09/15/1997 (2)
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WORKSESSION
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City Commis'sion Worksession Minutes
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CITY COMMISSION WORK SESSION
CITY OF CLEARWATER
September 15, 1997
Present:
Rita Garvey
J. B. Johnson
Robert Clark
Ed Hooper
Karen Seal
Michael J. Roberto
Kathy S. Rice
Bob Keller
Pamela K. Akin
Cynthia E. Goudeau
Patricia O. Sullivan
Mayor/Commissioner
Vice-Mayor/Commissioner
, Commissioner
Commissioner
Commissioner
City Manager
Deputy City Manager
Assistant City Manager
City Attorney
City Clerk
Board Reporter
, The meeting was called to order at 9:00 a.m. at City Hall.
Service Award~
Seven service awards were presented to City employees.
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The Commission recessed from 9:06 to 10:27 a.m. to meet in attorney/client
session regarding Anne-Marie Cheroke Lindsey as guardian of Paul W. Gilfoyle versus the
City and from 10:28 to 10:56 a.m. to meet as the eRA (Community Redevelopment
Agency).
FN FINANCE
Purcha~e of Drooertv. casualty. liabilitv. workers' comDensation. & flood insurance
cov~rage for FY 1997/97, not to exceed $900,000
City Administration, through the Risk Management Division of the Finance
Department, recommends the purchase of insurance coverage for FY (fiscal year)
199 7/9B: 1) Excess Property: a) Layer 1 - $10-million - Westchester Fire - $169,200
premium; b} Layar 2 - $15.million - Royal Surplus - $1 62.000 premium; c) Layer 3 - N/A;
and d) laver 4 - $45-million - USF&G - $55,000 premium; 2) Miscellaneous Coverage: a)
Clearwater Pass Bridge - Royal Surplus - $45,000 premium; b) Crime & Dishonesty -
Hartford - $5.439 premium; c) Boiler & Machinery - Kemper - $5,894 premium; d) Marina
Operators ~ Hartford - $12,850 premium; and e) Underground Fuel Tank Liability - Comm.
& Ind. - $11,914 premium; 3) Insured Risk - Flood Insurance: a) Civic Center/Library -
Bankers' - $4,150 premium; b) Waste Water Treatment Plant on Gulf-to-Bay Boulevard -
Bankers- $2,591 premium; c) Clearwater Beach Recreation Complex - Bankers - $2,839
premium; d) Marina Offices - Bankers - $3.982 premium; e) Fire Station on Belcher Road -
Bankers - $4,703 premium; f) Fire Station on Mandalay Avenue - Bankers - $2,497; g)
. Clearwater Beach Police Station - Bankers - $692 premium; h) Waste Water Treatment
Plant on Harbor Drive - Bankers - $449 premium; and I) Clearwater Sailing Center -
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In response to a question, Fina:1ce Director Margie Simmons indicated May 5 is the
anniversary date of the original contract. When Mr. Thorton left, Raymond James had no
one qualified to replace him. Terms of the First Union contract are the same as the
Raymond James' contract.
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Bankers ~. $690 premium; and 4) Insured Risks ~ Ranger ~ $266,494 premium for $5-million
coverage, $500,000 deductible: a) Excess Auto; b) Excess General Liability; c) Excess
Public Officials; d) Excess Police Professional; and e) Excess Workers Compensation
(statutory coverage only).
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In response to a question regarding Excess Property, Risk Manager Leo Schrader
said only 3 layers of coverage currently are available. Hartford Insurance covers excess
property. A diminished level of coverage is not proposed. A new policy covers
replacement of Clearwater Pass Bridge. In response to a question, Mr. Schrader said
Accordia's premium covers many items. Staff was commended for this proposal. In
response to a question, Mr. Schrader said the maximum flood insurance coverage available
per building is $500,000.
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Aareement with First Union CaDital Markets Coro. for City's Financial Advisor
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On May 5, 1997, Raymond James & Associates signed a 3-year contract to be the
City's financial advisor offering services which included assisting the City in investigating
and obtaining capital financing. In July 1997, David Thorton, the City's main service
provider at Raymond James, accepted employment with First Union Capital Markets
Corporation. Discussions with Raymond James and First Union regarding future service
determined Mr. Thorton's knowledge of the City and its current debt transactions requires
terminating the Raymond James contract and entering into a new contract with First
Union. All parties have agreed.
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On July 23, 1997, the City and First Union entered into an agreement for an
amount not to exceed $25,000. If the current Gas System debt transactions are
completed, compensation may exceed $25,000 and require contract approval by the
Commission. This contract is under the same terms and compensation as the contract
approved with Raymond James. The City will issue a RFP (Request For Proposal) for
financial advisory firms and select a firm prior to the May 5, 1998, expiration of this First
Union contract. Fees paid to First Union are $10,000 plus $0.75/$1,000 per amount of
bonds issued and $1 SO/hour for non-bond related services.
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Banking Services Anreement with Barnett Bank, 3 years commencing 10/01/97, estimated
$90,000 annually
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In reply to a solicitation for proposals, the City received 4 bids: 1) Barnett Bank; 2)
Sun Trust Bank; 3) First of America Bank; and 4) Intuition Systems, Inc. Two banks that
did not bid indicated they do not offer services which meet City needs or could not
compete with Barnett Bank's rates.
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GS GENERAL SERVICES
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The selection committee scored Barnett Bank highest. The City has been pleased
with the bank's service; all problems are quickly and satisfactorily resolved. The City will
use new technologies to reduce some banking fees. Contract expenses are charged to a
non-budget expense code In the Consolidated Cash Fund. Expenses are deducted from
investment earnings prior to the allocation of earnings to the participating funds. Barnett
Bank will provide checking accounts, security safekeeping of City investments, coin
services, utility payment processing services, overnight investing of account balances, and
other services.
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In response to a question, Cash and Investments Manager Steve Moskun indicated
the contract includes a successor clause. The bank's services are used at City discretion.
The City has used Barnett Bank since 1976. In response to a question, Mr. Moskun said
interest rates are based on 5-year treasuries.
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Contract for Darts. services. & hardware sUDDlles for City vehicles & eauiernent. Anderson
Auto Parts. Inc., 09/22/97 -09/21/99, with option to renew for 3 additional 1-year periods
upon mutual consent, at 2-year estimated cost not to exceed $1,410,000 '
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On May 30, 1997, the City solicited proposals for an on-site parts facility at the
General Services Complex, Fleet Maintenance Division. The RFP required: 1) parts
operation staff during Fleet operating hours; 2) after-hours parts support as necessary; 3)
daily parts support; 4) services and hardware supplies for the City's approximate 1,350
vehicles; and 5) support the City's hurricane recovery and emergency operations.
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On July 7, 1997, the City received 3 proposals: 1) Anderson Auto Parts -
Clearwater; 2) Fleet Products -Tampa; and 3) Tropical, Inc. - Clearwater. Proposals were
rated for professional experience, availability of experienced staff, and pricing. Anderson
Auto Parts has a superior level of experience, immediate availability of a qualified staff,
and can provide the required services for an estimated $670,000 for the first year. Fleet
Products' proposal is estimated at $747,500 per year. Tropical's proposal did not comply
with minimum proposal requirements and was rejected. Anderson Auto Parts has 2 stores
within 5 miles of the Fleet Maintenance facility and a Pasco County store. Anderson has
agreed to purchase the City's parts inventory at 100% of its current value, and will provide
after-hours support and brake servicing equipment at no additional cost.
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In response to a question, Controller Fred Belzel said staff had done a cost analysis
of this need. The City has been outsourcing this service for many years. The City's
current parts inventory is approximately $35,000. In response to a question, Mr. Belzel
said the vendor's service includes maintaining an adequate parts inventory.
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Addition of MSB fMunicioal Services Buildina) to custodial service contract with Trianale
Maintenance Services, 08/01/97 -07/31/98, adding $45,340 increasing total to $111,160
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Bids were solicited and a contract was awarded to Triangle Maintenance for
custodial services at 12 City facilities, not including the MSB (Municipal Services Building).
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EN ENGINEERING
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Respect of Florida, a State contract agency, cleaned the MSB for a 4-month trial period.
Continuing Respect's services is estimated to cost $20,499 more than Triangle for the
contract's length. Triangle Maintenance's agreement provides adding facilities during the
contract period.
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In response to a question, Mr. Belzel said Triangle's level of service has been
satisfactory. Funds for this service have been budgeted. In response to a question,
Deputy City Manager Kathy Rice said Triangle has been instructed to turn off lights.
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Increase existina contract with Dravo Lime Comoanv for aulcklime for Water Pollution
Control Division, by estimated $442,080, for total estimated $884,160
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The City uses quicklime at its biosolids handling facility to process sludge generated
by the City's AWT (Advance Wastewater Treatment) Facilities. The conservative estimate
for the 3-year contract was based on less than 1-year of full-time operation. Additionally,
organic loading at the 3 treatment plants has increased, producing an increased quantity of
sludge requiring additional lime for processing. The vendor has agreed to hold the original
price until the end of the contract.
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In response to a question, WPC Superintendent Joe Reckenwald said the cost
increase is due to the underestimation of actual need. In response to a question, Ms. Rice
said the rate study will consider ways to recover this cost. In response to a question, Mr.
Reckenwald said the City of Safety Harbor is charged a percentage of the Northwest AWT
Plant's total operation costs based on Safety Harbor's percentage of usage. Staff will
provide additional information regarding this agreement.
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CM ADMINISTRATION
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CooDerative Aareement . FDCA. Coastal Management Proaram. for develoDment of
Clearwater Harborwalk proiect, total cost $100,000 of which City share for this phase
shall not exceed $50,000
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Since its inclusion in the Clearwater Beach Blue Ribbon Task Force Report in 1 991 ,
the Harborwalk Project has been a component of the Clearwater beach strategic
development plan to support economic development efforts on the island's eastern edge,
North of the Memorial Causeway. Project suggestions include: 1) a linear shoreline
boardwalk; 2) new marina facilities; 3) commercial docking and seafood processing; and 4)
retail stores. Improvements are intended to promote the area as a liworking waterfront"
and permit increased public access to Clearwater Harbor.
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In September 1996, Clearwater applied to FDCA (Florida Department of Community
Affairs), Coastal Management Program, for funding. The project was estimated to cost
$100,000, with the local sponsor responsible for $50,000. Staff recommends a
contractor develop a liworking waterfront" plan consistent with the area's environmental
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The only amendment to the Water and Sewer Fund reflects the $1,326,600
appropriation of unappropriated retained earnings to the capital project, Reclaimed Water
Distribution System, approved by the Commission on June 19, 1997. Third Quarter
amendments to the Gas Fund decrease revenues by $249,170 to reflect changes in
anticipated revenues under several categories. Amended revenues are 1 % less than
projected. Gas Fund expenditures reflect a net reduction of $451,860, primarily due to a
decrease in debt service caused by unanticipated delays in the issuance of bonds. These
savings will more than offset any decrease in operating revenues.
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and economic development needs. The plan also will serve as a feasibility study for a
Harborwalk Project and be incorporated into beach strategic planning.
Additional State planning and construction grants may be available upon completion
of the feasibility portion of the project. The DCA has provided the City with a cooperative
agreement with attachments for endorsements.
Concern was expressed the proposed study is too expensive. Assistant City
Manager Bob Keller said the feasibility study will be a detailed and complex part of the
overall beach development plan. The grant expires on June 30, 1998. In response to a
Question, Ms. Rice said the $50,000 City match would come from development impact
fees. In response to a Question, Central Permitting Director Scott Shuford said the
proposed seafood processing would be no larger than Frenchy's current operation. He said
a feasibility study regarding a Harborwalk and related environmental issues had not been
done previously. The City Manager said the study will tie in with the current review of the
entire beach community.
FY 1996/97 Third Quarter Review
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At 3ni quarter, additional revenues to the General Fund are recognized from ad
valorem taxes. Third Quarter amendments to expenditures reflect a $500,000 transfer of
unappropriated retained earnings of the General Fund to the Special Program project
supporting General Fund retirement payouts. Revenues and savings in several operating
departments and capital projects provide $107,500 for the 3'd year of contract funding for
Ervin's All-American Youth Club for their FY (fiscal year) 1997/98, $200,000 to establish
a capital project for outside review of City codes, and $130,000 to establish a project to
produce and distribute a quarterly City newsletter. With approval of these amendments,
on October 1, 1997, Unappropriated Retained Earnings of the General Fund will be
approximately $7,646,350, approximately 10.5% of the proposed General Fund operating
budget for FY 1997/98, and within the City Commission's 10% reserve policy.
Third Quarter amendments to the Solid Waste Fund reflect a $299,000 decrease in
collection charges for commercial operations and an offsetting decrease in dump fee
'expenditures. Third quarter amendments to the Recycling Fund reflect a $35,000
decrease in revenues from the sale of recyclables and an offsetting decrease in inventory
purchases. Budget amendments to the Stormwater Fund include a $ 7 ,000 appropriation
to support City matching funds for the Sustainable Challenge Grant. The only amendment
to Harborview Center operations. is the $24,510 appropriation In retained earnings
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Concern was expressed Unappropriated Retained Earnings of the General Fund have
been reduced to 10.5%, barely above the City Commission's 10% reserve policy. Ms.
Rice said staff will come back with a report regarding other city's policies and a staff
recommendation. The City Manager said cities create reserves for reasons that can
change over time. He recommended revisiting this issue regularly and defining those
reasons. It was noted a 10% reserve is maintained in case of a disaster. A request was
made for an executive summary of this issue along with copies of minutes covering related
discussions.
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(borrowing from the cash pool) for debt payment on the Boston Concession's loan which
was not Included in the Harborvlow Center Fund's original budget. The only amendment to
the Administrative Services Fund reflects the appropriation of and transfer of retained
earnings to the Enterprise Network, as approved by the Commission on September 4,
1997.
Amendments to the Capital Improvement Fund total a $4,473,970 net increase.
Significant projects previously approved by the Commission include $2,412,000 for
Reclaimed Water Distribution, $241,000 for the Municipal Services Complex, and
$534,227 for the Sand Key Power Line project. Projects not previously approved include a
$90,000 project funded from Police Department operating budget savings for Police Aides
for FY 1997/98. Beautification of Gulf-to-Bay Boulevard will be funded with $694,000 of
unappropriated Special Development Fund revenues and General Fund savings. A project,
funded by $150,000 of unappropriated Special Development Fund revenues, was
established to fund Economic Development studies. To meet legal guidelines, a separate
fund was established to monitor annual SHIP (State Housing Initiatives Program) proceeds
at 3rd quarter. A $40,000 Special Program project was established to start a MPA
(Masters of Public Administration) internship program.
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In response to a question, the City Manager said outside review of City codes will
provide a more comprehensive analysis than staff can accomplish. The goal is to present
an extensive overhaul of the code within 6 months. Commission input will be requested.
In response to a question, Budget Director Tina Wilson said this is the last year of the
Ervin's All-American Youth 'Club contract. This item is not included in the City's FY
1997/98 budget. In response to a question, Ms. Wilson will review the $24,510 debt
, payment on the Boston Concession's loan and report on the level of unappropriated
earnings as of October 1, 1996.
In response to a question regarding the Sand Key Power Line project, Ms. Wilson
said the fund should have been amended when it was approved in October 1996. It has
remained on the book as a bookkeeping entry. She indicated funding for the production
and distribution of a City newsletter was identified from savings throughout the General
Fund. Staff will bring back additional information regarding the newsletter.
City Manager Ve~bal Reports
Set Strategic Plannina Soecial Work Session
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Other Commission Action
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A Strategic Planning Special Work Session was scheduled from 9:00 8.m. to 1 :00
p.m., on October 6,1997. The location will be announced.
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Commissioner Seel said Clearwater's per capita dabt was rated lowest In a recent
article In Tampa Bay Business regarding local governments. She requested an update that
includes the Gas bonds.
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Commissioner See I questioned when the City will begin developing its legislative
package. Tho City Clerk said a meeting with the City's lobbyist will be scheduled this
month.
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, Commissioner Seel said an article distributed by Organizational and Employes
Development Director Pam Skyrme regarding Portland, Oregon, was interesting.
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Commissioner Seel reported she had picked up a Harborview Center menu when
she was in Tampa.
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Commissioner Johnson said the article on the Sister City program was interesting.
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Commissioner Johnson questioned if a tunnel had been considered for the US 19N
and Drew Street intersection. The City Manager estimated a tunnel would cost 4 times
more than an overpass to construct. It was noted tunnels are closed to traffic when
problems occur related to the transportation of hazardous materials.
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Commissioner Johnson recommended addressing parking problems at the Municipal
Services Complex. The issue will be addressed at the September 29, 1997, Work
Session.
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Commissioner Johnson suggested the City consider purchasing the St. Petersburg
Times property near the Municipal Services Complex. The City Manager recommended
addressing that property during discussion of plans for the current City Hall building.
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Commissioner Johnson requested all projects inherited from previous City
Commissions be completed by January 1 998. The City Manager said that is a goal. He
noted the need for an overall analysis of Municipal Services Complex area parking needs.
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Commissioner Johnson questioned staff's response to Vicki Shull's request for a
sidewalk. Engineering is addressing that request.
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Commissioner Johnson referred to a letter regarding skaters and noted the need to
educate the public regarding this issue.
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Commissioner Johnson said complaints included in the August 30. 1997, letter
from a St. Louis visitor are embarrassing.
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mws09b97
7
09/15/97
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":M~vor G'arvev quesdonedif the City could annex any property under the PPC's
, (Pinollas Planning Council) recommendations regarding enclave annexation. The City
Manager,' sal,d staffls analyzing the report. ' , , , ,
,', Mavor Garvev reported the Taste of Clearwater Is :scheduled at the Harborview
Cente,' on September 26, ~ 997.
Adjourn
!he meeting adjourned, at 11: 60 8.m.
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