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04/03/2008 CITY COUNCIL MEETING MINUTES CITY OF CLEARWATER April 3, 2008 Present: Frank Hibbard Mayor John Doran Vice-Mayor Carlen Petersen Councilmember George N. Cretekos Councilmember Paul Gibson Councilmember Also present: William B. Horne II City Manager Jill S. Silverboard Assistant City Manager Rod Irwin Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Brenda Moses Board Reporter The Mayor called the meeting to order at 6:00 p.m. at City Hall. The invocation was offered by Father James Rousakis from the Greek Orthodox Church of the Holy Trinity. The Mayor led the Pledge of Allegiance. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 4. Presentations 4.1 Under Armour Presentation - Ken Erickson, Head Softball Coach, USF Ken Erickson, Head Softball Coach, USF (University of South Florida), thanked the partners in the tournament and presented a poster to the Mayor. 4.2 Tampa Bay Estuary Program Presentation - Holly Greening, Executive Director Holly Greening, Executive Director of Tampa Bay Estuary Program provided a presentation on the program. The purpose of the program is to protect and restore Tampa Bay. She said habitat and water quality the bay is improving. 4.3 Proclamation: April is Fair Housing Month 4.4 Proclamation: April is Water Conservation Month 5. Approval of Minutes 5.1 Approve the minutes of the March 20, 2008 City Council Meeting as submitted in written summation by the City Clerk. Councilmember Cretekos requested sentence two of the second full paragraph on page five be amended to read: “The Mayor said he and the other Councilmembers had spoken in generalities to people regarding this item but they did not participate in any ex-parte conversations.” Council 2008-04-03 1 Councilmember Petersen moved to approve the minutes of the March 20, 2008, City Council Meeting as corrected. The motion was duly seconded and carried unanimously. 6. Citizens to be Heard re Items Not on the Agenda Nicholas Fritsch said a beach parking garage should not be built as there is no compelling reason for it at this time. John Wiser said the St. Pete Times does not cover events regarding Countryside area; complained regarding Internet problems at Countryside Library. Steve Osberg expressed concern regarding signage for small businesses. Mike Reardon said meetings are needed with Downtown and other businesses; City and businesses need to extend an olive branch to each other. Public Hearings - Not before 6:00 PM 7. Administrative Public Hearings 7.1 Continue the amendment to the Community Development Code to further the consistency between the Community Development Code and the Clearwater Comprehensive Plan, and to make other minor editorial changes. Councilmember Cretekos moved to continue Item 7.1 to April 17, 2008. The motion was duly seconded and carried unanimously. 8. Second Readings - Public Hearing 8.1 Adopt Ordinance 7915-08 on second reading, amending the operating budget for the Fiscal Year ending September 30, 2008 to reflect increases and decreases in revenues and expenditures for the General Fund, Special Development Fund, Special Program Fund, Stormwater Utility Fund, Recycling Fund, Gas Fund, Marine Fund, Airpark Fund, Parking Fund, and Central Insurance Fund. Ordinance 7915-08 was presented for second reading and read by title only. Councilmember Gibson moved to pass and adopt Ordinance 7915-08 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Doran, Petersen, Cretekos, Gibson, and Hibbard. "Nays": None. 8.2 Adopt Ordinance 7916-08 on second reading, amending the Capital Improvement Budget for the Fiscal Year ending September 30, 2008, to reflect a net increase of $9,438,088. Ordinance 7916-08 was presented for second reading and read by title only. Councilmember Petersen moved to pass and adopt Ordinance 7916-08 on second and final reading. The motion was duly seconded and upon roll call, the vote was: Council 2008-04-03 2 "Ayes": Doran, Petersen, Cretekos, Gibson, and Hibbard. "Nays": None. City Manager Reports 9. Consent Agenda – Approved as submitted. 9.1 Approve establishing a new Capital Improvement Project (315-93605) entitled Ross Norton Park Improvements for $200,000; and approve a Land and Water Conservation Fund Program (LWCF) project grant agreement for Lake Belleview Improvements, in the amount of $100,000, between the State of Florida Department of Environmental Protection and the City of Clearwater and authorize the appropriate officials to execute same; authorize the sale of General Fund property to the Stormwater Utility Fund in the amount of $300,000; and accept a donation of playground equipment and installation estimated at a value of $100,000 from Mr. Ian Hill of The Changing Point and Let Them Be Kids. (consent) 9.2 Approve increasing the Morningside Day Camp operational budget (010-01814) by $15,175; to cover the cost of 2 seasonal recreation leader positions (.42 FTE) and operational costs to be funded from day camp revenue. (consent) 9.3 Ratify and confirm Change Order 1 to David Nelson Construction Company, Inc. of Palm Harbor, Florida for the Beach Walk – Phases II, III and IV Improvements Project (03-0079-ED) increasing the contract amount by $301,785.33 for a new contract total of $16,620,911.08 and authorize the appropriate officials to execute same. (consent) 9.4 Accept a perpetual Drainage and Utility Easement over, across and under a portion of Lot 51, SUNSET HIGHLANDS UNIT 1, conveyed by Louis and Vera M. Biasi in consideration of receipt of $1.00 and the benefits to be derived therefrom. (consent) 9.5 Approve a temporary parking lease agreement between Salt Block 57, LLC and the City of Clearwater and authorize appropriate officials to execute same. (consent) 9.6 Appoint Councilmember Cretekos as Vice-Mayor. 9.7 Reappoint Mark Flickinger as the Pinellas Arts Council representative and appoint Sarah C. Butz as the artist representative to the Public Arts and Design Advisory Board with the terms expiring on March 31, 2012. (consent) 9.8 Request for authority to institute a civil action on behalf of the City and the Community Redevelopment Agency (“CRA”) against Bruce Balk, The Balk Company, Inc., and Mediterranean Village LLC, to enforce the contract between Mediterranean Village, LLC and the CRA. Councilmember Doran moved to approve the Consent Agenda as submitted and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. 10. Other items on City Manager Reports Council 2008-04-03 3 10.1 Approve Recreation Greenways Trails Program (RGTP) project grant agreement for Kapok Spur Trail Project, in the amount of $40,000, between the State of Florida Department of Environmental Protection and the City of Clearwater and authorize the appropriate officials to execute same. The City has been awarded a matching RGTP grant of $40,000 to assist in the construction of the Kapok Spur Trail. This trail begins at the western side of Kapok Park and travels west through Cliff Stephens Park and concludes at the parking lot for Cliff Stephens Park. This trail was to be part of the original Kapok Park project but funds were not available to complete it. The trail will be designed in a manner similar to the existing Kapok Trail with 10-foot wide asphalt with 6-inch header curbs and will be constructed in a manner to accommodate bicyclists, joggers, rollerbladers and walkers. Other elements of the project will include improved access, benches, water fountains and signage. The trail has been designed and will go out to bid once the grant is approved, with a projected award date of June, 2008. Funding for the entire project will come from this RGTP grant of $40,000 and $110,000 available in the Recreation Trails CIP 93272. No additional operating impacts are needed to support this project. Councilmember Gibson reported he had reviewed the five-year plan with staff and suggested the five-year plan be reviewed during the budget process. Councilmember Doran moved to approve Recreation Greenways Trails Program (RGTP) project grant agreement for Kapok Spur Trail Project, in the amount of $40,000, between the State of Florida Department of Environmental Protection and the City of Clearwater and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 10.2 Authorize the execution of a Joint Participation Agreement (JPA) between the City of Clearwater and the State of Florida Department of Transportation (FDOT) to construct a new multi plane hangar at the Clearwater Airpark and authorize an interfund loan from the Central Insurance Fund to the Airpark in the amount of $101,357 to be paid back over 5 years at the cash pool earnings rate and adopt Resolution 08-03. The FDOT has agreed to provide 80% reimbursable funding to construct a new 9,600 square-foot multi-plane hangar at the Clearwater Airpark. This will generate approximately $32,400 per year back to the city in rental revenue. This project is estimated to cost $506,788. The FDOT will reimburse the City $405,431. The Airpark Fund will borrow $101,357 from the Central Insurance Fund and will pay back the loan during FY08-FY12 (5 years) with the first partial year being interest only (until construction is complete and the project begins generating additional revenues). Interest will be at the cash pool rate (FY07 rate was approximately 5%). The maximum annual debt cost is expected to be $30,000. Councilmember Cretekos moved to authorize the execution of a Joint Participation Agreement (JPA) between the City of Clearwater and the State of Florida Department of Transportation (FDOT) to construct a new multi-plane hangar at the Clearwater Airpark and authorize an interfund loan from the Central Insurance Fund to the Airpark in the amount of Council 2008-04-03 4 $101,357 to be paid back over 5 years at the cash pool earnings rate. The motion was duly seconded and carried unanimously. Resolution 08-03 was presented and ready by title only. Councilmember Gibson moved to pass and adopt Resolution 08-03 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: “Ayes”: Doran, Petersen, Cretekos, Gibson, and Hibbard. “Nays”: None. 10.3 Approve amendment to Chapter 33, Section 33.059 (3) of the Code of Ordinances to define the length of stay for vessels at City owned public docks and pass on the first reading Ordinance 7927-08. On February 25, 2005, the City of Clearwater entered into a Public Dock Project Agreement with the owners of the Island Way Grill at 20 Island Way on Island Estates to build a floating dock system. The system consists of a main dock and five fingers providing nine boat slips, one of which is ADA compatible. Two ingress/egress methods are provided: a single ramp for non-ADA individuals and a two-ramp (double-back) for ADA individuals. Access to the mooring facility is via a concrete sidewalk that connects the mooring facility to the City sidewalk adjacent to the Island Way Grill restaurant. The owners of the Island Way Grill built the docks at their own expense and donated, via a Bill of Sale, to the City all ownership interest and rights to the docks. The docks are for public use only, on a first-come, first-served basis. The docks are to be used for non-commercial use and are not to be used for bait sale, vending, or overnight docking. Unfortunately, overnight docking has become a problem that needs further definition by code in order to be enforced. The new development agreement between the City and the Residences at Sandpearl Resort contains the necessary language defining the permitted usage period of the public boat slips. Boats are not permitted to occupy the City Slips during the period each night between 10:00 p.m. and 8:00 a.m., except in an emergency or as authorized by the City Harbor Master. We wish to add this time frame to the City Code of Ordinances in order to ensure boaters do not stay overnight at public dock facilities, unless authorized by the Harbor Master, who is also given the discretion to define an emergency or extenuating circumstance. Councilmember Petersen moved to approve the amendment to Chapter 33, Section 33.059 (3) of the Code of Ordinances to define the length of stay for vessels at City owned public docks. The motion was duly seconded and carried unanimously. Ordinance 7927-08 was presented for first reading and read by title only. Councilmember Doran moved to pass Ordinance 7927-08 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Doran, Petersen, Cretekos, Gibson, and Hibbard. "Nays": None. 10.4 Appoint one member to the Municipal Code Enforcement Board to fill the remainder of the term expiring on October 31, 2008. Council 2008-04-03 5 Councilmember Doran moved to appoint James Goins to the Municipal Code Enforcement Board to fill the remainder of the term expiring on October 31, 2008. The motion was duly seconded and carried unanimously. 10.5 Approve the Neighborhood Bill of Rights and adopt Resolution 08-04. During a Council Discussion Item on February 19, 2008, Vice-Mayor Doran proposed the City Council consider adopting a Neighborhood Bill of Rights to outline the expectations that Clearwater neighborhoods can have for participating in various City decision-making processes. Communities throughout Florida are adopting Neighborhood Bill of Rights to establish expectations for public participation in local government decision-making, particularly with respect to land use and planning matters. Having reviewed examples from St. John’s and Hillsborough Counties and the Cities of Jacksonville and St. Augustine, staff has drafted a Resolution for City Council’s consideration of a Neighborhood Bill of Rights. The Resolution establishing a Neighborhood Bill of Rights is intended to identify opportunities for advance notification and engagement in informed interaction with the City on issues that may most directly affect quality of life issues of the neighborhoods. While the Resolution is a formal statement of policy, the Neighborhood Bill of Rights, if approved, would be distributed to the community via MyClearwater.com and printed materials summarizing the expectations and opportunities for participation. City Council direction is requested as to moving forward with the Neighborhood Bill of Rights Resolution. Councilmember Cretekos moved to approve the Neighborhood Bill of Rights. The motion was duly seconded and carried unanimously. Resolution 08-04 was presented and ready by title only. Councilmember Gibson moved to pass and adopt Resolution 08-04 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: “Ayes”: Doran, Petersen, Cretekos, Gibson, and Hibbard. “Nays”: None. 10.6 Fund approximately 50% of the $7.5 million planned debt issuance for Beach Walk from General Fund Reserves. Part of the City’s budget strategy this year includes the possibility of funding a portion of Beach Walk that was originally planned to be funded with a 20-year bond issue with reserves from the General Fund. Funding a portion of this debt from reserves would eliminate part of the annual debt service payments from the General fund in the below approximate amounts: Funded from Reserves Debt Reduction 100% $630,000 75% $475,000 50% $315,000 25% $155,000 0% Council 2008-04-03 6 Funding approximately 50% of the debt from reserves instead of issuing bonds this would eliminate the $315,000 debt service payment each year from the General Fund. The debt payments were budgeted in FY08, therefore, the elimination of this debt payment would help with balancing the deficit that results from Amendment 1 and the overall downturn in the economy. The General Fund reserves, which at first quarter had approximately $25.3 million in total general fund reserves, or 20.5% of the current year's General Fund budget, has excess reserves of $14.8 million. The Central Insurance Fund has approximately $24 million in excess reserves. The municipal tax-exempt bond market is in a deep crisis, and insurance and surety costs are 3 times what they are normally. For a 20-year bond issue, the all-inclusive cost would be around 5.15%. This is about 1.00% higher than the rates were 4 months ago. Bank loans are much more cost-effective right now, with an all-inclusive cost of approximately 4.50% for a 20-year bank loan. The cuts by the Federal Reserve have not reduced municipal tax-exempt bond rates, as most people assume. The municipal tax-exempt market crisis is due to the bond insurer's insurance of pools of sub-prime mortgages, which have caused their downgrades and financial insolvency, and eroded the confidence of municipal tax-exempt investors. At the same time, the earning rate on our cash pool (the City’s investments) is at 4.5% and falling. Our overnight rate is from 2.25% to 3% and our most recent investment purchases are yielding from 2.44% to 5% depending on the issuer, call ability, and the maturity. These factors, particularly combined with the economic recession and Florida tax reform, highlight the need for conservative fiscal management more than ever. Originally, the City was going to fund Beach Walk and the Downtown Boat Slips in the same 20- year bond issue. Since we are now moving forward with plans to fund the Boat Slip project, staff needs to verify that the Council agrees with our proposed strategy for funding Beach Walk. If this strategy is accepted, a mid-year budget amendment will reflect the above proposal. Finance Director Margie Simmons said on another note, the State audit of the City’s sales tax was good news, as they determined no changes are needed and no additional taxes are due. She commended her staff for a job well done. Discussion ensued regarding how to fund the other 50% needed for Beach Walk. Ms. Simmons reported she is also working with financial advisors to determine the City’s funding options regarding how to pay for the downtown boat slips. Additional information will be th available at the April 14 Work Session. Councilmember Petersen moved to continue Item 10.6 to April 17, 2008. The motion was duly seconded and carried unanimously. Miscellaneous Reports and Items 11. City Attorney Reports 11.1 Pass Ordinance 7947-08 on first reading, amending Ordinance 7372-05, which vacated a portion of the easterly one half of the 70-foot right-of-way of Gulfview Boulevard (aka South Council 2008-04-03 7 Gulfview Boulevard per field), subject to special conditions, extending the required date for commencement of vertical construction. In Ordinance 7372-05, the City of Clearwater vacated the right-of-way depicted in Exhibit A and Exhibit B attached hereto, subject to certain conditions, which conditions have not been met. K and P Clearwater Estate, LLC, the “Developer,” is requesting that the Council amend the conditions of the vacation to extend the date by which the Developer is required to commence vertical construction from March 3, 2008 to March 3, 2010. City Attorney Pam Akin said based on Council discussion at the Work Session on Monday, regarding this item and Item 11.2, she added a provision that requires the developer to demolish the structures on the project site by October 31, 2008. Katie Cole, representative, introduced the development team. She said the developers have agreed to demolish the structures as requested by the City. She stated asbestos abatement also will be necessary on the site. Erick Fordin of The Related Group, stated he is excited to be in Clearwater. He gave a brief history of the company’s background and track record. He said the design team is world reknowned and his team continues to be successful in the current economy. He said he hopes to schedule time with Council to review the project’s development plans. Mr. Fordin was thanked for his willingness to quickly clear the property and work with the City. Assistant City Manager Rod Irwin said Mr. Fordin has expressed interest in becoming involved with the Harborview Center’s scoping process. Councilmember Doran moved to amend Ordinance 7372-05, which vacated a portion of the easterly one half of the 70-foot right-of-way of Gulfview Boulevard (aka South Gulfview Boulevard per field), subject to special conditions, extending the required date for commencement of vertical construction. The motion was duly seconded and carried unanimously. Ordinance 7927-08 was presented for first reading and read by title only. Councilmember Cretekos moved to pass Ordinance 7927-08 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Doran, Petersen, Cretekos, Gibson, and Hibbard. "Nays": None. 11.2 Pass Ordinance 7948-08 on first reading, amending Ordinance 7371-05 as amended by Ordinance 7598-06, which vacated a portion of the 60-foot right-of-way of First Avenue (aka First Street per field), subject to special conditions, to amend the special conditions by extending the required date for commencement of vertical construction. In Ordinance 7371-05, the City of Clearwater vacated the right-of-way depicted in Exhibit A attached hereto, subject to certain conditions. Ordinance 7371-05 was amended by Ordinance 7598-06 to extend the date for commencement of vertical construction to March 3, Council 2008-04-03 8 2008. K and P Clearwater Estate, LLC, the “Developer,” requests that the date to commence vertical construction be extended from March 3, 2008 to March 3, 2010. Councilmember Gibson moved to amend Ordinance 7371-05 as amended by Ordinance 7598-06, which vacated a portion of the 60-foot right-of-way of First Avenue (aka First Street per field), subject to special conditions, to amend the special conditions by extending the required date for commencement of vertical construction. The motion was duly seconded and carried unanimously. Ordinance 7948-08 was presented for first reading and read by title only. Councilmember Petersen moved to pass Ordinance 7948-08 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Doran, Petersen, Cretekos, Gibson, and Hibbard. "Nays": None. 12. City Manager Verbal Reports – None. 13. Other Council Action 13.1 Damage to Vehicles at City Hall - Councilmember Gibson Discussion ensued regarding damage to vehicles at City Hall due to the adjacent Opus construction project. Concern was expressed that Opus has not taken adequate precautions to prevent overspray to vehicles parked at City Hall, and that there is no City ordinance to address the issue. Staff reported that netting would be used to alleviate overspray problems. Consensus was to see if netting resolves overspray issues. 13.2 Redlight Cameras - Councilmember Gibson Discussion ensued regarding the cost of redlight cameras and whether or not the length of amber lights should be increased. Traffic Operations Manager Paul Bertels said an article regarding the city of Dallas was incorrect, as a private company pays for maintenance and installation of redlight cameras in that city. He said redlight camera shells can be left in place and the interior mechanisms moved to other locations. He said the FDOT (Florida Department of Transportation) has guidelines regarding suggested lengths of amber lights based on speed limits, approaches, and ITE calculations. He said every additional second added for an amber light detracts from the length of a green light. Consensus was to continue to watch state legislation regarding this issue. 13.3 Nehemiah Meeting - Mayor Hibbard The Mayor reported that the last FAST meeting focused on various topics from affordable housing to drugs and crime. He said that Nehemiah presented timelines regarding affordable housing that the City cannot meet. It was remarked that the group requested a “yes” Council 2008-04-03 9 Consensus was to continue to watch state legislation regarding this issue. 13.3 Nehemiah Meetina - Mayor Hibbard The Mayor reported that the last FAST meeting focused on various topics from affordable housing to drugs and crime. He said that Nehemiah presented timelines regarding affordable housing that the City cannot meet. It was remarked that the group requested a "yes" or "no" vote. The Mayor stated at their next meeting, he will vote no regarding their item on affordable housing and explain why. The City Manager reported that when Police Chief Sid Klein was asked to participate in the Nehemiah meeting, he offered to work with them on crime projects. However, when he declined to participate in meetings, the Nehemiah group walked out of the room. The Mayor briefed all on Legislative Action Day. Councilmembers reported on events in which they recently participated and reviewed upcoming eyents; thanked Advisory Board members for their volunteerism; recognized Joe Calio of Sand Key Civic Association for his years of efforts to make Clearwater a better place. Councilmember Cretekos thanked all for privilege of being Vice-Mayor. Vice-Mayor Doran said a donor re Carson Walk for Willa Carson will match dollar for dollar donations to Willa Carson Resource Center - they need donations. Councilmember Petersen congratulated Dev. & Neighborhood Services Dept. for receiving 2nd place CAN Award; Girls Softball Team has positive economic impact on City; City has phenomenal park system. Mayor Hibbard said please support our nonprofits - Rep. Ed Hooper trying to get Willa Carson Health Resource Center additional dollars; wished Sarah Johnson, J. B. Johnson's wife, Happy Birthday; met with Chamber, staff, and Navy League re getting Coast Guard designation. 14. Adjourn The meeting adjourned at 7:57 p.m. ~~ ~yor ' City of Clearwater Attest: Council 2008-04-03 10