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03/17/2003 CITY COMMISSION WORK SESSION CITY OF CLEARWATER March 17, 2003 Present: Brian J. Aungst Mayor/Commissioner Whitney Gray Vice-Mayor/Commissioner Hoyt P. Hamilton Commissioner William C. Jonson Commissioner Frank Hibbard Commissioner Also present: William B. Horne II City Manager – arrived at 10:39 a.m. Garry Brumback Assistant City Manager Ralph Stone Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia O. Sullivan Board Reporter The Mayor called the meeting to order at 9:03 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Service Awards Two service awards were presented to City employees. The Commission recessed from 9:04 to 9:11 a.m. to meet as the Pension Trustees. BU BUDGET First Quarter Budget Amendments The First Quarter Budget Review is in accordance with the City Code of Ordinances. The report is based on three months of activity from October 2002 through December 2002 during the current fiscal year. The report comments on major variances, as well as documents all proposed amendments. General Fund Significant Fund amendments are 1) - expenditure amendments reflect a net increase of $1,692,860 at first quarter. The majority of this increase is due to one-time allocations of retained earnings in the amount of $1,132,000 to provide advance funding for the Clearwater Library Foundation funds for construction, and $450,000 allocated to the Harborview Fund, which was approved by the City Commission in February 2003. Other smaller increases include funding the neighborhood grants and service coordinator position totaling $67,900 in Development Services and an increase of $20,870 in the final tax increment payment to the CRA (Community Redevelopment Agency) based on final taxable values. These increases are offset easily by funds returned to the General Fund from closed capital projects. An additional increase of $22,000 in Economic Development for temporary services is offset by a like increase in Community Development Block Grant revenue Commission Work Session 2003-0317 03/17/03 1 General Fund Reserves reimbursing the General Fund for this cost and 2) – To ensure adequate reserves, the City Commission’s policy reflects that General Fund unappropriated retained earnings of 8.5% of the City’s budgeted General Fund expenditures must be maintained as a reserve to guard against future emergencies. With the closing of year-end 2002 books and allocation of reserves noted above, estimated General Fund reserves at first quarter are approximately $10.6 million, or 11.5% of the current year General Fund budget, exceeding the City reserve policy by just over $2.7 million. Gas Fund The only significant amendments to other City Operating Funds are: 1) - First quarter amendments to the Gas Fund recognize an increase of $192,110 in budgeted expenditures, basically due to the increased cost of fuel and contractor costs. This amendment is offset easily by increases in anticipated revenues from sales and interest Harborview Fund earnings of more than $314,000; 2) - First Quarter revenue amendments reflect the receipt of $450,000 of retained earnings from the General Fund to correct the deficit Central in the current asset balance approved by the City Commission on February 5, 2003; 3) Insurance Fund - The only significant amendment to the Central Insurance Fund at first quarter recognizes the allocation of $500,000 of retained earnings from the Central Insurance Fund for property, casualty and liability insurance premiums. The Commission approved this amendment in September 2002 with the Commission’s approval for the purchase of property, Capital Improvement casualty and liability insurance contract for FY (Fiscal Year) 2002/03; 4) Fund - Amendments to the Capital Improvement Fund total a net increase of $1,462,907. The most significant increases includes the transfer of $1,132,000 of General Fund retained earnings to the Main Library construction project to support the final construction contract phase and an increase of $605,000 to the Community Sports Complex project based upon final budget figures presented to the Commission in January. The budget amendments include more than $276,000 that is being returned to the General Fund with the completion or closing of projects, including $141,100 of funds appropriated for demolition of the Cabana Club last year, which no longer is necessary. The City Commission previously has approved Special Program Fund almost all capital improvement project budget increases; and 5) - Amendments to the Special Program Fund total a net increase of $886,867. Of this amount, almost $393,000 is directly related to Special Event revenues received during the first part of the year and more than $300,000 represents Public Safety project revenues including almost $110,000 in court proceeds from contraband forfeitures and more than $140,000 in grants for DUI enforcement, Operation Apoyo Hispanic, and other public safety programs. Budget Director Tina Wilson said the reserve of General Fund unappropriated retained earnings has been increased to 8.5% to help departments, such as Fire and Police, to fund an anticipated high number of retirements. Concern was expressed regarding the approximate $20,000 cost to remove parking and restripe Cleveland Street during Spring Break. It was indicated City of St. Petersburg participation in the Kapok Tree stormwater project had saved the City more money than the road work cost. ED/HSG ECONOMIC DEVELOPMENT/HOUSING Ord 7063-03 Public Hearing & First Reading - – Amend the Community Development Code allowing for sidewalk cafes to be located on private property and on public rights-of-way in the Downtown and Tourist districts. Commission Work Session 2003-0317 03/17/03 2 As the City of Clearwater experiences renewed interest from restaurant owners to locate eating establishments on Clearwater beach and Downtown due to significant public capital improvements, the City recognized the need to address, in a comprehensive way, outdoor seating on private property and in the public right-of-way, i.e. sidewalk cafés. Sidewalk cafés provide a unique environment for food consumption that enhances the pedestrian, urban and beach character of the City and provides an additional amenity for the public to enjoy. Furthermore, sidewalk cafés provide an opportunity to promote economic development and further the City’s redevelopment goals. A sidewalk café can be established as an accessory use to an adjacent business and located outside the boundaries of the building; food and beverage service or other activities related to the principal use may be allowed as part of the sidewalk cafe. Sidewalk cafés on private property are permitted in the Commercial, Downtown, and Tourist zoning districts of the City. Sidewalk cafés on the public right-of-way will be allowed only in the Downtown and Tourist districts on Clearwater beach due to the high intensity of development and lack of vacant land. In addition, sidewalk cafés on the public right-of-way will require a permit to operate. The permit will be associated with a $120 fee and renewed annually. The ordinance provides standards and criteria for developing sidewalk cafés on private property and in the public right-of-way. The ordinance strives to improve community aesthetics through the regulation of sidewalk cafes through a pre-application meeting and design review. In addition, maintenance, safety, and liability standards are stipulated to maintain high standards for development, which are essential in a community undergoing redevelopment. The ordinance also details application requirements and the review process. For existing restaurants desiring to establish a sidewalk café in the right-of-way, the completed application will be reviewed as an accessory use/Minimum Standard Development within three working days. If all conditions are met, a permit will be granted. Key components of the ordinance: 1) Safety - Sidewalk cafes should promote efficient and direct pedestrian pathways. Sight visibility triangles must be maintained at all times. In addition, no food preparation is allowed on the sidewalk; 2) Design - To enhance the visual quality of the urban environment, the café will comply with district Design Guidelines. Specifically, furniture and fixtures shall be of good design and made of quality materials and workmanship. The edge of the sidewalk café area in the right-of-way shall be delineated using non-permanent fixtures such as railings, potted plants, decorative chains, or other approved fixtures; 3) Maintenance - The sidewalk café area, the area from the sidewalk café to the curb, and five feet beyond either end will be maintained in a neat and orderly appearance at all times and shall be cleared of all debris on a daily basis. Tables, chairs, umbrellas, etc. shall be maintained in a clean and attractive manner and be in good repair at all times; 4) Alcohol Allowed - With a valid alcohol license from the State of Florida, alcoholic beverages are allowed for consumption in connection with a restaurant use. However, alcoholic beverages must remain in the designated sidewalk café area. An amendment to the code allowing open containers in the sidewalk café area will be presented as a separate ordinance; 5) Music - No amplified music is allowed on sidewalk cafes in the public right-of-way. Amplified music on private property shall be reviewed for impact to surrounding properties. Additional requirements for sidewalk cafés on public rights-of-way: 1) Safety - The City may require the temporary removal of sidewalk cafés when street, sidewalk, or utility repairs Commission Work Session 2003-0317 03/17/03 3 necessitate such action, during any emergency situation, or in the interest of public safety. A minimum of four feet will be maintained at all times to allow unobstructed pedestrian pathways along the sidewalk. In congested pedestrian areas, this minimum width may be increased; 2) Liability - A written agreement with the City is required where the permit holder agrees to indemnify, defend, save and hold harmless the City from all claims, liability, lawsuits, damages and causes of action which may arise out of the use of the public sidewalk; and 3) Insurance - Comprehensive General Liability insurance on an “occurrence” basis in the amount of $500,000 is required. The City is to be included specifically as an additional insured on the policy. Two additional ordinances will be needed in conjunction with the adoption of the sidewalk café ordinance to allow alcohol on the public right of way in the sidewalk café area and repeal old provisions related to sidewalk cafés in the Code. The Community Development Board reviewed this item on March 18, 2003, and recommended approval. Assistant Director of Community Redevelopment Gerry Campos said staff had based fees on research of other cities. Planning Director Cyndi Tarapani said the $50 permit fee application does not cover City costs. Several City fees for items of considered importance do not cover associated costs. Staff is prepared to process applications quickly. She anticipated the number of applications will decrease once initial requests are processed. The City Attorney said it should not be difficult for restaurants to add the City to their liability insurance policies. Ms. Tarapani said according to the Code, vendor promotional items displayed outdoors and lettering on awnings and umbrellas are considered signage. Beach and downtown guidelines restrict signage. It was felt businesses pay for promotional items when they purchase goods and should be able to use them. As sidewalk cafés in Ft. Lauderdale use umbrellas featuring corporate logos, it was recommended the Commission consider approving their use in Clearwater. Concern was expressed retailers will not have the same opportunity as food service businesses to use the public sidewalk to increase sales revenue. It was stated sidewalk cafés are an important part of the environment the City wants to create. Assistant City Manager Ralph Stone said outdoor retail sales would appear cluttered and denigrate the appearance of downtown and the beach. Sidewalk cafés create a pedestrian friendly place to sit and watch people. The City Attorney said permitting food service, and not retail businesses, to use the sidewalk is not an inconsistency. Ms. Tarapani recommended the City Commission review the sign code after the Downtown plan is complete. She recommended input from the beach Chamber of Commerce regarding signage issues. She did not foresee parking problems downtown related to additional seating allowed at cafés although the tourist district will be inconvenienced at times. Sidewalk cafés will have to manage around planters and other sidewalk furniture. Mr. Stone said some restaurants will be limited to two outdoor tables. Opposition was expressed to displaying banners and pennants at outdoor cafés. FN FINANCE Approve Resolution 03-12, which will amend Resolution 00-32 by increasing the amount of lease purchase debt to be incurred by $4,500,000 to a total of $19,500,000. Commission Work Session 2003-0317 03/17/03 4 The City utilizes lease purchasing to finance capital equipment such as vehicles, thereby spreading out payments over a three to five year term. Resolution 00-32 anticipated $5,000,000 per year in lease purchases for the three-year term of FY 2001 through FY 2003. This estimate was based on historical lease purchase activity. Lease purchase activity across City departments has increased significantly, partially due to low interest rates. The requested increase will provide sufficient lease purchase financing for all budgeted fiscal 2003 lease purchases. The current interest rate the City pays for items that are lease purchased is very reasonable. Current interest rates approximate 2.42% for three-year and 2.79% for five-year debt. Lease purchase also allows department to spread the cost of acquiring an asset over the useful life of the asset rather than having to fund the full cost up-front. Finance Director Margie Simmons said staff is not purchasing more items than budgeted but, due to low interest rates, is using the lease purchase method instead. PR PARKS AND RECREATION Approve co-sponsorship and waiver of requested City fees and services charges for FY 2003/04 special events including six annual City events; and fifteen City co-sponsored events; at an estimated gross cost of $452,894 ($134,500 representing cash contributions and $313,394 representing in-kind contributions) for the purposes of departmental budget submittals. According to the City Code of Ordinances on special events, there shall be an annual review of City sponsored/co-sponsored events during the budget process. An agenda item approving co-sponsorship and level of support for these events will be brought before the City Commission at the beginning of the budget process each fiscal year. In the event additional money is requested beyond what is included in the approved budget, City Commission approval will be needed before said additional funds are dispersed. Cash and in-kind contributions are requested to be included in FY 2003/04 budget for City sponsored and co-sponsored special events. The total cash contribution is $22,280, or 19.9% higher than was approved for FY 2002/03. This increase includes requests: 1) $15,000 - one-time seed money for Sunsets FantaSea of Lights, a new co-sponsored event; 2) additional $2,000 for North Greenwood Mayfest, total $4,500; 3) additional $5,000 for Clearwater Celebrates America fireworks, total $35,000; and 4) $280 increase for Fun-N’-Sun Festival of events. The total cash contribution also contains $5,000 of CRA (Community Redevelopment Agency) funding in direct support of the Downtown Farmers’ Market. “In-kind contributions” increased by 6.6%, or $19,587. “In-kind contributions” are included in operating budgets under various departments. The largest increase is to the Sunsets Beach Fest, which increased from $11,577 to $31,219; the addition of a new City sponsored Labor Day Concert series for $20,314; and the new co-sponsored event, Sunset’s FantaSea of Lights. The Special Events Committee recommends approval of all events with concerns or recommendations: 1) Concern re awarding $15,000 cash grant to Sunsets FantaSea of Lights; 2) concern re increase of in-kind service costs to Sunsets Beach Fest; 3) Did not grant request to guarantee City will not use Coachman Park during Sunsets Beach Fest; 4) Did not grant request to allow use of emergency bypass lane on Memorial Causeway for bus & trolley Commission Work Session 2003-0317 03/17/03 5 service to the beach for Sunsets Beach Fest; 5) Court Street banner location no longer available for any banner use, including Sunsets Beach Fest. Parks & Recreation Director Kevin Dunbar reviewed the process to determine the cost of providing City services. This proposal awards a one-time cash grant to the Sunsets FantaSea of Lights event, plus in-kind service costs. The organization will pay security costs. The City’s $26,000 total contribution covers approximately half the cost of the event. As it is planned for the slowest time of year, it was recommended the event proceed to attract people to the beach. It was recommended the event’s success be determined. Concern was expressed the event is planned for April, which is not summer. Mr. Dunbar said the event is coordinated with Fun N’ Sun, which staff is trying to reinvigorate. It was noted the YMCA had expressed interest in holding a run to celebrate the opening of the new Memorial Causeway Bridge before traffic is permitted. Mr. Dunbar said paperwork had not been submitted. In-kind services are not budgeted. ORLS OFFICIAL RECORDS/LEGISLATIVE SERVICES Appoint Commission member to serve on the Pension Advisory Committee for the term 4/5/03- 4/4/05. The Pension Plan calls for three City Commissioners to serve on the PAC (Pension Advisory Committee). Commissioners Hoyt Hamilton and Frank Hibbard were appointed to terms expiring April 4, 2004. Commissioner Whitney Gray’s term expires April 4, 2003. The Commission member appointed to fill this vacancy will serve a two-year term from April 5, 2003 to April 4, 2005. The PAC meets on the second Thursday of each month at 9:00 a.m. The next meeting is April 10, 2003. Consensus was to appoint Commissioner Gray for a two-year term. First Reading Ordinances Ord 7099-03 Public Hearing & First Reading - - Amend Section 3-1508 of the Community Development Code, regarding noise. Section 3-1508 A has been amended to clarify that an officer must hear noise at a distance of at least 100 feet from the source of the noise. The 100-foot limitation is consistent with that contained in Section 316.3045 Florida Statutes, which makes it unlawful to operate a motor vehicle radio so that the sound is plainly audible at a distance of 100 feet or more from the motor vehicle. Section 3-1508 C has been renumbered to Section 3-1508 B and has been amended to clarify that only “Loud and Raucous” noise is prohibited and to eliminate the wind requirement. When the noise ordinance was recodified, it was amended to impose a requirement that before the City could issue a citation to a person for operating an excessively loud radio, amplifier, phonograph, or sound truck, the wind conditions had to be less than 15 miles per hour. The wind requirement has proven to be unworkable, especially on Clearwater beach. Police officers have difficulty enforcing the noise ordinance because they do not carry wind-measuring devices and because wind gusts on Clearwater beach are frequent. Commission Work Session 2003-0317 03/17/03 6 Section 3-1508 D has been renumbered to Section 3-1508 C and has been amended to clarify the circumstances when a person becomes liable for ensuring that noise sources do not violate the Noise Ordinance. Section 3-1508 E has been renumbered to Section 3-1508 D and has been amended to limit the exception for religious worship activities to those activities occurring on or in religious facilities. Assistant City Attorney Rob Surette said the City can institute restrictions and opt out of the County noise ordinance if it wishes. The ordinance does not cover ice cream trucks. It was stated church carillons should be exempt. The City Attorney said prohibition of the use of pneumatic hammers and steam shovels on Sundays has been in place for at least 20 years. The change will allow the City to address noise issues at Shepard’s Beach Resort and limit the hours of outdoor concerts. Commission Discussion Items State Legislation to allow increased fines for speeding in residential neighborhoods Proposed legislation to encourage traffic calming was reviewed. The change would allow a county or municipality to adopt an ordinance to double the fine for exceeding the speed limit in posted residential neighborhoods. City Commission support was encourage so that Representative John Carassas sponsors legislation. The City Attorney said the City would have to post affected residential districts. It was suggested the City could designate neighborhoods where residents have voiced concern, with residents or a grant paying for signs. Consensus was to support the recommendation. BIG-C Resolution 2003-01 re protecting Beach Management Trust Fund Support was requested for the BIG-C (Barrier Island Governmental Council) resolution that urges the Florida legislature to save the $30-million annual beach management trust fund contribution and fully fund the FDEP (Florida Department of Environmental Protection) beach erosion control project priority list for FY 2003/004. Concern was expressed the Governor has proposed moving to the General Fund, dedicated revenue sources already committed to other projects. Consensus was to send a letter, signed by the Mayor, in support of the resolution, stating the trust fund should be protected. State Legislation re TDC membership In her March 17, 2003 memorandum regarding TDC (Tourist Development Council) Legislation, City Clerk Cyndie Goudeau requested Commission direction regarding how to address the concern that Clearwater, although the Pinellas County municipality in which the greatest amount of tourist tax is collected, is not guaranteed a seat on the TDC a/k/a Convention and Visitors Bureau. It needs to be recognized that a change in the legislation will impact any County with a TDC, not just Pinellas. Commission Work Session 2003-0317 03/17/03 7 Current State Statutes provides for nine TDC members: 1) One County Commissioner (Chair of the BCC unless BCC designates otherwise); 2) two elected municipal officials, one of which is to be from the most populous city; and 3) six involved in the tourist industry, with 3 to 4 to be owners of motel, hotel, etc). There are three options to address this concern: 1) Request the Statute be amended to change the “most populous municipality” to “municipality in which the greatest amount of tourist taxes are collected.” Under this option, Clearwater would be guaranteed a seat and the number of CVB members would not increase. However, this would no longer guarantee St. Petersburg, the most populous municipality, a seat; 2) Request an amendment that would have the two elected municipal officials be from the most populous and the one generating the largest amount of tourist tax dollars. Under this option both Clearwater and St. Petersburg would be guaranteed a seat but no other municipality in Pinellas would have representation. In some counties the two officials may come from the same municipality; or 3) Request the membership be increased, providing for three municipal officials; one from the most populous, one from the one that generates the largest amount of tourist tax revenue and one “at-large.” In order to maintain an odd number of members, the amendment could also include an additional industry representative. Under this option, Clearwater, St. Petersburg, and one other municipality would have representation. In some counties, an eleven-member board may be a bit unwieldy. Ms. Goudeau said the City should have a seat on the TDC board as it collects more taxes than St. Petersburg. It was stated Clearwater needs to be guaranteed a permanent seat on the board as the budget committee, for example, decides how tourism marketing funds are spent. Ms. Goudeau said staff will research State TDCs and try to present legislation on this issue next year. Other Commission Action Commissioner Hamilton recommended the City look at the narrow bridge on Old Coachman Road, now that the new stadium is being constructed nearby. Staff will report if the County has any plans for the bridge. Commissioner Jonson questioned if upgrades are planned for the Old Coachman/NE Coachman intersection. The City Manager said nothing is planned. Commissioner Jonson said the Council of Mayors is not meeting in March and cannot review the County’s proposed billboard agreement with Clear Channel. Consensus was to oppose the agreement and share information with individual cities regarding the agreement, without editorial comments. Adjourn The meeting adjourned at 11:21 a.m. Commission Work Session 2003-0317 03/17/03 8