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06/15/2009 CITY COUNCILWORKSESSION MINUTES CITY OF CLEARWATER June 15, 2009 Present: Mayor Frank Hibbard, Vice-Mayor Paul Gibson, Councilmember George N. Cretekos, Councilmember John Doran, Councilmember Paul Gibson, and Councilmember Carlen Petersen. Also William B. Horne II - City Manager, Jill S. Silverboard - Assistant City Manager, Rod present: Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, Cynthia E. Goudeau - City Clerk, and Rosemarie Call - Management Analyst. The Mayor called the meeting to order at 9:00 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 1. Presentations 1.1 Service Awards/Team Award Three service awards were presented to City employees. 1.2 The State of Tourism - D.T. Minich, Executive Director, Visit St. Pete/Clearwater Executive Director D. T. Minich provided information regarding marketing efforts to increase local tourism and sports-related bookings in Clearwater. The Pinellas County bed tax is down 8.5% but still faring better than other regions in the state. Mr. Minich said hotels are depending more on in-state tourism. In response to questions, Mr. Minich said Visit St. Pete/Clearwater is sponsoring an event at the Clearwater Marine Aquarium to promote the facility. New York City marketing efforts included $250,000 for banners and $125,000 for a full-page ad in the New York Times which resulted in a spike of New York visitors in March. Mr. Minich said the NFL chose to host Super Bowl events in St. Petersburg. Efforts were made to showcase Sand Key Park but the NFL felt the location was cost prohibitive. The Clearwater Regional Chamber is working on a feasibility study for a local inland convention center with meeting space and hotel rooms. 2. Office of Management and Budget 2.1 Amend the City’s fiscal year 2008/09 Operating and Capital Improvement Budgets at Mid Year and pass Ordinances 8077-09 and 8078-09 on first reading. The Fiscal year 2008/09 Operating and Capital Improvement Budgets were adopted in September 2008 by Ordinances 8005-08 and 8006-08. Section 2.521 of the City’s Code Work Session 2009-06-15 1 of Ordinances requires the City Manager to prepare a quarterly report detailing income, expenditure estimates, collections, the explanation of significant variances, as well as the financial status of all capital improvement projects. The memorandum and the accompanying report provide this information and outlines the issues at Mid Year that require amendment. Budget Director Tina Wilson reviewed the amendments. Franchise fees and utility taxes are based on use of the services. Staff does not recommend using General Fund Reserves to balance the budget because using 5-6% would drop reserves below Council’s 8% guidance. Most cities have 8-12% in reserves. 3. Financial Services 3.1 Approve settlement of the liability claim of Gregory Bidlow for payment of $45,000. (consent) On April 15, 2007, a city gas employee struck Mr. Bidlow’s vehicle. Mr. Bidlow was on a through street and had the right of way. Our gas employee was stopped at a stop sign and did not see Mr. Bidlow approaching and pulled into the path of Mr. Bidlow. Mr. Bidlow’s vehicle was a total loss, and we paid $21,577. Mr. Bidlow was wearing a seat belt, and sustained injuries to his shoulder, back, wrist, and neck. Mr. Bidlow is scheduled to have an anterior cervical discectomy and fusion at C4-5 and C5-6 levels. Mr. Bidlow’s current medical expenses are approximately $17,000, and the anticipated cost of the cervical surgery is in excess of $50,000. The City’s limit of liability as provided by Section 768.28, Florida Statutes is $100,000. The City’s Risk Management Division and City’s Claims Committee recommend this settlement. Funding for the payment of this settlement is available in the budget for claims expense in the Central Insurance Fund. 3.2 Approve payment in an amount not to exceed $40,000 from the Central Insurance Fund for resolution of claim 09000123 to the City of Clearwater. (consent) City vehicle G3533, a 2009 Chevrolet Suburban rescue unit, was damaged when a citizen vehicle pulled out of a driveway and directly into its path. The City vehicle was damaged beyond repair. Cost of the vehicle itself was $33,300, and the city will incur significant additional expense to remove and reinstall much of the specialty equipment secured to this vehicle. The other party’s insurer has not yet accepted liability for this accident, therefore, Risk Management is requesting approval to "settle" this claim with the City (Fleet Maintenance and Clearwater Fire and Rescue) to allow the replacement vehicle to be purchased as soon as possible. Risk Management will continue to attempt collection from the at fault driver but that could take some time. Work Session 2009-06-15 2 Funding for the payment of this settlement is available in the budget for claims expense in the Central Insurance Fund. 4. Parks and Recreation 4.1 Accept $144,888 for funding two summer camp programs, approve the corresponding agreement from Coordinated Child Care and authorize the appropriate officials to execute same. (consent) The City of Clearwater Parks and Recreation Department has been awarded funding totaling $144,888 for FY 08-09 from Coordinated Child Care a non-profit, 501 c (3) agency. Council approval is required for each subsequent agreement. Since the program began in 2000, JWB Children’s Services Council of Pinellas County was the contract agency. This year, JWB is granting all of the youth development, out of school time funding, to Coordinated Child Care. JWB has decided to consolidate all of this type of program under one administrative service agency. The City programs a summer camp for 140 economically disadvantaged children aged 9- 14 years at the North Greenwood Recreation Complex and Ross Norton Recreation Complex. Camp activities will include: math and reading practice, drama, visual art, poetry, fitness, swimming, field trips, games and sports. This program is compatible with JWB’s Strategic Plan in the following areas: providing a substance abuse program, skill development activities, children aged 9-14 years, community-based activities, structured activities, support from 3 or more adults, quality services and activities while preventing problem behaviors. The City will provide in-kind support to the Middle School Aged Summer Scholarship Program by providing supervisory oversight. There is no requirement to continue the program when the grant ends. The following special project numbers have been established for accounting purposes: 181-99822 – Juvenile Welfare Board/ Ross Norton Recreation Center 181-99835 – Juvenile Welfare Board/ N. Greenwood Recreation Complex 4.2 Approve co-sponsorship and waiver of requested City fees and service charges for FY 2009-2010 special events including six annual City events; and five City co-sponsored events (a reduction of seven events); at an estimated General Fund gross cost of $412,030 ($19,300 representing cash contributions and $392,730 representing in-kind contributions) and enterprise fund cost and fee waiver of $61,620 for the purposes of departmental budget submittals. (consent) According to the City Council Policy, Item "M", Special Event Fees, there shall be an annual review of City sponsored/co-sponsored events during the budget process. An agenda item approving co-sponsorship and level of support for these events will be brought before the City Council at the beginning of the budget process each fiscal year. In the event additional money is requested beyond what is included in the approved budget, City Council approval will be needed before additional funds are dispersed. Work Session 2009-06-15 3 The chart shows cash and in-kind contributions requested to be included in FY 2009/2010 budget for City sponsored and co-sponsored special events. In addition, the 2008/2009 approved spreadsheet is provided for comparison purposes. “In-kind contributions” are included in operating budgets under various departments. General fund “in-kind contributions” decreased by $43,598 or a 10% reduction from FY2008/09. Decreases for FY2009/10 are as follows: · Times Turkey Trot - $17,500 - PD staff will be working on duty · Farmers Market - $3,000 · Make A Difference Fishing Tournament - $1,000 · Downtown Concerts - $7,000 · North Greenwood MayFest - $5,000 · Taste of Clearwater - $3,400 - Event to move with closing of Harborview Center · San Genarro Festival (not held in 2009) - $17,000 · Festival of Trees - $3,200 Increases for FY2009/10 are as follows: · Sea Blues Fest - Approximately $8,000 to expand to 3-day event. Last year’s event was 3 days also, but funds were used that were budgeted for San Genarro Festival. · Hispanic Concert - Approximately $8,500 for additional Police Department resources to maintain a safe event. “Cash Requests” have been reduced by $15,000 (support for the Florida Orchestra), to $19,300 or a 44% reduction. Only the Martin Luther King Jr. Day ($4,750) and the Clearwater Jazz Holiday ($14,550) will receive cash. In response to questions, Parks and Recreation Director Kevin Dunbar said increased police protection for the Hispanic concert is to ensure the large event remains safe. Police Deputy Chief Dewey Williams said police officers are deployed outside of the Hispanic concert to reduce criminal element entering the event. Mr. Dunbar said the Sun-N-Fun event has been reduced to 1 day and can no longer anchor the Florida Orchestra. The Police Department will flex community policing teams, as well as sworn officers allowed by contract, for the Turkey Trot, for no over time cost. 4.3 Approve the First Amendment to Covenants, Restrictions, Grant of Easements and Modification of Clearwater Commons Shopping Center Operational and Reciprocal Easement Agreement between DDR Southeast Clearwater Development, LLC, the City of Clearwater, and the Phillies and authorize the appropriate officials to execute same. (consent) The City of Clearwater is a party of a Reciprocal Easement Agreement (REA) with other property owners known as the Clearwater Collection Shopping Center, located on the south side of Bright House Networks Field. The REA details use and access of common areas within the shopping center. Prior land interests have been consolidated by DDR Southeast Clearwater Development, LLC. In order to facilitate redevelopment of the DDR site, they have requested to formalize the practice of allowing other shopping center guests to park on the City’s parcel during such time as the City and/or Phillies are not using for a City or Phillies event. Work Session 2009-06-15 4 DDR has agreed to have one high quality tenant who operates at least fifteen (15) stores in the southeastern United States. DDR has agreed to provide additional parking on event days and to not unreasonably withhold spaces. There will be no increase in operating costs or staffing. 5. Police 5.1 Approve a Voluntary Cooperation Mutual Aid Agreement as provided under Florida law, entitled Operation Island Runners, between the Florida Department of Law Enforcement (FDLE) and the City of Clearwater Police Department to form a task force to investigate, dismantle and disrupt Racketeering Influence Corrupt Organizations, human trafficking and related crimes in west central Florida and authorize the appropriate officials to execute same. (consent) · Organized human smuggling and trafficking are of serious concern to the state of Florida. Smugglers are using sophisticated methods to illegally smuggle people into Florida and are using Caribbean countries as transit points to facilitate the movement of such people. Smugglers conduct peripheral crimes such as vessel theft, fuel thefts and identification fraud, then once the people are smuggled into Florida, use them as either hired co-conspirators or indentured servants in other crimes or imposing forced labor services upon them. · One of the related crimes that has impacted the City of Clearwater directly is the theft of large, expensive yachts and vessels from waterfront properties. The Clearwater Police Department is currently investigating 2 vessel thefts believed to be related to this organized crime operation. Other similar thefts have occurred throughout southwest Florida. · In recognition that such efforts transcend jurisdiction limits, this agreement will assure the continued functioning of law enforcement in areas where such limits might otherwise thwart major law enforcement efforts. The lead agency in the Task Force is the Ft. Myers office of FDLE. · The subscribing law enforcement agencies are so located in relation to each other that it is to the advantage of each to receive and extend mutual aid resources to adequately respond to multi-jurisdictional criminal activity. Law enforcement agencies in all coastal counties from Monroe County north through Pinellas County are proposed signatories to this agreement. · The agreement is authorized under the Florida Mutual Aid statute and outlines procedures for inter-agency cooperation; there is no cost to the City of Clearwater, and there is no requirement for full or part-time detachment of personnel or other resources as a result of participation in the task force. The benefits to the City will be enhanced investigative resources on cases that occur in the City. 5.2 Approve an agreement between the City of Clearwater and the School Board of Pinellas County, Florida, in the amount of $147,034.50, providing for the continuation of the School Resource Officer program at Clearwater High School, Countryside High School and Oak Grove Middle School for a one-year period commencing July 1 2009 through Work Session 2009-06-15 5 June 30, 2010 and authorize the appropriate officials to execute same. (consent) · Under the terms of the one-year agreement between the School Board of Pinellas County and the City of Clearwater, the City will provide law enforcement and related services to Clearwater High School, Countryside High School and Oak Grove Middle School during the regular school year. The assigned officers (1 per school) will provide instruction in law education, will serve as resource persons, conduct investigations, provide security and maintain the peace, make arrests and provide support services as necessary. · The annual cost of salaries and benefits of three (3) officers over the one-year period will be $262,642. Total annual reimbursement from the School Board will remain at $49,011.50 for each officer, for a total reimbursement of $147,034.50, reflecting no revenue increase to the City for SRO services during the 2009/2010 contract period. The difference of $115,607.50 will be funded from Special Law Enforcement Trust Fund (SLEF) proceeds. Special Project 181-99264, School Resource Officers, will be established at third quarter to capture all financial activity. · The cost incurred by the Police Department is offset by the benefit of the program to the community and the Police Department. All procedural components of the contract remain the same as those outlined in the 2008/2009 contract. · The continuation of the School Resource Officer Program beyond FY 2009/2010 is dependent upon SRO program funding being included in future budgets. · The Police Department has maintained a good working relationship with the School Board. School Resource Officers have been assigned to Clearwater High School since January 1, 1985 and Countryside High School since January 1, 1986. This is the third year a School Resource Officer will be assigned to Oak Grove Middle School. The School Board no longer requires an SRO at Kennedy Middle School, which will be repurposed as a full fundamental school. In response to a question, Deputy Police Chief Dewey Williams said it is prerogative of individual school to require school resource officers. 5.3 Renew the agreement with TriTech Software Systems, Pasadena, California, in the amount of $131,358.33 for software support during the 10 month period ending September 30, 2009, in accordance with Sec. 2.564 (1)(b) - Sole Source, and authorize the appropriate officials to execute same. (consent) · The Police Department’s previous Computer-Aided Dispatch System (CADS) was at the end of its life expectancy. This system and peripheral software was outdated, and the vendor had only one employee remaining with the expertise to support this system. · The Pinellas County Sheriff’s Office (PCSO) was also in the process of migrating to current CADS database technology. Clearwater Police Department and PCSO, after due diligence in evaluating several vendors, agreed to a partnership to include TriTech and other technologies providing interoperability between both agencies to meet the 2003 goals of the Pinellas Assembly, as directed by the City Manager. The partnership Work Session 2009-06-15 6 between both agencies complimented the data functionality of CPD’s Computer-Aided Dispatch System. · The TriTech system has been operational since October 2007. The system provides an integrated CADS, mobile, and AVL environment, and downloading of data to the report management system (ACISS). Prior to the TriTech System, each of these functions required separate software support and hardware agreements. In the past, CPD would budget these item separately in the amount of $122,389.00.Final sign-off and payment to close out the project was made in March 2009. CPD requests approval of a Software Support Agreement in the amount of $131,358.33 for a 10-month period ending September 30, 2009. Funding is available in CPD’s Special Project 181-99387, Federal Forfeiture Sharing Fund. 6. Solid Waste/General Support Services 6.1 Approve a Contract (Blanket Purchase Order) to Jet Age Fuel, Inc. of Clearwater, FL for an amount not to exceed $200,000 for the purchase of High Sulphur Diesel Fuel for Off Road equipment and Emergency Generators as per City of Clearwater RFP 17-09 during the contract period July 1, 2009 through June 30, 2011 and authorize the appropriate officials to execute same. (consent) The fuel purchased under this contract will be used in all off road equipment and vehicles and stationary and mobile emergency standby generators. The price includes delivery to the various sites. This contract is for 2 years with 3 additional years as an option at the City of Clearwater discretion. 7. Public Utilities 7.1 Award a contract (Purchase Order) to Allied Universal Corporation of Miami, FL, from July 1, 2009, through March 31, 2010, for a total value of $121,499.87, for Liquid Sodium Hypochlorite, and authorize the appropriate officials to execute same. (consent) Liquid Sodium Hypochlorite (bleach) is used to disinfect wastewater effluent and aids odor control at the City of Clearwater’s three Water Pollution Control facilities. Allied Universal is the low bid for Sodium Hypochlorite in the Peace River Manasota Regional Water Supply Authority, 2009 Water Treatment Chemicals Bid for the period April 1, 2009, through March 31, 2010. This contract will be a "piggy back" on that bid. The contract provides bleach for the permanent disinfection feed system at the Northeast Plant and for odor control at all three (3) plants. Sufficient budget is available in the Water & Sewer Utility Fund operating cost center 0421-01351-551000-535-000-0000, WPC Operations, to fund FY08/09 in the amount of $40,945.01 and is planned in the budget request to be brought forward for FY09/10 in the amount of $80,554.86. 8. Engineering 8.1 Approve increasing Penny for Pinellas funding of the Beach Connector Trail project to $607,226.49 by transferring $319,417.77 of Penny for Pinellas funds from the Druid Road Work Session 2009-06-15 7 Improvements project to the Beach Connector Trail project. This project provides for the construction of the Beach Connector Trail and related amenities at the amount of $1,120,732.27, of which $319,417.77 will be funded from Penny for Pinellas funds. The balance of the construction contract is provided by a grant from the Florida Department of Transportation. The design and easements for this project had been previously provided from Penny for Pinellas funds, bringing the total funding from Penny for Pinellas to $607,226.49. The transfer of Penny for Pinellas funds in the amount of $319,417.77from the Druid Road Improvements project will provide the funding necessary for the construction. 8.2 Approve a Work Order in the amount of $423,246 to URS Corporation, an Engineer-of- Record for the City of Clearwater, to provide Construction Engineering and Inspection (CEI) Services for the construction of the Chautauqua/Coachman Ridge and Morningside reclaimed water projects; and authorize the appropriate officials to execute same. (consent) · This Agenda Item is for the construction Engineering and Inspection Services of new reclaimed water transmission and distribution mains as outlined in the 1998 Reclaimed Water Master Plan Update (as updated in December 2007) for the Chautauqua and Coachman Ridge areas as well as Morningside area. · The goal of these reclaimed water projects is to reduce the amount of potable water and groundwater being used for irrigation and other non-potable uses. In addition, expansion of the Reclaimed Water Distribution System in accordance with Reclaimed Water Master Plan brings the City of Clearwater closer to achieving zero-discharge of effluent to Tampa Bay and adjacent surface waters. · Both the Chautauqua/Coachman Ridge and Morningside projects are similarly sized and have very similar construction schedules. Bids for both Morningside and Chautauqua/Coachman Ridge RCW Projects were opened in May and the awards of construction contracts for both projects are also brought forward to council for approval in this meeting. · In an effort to achieve efficiencies, URS will provide CEI Services for both projects in the amount of $423,246 with $248,293 for Chautauqua/Coachman Ridge RCW Project and $174,953 for Morningside RCW Project. · Both of these projects have a Cooperative Funding Agreement between the City and South West Florida Water Management District (SWFWMD), which includes reimbursement of up to 50% of the cost of design, permitting and construction of transmission and distribution of reclaimed water lines. · Construction for both projects will commence in July 2009 with completion anticipated in ten (10) months for Morningside and in thirteen (13) months for Chautauqua/Coachman Ridge. · The City of Clearwater’s Public Utilities Department Water Division is responsible for owning, operating and maintaining the reclaimed water system. Work Session 2009-06-15 8 · Sufficient budget and funding with 2009 Water and Sewer Revenue Bond proceeds are available in project 0376-96739, Reclaimed Water Distribution System, in the amount of $248,293.00. · Sufficient budget and revenue are available in project 0315-96739, Reclaimed Water Distribution system in the amount of $174,953.00 for a total of $423,246.00 for this contract. · A third quarter amendment will increase the budget for Other Governmental Revenues (337900) in project 0315-96739, Reclaimed Water Distribution System for the SWFWMD’s share of this contract in the amount of $211,623.00. In response to questions, Engineering Manager Rob Fahey said Florida Statutes do not allow the city to bid for professional services. The city cannot ask for rates during the RFQ (Request for Qualifications) process. Engineers of record are chosen annually based on their qualifications. Staff can try to negotiate down the price. Mr. Fahey said the proposed fee is in line with other city projects and is a not to exceed amount. 8.3 Award a contract to Gregory Electric Company, Inc. of Naples, Florida in the amount of $2,172,942.57 for construction of the Chautauqua/Coachman Ridge Reclaimed Water (RCW) Project (project 07-0053-UT), which is the lowest responsible bid received in accordance with the plans and specifications for this project; and authorize the appropriate officials to execute same. · This Agenda Item is for the construction of new reclaimed water transmission and distribution mains as outlined in the 1998 Reclaimed Water Master Plan Update (as updated in December 2007) for the Chautauqua and Coachman Ridge areas. · The goal of this and all other reclaimed water projects is to reduce the amount of potable water and groundwater being used for irrigation and other non-potable uses. In addition, expansion of the Reclaimed Water Distribution System in accordance with Reclaimed Water Master Plan brings the City of Clearwater closer to achieving zero- discharge of effluent to Tampa Bay and adjacent surface waters. · May 15, 2008, City Council approved the design of the project and the Cooperative Funding Agreement between the City and SWFWMD, which includes reimbursement of up to 50% of the cost of design, permitting and construction of transmission and distribution of reclaimed water lines up to a maximum of $1,977,000. · It is anticipated that construction will be accomplished in 405 days and be completed by the end of August 2010. · URS Corporation, the engineering design consultant for this project and an Engineer-of- Record for the City of Clearwater, is responsible for the design of the improvements. The final engineering estimate was $4,806,000. Twelve bids were received, and Gregory Electric Company, Inc. was the lowest in the amount of $2,172,942.57 for the project. After comparing the bids, URS Corp. has provided a recommendation to award construction of the project to Gregory Electric Company, Inc. and City staff concurs. Work Session 2009-06-15 9 · The City of Clearwater’s Public Utilities Department Water Division is responsible for owning, operating and maintaining the reclaimed water system. · Sufficient budget and funding with 2009 Water and Sewer Revenue Bond proceeds is available in project 0376-96739, Reclaimed Water Distribution System, in the amount of $1,257,255.77. Sufficient budget and Utility revenue are available in the project 0327- 96739, Reclaimed Water Distribution System, in the amount of $635,000.00. Sufficient budget and revenue are available in project 0315-96739, Reclaimed Water Distribution system in the amount of $280,686.80 for a total of $2,172,942.57 for this contract. · A third quarter amendment will increase the budget for Other Governmental Revenues (337900) in project 0315-96739, Reclaimed Water Distribution System for SWFWMD’s share of previously approved design costs in the amount of $220,553.50 and construction in the amount of $1,086,471.29 for a total increase of $1,307,024.79. Engineering Manager Rob Fahey said reclaimed water in Coachman Ridge was always part of the Master Plan. The current ordinance requires an availability fee. Cooperative funding not impacted for this project. It was stated the ordinances would have to be amended if Coachman Ridge is exempted. Public Utilities Director Tracy Mercer said before 1998 reclaimed water only served golf courses and green spaces. When service was extended to residents, reclaimed water was first provided on the beach because wells were not an option. As approached Morningside, staff became concerned with the number of wells in the area. Ms. Mercer said only 1% of individuals on wells will come off them. 8.4 Approve the URS Corporation work order in the amount of $429,917.00 for engineering design and limited support services during construction of the Clearwater Glen Oaks/Palmetto Reclaimed Water Distribution Project (08-0043-UT), and approve the Cooperative Funding Agreement with the Southwest Florida Water Management District (SWFWMD) which provides reimbursement of project costs up to $2,890,000 and authorize the appropriate officials to execute same. (consent) · This Work Order provides for engineering and design services for the construction of new reclaimed water transmission and distribution mains as outlined in the 1998 Reclaimed Water Master Plan Update (as updated in December 2007). · The goal of this and all other reclaimed water projects is to reduce the amount of potable water and groundwater being used for irrigation and other non-potable uses. In addition, expansion of the Reclaimed Water Distribution System in accordance with Reclaimed Water Master Plan brings the City of Clearwater closer to achieving zero- discharge of effluent to Tampa Bay and adjacent surface waters. · This project will target the Glen Oaks/Palmetto area, the main portion of the project is Work Session 2009-06-15 10 located south of Russell Street and west of Jupiter Avenue and is bounded to the south by Druid road, and six large recreational/commercial/aesthetic (RAC) customers which include Glen Oaks Park, St. Cecilia Catholic School soccer fields, Clearwater Intermediate School, Betty-Drew Apartment, and Crest Lake Park/Dog Park. The new distribution system will provide reclaimed water to approximately 550 residential customers. · The design phase is anticipated to be complete by February 2010, with the construction phase scheduled for completion by December 31, 2012. · URS Corporation is one of the City’s Engineers-of-record, and this work order was negotiated in accordance with the Consultants Competitive Negotiations Act. · This item is a continuation of the development of an expanded reclaimed water system in the City of Clearwater. The purpose of this contract is to accept SWFWMD funding in support of constructing reclaimed water service to the Glen Oaks/Palmetto area of the City of Clearwater. . The Cooperative Funding Agreement between the City and SWFWMD includes reimbursement of up to 50% of the cost of design, permitting and construction costs for transmission and distribution of reclaimed water lines up to a maximum of $2,890,000. There are no costs associated with accepting the Cooperative Funding Agreement. . The estimated total project cost is $5,780,000 and the City’s estimated share of the project costs are $2,890,000. . Sufficient budget and funding with 2009 Water and Sewer Revenue Bond proceeds is available in project 0376-96739, Reclaimed Water Distribution in the amount for $429,917.00 for this work order. In response to questions, Public Utilities Director Tracy Mercer said in an area of 700 parcels, there are 450 possible hook-ups to reclaimed water. SWFWMD would refer residents to the City if a well permit process was in place. It was stated that a well permit process would require a whole new ordinance and program. The Council recessed from 11:19 a.m. to 11:28 a.m. 8.5 Award a contract to Volt Telecom of Clearwater, Florida, for the Morningside Reclaimed Water System (05-0022-UT) construction contract in the amount of $1,557,039.28, which is the lowest responsible bid received in accordance with plans and specifications and authorize the appropriate officials to execute same.(consent) · This item is a continuation of the development of a reclaimed water transmission and distribution system in the City of Clearwater. The purpose of this contract is to construct a reclaimed water system expansion in the Morningside area to serve the residents, Work Session 2009-06-15 11 schools and businesses with reclaimed water for non-potable use. The project consists of approximately 17,000 linear feet of 10-inch and 8-inch transmission pipeline, and approximately 22,000 linear feet of 3-inch and 4-inch distribution pipeline. The construction contract time is 300 days. · This project also includes the construction of approximately 2,260-LF of 8-inch transmission main to serve Belleair Country Club (BCC). To provide service to the BCC, this project will also require a flow control station within City Right-of-Way (ROW) along Corbett Street and a Utility Easement from said ROW to a new outfall box where the RCW will be discharged into a storage pond and utilized for irrigation by the BCC Golf Course. · The transmission and distribution pipeline construction on this project will primarily be installed by the directional drill technique. This is being done to minimize the impact of construction on the residents in the project area. · This project is consistent with the City of Clearwater’s Updated Reclaimed Water Master Plan. · The final Engineer’s estimate of construction on this project was $3,328,070. · McKim & Creed, the engineering design consultant for this project and an Engineer-of- Record for the City of Clearwater, has provided written recommendation to award the construction contract to Volt Telecom. · Construction is expected to start in June of 2009 and be complete by May of 2010. · This project is being funded in part by a grant from the Southwest Florida Water Management District (SWFWMD). The Cooperative Funding Agreement between the City and the SWFWMD includes reimbursement of 50% of design, permitting and construction costs for transmission and distribution reclaimed water lines up to a maximum of $2,300,000, that includes $600,000 funds from the Florida Department of Environmental Protection (FDEP), Water Protection and Sustainability Program Trust Funds (WPSPTF), which will be applied to equally reduce the City’s and SWFWMD’s share of allowable construction costs. · The City’s estimated share of project costs is $478,519.64 after deducting the City’s 50% or $300,000 share of the WPSPTF funding which will be passed through SWFWMD. SWFWMD - $1,078,519.64 City - $478,519.64 TOTAL $1,557,039.28 · The City of Clearwater’s Public Utilities Department Water Division is responsible for owning, operating and maintaining the reclaimed water system. · Sufficient budget and revenue are available in project 0315-96739, Reclaimed Water Distribution system in the amount of $1,557,039.28 for this contract. Work Session 2009-06-15 12 · A third quarter amendment will increase the budget for Other Governmental Revenues (337900) in project 0315-96739, Reclaimed Water Distribution System for the SWFWMD’s share of previously approved design costs of $255,000 and this contract in the amount of $1,078,519.64 for a total amount of $1,333,519.64 8.6 Authorize the City to enter into an agreement with CSX Transportation, Inc., for installation of one (1) 24-inch reclaimed water main in the CSX right-of-way as part of the Skycrest Reclaimed Water Project Contract 2: Transmission and Distribution, approve Pipeline Crossing Agreement CSX-629438, adopt Resolution 09-27 and authorize the appropriate officials to execute same. A work order for consultant services was approved on September 6, 2007 for design, preparation of construction plans, and permitting for the Skycrest Reclaimed Water Project (L695). A cooperative funding agreement for the project between SWFWMD and the City of Clearwater was approved by the City of Clearwater on May 17, 2007. . There are two (2) projects contained within the Skycrest Reclaimed Water Project (L695). Contract 1, the booster pump station project, involves the construction of a new 5MG RCW ground storage tank and pump station to be located at the existing City nursery site at 901 North Saturn Avenue to enable the RCW system to meet peak demands. Contract 2, the transmission and distribution project, involves the construction of approximately 17,300 linear feet of transmission piping and 52,500 linear feet of distribution piping. As part of Contract 2 project, the City desires to construct one (1) 24- inch reclaimed water main crossing CSX right-of-way. The 24-inch reclaimed water main crossing is on Clearwater Country Club property where the CSX railroad crosses through the property. CSX requires an Agreement to cover the costs of encroaching, construction risk and to provide the terms and conditions associated with placing a pipeline underneath their railway system. The cost to the City will be $4,000 for a license fee, $2,250 for railroad protective liability insurance, and $150.00 for a project coordination fee for a total cost of $6,400.00. Sufficient budget and revenue are available in project 0315-96739, Reclaimed Water Distribution system in the amount of $6,400.00 for this agreement. 8.7 Award a contract to A and L Underground, Inc. of Lenexa, Kansas for the construction of the Skycrest Reclaimed Water Project - Contract 2: Transmission and Distribution (Project 07-0013-UT) in the amount of $4,317,223.90, which is the lowest responsible bid in accordance with plans and specifications; and approve a work order for $418,040.00 to McKim and Creed (EOR) of Clearwater, Florida, for project related post-design engineering services, for a total project amount of $4,735,263.90, and authorize the appropriate officials to execute same. (consent) The City of Clearwater is expanding its reclaimed water (RCW) system to serve its Work Session 2009-06-15 13 residents with water for irrigation and other non-potable uses as outlined in the 2007 Reclaimed Water Master Plan Re-Evaluation dated May 2007. A cooperative funding agreement between Southwest Florida Water Management District (SWFWMD) and the City of Clearwater for the Skycrest Reclaimed Water Project (L695) approved by the City of Clearwater on May 17, 2007 provided funding for design, permitting and construction of reclaimed water transmission mains, distribution piping, a five (5) million gallon (MG) ground storage tank, and a high service pump station in the Skycrest area of Clearwater. As part of the agreement, SWFWMD will reimburse up to 50% of $10,838,000 involving all costs associated with this project. There are two (2) projects contained within the Skycrest Reclaimed Water Project (L695). Contract 1, the booster pump station project, involves the construction of a new 5MG RCW ground storage tank and pump station to be located at the existing City nursery site located at 901 North Saturn Avenue to enable the RCW system to meet peak demands. Contract 2, the transmission and distribution project, involves the construction of approximately 17,300 linear feet of transmission piping and 52,500 linear feet of distribution piping. The work involved with the transmission and distribution project involves providing reclaimed water to the following areas: south of Overlea Street to Gulf to Bay (SR 60) and west of Belcher Road to Saturn Avenue along with minor distribution piping at Countryside High School and the Pinellas County Government Complexes in Clearwater; and a new interconnect transmission system from Clearwater Country Club to Old Coachman Road along Maple Street, Hobart Avenue, Ridgewood Street, Duncan Avenue, Airport Drive, Marilyn Street, NE Coachman Road, Belcher Road, and Sharkey Road. The new interconnect transmission system, which will connect the City’s eastern RCW system to its western RCW system, will also interconnect the City’s three (3) wastewater treatment plants thus increasing the ability to move RCW to areas of high demand and dispose of plant effluent. There are approximately 700 single-family residential customers in the Project’s distribution service area. Nearly 500 residential irrigation customers are anticipated to connect to the system, of those, 450 customers are using potable water (224 have separate lawn meters and 42 are using deep wells). It is estimated that they will use 0.33 million gallons per day (mgd) of RCW to offset 0.17 mgd of potable quality water. Eight (8) commercial customers including Clearwater Golf Park (6,400 gallons per day (gpd) flow; 4,800 gpd offset water use permit (WUP) 011816), David Martin Baseball Complex (6,400 gpd flow; 4,800 gpd offset) are also anticipated to connect. In addition to the Skycrest portions of the project, this project also includes minor distribution piping around the City such as Countryside High School (60,000 gpd flow; 6,000 gpd offset WUP 007980), and to cooling towers at the Pinellas County Government Complexes in Clearwater (6,000 gpd flow; 6,000 gpd offset). The remaining commercial customers are churches, commercial properties, common areas and others within the Skycrest service area. It is estimated that these commercial customers will use approximately 0.08 mgd of RCW to offset more than 0.06 mgd of potable quality water. The requested $418,040.00 authorization for McKim & Creed provides Construction, Work Session 2009-06-15 14 Engineering, & Inspection (CEI) services during the construction period, which includes daily on-site construction inspection, engineering assistance with onsite observations and interpretations, review of shop drawings, attending meetings, and providing record drawings for the City of Clearwater related to both Skycrest RCW Projects (Contract 1: the booster pump station project and Contract 2: the transmission & distribution project). The Skycrest RCW Project – Contract 1: Booster Pump Station contract award is tentatively planned for the July 16 City Council meeting since the bid opening for this project is scheduled for June 18, 2009. The City is utilizing the Owner’s Direct Purchase (ODP) option for selected equipment, and the tax savings is estimated at $ 45,250.00. The contract period for construction of the new RCW transmission and distribution piping is 450 consecutive calendar days estimated to start in July 2009 and finish in September 2010. The Public Utilities Department shall own and maintain the proposed improvements included in this contract. Sufficient budget and funding with 2006 Water and Sewer Revenue Bond proceeds is available in project 0378-96739, Reclaimed Water Distribution System, in the amount of $186,061.35 ($183,595.00 for BPS and $2,466.35 for Trans and Distrib RCW). Sufficient budget and revenue are available in project 0315- 96739, Reclaimed Water Distribution system in the amount of $4,549,202.55 for a total of $4,735,263.90 for this contract. A Third quarter amendment will increase the budget for Other Governmental Revenues (337900) in project 0315-96739, Reclaimed Water Distribution System for SWFWMD’s share of these contracts in the amount of $2,827,995.95 as follows: Design- $460,364.00 Construction- $2,158,611.95 CEI- $209,020.00Total- $2,827,995.95 8.8 Award a contract to R.E. Purcell Construction Company, Inc., of Largo, Florida, in the amount of $1,109,657.62 for the construction of the South Gulfview Boulevard Reconstruction Project (07-0060-EN), which is the lowest responsible bid in accordance with plans and specifications, and authorize the appropriate officials to execute same. (consent) The South Gulfview Blvd Reconstruction Project consists of the reconstruction of the roadway base and asphalt, stormwater culverts, inlets, curbs, and sidewalks along South Gulfview Boulevard from 5th Street to Hamden Dr and from Bayway Boulevard to Gulf Boulevard, the reconstruction of the roadway base and asphalt, curbs, and sidewalks along Parkway Drive, the replacement of 4200 feet of water mains along South Gulfview Boulevard, and the adjustment of existing utilities at conflict locations throughout the project. The estimated time period for construction is 180 calendar days to start in August 2009 and finish in February 2010.Sufficient funding is available in Capital Improvement Program (CIP) projects as follows: $786,080.68 of Road Millage in 0315-92273, Streets and Sidewalks; $51,176.07 of Stormwater Utility revenue in 0315-96170, Coastal Basins Projects; $238,450.25 of 09 Water and Sewer Revenue bond proceeds in 0376-96752, Work Session 2009-06-15 15 Water Service Lines; $30,056.62 of 09 Water and Sewer Revenue bond proceeds in 0376-96665, Sanitary Sewer R&R; and $3,894.00 of Water Revenue in 0315-96739, Reclaimed Water Distribution System. The total funding of the contract is $1,109,657.62. 8.9 Approve the applicants request to vacate a portion of Turner Street right-of-way adjacent to property located at 600 S. Missouri Avenue, more particularly described in the ordinance, and pass Ordinance 8076-09 on first reading, (VAC2009-02 Ruth B. Marks Revocable Trust). The applicant is seeking the vacation in order to be allowed to rehabilitate the existing parking lot that encroaches approximately 5-feet into Turner Street right-of-way. The approximately eleven foot wide right-of-way subject of this request was deeded to the City in 1957 and was granted in addition to the 60-foot right-of-way of Turner Street that was dedicated by the Plat of Turner Street Groves in 1926. Bright House Networks has no facilities within the subject right-of-way and has no objections to the vacation request. Progress Energy, Verizon and Knology have facilities in the subject right-of-way but have no objections to the vacation request provided that a utility easement is retained over the full width of the right-of-way to be vacated. The City of Clearwater has a 6-inch water main in the subject right-of-way in addition to an existing public sidewalk that extends up to 5-feet into the north side of the subject right-of- way. The Engineering Department contemplates no future need of the subject right-of-way for street or curbing improvements. The Engineering Department has no objections to the vacation if a utility easement is retained over the full width of the right-of-way proposed to be vacated and a 5-foot sidewalk easement is retained over the northerly 5-feet thereof. 8.10 Approve the applicant’s request to vacate a portion of a 10-foot sewer easement located on the applicant’s property, (1884 N. Betty Lane),as more particularly described in the ordinance, subject to conditions of approval, and pass Ordinance 8061-09 on first reading, (VAC2009-01 Habitat for Humanity of Pinellas County, Inc.). The applicant, Habitat for Humanity of Pinellas County, Inc., is proposing to redevelop an 8.89-acre site into a 51 lot single-family subdivision. The subject easement portion lies in the front part of two of the proposed lots and the applicant is seeking the vacation of an approximately 100-foot long portion of a 10-foot sewer easement to facilitate the construction of new homes on the lots. A replacement easement is being provided on the plat of Stevens Creek Subdivision. The Community Development Board on May 19, 2009, approved the preliminary plat (PLT2009-00001) and a related Flexible Development application (FLD2009-03012). The applicant will relocate the sanitary sewer pipe into the new easement with the applicant bearing the sole cost of the relocation. Because the easement was deeded exclusively to the City to provide for the maintenance of the City’s existing sewer main the applicant was not required to obtain letters of no objection from the private utility Work Session 2009-06-15 16 companies. The Engineering Department supports the vacation request provided the request is conditioned to require the vacation to be null and void if the applicant does not 1) dedicate a replacement easement to the City of Clearwater and 2) at the property owner’s sole expense relocate the sanitary sewer line from the existing easement to the replacement easement in accordance with all applicable City of Clearwater Engineering Department construction requirements within one-year of the date of adoption of the ordinance. 8.11 Approve a supplemental work order in the amount of $35,500.00 to Malcolm Pirnie (EOR) of Tampa, Florida, for additional project related post-design engineering services for the Marshall Street APCF Process Air System Upgrade Project (07-0003-UT) for a total cost of $133,500 for CEI services, and authorize the appropriate officials to execute same. (consent) The Marshall Street Advanced Pollution Control Facility (APCF) Process Air System Upgrade Project, currently under construction at the Marshall Street APCF located at 1605 Harbor Drive, Clearwater, Florida, was approved by the City of Clearwater on June 5, 2008. The project consists of replacing the existing blowers, header piping, and diffusers to reduce the operational limitations and increase both process and energy efficiency at the facility. The construction contract period is for 670 calendar days, which started in July 2008 and is scheduled to finish in May 2010. Included with the City of Clearwater approval of the Marshall Street APCF Process Air System Upgrade Project was a post-design engineering services workorder for Malcolm Pirnie in the amount of $98,000.00, which involved limited engineering assistance with onsite observations and interpretations, review of shop drawings, attending meetings, and providing startup services, record drawings and certifications for the City of Clearwater. Contract administration was to be completed by the City’s Construction Services Department. Since the reduction of staff personnel is required in the Construction Services Department due to necessary budget cuts made by the City of Clearwater, additional post-design services are required for the remainder of the construction project. The requested $35,500.00 authorization for Malcolm Pirnie provides for those additional services during the construction period, including contract administration services. Sufficient budget and funding with 2009 Water and Sewer Revenue Bond proceeds is available in project 0376-96622, WWTP Aeration Improvements. 9. Planning 9.1 Approve Development Agreement between Decade Companies Income Properties (the property owner) and the City of Clearwater, providing for the allocation of units from the Hotel Density Reserve under Beach by Design and adopt Resolution 09-23. The 0.72 acres is located on the east side of Coronado Drive at the northeast and southeast corners of Devon Drive. The site is comprised of three parcels, two on the north side of Devon Drive and one on the south side of Devon Drive. The northern portion of the subject property is currently developed with a 22-unit motel at 101 Coronado Drive Work Session 2009-06-15 17 (Port Vue Motel) and vacant land (formerly a 16-unit motel). The vacant area is presently being used for construction trailers for the Hyatt/Aqualea project (301 S. Gulfview Boulevard). The southern portion of the subject property is currently vacant land (formerly a 15-unit motel), also being used for construction trailers for the Hyatt/Aqualea project. The proposal is for an overnight accommodation use of a total of 108 rooms (150 rooms/acre on total site, including the allocation of 72 units from the Hotel Density Reserve) and approximately 1,500 square feet (0.048 FAR on total site) of amenities accessory to the hotel at a height of 89 feet (to roof deck)On May 19, 2009, the Community Development Board (CDB) approved with 13 conditions of approval a Flexible Development application for the construction of a 108-unit hotel with associated amenities (FLD2009-03013). The proposal is in compliance with the standards for development agreements, is consistent with the Comprehensive Plan and furthers the vision of beach redevelopment set forth in Beach by Design. The proposed Development Agreement will be in effect for a period not to exceed ten (10) years, meets the criteria for the allocation of units from the Hotel Density Reserve under Beach by Design and includes the following main provisions: Provides for the allocation of 72 units from the Hotel Density Reserve; Requires the developer to obtain building permits and certificates of occupancy in accordance with Community Development Code (CDC) Section 4-407; Requires the return of any hotel unit obtained from the Hotel Density Reserve that is not constructed; For units allocated from the Hotel Density Reserve, prohibits the conversion of any hotel unit to a residential use and requires the recording of a covenant restricting use of such hotel units to overnight accommodation usage; and Requires a legally enforceable mandatory evacuation/closure covenant that the hotel will be closed as soon as practicable after a hurricane watch that includes Clearwater Beach is posted by the National Hurricane Center. The Community Development Board reviewed this Development Agreement application at its public hearing on May 19, 2009, and unanimously recommended approval of the application (DVA2009-00001). Item 9.1 was continued to August 6, 2009. 10. Legal 10.1 Approve filing a third-party complaint against general contractor Westra Construction Corp. in Divaco, Inc. v. City of Clearwater, Case: 07-2045-CI-15, and authorize an action against same to seek indemnification for damages and costs arising out of ongoing litigation matter. (consent) There is an ongoing lawsuit between Divaco, Inc. (owners of the Hi-Seas Motel), and the City of Clearwater (Case: 07-2045-CI-15) wherein Divaco has sued the City for several counts of inverse condemnation as a result of the Coronado Drive Improvement portion of the Beach Walk construction project (’project’). Council has previously granted permission to file a third-party complaint for damages, costs and/or indemnification in that action against Beach Walk contractor Post, Buckley, Schuh & Jernigan, Inc., relating to Work Session 2009-06-15 18 the design, construction, inspection and engineering of said project. During the discovery portion of this ongoing suit, sworn testimony has recently confirmed that employees and/or agents of Westra Construction Corp., construction contractor of the Coronado Drive portion of the project, may have breached its contract with the City for construction of certain Coronado Drive Improvements. Of particular interest to the City, is the alleged placement of asphalt onto the Hi-Seas motel property by employees and/or agents of Westra Construction Corp. without permission from either the property owner(s) or the City of Clearwater. Staff recommends that Westra Construction Corp. be sued as a third-party defendant in the Divaco case so contribution and/or indemnification may be sought within the context of the ongoing Divaco case. It should be noted that the final decision on the City’s ability to file this third-party suit is subject to the court’s review and approval of outside counsel’s Motion for Leave to File Suit. The suit will be pursued in-house to the greatest extent possible, unless it becomes apparent that outside counsel is necessary for reasons of subject-matter expertise. 10.2 Approve a Zoning Atlas Amendment from Business (B) District to Tourist (T) District for property located at 1241, 1261, and 1281 Gulf Boulevard consisting of Lot 1, Subdivision of Radisson Bayside Hotel, and Pass Ordinance No. 7909-08 on first reading. The Circuit Court of the Sixth Judicial Circuit, in its Order and Opinion dated December 1, 2008 in D.A. Bennett Company v. City of Clearwater, Case No. 08-0019AP-88A, reversed and remanded the decision of the City Council denying approval of Ordinance No. 7909- 08 to the City Council "to amend the Shoppes zoning district to Tourist" and "for further action consistent with this Order and Opinion." The City’s Petition for Writ of Certiorari to the Second District Court of Appeal seeking review of the Circuit Court decision was denied without opinion. Therefore this Ordinance is being agendaed as a remand for first reading. It was stated that the City was ordered by the court to rezone the district Tourist. City can be held in contempt if Council does not approve rezoning. 10.3 Adopt Ordinance No. 8025-09 on second reading, amending Article VII, Solid Waste Management, Sections 32.271 through 32.322, Appendix A., Schedule of Fees, Rates, and Charges, Article XXV, Public Works Fees, Rates, and Charges, Section (3)(c) Solid Waste Collection Rates through solid waste roll-off container or waste receptacle service (5)(b)(ii)(7), Clearwater Code of Ordinances. 10.4 Adopt Ordinance No. 8069-09 on second reading, amending Chapter 22, Parks, Beaches, Recreation, Article II, Use Regulations, Section 22.24(2) modifying park hours for Mandalay Park. 10.5 Adopt Ordinance No. 8074-09 on second reading, amending Section 22.40, Clearwater Code of Ordinances, to require the leashing of dogs located at specified areas on Clearwater Beach and requiring the removal of pet defecation. 10.6 Adopt Ordinance No. 8075-09 on second reading, relating to fireworks displays, Work Session 2009-06-15 19 amending Subsection (2)(a) of Section 17.06, Clearwater Code of Ordinances, to prohibit the issuance of permits on specified areas of Clearwater Beach during specified times. 11. City Manager Verbal Reports 11.1 Update on Beach Parking Garage Negotiations At the May 7, 2009 City Council meeting Council directed City staff and the principals of the two proposed beach parking garage parcels owned by Surf-Style, Inc. and Mainstream America, Inc. respectively, to meet and complete negotiation of “best and final” term sheets for presentation to the Council in 30 days. Given the Council meeting schedule, the June 18th meeting was the most practicable date for a report. The Council indicated at the May meeting that they wished to be in a position to choose a preferred development partner at that time, after reviewing and discussing the “best and final” term sheets within the context of the policy and financial guidelines established by Council for the project, and authorize staff to proceed with negotiation of implementing documents with the preferred developer to enable a beach parking garage to be constructed as soon thereafter as practicable. Staff has met with both development teams in an attempt to refine and conform their proposals as close as possible to Council expectations. To summarize, Mainstream America is proposing a joint development with a retail component and 50 parking spaces to support that retail owned by Mainstream America. The City would acquire initially, through purchase and condominium ownership, 300 parking spaces at a cost $33,000 per space. After the expiration of the Hyatt development agreement parking restriction, the City would have the ability to purchase up to 200 additional spaces at a $37,000 per space price. In the interim, Mainstream America would own the latter spaces. The “blended” cost o the City, should they ultimately acquire 500 spaces, would be $34,600, with a total cost of $17,300,000.LOM Inc., on the other hand, proposes to construct, finance and own a 30,000 square foot retail/commercial project, combined with a 300 space parking garage. The parking would be privately owned and operated, but available at all times to the public and built to City parking standards. The agreement would provide that if LOM were to default on their financial obligations to their bank for the parking structure portion of the project, during the first 5 years of operation, the bank could foreclose on the parking garage and require the City to acquire the parking garage at a “put” price of $9,300,000. Should the “put” option be exercised, per space cost to the City would translate to $ 31,000.While staff has met with both proposers and the negotiations have produced term sheets in both instances, staff continues to have concerns about various components of each proposal which, in discharging our fiduciary duty to Council to fully disclose issues/concerns about the proposals, we are delineating as follows: Mainstream America Proposal · The Mainstream proposal indicates cost per space sale to the City of $ 33,000 per space for an initial 300 spaces, and $37,000 per space for additional spaces in 2015. This pricing is not supported by the land value established by two land appraisals conducted for the City in the past six months, combined with estimated construction costs per space established by the City Engineering Department and confirmed by our parking consultant who independently established construction cost parameters. Utilizing the latter land values and construction cost estimates, a reasonable and Work Session 2009-06-15 20 appropriate cost per space would fall in the $28,000-$29,000 range. This estimate includes a 3% developer fee and is based upon the highest possible land value calculation in the two city appraisals (2.9M).Other less robust land value appraisals would have significantly lowered the per space value, based on diminished land value. Mainstream America is basing their proposal upon the commercial value of the land as “highest and best use”. However, the City is acquiring a condominium interest for use as a public parking facility, not a commercial development, and the land valuation basis is significantly different. We note, additionally, that under the Mainstream proposal, as staff understands it, Mainstream would retain the development rights on the entire site for use as they develop the overall project. This “captures” additional commercial value off the City condominium interest which staff does not believe is appropriately reflected in the price to the City. There are additional economic benefits generated by this proposed public/private partnership that staff believes should be reflected in a lower price point to the City, such as a possible “flex down” of required retail parking ratios due to proximity to a public parking structure; apportioned cost for common elements of the facility that the developer would otherwise have to fully underwrite, etc.. · At this time staff does not have conceptual agreement with Mainstream on a garage design that could meet “City” criteria for our acquisition and operation as an acceptable City parking facility. The design submitted to the DRC for review was not accepted by City staff for use as a “City” parking facility, either in previous or current negotiations, and includes elements that would adversely impact the success of the structure as a parking garage. We have preliminarily discussed alternate arrangements with Mainstream, but no agreement has been reached. This introduces an element of uncertainty that could affect the ability to reach successful agreement, although Mainstream has indicated flexibility in developing a concept that would incorporate the requirements for a “City” facility. · The Mainstream America proposal has been developed and conceived within the broader context of maintaining “contiguity” of the three parcels recently acquired from iStar, with the intent of maximum application and movement of density across the parcels. This would benefit Mainstream in consolidating density on the parcel abutting Beach Walk to maximize development potential on the most valuable parcel and may affect development on the additional parcels (as well as the Beach Walk parcel). Staff is concerned that any agreement reached with Mainstream America not be construed in any way as entitling any development approvals on the primary or additional parcels. Matters of use, density, intensity, including use of hotel units from the density reserve for the additional parcels, would be subject to subsequent review and approval of site development plans pursuant to the Community Development Code and Beach By Design. In addition, development agreements would be required for any development which utilizes density reserve units. No guarantees of future use, density or intensity of development can be assumed from acceptance of a term sheet for this project. LOM, Inc. Proposal · The LOM proposal is based upon FEMA approving a map amendment to change the Work Session 2009-06-15 21 flood zone for the property from VE to AE, thus allowing the construction of 30,000+/- square feet of retail on the ground floor of the structure to enhance the commercial performance of the project. LOM, Inc. seeks to support their FEMA map change by proposing construction of an 18” “knee wall in front of the project site on City Beach Walk property, which would have to be approved and supported by the City.LOM has estimated that the FEMA process could take 6-8 months (and could extend longer, in staff opinion), and while they believe the likelihood of success is high, approval is not assured. Should the FEMA application fail, LOM plans to apply to the Clearwater Flood Board for a variance to allow the use. Staff feels that the FEMA application is not assured, and Flood Board approval following a FEMA denial would be uncertain. LOM has been unwilling to unconditionally agree that they would proceed with the project if both avenues to allow the permanent retail are unsuccessful, as the City Council had requested at the May City Council meeting. Thus, under the LOM proposal the City Council could face the possibility that at the end of the FEMA process, extending a possible 8 months, LOM would withdraw from the project and the City would have no beach garage project. Assurances should be sought from LOM that they would proceed if Council cooperates with the time delay for the FEMA application. Staff is concerned that any agreement as proposed with LOM should include language/assurances that the garage be constructed, operated and maintained by LOM to City standards. Should the City be required to assume ownership of the parking structure under the “put” option, the City would want a structure that is in good operational and structural condition. In response to questions, Assistant City Manager Rod Irwin said LOM wants a permanent facility on the ground level. If FEMA does not approve the map change request, LOM will go before the Flood Board with a variance request. LOM will not guarantee to move forward if retail on ground level is not approved. It was stated that LOM will go forward with the map change request if Council approves. Further clarification is needed if FEMA does not approve request. Coastal Engineer Christie Rush said the proposed wave dissipating wall changes the flow of water as it comes in from the gulf. Top elevation would be 7 feet above sea level. The wall is very low and will have no negative impact to surrounding properties. Ms. Rush said the wall follows the alignment of the sidewalk and ties into existing access. FEMA feedback is expected within 30 days. It was stated that staff received a proposal from Mainstream for a 6 story garage. Discussion ensued with concerns expressed regarding impact to City if Mainstream defaults. Work Session 2009-06-15 22 It was stated that the development agreement would address maintenance standards and time tables. Discussion ensued regarding traffic and pedestrian safety. Staff was directed to provide information regarding one-way pair. 12. Council Discussion Items 12.1 Reclaimed Water Availability Fee Public Utilities Director Tracy Mercer reviewed history of reclaimed water. In 2007, the city revised ordinance to implement availability fee and provide incentives for those with wells to hook up to reclaimed water. Estimated cost for a well is $3,000 - $5,000. It was stated that the cost is spread out over all the rate payers. Staff directed to provide information on reclaimed water fees, the money generated via meters and availability fee, and total cost. 12.2 Tossing Balls and Frisbees in Parks - Councilmember Cretekos Item 12.2 was continued to next work session. 13. Other Council Action 13.1 Other Council Action Mayor Frank Hibbard said postal offices at Cypress Point and Clearwater Beach will be closing. Staff directed to write a letter requesting that the offices at Cypress Point and Clearwater Beach not be closed. 14. Adjourn The meeting adjourned at 1:20 p.m. 15. Presentation(s) for Council Meeting 15.1 2009 Clearwater High Schools Valedictorians and Salutatorians 15.2 Vacant, Foreclosed, and Abandoned Properties Work Session 2009-06-15 23