR AGENDA REGULAR 601. Community Development Department Requests The City Commission Consider Costs To Be Incurred By The City Related To The 2008 Winter Springs Festival Of The Arts And Decide The Level Of Service To Be Provided By The City And A Funding Source For The Corresponding Exaenditures. Mr. Charles Lacey, 733 Bear Creek Circle, Winter Springs, Florida: spoke to the City Commission on the upcoming Festival of the Arts. CITY OF WINTER SPRINGS, FI,oRIDA MINUTES CITY COMMISSION REGULAR MEETING -SEPTEMBER 8, 2008 PAGE 9 OF 27 Mr. Lacy then explained, "None of our events are actually going to be on Tuskawilla [Road] so, it would be possible to leave Tuskawilla [Road] open; we'd just have to pay close attention to the pedestrian traffic that might be crossing Tuskawilla [Road] to get over to the stage and the music events. And, we're very sensitive about the grass and the quality of the shrubbery that is going to be down the center of Blumberg Boulevard, and we've gone to great pains to try to find an aesthetically pleasing way to address that concern." Continuing, Mr. Lacey explained, "So, we've allocated quite a bit of manpower to patrol that area. I think we're going to place the tents in a way that discourages people from going back in to the nice shrubbery and we're going to have people there from Police Officers to Police Explorers to other volunteers, taking special care to make sure that the pedestrian traffic is first of all, diverted away from that." Discussion followed on parking, volunteers, Police assistance, and deposits. Commissioner Brown asked Manager McLemore, "Have you met with Event Planner - who wanted to work with the City, whose information I have sent you?" Manager McLemore said, "I have not heard back from that person yet." Commissioner Brown added, "She may be here tonight. I think she is going to introduce herself during Public Input. This might be great opportunity to partner with her and see what she might be able to bring to the table over the next month." With further comments, Manager McLemore noted, "I'll be happy to talk with her if you will just give me that discretion and this is not that issue of finding that person. I can have a scope of services for her or anyone else, just for this event, but it will be different from the RFP (Request For Proposal) we're going to put out." Discussion. Mr. Lacey stated, "We are asking for a Waiver of the fees that are on this that are six thousand four hundred and seventy dollars ($6,470.00) and the refundable deposit and per your suggestion Mayor, any additional funds that come in through Brighthouse, we would apply that to this dollar first. If it came in excess of that, we would take it, but if we got another six thousand dollars, we would apply that to this and compensate the City for that." Tape 2/Side A Mr. Paul Parryka, 292 Solaris Wharf Street, Winter Springs, Florida: addressed the City Commission on this Event. CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION REGULAR MEETING -SEPTEMBER 8, 2008 PAGE l0 OF 27 Commissioner McGinnis commented, "As we sit down and look at our Final Budget, we may decide to in fact take something else out..." Commissioner Krebs noted, "... We might..." Commissioner McGinnis continued, "...In place of this." Continuing, Commissioner McGinnis noted, "Now we are going to talk about another Event, so I would suggest to the Commission that when we sit down, we might substitute this for another Event. But, I agree, it is the visibility, the name recognition, your numbers sound great, I don't know -first year, it doesn't matter. It is a goal, and maybe next year it will be even better. So, that is the way I am looking at this. I do support it." Commissioner Krebs, "I agree with some of what you say Commissioner, but if we are lucky, and I think we will be, this Event may cost us absolutely nothing." Deputy Mayor Gilmore noted, "I can support this, but would ask the Police Chief to go back, since his is thirty-six percent (36%) of this Budget, to go back and see if there are alternative ways of providing what you want." Further discussion. ~~I WOULD LIKE TO MAKE A MOTION THAT WE APPROVE WITH THE UNDERSTANDING THAT SPONSORSHIP DOLLARS WILL BE APPLIED TO THE CITY'S BUDGET OF SIXTY FOUR HUNDRED AND SEVENTY DOLLARS ($6,470.00) FIRST, AND THAT IF WE ARE UNSUCCESSFUL IN RAISING THAT AMOUNT, THAT WE WILL LOOK THROUGH THE BUDGET PROCESS AND POST-BUDGET PROCESS TO REPLACE AN EXISTING EVENT OR EXPENDITURE TO COVER THE LOSS THAT WE SHOULD INCUR ON THIS, IF WE SHOULD IN FACT INCUR ONE." MOTION BY COMMISSIONER BROWN. MAYOR BUSH STATED, "SECONDED BY COMMSSIONER MILLER." DISCUSSION. VOTE: COMMISSIONER BROWN: AYE COMMISSIONER MILLER: AYE DEPUTY MAYOR GILMORE: AYE COMMISSIONER McGINNIS: AYE COMMISSIONER KREBS: AYE MOTION CARRIED. City of Winter Springs Regular Meeting September 8, 2008 090808_COM M_Regular_602_W LOQ_Jazz_Event_Report Page I of 4 COMMISSION AGENDA ITEM 602 Consent Informational Public Hearing X September 8.2008 Regular Meeting MGR. / /DEPT. Authorization REQUEST: The City Manager requesting the Commission to review this report regarding the reimbursement of costs for the 2008 W.L.O.Q. Jazz Event, and take any action it deems appropriate. PURPOSE: This agenda item is needed to fulfill the Commission's request for the development of settlement alternatives regarding the 2008 W.L.O.Q. Jazz Event. BACKGROUND: On February 11, 2008 the City Commission authorized the staff to proceed with the planning of a Jazz Event to with W.L.O.Q. Radio with the direction to solicit sponsors to cover as much of the cost as possible. Staff moved forward with putting together an event with financial and in-kind participation from W.L.O.Q., the Chamber of Commerce, the Town Center Merchants Association, and the City. Discussions included the City's participation including the possible donation of police, fire, and other services, and the waiver of park rental fees. On April 14, 2008 the City Commission approved a motion to delete funding from all special events unless 100% of the cost was covered from sponsors. This option prohibited any out-of- pocket expenses from the City, eliminated from consideration the City share of the cost of the Jazz Event, and placing the event in jeopardy. On April 18, 2008 a meeting was held including city staff, Chamber of Commerce, representatives, Town Center Merchants President, W.L.O.Q. representatives, and Commissioner Rick Brown to advise all the parties of the City Commission's April 14, 2008 declaration prohibiting any City monetary participation in the event. The other parties agreed that they would cover all the cost. W.L.O.Q. asked the City to sign a Memorandum of Understanding setting out the parties' responsibilities. The W.L.O.Q. Memo of Understanding for the first time specified that the City would waive the $3,000 park rental fee. Acting City Manager Kip Lockcuff signed the agreement under the erroneous belief that the City Manager had agreed to the park fee waiver. City of Winter Springs Regular Meeting September 8, 2008 090808_COM M_Regu I ar_602_W LOQ_Jazz_Event_Report Page 2 of 4 W.L.O.Q. made it clear that they would not participate in the event if the letter of intent was not signed on this date. It was made clear that the City Commission would have to approve the final agreement. On April 28, 2008 the staff presented a final plan for the event in which the City's participation in the event was limited to a waiver of the $3,000 park rental fee. The Commission rejected the waiver of the $3,000 park rental fee. On April 29, 2008 W.L.O.Q. was notified of the City Commission's decision to deny the agreement due to the Commission's unwillingness to waive the $3,000 rental fee consistent with their April l4, 2008 policy decision prohibiting the waiver of park rental fees. W.L.O.Q. threatened litigation due to the amount of money and effort they had expended in preparing for the event, stating that the Commission's actions were in breach of the Memorandum of Understanding signed on April 18, 2008 by the Acting City Manager. At the request of the City, the City Attorney got involved to try to mediate the matter. The City Attorney worked out an agreement in which W.L.O.Q. would agree to provide the City with $5,000 in free advertising for future events in return for the City waiving the $3,000 park rental fee. On April 30, 2008 an emergency meeting of the Commission was convened to reconsider the event with the proviso that the City would agree to waive the $3,000 park rental fee in exchange for the $5,000 free advertizing offer. The Chamber of Commerce and Local Merchants agreed to guarantee payment of any cost incurred by the City for which event revenues were insufficient to cover. The Commission instructed the City Attorney to memorialize the terms in a final agreement. The final agreement was executed on May 15, 2008. On May 16, 2008 and June 7, 2008 the event went forward as planned. The event did not earn sufficient revenues to cover the City's $5,014.31 cost. On August 25, 2008 representatives of the Chamber and Local Merchants offered the Commission payment covering the City's cost. The Chamber presented a check in the amount of $1,014.00, representing the amount of donations it had raised for the event. The balance of the amount was paid by the local merchants as follows: Chamber of Commerce $ l ,014.00 Brenda Brown $1,333.44 Charles lacey $1,333.44 Brenda Brown 1 333.44 Total $5,014.32 City of Winter Springs Regulaz Meeting September 8, 2008 090808_COM M_Regular_602_W LOQ_]azz_Event_Report Page 3 of 4 Paul Partyka presented the checks offering the following information for the Commission to consider. a) Two months of planning for the event took place prior to the April 14, 2008 decision of the Commission to withdraw monetary support for the event. The planning for this event involved a partnership in which cost was shared by the various parties. b) In order to prevent W.L.O.Q. from walking away from the event and potentially following through on a threat to litigate against the City to recover the cost of its time, and the cost of obligations with parties it had entered into to perform various elements of the event, the Chamber and Local Merchants felt they had little choice other than to offer to become guarantors of reimbursement of the City's cost in the event. c) That a better and more fair policy would have been for the Commission to grandfather events that were already in progress on April 14, 2008 when the Commission made its new policy declaration. Based upon this presentation the City Commission directed the City Manager to review the matter with Chamber and Merchant representatives and to offer alternatives for the Commission to review. FINDINGS: The following findings are clear from a review of the facts: a) A significant amount of time and effort was expended to carrying out the February ] 1, 2008 direction of the City Commission to plan the event. b) The event planning evolved on the basis of the various parties sharing costs. c) The April 14, 2008 decision of the Commission to discontinue monetary support of community events changed the dynamics under which the party's were proceeding in good faith to accomplish a successful event. This decision had especially troublesome impacts on W.L.O.Q. since it was involved with business arrangements with subcontractors. d) Contrary to W.L.O.Q.'s understandable saber-rattling, it is doubtful that they had grounds for litigation since they were clearly made aware of the fact that the City Commission had the authority to approve or reject the final plan that would be submitted to them for approval. e) It is clear that the guarantors are legally bound to reimburse the City for 100% of the City's cost. CONCLUSIONS: Based upon the record of this matter it is clear that this is far more a matter of fairness and good will than law, and that good will in these kinds of matters is important. 2. A decision by the Commission which would have given more consideration to the time and monies expended and obligated by the parties planning the event would have been received as a more fair rendering of public policy in this matter. FUNDING: N/A City of Winter Springs Regular Meeting September 8, 2008 090808_COMM_Regul ar_602_W LOQ_Jazz_Event_Report Page4of4 RECOMMENDATION: Based upon the record of this matter I am recommending the Commission consider the following alternatives. 1. That the Chamber pay the full amount of its $1,014.00 in donations it acquired for the event to the City and that 50% of the remaining $4,000.31 be paid by the other guarantors, all of which would be utilized to help pay for a future Town Center event. 2. That the Chamber pay the full amount of the $1,014.00 donations it acquired for the event to the City to be utilized for a future Town Center event, and that the other guarantors be released from the their collective $4,000.31 obligation to reimburse the City. ATTACHMENTS: COMMISSION ACTION: CITY OF WINTER SPRQVGS, FLORIDA MINUTES CITY COMMISSION REGULAR MEETING -SEPTEMBER 8, 2008 PAGE I7 OF 27 •• AGENDA NOTE: THE FOLLOWING REGULAR AGENDA ITEM WAS DISCUSSED NEXT, FOLLOWED BY THE REST OF THE PUBLIC HEARINGS AGENDA. • • REGULAR AGENDA REGULAR 602. Office Of The City Manager Requesting The Commission To Review This Report Regarding The Reimbursement of Costs For The 2008 W.L.O.Q. Jazz Event, And Take Any Action It Deems Appropriate. Manager McI.emore introduced this Agenda Item for discussion. Commissioner Brown commented for the Record and stated, "Andrea (Lorenzo-Luaces), the bottom of page 2, one of those `Brenda Brown' should be replaced with the name of former Mayor `Paul Partyka'." Discussion. "I WILL MAKE A MOTION THAT WE ADOPT THE FIRST PROPOSAL [~1.'), LET THE CHAMBER PAY THE FULL AMOUNT, AND THAT THE FIFTY PERCENT (50%) OF THE REMAINING BE PAID AND USED FOR SOME OTHER FUTURE EVENT IN THE CITY." MOTION BY COMMISSIONER MILLER. MAYOR BUSH SAID, ~~THEY WOULD PAY THE ONE THOUSAND AND FOURTEEN [DOLLARS] ($1014.00), AND THE REMAINDER -THE CITY WOULD PAY?" MANAGER McLEMORE NOTED, ~~THE GUARANTORS WOULD PAY FIFTY PERCENT (50%) OF THE BALANCE:' SECONDED BY DEPUTY MAYOR GILMORE. DISCUSSION. VOTE: COMMISSIONER MILLER: AYE DEPUTY MAYOR GILMORE: AYE COMMISSIONER KREBS: NAY COMMISSIONER McGINNIS: AYE COMMISSIONER BROWN: ABSTAINED MOTION CARRIED. Mayor Bush remarked, "Commission, I don't agree with that." Commissioner McGinnis stated, "I would like to bring the issue back up." CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION REGULAR MEETING -SEPTEMBER 8, 2008 PAGE 18 OF 27 "MOTION TO RECONSIDER." MOTION BY COMMISSIONER McGINNIS. SECONDED BY COMMISSIONER KREBS. DISCUSSION. VOTE: COMMISSIONER McGINNIS: AYE COMMISSIONER KREBS: AYE DEPUTY MAYOR GILMORE: AYE COMMISSIONER BROWN: ABSTAINED COMMISSIONER MILLER: NAY MOTION CARRIED. "I MOVE THAT WE RECOMMEND OPTION NUMBER `2."' MOTION BY COMMISSIONER McGINNIS. SECONDED BY COMMISSIONER KREBS. DISCUSSION. MAYOR BUSH NOTED, "NUMBER `2.' WHICH WOULD BE THE CHAMBER PAYING THE ONE THOUSAND FOURTEEN [DOLLARS] ($1014.00), AND THE CITY PICKING UP THE BALANCE." VOTE: COMMISSIONER KREBS: AYE DEPUTY MAYOR GILMORE: AYE COMMISSIONER BROWN: ABSTAINED COMMISSIONER MILLER: AYE COMMISSIONER McGINNIS: AYE MOTION CARRIED. PUBLIC HEARINGS AGENDA PUBLIC HEARINGS 503. Community Development Department Requests The City Commission Hold A Public Hearing For Second Reading And Adoption Of Ordinance 2008-11, Which Rezones Two (2) Parcels Containing 9.04 Acres, More Or Less, Located Adjacent To The North Side Of SR (State Road) 419 On The East And West Side Of Wade Street From "C-1 Neighborhood Commercial" To "C-2 General Commercial" Subject To Certain Use And Other Restrictions Pursuant To Section 20-31.(el. Attorney Garganese read Ordinance Number 2008-11 by "Title" and commented for the Record that, "It would not authorize any other C-2 general commercial uses on the property other that the two (2) that are listed on pages 2 and 3 of the Ordinance, generally being outdoor storage facilities and a single warehouse building not to exceed 27,000 square feet.