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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 years.

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

09:07:44 compassionate.

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

09:08:18 all.

09:08:19 Amen.

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

09:09:03 dogs.

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 us.

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 Council.

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 December.

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

09:10:48 location.

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

09:11:58 3.14%.

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

09:13:52 place.

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 reasons.

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

09:16:23 recommendation.

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 members.

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 Thanks.

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

09:17:03 streetscapes.

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

09:17:33 right-of-way.

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,

09:17:57 please.

09:17:58 How many bids did you get for this $6 million?

09:18:04 >>> There were actually three formal responses to the

09:18:07 RFP.

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

09:18:56 traffic.

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 process.

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.

09:20:25 Opposes?

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 business.

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 4th.

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.

09:21:21 Opposes?

09:21:22 Okay.

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 Okay.

09:21:34 Anything else before council?

09:21:36 Then we stand adjourned.

09:21:39 (City Council meeting adjourned.)

09:21:39 - - - -