MINUTES OF THE EMERGENCY SARASOTA CITY COMMISSION MEETING OF JULY 10, 1997, AT 9:00 A.M. PRESENT: Mayor Gene Pillot, Vice Mayor Jerome Dupree, Commissioners Mollie Cardamone, David Merrill, and Nora Patterson, City Manager David Sollenberger, City Auditor and Clerk Billy Robinson, and City Attorney Richard Taylor ABSENT: None PRESIDING: Mayor Gene Pillot Mayor Pillot stated that a request has been received for an emergency meeting of the City Commission; that the City Auditor and Clerk will review the relevant procedures to call an emergency meeting; that the City Attorney will explain the reasons for the emergency meeting. City Auditor and Clerk Robinson stated that Article III, Section 9(c) of the Charter of the City of Sarasota provides: The mayor, or any two (2) members of the City Commission, may call emergency meetings of the commission. The most appropriate and effective notice under the circumstances shall be provided for emergency meetings. The method of providing notice shall be recorded in the minutes of the meeting. City Auditor and Clerk Robinson stated that any emergency meeting called at this time would coincide with an already scheduled workshop meeting of the City Commission which has been previously noticed as usual to the newspapers and broadcast media and through postings on the bulletin board at City Hall. City Attorney Taylor stated that the emergency encountered involves the Local Option Sales Tax (L.0.S.T.) referendum of all the municipalities and the unincorporated area of Sarasota County; that the referendum is being called under an ordinance of Sarasota County identifying each municipality with an estimate of L.0.S.T. revenues if renewed, which is $58.4 million for the city of Sarasota; however, the L.O.S.T. projects list provided by the City of Sarasota totals approximately $52 million; therefore, the L.O.S.T. projects list, which is an exhibit to the Sarasota County ordinance, is at odds with the body of the ordinance; that the City has requested Sarasota County reduce the estimated revenues; that Sarasota county personnel have informed the City Administration that the same calculation was used for all municipalities and the unincorporated area; therefore, to avoid any potential challenge, Sarasota County will not reduce estimated revenues; that Sarasota County is requesting the City include an additional approximately $6 million in the L.0.S.T. projects list. BOOK 42 Page 14922 07/10/97 9:00 A.M. BOOK 42 Page 14923 07/10/97 9:00 A.M. City Attorney Taylor continued that the referendum question will specify the categories in which funds will be expended; that the categories in the L.O.S.T. projects list provided by the City of Sarasota were based upon discussions with the City Commission but are not the same as the ballot question; that Sarasota County has take the City's projects list and recategorized projects to coincide with the categories on the ballot question; that the ordinance has been published; therefore, Sarasota County is obligated by law to provide copies to the public. City Manager Sollenberger stated that the City will have to follow the nomenclature developed by Sarasota County; that the City Finance Director has not projected revenues of $58.4 million; that the formula used by Sarasota County to estimate revenues does not taken into account the population growth rate of the City of Sarasota versus that of Sarasota County, Venice or North Port; that the City Finance Director's more conservative projection is probably more accurate; however, the suggestion is to allocate $6 million to Citywide curb and gutter installation in years 9 and 10, which has been of interest to the Commission in the past; that the dollars would be isolated and available in the event the revenues are forthcoming; that a future City Commission could make a determination as to the specific projects in years 9 and 10. city Attorney Taylor stated that the Administration proposes making the changes immediately; that formal ratification of the Administrative action by the City Commission could be noticed for the Special Meeting already scheduled this afternoon. Mayor Pillot stated that the Charter of the City of Sarasota provides for an emergency meeting and asked if such meeting can be called at this time without violating State law? City Attorney Taylor stated yes. City Auditor and Clerk Robinson stated that Vice Mayor Dupree previously requested that an item be placed on the next agenda to rescind a substitute motion adopted at the July 7, 1997, regular City Commission to allocate $250,000 of L.O.S.T. extension funds to parking lots in Newtown; that the next regular City Commission meeting of July 21, 1997, would now be too late for inclusion of any changes in the L.O.S.T. projects list; that Vice Mayor Dupree may wish to give notice at this time to place the item on the agenda. Vice Mayor Dupree stated that confusion existed at the time the vote on the substitute motion was taken; that notice is being given to place an item on the agenda of the emergency meeting to rescind the motion approved at the July 7, 1997, regular city Commission meeting to allocate $250,000 in L.O.S.T. extension funds from street resurfacing projects to parking lots in Newtown as substituted for the main motion to allocate $1 million in L.O.S.T. extension funds for economic development. Commission Merrill stated that the emergency does not create any more monies through the L.O.S.T.; that caution should be exercised in communicating to the public that certain projects will be completed as, in reality, no additional money is generated; that the population of the city of Sarasota is not growing at the same rate as Sarasota County; that the Administration recommends an as- yet undefined category which is acceptable; that the additional revenues forecasted by Sarasota County should be allocated to undefined rather than specifically identified projects. Mayor Pillot stated that hearing no objections, an emergency meeting of the City Commission is called. The meeting was called to order in accordance with Article III, Section 9(c) of the Charter of the City of Sarasota at 9:08 a.m. 1. REQUEST OF SARASOTA COUNTY TO ALLOCATE ADDITIONAL $6 MILLION IN FORECASTED L.0.S.T. REVENUES AND TO RECATEGORIZE PROJECTS ACCORDING TO THE NOMENCLATURE UTILIZED BY SARASOTA COUNTY = RESCINDED A SUBSTITUTE MOTION TO ALLOCATE $250,000 FROM THE STREET RESURFACING PROJECTS TO PARKING LOTS IN NEWTOWN APPROVED AT THE JULY 7, 1997, REGULAR COMMISSION MEETING; APPROVED TO ALLOCATE $1 MILLION OF L.O.S.T. FUNDS FROM STREET RESURFACING PROJECTS TO CAPITAL IMPROVEMENTS IN THE NEWTOWN COMMUNITY; APPROVED TO ALLOCATE THE $6 MILLION IN ADDITIONAL L.0.8.T. FUNDS FORECASTED BY SARASOTA COUNTY TO A CONTINGENCY UNDER THE CATEGORY OF COMMUNITY PROJECTS; STAFF TO RECATEGORIZE PROJECTS ON THE LIST FOR L.0.S.T. FUNDING USING SARASOTA COUNTY'S NOMENCLATURE #1 (0275) through (0760) Commissioner Patterson asked if a category entitled "contingency" can be created for the additional Local Option Sales Tax (L.O.S.T.) revenues forecasted by Sarasota County. City Attorney Taylor stated that a contingency has been identified for the Van Wezel Performing Arts Hall (VWPAH) i that another contingency could be identified; that Sarasota County has placed the VWPAH project under the category of Community Projects; that a category of Public Works also exists. Commissioner Patterson asked the categories used by Sarasota County? City Attorney Taylor stated that the categories are: Sidewalks, Public Works, Transportation, Community Projects, and Parks/ Recreation/Peaches. BOOK 42 Page 14924 07/10/97 9:00 A.M. BOOK 42 Page 14925 07/10/97 9:00 A.M. On motion of Commissioner Patterson and second of Vice Mayor Dupree, it was moved to allocate: 1) the $6 million forecasted by Sarasota County as additional L.O.S.T. revenues minus $750,000 as a contingency under the category of Community Projects, and 2) $750,000 for capital projects on Martin Luther King, Jr., (MLK) Way. Mayor Pillot restated the motion as to transmit to Sarasota County that: 1) the additional L.0.S.T. revenues in the County's projections minus $750,000 will be placed in the category of Community Projects as a contingency and 2) the $750,000 will be allocated to capital projects on MLK Way. Commissioner Cardamone stated that an opportunity to discuss the request of the Vice Mayor would have been desirable; that spending money in the Newtown community is not a concern; that listing this allocation of $750,000 for capital projects without an indication of how the dollars will be used is a concern when the rest of the L.O.S.T. projects list has been so carefully crafted; that the initial request was for $1 million; that the Commission discussed the request and determined the money could not be spent in the manner proposed; that parking lot purchases and improvements to encourage more business development in Newtown could be done; that the substitution motion was for $250,000 promoting a comfort level when the purchase of frictional housing for $50,000 on MLK Way was recently approved; that the house can be razed and the site could be used as a parking lot; that the thought was the purchase of four more similar properties at $50,000 each would probably provide all the parking needed; and asked the planned use for an additional $750,000? Vice Mayor Dupree stated that the additional $750,000 could be used for the demolition of older buildings to provide space for newer buildings in the Newtown area. Commissioner Cardamone asked if the City can demolish non-publicly owned buildings with L.O.S.T. funds? City Manager Sollenberger stated that research into the question would be necessary. Commissioner Patterson stated that with the approval of the seconder, the motion can be separated into two parts. Vice Mayor Dupree concurred. Commissioner Patterson stated that the Commission has previously allocated funds and allowed groups to form a consensus concerning how the money should be spent to develop their business communities and neighborhoods; that the ability to reach a consensus can bring a community together; that Laurel Park is an example of a group coming together under similar circumstances; that the possibility of buying land to create a community market, which has been discussed by the community for a long time, was discussed at a recent meeting concerning the Sarasota North Action Plan (SNAP) i that purchasing land for a community market or a parking lot are examples of possible uses for L.O.S.T. funds; that L.0.S.T. revenues will be generated over a 10-year period; therefore, ample opportunity will be available to decide the specific uses. Commissioner Merrill stated that no new dollars are available; that an accounting mechanism is producing the difference, according to the City Finance Director; that an additional $750,000 for specific projects is being discussed; that either the availability of funds will have to wait until the last years of the L.0.S.T. extension or other possible projects considered, i.e., Lime Avenue, curbs and gutters along Shade Avenue; that the allocation of the real dollars projected by the city Finance Director has been determined; that allocating the funds to a pool of money called Community Projects for spending at the end of the L.O.S.T. extension is acceptable; that by that time, the availability of the additional funds will be known; that allocating $750,000 specifically to a certain project may be misleading; that a lump sum allocation is advocated; that if the additional revenues are realized, the Commission can spend the money on projects determined to be well documented and important to the community. Commissioner Cardamone stated that a compromise of finding $500,000 for allocation to capital projects and the balance in Community Projects is a possibility. Commissioner Merrill stated that the funds could be allocated for community economic redevelopment; that Lime Avenue is just as needy as MLK Way; that the East/Lime Avenue corridor has no official plan at this time; however, the area represents the so-called "line of decline, a where the City is not getting better but actually declining; that an argument can be made the more immediate need is to allocate additional money on the East/Lime Avenue corridor; that $1 million was spent for landscaping on MLK Way a few years ago; that another $1 million project is underway at the present time; that if Lime Avenue is a part of Newtown, some comfort would be derived through allocation for economic development projects in the most needy sections of the community. On motion of Commissioner Cardamone and second of Commissioner Merrill, it was moved to amend the main motion to substitute the term "economic development" for MLK Way. Commissioner Patterson stated that L.O.S.T. funds can only be used for certain purposesi that economic development was determined to be too broad a category as the majority of economic development projects are ineligible for L.0.S.T. funding. BOOK 42 Page 14926 07/10/97 9:00 A.M. BOOK 42 Page 14927 07/10/97 9:00 A.M. Commissioner Merrill stated that certain community projects such as a parking lot, which may lead toward economic development, could be considered an infrastructure improvement. Commissioner Patterson stated that is correct; that the term capital projects was used for that reason. Commissioner Cardamone stated that the term capital projects for economic development could be used. City Attorney Taylor stated that utilizing the term capital projects is preferable. Mayor Pillot restated the amendment as to allocate $750,000 from the additional revenues forecasted by Sarasota County to capital projects economic development, Newtown. Commissioner Cardamone stated that the area of Newtown was not specified. Commissioner Merrill stated that assurance Lime Avenue will be eligible for the designated L.0.S.T. funds is desired. Mayor Pillot restated the amendment as to provide $750,000 from the additional revenues forecasted by Sarasota County for capital projects - economic development. Commissioner Patterson stated that Newtown is the most economically depressed area of the community, more so than Lime Avenue; that the price of property on Lime Avenue, which has viable commercial segments, is higher than comparable property on MLK Way; that most projects on the L.O.S.T. projects list have specificity and are for particular neighborhoods; that her intent is the $750,000 is for projects just as viable as all others on the list; that her original intent had been for the funds to come out of street resurfacing; that the current motion is simpler than rescinding the previous motion; that the funds allocated on the L.O.S.T. projects list for street resurfacing substantially exceeded previous historical expenditures; that funds for street resurfacing have always come out of Gas Tax funds as well as L.O.S.T. funds; that the City's street resurfacing program has been aggressive for the past three to four years; that the funds can be taken out of street resurfacing if the Commission prefers. Vice Mayor Dupree stated that Lime Avenue is in his district; that agreement to include Lime Avenue would be forthcoming under other circumstances; however, projects in neighborhoods other than Newtown are not linked to other contingencies; that the concern is making projects in the Newtown area provisional. Commissioner Merrill stated that the amendment is not expected to provide economic development funds for Siesta Drive, for example; that the amendment could be limited to providing funds for low income areas of the community which is his intent; that the dollars are not actually available; that the street resurfacing allocation would be changed if the intent is to provide guaranteed funding; that the City Finance Director has indicated the additional funds will not materialize; that he agrees with allocating the funds for economic development for economically depressed areas; that the funds so identified should be in the latter years of the L.0.S.T. extension as the political process of reevaluating the existing allocation has not occurred. Commissioner Cardamone stated that tying the additional $6 million to MLK Way has created the current dilemma; that the amendment is withdrawn which may create a parliamentary problem for which she apologizes; that the discussion should begin with a clean slate. Mayor Pillot asked for instruction on the withdrawal process. City Auditor and Clerk Robinson stated that since the amendment has been restated by the Mayor, the amendment can only be withdrawn by the consensus of the Commission. Mayor Pillot asked for any disapproval of withdrawing the amendment; and stated that upon hearing no objections, the amendment is withdrawn by consensus of the Commission. Commissioner Patterson stated that the motion to allocate $750,000 for capital projects on MLK Way is withdrawn. Mayor Pillot asked for any disapproval of withdrawing the motion; and stated that upon hearing no objections, the motion is withdrawn by consensus of the Commission. Commissioner Patterson stated that the motion to allocate the $6 million forecasted by Sarasota County as additional L.O.S.T. revenues minus $750,000 as a contingency for the category of community Projects is withdrawn. Mayor Pillot asked for any disapproval of withdrawing the motion; and stated that upon hearing no objections, the motion is withdrawn by consensus of the Commission. On motion of Vice Mayor Dupree and second of Commissioner Patterson, it was moved to rescind the motion to allocate $250,000 from the street resurfacing projects to parking lots in Newtown adopted as a substitute for the main motion to allocate $1 million for economic development at the July 7, 1997, regular City Commission meeting. Mayor Pillot asked if a supermajority vote is required. BOOK 42 Page 14928 07/10/97 9:00 A.M. BOOK 42 Page 14929 07/10/97 9:00 A.M. City Auditor and Clerk Robinson stated no, a simple majority is required as previous notice was given. Mayor Pillot called for a vote on the motion to rescind. Motion carried (4 to 1): Cardamone, yes; Dupree, yes; Merrill, no; Patterson, yes; Pillot, yes. On motion of Vice Mayor Dupree and second of Commissioner Patterson, it was moved to allocate $1 million of L.0.S.T. funds from street resurfacing projects to capital improvements on MLK Way. Commissioner Patterson stated that an earlier suggestion was to allocate the funds for capital improvements in Newtown rather than specifying MLK Way; and asked for comments. Vice Mayor Dupree stated that he will revise the motion to indicate capital improvements in Newtown. Commissioner Patterson concurred. Commissioner Patterson stated that both residential and commercial area will be included. Vice Mayor Dupree stated yes. Commissioner Merrill asked the boundaries of Newtown. Commissioner Cardamone stated that the boundaries of Newtown are known by tradition and recognized by members of the community. Commissioner Merrill stated that street resurfacing is one of the City's most popular programs and affects residents directly in front of their homes and improves property values; that the one cent L.O.S.T. is voluntary; that voters will support the L.O.S.T. extension if enough of a benefit is perceived; that the geographic distribution of L.O.S.T. funds already allocated will be perceived as fair; that no specific plan has been identified for the expenditure of the requested funds; that reallocating money from the street resurfacing program for an undefined project will be a detriment to voter approval; that the motion will not be supported. Mayor Pillot asked if the motion resolves the issue for which the emergency meeting was called? City Attorney Taylor stated that the $6 million in additional funds forecasted by Sarasota County must still be addressed. Mayor Pillot restated the motion as to allocate $1 million of L.O.S.T. funds from street resurfacing projects to capital improvements in the Newtown community Motion carried (4 to 1): Cardamone, yes; Dupree, yes; Merrill, no; Patterson, yes; Pillot, yes. On motion of Commissioner Patterson and second of Vice Mayor Dupree, it was moved to allocate the $6 million in additional funds forecasted by Sarasota County to a contingency under the category of Community Projects. Mayor Pillot stated that the estimate by the City's Finance Director is believed to be the better estimate and will prove correct over time; although hope is expressed that the City's Finance Dirèctor is incorrect and the additional $6 million will be realized. City Manager Sollenberger stated that Sarasota County's projections for City revenues on the prior 10-year enactment of the L.O.S.T. were healthier than actual revenues received; that about $500,000 less in L.O.S.T. revenues than the original projection per year has been realized; that the formula utilized by Sarasota County does not take into account the difference in population growth rate of the City versus the County; that the population in Sarasota County has increased over the past 10 years by 50,000, which is equivalent to the size of the City of Sarasota; therefore, the City of Sarasota has received a decreasing share of the L.O.S.T revenues; that the projections of the City's Finance Director are probably accurate. Mayor Pillot stated that the City's Finance Director has a long, positive record of accurate financial projections resulting in the expressed confidence. Mayor Pillot continued that certain category differences exist between the City and the County; that the County has requested a change to the categories used by the County; that the City is pleased to be cooperative; however, the change does not reflect a mistake on the part of City staff. Mayor Pillot called for a vote on the motion to allocate the $6 million in additional funds forecasted by Sarasota County to a contingency under the category of Community Projects. Motion carried unanimously (5 to 0): Cardamone, yes; Dupree, yes; Merrill, yes; Patterson, yes; Pillot, yes. Commissioner Patterson stated that retaining the subcategories utilized in the L.O.S.T. projects list is desirable; and asked if projects will be recategorized according to the categories utilized by Sarasota County? City Manager Sollenberger stated that the intent of the Commission will be followed in recategorizing projects. BOOK 42 Page 14930 07/10/97 9:00 A.M. BOOK 42 Page 14931 07/10/97 9:00 A.M. 2. ADJOURN #1 (0760) There being no further business, Mayor Pillot adjourned the emergency meeting of July 10, 1997, at 9:40 a.m. T RL6 GENE M. PILLOT, MAYOR ATTEST: Billw E Robere BILLY E ROBINSON, CITY AUDITOR AND CLERK