06/18/2009
CITY COUNCIL MEETING MINUTES
CITY OF CLEARWATER
June 18, 2009
Present: Mayor Frank Hibbard, Vice-Mayor Paul Gibson, Councilmember George N. Cretekos,
Councilmember John Doran and Councilmember Carlen Petersen.
Also present: William B. Horne II - City Manager, Jill S. Silverboard - Assistant City Manager,
Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, Cynthia E. Goudeau - City
Clerk and Rosemarie Call - Management Analyst.
To provide continuity for research, items are in agenda order although not necessarily
discussed in that order.
1. Call to Order
The meeting was called to order at 6:00 p.m. at City Hall.
2. Invocation - Mayor Frank Hibbard
3. Pledge of Allegiance - Mayor Frank Hibbard
4. Presentations
4.1 Service Awards/Team Award
Three service awards were presented to City employees.
4.2 2009 Clearwater High Schools Valedictorians and Salutatorians
5. Approval of Minutes
5.1 Approve the minutes of the June 4, 2009 City Council Meeting as submitted in written
summation by the City Clerk.
Councilmember Carlen Petersen moved to approve the minutes of the June 4, 2009 City
Council Meeting as submitted in written summation by the City Clerk. The motion was duly
seconded and carried unanimously.
6. Citizens to be Heard re Items Not on the Agenda
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Anne Garris questioned the need for tax increment financing for downtown.
Public Hearings - Not before 6:00 PM
7. Administrative Public Hearings
7.1 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
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 $319,417.77 from the Druid Road
Improvements project will provide the funding necessary for the construction.
In response to a question, it was stated that parking on the west end of the causeway
is temporary during construction of Aqualea and will be removed once that structure is
completed.
Councilmember George N. Cretekos moved to 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 Improvements project to the Beach Connector Trail project.
The motion was duly seconded and carried unanimously.
7.2 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
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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
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.
Vice-Mayor Paul Gibson moved to 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. The motion was duly
seconded and carried unanimously.
Ordinance 8061-09 was presented for first reading and read by title only. Councilmember
Carlen Petersen moved to pass Ordinance 8061-09 on first reading. The motion was duly
seconded and upon roll call, the vote was:
"Ayes": Cretekos, Doran, Gibson, Petersen and Hibbard.
"Nays": None.
7.3 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.
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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.
Councilmember John Doran moved to approve the applicant's request to vacate a portion of
Turner Street right-of-way adjacent to property located at 600 S. Missouri Avenue. The motion
was duly seconded and carried unanimously.
Ordinance 8076-09 was presented for first reading and read by title only.
Councilmember Carlen Petersen moved to pass Ordinance 8076-09 on first reading.
The motion was duly seconded and upon roll call, the vote was:
"Ayes": Cretekos, Petersen, Doran, Gibson, and Hibbard.
"Nays": None.
7.4 Continue 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 to August 6, 2009.
Vice-Mayor Paul Gibson moved to continue 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 to August 6, 2009.
The motion was duly seconded and carried unanimously.
8. Quasi-judicial Public Hearings
Note: 8.1 not a quasi-judicial public hearing.
8.1 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.
In response to a question, Assistant City Attorney Leslie Dougall-Sides said there were no
grounds to appeal further.
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It was stated that the City could be held in contempt if Ordinance 7908-08 is not approved.
Councilmember Carlen Petersen moved to 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. The motion was duly seconded and
carried unanimously.
Ordinance 7909-08 was presented for first reading and read by title only.
Councilmember John Doran moved to pass Ordinance 7909-08 on first reading. The
motion was duly seconded and upon roll call, the vote was:
"Ayes": Cretekos, Petersen, Doran, Gibson, and Hibbard.
"Nays": None.
9. Second Readings – Public Hearing
9.1 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.
Ordinance 8025-09 was presented for second reading and read by title only. Councilmember
George N. Cretekos moved to adopt Ordinance 8025-09 on second and final reading. The
motion was duly seconded and upon roll call, the vote was:
"Ayes": Cretekos, Petersen, Doran, Gibson, and Hibbard.
"Nays": None.
9.2 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.
Ordinance 8069-09 was presented for second reading and read by title only. Vice-Mayor Paul
Gibson moved to adopt Ordinance 8069-09 on second and final reading. The motion was duly
seconded and upon roll call, the vote was:
"Ayes": Cretekos, Petersen, Doran, Gibson, and Hibbard.
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"Nays": None.
9.3 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.
Ordinance 8074-09 was presented for second reading and read by title only. Councilmember
Carlen Petersen moved to adopt Ordinance 8074-09 on second and final reading. The motion
was duly seconded and upon roll call, the vote was:
"Ayes": Cretekos, Petersen, Doran, Gibson, and Hibbard.
"Nays": None.
9.4 Adopt Ordinance No. 8075-09 on second reading, relating to fireworks displays,
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.
Ordinance 8075-09 was presented for second reading and read by title only. Councilmember
John Doran moved to adopt Ordinance 8075-09 on second and final reading. The motion was
duly seconded and upon roll call, the vote was:
"Ayes": Cretekos, Petersen, Doran, Gibson, and Hibbard.
"Nays": None.
10. Consent Agenda - Approved as submitted.
10.1 Approve settlement of the liability claim of Gregory Bidlow for payment of $45,000.
(consent)
10.2 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)
10.3 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)
10.4 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)
10.5 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.
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(consent)
10.6 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)
10.7 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
June 30, 2010 and authorize the appropriate officials to execute same. (consent)
10.8 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)
10.9 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)
10.10 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)
10.11 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)
10.12 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)
10.13 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)
10.14 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
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engineering services, for a total project amount of $4,735,263.90, and authorize the
appropriate officials to execute same. (consent)
10.15 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)
10.16 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)
10.17 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)
Councilmember John Doran moved to approve the Consent Agenda as submitted and that the
appropriate officials be authorized to execute same. The motion was duly seconded and carried
unanimously.
City Manager Reports
11. Other Items on City Manager Reports
11.1 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
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.
Councilmember George N. Cretekos moved to amend the City’s fiscal year 2008/09 Operating
and Capital Improvement Budgets at Mid Year. The motion was duly seconded and carried
unanimously.
Ordinance 8077-09 was presented for first reading and read by title only. Vice-Mayor
Paul Gibson moved to pass Ordinance 8077-09 on first reading. The motion was
duly seconded and upon roll call, the vote was:
"Ayes": Cretekos, Petersen, Doran, Gibson, and Hibbard.
"Nays": None.
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Ordinance 8078-09 was presented for first reading and read by title only.
Councilmember Carlen Petersen moved to pass Ordinance 8078-09 on first reading.
The motion was duly seconded and upon roll call, the vote was:
"Ayes": Cretekos, Petersen, Doran, Gibson, and Hibbard.
"Nays": None.
Award a contract to Gregory Electric Company, Inc. of Naples, Florida in the amount of
11.2 $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.
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
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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.
In response to questions, Engineering Manager Rob Fahey indicated that reclaimed water is
estimated to be available by August 2010 and that all water from wells, whether deep or
shallow, impact potable water resources.
Councilmember George N. Cretekos moved to 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. The motion was duly seconded
and carried unanimously.
11.3 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
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Distribution system in the amount of $6,400.00 for this agreement.
Vice-Mayor Paul Gibson moved to 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. The motion was duly seconded and carried
unanimously.
Resolution 09-27 was presented and read by title only. Councilmember John Doran moved to
adopt Resolution 09-27 and authorize the appropriate officials to execute same. The motion
was duly seconded and upon roll call, the vote was:
"Ayes": Cretekos, Petersen, Doran, Gibson, and Hibbard.
"Nays": None.
Miscellaneous Reports and Items
12. City Manager Verbal Reports
12.1 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
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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
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.
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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
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.
Assistant City Manager Rod Irwin reviewed changes since Monday’s meeting. Mainstream
reduced pricing from $33,000 to $32,000/space for phase 1 and from $37,000 to $36,000/space
for phase 2.
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It was stated that staff has reviewed LOM’s plans and raised no concerns however, they must
still complete the regulatory process. If FEMA does not approve the map change request, LOM
will go before the Flood Board and request a variance for retail on first floor.
Coastal Engineer Kristie Rush said FEMA has 90 days to issue a letter from the time the file is
complete. The project manager has promised to assist meeting deadline. If FEMA does not
approve the map change request, LOM will not develop a dune on the site.
It was stated that if the property is foreclosed within 5 years, the lender would have the right to
require the City to purchase the units. Parking rates have not been discussed yet. The Hyatt
was required to have rates comparable to other beach front garages. The development
agreement will include timeframes and construction standards.
Three individuals spoke in support of the Mainstream proposal.
Discussion ensued with concerns expressed with pedestrian safety and concentrating parking in
one area. It was suggested that converting Hamden and Coronado to a one-way pair be
considered.
Councilmember Paul Gibson moved to direct the City Manager and City Attorney to negotiate a
development agreement and other necessary and appropriate documents with LOM, Inc.,
owners of Surfstyle/Britts, in accordance with the term sheet presented to the City Council at
the Council Work Session on June 15, 2009 as clarified at the City Council meeting on June 18,
2009. The motion was duly seconded and carried unanimously.
The Council recessed from 7:37 p.m. to 7:49 p.m.
13. Council Discussion Items
13.1 Reclaimed Water Availability Fee
Public Utilities Director Tracy Mercer reviewed the history of reclaimed water and original
timeframe for Coachman Ridge. There were over 22 projects originally. As
approached Morningside, high well counts became a concern. The purpose of the availability
fee was to cover some of the infrastructure cost.
Engineering Manager Rob Fahey said prior to the Master Plan, Coachman Ridge residents
expressed a desire for reclaimed water but their location was far from the water plant facilities.
It was more cost effective to start the project near the water plant facilities on Marshall Street.
Also when Southwest Florida Water Management District cooperative funding became
Council 2009-06-18 14
available, different criteria had to be met.
In response to questions, Mr. Fahey said reclaimed water is provided to conserve potable water
and reduce discharge into Tampa Bay and Stevenson Creek. Ms. Mercer reviewed incentives
to hook up to reclaimed water and said well exemptions would terminate with sale of property.
Well owners may water 1 day a week. Those on reclaimed water may water 7 days a week.
Three individuals spoke in opposition and one individual in support.
Discussion ensued. Concerns were expressed with information provided to Coachman Ridge
residents and the need to conserve potable water.
Councilmember George N. Cretekos moved to waive payment of availability fee by those with
wells: for 1 year for individuals who do not hook up to reclaimed water and 2 years for those
who hook up to reclaimed water in Coachman Ridge, Clearwater Harbor, Glen Oaks/Palmetto
and Skycrest areas. The motion was duly seconded and carried unanimously.
13.2 Vacant, Foreclosed, and Abandoned Properties - Mayor Hibbard
Development and Neighborhood Services Director Jeff Kronschnabl provided a power point
presentation. Pinellas County ranks 28 in a national foreclosure survey. Foreclosed properties
create urban blight and negative property values. Since April 2009, there are over 1,300
foreclosed properties in Clearwater. Staff recommends instituting a vacant property registration
ordinance.
In response to a question, Mr. Kronschnabl said banks are allowing people to live in homes for
low rent to avoid abandoning the property.
Consensus was to develop an ordinance that requires registration of foreclosed properties.
14. Other Council Action
14.1 Other Council Action
Mayor Frank Hibbard requested the PPC (Pinellas Planning Council) agenda a MPO
(Metropolitan Planning Organization) presentation regarding the need for transit oriented
development. Councilmember John Doran, the city’s PPC representative, will make the
request.
Council 2009-06-18 15
Councilmembers reported on events in which they recently participated and reviewed upcoming
events.
Councilmember Carlen Petersen urged support for non-profits.
Vice-Mayor Paul Gibson thanked Council for supporting beach parking garage.
Mavor Frank Hibbard recognized police officer Paul Blamer, who just returned from serving in
Afghanistan, and urged true appreciation for all who are and have served.
Adiourn
The meeting adjourned at 9:32 p.m.
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Council 2009-06-18
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