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02/02/2009CITY COUNCIL WORKSESSION MINUTES CITY OF CLEARWATER February 2, 2009 Present: Frank Hibbard George N. Cretekos John Doran Carlen Petersen Paul Gibson Mayor Vice-Mayor Councilmember Councilmember Councilmember Also present: William B. Horne II Jill S. Silverboard Rod Irwin Pamela K. Akin Cynthia E. Goudeau Rosemarie Call City Manager Assistant City Manager Assistant City Manager City Attorney City Clerk Management Analyst The Vice-Mayor called the meeting to order at 1:00 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. The Council recessed from 1:00 p.m. to 1:33 p.m. to meet as the Community Redevelopment Agency. Fire Department Award a contract (blanket purchase order) to Fisher Scientific. Atlanta. Georaia. in an amount not to exceed $472,642 for the purchase of self-contained breathing apparatus (SCBA) upgrade kits and personal protective equipment (PPE), and authorize a lease purchase in the amount of $125,000 under the City's master lease agreement in accordance with Sec. 2.564(b), Code of Ordinances - Sole source for Citv standardized eauioment. and that appropriate officials be authorized to execute same. (consent) The approved 2008 and 2009 CIP budgets included funding in two projects for these purchases. CIP project 91229, Replace and Upgrade Air Packs, provides for the replacement and upgrade of breathing apparatus needed for worn or damaged front line units used by firefighters. The project will provide for the purchase of self-contained breathing apparatus (SCBA) upgrade kits that have been approved through the National Institute for Occupational Safety & Health (NIOSH) and CDC. The purchase of upgrade kits is significantly less expensive than purchasing all new gear. In-house personnel will install the upgrade kits; also a significant savings over having kits installed by an outside party. The CDC and NIOSH have a program to approve SCBA use by firefighters and other first responders to terrorist attacks. NIOSH approval under the program signifies that an SCBA is expected to provide needed protection to first responders in situations where an act of terror has released harmful chemicals, pathogens, or radioactive materials into the air. Council Work Session 2009-02-02 This program will provide for the standardization of existing air packs and the purchase of new replacement air packs that meet the new standard, which has been adopted by the National Fire Protection Association (NFPA) revision of NFPA 1982. The department plans to purchase 120 upgrade kits and related parts in the coming weeks. Lease purchase funds in the amount of $125,000 and cash funds of $142,160 are available for this purchase. CIP project 91261 Personal Protective Equipment provides funding for the purchase of $205,482 of replacement firefighting personal protective equipment/gear (PPE). The department currently issues protective gear to those employees that are employed in a firefighting capacity. This project is necessary to bring all fire/rescue personal gear up to the same level of protection per the NFPA 1852 compliance and incorporates the new gear into a revolving replacement schedule. The recommended life expectancy of PPE is 4 to 5 years depending on use. This project will allow for a 4 to 5 year replacement plan and reduce the current cost of maintenance and repair of our current PPE. Funding will be partially reimbursed by Pinellas County, as the equipment will help serve any unincorporated resident of the Clearwater Fire District. In response to questions, Fire Chief Jamie Geer said Pinellas County would reimburse 13% of the purchase cost. Staff has tested the equipment. Equipment standards change every ten years. Financial Services Authorize the Finance Director to proceed with the process to conduct a negotiated sale of bonds in an amount not to exceed $75,000,000 to finance various City of Clearwater Water and Sewer System construction protects. (consent) In order to secure long-term financing for construction projects identified by the City's Water and Sewer System, the City needs to proceed with a sale of not to exceed $75,000,000 in Water & Sewer System revenue bonds in the Spring of 2009. A preliminary list of projects to be financed with the proceeds of the bonds is attached and totals approximately $60 million. We will only issue the amount of bonds necessary to generate funds for the required capital projects, to fund a debt service reserve, and to pay the expenses of issuance costs, insurance and underwriter's discount. Resolution 07-28 was approved by Council on November 1, 2007, establishing the City's intent to reimburse project costs incurred with proceeds of future tax-exempt financing. The City's Financial Advisor (Raymond James) is recommending that in the current financial market environment, a negotiated sale will yield a more favorable result (lower interest cost) than utilizing a competitive sale format. A Bond Sale Resolution will be presented to Council for approval as we get closer to actual bond issuance. However, since the City has typically issued bonds competitively, staff wanted Council to approve the negotiated sale process prior to beginning the time consuming process of selecting an underwriting team. The Financial Advisor will issue an RFP to assemble a team of qualified underwriters for this bond issue. Council Work Session 2009-02-02 2 In the early part of March 2009, presentations to rating agencies, S&P, Moody's, and Fitch, will be conducted by City staff and advisors to secure the highest possible credit rating for these bonds. Conditions regarding the advantage of credit enhancing insurance change daily and it will be determined just prior to closing if purchasing this insurance will provide any benefit. It is anticipated the sale of this bond issue will close sometime in May 2009. In response to questions, Controller Clem Vericker reviewed the negotiated bond sale process. Finance Director Margie Simmons said higher bond ratings lower insurance costs. Staff expects to receive the new bond rating in March and close on bonds in May. Water and sewer costs included in Beach Walk Phase 1 were for infrastructure replacement. Parks & Recreation Therapeutics - Dawn Lewellvn. Parks and Recreation Recreation Supervisor Dawn Lewellyn reviewed a power point presentation regarding the City's Therapeutic Recreation Strategic Plan. Ms. Lewellyn said 50% percent of the users are Clearwater residents. Staff is coordinating efforts with Office on Aging regarding a picnic. Official Records & Legislative Services Appoint five members to the Library Advisory Board with the term expiring February 28, 2013. City Clerk Cyndie Goudeau expressed concern regarding Kip Corriveau's application as he serves on the NAHAB and fulfills an important role. He would not be able to serve on both boards. Ms. Goudeau said the concern was brought to his attention and she was waiting for his response. Legal Shoppes of Sand Key It was stated the City received a letter demanding withdraw of its appeal and requested direction from Council regarding staff continue representing City in this matter. Assistant City Attorney Leslie Dougall-Sides said the law firm of McFarland, Ferguson and McMullen intends to file a request for attorney's fees should they prevail on the appeal. The court has granted the City a request for oral arguments. Points upon which based appeal have not changed. The majority supported staff to stay the course. City Manager Verbal Reports Advisory Board Appointments Direction was requested concerning interest to change the applicant review process. Council Work Session 2009-02-02 3 Discussion ensued concerning applicants understanding role and expectations of an advisory board member. It was stated that Councilmembers may individually contact applicants. No change to the process was given. Council Discussion Items Beach Parking Structure beach. Councilmember Doran expressed desires to move forward with a parking structure at the Assistant City Manager Rod Irwin said the two appraisals are substantially below the deal structure with Britt's. Britt's has reiterated their interests but concerned with financial component. iStar has possession of the Lucca property and has expressed an interest to move forward. Mr. Irwin said he expects a response from Britt's by Thursday. Use of Pennv Dollars for General Fund Capital Proiects - Councilmember Gibson Councilmember Gibson expressed concerns with downtown boat slip project funding and suggested use of Penny funds be considered. Finance Director Margie Simmons said ten individuals have placed a deposit. There is not enough money in Penny but would be able to loan from the Central Insurance Fund. Discussion ensued. It was suggested that downtown boat slip rates be lowered to increase interest. Assistant City Manager Rod Irwin said Council would be provided a full analysis of the marina at the next meeting. Resolution 07-32: correction to Work Session start time needed It was stated that Council Rules require changing work session times by resolution. Staff was directed to amend the start time for work sessions to 9:00 a.m. and present the resolution at the February 19 council meeting. Advisory Board Dinner 2009 - tentative date set for April 29th City Clerk Cyndie Goudeau said $5,000 has been budgeted for the event at the Harborview Center and requested guidance if staff should continue planning the event. Consensus was for staff to proceed with this year's event. Other Council Action Councilmember Cretekos requested the usage of the Main Library terrace be discussed at the next work session. Council Work Session 2009-02-02 4 Adjourn The Work Session adjourned at 3:21 p.m. Council Work Session 2009-02-02