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08/04/2008 CITY COUNCIL WORKSESSION MINUTES CITY OF CLEARWATER August 4, 2008 Present: George N. Cretekos Vice-Mayor John Doran Councilmember Carlen Petersen Councilmember Paul Gibson Councilmember Absent: Frank Hibbard Mayor 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 Patricia O. Sullivan Board Reporter The Vice-Mayor called the meeting to order at 1:30 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Presentations Fire Recruit Class #11 Graduation/Oath The City Clerk administered the Oath of Office to five Fire Recruits. Financial Services Declare the list of vehicles and equipment surplus to the needs of the City and authorize disposal through sale to the highest bidder at the Tampa Machinery Auction, Tampa, Florida, and authorize the appropriate officials to execute same. (consent) All vehicles and equipment listed have been replaced as necessary and are no longer required. Tampa Machinery Auction is the Pinellas County Purchasing Cooperative Auctioneer of Record. Solid Waste/General Services Assistant Director Rick Carnley said the police cruiser with less than 66,000 miles has had significant mechanical problems. Authorize the Negotiated Sale of not to exceed $12,900,000 City of Clearwater Improvement Revenue Bonds, Series 2008 to Branch Banking and Trust Company (BB&T) to finance a portion of the project costs incurred to construct the Downtown Boat Slips and Beach Walk and adopt Resolution 08-17. The Council previously adopted resolutions 06-08 and 07-13 establishing the intent to reimburse certain project costs incurred to construct Beach Walk and the Downtown Boat Slips Council Work Session 2008-08-04 1 with the proceeds from future tax-exempt financing. Raymond James and Associates, Inc., the City’s Financial Adviser, has determined the most favorable financing vehicle currently available is a negotiated bank loan. A RFP (Request for Proposals) was issued on July 1, 2008, to solicit interested banks and financial institutions to provide the loan and the City received three competitive proposals. These proposals were compared to what the City could expect from a traditional bond sale to insure that the City is using the best financing option. Branch Banking and Trust Company (BB&T) submitted the proposed loan package that provides for the most advantageous financing option for the City. The loan will be for $12.9 million at 4.66% fixed rate interest repaid over 20 years. The Beach Walk portion of the debt payments will be paid from the General Fund and has a maximum annual debt payment of $295,630. The preliminary 2009 budget includes $315,000 for the Beach Walk debt payment. The Boat Slips portion of the debt payments includes two years of capitalized interest (borrow two years of interest payments as well as the cost of construction) and has no principal payment until the third year. This is to enable the construction of the boat slips and start up of the operation prior to beginning to repay the debt. The maximum annual debt payment is $763,668. These debt services payments will be made from the Downtown Boat Slips Enterprise Fund from revenue generated from the Boat Slips. An updated proforma schedule for Downtown Boat Slips, shows slips in operation for three months in FY (Fiscal Year) 2009 (expected opening July 2009) and includes updated debt payments. This schedule shows an average of over $222,000 net income (cash basis) over the course of the 40-year expected life. The Enterprise Fund, as well as appropriate debt service funds, will be established at the time the bonds are issued. An agenda item will be brought forward to the Council in FY 2009 requesting the establishment of the appropriate budget in the Boat Slip Enterprise Fund and FTEs (Full-Time Equivalents) to operate the boat slips when completion of construction gets closer and a firm date for the opening of the facility is determined. Closing on these bonds is anticipated to be on August 12, 2008. Finance Director Margie Simmons said interest rates are higher than projected. Due to municipal bond market problems, the loan package provided a better rate than traditional bonds. The project cost overrun was funded through other sources. Information Technology Award a contract to Dolphin Communications Services, Inc., St. Petersburg, FL in the amount of $312,798, for the installation of conduit and fiber optic cable in support of emergency operations preparedness at various City facilities and authorize the appropriate officials to execute same. (consent) The City's Emergency Management Committee has determined that the recently renovated Station 48 training facility needs to be equipped to function as an EOC (Emergency Operations Center) for this hurricane season. The timing of this decision and the need to provide for additional scalable technology support services at this location requires that the installation of fiber optic cabling be expedited to support this EOC. This vendor is recommended based upon past performance, cost competitiveness, and familiarity with the City's existing fiber deployment. The renovated Station 48 is a reinforced Council Work Session 2008-08-04 2 structure rated to withstand Category 5 storm intensities. This facility will provide back-up data and voice communications support on the City's wide area network, and will be capable of providing primary support for operations in the event that the MSB (Municipal Services Building) and Police Main Buildings are rendered unusable for any reason. Information Technology Director Dan Mayer said the City will have two EOCs. The Police Department EOC is more efficient for non-weather events. As bidding would have added up to 12 weeks to the process, this installation was expedited to ready the Station 48 EOC as soon as possible. While the entire project will take 90 days to complete, the Station 48 EOC could be operational in 30 days. Opposition was expressed to no-bid contracts. Assistant City Manager Jill Silverboard said staff decided to move forward after the Police EOC building was rated to only withstand a low Category one storm. Parks and Recreation Award a blanket purchase order to Chall Tennis Management, LLC of Clearwater, Florida, in the amount of $250,000, for providing tennis lessons and tennis services at the Henry L. McMullen Tennis Complex and authorize appropriate officials to execute same. (consent) The City provides for group and private tennis instruction at McMullen Tennis Complex by entering into a standard outside instructors agreement with a tennis pro. Currently, the tennis pro at McMullen is Erick Chall, who is operating under the business name of “Chall Tennis Management, LLC.” Mr. Chall has performed this service for the City for the past several years and the programs and lessons he has provided have grown to such an extent that he has hired several employees to assist him. Mr. Chall’s current agreement runs from June 2008 to September 30, 2009. He receives 75% of all fees collected for tennis instruction and lessons and 85% of all stringing and merchandise sold at McMullen. In order to pay Chall Tennis Management, LLC from October 1, 2008 to September 30, 2009, staff is requesting a Blanket Purchase order in the amount of $250,000 be approved. During this fiscal year, Mr. Chall and other tennis professionals have been paid $147,961.32. The increase is being requested to cover the current growth trend in tennis instruction. Projected revenue generated by the pro for the City will be approximately $50,000 to $60,000 in FY 2008/09. Parks & Recreation Director Kevin Dunbar said this contract was bid previously. This action converts the contract to the LLC. The merchandise rate is consistent with special interest City contracts. Adopt revised formulas for the purpose of computing fees for non-residents to participate at City recreation facilities and in City recreation programs and activities; eliminate some of the options in lieu of non-resident card purchase; approve the City Manager or his or her designee to change the surcharge factor; and pass Ordinance 7983-08 on first reading. On February 2, 2005, the City Council revised a 1993 formula for the purpose of computing fees for non-residents and approved the City Manager or his designee to administer the formula. The formula adopted at that time: Department O & M Budget plus Indirect Council Work Session 2008-08-04 3 Overhead minus Budgeted Revenue divided by Population equals Subtotal. Subtotal plus Capital Recovery Component plus Card Processing Fee equals Non-Resident Yearly Fee. One of the City’s Tier 1 budget initiatives is to modify the formula by adding a surcharge recovery fee to this formula. If approved, the surcharge recovery fee may be adjusted by the City Manager or his or her designee in order to address the economic climate. In addition, as part of this recommendation the elimination of some of the options in lieu of non-resident card purchases are included. Specifically, options to be eliminated are as follows: 1) Participants of youth seasonal recreation programs and 2) Participants at Lawnbowls, Shuffleboard, Horseshoe Club and Three-Score Softball. This then would require all participants in these programs and organizations to purchase a non-discounted individual non-resident card based on the approved formula. If approved, these changes will result in approximately $115,000 in additional revenue. The new fees and elimination of discounted fees will take effect on October 1, 2008. As a matter of information, the resident recreation card will be increased from $5 per person and $25 per family to $7 per person and $35 per family beginning October 1, 2008. Based on the new formulas, the proposed fees for non-residents are as follows: 2007/08 Proposed 2008/09 Proposed 2008/09 Current Rates Based on Rates Based on Rates Current Ordinance Proposed Ordinance Annual Individual Card (IC) $90 $120 $180 Annual Family Card (IC x 2.5) $225 $300 $450 Single Season Sports Fee (IC x 40%) $36 $48 N/A Youth Seasonal Rec Program (IC x 40%) $36 $48 N/A Adult Seasonal Rec Program (IC x 40%) $36 $48 N/A Lawnbowl, Shuffleboard, Horseshoe Club, $36 $48 N/A and Three-Score Softball (IC x 40%) Mr. Dunbar said the City subsidizes Lawnbowl, Shuffleboard, and Horseshoe Club. Most participants are not residents. It was recommended that these sports be cancelled if interest subsides. Police Approve renewing a contract with the Pinellas County Sheriff’s Office, Largo, Florida, for latent fingerprint, crime scene processing, evidence and property storage and Pinellas Juvenile Assessment Center services, during the one year contract period commencing October 1, 2008, through September 30, 2009, at a cost of $647,362 and authorize the appropriate officials to execute same. (consent) The Pinellas County Sheriff’s Office (PCSO) and the Clearwater Police Department (CPD) began annual contractual agreement for services in January 1994. The agreements covered latent fingerprint examination, property/evidence storage, and crime scene processing Council Work Session 2008-08-04 4 services. The total cost of the proposed FY 2008/2009 agreement is $647,362. The contractual price reflects an increase of approximately 14% for currently provided services and an additional $57,362 for PJAC (Pinellas Juvenile Assessment Center) security. CPD has never been charged for this service. The proposed contractual agreement reflects the following breakout of costs: Fingerprint Services - $95,620; Forensic Science Services (Crime Scene Processing) - $352,000 (2,200 calls @ $160 per call), requests for services in excess of 2,200 calls will be invoiced monthly at a rate of $160 per call. In addition, any funds from unused calls for service from FY 2008/2009 shall be applied toward the following year’s contractual agreement; Evidence and Property Service and Storage - $142,380. This cost is inclusive of personnel and storage costs, and is an increase of $79,878 over FY 2007/2008 charges for the same category. The Sheriff's previous charges have not covered that department’s cost for providing these services. In order to bring the fees up to a level to cover those costs, rates will be increased over the next two years. This year's increase represents the main reason for the 14% overall increase in the cost for this contract. Additionally, for the first time, PCSO is charging all Pinellas County law enforcement agencies their respective share of the cost of providing security for the Pinellas Juvenile Assessment Center. Clearwater's share is $57,362, based on the number of juvenile bookings made by CPD into PJAC the previous year, totaling 667, reflecting a cost of $86 per booking. Billing for requests for service in excess of the 667 bookings during the term of this contract shall be invoiced at the rate of $86 per booking. Any excess funds from unused bookings will carry over to the following year. Police Chief Sid Klein said the City often uses fewer services than contracted. The PCSO is the only provider of these services; in-house services would cost more. The Sheriff is phasing in the full cost of increases that resulted from County budget cuts. The City Manager said rate increases for municipalities that contract PCSO police services are approaching 25%. Approve acceptance of a FY 2008 Department of Justice, Bureau of Justice Assistance (DOJ/BJA) grant in the amount of $99,730 for a one-year period to fund the Clearwater Area Task Force on Human Trafficking Immersion Training Project. (consent) On October 18, 2006, the City Council approved the acceptance of the Clearwater Police Department’s Law Enforcement Task Forces and Services for Human Trafficking Victims Grant from DOJ/BJA (Department of Justice, Bureau of Justice Assistance). In less than two years, the Clearwater Area Task Force on Human Trafficking (CATFHT) has come to be recognized as a model program by DOJ/BJA. As a result, CATFHT has been invited by DOJ/BJA to serve as a Human Trafficking Task Force Leadership and “Immersion Training” Site. The purpose of this grant is to promote visits by other Human Trafficking Task Forces to Clearwater in order to help them work more effectively in identifying and rescuing victims of human trafficking, and prosecute traffickers. The grant is awarded to cover any expenses in time and equipment incurred by the City and its non-profit partners to deliver the immersion training. It is anticipated that the work associated with this grant project will be multi-faceted in scope and delivery and goes beyond the scope of CATFHT’s current human trafficking grant Council Work Session 2008-08-04 5 project and funding. The work includes, but is not limited to, the following: 1) assist in the original development of subject matter content for the immersion learning process; 2) assist in the identification of “best practices” that a new or existing Human Trafficking Task Force might want to consider as part of a model task force implementation; and 3) serve as a training location for selected task forces identified by DOJ/BJA and provide intense training to selected attendees in the form of mentoring, coaching, advising and demonstration of successful practices. All supplies, equipment, overtime and contractual services will be utilized to perform the above-referenced tasks and is in line with suggested DOJ/BJA budget line items for this project. Per DOJ/BJA directives, CPD is required to utilize a portion of the grant funds to reimburse the non-governmental organizations that are participating in the project and CATFHT. This includes the YWCA of Tampa Bay, World Relief, Gulfcoast Legal Services, and the St. Petersburg Regional Community Policing Institute (RCPI). Costs associated with this project will include: overtime for police officers; travel expenses; two laptop computers; an LCD projector; video teleconferencing system; speaker phone system; fax machine; wireless microphone system; miscellaneous office supplies (paper, pens, etc.); printing/graphics of pamphlets/information cards; vehicle rental; update of CATFHT website; and contractual services provided by the YWCA, World Relief, Gulfcoast Legal Services, and RCPI. The two laptop computers to be purchased will be donated to the YWCA and World Relief, as arranged through Clearwater’s Information Technology Department. Contractual agreements between the City of Clearwater and the YWCA of Tampa Bay; World Relief Tampa; Gulfcoast Legal Services; and RCPI have been prepared. There is no match and there are no additional FTEs associated with this grant. Deputy Police Chief Dewey Williams discussed human trafficking, a modern day slave trade. The Police Department was congratulated for their efforts. Planning Discuss Amendments to the Clearwater Comprehensive Plan as recommended in the Evaluation and Appraisal Report (EAR). (WSO) Planning Director Michael Delk thanked staff for their efforts to establish strategic thinking regarding Clearwater’s future. Florida Statutes require local governments to adopt comprehensive plan amendments consistent with their approved Evaluation and Appraisal Report (EAR). The City of Clearwater’s EAR, prepared in 2005/06, was found sufficient by the Department of Community Affairs (DCA) on November 29, 2006. EAR-based amendments are required to be processed as a large- scale plan amendment and adopted by the end of 2008. The 2006 EAR was divided into five parts: Part I: Introduction, Part II: Statutory Issues Assessment, Part III: Issues of Local Concern, Part IV: Success and Shortcomings of Each Comprehensive Plan Element, and Part V: Changes in Florida Statutes. Statutory changes and issues of local concern were identified in the EAR to be addressed through EAR-Based Amendments. A total of five issues of local concern were identified: 1) How can the City develop a comprehensive and diversified strategy for the City’s redevelopment; 2) How does the Council Work Session 2008-08-04 6 City provide guidance to enhance community character and livable neighborhoods; 3) How does the City develop and implement a proactive approach to facilitate attainable housing and assure safety and competitiveness of the aging housing stock; 4) How can the City develop and implement a strategy to eliminate enclaves and facilitate annexation; and 5) How does the City implement an approach to coastal and disaster management. On April 4, 2007, the City Council appointed a new Citizen Advisory Committee (CAC) for the purpose of providing public participation in the preparation of the EAR-based amendments. The new CAC includes several of the members of the CAC that worked on the EAR. The committee has met nine times since its “kick-off” meeting in April 2007, primarily reviewing and making recommendations on the EAR issues of local concern. The CAC also reviewed the statutory and editorial changes that are included in the proposed amendments. The final CAC meeting was held on July 30, 2008. Any additional recommendations made by the CAC will be presented to the Council on August 4, 2008. Assistant Planning Director Gina Clayton said the CAC had recommended approval of all staff proposed amendments, except one; they supported a 1,000-foot separation for wellheads while the current ordinance requires 500 feet. Consensus was to support a 1,000-foot separation for wellheads. It was felt some residents might be concerned that amendments identify large sections of the City as eligible for multi-dwelling units. Mr. Delk said parcels must be large enough to accommodate an additional unit. Ms. Clayton said after significant discussion, the CAC supported the State goal of expanding affordable housing options but recommended developing changes cautiously and carefully establishing regulations to include strong code enforcement mechanisms. Concern was expressed that allowing residents to rent “grandmother flats” to strangers may invite trouble. Ms. Clayton said staff feels benefits would outweigh potential problems. Mr. Delk said a comprehensive plan could identify areas where additional units would be acceptable. It was recommended that language be softened. Consensus was to amend Future Land Use Goals, Objectives, and Policies C.1.1.2 from “ . . . dwelling units shall be encouraged.” to “ . . . dwelling units should be considered.” Ms. Clayton said staff also would amend C.1.1.8 from “Promote accessory dwelling units . . . “ to “Consider accessory dwelling units . . .” Staff will submit cost estimates for providing surveys to a history preservation steering committee. Ms. Clayton said vertical enclosures are an esoteric concept related to livable communities that links pedestrian scale and space. The City’s design structure and hierarchy identify areas requiring economic redevelopment attention while graphics identify related corridors. Ms. Clayton said determining which areas are uniquely Clearwater would provide a defensible basis for land use decisions. The City Manager recommended that future Council visioning contemplate the comprehensive plan. Ms. Clayton said in the recreation section, the EAR discusses continued trail development. The EAR indicates more than 3,700 acres of land is eligible for annexation. Staff was unable to determine costs related to annexation. It was stated unless treated as new Council Work Session 2008-08-04 7 construction, annexations could not be added to the City’s tax base. It was recommended that staff meet citizen demands for increased efficiencies. The City Council recessed from 3:31 to 3:38 p.m. Legal Set Date for Impasse Hearing Consensus was to schedule the IAFF (International Association of Fire Fighters) impasse hearing on September 18, 2008, at 9:00 a.m. City Manager Verbal Reports A Spiritual Change Consensus was to discuss on Thursday Jonathan Wade’s funding request for A Spiritual Change, Inc. Information was requested regarding the number of people the agency had placed in jobs. Council Discussion Items Clearwater Audubon Society - Banning Dogs on North Clearwater Beach from Shorebird Nesting Areas. In his July 15, 2008, letter to the City Manager, Clearwater Audubon Society representative Paul Trunk requested the City ban dogs from north Clearwater beach to protect shorebird nesting areas. It was recommended that the Council discuss the issue after the CBA (Clearwater Beach Association) and Carlouel Homeowners Association consider the request. Assistant City Attorney Rob Surette said current regulations prohibit dogs and fireworks on Sand Key public beaches. The City can impose public health and safety rules that extend to private property. The City Attorney said the request is to expand the area not currently covered. The Audubon Society must provide empirical data connecting dog activity to a reduction of nests. Concern was expressed additional nature protection requests would follow. It was stated some north beach homeowners think many dogs on the beach do not belong to neighborhood residents. Mr. Surette said an officer would have to witness an infraction before a prohibition could be enforced. It was felt there are better uses for a Police Officer’s time. It was felt if they knew about consequences, people would be less likely to allow their dogs in the sand dunes. It was suggested that nesting areas could be protected by other means. The City Manager said the City issues permits for Carlouel Yacht Club to set off fireworks from the public beach and that noisy activity also might disturb nesting birds. Further discussion will be scheduled for Thursday. Other Council Action Council Work Session 2008-08-04 8 Councilmember Gibson said the owner of a parcel that meets City requirements for a beach parking garage had expressed interest in retail space in the garage in exchange for a property price reduction. Assistant City Manager Rod Irwin said the City Council would need to express interest in a retail component before staff researches related issues, i.e. FEMA (Federal Emergency Management Association), costs, etc. The City Attorney said the Charter requires the City to dispose of property to the highest bidder and could not guarantee who would get the property. Finance Director Margie Simmons said private use of the facility would impede the City’s ability to sell non-taxable bonds. Councilmember Gibson questioned plans for an appraisal of the Royalty Theater. The issue will be discussed on Thursday. Adjourn The Work Session adjourned at 4:23 p.m. Council Work Session 2008-08-04 9