04/14/2008CITY COUNCIL WORKSESSION MINUTES
CITY OF CLEARWATER
April 14, 2008
Present: Frank Hibbard
John Doran
George N. Cretekos
Paul Gibson
Absent:
Also present:
Carlen Petersen
William B. Horne II
Jill S. Silverboard
Rod Irwin
Pamela K. Akin
Cynthia E. Goudeau
Brenda Moses
Mayor
Vice-Mayor
Councilmember
Councilmember
Councilmember
City Manager
Assistant City Manager
Assistant City Manager
City Attorney
City Clerk
Board Reporter
The Mayor called the meeting to order at 1:30 p.m. at City Hall, following the Community
Redevelopment Agency meeting.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
Presentations
Service Awards
Four service awards were presented to City employees.
Michelle Sheldon of the Human Resources Department was presented the April 2008
Employee of the Month award.
The City Council recessed from 1:38 to 2:30 p.m. to meet as the Community
Redevelopment Agency and the Pension Trustees.
Presentation of the City's Annual Financial Report
The City's external auditor, James Burdick of Cherry, Bekaert & Holland, presented the
audit of the City's 2007 annual financial report.
Finance Director Margie Simmons said few grant dollars are spent on moveable
equipment. Information Technology Director Dan Mayer said the City's document listing
authority was not in the auditor-preferred form. Staff will address this issue next year.
Presentation of GFOA Certificate of Achievement for Excellence in Financial Reporting - 2006
Annual Financial Report
The Government Finance Officers Association of the United States and Canada (GFOA)
has a certificate program (established in 1945), which is designed to recognize and encourage
excellence in financial reporting by state and local governments. The City of Clearwater has
Council Work Session 2008-04-14
earned the Certificate of Achievement for Excellence in Financial Reporting for its 2006 annual
Financial Report. This is the 28th year that the City has received this prestigious award.
In order to earn the Certificate of Achievement, the City of Clearwater's Comprehensive
Annual Financial Report had to meet the high standards of the certificate program. By meeting
the standards of the program, the Financial Report is a more useful and understandable tool for
Clearwater's citizens, the media, and others who have a vital interest in the government. The
governing body and taxpayers of Clearwater should take special pride in the fact that their
annual financial reporting document has been judged to be one of the best in its class. The
award gives bond insurers and rating agency comfort and thus insures that the City receives low
interest rates on it's borrowing.
This award reflects the commitment by many individuals to the highest standards of
financial reporting. It reflects the endorsement and support of elected and appointed officials,
and is a tribute to their foresight and leadership. This award also reflects the expertise, high
degree of professionalism, and many hours of hard work by the staff involved in preparing this
annual financial report. Achievement of this award is a tribute to all of them.
The City's "CAFR" team works diligently each year to complete our financial report. This
team is composed of members of the City's Finance and Budget departments as well as
financial staff from other City departments. The City takes financial responsibility and
accountability very seriously, and therefore, we have placed individuals with financial expertise
in various departments around the City. Many of these individuals are licensed CPA's. Jay
Ravins, Assistant Finance Director for the City of Clearwater has the overall responsibility for
financial reporting for the City. The City's external auditors, Cherry Bekeart and Holland
provided assistance in obtaining this award.
Ms. Simmons recognized staff for their work and presented the award to Mr. Ravins.
Gas System
Terminate the PGP Gas Supply Agreement and its obligations previously adopted under
Resolution 04-34 and adopt Resolution 08-05.
On February 15, 2008, the Florida Gas Utility (FGU) Executive Committee authorized
the reassignment of FGU's share in the Public Gas Partner (PGP) Pool 1, termination of FGU's
PGP Project, and subsequent withdrawal by FGU from PGP. The City of Clearwater originally
approved the FGU's PGP Gas Supply Agreement 1 by Resolution 04-34 on December 2, 2004,
to include the proposed form of the Natural Gas Production Sharing Agreement for Gas Supply
Pool 1.
Several factors led to FGU's decision to terminate the PGP project, but the primary
factor was that the level of effort and workload associated with the PGP gas, especially once
permanent financing is required and physical delivery of the gas begins, will make the project
uneconomical for the volumes available to FGU, when compared to other potential alternatives
for discounted gas supplies. The other non-FGU partners in PGP are still desirous of amending
the Production Sharing Agreement to re-open the acquisition period and to change reserve
criteria from Proved Developed Producing (PDP) to Proved. This may increase the likelihood of
success in acquiring additional properties but increases the reserve risk factor, which
Clearwater Gas and the other FGU partners do not recommend.
Council Work Session 2008-04-14 2
FGU will receive a lump sum payment from PGP on behalf of the other non-FGU PGP
members that will take assignment of FGU's share for $270,000. This will be the full and
complete payment from PGP for FGU's interests in the assets of Pool 1. FGU has deferred
development costs of just over $200,000, which will be paid from the payment. Any additional
legal fees associated with documents related to the assignment and termination of the project
will be paid from the $270,000 payment. Any remaining funds after the payment of all of the
obligations will be distributed to the FGU project participants in proportion to entitlement shares
as reflected in FGU's PGP Gas Supply Agreement 1. The lump sum payment is in addition to
the $0.20/MMBtu distribution that the FGU project participants have received since June 2006.
Gas Program Coordinator Brian Langille said the City would receive approximately
$48,000 due to this change.
Solid Waste/General Support Services
Approve a Contract (Blanket Purchase Order) for $3,930,000 to McMullen Oil Company, Inc, of
Clearwater, FL for the purchase of unleaded and diesel fuel for City Motorized equipment as per
Transport award of City of Clearwater RFP 12-05 and authorize the appropriate officials to
execute same. (consent)
This blanket purchase order covers the purchase of unleaded and diesel fuel delivered
to the City fuel facility located at the Solid Waste compound on Hercules Ave. This fuel is used
for all City equipment. This is the fourth year of a five-year contract.
Assistant Director of Solid Waste/General Services Rick Carnley said last year, City fuel
costs had increased to $2.2 million. Budget estimates are based on industry standard outlooks.
The City pays the daily rack price. The contract ensures that Clearwater receives priority fuel
service in case of storms.
Engineering
Award Design Build Contract for the Downtown Boatslips project to Misener Marine
Construction, Inc. in the amount of $10,522,765.05 and authorize the appropriate officials to
execute same, and authorize staff to initiate financing of the project, and authorize funding from
Central Insurance Fund reserves in the amount of $2,736,097 to advance the $1.5 million to be
paid by the CRA over 3 years and the $1,236,097 of grant funds anticipated once the permitting
is complete.
As a result of the March 2007 referendum, which approved the downtown boat slips
project, work began on the "Design Build" phase of this waterfront project. A RFP (request for
proposals) (31-07) produced three bidders (two qualified). The two qualified bidders were
interviewed, then rated and ranked based on the criteria outlined in the RFP. Misener Marine
was ranked highest of the respondents, for which subsequent negotiations with the design/build
team proved successful.
The proposed design contains 132 wet slips in addition to approximately 1,800 feet of
side tie mooring and 630 feet of free transient mooring. Design and permitting are expected to
be completed by December 31, 2008. The construction phase is to begin the first of the year
(2009) and expected to be complete by June 30, 2009.
Council Work Session 2008-04-14 3
The estimated $12,972,350 cost of the project: 1) Boat Slips: Construction Contract -
$10,522,765 and 5% contingency - $526,138 - total $11,048,903; 2) Upland Improvements:
Sidewalks, curbs, lighting, etc. - $808,114 and Restrooms/Dock masters office - $246,154 and
Electric - $321,260 and Water, Sewer, etc. - $149,755 and Furniture/Equipment - $31,542 and
10% contingency - $163,183 - total $1,795,008; and 3) Public Art $128,439.
Project funding of $12,972,350: 1) Financing Proceeds - $10,250,000; 2) Central
Insurance Fund Reserves - Advance for CRA - $1,500,000 and Advance for Grant - $1,236,097
- total $2,736,097; 3) Downtown Development Board - FY 2007 - $50,000 and FY 2008 -
$50,000 - total $100,000; 4) Less: Spent to Date - $(113,747).
A budget amendment to reflect the above budget and funding will be made as part of the
mid-year budget amendments.
David Gildersleeve, Wade-Trim, reviewed the project's history. Estimated costs
increased slightly since 2006. Offsets include $1 million from the CRA (Community
Redevelopment Agency) and a $1.2 million grant. The project will have a positive cash flow.
City Engineer Mike Quillen said electrical costs had increased by $800,000 due to higher
costs for materials, elevated power requirements for large vessels, added wave attenuation, and
upland improvements. Marine & Aviation Director Bill Morris discussed the boatslips' market
and recommended against reducing upland improvements to the bare minimum to halve that
cost. The drop off point will be near the promenade. Many boats must run generators while
docked at the Marina; staff did not want to underestimate power needs at the downtown slips.
Assistant City Manager Rod Irwin said large boats are profit drivers. No General Fund dollars
will be used for the project. In response to expressed disappointment that electrical component
needs had been underestimated, Mr. Gildersleeve said three firms had submitted the same
estimate.
John Whalen, Misener Marine Construction, said material costs had increased
dramatically. New large boats have higher electrical service requirements; smaller boats do not.
He expressed confidence regarding the quality of the docks.
Discussion ensued regarding costs with comments that the project could not proceed
had it not been for the grant and CRA contribution. Ms. Simmons reported every $1 million
invested in the project would reduce debt expenses by $90,000 per year. Concern was
expressed that the recession and high fuel costs would reduce interest in the slips. Mr. Morris
said the reservation list has 459 names.
Consensus was for staff to submit information regarding buying down project debt.
The Council recessed from 3:50 to 4:00 p.m.
Planning
Approve Amendments to the Clearwater Comprehensive Plan related to the Coastal High
Hazard Area provisions of the Coastal Management Element and Pass Ordinance 7917-08 on
first reading.
The proposed text amendments to the Coastal Management Element of the Clearwater
Comprehensive Plan are necessitated by the passage of H131359 (Chapter 2006 -68, Laws of
Council Work Session 2008-04-14 4
Florida), which made a number of changes to Chapter 163, Florida Statutes and to 9J-5.012
F.A.C. This law requires a change in the definition of Coastal High Hazard Area as well as
adoption of a Level of Service (LOS) for evacuation clearance times for a Category 5 storm
event. In addition to these requirements, the Planning Department is also recommending the
adoption of a Coastal Storm Area (CSA). The CSA includes, in addition to the CHHA, those
areas that are not in the CHHA, but can be reached or evacuated only by going through a
CHHA, as well as areas where high concentrations of development and population are not
appropriate due to safety concerns. The CSA recognizes the unique circumstances existing in
the coastal areas of Pinellas County, and ensures proper evacuation. The CSA is a larger area
than the CHHA, but to be concurrent with the County Comprehensive Plan, consistent with the
Countywide Rules and for safety concerns, the Coastal Storm Area terminology is
recommended.
The Planning Department and Emergency Management staff are recommending
language that would prohibit the siting of hospitals, nursing homes and assisted living facilities
in the CSA. Since the City must follow County Emergency Management directives, these text
amendments are intended to be consistent with language in the Pinellas County
Comprehensive Plan. The recommended amendments were developed in consultation with the
Clearwater Citizen's Advisory Committee, Tampa Bay Regional Planning Commission, Pinellas
County and Pinellas Planning Council.
The Planning Department has determined that the proposed text amendments are
consistent with other provisions of the Clearwater Comprehensive Plan, will not adversely
impact the use of property, will adversely affect neither the natural environment nor public
facilities. Please refer to the report (CPA2007-06004) for the complete staff analysis.
The CDB (Community Development Board) reviewed these amendments at its public
hearing on February 19, 2008, and unanimously recommended approval, with the following
condition: that a specific time to implement the 36-hour LOS is identified prior to implementation
of this amendment. Since the time of that public hearing, Planning Staff has been in contact
with Pinellas County Planning Staff. Pinellas County Planning Staff has now been informed by
DCA (State Department of Community Affairs) that DCA is going to raise objections on every
community across the state that does not adopt, at a minimum, a 16-hour Evacuation LOS, and
have, in fact, already objected to St. Petersburg's adoption of an LOS of 36 hours. County
Planning Staff indicated that in view of their conversation with DCA, the County is in the process
of amending their Evacuation LOS to 16 hours. City Planning staff has not recommended a
specific time to implement an Evacuation LOS due to the fact that numerical estimates for
achieving an Evacuation LOS of 16 hours have not yet been developed, although discussions
with staff from various agencies have an estimated range from 50 -100 years. Because this is a
text amendment to the Comprehensive Plan, review and approval by the Florida Department of
Community Affairs is required.
Long Range Planning Manager Catherine Porter said the prohibition of hospital
expansion would impact only two facilities. Morton Plant Hospital is comfortable with the
change: it plans to expand offices, not increase the number of hospital beds.
Approve amendments to the Future Land Use Element of the Clearwater Comprehensive Plan
related to the adoption of alternative density and intensity standards for overnight
accommodations, and the addition of an objective and policies pertaining to tourism, and Pass
Ordinance 7924-08 on first reading.
Council Work Session 2008-04-14 5
The Planning Department is recommending amendments to the Clearwater
Comprehensive Plan that would adopt alternative density and intensity standards for overnight
accommodations consistent with the Rules Concerning the Administration of the Countywide
Future Land Use Plan (AKA Countywide Plan Rules) as recently amended by the Countywide
Planning Authority (CPA).
In addition to the adoption of these alternative standards, the proposed amendment
would also establish Objective 2.6 and supporting Policies 2.6.1, 2.6.2 and 2.6.3. The objective
and policies identify tourism as a substantial element of the City's economic base and states the
need to support, maintain and enhance this economic sector, as well as encouraging the
development and redevelopment of overnight accommodations and the adoption of higher
densities and intensities that would support such development. The staff report is provided and
Ordinance 7924-08, which contains further analysis and information on the proposed
amendment.
The CDB reviewed the proposed amendments at its public hearing of March 18, 2008,
and recommended approval. At the March 20, 2008, City Council meeting, proposed
Comprehensive Plan amendments were continued to April 17, 2008, in conjunction with
associated amendments to Beach by Design and Community Development Code (TA2008-
01001). As this is a text amendment to the Clearwater Comprehensive Plan, review and
approval by the Florida Department of Community Affairs is required.
Planner Robert Tefft reported the PPC (Pinellas Planning Council) had voiced no
concerns regarding the ordinance. The change would result in a 10% density reduction.
Planning Director Michael Delk said projects requesting additional height are subject to greater
scrutiny. Discussion ensued regarding densities with concern expressed regarding commercial
development impacts on abutting residential neighborhoods. Mr. Delk said there is no
guarantee that applications will be approved. It was noted the main focus is to incentivize the
construction of hotel rooms on Clearwater beach. Discussion will continue on Thursday.
Approve amendments to the Community Development Code to adopt alternative densities and
intensities for overnight accommodations, to improve the criteria by which overnight
accommodations are permitted, to adopt criteria for indoor recreation/entertainment uses where
none previously existed, to further the consistency between the Community Development Code
and the Clearwater Comprehensive Plan, and to make other minor editorial changes, and Pass
Ordinance 7926-08 on first readina.
The Planning Department is recommending several amendments to the CDC that are
associated with a companion amendment being proposed to the Clearwater Comprehensive
Plan that would adopt alternative density and intensity standards for overnight accommodations
consistent with the Rules Concerning the Administration of the Countywide Future Land Use
Plan (AKA Countywide Plan Rules). As such, several of the proposed amendments are being
brought about to ensure consistency between the CDC and the Clearwater Comprehensive
Plan. In addition, are a few amendments that are editorial in nature or are refinements to
existing CDC sections: 1) Consistency with the Comprehensive Plan: Amends the maximum
development potential tables associated with the Commercial (C), Tourist (T) and Industrial,
Research and Technology (IRT) Districts so that they are compatible with the alternative density
and intensity standards for overnight accommodations proposed in Ordinance 7924-08; 2)
Overnight Accommodation Flexibility Criteria: Revises flexibility criteria for the overnight
accommodation use in the Commercial (C), Tourist (T) and Industrial, Research and
Technology (IRT) Districts; 3) Definitions for Overnight Accommodations and Overnight
Council Work Session 2008-04-14 6
Accommodation Unit: Establishes a definition for the term "overnight accommodation unit" and a
revised definition for the term "overnight accommodation," so as to be consistent with those
definitions set forth in the Countywide Plan Rules; 4) Indoor Recreation/Entertainment: Adds
flexibility criteria for lot area, lot width, setbacks, height and off-street parking for the use in the
Commercial (C) District where none previously existed, but deviations were permissible; and 5)
Open Space/Recreation (OS/R) District: Removes the overnight accommodations use from the
OSR District due to incompatibilities with the District and corrects an inconsistency with the
Countywide Plan Rules.
The staff report provided and Ordinance 7926-08 contain further analysis and
information on the proposed amendments. The CDB reviewed and approved the proposed text
amendments at its public hearing of March 18, 2008. It is noted that at the Council meeting of
March 20, 2008, the proposed text amendments were continued to the meeting of April 17,
2008, in conjunction with associated amendments to the Comprehensive Plan (CPA 2008-
01001) and the amendments to Beach by Design so that staff could work with the Pinellas
Planning Council to address their concerns.
Mr. Tefft said minor changes add criteria in response to PPC suggestions and County
requests. Consensus was to permit hotel density in Tourist and Industrial, Research and
Technology Districts.
Official Records and Legislative Services
Appoint Councilmembers as representatives on Regional and Miscellaneous Boards.
Consensus was to maintain current representation.
Legal
Authorize instituting a civil action on behalf of the City against Florida Power Corporation, and
Florida Power Corporation d/b/a Progress Energy Florida, Inc., to seek to recover costs and
expenses incurred during the construction of improvements on Myrtle Avenue. (consent)
During the Myrtle Avenue reconstruction project from 2003 to its completion in 2006,
Progress Energy failed to resolve conflicts with existing above ground utilities and buried utilities
in a timely manner during the reconstruction process. As a result, the City was required to
expend funds to compensate the contractor for time delays, redesign, and additional work. The
total amount claimed against Progress Energy is $464,082.17.
The Legal Department requests authority to bring a legal action against Florida Power
Corporation, and Florida Power Corporation d/b/a Progress Energy Florida, Inc. (including all
other subsidiaries and related corporations as necessary to obtain relief), to recover damages
for the additional costs and expenses incurred by the City. The costs relative to this action will
include a $255 filing fee and fees for service of process of approximately $200.
Public Services Director Gary Johnson said Progress Energy had indicated it does not
want to pay for these costs. This action will set precedence; many conflicts with Progress
Energy utilities exist in City rights-of-way.
Council Discussion Items
Council Work Session 2008-04-14 7
Marine Advisory Board
The relevance of the MAB (Marine Advisory Board) was questioned as the board had
kicked back Council's request for input regarding docks. MAB Chair Paul Kelley reviewed board
efforts to understand the current dock permitting process. He said the board was unsure of its
role and requested Council direction.
Discussion ensued with comments that the board had been requested to provide
recommendations to Council regarding the current dock permitting process, not to write an
ordinance. It was stated that the board's role is to advise the Council regarding marine matters,
noting that board members have boating backgrounds and could provide guideline
recommendations related to best practices. The City Manager suggested the board could
provide input regarding the location of tie poles and length of docks. In response to a question,
Mr. Kelley reported the MAB had discussed board representation by recreational and
commercial boaters, marine development, law enforcement, regulatory interests, and a facility
tenant. He said the board has heavily represented homeowners.
Work Net Pinellas' Summer Career Institute - Councilmember Cretekos
Councilmember Cretekos said he serves on the Work Net Pinellas Board and reviewed
the board's goal to raise $150,000 for the Summer Career Institute. The City of St. Petersburg
contributed $30,000 to help student residents. City funds could be designated for use in
Clearwater.
Economic Development & Housing Director Geri Campos-Lopez said she had been
unable to connect with Work Net's program director. She said the concept is good but was
unsure how Clearwater might participate.
Consensus was for staff to submit additional information regarding the program and an
estimate of the number of students that would participate.
Countryside Library
The City Manager anticipated that Countryside Library Internet problems would be
resolved by Friday.
Adjourn
The meeting adjourned at 5:14 p.m.
Council Work Session 2008-04-14 8