TAMPA CITY COUNCIL
Thursday, January 14, 2010
9:00 a.m. session
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>>GWEN MILLER: Good morning.
09:05:26 We are going to call the CRA meeting to order.
09:05:29 I yield to Councilwoman Saul-Sena.
09:05:32 >>LINDA SAUL-SENA: Thank you, Madam Chairman.
09:05:33 It is my great pleasure to introduce Reverend Debby
09:05:38 Moss from Tampa Unity Church to lead us and she's
09:05:42 joined by Clark Jordan Holme, one of our wonderful
09:05:46 community advocates.
09:05:47 >>SAL TERRITO: We are supposed to be doing the City
09:05:51 Council meeting first.
09:05:52 >>LINDA SAUL-SENA: Then this will be the invocation
09:05:54 for the City Council meeting.
09:05:55 >>SAL TERRITO: That's why they have to go first because
09:05:57 the way the agenda is.
09:06:00 It has to go to council first and then CRA.
09:06:02 I hate to interrupt.
09:06:04 I apologize.
09:06:05 >>GWEN MILLER: Thank you for interrupting.
09:06:07 The Tampa City Council meeting will now come to order.
09:06:09 I yield to Ms. Linda Saul-Sena.
09:06:11 >>LINDA SAUL-SENA: Once more with feeling.
09:06:13 Good morning, everyone.
09:06:15 It is my great pleasure this morning to introduce
09:06:17 Reverend Debby Moss from Tampa Unity Church, who is
09:06:20 joined by Clark Jordan Holme who has been a great
09:06:24 advocate for good things in our community for many
09:06:26 Let us all stand for Reverend Moss' invocation and
09:06:30 remain standing for the pledge of allegiance.
09:06:32 >> Please join me as we create a sacred space to
09:06:40 acknowledge and bless the important work to be done by
09:06:43 each of us on this new day.
09:06:49 I invite you to turn within and connect with the spirit
09:06:52 with that which you consider holy as we acknowledge the
09:06:55 spirit of the universe known and called by many names.
09:06:58 We give thanks for this new day and the opportunity to
09:07:01 begin again.
09:07:03 We pray to be free from any limitations of yesterday
09:07:08 and ask for the strength, courage and wisdom to see the
09:07:11 light within ourselves and all others.
09:07:15 As we begin our important work today, may your spirit
09:07:19 go with us and lift our minds to the realm of truth.
09:07:23 May our work for this great City of Tampa be an
09:07:27 expression of integrity, inspiration, and excellence.
09:07:32 May our work fulfill a divine purpose and mission.
09:07:36 May it shine and light up all the darkened places.
09:07:41 As servant of the people, make us kind and
09:07:45 Show us the art of leadership and art of service, for
09:07:49 we are all in your service and here to serve and
09:07:52 support each other.
09:07:55 We give thanks for fulfilling our part in creating this
09:07:58 great global tapestry of humankind.
09:08:01 May we all honor, celebrate and be grateful for our
09:08:05 diversity and the rich blessing of being individuals
09:08:10 united in a common goal as serving the people.
09:08:14 We are blessed, and we give thanks to the creator of us
09:08:19 (Pledge of Allegiance).
09:08:39 >>JOSEPH P. CAETANO: Madam Chairman, a point of
09:08:44 special privilege?
09:08:44 >>GWEN MILLER: Roll call.
09:08:45 >>JOSEPH P. CAETANO: Here.
09:08:47 >>LINDA SAUL-SENA: Here.
09:08:47 >>GWEN MILLER: Here.
09:08:49 >>CHARLIE MIRANDA: Here.
09:08:55 >>JOSEPH P. CAETANO: I would like to include in our
09:08:56 prayers this morning the people of Haiti, and our Tampa
09:09:01 firemen who are on their way down there with rescue
09:09:07 May they be in good care while they are there.
09:09:10 Thank you.
09:09:10 >>GWEN MILLER: Thank you, Mr. Caetano, for reminding
09:09:13 Now we go to Mr. Sal Territo.
09:09:20 >>SAL TERRITO: We call this special meeting because we
09:09:23 have a small note we would like to get approved by City
09:09:25 You will be getting an explanation from on the people.
09:09:29 I'm here to answer any questions if you do have any.
09:09:31 >> Bob McDonaugh, economic development department.
09:09:40 We are here for council approval of a loan that the
09:09:44 Channel District CRA would like to take out through the
09:09:47 City of Tampa for stormwater and streetscape
09:09:51 improvements in the Channel District.
09:09:53 And I'm going to give you a quick overview.
09:09:57 I would like to first show you the dates.
09:10:03 On the Elmo, please.
09:10:05 This was brought to the CRA board in December.
09:10:10 Budget finance department received proposals in
09:10:12 We'll have a presentation to City Council and the CRA
09:10:16 board this morning.
09:10:17 And hopefully have a loan closing on February 1st.
09:10:28 This is for doing the underground retention for the
09:10:31 northern part of the Channel District building a vault
09:10:33 under York street for burying power lines, putting in
09:10:37 new water lines, new sewer lines, and a streetscape on
09:10:41 Washington street, which is adjacent to our new pump
09:10:52 The scope of work, the estimate is $8.7 million.
09:10:58 We have financed $6 million and a budget balance of
09:11:03 $2.7 million.
09:11:05 And I would like to add what's important is that the
09:11:11 way it's structured is that it allows us to do this
09:11:15 work immediately, but still allows plenty of free cash
09:11:18 flow to continue the infrastructure improvements in the
09:11:22 Channel District.
09:11:24 And while this loan is being paid down, we will
09:11:26 continue with the work on 12th Street, 11th street,
09:11:31 Twiggs and Kennedy Boulevard.
09:11:32 So it a really interesting proposition.
09:11:42 When we had done our pro forma, when I was looking at
09:11:46 these numbers over the last several month, I had looked
09:11:48 at four and three quarters, five percent, hoping to get
09:11:53 a number like that because that would work well within
09:11:55 our budget constraints, and the proposal that we got is
09:12:03 There are very nominal upfront cost.
09:12:05 We can run it through the fixed rate for five years,
09:12:08 which is a very aggressive rate, and allows us to
09:12:12 really continue to work in the Channel District and get
09:12:14 this work done immediately.
09:12:18 Bonnie Wise is here to answer any specific questions
09:12:21 about the documents and the approval process for the
09:12:25 board but if you have any questions for me I will
09:12:28 certainly be happy to answer them.
09:12:30 >>GWEN MILLER: Any questions by council?
09:12:32 >>MARY MULHERN: Thank you.
09:12:33 I'm just looking at this now, and get briefing on it so
09:12:40 I'm not really familiar with it, but I have a question
09:12:43 that came from a constituent that -- whether there was
09:12:47 a prepayment penalty.
09:12:48 >>> There's a one percent prepayment penalty if we
09:12:52 choose not to pay it out over the five years.
09:12:58 If we wanted to retire the debt early, let's say after
09:13:01 three years, the market came back and was doing so well
09:13:05 that we said, you know what?
09:13:06 Let's retire this debt because we have so much money.
09:13:09 Yes, there would be a one percent prepenalty.
09:13:12 >> That's all?
09:13:13 That's interesting.
09:13:14 Is that common?
09:13:15 >>> Yes, it is.
09:13:16 It's actually less than we were looking at from the
09:13:19 other proposals.
09:13:21 One of them wanted a yield maintenance fine-needle
09:13:24 aspiration which would be considerably higher, and if
09:13:26 you look at the interest rates on the other ones they
09:13:28 were higher than this proposal.
09:13:29 >>MARY MULHERN: And would this decision -- I'm just
09:13:34 curious, Bonnie, about why we are not bonding this.
09:13:38 >>> We looked at Buy America bonds, for example.
09:13:42 The process is a little more cumbersome.
09:13:45 The interest rate is a little less.
09:13:46 The upfront costs are a little more.
09:13:49 And it's much more complicated.
09:13:50 It might have taken us longer to put the money in
09:13:53 And, again, per city process, we need to have the money
09:13:57 in place before we go out and do our bid and get our
09:14:00 construction contracts in place.
09:14:04 >> So it's quicker to get a loan than --
09:14:07 >>> Quicker and actually cheaper in the long run.
09:14:14 >>BONNIE WISE: Director of revenue and finance.
09:14:17 When we brought this up at the CRA meeting last time we
09:14:20 talked about doing the bank loans for a couple of
09:14:22 One, because the maturity date is very short.
09:14:24 It only five years.
09:14:25 And there's extra costs involved with issuing a regular
09:14:29 bond issue which is typically over a longer period of
09:14:31 time, and those costs are greater, but you get to
09:14:35 amortize them over a longer period of time W.this being
09:14:38 so short, $6 million, we did an RFP, I think we sent to
09:14:43 the ten or so institutions and we did receive those
09:14:46 three proposals so we are really pleased with these
09:14:48 rates and the terms that they provided.
09:14:52 No service coverage requirements which was in the other
09:14:56 proposals, one thing that BB&T asked us to hold the
09:15:00 moneys with them, then they subsequently waived that
09:15:03 because the city does other work with BB&T so we were
09:15:07 all very pleased with this proposal.
09:15:09 >> Can I just add one thing?
09:15:11 That prepayment penalty, did all of the responders of
09:15:19 the top three, did they all have that?
09:15:21 >>BONNIE WISE: I don't think they all had that but
09:15:24 they all had some other onerous provisions which I
09:15:28 think the coverage provision with BB&T was one that did
09:15:30 not have that and the other rates were higher.
09:15:32 Because it's so short over five years, we frankly don't
09:15:35 anticipate prepaying this.
09:15:40 Bond issues often have prepayment penalties.
09:15:42 It could be 102, 101.
09:15:46 It just depends.
09:15:47 We really thought this was the provision that was
09:15:49 really pretty meaningless, frankly.
09:15:51 >>CHARLIE MIRANDA: Although 3.14 is a very good rate,
09:15:59 and I commend you all for getting that, don't feel
09:16:01 sorry for the banks.
09:16:02 They are only paying 1.7, 1.8 on CDs.
09:16:06 So they are still making money.
09:16:08 I'm glad they are.
09:16:09 That way we don't have to bail them out.
09:16:11 This is not -- this is a constant rate for the term?
09:16:17 >>> Yes, sir.
09:16:19 >>CHARLIE MIRANDA: I have no problem with it.
09:16:20 >>GWEN MILLER: I will go ahead and move the
09:16:24 >> Second.
09:16:25 >>THOMAS SCOTT: Also it's my understanding I thought
09:16:27 everybody was briefed already.
09:16:29 I was briefed on it.
09:16:30 >>BONNIE WISE: I think Mr. McDonaugh was not able to
09:16:35 get to everybody but got to most of the council
09:16:37 >>THOMAS SCOTT: And I always stress whenever you do
09:16:40 brief other council members because it's very important
09:16:42 that they get the same things that we do.
09:16:51 >>MARY MULHERN: I didn't get their briefing.
09:16:53 That's why I'm asking questions now last minute.
09:16:55 >>LINDA SAUL-SENA: Mr. McDonaugh, I have a question
09:16:58 about the streetscape on Washington.
09:17:00 We had a plan done by Wilson Miller for our
09:17:05 Is what they recommended what we will be installing?
09:17:08 >>> Very close to it.
09:17:10 We have a couple of residents along Washington street
09:17:12 specifically which had asked us to tweak it in response
09:17:16 to what they currently have there.
09:17:18 And we are working to accommodate them.
09:17:21 Like Louisa, for example, they'll come back with three
09:17:27 separate plans to try to accommodate what she wants.
09:17:28 The difficulty in a process like hers is that her
09:17:31 building is actually built right to the city
09:17:35 And so we have done three separate plans, and actually
09:17:37 sent another one yesterday.
09:17:40 We are working with the residents to try to accommodate
09:17:42 special circumstances.
09:17:43 >>LINDA SAUL-SENA: Good.
09:17:44 Because particularly in --
09:17:47 >>> I understand.
09:17:48 >>LINDA SAUL-SENA: Thank you.
09:17:48 >>> Certainly.
09:17:49 >>JOSEPH P. CAETANO: Mr. McDonaugh, don't sit down,
09:17:58 How many bids did you get for this $6 million?
09:18:04 >>> There were actually three formal responses to the
09:18:08 There were inquiries that were sent out, requests to
09:18:12 several banks, I think in the neighborhood of 10 or 12.
09:18:16 >> What I am referring to is the amount of work you are
09:18:18 doing, not the loan.
09:18:19 How did you come up on it going to cost you $6 million
09:18:22 to do this project?
09:18:23 >>> Oh.
09:18:24 We are working right now off of engineers' estimates.
09:18:29 And CH2M hill, and the job will be bid through at least
09:18:39 four companies.
09:18:40 >> So it hasn't been put out to bid yet?
09:18:42 >>> That's correct.
09:18:43 As Mrs. Saul-Sena indicated, one of the issues was
09:18:46 finishing the streetscape to make sure that everybody
09:18:48 was accommodated.
09:18:49 I would like to compliment, as an example, one of the
09:18:54 things that has an impact on costs is maintenance of
09:18:57 And one of the things that was able to work out is the
09:19:01 Port Authority has agreed to allow visitors to the
09:19:04 Florida Aquarium to traverse their property, to get in
09:19:09 and out of the aquarium during the construction
09:19:11 So it has minimal impact on the aquarium.
09:19:15 So what I'm trying to do is nail down the last of these
09:19:18 details before we go out and bid it so that way we make
09:19:21 sure that the contract knows exact -- contractor knows
09:19:26 exactly the conditions they will have to work with.
09:19:28 That should happen sometime within the next 30 days.
09:19:30 >> So what happens if the bids come in higher than the
09:19:32 amount of the loan that you anticipate on getting?
09:19:36 >>> We have sufficient money within the Channel
09:19:40 District budget to be able to pay that.
09:19:43 The reason that we did take the $6 million, it was a
09:19:46 little more money than we initially thought but we
09:19:48 wanted to make sure that we had a cushion to be able to
09:19:54 accommodate this.
09:19:54 >>THOMAS SCOTT: A couple things.
09:19:59 One is, Mr. Caetano, since this is your commit, why
09:20:03 don't you move that?
09:20:08 Just move it.
09:20:08 >>JOSEPH P. CAETANO: I would like to move item 1 under
09:20:13 building and zoning preservation.
09:20:15 >>THOMAS SCOTT: Are there any public comments?
09:20:17 Anyone from the public wish to comment to council on
09:20:21 this issue? It's been moved and seconded.
09:20:23 All in favor say Aye.
09:20:33 >>MARY MULHERN: I have one piece of new business since
09:20:35 we are meeting before we adjourn.
09:20:41 >>MARTIN SHELBY: I'm sorry, it's not listed under new
09:20:44 You have the -- you will have that opportunity this
09:20:46 evening if you wish.
09:20:48 I believe it's on the agenda.
09:20:50 >>MARY MULHERN: It will be very quick.
09:20:52 I just wanted to ask for a commendation.
09:20:55 This is something I just heard about after last week's
09:20:57 meeting, to the students and crew of the tall ship
09:21:00 Gunilla, to create a more sustainable world through
09:21:06 cultural study and exchange presented on February
09:21:10 This is a ship from Sweden that travels around the
09:21:13 world with students on it as part of their learning.
09:21:16 >> Second.
09:21:18 >>THOMAS SCOTT: Moved and seconded.
09:21:19 All in favor signify by saying Aye.
09:21:22 >>THE CLERK: Receive and file?
09:21:28 >>GWEN MILLER: Move to receive and file.
09:21:30 >> Second.
09:21:31 >>THOMAS SCOTT: All in favor?
09:21:34 Anything else before council?
09:21:36 Then we stand adjourned.
09:21:39 (City Council meeting adjourned.)
09:21:39 - - - -