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04/16/1996 (2) Present: , Rita Garvey J. B. 'Johnson Robert Clark Ed Hooper Karen Seel Elizabeth M. Deptula Kathy S. Rice William C. Baker Pamela K. Akin Cynthia E. Goudeau Mayor/Commissioner Vice.Mayor/Commissioner (arrived 11 :25 a.m.) Commissioner Commissioner Commissioner City Manager Deputy City Manager Assistant City Manager City Attorney City Clerk -- CITY COMMISSION SPECIAL WORKSESSION CITY OF CLEARWATER April 16, 1 996 The meeting was called to order at the Adler Room, Main Library at 10:36 a.m. ITEM #2 - Community Redevelopment Agency (CRA) a) continued existence, structure & staffing b) eRA Plan e~~ <:~:, Deputy City Manager Kathy Rice indicated data has been gathered in order to analyze the impression that property values are going down. She stated the percentage of change was considered with one time events taking properties off the tax roll discounted. There is still a downward trend in the property values. Alan ferri, Economic Development Director, indicated there are several concepts at play regarding the property values. He stated there are several old car lots in the downtown area which are functionally obsolete. This has decreased the probable value. He stated the need for a Phase 1 and Phase 2 environmental assessment of these properties also further depressed their value for redevelopment. On site storm water storage requirements are also impacting the value of properties. Ms. Rice indicated other considerations are ADA and Fire Standard requirements. In response to a question, Mr. Ferri indicated all downtowns have the same problem, more or less. Ms. Rice indicated the real issues are the need to understand the CRA's purpose and what public investments need to be made. v mwssp04b.96 1 04/16/96 I ! I i I I f f I ( I I \ ) Mr. Ferri reported on the Brownfield application which will determine potential contamination in Phase 1 and Phase 2 will determine if there is contamination and its extent. He stated if the downtown area is identified as a brownfield, the City can come up with assessments of the contamination and how to address it. This will allow a wholesale clean-up of the area. The surrounding neighborhoods also have to be taken into consideration. This will allow an evaluation of where public investment is needed. .. Ms. Rice Indicated data has been collected regarding how CRAs are handled in other cities and this information will be sent to the Commission. She stated at this point a comparison has not been able to be made. Scott Shuford, Central Permitting Director, indicated the decision tho Commission needs to make is where to spend the limited funds for projects. He stated there is not alot of money coming in and there Is probably not going to be a rapid increase in that funding. Ms. Rice further reported that the goals for the area have been the same for a number of years. She stated the downtown is not on a major highway and has a small town quality of life appearance. She emphasized amenities will not make the difference in the redevelopment of downtown. She stated It has to be determined projects the Commission or CRA truly wants to do and in what order. In response to a question regarding parking, the City Manager Indicated there will soon be a weekend during the Fun N Sun festivities where there are also major events at the Harborview Center, the Calvary Baptist Church and a parade. She stated this will help identify parking problems. o Ms. Rice indicated other projects the Commission may want to consider are a waterfront park, a hotel on Osceola Avenue, and the bluff being a mixed use block. The Mayor questioned how the Commission felt regarding moving the Main library. The City Manager reported there is no funding for a new library at this time, however, the current facility is not suitable for long range use. She reported funding for this may have to come from bonding or referendum. t~ Ms. Rice also reported there are issues regarding the replacement of Memorial Causeway Bridge and traffic circulation. In response to a question, the City Attorney indicated a referendum would be required for the development of a waterfront park. Discussion ensued regarding whether the Commission was committed to this direction. Several members stated In theory they believed in it, however, they had questions regarding the financial aspects. Concerns were raised regarding the possibility of the downtown lake and it was indicated more information was needed regarding the feasibility and whether there would be a pay-off from this project. Commissioner Clark indicated he felt the right first step was to make the brownfleld application. He expressed concerns regarding the Harborview Center and having another parking problem situation. Ms. Rice indicated there was not enough data at this time to say the Harborview Center should be expanded. She said there was enough data to say there Is a parking problem. Further discussion ensued regarding the Bayfront and the impact of the design of the new Memorial Causeway Bridge would have. It was indicated the design ~f the bridge may be contingent on how committed the Commission is to a waterfront park. Questions were raised regarding the proposed Marina. Mr. Shuford Indicated this would be a catalyst project that would generate other activities. 'J mwssp04b.96 2 04/16/96 Mayor Garvey expressed concerns she did not feel that one individual would be enough. Commissioner Clark thought support staff might be able to come from the City Manager's Office. The City Manager stated she believed a midMlevel person would be needed to liaison with "people on the street". She felt clerical support could be provided through her department. Commissioner See I suggested the DDB enter into an interlocal agreement with the City to provide that mid-level staffing. Concerns were expressed regarding a non-city employee handling this effort. Opinions were expressed that the mid- level person would also need to be a city employee. ~ Ms. Rice reported discretionary funds for the CRA are becoming less and less. She stated the question regarding combining the CRA and the Downtown Development Board (DDB) is being researched but at this time, staff is unable to say if this is possible without significant legislative action. Mayor Garvey expressed a concern that an executive director of the CRA and a secretary would not be enough. There would be a need to work with the DDS. She thought it would be helpful to have budget meetings together. Ms. Rice emphasized the City is also a player in this and that Scott Shuford and Alan Ferri are very much involved. She stated this will need teamwork and the goal should be for the DDS, the CRA, and the City to agree regarding the direction in which the eRA or the Economic Development effort is to go. Further discussion ensued regarding the need for the CRA and the DDS to work together and the fact that the City has interests outside of the downtown area. Concerns were expressed regarding legislative change causing an undue delay in hiring the Economic Development person. Commissioner Clark suggested the investigation regarding the merger continue but not at the expense of things not being done for the CRA. It was questioned what this meant and Commissioner Clark indicated he felt the Executive Director for the CRA should be hired. .", e~' T::J";,, Ms. Rice questioned what traits the Commission would be looking for. Commissioner Clark stated he would recommend Clearwater hire an Assistant City Manager for Economic Development. He felt this level person would be needed in order to get things done in the community. He felt this person being a City employee, instead of a CRA employee, would eliminate the problems that occurred with the previous CRA director. He stated current funding may not be enough to get the right kind of person needed for this job. He stated redevelopment is the only way to increase the tax base of the City. Commissioner Seel expressed concerns regarding the Sunshine Law and the desire of some corporations to keep negotiations private. The City Manager felt there would be mechanisms that could be put in place to maintain some confidentiality. She felt the team for economic development would also be supported by Scott Shuford and Alan Ferri and other city staff members. She stated the reason Ms. Rice has been successful as the Interim CRA Director is that she is putting a team together. f i I I t ,:...; mwssp04b.96 3 04/16/96 Further discussion ensued regarding the need to meet with the DDS to discuss these proposals. It was the consensus of the Commission to officially request the DDS meet with the City/CRA at the beginning of the next DDS meeting on May 1 st. ~ Commissioner Johnson indicated he had been concerned regarding the previous one man operation of the CRA. He stated he is the one who questioned the need for the CRA to continue. He stated there is a need to have cooperation and the team needs to work together to bring about what is best for Clearwater. He stated he Is concerned regarding the apparent substantial debt the CRA may have. Ms. Rice indicated there is no debt but there is a potential liability. In response to a question, the City Manager indicated the income for the CRA is $345,000 a year and it has gone down. Further discussion ensued regarding the proposal to merge the DDS and the CRA or to have these organizations share staff. Concerns were raised this may delay the hiring of the Executive Director. A question was raised regarding whether this could be solved in the short term by an interlocal agreement and that the organizations agree on their goals. It was suggested there be a meeting between with the DDS to see if they would support the direction in which the Commission is proposing. C:'~:J ,,' Mayor Garvey expressed concerns regarding committing to this being an Assistant City Manager level position. The City Manager agreed this person needed to be someone with authority, perhaps a step above a department director. Ms. Rice suggested the position be advertised and a meeting be set with the DDS as soon as possible. Com'missioner Clark suggested the selection criteria be developed in concert with the DDS and other people who would be dealing with the Economic Development Person. It was also suggested this group could help in narrowing down the candidates to the top two or three. The City Manager cautioned that if this person will be reporting to the City Manager, that Charter lines not be crossed. Commissioner Hooper questioned if the worst result of the lawsuit is that the CRA would be out of business. It was indicated there were all kinds of potential impacts of this. The City Attorney indicated a closed session will be requested within the next month or two to discuss these issues. Commissioner Seel pointed out information she had gotten indicated this type of person is paid $75,000 in Jacksonville to $180,000 in Miami. The City Manager stated in the advertisement there are some people that will not apply for the job if the base is at $70,000 versus $90,000. Concerns were expressed if the lawsuit regarding the parking garage depletes the eRA funding, the City might be totally responsible for the salary. It was suggested the CRA may be able to reimburse the City in the future. The City Manager indicated the City paid the Economic Development Director's salary previously and was reimbursed by the CRA. ,,-) mwssp04b.96 4 04/16/96 ! I I I I ! i i i , \ I . ~ The City Manager stated there was a need for alot of education on economic development. She recommended a session be held In which people from outside the area would be brought in to help with this effort. She stated local individuals would also be involved. A question was raised regarding how to coordinate the Economic Development Department. The City Manager requested this be thought about to see how the pieces would fit together. She emphasized the need for a team approach. Commissioner Seel suggested a Task Force to help develop the selection criteria for the economic development individual. Commissioner Clark questioned in the Economic Development Symposium or Educational Session that was proposed, whether people from the development community would be involved. The City Manager indicated they would be as well as elected officials from other cities. A questi,on was raised regarding whether the Commission should visit other sites. The City Manager suggested the education process be started then site visits could be made and additional education provided. She emphasized at some point, staff will need to request direction for specific projects. r:'~"~ .";'~,~' The meeting recessed from 12:07 p.m. to 12: 13 p.m. ITEM #3 - Budget Tina Wilson, Budget Director reviewed Fiscal Indicators and reported overall the City's condition is very good. Regarding the number of employees, the City Manager reported that while there has been a net total increase of 57 positions, programs requiring 180 additional employees have been implemented. This results in an actual cut in employees of 130. Regarding the unappropriated retained earnings, the City is in good shape with a current level of 14% of the General Fund budget. A question was raised regarding why there was a dip in this category in 1990-91. Staff will report. Regarding Pier 60, Ms. Wilson indicated it is in a negative position with not enough revenue to pay its expenses. It was questioned what the financials on Pier 60 would look , like if it were not classified as an enterprise fund. Ms. Wilson reviewed the three year financial forecast indicating it has been a good tool for projections for the past five years. She stated, in summary, for the 1996~97 fiscal year, there currently shows a $1 million deficit; for 97-98 a $1.2 m111ion deficit; for 98w99 a () mwssp04b.96 5 04/16/96 ) I , I i I I 1 ') 1'-, $1 .8 million deficit. Staff has looked at other things that might be needed which have added approximately $1 million. The departments have been tasked with coming up with ways to close the gap. The City Manager reported if the gap is closed through a millage increase, this will be a 5 % increase. Departments have been asked to Jook for transparent cuts. She stated having this large a deficit at this point is not unusual and she expects to hold the same millage rate. Commissioner Hooper questioned if the projections included 100% employee occupancy. The City Manager indicated projections include a 2 % salary savings. A question was raised regarding whether tourism dollars will be generated to offset the increased expenditures projected for the tourism department. The City Manager indicated the City does not directly receive the bed tax funds. A question was raised regarding whether with the increases projected, the City could stay at its current millage rate. The City Manager again reiterated that is staff's expectation. Commissioner Hooper indicated he has reviewed financial forecasts in the past and there is almost always a deficit showing at this point in the budget process. (:~) ',.1__' The City Manager indicated her plan is to bring to the Commission a balanced budget with a supplement showing those things that could not be done. This will allow the Commission to see if they wish to add any of the programs by increasing the millage rate. Commissioner Johnson commented that the property taxes do not even cover the budget of the Police Department. It was indicated this is not unique to Clearwater. The City Manager indicated she needs direction regarding the goals for the budget. She stated her request would be that the 3 in the current budget for improving public safety, economic development and tourism not be changed, however, the Commission may wish to add 1 or 2 more. It was suggested goals be discussed at the worksession on April 29th. Consensus was to do this. The City Manager indicated there was also a need to set dates for discussion of the CfP budgets. Consensus was to set meetings for May 20 & 21, from 9:30 a.m. to 3:30 p.m. It was also the consensus that lunch be brought in. :~ mwssp04b.96 6 04/16/96 I ! i I I I r \ I I I ! I l I I t i i ITEM itA - Continuation of Review of Commission Policies was not discussed. The meeting adjourned at 12:58 p.m.