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08/18/2008CITY COUNCIL WORKSESSION MINUTES CITY OF CLEARWATER August 18, 2008 Present: Frank Hibbard George N. Cretekos John Doran Paul Gibson Absent: Also present: Carlen Petersen William B. Horne II Jill S. Silverboard Rod Irwin Pamela K. Akin Cynthia E. Goudeau Patricia O. Sullivan Mayor Vice-Mayor Councilmember Councilmember Councilmember City Manager Assistant City Manager Assistant City Manager City Attorney City Clerk Board Reporter The Mayor called the meeting to order at 1:30 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Presentations Service Awards award. Three service awards were presented to City employees. Gary Costa, Fire Department, was presented the August 2008 Employee of the Month Certificates to be presented to the Leadership Development Training Program graduates. Certificates were presented to Karen Kunkel, Joyce Hunt, Matt McCombs, Bill Peterson, and Karen Vaughan. Leadership ICMA Performance - Rashad Young, City Manager, Dayton, Ohio and Shelli Siemer, Assistant City Manager, Allen, Texas Dayton Ohio City Manager Rashad Young and Allen Texas Assistant City Manager Shelli Siemer reviewed Leadership ICMA (International City/County Management Association) Performance recommendations for Clearwater. Mr. Young said a benchmarking consortium had calculated related values for comparison. The Council recessed from 2:00 to 2:47 p.m. to meet as the Community Redevelopment Agency and Pension Trustees. Council Work Session 2008-08-18 Financial Services Presentation and discussion on the Downtown Boat Slips Marketing and Boat Slip Lottery Process (WSO) The Downtown Boat Slips project was approved at referendum on March 13, 2007. Since that time, staff has been working diligently on the preliminary design, permitting and financing of the project. The Council awarded a Design Build Contract for the Downtown Boat Slips project to Misener Marine Construction, Inc. on April 17, 2008. At this time, it is estimated that the Boat Slips will be open for operation on July 1, 2009. This presentation outlines the City's plans for marketing and conducting the lottery for the Boat Slips. City staff will be involved in 3 events to market the Boat Slips: 1) August 9, 2008 - National Marina Day - Clearwater Beach Marina; 2) September 5 - 7, 2008 - Tampa Boat Show; and 3) December 4 - 7, 2008 - St. Petersburg Boat Show and Strictly Sail. There are currently more than 500 individuals on the interest list. Staff will be mailing applications to those on the list as well as any other interested party. Public Communications will be involved in advertising the recreational and overnight slips. The Marina has obtained a new website address (not yet operational): www.MyClearwaterMarina.com. Staff is currently working with the City's software vendor to permit on-line reservations. Current Timeline: 1) August - December 2008 - Events/Advertising/Application to "interest list"; 2) January 30, 2009 - Cutoff for lottery registration; 3) February 2009 - Staff complete verification of resident vs. non-resident; 4) March 14, 2009 - Lottery at Harborview Center; and 5) July 1, 2009 - Estimated opening of Boat Slips. The referendum for the boat slips required that residents of Clearwater be given first priority for the Boat Slips. An applicant will be considered a resident if they are domiciled within the Clearwater city limits and can provide evidence of this domicile. Evidence would include either his/her homestead exemption for property within the City limits, or if a tenant, a copy of his/her current lease agreement for property within the City limits. Two separate lists will be compiled from the applications received. One will be for those applicants who are domiciled within the Clearwater city limits (resident list) and one for those not domiciled within the Clearwater city limits (non-resident list). The resident list will get first priority for the slips. If there are still slips available after exhausting the resident lists, staff will then proceed to the non-resident list. Internal Audit will be involved in producing the random order priority for each list. An applicant or named representative must be present at the lottery to get a slip. A $500 deposit must accompany each application for a slip. Deposit will be forfeited if not present at the lottery or if an appropriate slip is declined. Deposit will be applied to the first and last months' rent, with the remaining balance due at the lottery. If applicant is not selected for a slip, applicant will have the option of a full refund of the $500 or a refund of $400 with the remaining $100 as a fee to stay on the waitlist (waitlist will be in the random generated order). Staff currently is working on procedures and the application form to use for the lottery. Finance Director Margie Simmons said deposits cannot be based on monthly rents, as those rates differ. Requiring attendance at the lottery allows selected applicants, or their Council Work Session 2008-08-18 2 representatives, to indicate which slip they prefer and sign a contract, saving significant staff time that otherwise would be spent tracking down lottery winners. Marine & Aviation Director Bill Morris reviewed staff marketing efforts. The website will provide a link to Cleveland Street restaurant and entertainment information. Construction should be nearly half completed by the time the lottery occurs. Gas System Declare as surplus Pasco County real property identified as Parcel 32-25-16-0040-00000-0040 and authorize advertising said property for bid pursuant to Invitation For Bid 34-08 in the minimum amount of $650,000 net, less costs of recording corrective instruments, if any, adopt Resolution 08-18 and authorize appropriate officials to execute same. The Clearwater Gas System (CGS) purchased the subject property at 7240 US Highway 19, New Port Richey, Florida on September 22, 1995, for $275,000 to establish a Service Center ("Center") in western Pasco County. CGS closed the Center on May 29, 2008, to reduce duplication of personnel and save approximately $208,000 in annual expenses, as the CGS service area has shifted easterly, with more of its growth occurring in the Land O' Lakes area of central Pasco. The Center was purchased with proceeds from sale of Gas System Revenue Bonds Series 1996A. The Bond Covenant requires the City obtain an opinion from a Consulting Engineer that disposal of certain CGS property is in the best interest of the CGS prior to declaring the property surplus and offering it for sale. In a Certificate dated July 16, 2008, Black & Veatch Corporation, the CGS Consulting Engineer, certified the disposal of the subject property is in the beneficial interest of CGS and within the terms of the Bond Covenant. The Bond Covenant further requires the City Manager or other duly authorized officer in charge make a written finding that such property comprising a part of the CGS is no longer necessary, useful, or profitable in the operation thereof. Chuck Warrington, Managing Director of CGS made such written determination on July 17, 2007, in form approved by the City Manager. In further compliance with Section 5.01(d)(5) of the City Charter, two current appraisals were obtained to value CGS's fee interest in the property. An appraisal performed by Colliers Arnold Valuation Services dated June 5, 2008, valued the property at $650,000. A second appraisal performed by James M. Millspaugh, MAI, on June 26, 2008, valued the property at $435,000. The Colliers Arnold appraisal is deemed to be more representative of the current market based on use of more current sales data. Invitation For Bid 34-08 has been prepared establishing the minimum bid amount of $650,000 net, less costs of recording corrective instruments, if any as determined above. Pending receipt of the most responsive bid complying with requirements of the declaration of surplus, and upon development and closing of a Sale and Purchase Agreement acceptable to Council, all sale proceeds of the subject CGS property will be deposited into a debt service account used only for the purpose of retiring the Series 1996A Bonds that funded the original purchase. CGS Managing Director Chuck Warrington said it was an opportune time to sell the property. Another office site will not be purchased at this time. Council Work Session 2008-08-18 3 Marine and Aviation Authorize Supplemental Agreement 3 to an existing JPA with the FDOT for modifications to the Fixed Base Operation (FBO) Building at Clearwater Airpark including renovation for the sewer system and groundwater cleanup, increasing funding by $175,000 ($99,598 from DOT and $75,402 from City), authorize the appropriate officials to execute same and adopt Resolution 08-20. FDOT (Florida Department of Transportation) has agreed to increase reimbursable funding for modifications to the Fixed-Base Operation Building at Clearwater Airpark, 1000 North Hercules Avenue, including renovating the sewer system and remediation of contaminated groundwater. FDOT will contribute $99,598 (approximately 57%) of the increase and the City will provide the remaining $75,402 (approximately 43%). This will supplement current funds in this grant to complete a ground water cleanup project at Clearwater Airpark. Mr. Morris said the FBO (Fixed Base Operator) was responsible for a gasoline spill and paid for its initial clean up. Chemicals in contaminated groundwater cannot be traced to the FBO. While the City looks to them for some financial support, the FBO claims that 40 years of airport operations are responsible for contamination. City Engineer Mike Quillen said staff will monitor the three-year clean up. Parks and Recreation Ratify and confirm staff submission of grant request to Florida Department of Elder Affairs 2008- 2009 Senior Center Fixed Capital Outlay Grant (SCO) for the Senior Center at the Long Center in the amount of $727,500. (consent) The State of Florida appropriated $10 million non-recurring tobacco funds for senior center fixed capital outlays in the 2008/09 appropriations, which are available through a grant opportunity. The Parks & Recreation Department is negotiating an amendment to the agreement with UPARC (Upper Pinellas Association for Retarded Citizens) to release 8,500 square-feet of space to the City at the Long Center to operate the City's first multi-purpose senior center. The City will renovate, equip and furnish this space through the SCO (Senior Center Fixed Capital Outlay) grant as a multi-service senior center. The senior center will expand programs and services for Clearwater's large and growing senior community. The Office on Aging will partner with organizations and businesses to provide these programs. The proposed project will cost $970,000 of which 75% or $727,500 will be provided by the grant and 25% or $242,500 as a match. Staff is proposing that the City's match come from CIP 315-94524, Long Center Major Infrastructure Improvements. There is a balance of funds in this code that can be allocated to this project, since the funds are designated for major building improvements to the Long Center facility. Total operating cost impact will be approximately $102,000 per year requiring an additional 1.5 FTEs. An endowment fund is being developed to address the senior center's operating costs. The environment to secure this endowment is favorable as staff is working with Senior Citizens Services, Inc. to secure an endowment. If the endowment is not fully realized prior to the completion of the senior center renovations, then the Parks & Recreation Council Work Session 2008-08-18 4 Department will reallocate personnel and resources from existing facilities, which may include the Office on Aging Manager assuming some operational responsibilities at the Center. The City Attorney opined that Councilmember Doran's membership on the Senior Services, Inc. board does not constitute a conflict of interest. A concern was expressed regarding additional FTEs that may be necessary. An opinion that it was worth finding the positions was also expressed. Police Approve renewing a contract with the Pinellas County Sheriff's Office, Largo, Florida, for latent fingerprint, crime scene processing, evidence and property storage and Pinellas Juvenile Assessment Center services, during the one year contract period commencing October 1, 2008 through September 30, 2009, at a cost of $647,362 and authorize the appropriate officials to execute same. (consent) The Pinellas County Sheriff's Office (PCSO) and the Clearwater Police Department (CPD) began annual contractual agreement for services in January 1994. The agreements covered latent fingerprint examination, property/evidence storage, and crime scene processing services. The total cost of the proposed FY (Fiscal Year) 2008/09 agreement is $647,362. The contractual price reflects an increase of approximately 14% for currently provided services and an additional $57,362 for PJAC (Pinellas Juvenile Assessment Center) security. CPD has never been charged for this service. The proposed contractual agreement reflects the following breakout of costs: 1) Fingerprint Services - $95,620; 2) Forensic Science Services (Crime Scene Processing) - $352,000 (2,200 calls @ $160 per call), requests for services in excess of 2,200 calls will be invoiced monthly at a rate of $160 per call. In addition, any funds from unused calls for service from FY 2008/09 shall be applied toward the following year's contractual agreement; 3) Evidence and Property Service and Storage - $142,380. This cost is inclusive of personnel and storage costs, and is an increase of $79,878 over FY 2007/08 charges for the same category. The Sheriff's previous charges have not covered his cost for providing these services. In order to bring the fees up to a level to cover his costs, the rates will be increased over the next two years. This year's increase represents the main reason for the 14% overall increase in the cost for this contract. Additionally, for the first time PCSO is charging all Pinellas County law enforcement agencies their respective share of the cost of providing security for the PJAC. Clearwater's share is $57,362 based on the number of juvenile bookings made by CPD into PJAC the previous year, totaling 667, reflecting a cost of $86 per booking. Billing for requests for service in excess of the 667 bookings during the term of this contract shall be invoiced at the rate of $86 per booking. Any excess funds from unused bookings will carry over to the following year. Police Chief Sid Klein said reconstituting City forensic efforts would cost approximately $2 million, plus the cost of a facility. Assistant City Attorney Rob Surette said when the County decided it would no longer fund a contract to operate PJAC, the cost per booking was calculated. Bookings are charged to the Police Department that transports the juvenile. Staff is working to rectify a disagreement regarding admission numbers. MSTU (Municipal Services Council Work Session 2008-08-18 5 Taxing Units) cover costs for bookings from unincorporated County. The City Attorney said concerns regarding the City's legal requirement to pay for PJAC services has given way to practicality. If PJAC is not funded, it will go away. The City Council recessed from 3:42 to 3:56 p.m. Engineering Award a contract for the Skycrest Neighborhood Traffic Calming project (03-0097-EN) to Semper Fi Services, LLC, of Palmetto, Florida, in the amount of $2,373,742.24, which is the lowest responsible bid received in accordance with plans and specifications, and authorize the appropriate officials to execute the same. (consent) This project involves construction of traffic calming features in the Skycrest community envisioned by community residents at the Skycrest Traffic Calming Charette and supported by a petition signed by owners of approximately 65% of the parcels in the project area. The engineering plans were reviewed for faithfulness to their charette vision by residents belonging to the Skycrest Traffic Calming Tech Team at the 30, 60, 90 and 100% milestones. The Skycrest Neighbors, Inc., organization has long strongly supported the project. The Tech Team and Skycrest Neighbors have kept the Skycrest community informed about the project through personal contact, community meetings, and the Skycrest Neighbors website. Traffic calming features include construction of a landscaped median on Cleveland St, numerous medians with tree wells and five mini-roundabouts, as well as four modern roundabouts at the intersections of Cleveland Street with Lake Drive, Saturn Avenue, Corona Avenue and Aurora Avenue. The Project also includes minor changes on S. Glenwood Avenue to reconfigure parking for the Crest Lake Dog Park. Work will commence upon award and execution of the contract and will be completed within 365 calendar days, sufficient time to allow for the work to not disrupt traffic flow at Skycrest Elementary School. Ongoing maintenance of the landscaping elements of the project will be provided by Parks & Recreation Department. The landscaping was designed, with Parks Department input, for low maintenance. Street signage and pavement markings will be maintained by Traffic Operations. A concern was expressed regarding the increased cost for maintaining the landscaping. It was stated that the community had worked on this project for many years and the landscaping has been scaled back from the original design. Opposition was expressed to eliminating project landscaping. Discussion ensued regarding tapping organizations to maintain landscaping and related City costs. It was felt the project will help bolster the East Gateway. Mr. Bertels said some planned landscaping is intended to calm traffic. Planning Approve amendment to the Community Development Code to permit sandwich board signs in certain areas, provide a fee for such signage, and to add a definition for traditional urban corridor, and Pass Ordinance 7997-08 on first reading. The Planning Department is recommending an amendment to the Community Development Code (CDC) to address code compliance issues with sandwich board signs in the Council Work Session 2008-08-18 6 Downtown (D) District. At the prior direction of City Council, staff has drafted this ordinance to allow sandwich board signs to be present on a temporary basis (not to exceed one year) in order to promote economic development in this developing area. The proposed amendment will establish sandwich board signs as a permitted sign requiring development review and put in place criteria, including requirements on the location and design of the signs. Among these criteria are the following: 1) Sandwich board signs may be displayed on the sidewalk only during hours of operation of the business and within the linear frontage of the specific business location being advertised. Under no circumstance shall the sandwich board sign be stored exterior to the business location; 2) The size of any sandwich board sign shall not exceed 42 inches in height, 20 inches in width; 3) No sandwich board sign shall be placed so as to block any public way, or within the visibility triangle of intersections or driveways. Placement may not reduce sidewalk width to less than four feet clear area. Placement may not impede ingress or egress from a business entrance nor block access or visibility of a fire hydrant; 4) The sandwich board sign shall be of a non-illuminated, freestanding, two-sided design comprised of metal, wood or synthetic materials such as chalkboard. The sign shall not be made from plastic or use plastic lettering, and shall not include a whiteboard; 5) The sandwich board sign shall be professionally designed and may use shapes and forms indicative of the type of business and the services being advertised; however such signs may not include sponsorships or advertisements for products; 6) Design must be reviewed and approved before placement. Placement prior to approval will not necessitate approval of the application as submitted; and 7) The sandwich board sign may not be attached to any structure or pole, and may not include any moving parts or attachments, including but not limited to: balloons, pennants and streamers. However, attachable items such as a removable chalkboard, that is intended to be an integral part of the sign and is not precluded by any other of these criteria, may be permitted. The ordinance also will add a definition for the term "traditional urban corridor," which is used in the sandwich board sign criteria, and establish a fee for the sandwich board sign permit. The Community Development Board (CDB) will review the proposed text amendment at its pubic hearing of August 19, 2008. The recommendation of the CDB as well as any comments of the Board will be presented to the Council at the meeting. Discussion ensued with a recommendation that sandwich boards not be allowed outside downtown. It was commented that the downtown consultant does not favor sandwich boards and the Council had made a commitment to downtown merchants to allow sandwich board signs for one year. Consensus was to continue this item to September 18, 2008, to allow Community Development Board input. City Manager Receive and consider report of Chase Realty, Inc., with Wm. Mark Searcy as Agent, of the results of the firm/agents efforts to identify and propose suitable parcels, including letters of intent to sell said suitable parcels, for City purchase and development of a 300 space parking garage on south Clearwater Beach. At its March 6, 2008, meeting Council directed the City Attorney to prepare a RFQ (Request for Qualifications) from licensed real estate brokerage firms and agents for the Council Work Session 2008-08-18 7 purpose of selecting a firm and agent to attempt to assemble land suitable for development of a 300 space public parking garage on South Clearwater Beach. RFP/RFQ 18-08 was issued on March 24, 2008 in response to that direction. Among other matters, the RFP/RFQ required that respondents consider and address the following tasks, provide their qualifications to undertake the requirements, and submit a time and fee proposal to accomplish same: a) Identify optimum locations and parcels required for the proposed project; b) Confirm ownership and title status of the various properties; c) Conduct discussions and negotiations with the respective owners; d) Secure Letters of Intent to Sell, including specific terms and conditions of sale; e) Deliver executed Purchase and Sale Contracts to the City for Council action; f) Assist City with all pre- closing requirements of each Contract; g) Oversee vacation of all properties prior to closing; and h) In the event the proposed assemblage is unsuccessful, prepare a market study detailing conditions contributing to the lack of success in assembling the lands. The RFQ/RFP generated eight responses by the April 23, 2008 deadline, one of which was not responsive to advertised requirements. The seven responsive proposals were received and reviewed by a 5-member Staff Evaluation Committee. Chase Real Estate, Inc., with Wm. Mark Searcy as Agent, was ranked highest by the Committee. The City Council, at its May 15, 2008 meeting, authorized staff to negotiate a contract with Chase Realty/Mark Searcy to complete the aforementioned engagement. The Agent was to complete work and report to the City Council at its June 19th meeting all proposed parcels, with contracts no later than July 1, 2008. At the June 19, 2008, Council meeting, at the recommendation of staff and with the concurrence of the Agent, the City Council extended the date for presentation of proposed parcels to its Work session on July 14, 2008 due to the need to conclude further negotiation on several potential parcels. The Agent has completed the work under the proposal phase of the contract and is prepared to report to City Council the results of his engagement. At the July 17, 2008 meeting, Council gave further direction to Mr. Searcy and extended his contract to August 21, 2008. Mr. Searcy recommended Coronado property between Third and Fifth streets: 1) 0.9- acre for $5 million and 2) 1.01-acre for $5.7 million. He said the Lucca site may not be available for up to two years. Mr. Quillen said garages on either of the two properties would have to be five floors. Parking Facilities Manager Tracey Bruch said construction costs for four and five floors are similar. Finance Director Margie Simmons said a positive cash flow would require a significant up-front cash contribution from the City. Construction costs are estimated at $6 million. Annual income is estimated at $3,500/space. Concern was expressed that City residents will finance construction of a parking garage they may never use. Mr. Irwin said lower per space costs at Tampa Airport were due to it being a much larger structure, airport ownership of the land and common elements built previously for another structure. Those costs also did not include design and other expenses. City Manager Verbal Reports Report on Stein Mart Meeting In his August 12, 2008, letter, Stein Mart Vice President of Real Estate Kirk Light said downtown redevelopment and the diversion of downtown traffic had a disastrous effect on store sales; it lost $77,000 last year and projects to lose $270,000 in 2008. He said Stein Mart would be willing to extend its lease in the Harborview Center for one year past its current expiration Council Work Session 2008-08-18 8 date of September 30 2009, if the City would completely abate its $150,000 rent for two years and contribute an additional $120,000 per year, or $10,000 per month through September 30, 2010 to cover company losses. He said this request would return the store to a cash neutral position. Should the City approve this proposal, Mr. Light requested that the arrangement become effective September 30, 2008. Consensus was that the City would not subsidize the business. It was recommended that staff work with Pickles Plus to terminate their contract. Consensus was for the Harborview Center to close after the January 2010 Florida Huddle. Fire Inspections Fire Chief Jamie Geer said the inspection of all buildings in the City will be completed within six months. He said he had inherited a situation that required a grid inspection sweep of the entire City. Priority was given to structures with high occupancy. All City residential high rises have been inspected. Re-inspections will be scheduled once the database is complete. Chief Geer said firefighters are required to make visits to businesses in their area to do preliminary planning. In response to a concern that Aerosonic Corp. had not been inspected since 1997, he said inspecting the facility would not have prevented the recent fire. Fire Marshal Steven Strong said Aerosonic previously had corrected shortcomings identified by the Fire Department following a previous alarm at the facility. Staff will provide reports on Aerosonic fire inspections. Concerns were expressed that firefighters were unaware of hazardous materials present at the fire and chemicals stored and used at City businesses pose firefighting hazards. It was thought that the backlog of inspections had been rectified. Chief Geer said there had been no breakdown in pursuing the completion of inspections. While transitioning from civilian staff to firefighters, the division had a 100% turnover. Fire Marshal Strong said the department had fixed its plan review efforts. Fees were increased for construction review, not fire inspections. He reviewed department efforts to resolve inspection problems. Tropical Storm Fay The City Manager reported Pinellas County had declared a State of Emergency and mandatory Level A evacuations tomorrow morning due to a tropical storm. City facilities will close tomorrow. Council Discussion Items County Inclusionary Zoning Ordinance In her August 14, 2008, memorandum, Economic Development and Housing Director Geri Campos Lopez indicated that the Pinellas County Board of County Commissioners had scheduled two public hearings on a proposed Countywide Inclusionary Housing Ordinance. After reviewing the revisions, staff summarized their concerns. The ordinance, under development for the past year, has been revised by the County through feedback from local Council Work Session 2008-08-18 9 governments and other interested parties. Recent revisions include: 1) Addition of option for local governments to retain in-lieu fees for affordable housing purposes. Contribution of in-lieu fees to the Countywide Housing Trust Fund would remain an option for jurisdictions that do not wish to administer new housing programs; 2) Addition of a third district to reduce the distance of off-site construction from the primary development; 3) Strengthened language to emphasize that local governments are responsible for reviewing and approving incentives; 4) Increased set- aside requirements from 15% to 20% for the highest income level options in response to concerns about income levels being too high and as a way to further incentivize developers to target lower income ranges; 5) A provision to restart the 20-year affordability period at resale to a new owner if sold during the affordability period; 6) Revised resale restrictions that limit the resale price increase of homeownership units to a maximum annual increase of 3%. The formula is intended to provide a fair return on a homebuyers' investment while keeping the resale price affordable to future buyers in the same income range; and 6) Removed recapture and equity sharing provisions since they would no longer be applicable if affordability is maintained by price limit resale restrictions. Staff understands the importance of and need for increased production of affordable housing in all parts of the City and County. However, staff is still concerned by the mandatory nature of the County's ordinance. Staff outlined their concerns in a March 31, 2008, memorandum. Revisions to the ordinance still do not address concerns: 1) Clearwater is a redevelopment community with few large parcels available for redevelopment. The nature of redevelopment (small lot sized) makes it difficult for developers to take advantage of the incentives provided in the ordinance and can therefore act as a disincentive to any development. In addition, current market conditions create a greater disincentive for any development to occur with a mandatory ordinance. Many of the key parcels have already been developed leaving few opportunities for projects in Clearwater; 2) A mandatory ordinance has the potential for costs to be passed on to the end user (either homebuyer or renter) causing an increase in the cost of new market-rate homes. This action drives up overall market prices as resellers take advantage of higher new home costs. It can also mean that the remainder of the market-rate buyers/renters in the development subsidizes the inclusive units thereby paying more for their housing; 3) A general sentiment is that this type of ordinance unfairly burdens the residential development community with ensuring affordable housing - it requires one group to pay for a problem that was created by the community at large over many years. Specifically, staff is concerned as to the impact to small developers; 4) Practical day-to-day management of this program is a concern; and 5) Affordable housing development is a complicated process that has a higher likelihood of success if undertaken by experienced developers with knowledge of available funding options, restrictions, and tools. As written, staff does not recommend participation in the Pinellas Inclusionary Housing Program. Below are specific concerns/questions, which staff will forward to the Community Development Department/County administrators for their feedback/clarification: 1) Clarification is needed on the roles and responsibilities associated with program action and implementation: a) Program Administrator - identification and responsibilities. (page 10); b) Monitoring Authority - City or County?; and c) Enforcing Authority - City or County?; 2) Affordable Housing Agreement - between developer and local jurisdiction required by ordinance. page 2, item (2). Concern surrounds upfront obligations required of City staff in order to comply (very labor intensive): a) Who creates the agreement?; b) Does County approve the document to be used?; and c) No mention of guidelines or parameters to establish agreement; 3) Affordable Housing Price - definition states qualification shall be based on "standard mortgage underwriting and lending Council Work Session 2008-08-18 10 guidelines". Section 5, item (2) on page 6-7 refers to resale requirements being designed to be compatible with conventional mortgage financing programs, including secondary market requirements. These statements conflict with each other. Additionally, staff is unsure if FHA and VA financing would not be allowed under the program; 4) Resale Price - Pages 6-7, Section 5, item (4)--Ordinance does not address deteriorating market conditions or if resale restrictions will remain in place in the event of foreclosure; and 5) Applicant Alternatives - Pages 8-9, Section 7, item (2) a-c: a) Off-site development of affordable housing units - Density bonus incentive is not allowed to be carried over to new site location and b) Fee in lieu - Analysis of legally justified linkage fees for residential developments should include fee schedule with study attached in order to determine payment fee. As staff understands the fee, the fee is not economically supportable towards smaller developers/builders. Density bonus does not apply to paying the fee in lieu. Staff has briefly discussed their concerns with the County, which is receptive to hearing specific City concerns and suggestions on the language. Staff is seeking direction from the Council to provide further feedback to the County. The City Manager said staff has reservations about the ordinance. Ms. Lopez reviewed areas of concern, including the mandatory nature of the ordinance. It was stated that the ordinance could have unintended consequences as it dictates the location of affordable housing in areas where it will not work. It was felt the City should opt out of the agreement until issues of concern are resolved. It was stated the City can develop an ordinance that will work for Clearwater. Ms. Lopez said the report on impediments to affordable housing in Clearwater will be presented to the City Council in December. Adjourn The Work Session adjourned at 5:51 p.m. Council Work Session 2008-08-18 11