OFFICE OF THE CITY COUNCIL

 

CHERYL L. BROWN                                                                                                                     117 WEST DUVAL STREET, SUITE 425

            DIRECTOR                                                                                                                                                                                                 4TH FLOOR, CITY HALL

   OFFICE (904) 630-1452                                                                                                                                                                                  JACKSONVILLE, FLORIDA  32202

     FAX (904) 630-2906                                                                                                                                                                                                              

  E-MAIL: CLBROWN@coj.net

 

SPECIAL CITY COUNCIL MEETING MINUTES

COMMITTEE OF THE WHOLE ON 2013-694


November 12, 2013

1:00 p.m.

 

Location:  City Council Chamber, City Hall – St. James Building; 117 West Duval Street,

    

In attendance: Council Members Gulliford (President), Anderson, Bishop, Boyer, Clark, Crescimbeni, Daniels, Gaffney, Holt, Jones, Joost, Lee, Love, Lumb, Redman, Schellenberg and Yarborough

Excused: Council Members Brown, Carter

 

Also:  Peggy Sidman, Paige Johnston and John Sawyer – Office of General Counsel; Kirk Sherman, Janice Billy and Kyle Billy – Council Auditor’s Office; Carol Owens and Philip Zamarron – Legislative Services Division; Steve Cassada – Council Staff Services; Jeff Clements – Council Research Division; Chris Hand – Mayor’s Office; Tom Goldsbury – Public Works Department; Alan Verlander – Sports and Entertainment Office;  Ronnie Belton, Glenn Hansen and Mark Stickney – Finance Department; Jack Shad – Public Parking Division; Paul Crawford – Office of Economic Development; Mark Lamping and Paul Harden – Jacksonville Jaguars

 

Meeting Convened:  1:08 p.m.

 

Council Member Yarborough gave the invocation and Council Member Boyer led the Pledge of Allegiance.  President Gulliford opened a public comment period and several members of the public addressed the Council.

 

Council Member Love distributed a package of 8 proposed amendments largely reflecting issues and concerns raised by the Council Auditor’s Office.  Assistant Council Auditor Janice Billy reviewed the Auditor’s Office’s 3-page list of issues, concerns and recommended amendments. Ms. Billy stated that CAO issues/concerns number 2, 4, 7 and 11 were not addressed by Council Member Love’s proposed amendments.  In response to a question, Senior Debt Manager Marc Stickney stated that the City’s current commercial paper interest rate is 0.25% and including the cost of a letter of credit, the initial borrowing cost for the project will be just over 1%.  The financing will be split into 2 maturities – a 15 year amortization for the scoreboard and a 30 year amortization for the other capital improvements.  Initial debt service is anticipated to be $3.2 million per year.

 

The committee discussed the conditions under which the City could use the North End Zone improvements with the Jaguars’ consent and the naming rights revenue for that new facility. Council Member Joost asked what protections might keep the Jaguars from relocating to another city or another county in the Jacksonville area prior to the full amortization of the bonds for the proposed improvements.  John Sawyer of the General Counsel’s Office stated that the current stadium lease has a liquidated damages clause should the team vacate the stadium before the bonds are fully amortized. Kirk Sherman explained the differences among the tourist development tax, the convention development tax, and the sales tax rebate relating to stadiums housing professional sports franchises. In response to a question about the revenue sources being contemplated to pay for other capital and maintenance needs in the Sports Complex to supplement the bed tax revenues being proposed for debt service on the new bonds, Mayor’s Chief of Staff Chris Hand stated that with the improving economy the City’s bed tax revenue is beginning to grow, the arena and baseball stadium could gain naming rights sponsors, and another effort will be made in the spring legislative session to have the Florida Legislature expand the sales tax rebate for professional sports stadiums from $2 million to $4 million per year.

 

The Committee of the Whole entertained several motions to adopt Amendments A through H as distributed by Council Member Love and several amendments recommended by the Council Auditor’s Office (CAO #7 and 11), all of which were debated and approved.  A motion by Council Member Boyer to require the Jaguars to assume responsibility for operation and maintenance of the North End Zone water features was approved.

 

Motion (Lee): to call the question – approved.

 

Motion (Clark): to recommend approval of the lease amendment as comprehensively amended by the Committee of the Whole – approved 15-1-1 (Joost opposed; Anderson abstaining).

 

Meeting adjourned: 3:15 a.m.

 

 

Minutes:  Jeff Clements, Council Research

                11.15.13   Posted 3:00 p.m.

Tapes:      Committee of the Whole on 2013-694 – LSD

                 11.12.13

Materials:  Love amendment packet; Council Auditor’s Office Analysis of 2013-694 - LSD

    11.12.13