021092-Work Session2 5 6 MINUTE S
City Commission, Sanford, Florida
1993~
The City Commission of the City of Sanford, Florida met in Work Session on Monday,
February 10, 1992 at 5:00 o'clock P.M. in the City Manager's Conference Room, City Hall,
Sanford, Florida.
Present:
Mayor-Commissioner Bettye D. Smith
Commissioner Whitey Eckstein
Commissioner Robert B. Thomas
Commissioner A. A. McClanahan
Commissioner Lon Howell
City Attorney William L. Colbert
Assistant City Attorney Donna L. McIntosh
City Manager William A. Simmons
City Clerk Janet R. Donahoe
The Chairman called the meeting to order.
Lease Proposals for Citrus Grove O~eration on "Site 10".
was present.
Rick Lee, Doudney Investment Co.,
City Manager reported that the proposed leases from Doudney Investment Co. and Lake
Jessup Grove, Inc. (LJG) are significantly different, that the Doudney lease is predicated
upon a revenue to the City being derived from gross revenue whereas the LJG lease is based
on net revenue. Further, Carolyn Small, Finance Director and other financial people are
concerned about any type of lease whereby the City's revenue is predicated upon net revenue
(Gross revenue minus actual cost of operation and maintenance, and minus general and
administrative overhead, unless otherwise capped in lease), which is not much different from
the situation with Mayfair Golf Course. City Manager recommended that the Commission
authorize Staff to work with one or both parties moving toward a lease which is based on
gross revenue. Also, the Doudney group proposes to indemnify the City for loss by procuring
citrus freeze insurance, which has some significant possibility, however, there is no
guarantee that underwriters will continue to write this type of coverage.
Paul Porter, Conklin, Porter & Holmes appeared and reviewed informational charts,
which provided a 25 year analysis of both proposals based on present worth. He stated that
the LJG proposal does not require the City to fund the initial cost for citrus tree purchase,
installation and installation of microjet irrigation system, while the Doudney proposal
requires an initial outlay of $276,000.00 for same (actual purchase of microjets is included
in Contract III).
Bill Holmes, Conklin, Porter & Holmes appeared and reported that the projected
number of boxes under the Doudney proposal is based on high density to achieve a higher
production, and that it will even out in years six and seven. Also, the difference in
operation and maintenance costs between the two proposal is attributable to the fact that LJG
plans to do most of the work themselves while the Doudney group intends to hire custom
operators.
City Manager reported that the proposed lease with LJG contains a termination
provision should the Florida Department of Environmental Regulations disallow the planting
of trees in phases.
Doug'Doudney, Doudney Investment Co., appeared and reported that citrus freeze
insurance is available on a year-by-year basis, that said insurance is written by a large
domestic firm, and reinsured through a consortium of firms, primarily led by Lloyds of
London. Further, the freeze risk rate for Seminole County is 3 1/2% of the insured value,
that the maximum insurable value escalates in years one through five, approximately $10.00
per tree the first year up to $25.00 per tree after year five, with a maximum of $3,500.00
per acre, that his company will pay for said insurance, and name the City of Sanford as co-
beneficiary.
MINUTES
City Commission, Sanford, Florida
257
February 10
1992
George Wallace, Lake Jessup Grove, Inc., appeared and reported that he did not know
whether this type of insurance would be available in Seminole County, however, the cost for
such insurance would be about $30,000.00 a year, with a maximum acreage coverage of $3,500.00
per acre, which would only pay to. replant 140 acres as opposed to 225 acres.
Mr. Doudney reported that, in the event of a freeze, the City, as beneficiary,
would receive approximately $750.00 per acre, which is more than the anticipated cost.
On recommendation of City Manager, the consensus of the Commission was to authorize
Staff to work toward a gross revenue lease with both parties. Commissioner Howell opposed.
Request to rename a ~ortion of Jewett Lane between Kennel Road and Smith Canal to Aero Lane.
The consensus of the Commission was to deny request.
Request to waive Comprehensive Plan Amendment Fee in amount of $1,000.00.
After discussion, the consensus of the Commission was to include Mr. Singer's
Comprehensive Plan Amendment with the City's First Annual Amendment for 1992, at no charge.
Midway-Canaan Water Association Arrearages.
After discussion, and on recommendation of Assistant City Attorney, the consensus
of the Commission was to authorize Staff to file a lawsuit to obtain a judgement, and to
appoint a receiver for Midway-Canaan Water Association, as described in memo dated January
8, 1992 from Assistant City Attorney. Mayor Smith requested that the record reflect that
said action was being taken as a last resort.
Ordinance Revisions for Police, Fire and Recreation Impact Fees.
City Manager reported that each of the proposed ordinances will allow the
utilization of impact fee revenues to fund the cost of updating said impact fees.
Use of Volunteers for Development of Recreation Department Physical Assets.
Director of Recreation and Parks appeared and reported that over $16,000,00 is
raised annually from the community for programs which utilize approximately 400 volunteers.
Further, memorandum dated February 3, 1992, provides potential projects for various parks
within the community.
City Manager reported that there is a good possibility that the Private Industry
Council Summer Employees will be available to work on some of these projects.
After discussion, the Commission authorized Staff to begin budgeting for material
costs and to contact various organizations, businesses, and churches to get volunteer
commitments.
There being no further business, the meeting was adjourned.
Attest:
ff city Clerl~