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CITY COMMISSION MEETING
January 18, 1994
The City Commission of the City of Clearwater met in regular session at City Hall,
Tuesday, January 18, 1994 at 9:01 a.m., with the following members present:
Rita Garvey Mayor/Commissioner
Arthur X. Deegan, 11 Vice-MayorlCommissioner
Richard Fitzgerald Commissioner
Sue A. Berfield Commissioner.
Fred A. Thomas Commissioner
Also present:
Elizabeth M. Deptula Interim City Manager
Kathy ,S. Rice Deputy City Manager
William C. Baker Acting Assistant City Manager
M.A. Galbraith, Jr. City Attorney
Peter J. Yauch Acting Public Works Director
Cynthia E. Goudeau' City Clerk
The Mayor called the meeting to order. .
In order to provide continuity for research, the items will be listed in agenda order although
not necessarily discussed in that order.
ITEM #1 - Service Award
Six service awards were presented to City employees. The January 1994
Employee of the Month Award was presented to John Berrien of the Public Works
Department.
The meeting recessed from 9:11 to 9:26 a.m. to meet as the Community
Redevelopment Agency.
ITEM a2 Approval. of Minutes
Commissioner Deegan moved to approve the minutes of the regular meeting of
December 13, 1993, as recorded and submitted in written summation by the City Clerk to
each Commissioner. The motion was duly seconded and carried unanimously.
ITEM-#3 No Item
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ITEM #4 - Citizens to be heard rg items not gn thg A a None
CITY MANAGER REPORTS
CONSENT AGENDA (Items #5-17 - Approved as submitted less Items #7, 8, 9, 10, 11,
and 13
ITEM # - Joint Proigpt A r men wi h Pin llas CountY to install natural gas mains during
improvements to Tampa Road, at an,est. labor cost of $135,000 (GAS),
ITEM #- Purchase of n B-930 0- R h Terrain Fork Lif from Florida
Hydraulic Machinery, Inc., Tampa, FL, for $28,700, financing to be provided under city's
master lease-purchase agreement with Security Capital Corp. (GS)
ITEM #7 - See-Pogj
3
ITEM #8 - See Page 4 f
ITEM - See Pa 4
ITEM #10 - See Page 5
ITEM #11 - See Page 6
ITEM #12 - Agreements with The olden ou ar Band B s rs inc. The learwa r Hi
Sch I Bank Boosters, Inc. and The Clearwater Nei hborh od Housing rvi Inc. for
parking of automobiles at this year's spring training season of the Philadelphia Phillies (PR)
ITEM #13 - Spq Page 6
ITEM #14 - Right-of-way easement. oart,of Lot 10, Edenville Subdivision_ (Chapin) (CA)
ITEM #15 - Sanitary sg_wQr_lien agreement Lot B k L Carlton Terracp First Ad i ion
(2719 Morningside Drive - Hodges) (CA)
ITEM #16 - Ng Item
ITEM L#17 - No Item
Commissioner Thomas moved to approve the Consent Agenda as submitted less
Items 7, 8, 9, 10, 11, 13 and that the appropriate officials_ be authorized to execute same.
The motion was duly seconded and carried unanimously.
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LT_EM_k7_-_Purgba§e ;9v en 199-4-Ford Crown Vi ria 4-door sedans. with ?oilce_vaokvne
APIA from Carlisle Ford, St. Petersburg, FL, at a total of $96,523; financing to be provided
under city's master lease-purchase agreement with Security Capital Corp. (GS)
Bids were solicited and received for the purchase of 10 Police 4-door vehicles (7
pursuit and 3 sedans). Sixteen firms did not submit bids for the following reasons: 9 do
not offer the.product, 5 were unable to meet specifications, and 2 firms' schedule did not
permit them to bid at this time. Bid No. 33-94 will be split between two vendors: Carlisle
Ford, St. Petersburg, and Ferman Motor Car Company, Tampa.
This agenda item involves the purchase of seven 1994 Ford Crown Victoria 4-door
sedans with police package from Carlisle Ford. Six vehicles will replace 1989 Ford
vehicles.. The replacement vehicles were approved by the City Commission during its
1993194 budget hearing meetings and are listed on the approved vehicle replacement list
as published in the 1993194 budget. The seventh vehicle is an additional sedan to be paid
from the Public Housing Drug Elimination Grant which was approved by the City
Commission during its October 4, 1993 meeting.
Commissioner Thomas requested the status of the study about a "take home car"
program. Ms. Deptula, Interim City Manager, stated there are several policy issues that
need to be addressed before the plan can be finalized.
Commissioner Thomas questioned if making this purchase would impact the
Commission's opportunity to review the issue and Ms. Deptula said no. Commissioner
Thomas asked if these vehicles were going to be used under the dual driver program
where they would not be assigned to the general motor pool but instead to specific
officers that alternate the same vehicle.
The Interim City Manager stated this experiment is taking place in the West District
but she did not know if these specific cars were part of that program. Chief Klein stated
these were replacement cars for the general fleet to be disbursed throughout the City. He
said one of the options he will bring to the Commission is an alternative plan to expand the
"two officers per car" program.
Commissioner Thomas asked if all of the new cars could go into the dual driver
program which would prolong the cars' lives.
Mayor Garvey and Commissioner Fitzgerald felt the Chief should have the
prerogative to make decisions regarding the use of his equipment. Commissioner Berfield
asked Chief Klein if it would harm the Police Department' to move these new vehicles to
the West District. Chief Klein stated the Police Department was trying to extend the life of
all vehicles and expressed concern regarding all of the older cars going to other districts.
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Commissioner Thomas stated dual use vehicles last longer than vehicles in the
' general pool. He suggested the Commission establish a policy that new cars become part
of the "dual, use" program.
Mayor Garvey asked-for a recommendation from the Chief noting she lives in the
East District and didn't want only old cars serving there. Commissioner Deegan
questioned if the "dual use" program was only in effect for one year, how could it be
proven that these cars have a longer life because the life of an averaige car is longer than
one year. Chief Klein said the Department has seen some excellent results.
Commissioner Barfield moved to approve Item #7, the purchase of seven 1994 Ford
Crown Victoria 4-door sedans with police package from Carlisle Ford, St. Petersburg, FL.
The motion was duly seconded and carried unanimously.
ITEM #8 - Purchase three 1994 Chevrolet Corsica 4-door sedans from Ferman Motor Car
Co., Tampa, FL, at a total of $37,026; financing to be provided under city's master lease-
purchase agreement with Security Capital Corp. (GS)
Bids were solicited and received for the purchase of 10 Police 4-door vehicles (7 I
pursuit and 3 sedans). Sixteen firms did not submit bids for the following reasons: 9 do
not offer the product, 5 were unable to meet specifications, and 2 firms' schedule did not
permit them to bid at this time. Bid No. 33-94 will be split between two vendors: Carlisle
Ford, St. Petersburg, and Ferman Motor Car Company, Tampa.
This agenda item involves the purchase of three Chevrolet Corsica 4-door sedans
' from Ferman'Motor Car Company. The purchase replaces 1985 Dodge vehicles. One
vehicle is used by Public Works/Transportation to investigate citizen complaints concerning
traffic and parking. The other two'are used by Central Permitting in.their building
inspection activities.
The replacement purchase was approved by the City Commission during its I
1993/1994 budget hearing meetings and is listed on the approved vehicle replacement list
as published in the 1993/94 budget.
Commissioner Deegan questioned why the state contract was not being used for
this purchase. Ms Deptula indicated the State contract was not available for these
vehicles. She said she would confirm this.
Commissioner Thomas stated City reports noted Chevrolets were not performing as
well as Fords and 'questioned why the City was purchasing Chevrolets. Mr. Baird
explained these were not Police Department vehicles. Commissioner Thomas asked if the
theory that Fords performed better than Chevrolets wouldn't translate to other
departments. He also felt standardization would improve operations. The Interim City.
Manager said she would pull this item and get answers to these questions.
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Commissioner Barfield moved to continue Item #8 to the regular meeting of
Ilk 04% January 31, 1994. The motion was duly seconded. Upon the vote being taken,
Commissioners Fitzgerald, Berfield, Deegan and Thomas voted "Aye." Mayor Garvey
voted "Nay." Motion carried.
P_ v olice ck e
ITEM # - Purchasp of one 1994 Ford Crown Victoria 4-door sedan with
from Carlisle Ford, St. Petersburg, FL, for $13,789 (GS)
A 1989 Ford Crown Victoria 4-door Police cruiser, was involved in an accident on
May 19, 1992. On December 14, 1993, Risk Management authorized an $8,925
expenditure from the Central Insurance Fund for the vehicle's replacement. This agenda
item proposed the purchase of a replacement vehicle under Bid No. 33-94 (see Item #7).
Commissioner Fitzgerald asked if this bid was separate from Item #7 because the
money came from different sources. He noted this bid was for the replacement of a car
that was damaged and had insurance coverage. The Interim City Manager agreed and said
Item #9 was to replace a vehicle damaged after Items #7 and #8 were already bid.
Commissioner Berfield moved to approve Item #9, the purchase of one 1994 Ford
Crown Victoria 4-door sedan with police package from Carlisle Ford, St. Petersburg. The
motion was duly seconded and carried unanimously.
ITEM #10 - Fifth Amendment Paragragh 5_6 n 25(f) o h I rwa r F rr Servicg.
Inc. license and agreement (MR)
' On August 2, 1989, the City entered into a License and Agreement with Clearwater
Ferry Service, inc. to operate a commercial ferry service in Clearwater Harbor from the
Drew Street Dock. Mr. Phil Henderson, President of the Clearwater Ferry Service,
submitted the Ferry Service Annual Review and has asked for several minor changes to the
License and Agreement.
In paragraph S of the second sentence "bridges" is deleted and "drawbridge" is
added. This change is made because the ferry service does not conduct pick-ups at the
Clearwater Beach Recreation Center, except with advance call.. The ferry service will
operate between the Drew Street Dock, Sea Stone Dock and Clearwater Marina. With this
schedule, they will be passing under the Memorial Causeway Drawbridge and not the fixed
bridge on the west end of Memorial Causeway.
In paragraph 6 of the first sentence "(advance call only), Clearwater Marina as
outlined in the Fourth Amendment to the License and Agreement" is added. This change
is made because the Recreation Center pick up is advance call only and the Fourth
Amendment to the License Agreement allows the ferry service to transport passengers to
and from the City Marina.
In paragraph
Amendment to the
service at the City
Agreement.
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28(f) of the first sentence "except as outlined in the Fourth
License and Agreement" is added. Beginning or terminating the ferry
Marina is outlined in the Fourth Amendment to the License and
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Commissioner Thomas questioned if any further work had been Bono regarding the
possibility of providing ferry service across Clearwater Pass when that bridge is closed for
construction. It was indicated staff was aware of this potential and would be investigating
it.
Commissioner Thomas moved to approve Item #10, the Fifth Amendment to
Paragraph 5, 6 and 28(f) to the Clearwater Ferry Service, Inc.'. The motion was duly
seconded and carried unanimously.
TE #1 - Purchase of 1992 or newer undercover vehicle fr m to al dealership, not
to exceed $15,425 (PD) .
An undercover narcotics vehicle, was totaled as a result of the March 13, 1993,
storm that struck the Tampa Bay area. This vehicle was submerged in water as a result of
rain and high tide associate with the March storm. As a result, Risk Management
authorized $10,425 for the replacement of this vehicle from the Central Insurance Fund.
The vehicle was sold at auction for salvage purposes in July 1993 through Tampa
Machinery Auction. Proceeds from that sale ($2,000) were deposited into the Special Law
Enforcement Trust Fund which originally funded the purchase of the vehicle.
An additional $5,000 has been authorized from the Special Law Enforcement Trust
Fund to be added to the monies received from the Central Insurance Fund to purchase an
upgraded replacement vehicle. Total expenditure is not to exceed $15,425.
Because this vehicle will be part of the undercover fleet and will be participating in
;." sensitive operations it is recommended that it be purchased in accordance with Section
2.564 (e) Impractical to Bid.
The Interim City Manager stated miscommunication among City staff resulted in the
belief this item was approved. Purchasing already bought the vehicle and it is already in
service. Ms. Deptula asked the Commission to ratify and confirm the purchase of this
vehicle.
Commissioner Deegan moved to ratify and confirm the purchase of the 1992 or
newer undercover vehicle from a local dealership for a cost not to exceed $15,425. The
motion was duly seconded and carried unanimously.
ITEM #13 - Approval for "Welcome Back" activities for the Phillies: a "Community
Celebration" to be held at Station Square Park on 311194, at an estimated cost of $3,400;
a "Fan Card Section" for 314194 at Jack Russell Stadium, at an estimated cost of $250;
and purchase of "Street Banners" to be placed on light poles along Cleveland Street, at an
estimated cost of $2,850, for a total estimated cost of $6,500 (PR)
On December 2, 1993, the City Commission hoard a presentation by Mr. Terry
Schmidt, Chairman of Clearwater Festivals, regarding events that might be conducted in
welcoming the Philadelphia Phillies back to Clearwater. The three primary events included
a "Community Celebration" to be held at Station Square Park, a "Far( Card Section" to be
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scheduled for opening day at Jack Russell Stadium, and the purchase of "Street Banners"
to be placed on light poles along Cleveland Street.
The Commission asked Mr. Schmidt to meet with Chamber of Commerce officials
to determine how the business community could become involved. The Commission also
directed staff to finalize plans and costs for the events.
In response, a schedule of events has been prepared describing each of the three
activities. The total cost of all three events is estimated at $6,500.
Commissioner Thomas indicated he had requested this be a total package involving
the entire community when this item was originally brought up.
Mayor Garvey indicated this item only addressed City expenditures and was not
suppose to be the total package. Commissioner Thomas felt the City had to create the
environment for businesses to participate in this grand celebration.
Mr. Schmidt said he took the Commission's recommendations to the Chamber's
sports' committee which is helping to coordinate this event. He said the Chamber took on
the challenge of a merchant campaign and was sending letters to merchants and soliciting
all local businesses with marquees to proclaim a welcome to the Phillies. He said the
Downtown Clearwater Association was encouraging downtown businesses to put displays
in their windows and was planning for downtown events during the -week of the event.
Mayor Garvey asked Mr. Schmidt if there was anything the City could do to
.. facilitate the plans. Mr. Schmidt stated, as this would be a "Special Event," balloons and
signage would be permitted. He said the Chamber didn't expect 100% participation from
City businesses, but felt the smaller merchants were more likely to participate.
Commissioner Thomas asked if the Commission had to declare it a "Special Event." Mr.
Schmidt said upon approval of this item, he would submit an application to the Special
Events Committee.
Mr. Schmidt said the City tightened up costs originally estimated at $7,400. He
said they need 30 banners which would be permanent and could be used throughout the
years to lower costs. He said he was working with the community and many businesses
are now interested in participating and may help reduce City costs.
Commissioner Thomas moved to approve Item #13 for Welcome Back activities for
the Phillies and a Celebration to be held at Station Square Park for a total estimated cost of
$6,500. The motion was duly seconded and was carried unanimously.
Mr. Schmidt said he has received information that Bill Giles, Phillies owner, may
have to attend an owner's meeting on March 1, 1994, so the date of the event may have
to be changed. He will keep the Commission informed. He asked the Commission to think
about what they plan to do during their segment of the ceremony at Station Square Park
and what kind of award they want to present to the Phillies.
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OTHER ITEMS ON CITY MANAGER REPORT
ITEM #18 No-Item
ITEM #19 - Rescind Res. #80-8 2: Res. #94-12 - E ablis in a new li n roc d r
for naming of new city, parks (PR)
Subsequent to the controversy regarding the renaming of "Plaza Park," staff was
directed to review and revise the current Resolution regarding the manner in which City
parks are named.
The Clearwater Parks and Recreation Board has been directly involved in the naming
of parks in past years and was instrumental in recommending changes which are
incorporated in the proposed Resolution. The board recommended that names only be
considered for "new" parks because the names of "existing" parks were selected for good
reasons and a change could become an emotional and/or controversial issue. Board
members did not feel recreation facilities located within parks should be individually
named. Although they were aware of the compromise at Plaza Park, they felt it might
become too common for people to request individual names for basketball courts,
ballfields, tennis courts, etc.. The proposed Resolution allows the board to conduct a
survey of residents who live around parks to secure opinions about proposed names, and it
requires that a "Public Hearing" be held before the board for any name recommendation.
Based on criteria contained in the Resolution, the board will formulate
recommendations regarding names proposed for parks and will provide its
y recommendations to the City Commission for final decision. In the event a request is
,received to rename an "existing park" or and individual' "recreation facility," the board will
recommend denial. However, if desired by the proposer, the request will still go forward
to the City Commission for final consideration and decision.
A request to "rename" Wood Valley Park has been received and will be considered
based on the criteria approved in the new Resolution. Said request will be brought to the
City Commission following the adoption of a new Resolution. ;
The staff recommends rescinding Resolution No. 80-82 and adopting Resolution No.
94-12 which establishes a new policy and procedure to be used in the naming of new city
parks.
Commissioner Deegan questioned why the board would never consider changing a
park's name or naming a park after someone from outside the local area. Commissioner
Fitzgerald asked, if this is approved as written, if the Wood Valley request would
automatically be denied.
Ream Wilson, Director of Parks & Recreation, indicated the Board would not
consider the request but it would still be brought to the Commission for action. He said
board members felt strongly that existing names stay the same.
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Mr. Wilson said this Resolution would allow the Board, if they desired, to survey
residents around a park about name preferences. He said the Board would hold a Public
Hearing every time they considered a name for a park. Information gathered at these
meetings would be the basis for a recommendation.
Mr. Wilson said if this Resolution passed, as it was, the people requesting a change
to the name Wood Valley would be notified their request is not in accord with the current
resolution and the Parks & Recreation Board would not consider the request but would
forward it to the City Commission for final consideration.
Commissioner Deegan asked if it was a national tradition to name parks after
geographic locations as opposed to individuals. Mr. Wilson said the City contacted other
governmental agencies but no other agency had anything as detailed as Clearwater. Mr.
Wilson noted the advantage of naming parks after geography, was the ability of citizens to
automatically know where a park is located.
Mayor Garvey stated there were instances elsewhere where a facility had been
named after an individual and that individual later went to jail.
Commissioner Thomas agreed that naming parks after geographic locations was
logical because using the names of individuals could prove to be confusing. He
commended the Board for their long hours and hard work in completing a very difficult
task. Mayor Garvey concurred.
Commissioner Berfield moved to approve Item #19 establishing a new policy and
procedure for naming parks. The motion was duly seconded and carried unanimously.
The City Attorney presented Resolution #94-12 and read it by title only.
Commissioner Thomas moved to pass and adopt Resolution #94-12 and authorize the
appropriate officials to execute same. The motion was duly seconded and upon roll call,
the vote was:
"Ayes": Fitzgerald, Berfield, Deegan, Thomas and Garvey.
"Nays": None.
ITEM #20 - Declare sur lus for subordination to Florid Da artmen of Tran or ation
1=DOT the-City's easement rights and interests in a--parcel of land Parcel 170.05 lying
within proposed northerly r-o-w line of Curlew Road (SR 586) within the city limits of
Oldsmar; Res. #94-9 - authorizing City Manager to execute subordination of utility
interests document with FDOT (PW)
The FDOT is proposing to make improvements to State Road (SR) 584, from four
hundred feet east of Gim Gong Road to its intersection with SR 586.
The City of Clearwater has a six foot gas utility easement serving the Pizza Hut
Restaurant at 3400 SR 586 (Curlew Road). A 2,638 square foot portion of the easement
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lies within the proposed right-of-way of SR 586 and contains approximately 15 feet of two
`. inch polyethylene service line. In order to facilitate improvements to SR 584, the FOOT is
requesting the City subordinate its easement rights and interests in this parcel for the
planned roadway improvements.
The subordination agreement contains provisions for FOOT to pay to have the
City's facilities relocated, if necessary, to prevent construction conflicts.
Commissioner Fitzgerald moved to approve Item #20 to declare surplus for
subordination to FOOT the city's easement rights and interests Parcel 170.05. The motion
was duly seconded and carried unanimously.
The City Attorney presented Resolution #94-09 and read it by title only.
Commissioner Fitzgerald moved to pass and adopt Resolution #94-09 and authorize the
appropriate officials to execute same. The motion was duly seconded and upon roll call,,
the vote was:
"Ayes": Fitzgerald, Barfield, Deegan, Thomas and Garvey.
"Nays": None.
ITEM #21 - Other Pending Matters
a) Demolition contract for 630 Drew Street Old lee H.9uset (Unt'd froRn 01 /03/94)
The structure known as the "Old Ice House" located at 630 Drew Street was
declared an unsafe structure by Clearwater's Building Official on July 18, 1993, in
accordance with Subpt. C, Article VII, Section 47.161, Clearwater Code of Ordinances.
The owner was given until August 21, 1993 to comply with the Notice of Unsafe Building.
The owner did not appeal the Building Official's Notice of Unsafe Building nor
comply with the order. The case went to the Municipal Code E=nforcement Board on
September 9, 1993. The Board ordered that corrective action take place within fifteen
(15) days or a $100 per day fine be placed on the owner.
The owner filed for permit with a timetable to complete work, but no action was
taken. Therefore, on October 12, 1993, another Notice of Unsafe Building was issued.
The Notice gave the owner until November 12, 1993 to complete repairs, or the City
would take action to cause demolition of the unsafe building.
On November 15, 1993, a title search was ordered, as well as a request for bids
for an asbestos survey. The asbestos survey found some asbestos, requiring what is
known as a "wet demolition" where the structure must be kept wet during demolition and
the asbestos materials must be disposed of in an approved site. The title search revealed
the owners are Robert Schoeller and Cynthia Daniel with Republic Bank as the mortgage
holder. Information has been supplied to them since the beginning of the project,
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The Purchasing, Division advertised the project for bids, and opened the bids on
December 23, 1993. The contract was awarded to the lowest responsible bidder meeting
all of the bid specifications, Phoenix Wrecking. The bid was awarded prior to City
Commission approval because of the emergency nature of the project.
Ms. Deptula stated the Commission, at their last meeting, had given the owners of
the Ice House until Wednesday, January 12, 1994, to sign an agreement for the
redevelopment of the property. She said the agreement was not completed and Vic
Chodora, Building Official, advised her required work on the building was not completed.
She said staff recommended demolishing the building. Mayor Garvey asked Mr. Chodora if
anything had been done to the building and he said, "no."
Timothy Johnson, Jr., attorney representing the owners, Robert Schoeller and
Cynthia Daniel, disagreed with Mr. Chodora's statement. Mr. Johnson said the
Commission had established harsh terms for an agreement and gave Mr. Schoeller until
Wednesday, January. 12, 1994 to negotiate the finer points of that agreement. Mr.
Johnson agreed with Ms. Deptula this had not occurred. He felt the Commission gave
those directions to staff because the Commission believed Mr. Schoeller is a scofflaw and
also believed the City had an airtight legal case to proceed with demolition.
Mr. Johnson said he wanted,to review the background and start his review in the
middle of 1993 because Mr. Schoeller had completed the first round of actions required by
the City.
Mr. Johnson said a letter dated July 8, 1993 was sent to Mr. Schoeller stating
there were deficiencies in the building; specifically in the southern portion. The letter gave
Mr. Schoeller until July 21, 1993, to commence work and until August 21, 1993, to
complete the repairs. Mr. Schoeller did not complete the work within the time frames, but
plans submitted on August 30, 1993 were approved by the City on September 2, 1993.
Work commenced to address the items contained in the July 8, 1993, letter on
September 3, 1993, the Friday before the Labor Day Weekend, and continued through the
long weekend.
On September 3, 1993, Mr. Schoeller was served with a notice of a
September 8, 1993 hearing before the Municipal Code Enforcement Board (MCEB). The
Board continued that hearing until September 22, 1993, because of lack of adequate
notice. Mr. Johnson said the principal complaint of the July 8 letter was the need to shore
up the south wall. At the September 22 hearing, it was reported by Mr. Schoeller's
representative and confirmed by the City the shoring had been completed and most of the
problems cited in the July 8 letter had been addressed.
Mr. Johnson said Construction Inspector Supervisor Tom Chaplinsky stated at the
MCEB meeting of September 22, he was planning on sending a new letter outlining
additional violations. Mr. Johnson said the Board made it clear they weren't considering
new violations. The Board found there was a violation of the code but didn't specify
which code. The Board ordered, if Mr. Schoeller didn't comply with the code by
October 7, 1993, fifteen days later, he might be fined. Mr. Johnson emphasized that
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during the meeting, including after making the motion, the board said if Mr. Schooller was
' not finished within the fifteen days but was pursuing the correction of violations in good
faith, then the Board would not file an Affidavit of Noncompliance. Mr. Johnson said Mr.
Wyatt, Chairman of the Board, said the fifteen days was for the violator to work with the
City and at the end of that 15 days the inspector would determine whether or not he
would allow the violator to continue or request a notice of non-compliance be filed. Mr.
Johnson said Mr. Chaplinsky indicated it was the City's policy, that if work was being
actively pursued, the City would not file for non-compliance.
Mr. Johnson said there was clear indication in the record that if Mr. Schoeller was
working in good faith, the City wouldn't find him in non-compliance. Mr. Schoeller hired a
structural engineer to make recommendations on what needed to be done to make the
building safe. Mr. Johnson said that on October 6, the engineer's report listing six items
needing repair, was furnished to the City. Mr. Schoeller advised the* City he would obtain.
bids from contractors to complete that work and set about to accomplish that.
Mr. Johnson said the City confused matters by issuing a new letter on
October. 12, 1993 stating the building was unsafe and citing, as unsafe conditions, the
matters contained in the engineer's report. Mr. Johnson said the new letter stated that
Mr. Schoeller must submit plans by October 22 to repair the listed items and complete the
work by November 12. Mr. Schoeller now thought he had new deadlines. Mr. Johnson
said there was nothing in the letter referencing non-compliance with the October 7
deadline and the imminent filing for'non-compliance. By October 22, plans were submitted
and a permit obtained to complete the work described in the letter. Mr. Chaplinsky then
filed the affidavit of non-compliance with the Board without notice to Mr. Schoeller. Mr.
t' Johnson said he doesn't think Mr. Chaplinsky inspected the premises prior to filing this
affidavit.
At the October 27 meeting of the MCEB, the Board issued an order fining Mr.
Schoeller for not being in compliance. Mr. Johnson claimed this order was flawed because
the order concluded that Robert Schoeller and Cynthia Daniel did not comply with the
order of the Board of October 27, 1993. Mr. Johnson said this order is wrong and should
have instead referenced the September 22, 1993, meeting.
Mr. Johnson said that on October 12, the due date given in Tom Chaplinsky's
letter, five of the six conditions cited by the independent engineer were corrected. On
October 19, the sixth item was met and three days later the engineer certified the work
had been completed.
Mr. Johnson claimed this review of Mr. Schoeller's actions did not paint a picture of
a man unwilling to comply with City requirements. He said Mr. Schoeller spent about
$100,000 thus far on the Ice House by making improvements and complying with City
requests.
Mr. Johnson stated the work required,at the last meeting had been accomplished.
He said every opening on the front of the building was sealed and the fence, running
between the Ice House Building and the air conditioning building, was strengthened and
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made impassible. Mr. Johnson said he had a letter from the engineer, dated
January 12, 1994, stating the City's suggestion to board the windows on the east side of
the building would have made the walls more susceptible to wind damage.
Mr. Johnson, said Mr. Schoeller has demonstrated a willingness to work with the
City and complied with the City's requests. Mr.'Johnson said the City's case for
demolition of the building is not airtight. He said the independent engineer certified the
building as safe.
Mr. Schoeller, an artist and painter, apologized to the Commission for past
misunderstandings.3 He purchased the building because of its charm and its architecture,
reminiscent of the last century. He said he wanted to incorporate all of the building's
charms in his plans. '
Mr. Schoeller presented a photograph of the property with a drawing below
showing how he wanted to rehabilitate the building with glass and other materials. He
said the Ice House hadn't just been sitting there, as the building had been filled with
machinery and steel constructions which took a crew of two to four men eight months to
remove. .
Mayor Garvey stated the problem was the time it was taking to address the
problems. Mr. Schoeller said he worked on it for two years and the only delay was during
his purchase of the air conditioning building located next door.
Mr. Johnson submitted a latter from Michael Sanders, vice president of the
` Clearwater Historical Society, which gave the historical background of the ice House and
requested the Commission give Mr. Schoeller an opportunity to complete his plans for this
building. Mr. Johnson said the Commission already had a letter from Mr. Bornstein, a
neighbor, with the same request.
Mr. Johnson reviewed the terms of the agreement suggested during the
January 3, 1994 City Commission meeting. He said the request to include the air
conditioning building with plans to refurbish the Ice House was inappropriate because the
air conditioning building was never found to be in violation and this would impose a
financial commitment for Mr. Schoeller that he was riot prepared to make. Mr. Johnson
said the requested escrow of $100,000 to be held for fines was not warranted as Mr.
Schoeller has been trying to comply.
. He proposed an agreement similar to the last proposal he presented to the
Commission with time tables for filing the plans, commencing construction, and a deadline
for completion. He requested that all the dates from the proposal be extended by two
weeks. Mr. Johnson also said Mr. Schoeller would waive any defense he had for
demolition of the building in the event he missed the deadline to file plans or commence
construction.
The City Attorney asked Mr. Johnson what the time table called for and Mr.
Johnson said the original time table for the Ice House only, called for construction plans to
min0001 c.94 1118194
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be filed by March 31, construction to commence by May 16, and construction to be
completed by December 31, 1994. He said these time tables were developed at a meeting
with Mr. Bornstein. Mr. Chodora said the time table for commencing construction seemed
tong. Mr. Johnson said the work Mr. Schoeller wanted to do is highly customized.
Mayor Garvey asked if the conditions to make the building safe were met. Mr.
Chodora said they met the conditions of the first order but the second order, addressing
the roof and a permanent solution to securing walls was not met. Mr. Johnson said the
roof was the City's solution to making the building safe so the wall wouldn't fall down.
He said the structural engineer gave them a list of items requiring repair and they have
been completed. Mayor Garvey asked if the building, including improvements, was safe.
Mr. Chodora said it was safe as a temporary condition only.
Commissioner Thomas requested the City Attorney review Mr. Johnson's
comments to verify if the claims made by Mr. Johnson are correct and provide a report
prior to the January 20 Commission Meeting. Commissioner Thomas stated there seemed
to be a two year history of stalling and delay. He said the air conditioning building was
included in the Commission's request because Mr. Johnson had added this building to the
design concept of the project. He felt the Commission was trying to solve a blighted
problem by dealing with the common ownership of, the properties as a total project.
Mr. Johnson said Mr. Schoeller met with Ms. Rice prior to January 12 to discuss
his plans for the building. The parameters set by the Commission prevented an agreement
being reached. Commissioner Thomas expressed concern that there had been two weeks
with no progress being made on addressing the problem. Mr. Johnson felt the
Commission was laboring under a misimpression of Mr. Schoeller and that the conditions
established at the January 3 meeting were based on that impression. Mr. Johnson stated
the City Attorney, would, upon review, confirm his retelling of the background. Mr.
Johnson felt his testimony casts an entirely different light on how the Commission should
view Mr. Schoeller.
Commissioner Thomas felt Mr. Schoeller was part of the problem of blight, not the
solution. Mayor Garvey said the Commission's main issue was the condition of the Ice
House noting that Sunset Air Conditioning had not been perceived as a problem. Mr.
Johnson reiterated that fixing the Ice House as soon as possible was their desire and if
they failed, the money for demolition is held in escrow.
Commissioner Thomas said he did not withdraw his support for a serious penalty.
He indicated he wanted the property redeveloped as Mr. Johnson and Mr. Schoeller had
described. Mayor Garvey stated the building had some advantage. Commissioner Thomas
concurred, stating the letter from the historical society was more meaningful than anything
he had heard to date. Mr. Johnson said the construction would include a penalty clause
for missed deadlines of $100 a day to be paid to the City by the general contractor. Mr.
Johnson said there was no way Mr. Schoeller could get this penalty. Mr. Johnson said
Mr. Schuller waived any defenses to the City tearing the building down if work is not
commenced by the deadline.
min0001 c.94 14 1118194
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Mr. Johnson reiterated the need for two weeks to be added to his proposal of
January 3. If construction is not begun by May 16 plus the two week extension, the City
would receive the escrow money.
Commissioner Barfield requested a copy of the revised contract, including the new
dates, by January 19. She questioned the May 16 date of planned commencement and
asked if he wanted to add 14 days to that date and Mr. Johnson agreed. Commissioner
Barfield requested confirmation that the agreement would state that if construction is not
begun by May 30, 1994, the City could receive the funds in escrow and the building
would be demolished. Mr. Johnson agreed.
Commissioner Barfield asked why Mr. Johnson didn't provide all the information on
January 3, 1994. Mr. Johnson indicated he didn't have the information at that time. She
asked if the October letter he referred to spelled out new violations. Mr. Johnson said the
violations spelled out were basically the same violations noted by their own engineer plus
the City's request that a roof be constructed. Commissioner Barfield asked if the original
violations were reiterated and the new violation regarding the roof was added. Mr.
Chodora agreed.
Commissioner Barfield asked if the building was inaccessible. Mr. Johnson
explained windows, not boarded on the east wall, were protected by a strengthened
fence. She asked if Mr. Schoeller appeared before the Code Enforcement Board. Mr.
Johnson said his client wasn't there but was represented by Mr. Litton who carried back
the message that if Mr. Schoeller worked in good faith, he would not get a notice of non-
compliance. Commissioner Barfield asked if the Sunset Air Conditioning building were tied
into the project, would it cause a problem. Mr. Johnson stated that action would double
the size of the project. Commissioner Barfield asked if Mr. Schoeller was willing to go
ahead with the Ice House if the Commission was willing to not ask him to include the air
conditioning building at this time and Mr. Johnson agreed.
Commissioner Deegan said the Commission needed to keep in mind what they
hoped would be the final result, even if it took some time. He said safety of citizens must
be foremost. He felt it would be beneficial to have a project like Mr. Schoeller's on the tax
rolls serving as an attraction and keeping the original Ice House as an historic building.
Commissioner Deegan said the agreement suggested at the last meeting was an attempt
to realize a completion of this project in the face of what appeared to be a hesitancy of the
current owner to move forward. He noted a new picture was presented today and,
pending a positive review by the City Attorney and Mr. Chodora, the Commission should
allow something along the lines recommended by Mr. Johnson, except the money in
escrow should be maintained in escrow during the entire construction period as a possiblo
penalty.
Mayor Garvey concurred with Commissioner Deegan and noted that demolishing
would accomplish nothing but providing downtown Clearwater with another vacant lot.
She agreed safety, the first issue, had to be addressed. Commissioner Fitzgerald said he
too was in agreement but wanted to be certain the agreement assured construction
occurred. He said he was willing to extend the time, but not longer than 14 days.
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ass.>Fxr._ :,.... .... 1
Commissioner Barfield asked if Mr. Johnson's client would be willing to leave the
money in escrow during construction. Mr. Johnson didn't think that provision was fair as
Mr. Schoeller had complied with what the City asked. Mr. Johnson noted this request
would tie up cash Mr. Schoeller could be investing in the project. Commissioner Berfield
felt this should be worked out so the project wasn't delayed another two weeks. Mr.
Johnson said he would need to discuss this with his client.
Commissioner Thomas said if Mr. Johnson's account was more accurate than the
City's, he would support releasing the escrow funds to Mr. Schoeller for construction.
Commissioner Thomas requested an opinion regarding standard construction penalties.
Commissioner Thomas requested this issue be used as an exercise to be certain the City
properly pursues its new focus on removing abandoned, boarded up, and unsafe buildings.
Mr. Galbraith, City Attorney, indicated he, Mr. Chodora, and members of Mr.
Chodora's staff would review the tape of today's meeting and the City's files in order to
have a report to the Commission by the afternoon 'of January 19. He asked Mr. Johnson
to provide him with a copy of the letter he referred to from Mr. Schoeller's engineer.
Mayor Garvey requested that copies of the minutes Mr. Johnson referred to be provided to
the Commission.
Commissioner Thomas moved to continue Item #21 a until Thursday, January 20.
The motion was duly seconded and carried unanimously.
Meeting recessed from 11:10 a.m. to 12:33 p.m. to meet as the Trustees of the
Employees Pension Fund,
bl Concept Paper re_ Police Headquarters Building
In a memorandum to the Mayor and City Commissioners, Interim City Manager
Deptula noted Chief Klein had completed a draft RFP to proceed with the employment of a
qualified architectural consultant to examine the options for a new Police Headquarters
previously submitted to the City Commission. The staff reviewed the draft RFP and
developed an alternative recommendation as to the evaluation, methodology, location and
construction of a new Police Headquarters building.
. In her memorandum, Ms. Deptula stated it is her and the Police Chief's position that
the current location is most suitable since the Police Department's implementation of a
decentralization process in the early 1980's is still effective, the physical presence of the
Police Department in the downtown core area is important to the eventual revitalization of
the area and the police parking lot on the south side of Pierce Street has sufficient land
area to construct the nucleus of a "Public Safety Complex" that would physicaIly'integrate
the components of police, fire and emergency management.
The design-build concept is recommended for this project which would proceed as
follows: City Hall Project Manager, Donnell and Associates, will be hired to conduct a
structural, electrical, mechanical, and space needs analysis of the existing headquarters
min0001 c.94 1118194
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building to determine its suitability for major renovation. If the existing. Police
` Headquarters building is suitable for renovation, a multi-story facility above an elevated
parking garage on the south side of Pierce Street in the existing police parking lot with a
physical connection to the existing Fire Station to the west and an elevated walkway
connection over Pierce Street to the existing Police Building to the north would be
designed and constructed by the chosen design-build firm.
If the existing Police Headquarters building is unsuitable for renovation, a firm can
design and construct an entirely new Police Headquarters facility in a multi-story, non-
elevated building in the police parking lot on the south side of Pierce Street, demolish the
existing Police Headquarters building and construct there a multi-story parking garage to
serve both police and public.
Also included in the plans, would be modifications to the existing outlying police
substations required to fulfill ADA requirements, existing and future space requirements,
and "hardening" for emergency operation conditions.
The construction of a police annex building would provide for: 1) Use of the
renovated first floor of the existing headquarters building as the West District patrol
station, 2) Use of the second floor for all investigative operations, 3) Relocation of all
administrative operations, Support Services Division, Communications Division, State
Attorney's office, Legal Advisor's office, Records and public reception areas to the new
annex building, 4) Construction of a new Emergency Operations Center and support facility
that would physically be capable of accessing the kitchen and sleeping facilities of the Fire
Department in disaster situation, and 5) Construction of an adequate training facility with
.y adjoining gymnasium.
The Interim City Manager and Police Chief reviewed the proposal. Ms. Deptula
stated she is requesting permission to proceed with the evaluation of the current building.
Space needs would not be addressed at this point, only the condition of the present
facility. The existing contract with Dean Rowe's firm could be used for the services to do
this evaluation.
Mayor Garvey said the proposal seemed reasonable and noted the poor condition of
the present facility. Ms. Deptula indicated the original Penny for Pinellas list of projects
included a proposal for a new Police Headquarters facility which has been in the planning
stages for years. Commissioner Thomas said the City's need for a new Police Department
was overdue, but wanted further discussion on the parking issue because ground level
parking would have a much lower cost than a multi-story parking garage. He thought
tying all emergency and safety features of the City together made sense.
Commissioner Deegan asked if the Commission was being asked for permission to
go ahead with the study and to make a final decision that the location shall remain the
same. Ms. Deptula indicated this was what was being requested. Commissioner Deegan
said he supported this as he did not want Police Headquarters to abandon downtown.
min0001 c.94
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i
Commissioner Deegan moved to direct the Interim City Manager to enter into an
amended agreement with Donnell and Associates to act as the architectural consultants to
examine the present Police building facility and make recommendations regarding its
ongoing use as Police Headquarters or 1 other appropriate alternatives and to finalize that
location would be within a block of where the Police Headquarters is now located and to
direct the project be expeditiously completed. The motion was duly seconded and carried
unanimously.
CITY ATTORNEY REPORTS
ITEM #22 - First Reading Ordinances
a) Ord, #5535-94 - Vacating north 30' of Magnolia Dr., lying south of Lot 10, Blk E,
Edenville Sub., less easterly 20' (Chapin, V93-15)
The City Attorney presented Ordinance #5535-94 for first reading and read it by
title only. Commissioner Fitzgerald moved to pass Ordinance #5535-94 on first reading.
The motion was duly seconded.
Upon roll call, the vote was:
"Ayes": Fitzgerald, Barfield, Deegan, Thomas and Garvey.
"Nays": None.
ITEM-#23 -, Otber, CilY.!°.!llgrng-y.. Items,
Mr. Galbraith reported he had met recently with the City Attorneys of'Tallahassee,
Gainesville, Orlando and Tampa. He said he intends to present a report to the Commission
by January 21, summarizing what he learned and making recommendations regarding the
staffing of his department. He said he has some work completed on the SAMP plan for
the Assistant City Attorneys and a pay classification and salary range recommendation.
The meeting recessed from 12:36 to 1:16 p.m..
ITEM #24 - Citv Manager Verbal Reoor
Ms. Deptula asked for clarification of direction given at a previous meeting
regarding the oleanders on the medians on Island Estates. Ream Wilson said there were
15 medians on Island Estates in addition to the entrance median. The City's plan was to
remove all of the oleanders and put in grass and palm trees, but the wording in the item
said to remove diseased oleander which lead some to believe some oleanders would
remain. The three northernmost medians were completed. The five southernmost
medians, which never had oleanders, are currently being done.
min0001 c.94
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Mr. Wilson indicated there was a request that the oleanders remain in medians 8, 9,
10, 11, and 12 to block the view of multi-family housing from the single family residential
area. Mayor Garvey asked if the intention wasn't to keep all of the medians alike. Mr.
Wilson indicated the first five medians would be grass and smaller trl)es similar to the ones
on the Causeway and the other ten would be grass and palm trees. He said the time
saved from not maintaining oleanders would be used to maintain the grass and. palms.
Mayor Garvey asked what the Island Estates Association wanted. Mr. Wilson indicated his
discussions with the Association covered the removal of all of the oleanders.
Commissioner Deegan said he brought this to the attention of the Interim City
Manager as all of the oleanders would be removed. He indicated some of the families in
the single family homes on the east side had grown accustomed to using the oleanders,
which were about twenty feet high, as a barrier against the multi family structures across
the street. He stated all parties are satisfied with the work being done but there was
some concern that there would be no color in the medians. He questioned the Civic
Association's ability to plant hibiscus or similar plants around the base of the palms. Mr.
Wilson said the City installed a drip irrigation system because the original intent was for
color to be added through an "Adopt a Park" agreement whereby the Association would
purchase, plant,. and maintain the materials.
Commissioner Deegan said he asked the Interim City Manager for a financial report
on the cost of this project that includes the time for labor and estimated charge for the use
of the equipment.
Mr. Wilson clarified that the Commission's direction was to remove all of the
oleanders and to pursue an "Adopt a Park" agreement with the Civic Association. There
was no disagreement that this was the Commission's direction.
Ms. Deptula reported Dr. Peter Graves is leading the City's Community Consensus
Meetings with the citizens on January 19 and January 20. He will give a report to the
Steering Committee the morning of January 19 and will present his findings to the
Commission on February 3.
r
Ms. Deptula stated the original plan for removal of over 100 unsafe structures
called for a two to'four year time frame. She said a tighter schedule was developed and
100 structures would be addressed this calendar year. k
Ms. Deptula referenced a request by the Department of Highway Safety that the
Commission pass a resolution supporting their budget request. She felt if the Commission
passed this resolution, making a blanket statement of support, the City might be
inadvertently asking the legislature to raise taxes or in some way decrease programs for
the City. Ms. Deptula asked the Commission to not approve the resolution but instead
approve the drafting of a genoric latter to the Legislature stating the City supports public
safety issues and appropriate funding.
minOO01 c.94
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Commissioner Fitzgerald thought this was a good approach because he had
questioned whether the City would want to make a blanket statement. Mayor Garvey
indicated she is always hesitant to make this type of financial commitment.
ITEM #25 - Commission Discussion Items
a) Environmental Advisory Go-Mmittee
The City Clerk indicated the Environmental Advisory Committee has requested the
Commission make the Committee a permanent board. Ms. Goudeau said this would
require the drawing up of an ordinance which includes the Committee's mission statement.
Commissioner Deegan said the Committee's January 13, 1994 agenda included most of
the issues requested by the Commission. He felt the kinds of things the Committee was
studying and the assignments to various task groups warranted their being made a
permanent board.
Commissioner Deegan moved that City staff take steps necessary to make the
Environment Advisory Committee a permanent advisory board to the City of Clearwater.
The motion was duly seconded.
Mayor Garvey said one issue that needed to be addressed was that any member on
the Advisory Committee who also serves on another City Advisory Board must resign one
position. Mayor Garvey agreed with Commissioner Deegan that the new direction of the
committee was positive for the City.
.i Upon the vote being taken, the motion carried unanimously.
W Allocation of Funds from Sale of Sludge Farm in Hillsborough County
Ms. Deptula said the Hillsborough County proposal for purchase of a portion of the
"sludge farm" would be on the Commission's January 31 agenda. She explained all the
monies used to purchase that property came from the Water and Sewer Funds and all
monies from the sale will need to be .returned to the Sewer Fund. She said staff was
researching if the portion that came from Impact Fees must be returned to the Impact Fee
Account which has stringent requirements for its use. An opinion from the Legal
Department is expected by January 31, 1994. Ms, Deptula indicated the Environment
Advisory Committee's recommendation that these funds be used to purchase endangered
lands cannot be pursued.
c R view of Bud a Advisor BAC Recommendations 01/93 - 12/93
Commissioner Deegan indicated he agreed with the Budget Advisory Committee
that the Commission is not responding quickly enough to the BAC's recommendations. He
had requested a listing of the recommendations made by the BAC during 1993. That list
was provided to the City Commission. it was the consensus to address each one:
min0001 e.94
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1) The privatization of the maintenance (landscape maintenance) of Morningside
Meadows, Island Estates, and like services.
Commissioner Deegan asked if there was a report from Parks and Recreation on
what had been done regarding this recommendation. Deputy City Manager Kathy Rice
said staff was developing the bid specifications.
Commissioner Deegan asked if the City included cui de sacs as suggested by the
BAC. Ms. Rice said she would send the Commissioners a full list.
Commissioner Deegan said the Committee reminded the Commission they were not
suggesting the care of City buildings be contracted but the neighborhood cul de sacs
where expenses run high because of the time spent by City employees driving to and from
the neighborhoods. He suggested private landscapers could do the jobs for lower costs.
Ms. Deptuia said contracting the care of the cul de sacs was the Committee's
suggestion. She said former City Manager, Mike Wright, had also recommended doing
cost comparisons on City buildings during last year's budget process. Ms. Rice said she
would provide the Commission with the list currently prepared by staff. She said she
would add the cul de sacs and remove any items at the Commissions direction.
Commissioner Thomas noted Parks & Recreation had observed it costs more to
unload the equipment than it does to cut the grass. Mayor Garvey suggested the City
might be able to find someone in the neighborhoods or neighborhood associations to
maintain their cul de sacs.
2) Support the City Manager's decision to charge increased recreation fees for non-
City residents or property owners.
This was addressed during the budget process.
3) The City set a cap of $200,000 per year as a contribution for the operating
residual to the Long Center. The City should investigate and exercise its right of approval
over the Long Center Budget. The City should pay particular attention to any
discrimination in membership rates for City residents.
This was done during the budget process.
4) As new programs are added and changes are made by the City Commission to
expend more funds, these decisions have identified with them the specific funding
mechanism to be used to pay for these additional costs. Examples dre Commissioner
salaries, the General Accounting Office, and funding of the new City Hall.
Consensus was that this is typically done at the time of the formal decision to
implement a program.
minCC01 c.94
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5) The subject of the Commission salaries be assigned to the Charter Review
Committee next year with the recognition that an appropriate adjustment be made with a
provision for annual adjustments based on the general salary adjustments that are provided
to City employees.
Consensus was this had been done.
6) Before a fi_ r pl decision is made regarding the construction of a new City Hall, that
a report, including a full analysis of the new City Hall operating costs and savings to be
provided from the existing facilities, be made available to the Budget Advisory Committee
and the public.
It was the consensus this was done at the special public hearing regarding the City
Hail project.
7) Any public hearings on the City Hall issue be deferred until financial and
operational facts can be documented and represented to the public, so that the public' can
render an informed opinion.
Consensus was this had been done.
8) If members of the City Commission choose to go to a Phillies World Series game,
they must use their own money and not use City Funds.
Commissioner Deegan stated this recommendation was received after the fact.
Mayor Garvey said she disagreed with this recommendation because she believes the
Phillies are an important economic asset to the City of Clearwater and City representation
at similar events should be encouraged.
Commissioner Deegan pointed out the Commission has an out of area travel policy
and all travel must be individually approved by the Commission. He said when the Phillies
invited the Commission to attend the World Series, a vote was taken, and the travel
approved.
9) The City of Clearwater not join the Pinellas County Library Cooperative for
numerous reasons.
This is a subject for a future agenda item. The Committee's recommendations
would be discussed at that time.
10) The special referendum on the General Accounting Office be canceled so that
the issue can be studied by the Charter Review Committee and then put on the ballot in
March of 1995. The recommendation is made because the public is not adequately
informed on this issue, the cost of a special referendum is disproportionate to the cost of a
referendum during a scheduled election, and the timing of the special election will not
produce a representative cross-section of voters.
This election has been canceled.
•'' minCC01 c.94 1118194
22
.. ,.14 L...s:.......
dl Federal Empowerment Zones
Ms. Rice said they were still researching this issue and will forward a response to
the Commission on whether or not portions of the City would qualify. She indicated that
in conversations with Ms. Bramson, it didn't appear the City met the criteria. She said
they would watch this closely because regulations are not well defined.
Commissioner Deegan indicated he brought this up because he wants Clearwater to
get its fair share of Federal dollars. He indicated he was more interested in the part of the
project dealing with Enterprise Zones, which the City has.
25d SWFWMD New Water Source Initiative- Project
In a memorandum dated January 10, 1994, Commissioner Deegan noted the
deadline for submitting project funding requests for SWFWMD's $10 million "New Water
Supply Initiative" is February 1, 1994. Since SWFWMD claims that "95% of the recent
millage increase is dedicated to support local governments through new or enhanced water
resource development projects," Commissioner Deegan requested th)3 City, possibly with
the Environmental Advisory Committee, work on this funding request.
Ms. Deptula indicated this would be included with the Water Supply discussion.
Commissioner Deegan noted this discussion wasn't scheduled until after the February 1
deadline. Mr. Baker said the discussion in February would include staff's plan to compete
for the approximately $10 million a year available from the Pinellas-Anclote River Basin
Board. Mr. Baker said there would also be a presentation at the January 20 meeting
p explaining the City's strategies to compete for a separate $10 million water initiative
' which had a deadline of February 4 and could be met.
Commissioner Deegan explained information received from SWFWMD suggested
they have a $10 million appropriation to use for "New Water Source Initiative Projects."
SWFWMD claims 95% of the recent millage increase was to support these new projects.
He felt that because Clearwater citizens are impacted by the millage increase, the City
should receive its fair share of funding. He wants to be certain the City applied for
SWFWMD funds.
Mayor Garvey asked if staff responds to opportunities to apply for money without
direction from the Commission. Ms. Deptula agreed staff seeks all opportunities as long as
they fit with the Commissions policies. She said if she was unsure of how opportunities
affect policy, she would bring it to the Commission first.
Mayor Garvey said she assumes staff aggressively pursues funding dollars for
which the City qualifies. Ms. Rice stated they did as long as the funding had no onerous
strings attached or is against specific policy. Commissioner Deegan stated the
Commission needs to be aware that if staff responds, it might affect other work and
budgets already committed to.
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ITEM #26 - Other Commission Action
Commissioner Deegan noted staff is to bring back information on the,Glen Oaks
Golf Course within 90 days. He reported he is now a full voting member of the Chi Chi
Rodriguez Board of Directors and has discussed the golf course with Mr. Hayes, President
of the Foundation. Mr. Hayes told Commissioner Deegan he was gathering the information
City staff requested.
Commissioner Deegan said other cities around the country operate and lease golf
courses. An organization called the National Golf Foundation (NGF) does consulting for
many of these city owned golf courses. A NGF audit provides a city with an independent
assessment of the current golf course operation and its physical condition, and is intended
to assist a city with decisions regarding future lease agreements or the possibility of self-
operation.
Commissioner Deegan said he discussed the feasibility of contracting a study by
this organization with Mr. Hayes, who responded the Foundation would share the cost.
Commissioner Deegan proposed the Interim City Manager contact NGF, find out the cost
for an audit, and see if it could be done within 90 days. He said getting an objective
evaluation from a nationally known organization would be helpful to the Commission in
deciding what to do with that City owned property.
Mayor Garvey said she had no problem with Commissioner Deegan's
recommendation but suggested the Commission give the Chi Chi Rodriguez Foundation at
least a two-year contract or agreement so that while the audit took place, the Foundation
could feel secure in continuing to spend their dollars on maintaining the golf course.
Commissioner Deegan replied the Commission already said it would study this matter for
90 days and suggested that a- two-year lease might be appropriate after the audit is
complete.
Mayor Garvey asked what Commissioner Deegan suggested the Commission do if
the City didn't have the audit within 90 days. Commissioner Deegan said the Commission
should then review the information presented by staff. Mayor Garvey asked the
Commission to consider a two-year lease because of how the program's children were
affected and the ramifications inherent in the possible phasing out of the children's
program. Commissioner Deegan reported that both the Foundation staff and people in the
audience attending last week's Foundation meeting were satisfied the City would do an
objective evaluation within a 90-day period. He felt that instead of making a hurried,
emotional decision, the Commission should get the facts and objectively review them.
Mayor Garvey said she preferred a longer process for the Commission to arrive at a
decision of this importance.
Commissioner Fitzgerald felt the issue should be resolved as quickly as possible.
He said he had been in favor of the leases going forward as presented and hadn't seen
min0001 c.94
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anything that would change his mind. He agreed that the impact on programs involving
children was a problem. He didn't think NGF could respond quickly enough and
questioned the cost and the cost sharing. Commissioner Fitzgerald recommended an
interim lease, so the Foundation and children involved would know they had a place to go
and a program they could be involved in for a period of time as opposed to a month to
month basis.
Commissioner Thomas said he wanted to see staff's analysis and recommendations
on the total issue. He too, had sent information to the Interim City Manager on NGF and
questioned the time required for a professional audit and expressed concern about the
cost. He noted it was a credit to the Foundation that they were willing to share the cost.
He didn't feel anybody was being harmed by the delay while information was gathered.
Commissioner Thomas indicated he would not cancel a foundation overnight.
Commissioner Thomas said he had only questioned if the entire issue of the golf course
had been analyzed before it was automatically given away for a dollar a year for five years.
He said he could not imagine it not being a golf course, but it was up to staff to present
the Commission with all alternatives.
Commissioner Deegan reiterated he is only asking staff to get information regarding
the cost for an audit and whether or not it could be completed within 90 days and be
brought, to the City Commission Thursday night. Mayor Garvey reiterated this dealt with a
program for children and whatever the Commission could do to help children stay out of
the Juvenile Justice System should be viewed as a positive step. She would prefer giving
the Foundation a two- or three-year lease, possibly followed by a two-year option. This
would give the staff and Commission time to evaluate. She felt staff was being pushed to
complete the study within 90 days.
Ms. Deptula said staff would present the information to the Commission at their
January 20 meeting.
Commissioner Fitzgerald reported he, Mr. Warrington, Gas System Manager, and
the Assistant Superintendent of the Gas System attended a meeting of the Suncoast
League which gave them a chance to talk with New Port Richey Commissioners and the
Mayor about the expansion of the gas system. He felt this was a positive move.
Commissioner Fitzgerald said a report rendered to the League indicated the Department of
Community Affairs has grant funds that go unutilized because people don't know they are
available. He suggested staff contact DCA and find out about these funds.
Commissioner Thomas said he recently read a report regarding General Electric's
reengineering of their jet propulsion system using natural gas to generate electricity. He
said this method provides for clean air generation of electricity. He asked the Interim City
Manager and the Gas System to contact General Electric's jet engine propulsion division
about these new power plants and suggested the City might be able to go into the
electricity generating business.
minCCOZc.94 1118194
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Mayor Garvey questioned if this would be subject to the rules of the Public Service
Commission. Ms. Deptula said she didn't know but would research it. Commissioner
Thomas said there is a trend toward pocket power plants by power companies that have
access to natural gas.
Commissioner Berfield suggested such a plant could be placed on a barge and used
in a time of natural disaster. Commissioner Thomas felt local natural disasters generally
result in power lines going out. He suggested the City take a long range approach and
mandate that whenover a road is torn up, power lines be buried.
Commissioner Fitzgerald referenced a letter from a resident of Island Estates to the
Island Estates Civic Association questioning the Jolley Trolley traveling to the,end of Island
Estates. Commissioner Deegan said the concern several residents expressed was that
undesirable people may ride the Trolley through the neighborhoods and "case" the private
homes. He said there didn't appear to be a need for the Jolley Trolley to travel all the way
to the end of Island Estates.
Commissioner Thomas said he spoke with the Trolley Board yesterday and the
Operating Director tentatively agreed to travel only half way down to serve residents of
the condominiums. Commissioner Barfield, who sits on the Jolley Trolley Board, said she
would report to the Commission the results of the Trolley Board's January 18 meeting.
Mayor _Garvey referenced the Code Enforcement Review Task Force's
recommendation to keep the Community Response Team's name. Commissioner Deegan
indicated this would be discussed along with all of the recommendations of the Task
Force. The City Clerk said this was scheduled for discussion on January 31.
Commissioner Deegan questioned the procedure for Executive Session meetings.
Ms. Goudeau said the proposed rule was being drafted and would be placed on the agenda
for discussion.
Commissioner Thomas suggested that City Commission meetings recess before an
Executive Session rather than adjourn so meatings'could be reconvened and votes taken if
necessary. Mayor Garvey said she understood the purpose of the Executive Session was
for information only. Ms. Deptula said that was what she proposed but suggested, that on
occasion, the Commission might wish to take action instead of postponing the item until
the next meeting. Mayor Garvey noted that neither this meeting nor the items were
advertised so no decisions could be made.
Commissioner Thomas repeated he supported the concept of going into Executive
Session after recessing the regular meeting of the Commission so the Commission could
maintain their option to return to regular session and make decisions. Commissioner
Fitzgerald said he opposed that because the idea of an Executive Session was to gather
information and ask questions in other than a decision making mode. He said if the
Commission reserved its right to revert to a decision making mode, it would circumvent
the public's involvement. He said this meeting was advertised as a discussion only.
min0O01 c.94 1/18/94
26
Mayor Garvey said Ms. Deptula's memo indicated this Executive Session was
I scheduled to allow the public to speak but in the future would only include discussion
among the Commissioners and staff. She would be very hesitant to make any decisions if
the public were not allowed to speak. If the public was allowed to speak, the Commission
might as well continue the regular meeting. Commissioner Thomas pointed out the public
always has the opportunity to speak during a regular meeting. Mayor Garvey said the
public would not know an item was on the agenda. Commissioner Thomas replied there
should be an agenda for the Executive Session.
Commissioner Deegan said he thought the rules stated the public always had a right
to speak on any topic even if not an advertised public hearing. Commissioner Deegan said
the title "Executive Session" suggests going behind closed doors which the Commission
can never do.
Mayor Garvey said the rules for work sessions did not allow the public to speak
because the sessions were for conversation between City Commissioners and staff.
Commissioner Barfield said the Commission retained the option to ask someone to speak.
Commissioner Fitzgerald said the critical word was the Commission "requested" someone
to speak and not that anyone could speak at will. Mayor Garvey said the "request" must
be made by the Commission, not by an individual Commissioner.
Commissioner Deegan said he objected to not allowing the public to speak. Mayor
'Garvey said this was an opportunity to get information on a particular topic so the
Commission could spend some time thinking before casting a vote. Commissioner Deegan
suggested these items be included under "Presentations."
Consensus was to continue the January 18, 1994 regular meeting with the items
originally agendaed for Executive Session as Presentations.
Presentations
Membership in the Pinellas Public Library Cooperative, effective 1011194 (LIB)
The Pinellas Public Library Cooperative was formed in January, 1989 when twelve
local communities with public libraries signed an interlocal agreement to provide library
service to any resident of the member library communities or unincorporated Pinellas
County in exchange for county tax funds. Clearwater chose not to join at that time.
During the past four years, the library cooperative has developed a successful track
record. In March, 1993, the Clearwater Public Library Advisory Board formed a task force
to re-evaluate membership in the Cooperative. After meeting with cooperative member
library directors and studying the impact that opening library usage to county residents
might have on Clearwater, the Library Board unanimously voted to recommend joining the
Pinellas Public Library Cooperative. The Library's support groups, Friends of the
Clearwater Library and the Greater Clearwater Public Library Foundation, have also voted
in favor of membership in the Cooperative.
min0001 c.94 1118194
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r The approximately $500,000 per year in county funds will be used primarily to
purchase library materials and hire support staff for the East and Countryside branches,
which are anticipated to receive the greatest impact from membership in the Cooperative.
It is important that the Commission understand that the county funds are reimbursement
for service to county residents; they are not intended to supplant the local operating
budget which serves Clearwater residents. The funds from the Cooperative will be
deposited to a separate account and handled as a grant.
Dr. Arlita Hallam, Library Director, provided background on joining the Pinellas
Public Library Cooperative. She said Clearwater had many reasons for not previously
joining the Cooperative and some of those reasons still exist, the main one being financial
inequities between member libraries.
Dr. Hallam explained county residents will pay $19 next year while Clearwater
residents pay $31.59. She said dedicating Cooperative funds to serving the added county
residents would result in an effective reimbursement of $27.16 per non-resident borrower.
Dr. Hallam believes qualified, interested candidates to serve on the Cooperative Board of
Directors can be found and her membership on the Librarian's Advisory Council would
guarantee Clearwater would always have representation in the decision making of the
Cooperative.
The East and Countryside branches are expected to experience the greatest impact,
therefore half of the approximately $507,000 to be provided yearly by the Cooperative
would be used to purchase library supplies for those locations and 13.5 additional staff
would be hired. She estimated it would take four years to return the turnover rate at East '
and Countryside to the present level.
Dr. Hallam said because it was not a member of a county system, the Clearwater
Public Library System was not presently eligible for state project or construction grants. If
they join the Cooperative, Clearwater could apply for library construction grants and for
one of four annual project grants made available to Pinellas County. Funds from the
Cooperative could be used for personnel costs, library materials, operating expenses,
building repair, library furnishings, vehicles, renovation or building additions under
$25,000, data processing charges and any other normal library budgetary expenses.
Separate Cooperative and state grants were available for construction purposes.
If Clearwater joins the Cooperative, it will qualify for 17% of the 85% of the total
Cooperative fund. Dr. Hallam felt the funding formula could be improved and promised to
work on developing a formula based upon library usage rather than population and local
support. She stated she could not recommend membership in the Cooperative if the
Commission proposed cutting the library's local operating budget.
Dr. Hallam said the purpose of the Cooperative was to share resources, to network
automated systems, to provide interlibrary loan and delivery systems, and to take
advantage of discounts and joint publicity which are not available to individual library
systems. She said several Pinellas County libraries are linked through Sunline and the
Pinellas School District is automating its libraries. She said linkage between the schools,
the junior college, and the libraries would be a natural evolution.
min0001 c.94 1118194
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Dr. Hallam pointed out the diversity of collections offered in other local
kt? communities. She said Clearwater residents would no longer be limited to their 450,000
materials but could use the additional 1.6 million materials within 24 hours or a less than
15-mile drive. She said most library use is based upon convenience and citizens who work
in other communities may find it more convenient to stop at those cities' libraries at lunch
or after work rather than making an evening or Saturday visit to a Clearwater branch.
She explained the Cooperative is now in its fifth year and library service in Pinellas
County is greatly improved because of it. She noted new libraries or major additions were
constructed in the neighboring communities of Palm Harbor, Safety Harbor, Oldsmar,
Largo, and Seminole. Dr. Hallam said the libraries in the Cooperative had 66 librarians with
Masters Degrees in Library Science and most member libraries offered database searching
as a standard library service.
Dr. Hallam said the ten-county Tampa Bay Library Consortium chose, as their top
priority for the next three to five years, a ten-county, multitype reciprocal library card. She
said the information highway system is developing rapidly and if the City was going to be
a vital part of this system, they needed to cooperate.
.The City Attorney reported staff found out late in the previous week that two
members of the City's Library Board met with individual Commissioners thinking the
Sunshine Law did not apply because one of the Library Board members "wore his Library
Co-op hat." He said in discussing what to do about the situation, it was decided the best
thing was to explain to the public and other Commissioners what was discussed during the
meeting and that minutes be prepared. At least one Commissioner indicated thase
minutes were incomplete and gave the Commission a one page summary of what took
place during that meeting. Mr. Galbraith explained this was an effort on the City's part to
lay open to the public the contents of those discussions. He thought by following this
procedure, the City has dealt with the situation properly in case any questions were later
raised.
Dr. David Berry, Chairperson of the Library Board, spoke on behalf of his board's
position on the Cooperative. He said his board followed the progress of the Cooperative
and observed the growth, improvement, and benefits experienced by member libraries. He
appointed a special ad-hoc committee to conduct an in depth study of the pros and cons
of membership in the Cooperative. The committee was instructed to determine benefits
and problems, the impact on circulation, if any citizens were denied services as a result of
the Cooperative, and what benefits would accrue to Clearwater citizens should Clearwater
join. He said members of the 'committee visited all northern Pinellas County and St.
Petersburg libraries, met with directors, staff, officials of the Cooperative, other prominent
citizens, and consulted with Dr. Hallam, who is experienced in working with other
Cooperatives.
The Committee submitted its report to the Library Board, which then voted
unanimously to recommend that Clearwater apply for membership in the Cooperative as
long as monies received from the Cooperative would be considered supplementary funds
and would not be used as a means to reduce or supplant existing local support. He stated
the Library Board recommended that all. monies received from the Cooperative in the form
min0001 c.94 1118194
29
•4'ak.y- .
.. ._}. ?i_t{ {ell.F.n 7!Ia•A Yr.?A'?. :J....3fi.l:
of a grant be placed in a special grants' account to be used exclusively for the purpose
' specified in the grant.
Tony Bacun, Vice Chair of the Library Board and Chair of the Cooperative Study
Committee, discussed the findings of his committee and asked the City Commissioners to
support joining the Cooperative. He said they obtained answers from the most qualified
and knowledgeable local experts in the field and felt it was clear that joining the
Cooperative would.enhance Clearwater's Library System. He said when they started their
study, he and most members were skeptical and negative about joining the Cooperative.
Mr. Bacun said that after the visits they made to libraries and the discussions they had
while there, the committee unanimously voted to recommend that Clearwater join the
Cooperative. He said their position was presented to the Library Foundation and-to the
Friends of the Library who voted by majority to join the Cooperative. Mr. Bacun said the
rumor that the libraries of Palm Harbor and Largo were interested in pulling out of the
Cooperative was not true.
Mr. Galbraith asked if any handouts or information given to the Commission today,
differed from materials presented in the one on one meetings. Mr. Bacun said every
member of the City Commission received the same packet. It was the consensus of the
,Commission that no information presented to them in private was not included in today's
presentation.
Ann Strother, as spokesperson for the Board of Directors of the League of Women
Voters of North Pinellas County, said the Leagues have long supported and recommended
Clearwater's membership in the Cooperative.
Frederick Dunn said he was originally against joining a Cooperative. He said the
Cooperative has grown up' and its time to join. He said the other libraries are catching up
to Clearwater and felt it was important Clearwater had a voice in the further development
of the Cooperative as well as a leadership role in a future multi-county system.
Bill Donovan, past and present member of the Library Board, the Friends of the
Library, and the Library Foundation, said he too was once strongly opposed to the
Cooperative. He felt the Cooperative will add to Clearwater's capabilities with more
materials and the important access to the network. He urged the Commission to vote for
joining the Cooperative.
Ann Wickersham, past and present member of the Friends of the Library; the
Library Board, the Library Foundation, and staff and planning committees, said this quality
of life issue was very important. She developed FROG and serves on the Suneoast Free
Net Organizing Committee which is developing a free access computer network for the
Tampa Bay area. She felt without the Cooperative's money, Clearwater would have to
find other sources of funding' to develop the technical tools that will soon be essential.
She said the Clearwater Library has met the Library Foundation's goal to be one of the 50
best public libraries in the country. Ms. Wickersham said joining the Cooperative will be
one step toward exceeding that goal.
min0001 c.94
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F
Daniel Moran, Budget Advisory Committee member, said he once favored joining
` the Cooperative. Now he said, "if it ain't broke, don't fix it." Mr. Moran said the
Clearwater Library System is one of the finest he's ever been involved with and would
favor joining the Cooperative if they were up, to Clearwater's level. He feared reducing the
level of Clearwater's libraries and felt the cost was not worth the price. He urged the
Commission to vote against joining the Cooperative.
Charlie Hunt, Library Foundation member, said he was originally against the
Cooperative. He said the library system changed and improved. He said there was
nothing wrong with being the best but felt it wasn't right to keep others out only because
they weren't quite as good. He pointed out that people in enclaves spend money at
businesses located in the City and predicted Clearwater residents will use the Largo and
Dunedin libraries. He urged the Commission to consider the total picture and vote to join
the Cooperative.
Bob Wright, Budget Advisory Committee Chair, said they concluded either
Clearwater's library budget would have to be increased substantially or-current services
would be depleted. His committee unanimously voted against joining the Cooperative. He
felt the City had already given away everything that would encourage annexation except
City sewer and library services.
Mayor Garvey said she was against joining the Cooperative five years ago because
surrounding communities had very small libraries and Clearwater would have been
inundated had they joined at that time. She noted the original agreement did not specify,
who was in charge, how the system would be operated, and required a great deal of trust.
She agreed that if Clearwater joins the Cooperative, the library will expand the resources
by a greater degree than possible five years ago. The Mayor said she would only agree to
join if the City maintains its current level of services.
She noted there were drawbacks but felt they were overshadowed by positives, like
the computer networking. In response to a question regarding books being returned to
Clearwater from another library, Dr. Hallam explained the book would be returned to
Clearwater Main and it might take another 24-hours before it would be back on the shelf
at one of the branches.
Mayor Garvey noted the agreement would be for a three-year commitment. She
said Dr. Hallam will treat funds from the Cooperative as a grant program.
Commissioner Fitzgerald requested clarification regarding the $507,000 that was
identified as Clearwater's annual share of revenue. Dr. Hallam said that was the figure the
library anticipated would be received during the first year. As county funding increases,
dollars from the Cooperative to Clearwater would also increase. Dr. Hallam explained
these funds are from taxes paid by residents in unincorporated areas of the county. Each
year all of the member libraries turn in the amount they charge their local residents; the
total is averaged and that dollar amount is then levied against county residents'. She said
the amount will change as libraries increase the charge to their residents.
min0001 c.94 1118194
31
,.
• r
Commissioner Fitzgerald noted that if Clearwater joins, the largest percentage
alloted decreases from 20% to 17%. Dr. Hallam said that Clearwater increases the dollars
available but reduces the percentages allocated. Ms. Rice explained no library can receive
more than 20% even if they should spend more, and no library would get less than 5%
unless they spent less than that amount.
Commissioner Fitzgerald asked if Clearwater could receive less than 17%. Dr.
Hallam indicated she did not believe so. She noted that funding for the medium size
libraries would decrease slightly while St. Petersburg and the smallest libraries would
benefit from increased funds.
Commissioner Fitzgerald questioned if there was anything that would reduce
Clearwater's share in the future. Dr. Hallam said Clearwater was the last system in the
county to join. She said Belieair was looking at library services and may decide to assess
themselves in order to join the Cooperative. She said there were no other existing libraries
in the county not already in the Cooperative except for five small beach.libraries.
The Mayor suggested the use of standards including the number of professional
librarians, the number of books, the number of hours open, etc. on which to base funding.
Commissioner Fitzgerald asked if state grants are separate from Cooperative funds
and Dr. Hallam agreed. He asked if Clearwater is not now eligible for state grants. Dr.
Hallam explained those grants are only available to county library systems and only
Cooperative library members can receive state grants. Commissioner Fitzgerald questioned
the dollar value of these grants. Dr. Hallam said construction grants have ranged from
.` $200,000 to $400,000. She said she did not recommend pursuing a construction grant
until the City decides it will remain in the Cooperative because construction funds must be
returned if a library system withdraws from a Cooperative.
Dr. Hallam said other funding available is in the form of state aid, which was
distributed to Cooperative library members according to the same formula. She said in the
future, those funds would be-centrally administered through the Cooperative office which
will pay for the van delivery service, automated connections, networking, some printing
costs, and publicity. She said the direction the Cooperative is taking, which is mandated
by the State, is to use the state funds centrally for Cooperative projects libraries cannot do
individually. -She said part of this money would go into Cooperative grants which can be
used for building or other projects like Largo, which got a $6,000 grant last year to
purchase the genealogy tapes and background records from the Latter Day Saints.
Commissioner Fitzgerald asked if there had been any change in the Cooperative's
rules regarding City representation. Dr. Hallam reported the Cooperative has not had an
abundance of people who wanted to serve on the board. She didn't think there would be
a problem getting a Clearwater representative on that board.
Commissioner Fitzgerald said he was advised the librarians also had a committee.
Dr. Hallam explained the City would have a permanent seat on the Librarians Advisory
Council, which is made up of all the library directors and makes recommendations on
policy, procedures, needed services, etc. to the board. Commissioner Fitzgerald asked if
min0001 c.94 1118194
32
the Cooperative board made recommendations regarding funding the system or if that
' decision was made by the county. Dr. Hallam said the board made those decisions but
was limited on the millage they could charge.
Commissioner Thomas asked about the 1.6 million materials that would be available
to Clearwater's citizens and how many were duplicates, He requested the net gain for
Clearwater citizens be made available at the January 20 meeting. Mayor,Garvey
suggested the true advantage was the added resources that would be available. Dr.
Hallam felt the advantage to residents was the access to specialized reference materials
not available in Clearwater's collection.
Commissioner Thomas questioned the legal ramifications of going forward with the
Cooperative and hiring staff should the City later decide to pull out. Dr. Hallam said she
intends to advise all candidates for the created positions that the jobs will be funded by a
grant and the City expects the project to last two to two and a half years when it will be
reevaluated for continuance. Ms. Rice said the City has a procedure which places people
under contract for a set amount of time.
Commissioner Thomas asked if all members of the Cooperative would lose funding
in order for the $500,000 to be allocated to Clearwater. Dr. Hallam stated this was not
the case. She reported that without Clearwater, the '931'94 contributions to the
Cooperative would have totaled $2,250,475 and with Clearwater the total would have
been $2,769.087.
Commissioner Thomas asked from where the extra $518,612 came. Dr. Hallam
' stated the taxes on residents in unincorporated, unserved areas would be increased if
Clearwater joins because the average local library support would be increased.
Commissioner Thomas questioned whether taxes on the citizens of Clearwater would
increase. Dr. Hallam said Clearwater taxes would not be affected. She said library taxes
now paid by residents of unincorporated areas are based upon the average of the 12
current member libraries and, when the 13th (Clearwater) library is added, the average will
increase because of the amount Clearwater residents now pay.
Dr. Hallam explained Table 2 shows the change in the formula from a 20% cap in
'93-'94 to a 17°/a cap in '94-'95. Without Clearwater in the Cooperative, the contribution
to the Cooperative is estimated at $2,420,505 and with Clearwater, the estimate is
$2,984,383. She pointed out that even without Clearwater, some of the libraries like
Dunedin, Largo, and Pinellas Park would lose some funding.
'Commissioner Thomas asked if once a city joins a Cooperative, could its
contribution be decreased. Dr. Hallam said it could, but that action would subject the city
to penalties and possible removal from the Cooperative. She cited Largo as an example as
they cut their local support two years ago by about $176,000 per year and lost about
$50,000 in state funds and $44,000 in Cooperative funds.
min0001 c.94
1118/94
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.• ? i?'aiiid'ti11
. Commissioner Thomas noted that a city that increases its library support would
then be subject to penalties if that city should choose to drop back to the original funding
level. '
Commissioner Thomas asked what would happen, besides the hardship on the
library, if Clearwater joined the Cooperative two years from now after first reducing the
amount of taxes to par with the county average. Dr. Hallam said the City would then get
less money because there would be much less money available. She also said many
services now available to Clearwater residents would be cut.
Commissioner Thomas asked how St. Petersburg contributes so little and receives
so much. Dr. Hallam, said the funding formula is based on population, not usage, and she
agreed it was not ideal. The Mayor noted the City can't change the formula until they are
a part of the Cooperative. Ms. Rice said advantages include the ability to provide citizens
with added services.
Commissioner Thomas asked it there were plans for the Library of Congress to be
totally computerized so a citizen could use a modem and tap into that library and read a
book off their home computer screen. Dr. Hallam said the Library of Congress can be
currently accessed by modem but she wasn't aware of a capability to retrieve every book
in that library. She noted some books, including one by Stephen King, have only been
published on computer, accessible through Internet, which the library uses extensively to
pull government documents and solicit information for studies.
Commissioner Thomas asked if the Internet system was tied into the Library of
?... Congress and available by modem from any citizen's home and Dr. Hallam said the citizen
could access it with a password. She said USF's library school is now handing out
Internet passwords to students as they register.
The Commission recessed from 4:29 to 4:39 p.m.
ITEM #2 -.Financial Forecasting ang her financial matters
The ICM distributed the Revenue Manual & Financial Indicators book.
Tina Wilson, Budget Director, said today's three year forecast would include a
discussion of available funding sources, a review of upcoming projects, and a discussion of
the sale of municipal bonds. Ms. Wilson said financial forecasting is a powerful
management,, planning, and budgeting tool designed to look exclusively at the condition of
the general fund. She said the City started using this method in the summer of 1991 to
forecast the '92-'93 fiscal year. She explained the purpose of the model was to project
the fiscal condition of the general fund over a• three-year period and to provide a
constructive working model for establishing policy during the planning period. She
explained the modal offers a summary of general fund revenues, expenditures, and fiscal
impact; including the possible millage rate after all alternatives are considered. 1
min0001 c.94 1118194
L 34
Ms. Wilson explained the Fiscal Indicator Document provides information on the
financial, economic, and demographic trends of the City and looks at City revenues,
expenditures, operating position, debt service, and other areas. She said the ten year
analysis of property tax revenues shows that while real property tax dollars are growing, in
constant dollars (real dollar data adjusted for inflation by the Consumer Price Index)
property tax revenues have remained level for the last five years. Ms. Wilson referred to
Net Operating Expenditures and said the trend in constant dollars is toward an increase in
expenses. She said the City maintained good control over net operating expenses during
the past six to eight years. She compared net operating expenses per capita in constant
dollars and noted the City maintained a steady level in controlling expenditures over the
last eight to ten year period. Ms. Wilson compared budgeted municipal employees for the
general fund and noted that in 1983 the City had 1,054 full time equivalent employees and
in 1992, the City had 1,045.4 full time equivalent employees. Ms. Wilson showed a graph
on general fund unappropriated retained earnings and noted the Commission had a 10%
reserve policy. In 1994 the reserve increased to 15%.
, Ms. Wilson compared the 92-'93 budget forecast in November 1991 with the
actual income and expenditures. She said the actual variance for revenue showed a
positive variance of 1.56% and the actual variance for expenditures showed a positive
variance of 1.34%. She said the City did an excellent job in forecasting.
Ms. Deptula stated she believes this indicated the validity of the model. She said
she would like to work the model with the Commission and advised them the Budget
Advisory Committee, representatives from four unions, and representatives from most
departments were invited.
Ms. Wilson displayed the '94-'95 Forecasting Model and showed how estimated
increases and decreases were shown for the '95, '96, and '97 fiscal years and the effects
of those assumptions. She said the value of the City's mill decreased five years ago and it
has stayed constant since. The millage rate for the last three years has been the same.
She reported the General Fund proceeds and monies set aside.for road maintenance and
improvement have changed little in the last several years.
Ms. Wilson said the value of existing property is level and new construction values
have decreased in the last two years. She said the 3% cap on property evaluation, which
will, not go into effect until next year, would have affected the City by approximately
$,10,150,000 translating into a $50;000 yearly loss in tax revenues. Commissioner
Deegan thought the law said either a 3% cap or the CPI, whichever is lower, which would
create even a greater negative impact on the City.
Ms. Deptula suggested since the cap would not effect the '94-'95 budget, the
Commission limit property values to zero growth. She suggested forecasting a decrease of
approximately one half percent in each of the following years, which would conservatively
result in a $100,000 loss.
min0001 c.94
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Ms. Wilson said the City's franchise fee revenue would probably increase by 1.4°x6.
' The utility tax revenue increase of 9.5% during the '93 calendar year was probably due to
weather. Ms. Wilson explained that licenses and permits appeared to have lost income in
'93-'94 and thought this trend would continue for the next three years. She said fines and
penalties increased due to additional City court fines, and estimated an increased income
of $100,000. Ms. Deptula said crossing guards, paid previously out of the General Fund,
now had adequate, dedicated funding.
Commissioner Deegan asked what percentage income was derived from
occupational licenses and Ms. Wilson estimated $1.3 million, or about 60%.
Commissioner Deegan asked if this amount had increased. Ms. Wilson said the number
held steady but building and sign permit fees increased. Mayor Garvey asked if the City
could increase the fee for occupational licenses. Ms. Deptula replied, a staff committee
was putting together a report on how the City could do that.
Commissioner Deegan thought estimating a zero increase was too conservative.
Ms. Deptula suggested an increase of 5%. Commissioner Deegan suggested
estimating increases of 5% year one, 3% the next year, and 1 % the'next. Mayor Garvey
said staff should think about this.
Ms. Wilson said the next budget, item was for federal grants reimbursement to the
General fund for CDBG and HUD activities. She said this income had been relatively stable
although it decreased over the past several years. She said there was no expectation for
an increase and budgeted the item for a 0°x6 change.
Ms. Wilson noted there had been some growth in the City's sales tax funding,
which was hard to adequately explain in view of the sluggish economy. She said she was
comfortable about projections for '94-'95 but preferred a more conservative estimate for
the following years. Mayor Garvey asked what driving force would allow for larger
increases and Ms. Wilson said the economy and tourism. Commissioner Thomas asked if
this included the Penny for Pinellas funding. It was noted these are general sales taxes.
Ms. Wilson said she thought the estimated increase should be 1.5%. Commissioner
Deegan asked why the estimate was 1.5% when past increases have been 8% and 9%.
Ms. Wilson explained it was too early to tell if this will be accurate because the City has
only received two payments. She said as they-get into the budget process further, they
will be better able to ascertain '93-'94 receipts. Commissioner Deegan asked if the City
knows the State estimate. Ms. Wilson replied the State doesn't usually release their
numbers until June. Ms. Deptula suggested increasing the projection to 3%.
Ms. Wilson reported the City's State Revenue Sharing remained steady and the City
estimated a decrease for '93-'94. She explained that '94-'95 will be the first year. Dade
County doesn't get a fixed 7% increase. She said she contacted the State Revenue Office
and asked if they had any estimates on how this would effect the City's share and. the
State said they hadn't done any projections. Ms. Wilson said she did a rough analysis and
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estimated the City's share should increase by approximately $50,000. She said they
estimated a 2% increase for '95 and level dollars in the following years.
Ms. Wilson said no increase was projected for other State Revenues from cigarette,
mobile home, and beverage license taxes. She said the County fire and EMS taxes and
County funding of the Human Relations Office were not expected to increase: She said
CRA reimbursements decreased from last year as the Annual Fund will no longer be
reimbursed for the Economic Development Office. She said the only money available from
the CRA this year is $50,000 earmarked for the Jolley Trolley. She said these funds have
been fairly steady and she estimates a 0% increase.
Commissioner Deegan questioned the funds from the County for the City to provide
fire services to unincorporated areas. Bob Lockwood, Administrative Support Manager in
the Fire Department said the Fire Department takes the City budget as approved by the
Commission and adds to it the Fire Department's debt service and insurance requirements.
This budget is presented to the County, which then determines the percentage they will
pay based on a comparison between the property value of incorporated Clearwater versus
the total property area served by the Fire District. The County reimbursement has been
running at 15.01 % of the Fire Department's budget.
Commissioner Deegan asked if the cost of running the City's Fire Department
increases, would a proportional increase from the County be anticipated. Mr. Lockwood
indicated this would be the case. He said a factor that could influence the percentage of
reimbursement is if the City annexed a large amount of property and collected fire taxes
directly, then the County reimbursement would decrease, Commissioner Deegan said the
proposed budget anticipates a 0% increase in County reimbursement and felt that would
only happen if the City had a 0% increase in its cost for running the Fire Department. Mr.
Lockwood 'said the proposed budget balances annexation with County reimbursement for a
0% increase. Commissioner Deegan stated he felt the Fire Department's budget would
need to be increased somewhat over the next three years.
Mayor Garvey asked what increase the Fire Department experienced over the past
three years. It was stated it had been within .01 % and .02% of the union's contract.
Based on Step increases for '94 and no other increases, the budget will increase by 1.8%.
Mayor Garvey said a 2% increase is comfortable and Ms. Deptula noted that 2% would
give the department no cost of living adjustment.
Ms. Wilson said there were some increases in non resident fees for use of Parks &
Recreation facilities. She estimated an across the board increase of 5% over the next
three years.
Ms. Wilson said library fees were estimated to be increased by 2% over the three
years. Ms. Rice said if the City joins the library Cooperative, it would lose some non-
resident fees but the fines and other things would stay. Commissioner Thomas asked if
the $37,000 of non-resident fees received would then come out of the budget and
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Commissioner Deegan said only a portion would because some non-residents who use City
libraries live in cities that don't belong to the Cooperative. Ms. Wilson said the 2%
increase would only affect each year by about $2,000.
. Ms. Wilson noted other fees are service charges for Central Permitting. She said
these funds have been quite variable. and there was a decrease in '92-'93. She said the
estimate for '93-'94 and beyond was fora 5% increase.
Ms. Wilson said interest earnings are hard to predict because of the economy. Ms.
Deptula said the balance in the City's savings account has increased and may offset any
decrease in the rates the City earns on its cash flow. She estimated an increase of 4°/ or
5%. Mayor Garvey remarked that as contingency fund dollars are used, interest earnings
would be negatively impacted. Ms. Deptula reported the General Fund was very healthy.
Commissioner Thomas reiterated that with interest rates flat, the predicted increase is
based strictly on an increase in the Fund Balance, Ms. Wilson suggested forecasting a 5%
increase.
Commissioner Deegan asked where the City was investing that money. Ms.
Deptula said the average rate the City earns today is 5.5% and said Ms. Weston, in the
Finance Division, invests in many different ,kinds of instruments. Ms. Deptula said every
penny is invested every night through a sweep of the City's bank accounts. The City
never has a penny not invested. Commissioner Deegan said he was happy to see the rate
the City was getting in comparison to low money market rates. Commissioner Thomas
said staff was doing well getting that return.
Ms. Wilson said other miscellaneous revenues include air park rental, vending
k4
machine commissions, the sale of cemetery lots and surplus equipment, and numerous
other small items. She said the City had not done well in this category over the past few
years. She said air park rental is the main category of income in this line item. She
estimated either a 1 % or 2% increase could be anticipated. Mayor Garvey asked if she
felt comfortable with .7% and Ms. Wilson explained the difference in the amount between
.7% and 1% was less than 51,000.
Ms. Wilson said Interfund Charges included administrative overhead costs charged
to the enterprise operations to cover the cost of the administrative offices of the General
Fund. She said this will increase based on how'the City holds the line on salary and
operating increases. She suggested a 3% increase would be a good estimate. Ms.
Deptula said she assumed department heads would hold the fine at a 3% increase in
expenses for the next year.
Ms. Wilson said. Charges for Services are the City's direct payments for General
Fund Services to proprietary operations for work the General Fund does for the Marina,
bridge, and similar operations. She said this fiscal year's decrease was because the City
passed the cost of Police Aides to the Parking Fund. She suggested a 3% increase be
budgeted.
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She explained the Stormwater Utility charges are charges to the Stormwater Utility
fund and include mostly personnel charges for draftsmen etc. related to doing stormwater
work. She said it decreased in the past but thinks it will stay steady and doesn't !
anticipate a need for additional personnel. She suggested a 3% increase be budgeted.
Interfund transfers are payments in lieu of taxes of 4 1/2% of prior year revenues
,from the water, sewer, gas, and solid waste funds. She said she did not.have an estimate
on this item at this time. Ms. Deptula suggested budgeting a 5% increase.
Ms. Wilson said Gas System Dividends were the same and based on half of the
City's prior year income. She said they estimated $1 million for '94-'95 but did not have
their final numbers. Commissioner Deegan asked if those numbers shouldn't be taken
from the gas system's long range plan. Ms. Deptula said Mr. Warrington had proposed to
fix the number at 01 million in out years instead of basing it on a percentage of his bottom
line.
Ms. Deptula, leading the discussion on the expense side of the budget, explained if
there was a 0% increase in salaries, they would still have to budget a 1.2% increase in
personnel costs based on the Step Plan that already exists in various union contracts. She
said she estimated overtime charges to increase at half that rate. She estimated pensions
to increase by .2%, and the fire pension, based an actuarial studies, to increase by 6.5%.
She said Social Security increases are based on increased salary and wages,
Mayor Garvey said she thought the, actuarial studies for the fire pension showed it
should be 8%. Mr. Lockwood said Trustees of the Fire Pension Fund recommended the
8%, based on the actuarial study. He said that amount may change because a new study
said it should be 6.5%.
Ms. Rice stated the Health Insurance Committee met and, after looking at previous
claims, agreed the recommended figure for health insurance for next year would be
$2,600 per person, representing an increase of 15%. The City had a bad year due to a
series of serious problems with all ages and all types of employee groups. She said the
City anticipated bidding Health Insurance in June. Ms. Deptula estimated a 1.2% increase
for workman's compensation and other fringe benefits to increase by 1 %.
Ms. Deptula said that under operating expenses, staff recommended a 1 % increase
in utilities followed by 3 112% in each of the out years. There will be no change to what
is contributed to outside agencies like social services and the trolley. She said the
insurance premium cost and liability claims are expected to increase by 5%. A 2%
increase is recommended on all other operating expenses. These expenses include all
materials, operating and office supplies, travel expenses, conventions, conferences,
memberships, subscriptions, etc..
.Ms. Deptula said under Internal Services, garage expenses are expected to increase
by 5% the first year and then 2% a year, which represents increases in the fleet and the
costs of personnel services, parts, and fuel. She said they would like to hold increases for
Computer Services and Building & Maintenance at 2%. Other Costs will be increased by
m1nCC01 c.94 1/18/94
39
10% across the board to recoup the expense of the radio system. In' the past, other
departments weren't charged the true cost of the system. Capital Expenditures will be
held to 2%.
Ms. Deptula reported if the City proceeded with the plan to finance a City Hall bond
issue for approximately $10 million, $950,000 needs to be programmed in on an annual
basis to Debt Service.
Planned expenditures for library books, tax increment financing, road millage,
building maintenance capital projects, and other capital projects are based on the adopted
five-year CPI. Commissioner Fitzgerald asked if library expenses would change if the City
joined the Cooperative. Ms. Deptula said all revenues and expenditures for books and
personnel would be treated like a grant and would not be reflected in this budget.
Ms. Deptula explained the summary indicated the City would be about $300,000
out of balance for '94-'95, based on the assumptions of, no raises, little increase in costs,
and fairly conservative revenue estimates. Mayor Garvey noted these figures didn't reflect
pending negotiations for union contracts. Ms. Rice said only Step increases were included.
Ms. Deptula noted at this point in past forecasts, the City was often $1 million out of
balance.
Ms. Deptula explained if the Commission wanted to recoup the difference with a
millage rate increase, the rate would have to be raised by 1.43% to 5.1892 from 5.1158.
Staff is not recommending this but was mentioning it as a way to balance the budget.
Ms. Deptula,said if salaries were increased by another 2.8% across the board, the budget
would be out of balance by almost $1.4 million which would require a 6.6% millage
increase.
Commissioner Deegan asked how the figures presented compared to projections
made in 1991. Ms. Wilson said she would provide that information.
Ms. Deptula pointed out these assumptions would Urnit all departments to
essentially the same budget they had last year. Mayor Garvey asked if staff would want
to present this to the Budget Advisory Committee. Ms. Deptula replied they had attended
this meeting but left. earlier. She said she wanted the Commission to examine this budget
before meeting with Dr. Graves and establishing priorities for next year's budget.
Commissioner Thomas asked'if the assumption for the bond issue for City Hall was
built into this budget and Ms. Deptula agreed. He noted there was no assumption included
for the Police Department. Ms. Deptula said a $5 million bond issue would incur about
$400,000 to $500,000 of additional debt but noted the City has other financing sources.
The Interim City Manager reported in the undesignated retained earnings of the
General Fund, there is $2.8 million available above and beyond the 10% General Fund
Reserve required by Commission policy. She compared these funds to a savings account,
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noting that if money is spent, it's gong. She suggested this fund not be used for recurring
expenses. In the past, it was used to build Countryside Library and other capital projects.
Ms. Deptula said other fund balances include funds returned to the City from the
sale of the Atrium Building. Commissioner Deegan asked from where those funds
originally came. Ms: Wilson said the purchase of that building was funded by $2.9 million
from the General Fund, $2 million from infrastructure taxes, and $1.2 million from
unallocated Special Development Fund Reserve. Commissioner Deegan asked if any of
these funds were restricted. Ms. Deptula explained the Infrastructure tax money and the
Special Development Fund reserve are restricted to projects by Commission policy. The
only unrestricted money.was the money that would go back to the General Fund should
the Commission choose to disperse the $7 million. She explained the Special, Development
Fund was an accumulation of interest earned on the nonrestricted portion of the monies
not yet spent.
Mayor Garvey asked why the interest doesn't remain in the account. Ms. Deptula
said the City prefers to put the interest in the Special Development Fund for the benefit of
all projects rather than restrict the monies.
She said the Highland project was being funded by the Penny for Pinellas at about
$7 million and since the Commission chose to reduce the project's scope, it was
determined that approximately $2.4 million would not be required. She said these funds
are restricted and suggested this might be an alternative funding source for the Police
Department instead of issuing bonds.
Ms. Deptula said the use of Development Impact Fees and Transportation Impact
Fees is restricted. She has asked Peter Yauch to research if the Cleveland Street project
could be funded from these fees. The use of Impact Fees is restricted to open spaces,
parks, recreation land,,and facilities. Land Acquisition Fees Reserved Account was
established years ago by Commission policy in which to accumulate money from the sale
of small parcels of property. The Property Maintenance fund is an accumulation of money
received from the Stone Buick lease. These funds were appropriated into the Annex
Property Acquisition Project which is no longer viable and can be used for whatever the
Commission chooses to do. Commissioner Thomas rioted funds available totaled about
$15 million.
Ms. Deptula reported upcoming projects include expenditures not covered by bonds
for City Hall, the new Police Department Facility, possible Maas Brothers building
renovation, and possible additional costs for the Sand Key Bridge. Commissioner Thomas
said the original plan to the DOT called for approximately $1.5 million for land acquisition
to build the bridge but now the land was costing more. Ms. Wilson reported $2 million
was budgeted as an interfund loan from the Central Insurance Fund to be paid back in four
or five years and the City was spending several hundred thousand dollars more. She said
these figures were included in the infrastructure Penny for Pinellas forecasting.
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Commissioner Thomas asked how much the City paid for the land to build the
bridge. -Mr. Baker explained the City was in negotiation with property owners. He
explained the City might spend about $1.5 million for the properties 4ess the award of
attorney and expert fees and absent a consideration, if any, for the Leverocks Restaurant
business. He said the City put up $1.3 million with the courts and has the Standridge
property in hand. He indicated the figures are less than had been mentioned as the
appraisal for the condemnation came in very close to the value provided in the City's
appraisal.
Commissioner Thomas asked for a worst case scenario for a new Police
Department building. Ms. Deptula said estimates were $7 million, Mr. Baker thought that
number a bit high and said construction should cost about $100 a square foot.
Commissioner Thomas said he didn't think a parking garage was necessary with the
availability of surrounding lands. It was agreed $5 to $7 million was a reasonable
estimate.
Ms. Deptula said the plan for downtown drainage was in a formative stage and the
project needs to go forward. The City will get grants and outside agencies to assist but
there still may be some commitment of City dollars required. Commissioner Deegan
questioned the availability of stormwater utility funds for this project. Ms. Deptula
indicated those funds are already obligated.
Commissioner Deegan questioned the funding of the Dunedin Pass project. Mr.
Baker said the City might spend as much as $400,000 if everything 'was done.
s Commissioner Deegan said this was only for phase one. It was stated the total project
might cost an additional $1 million.
Commissioner Thomas asked if all funds were presented. Ms. Deptula noted there
were gas and sewer funds but these are restricted. She said there were a few "pots" of
money left in projects but all significant balances had been shown. Commissioner Deegan
requested the list of projects be totalled before being distributed to the Commissioners.
Commissioner Thomas suggested all CIP projects be examined and prioritized. Ms.
Deptula said staff examines these several times a year.
Margaret Simmons, Assistant Finance Director, said there were two upcoming bond
issues: gas system expansion and City Hall. She said each was estimated at $10 million
to $12 million and the method of sale was important. She introduced Bonnie Weiss and
David Thorton with Raymond James, the City's financial managers, to bring forward
staff's recommendation of how the city should proceed with these sales.
Ms. Weiss explained there were three main methods of sales. She said the
competitive bid is used for simple bond issues for issuers who have good credit when
stable market conditions exist. With this type of bond issue, her company would have the
bonds rated, obtain the best bids for bond insurance, structure all aspects of the bond
issue prior to the sale, and advertise when bids would be accepted. She said under a
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typical competitive bid, all bond documents are circulated with brokerage firms and banks
` throughout the country. In an enhanced competitive bid, the circulation to mutual funds,
who are the end users of the bonds, would also be included.
Ms. Weiss said the advantage of the competitive bid was bidders had the
opportunity, within established guidelines, to determine on the day of sale the interest
rates and structure of the bond to best meet their criteria. 'rhe winning bidder will be
selected solely on the lowest interest cost to the City.
Commissioner Thomas asked if the City of Clearwater could stipulate the interest it
was willing to pay and sell their bonds to the general public. Ms. Weiss said Tallahassee
did that and called them Mini-bonds. She said cases like that were issued in
denominations smaller than the typical $5,000 minimum. Tallahassee found it was a good
PR move but suggested they might not have saved money because of high administrative
costs. Ms. Weiss said most who have done this, first do a small issue for PR, purposes
right before a larger issue because they often don't sell all their available bonds and must
make up the shortfall with a regular bond issue. She said if the City did this, it would run
the risk of not selling all of the bonds and would probably have to set the interest rate a
little high so all bonds were sold. Commissioner Deegan asked what other end investors
there were besides mutual funds and Ms. Weiss said insurance companies.
Ms. Weiss said another method was the negotiated sale. This method is typically
used when the bond issue is more complicated. Under a negotiated sale, the underwriter
who performs pre-sale marketing duties to determine the structure of the bonds, is
selected in advance. The underwriter who helps structure the call provisions, the maturity
length, etc. is paid a fee for performing these additional duties. Commissioner Deegan
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noted this amount was negotiable.
Mr. Thorton said the third way to do a bond issue was through direct private
placement. This method is for those with poor credit. He said his company would try to
locate one or two generally high yield funds that are selling based on high yields. These
funds take lower credits but the issuer must tailor its issue to the funds' desires. He noted
the City had good credit and would not need to use this method.
It is recommended the City use the enhanced competitive bid method. It was noted
one of the complications of going to mutual funds is that they usually only purchase
portions of bond issues. Mr. Thorton suggested when the City sends out the bid, it leave
customers as much latitude as possible.
Commissioner Thomas asked if, in the last 90 days, Mr. Thorton and Ms. Weiss
had done a bond deal like the one they described. Ms. Weiss said she didn't think anyone
in Florida had ever included end users in the bid distribution. Ms. Deptula noted staff
thought this was innovative and would like to try it. She said it was.a good chance for
purchasers to avoid the middle man and deal directly with the City.
min0001 c.94
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Commissioner Thomas asked what the interest rate was on a bond issue in the last
' 90 days. Mr. Thorton said a 20 year bond went for about 5.1 %. Commissioner Thomas ,
asked what percentage commission cost would be added. Mr. Thorton. estimated the final
cost would be 5.35%. Commissioner Thomas asked how much lower the cost would be if
an end user bought the issue. Ms. Weiss speculated the discount would not be as
dramatic as dipping to 5.1 % because bids are very close. E
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Commissioner Thomas -asked how much savings .2% represented. Mr. Thorton
said the best the City could hope for was to get rid of the discount portion. He said .2%
would be $16,672. Commissioner Thomas noted that .2% would then be worth about
5360,000 on each $10 million issue.
M5. Deptula said if the Commission would allow staff to proceed and let Raymond
James' team.start planning, she thought this would accommodate issues brought up by
the Commission last time bonds were sold. It was the consensus of the Commission to
try the enhanced competitive bid.
`. The meeting adjourned at 6:20 p.m.
ommis ion
ATTEST: City Clerk
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