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City Commission, Sanford, Florida
3:30 P.M. Work Session September 11
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The City Commission of the City of Sanford, Florida met in Work Session on Monday, September 11, 2000, at
3:30 P.M. in the City Manager's Conference Room, Sanford City Hall, 300 North Park Avenue, Sanford, Florida.
Present: Mayor-Commissioner Larry A. Dale
Commissioner Whitey Eckstein
Commissioner Velma H. Williams
Commissioner Brady Lessard
Commissioner Randy Jones
City Manager Anthony VanDerworp
City Clerk Janet R. Dougherty
Absent: City Attorney William L. Colbert
The Chairman called the meeting to order.
Economic Development Incentive.
City Manager VanDerworp reported there is an Add-on item regarding a request for an economic development
incentive from The Fathers Table. Community Development Director Charles Rowe, Tracy Grygiel, Seminole County
representative for the Economic Development Commission, and Bob Hicks, President of the Food Service Division of The
Father's Table were present to discuss the request. The City Manager said that before the next Commission Meeting, Mr. Hicks
must report to his executive committee so a decision can be made regarding a site location for their new plant.
Mr. Rowe reported The Fathers Table is a for-profit corporation that specializes in manufacturing baked goods
and proposes to locate a bakery at 2100 Country Club Road. The corporation has distribution contracts with Winn Dixie and
Wal-Mart and other stores across the United States and projected annual sales between $50 and $60 million. The project would
create approximately sixty new jobs that will pay a minimum of $15,000. There will be an additional forty to sixty new jobs over
two years. The building has approximately 81,000 square feet, and one and a half million dollars will be spent on renovations.
Approximately two and a half million dollars in tangible profits will be brought in by The Fathers Table. The corporation is
looking at expansion possibilities in Oklahoma, Illinois, Tennessee, Ohio, and Daytona Beach.
Mr. Rowe said the Agenda Cover Memo includes a spreadsheet that reflects the current building valuation of
$1,847,765.00. After renovation, the estimated taxable value will be $5.8 million, with a new tax base of $4 million; the taxes
due to the City will be approximately $40,000. The economic development incentive package of $75,000 includes waiving
building and development fees of $8,550 and a cash incentive of $66,450.
Mr. Hicks reported The Fathers Table is looking for a site for their headquarters and will be making a decision
for a long-term commitment to a community and that he is responsible for doing due diligence regarding finding the right
locations and communities, negotiating buildings, etceter~ They are under a timetable because the business is growing very fast
and needs more people, equipment, and production capacity. The building at 2100 Country Club Road is being considered as
well as the property behind it for future expansion. After investigation, he determined that Sanford and Seminole County are
in a nice area to grow.
Mr. Hicks said The Fathers Table is two years old and is privately owned, primarily by Mike Gilardi. Last year's
sales were $3.9 million and anticipated sales for this year are more than $10 million. Projected sales over the next five years are
$50+ million. The corporation is proposing to buy the Country Club Road site and renovate it to standards of USDA and as
a kosher facility. The facility will operate around the clock, Monday through Saturday. Employees for the Sanford location will
be from the local community. There will be a personnel need for bakers, warehouse, shipping, computer technicians, sales,
marketing, accounting, etcetera.
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City Manager VanDerworp said if the Commission awards the incentive, there will be appropriate agreements
and performance bonds executed as part of the project. The incentive money can be recouped in about two years.
After discussion, the Commission concurred The Fathers Table would be beneficial to Sanford and will take action
on this item as an Add-on at tonight's Regular Meeting.
Employee of the Month Award.
Mayor Dale presented Emanuel Hillary with the Employee of the Month Award for September 2000.
Recognition of members of Morale & Team Building Committee.
City Manager VanDerworp awarded a Certificate of Appreciation and %right idea light bulb" award to members
of the City's Morale and Team Building Committee who were responsible for planning and organizing a luau held at the
Sanford/Seminole Pool. The Committee schedules events for employees so they can get to know each other better in an attempt
to create more effective team players. The Committee plans to schedule more events as well as food drives, blood drives, and
other community benefit drives. Committee members recognized are as follows: Keith Acree, Arnold Cotton, Julie Ellenburg,
Russ Gibson, Shanna Hawkins, Cn-eg Hensley, Hoke Hinson, Roy Lawson, Mark Morgan, Althea Parrish, Rick Poovey, and
Ronnie Price. An award was also presented to Mayor Dale for his donation of meat for the luau.
Public hearings.
City Manager VanDerworp reported that today's Agenda lists three rezonings scheduled for second reading.
He recommended they be tabled until the second reading of the City's second Comprehensive Plan for 2000 that is tentatively
scheduled for November 27, 2000. The Commission concurred to table the rezonings to the adoption hearing of the
Comprehensive Plan. Action will be taken at tonight's Regular Meeting.
Sanford Airport Authority_ third a_narter financial report for period ending June 30. 2000.
Orlando-Sanford Airport Executive Director Victor White and Finance Director Bryant Garrett were present to
present the Sanford Airport Authority Third Quarter Financial Report for period ending June 30, 2000.
Mr. White reported the Airport received an FDOT Grant from the State of Florida in the amount of $8.3 million
to be used for runway expansions on the east side of the airport.
Mr. White distributed to the Commission the final version of the Sanford Airport Authority Budget for fiscal year
2000/01 that was approved by the Commission on August 23, 2000. A departmental budget is included at the request of the
Commission. Also included as an insert is a list of rollover capital projects. Future budgets will include departmental budgets
and rollover capital projects.
Commissioner Eckstein suggested the Airport Authority consider piggybacking with the City and the County for
their lobbyist. The Commission concurred. Mr. White said he would present it to the Airport Authority Board at their meeting
in October.
Mr. Garrett reported that operating revenue is about 8% to 9% under budget, however, operating expenses are
well under 10% under budget, reflecting $415,901 excess revenue year to date.
Mr. Garrett said that next year's budget is very favorable due to anticipated revenue from the Passenger Facility
Charge, however, it won't reflect until the advent of the PFC in March 2001. March will also show what is expected for
finishing the terminal expansion project and the surplus in the contingency fund. The second of five annual payments of half a
million dollars is due from TBI on January 1, 2001.
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The Commission had no further requests or comments.
City. of Sanford third quarter financial report for period ending .June 30, 2000,
Finance Director Donna Watt and Deputy Finance Director Kevin Smith were present to present the City of
Sanford Third Quarter Financial Report for the period ending June 30, 2000.
Mr. Smith reported that General Fund revenue reflects receipt of 99.85% of ad valorem taxes in the amount of
$6,829,129. A half mithbn dollars has been received in building permits. Intergovernmental revenue is under budget, however,
revenue will be up by year end because the State closes their year end on June 30 and make up payments come in by early
August. Interest revenue reflects 116.14% in the amount of $607,971. Miscellaneous revenue reflects 205.24% in the amount
of $278,676 due to the South Shore Club settlement.
Mr. Smith reported that General Fund expenditures retiect legal fees above budget. The Community Development
Department is slightly over budget due to Code E/ff0rcement activities and worker compensation costs, however, other
departments are at or below budget. Excess revenue over expenditures reflects $2,199,362 and will be added to reserves at year
end.
Mr. Smith reported the General Fund Reserves Analysis reflects $3,325,889. The Water and Sewer Fund
Revenue & Expenditure Analysis reflects operating revenue of $7,234,510 and total expenses of $9,292,044. There is an
adjusted budget of $2.5 million in capital outlay and $3~2 million in capital outlay expenditures which include purchase orders
for the reclaimed water augmentation project. At the date of the budget report an entry wasn't done to reflect matching grant
funds orS1.192 million; 55% comas fi.om the St. Johns River Water Management District and 45% comes fi.om the City. Water
and Sewer Impact Fee funds reflect revenue of $826,740 for water and $1,958,082 for sewer. Stormwater Fund revenue reflects
$1,100,675 and $1,056,403 in expenses, which are under budget due to the capital outlay project of Bishop 8: Buttrey; those
funds will be rolled forward.
Public Works Director Jeny Herman reported that Bishop & Buttrey will probably complete the north pond that
will be utilized for stormwater by January. Bids are expected to go out in October for the City's pond and ground will be
broken by year-end and completion will take approximately four months. A report will be given to the Commission when bids
are returned.
Mr. Smith reported the Law Enforcement Trust Fund reflects revenue in the amount of $62,778 and $136,802
in expenses. Community Development LIHEAP grant funds reflect revenue in the amount of $150,975 and $177,545 in
expenses. Wcetherization grant fimds reflect revenue in the amount of $14,918 and $55,687 in expenses; any deficit is due to
non receipt of money from the State. The Local Option Gas Tax fund reflects revenue in the amount of $576,247 and $621,405
in expenses; cash and equivalents assets reflect $777,520. Revenue fi.om Recreation Impact Fees reflects $288,537. Revenue
from Fire Impact Fees reflects $69,833 and $15,000 in expenses. Revenue from Police Impact Fees reflects $158,772 and
$15,000 in expenses. The Seminole Towne Center CRA reflects revenue in the amount of $406,674 and $502,376 in
expenditures. TheWaterfi.ont CRA reflects revenue in the amount of $111,973. TheLiability/Auto/Property Insurance payments
reflect $194,261.00; claims paid this period total $91,763.81; total is $286,024.81. Workers Compensation related payments
total $150,543.79; claims paid this period total $469,201.36; total is $619,745.15. Claims paid this period includes a settlement
for a Fire Department employee in the amount of$110,750.
Commissioner Eckstein requested a breakdown of workers compensation related expenses for the last ten years
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for the Fire Department. He expressed concern regarding the City's exposure to liability because of firefighters who smoke and
said he doesn't think the City should hire people who smoke to work in the Fire Department in the future. There is a State
Statute that says that heart disease resulting in total or partial disability or death shall be presumed to have been accidental and
suffered in the line of duty unless the contrmy is shown by competent evidence. He suggested the hiring practices for the Fire
Department be reviewed. The City Manager said Staffwill review the issue and will report back to the Commission.
Mr. Smith reported the Cemetery Trust Fund reflects revenue in the amount of $15,325 and total assets in the
amount of $398,456. The Termination Benefit Reserve Fund reflects revenue in the amount of $7,827 and total assets in the
amount of $202,928.
The Commission had no further comments or requests.
Proposed mixed-use pro_iect on City. owned land.
. Brenda Carey introduced Arie Konfo~te, President, M & KJnternational Investment Corporation, and Yehezkel
Frankel, Baruch Marco, and R~rni Yosefian, Directors ofM & K International Investment Corporation.
Deputy City Manager Roger Dixon reported that Staff requests Commission consideration of the proposed mixed
use project on the City's municipal parking lot. He gave an overview of the proposed development of an eight-story luxury
condominium on 2.6 acres of City owned land that is currently used for 289 parking spaces. The project is estimated to cost
$20 million and will consist of a three-story 550 space parking garage, approximately 40,000 square feet of retail space, and 178
condominium units. It is estimated that the project will generate approximately $300,000 annually in property taxes, with the
City's portion being approximately $171,000 annually.
Ms. Carey reported that land presently used as a municipal parking lot is not generating any revenue or taxes.
The project proposed by M & K is viewed as an opportunity to help revitalize downtown and to start the development of the
wateffxont. Approximately $80,000 has been invested to date to plan, research, and prepare the books. She said the investors
are looking for the Commission to give encouragement or discouragement and do not want to spend more money only to be
turned down.
Commissioner Lessard reported he and the City Manager discussed the project several months ago. One of the
City Manager's key goals downtown is infill projects similar to M & K's proposed project. Several other spots have been
identified as well. A year ago the Commission discussed a lack of revenue and lack of real purpose that the parking lot serves
other than a parking lot for the City. Although there will be discussions prior to anything becoming formal, he is interested in
a project on this site. He dislikes having a parking lot that serves no other purpose than a parking lot sitting on the lakefront.
He is open to consideration of the project.
Ms. Carey distributed to the Commission a copy of M & K International's Corporate Profile. The Florida
corporation was established in December 1998. The investors have shown a lot of interest in Sanford and hope to have clear
direction to continue with the project.
Commissioner W'tlliams reported the project is very exciting and that downtown definitely needs a shot in the arm.
It will benefit the City and the citizens.
Ms. Carey said the Staffreport shows that planning studies indicate that a successful downtown district should
have at least 50% of its residential use within a two to four block area of downtown. This project is an opportunity to bring a
substantial amount of residential to the downtown district and residents frequenting businesses, shops, and restaurants will
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City Commission, Sanford, Florida
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sustain businesses.
Commissioner Williams said the City should welcome this type of development and move forward and put
Sanford on the map to be a model city. The City should embrace this idea and not take it lightly. The City has many assets that
are not being taken advantage of and cannot continue to be behind; we must move forward.
Ms. Carey said a parking study will be done to determine what will be charged for parking and how the parking
garage will be handled. Further, it will cost $12,000 per space to build a parking garage because it has to support the structure.
The investors can't afford to build a parking structure and not charge something for parking.
Mayor Dale said the parking lot provides 289 parking spaces and said if the deal is made, he would want the same
number of parking spaces provided. Further, this was discussed when he first spoke with Mr. Yosefian about the project, and
that the parking spaces would be provided flee of charge.
Mr. Yosefian said the public will benefit from the parking garage because it will be covered and will provlde
security. The first floor will be free parking for retail shops. There will be a charge to park on the second and third floor and
for residential.
Commissioner Eekstein said he has thought long and hard about the project and asked if in twenty or thirty years
from now is this doing the right thing for Sanford. There is a request for the City to contribute land assessed well over $700,000
and waiver of $220,000 in impact fees. He said there had been earlier discussions regarding the parking lot generating yearly
revenue of $130,000 to $170,000 to build youth programs. He proposed giving the land and waiving 50% of the impact fees
and that 50% of the parking be provided for Sanford forever; it will always be viewed that something is being done for the
citizens. He said he loves the project but the City is not for sale unless it can share in some of the profit that is made from the
parking. There will be cash flow from parking at the City's expense and he can't sell the City so cheaply and asked the
Commission to consider how cheap to sell the City. He wants the parking.
Mr. Yosefian reported he will be glad to purchase the land for a million dollars and not be obligated for any
parking to the City. He then can change the construction of the building and keep 178 units and build 178 parking spaces and
save himself $2.5 million.
Mayor Dale said the property is not for sale.
Mr. Yosefian said when he began negotiating it was the City Manager's idea that the property should be
developed.
Mayor Dale said when he first spoke with Mr. Yosefian about the project there was discussion regarding parking
being provided for free. He didn't think the Commission would be willing to sell the property and give up the parking that is
a benefit for the people of Sanford.
Ms. Carey said there was a proposal presented to the Commission and asked for a counter proposal; it will be
decided if the option is viable.
Mayor Dale said the purpose of this meeting was not to negotiate but to hear the proposal. The Commission
will discuss it and determine what it will and will not do. Commissioner Eckstein said the tax payers are on notice that the
Commission is considering these things and he is putting his thoughts out there because the Commission will hear from a lot of
people about this. Mayor Dale said his thoughts were that the City would receive the parking. At some point in time there will
have to be a financial institution in Seminole County that can review the company's portfolio and provide and evaluation to the
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Commission.
Ms. Carey said there are many unanswered questions and a lot of money has been spent to date on the project
and the investors do not want to continue to spend money if the City is not willing to participate in the project. She asked the
Commission to review the proposal, discuss it, and either accept it or offer a counter prOposal.
Mr. Yosefian said he has been in Sanford for four years and has made investments in Sanford and has brought
investors to Sanford. He believes that Sanford has more to offer and the citizens have a lot to gain from what is being offered.
Commissioner Lessard said a proposal was provided at the invitation of the City and it warrants serious
consideration.. The City Manager will be bringing many projects to the Commission and this one needs to be discussed.
After discussion, the Commission concurred that the City Manager work with M & K International and advise
ifa Special Work Session is necessary to discuss the project.
F_ire Department Pay Plan/Market Ad_iustment.
City Manager VanDerworp, at the request of the Commission, reviewed retention and recruitment issues in the
Fire Department, and repo~ted that Staffhas benchmarked the current pay levels in the Fire Department against the regional
market and has developed two pay plan options for consideration of the Commission. While the City cannot compete with the
wage structures of Orlando and Orange County, it should strive to get as close to third place in the market as possible. The City
is able to recruit at our current pay scale, however, it is becoming increasingly difficult to retain one to five year veterans
(especially paramedics)due to the increasing demand for these positions and the higher wage scales of competitors. With Orange
County increasing its pay scale to match Orlando's, the "pool" of higher paying jobs has increased dramatically. The proposed
pay plan options include an adjustment to base pay that applies to all firefighters and paramedics and an adjustment in
"additional" pay that applies to paramedics only. If approved by the Commission, the new pay scales would represent a "one
time" market adjustment to be done in October 2000 and is partially funded from funds earmarked for next fiscal year merit
increases and therefore, if approved, this market adjustment is in lieu of a merit increase and bonus presently in the budget.
Option one proposes a 5.9% increase for entry firefighters and a 3.9% increase for veteran firefighters as well as a 13.3%
increase for entry paramedics and a 9.1% increase for veteran paramedics. This option is fully funded. Option two proposes
a 7.8% increase for entry level firefighters and a 5.2% increase for veteran firefighters as well as a 13.3% increase for entry level
paramedics and a 9.1% increase for veteran paramedics. This option will be funded through the personnel contingency funds.
Deputy Fire Chief Jerry Ransom said the firefighters and paramedics prefer option two.
Mayor Dale expressed concern that it is not a one-time market adjustment but that it will carry on. This year
there is contingency money but next year there will not be contingency money. The economy has been good but it is not going
to continue to be good. [Commissioner Williams left the meeting.] There will be a market adjustment in the economy and the
budget will not look the same in those years. Whether the economy goes down or not the adjustment will still have to be funded.
Deputy Chief Ransom said the market has changed and there has been a huge hole between Sanford and Orange
County. The Sanford Fire Department runs more calls per unit than any other department in Central Florida. Also, there is a
disproportionate amount of firefighters who have four or less years of experience than any other department.
Mayor Dale said the Fke Department has had several retirements of individuals who spent their entire career with
Sanford. New Fire Department Staff has been added because of retirements and not because Staff was lost to another
municipality. [Commissioner Williams returned .]
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City Commission, Sanford, Florida 3:30 P.M. Work Session September 11
City Manager VanDerworp said the difference between plans one and two is $24,000.
Aider discussion, the City Manager said he will bring this item up for direction during tonight's budget hearing.
Sidewalk Rehabilitation Program - and tree conflicts.
Public Works Director Jerry Herman and Landscape Architect Howard Jeffries were present to discuss the repair
of sidewalks that have tree conflicts. Mr. Herman said sidewalk repair was commenced and it became apparent there were
locations that had tree conflicts either because of the size of trees or tree roots. Mr. Jeffi-ies examined issues of work around
trees and offered opinions that are included with this item in today's Agenda. In summary, there are no simple solutions to the
problem but there are eight methods that may be used to minimize tree damage. Each location should be examined before a
technique is chosen. Even after careful consideration, older trees that are in decline may be lost even when using the most
conservative method.
Mr. Jeffries discussed some of the techniques listed in his memorandum.
After discussion, the Commission concurred that sidewalk repairs proceed and that trees be evaluated on a case
by case basis, using common sense and one of the eight techniques.
Boys and Girls Club lease.
Commissioner Williams reported she met with the Vice-President of the Boys & Girls Club and learned they have
hired Sandra Brown to serve as area Director, after which she talked with the President of the Corporate Board, Mrs. Bradley,
and expressed her concerns regarding the lack of quality programs and Sanford getting its fair share. She distributed to the
Commission a copy of a letter faxed by Mrs. Bradley communicating that she understood the concerns and that the Boys & Gifts
Club wants to be given an opportunity to address the City's concerns and will demonstrate an effective program and provide
a service.
After discussion, the Commission concurred to extend the lease for six months.
City. Manager's Briefing,
1. Process for requesting vacation of rights-of-way and easements. City Manager VanDerworp reported
the City's Land Development Regulation Code Section 6.19 reads that anyone can petition the Commission to vacate a right-of-
way, alley, street, etc. This allows people who may not have a stake in it to become involved in the process. He recommended
there be a petition process requiring signatures of 50% of owners who may be affected. Mayor Dale said there should be a
requirement that a certain percentage of signatures be required on an application and that there be a compelling reason for the
request. The Commission concurred.
2. ASA So,ball Tournament. City Manager VanDerworp asked if the Commission received an invitation
to the opening ceremony of the ASA Softball Tournament starting Thursday, September 14. A schedule of games should also
have been provided.
Performance evaluations of City. Manager. City. Clerk. and Commission I,iaia0n.
Mayor Dale encouraged the City Manager, City Clerk, and Commission Liaison to speak with their evaluators
regarding any questions concerning their evaluations or for the Commissioners to speak with them regarding anything specific,
whether praise or constructive criticism. The overall appraisal for City Clerk Janet Dougherty is 35.66, which is a very high top
performer under the evaluation process; a top performer is 27 - 36. City Manager VanDerworp's overall appraisal is 35.46.
Commission Liaison Diane Crews' overall appraisal is 37, which is the low end of outstanding. All three employees rated high
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in praise; each is doing an excellent job and it is very much appreciated.
There being no further business, the meeting was adjourned.
Attest:
Clerk
cp