09/03/2009
CITY COUNCIL MEETING MINUTES
CITY OF CLEARWATER
September 3, 2009
Present: Mayor Frank Hibbard, Vice-Mayor Paul Gibson, Councilmember George N.
Cretekos, Councilmember John Doran, and Councilmember Carlen Petersen.
Also William B. Horne II - City Manager, Jill S. Silverboard - Assistant City
present: 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 - Rev. Katherine Hodges of Friendship United Methodist Church
3. Pledge of Allegiance - Mayor Frank Hibbard
4. Presentations
4.1 Suicide Prevention Week Proclamation - Bonnie McClelland, Founder and
Marlene Jehs, Chapter Director of Suncoast Yellow Ribbon Suicide Prevention
program.
5. Approval of Minutes
5.1 Approve the minutes of the August 3, 2009 Special City Council Meeting and the
August 20, 2009 City Council Meeting as submitted in written summation by the
City Clerk.
Councilmember Carlen Petersen moved to approve the minutes of the August 3, 2009
Special City Council Meeting and the August 20, 2009 City Council Meeting as
submitted in written summation by the City Clerk. The motion was duly seconded and
carried unanimously.
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6. Citizens to be Heard re Items Not on the Agenda - None.
Public Hearings - Not before 6:00 PM
7. Administrative Public Hearings
7.1 Continue to September 17, 2009 the first reading of Ordinance 8044-09.
Amendments to the Community Development Code to create a new Resort
Attached Dwellings use in the Tourist District, and to establish criteria addressing
accessory uses for overnight accommodations in the Commercial and Tourist
Districts. (TA2009-01004)
Councilmember John Doran moved to continue Item 7.1 to September 17, 2009. The
motion was duly seconded and carried unanimously.
7.2 Set a final millage rate of 5.1550 mills for fiscal year 2009/10 levied against non-
exempt real personal property with the City of Clearwater and pass Ordinance
8099-09 on first reading.
In accordance with Chapter 200 of the Florida Statutes which defines
requirements for the "Determination of Millage" and the rules governing Truth in
Millage (TRIM) Compliance, the City Council must hold two public hearings to
adopt a final millage rate for the new fiscal year. The adoption of this ordinance to
establish the millage rate and the two related budget ordinances are an integral
part of fulfilling these requirements.
The City Council set a proposed millage rate of 5.1550 mills on July 16, 2009,
which is the rate that appeared on the TRIM bill notices mailed to taxpayers in
August. The millage rate of 5.1550 mills represents a 7.19% decrease from the
rolled back rate of 5.5543 mills.
Ordinance 8099-09 is now presented in order to adopt the millage rate of 5.1550
mills to support the operating and capital improvement budgets for the 2009/10
fiscal year.
Budget Director Tina Wilson provided a power point presentation.
Three individuals opposed closing the East Branch Library.
Three individuals thanked Council for keeping the North Greenwood Branch Library
open.
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Nine individuals opposed closure of the Morningside Recreation Center.
One individual supported the City Manager's proposed millage rate and one individual
supported a centrally located regional library.
One individual expressed concern with incentives meant to revitalize downtown.
Two individuals spoke in opposition.
In response to questions, Parks & Recreation Director Kevin Dunbar said some
recreation centers spend more due to size and number of attendees. The Morningside
facility is staffed during programmed activities. There is still some monies set aside for
design of the new Morningside Recreation Center in Penny for Pinellas. Mr. Dunbar
said the current Morningside Recreation Center was not constructed as a recreation
center and would require a large investment for renovations. If Morningside closed this
year, it would take approximately 18-24 months for design and construction.
In response to a suggestion, Finance Director Margie Simmons said council policy
allows use of reserves for one-time expenditures. Using savings to pay operations is
not recommended. Budget Director Tina Wilson said once the millage rate is decreased
that will add more to cut next year.
Councilmember George N. Cretekos moved to use $500,000 from reserves to
lower the millage rate by .06 mills. The motion was duly seconded.
Concern was expressed that the .06 mills reduction will equate to a $1.00-
monthly savings.
Upon the vote being taken, Councilmember George N. Cretekos voted “Aye;”
Councilmembers John Doran and Carlen Petersen, Vice-Mayor Paul Gibson
and Mayor Frank Hibbard voted “Nay.”
Motion failed.
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Councilmember Carlen Petersen moved to set a final millage rate of 5.1550
mills for fiscal year 2009/10 levied against non-exempt real personal property
with the City of Clearwater. The motion was duly seconded.
Vice-Mayor Paul Gibson moved to amend the motion to set the millage rate at
4.8 mills. The motion was duly seconded and upon vote being taken:
"Ayes": Mayor Frank Hibbard and Vice-Mayor Paul Gibson.
Councilmember George N. Cretekos, Councilmember John Doran,
"Nays":
and Councilmember Carlen Petersen.
Motion failed.
Upon the vote being taken on the original motion:
Councilmember George N. Cretekos, Councilmember John Doran,
"Ayes": and Councilmember Carlen Petersen.
"Nays":Mayor Frank Hibbard and Vice-Mayor Paul Gibson.
Motion carried.
The Council recessed from 7:49 p.m. to 7:57 p.m.
Ordinance 8099-09 was presented for first reading and read in full. Councilmember
John Doran moved to pass Ordinance 8099-09 on first reading. The motion was duly
seconded and upon roll call, the vote was:
"Ayes": Councilmember Carlen Petersen, Councilmember John Doran and
Councilmember George N. Cretekos
"Nays": Mayor Frank Hibbard and Vice-Mayor Paul Gibson.
Motion carried.
7.3 Approve the City of Clearwater Annual Operating Budget for the 2009/10 fiscal
year and pass Ordinance 8100-09 on first reading.
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In accordance with Chapter 200 of the Florida Statutes and the rules governing
Truth in Millage (TRIM) compliance, the City Council must hold two public
hearings to adopt the final budget. The adoption of this ordinance and the related
ordinances adopting the 2009/10 millage rate and the Capital Improvement
Budget are an integral part of fulfilling these requirements.
On June 30, 2009, the City Manager provided the City Council with the
Preliminary Annual Operating and Capital Improvement Budget that
outlined proposed estimates of revenues and expenditures for the 2009/10 fiscal
year. A special budget meeting was held for citizen input on August 3, 2009; and
the Council has also discussed the proposed budget at several work sessions and
City Council meetings.
After the preliminary budget was released, Pinellas County agreed to the
continued funding of Rescue 46. Also, during the Council discussions several
other changes have been made to the preliminary budget including the continued
funding of the Jolley Trolley from the Parking Fund; a reduction in funding for road
improvements; funding for Rescue 50 and the North Greenwood library.
These changes, and others, are detailed on the worksheet to provide a summary
as to staff’s interpretation of the City Council’s direction to date on a final budget
for fiscal year 2009/10.
Vice-Mayor Paul Gibson moved to approve the City of Clearwater Annual Operating
Budget for the 2009/10 fiscal year. The motion was duly seconded.
Councilmember John Doran requested that $50,000 for Pinellas Hope be included in
the budget.
Councilmember Carlen Petersen withdrew her second.
Councilmember John Doran moved to allocate $50,000 for Pinellas Hope. The motion
was duly seconded.
Upon the vote being taken, Councilmembers John Doran and Carlen Petersen voted
"Aye" and Councilmembers George N. Cretekos, Paul Gibson, and Frank Hibbard voted
"Nay."
Motion Failed.
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One individual spoke in support and one in opposition.
Councilmember George N. Cretekos moved to approve the City of Clearwater
Annual Operating Budget for the 2009/10 fiscal year. The motion was duly
seconded and upon vote being taken:
Councilmember George N. Cretekos, Councilmember John Doran,
"Ayes": and Councilmember Carlen Petersen.
"Nays":Mayor Frank Hibbard and Vice-Mayor Paul Gibson.
Ordinance 8100-09 was presented for first reading and read by title only.
Councilmember Carlen Petersen moved to pass Ordinance 8100-09 on first reading.
The motion was duly seconded and upon roll call, the vote was:
"Ayes": Councilmember Carlen Petersen, Councilmember George N. Cretekos, and
Councilmember John Doran
"Nays": Vice-Mayor Paul Gibson and Mayor Frank Hibbard.
Motion carried.
7.4 Adopt the Fiscal Year 2009/10 Capital Improvement Budget and establish a six-
year plan for the Capital Improvement Program (CIP) and pass Ordinance 8101-
09 on first reading.
In accordance with Chapter 200 of the Florida Statutes and the rules governing
Truth in Millage (TRIM) compliance, the City Council must hold two public
hearings to adopt a final budget. The adoption of this ordinance and the related
ordinances adopting the 2009/10 millage rate and Operating Budget are an
integral part of fulfilling these requirements.
On June 30, 2009, the City Manager provided the City Council with the
Preliminary Annual Operating and Capital Improvement Budget. A special budget
meeting was held for citizen input on August 3, 2009 and the City Council has
also discussed the proposed budget at several work sessions and City Council
meetings.
The only change to the Preliminary Capital Improvement Budget is the reduction
of $500,000 of road millage revenues and the related funding of the capital project
for streets and sidewalks in fiscal year 2009/10, and a reduction of $500,000
annually for road funding in each of the next five years of the plan.
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Councilmember John Doran moved to adopt the Fiscal Year 2009/10 Capital
Improvement Budget and establish a six-year plan for the Capital Improvement Program
(CIP). The motion was duly seconded and carried unanimously.
Ordinance 8101-09 was presented for first reading and read by title only.
Councilmember George N. Cretekos moved to pass Ordinance 8101-09 on first
reading. The motion was duly seconded and upon roll call, the vote was:
"Ayes": Councilmember George N. Cretekos, Councilmember John Doran,
Councilmember Carlen Petersen, Vice-Mayor Paul Gibson and Mayor Frank Hibbard.
"Nays": None.
7.5 Approve the recommended Penny for Pinellas project list, as revised, for Fiscal
Years 2009/10 through 2019/20.
On March 6, 1997, the City Council adopted Ordinance 6137-97. The ordinance
established the requirement for a special hearing prior to the adoption of the
capital improvement budget to discuss the use of Penny for Pinellas tax, and at
any time in which there is any proposed change to Penny for Pinellas project
funding of $500,000 or more.
The City Council held two special work sessions in January and March of 2009 to
review the Penny for Pinellas projects planned through fiscal year 2020. The
Council made recommended changes due to the economic decline of resources
and also prioritized the project list, in order for the funding to be included in the
six-year capital improvement plan. The worksheets include the recommended
changes to the Penny project list and the project funding forecast as a result of
these planning work sessions.
Primary changes include:
· The Highland Avenue widening project has been eliminated from the
list. This project is no longer needed due to the extension of Keene Road in that
area.
· New projects provide for the replacement of $1.8 million of Police vehicles
and $1.97 million for Fire engines. The fire engines had been previously funded in
the respective fire station renovation projects.
· A new project funds a consolidated “Eastside” Library at an estimated cost
of $10 million to replace the East and Countryside branch libraries. This
eliminates the need for the renovation of the East and Countryside branch
libraries.
· The Countryside Aquatics Center project has been eliminated from the list
due to operational economic issues, although the funds remain to support a
project in the Countryside area yet to be determined.
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· The Downtown Parking Garage project has been eliminated.
· The Municipal Beach Parking Garage project has been reduced from a
$12.5 million project to an $8.5 million project.
· The New City Hall and Parking Garage project has been reduced from a
$25 million project to a $7 million project.
· The Senior Facility project budget has been reduced from a $3.5 million
project to a $1.2 million project. Since the City has located the senior programs in
the Long Center, this has allowed a reduction in the funds necessary to
accomplish this program.
· The Downtown Streetscape budget has been reduced from a $12.5 million
to an $8 million project.
· The City-wide Wireless Mesh project has been eliminated.
· A new project funds a Downtown Intermodal Facility in the amount of $8
million to allow for the growth and expansion of public transit service within
Clearwater.
· A new project funds a portion of the major renovation of the Royalty, or
Capitol Theater, in the amount of $3.55 million.
· A new project funds a portion of the construction of the public boat slips on
the downtown waterfront at the base of Cleveland Street in the amount of $4.125
million.
· A new project for $3.5 million provides for the possible purchase of the St.
Petersburg Times property for the purpose of consolidating other City facilities on
this site as yet to be determined.
Vice-Mayor Paul Gibson moved to approve the recommended Penny for Pinellas
project list, as revised, for Fiscal Years 2009/10 through 2019/20. The motion was duly
seconded and carried unanimously.
8. Second Readings – Public Hearing
8.1 Adopt Ordinance No. 8043-09 on second reading, making amendments to the
Community Development Code to provide for consistency between the Zoning
Atlas, the City’s Future Land Use Plan and the provisions of the Countywide
Future Land Use Map
It was stated that a motion to amend on second reading was needed to remove the
requirement for one foot of additional width to a parking space.
Councilmember Carlen Petersen moved to amend Item 8.1, removing the requirement
for 1 foot of additional width to a parking space. The motion was duly seconded and
carried unanimously.
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Ordinance 8043-09 was presented for second reading, as amended, and read by title
only. Councilmember John Doran moved to adopt Ordinance 8043-09, as amended, on
second reading. The motion was duly seconded and upon roll call, the vote was:
"Ayes": Councilmember George N. Cretekos, Councilmember John Doran,
Councilmember Carlen Petersen, Vice-Mayor Paul Gibson and Mayor Frank Hibbard.
"Nays": None.
8.2 Adopt Ordinance No. 8081-09 on second reading, annexing certain real property
whose post office address is 2141 Alemanda Drive into the corporate limits of the
city and redefining the boundary lines of the city to include said addition
Ordinance 8081-09 was presented for second reading and read by title only.
Councilmember George N. Cretekos moved to adopt Ordinance 8081-09 on second
and final reading. The motion was duly seconded and upon roll call, the vote was:
"Ayes": Councilmember George N. Cretekos, Councilmember John Doran,
Councilmember Carlen Petersen, Vice-Mayor Paul Gibson and Mayor Frank Hibbard.
"Nays": None.
8.3 Adopt Ordinance No. 8082-09 on second reading, amending the Future Land Use
Plan element of the Comprehensive Plan of the city to designate the land use for
certain real property whose post office address is 2141 Alemanda Drive, upon
annexation into the City of Clearwater, as Residential Urban (RU).
Ordinance 8082-09 was presented for second reading and read by title only. Vice-
Mayor Paul Gibson moved to adopt Ordinance 8082-09 on second and final reading.
The motion was duly seconded and upon roll call, the vote was:
"Ayes": Councilmember George N. Cretekos, Councilmember John Doran,
Councilmember Carlen Petersen, Vice-Mayor Paul Gibson and Mayor Frank Hibbard.
"Nays": None.
8.4 Adopt Ordinance No 8083-09 on second reading, amending the Zoning Atlas of
the city by zoning certain real property whose post office address is 2141
Alemanda Drive, upon annexation into the City of Clearwater, as Low Medium
Density Residential (LMDR).
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Ordinance 8083-09 was presented for second reading and read by title only.
Councilmember Carlen Petersen moved to adopt Ordinance 8083-09 on second and
final reading. The motion was duly seconded and upon roll call, the vote was:
"Ayes": Councilmember George N. Cretekos, Councilmember John Doran,
Councilmember Carlen Petersen, Vice-Mayor Paul Gibson and Mayor Frank Hibbard.
"Nays": None.
8.5 Adopt Ordinance No. 8085-09 on second reading, vacating the west five feet of
the ten-foot Drainage Easement lying east of and adjacent to the west property
line of Lot 5, Block V, Hibiscus Gardens.
Ordinance 8085-09 was presented for second reading and read by title only.
Councilmember John Doran moved to adopt Ordinance 8085-09 on second and final
reading. The motion was duly seconded and upon roll call, the vote was:
"Ayes": Councilmember George N. Cretekos, Councilmember John Doran,
Councilmember Carlen Petersen, Vice-Mayor Paul Gibson and Mayor Frank Hibbard.
"Nays": None.
8.6 Adopt Ordinance No. 8086-09 on second reading, amending Chapter 32, Code of
Ordinances, relating to reclaimed water availability fee exemption in
specifically defined areas; amending Section 32.380, Code of Ordinances to add
Phase I and removing former exemption language; adding new Section 32.380.1
as Phase II; renumbering Section 32.380.1 as 32.380.2 and amending to clarify
applicable phases; renumbering Section 32.380.2 as 32.380.3.
Ordinance 8086-09 was presented for second reading and read by title only.
Councilmember George N. Cretekos moved to adopt Ordinance 8086-09 on second
and final reading. The motion was duly seconded and upon roll call, the vote was:
"Ayes": Councilmember George N. Cretekos, Councilmember John Doran,
Councilmember Carlen Petersen, Vice-Mayor Paul Gibson and Mayor Frank Hibbard.
"Nays": None.
8.7 Adopt Ordinance No. 8097-09 on second reading, relating to Parks, Beaches and
Recreation, amending Section 22.49, Code of Ordinances, to permit certain
informal activities including casual ball throwing, unless such activity creates a
threat of physical injury to any person.
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Ordinance 8097-09 was presented for second reading and read by title only.
Councilmember George N. Cretekos moved to adopt Ordinance 8097-09 on second
and final reading. The motion was duly seconded and upon roll call, the vote was:
"Ayes": Councilmember George N. Cretekos, Councilmember John Doran,
Councilmember Carlen Petersen, Vice-Mayor Paul Gibson and Mayor Frank Hibbard.
"Nays": None.
8.8 Continue to October 1, 2009 the second reading of Ordinance 8044-09.
Amendments to the Community Development Code to create a new Resort
Attached Dwellings use in the Tourist District, and to establish criteria addressing
accessory uses for overnight accommodations in the Commercial and Tourist
Districts. (TA2009-01004)
Vice-Mayor Paul Gibson moved to continue Item 8.8 to October 1, 2009. The motion
was duly seconded and passed unanimously.
9. Consent Agenda
9.1 Approve First Amendment to Agreement for Professional Management Services
between the City of Clearwater and Global Spectrum, L.P. for management
services for the Harborview Center from September 30, 2009 through February
28, 2010 and authorize the appropriate officials to execute same. (consent)
9.2 Approve an Interlocal Agreement between the CRA and the City of Clearwater to
provide CRA funding in FY 2009/2010 in the amount of $130,376.59 to underwrite
the cost of additional Community Policing Services by the Clearwater Police
Department in the East Gateway CRA District, pursuant to the East Gateway
District Five-Year Action Plan and authorize the appropriate officials to execute
same. (consent)
9.3 Ratify and confirm change order 1 to Ajax Paving Industries of Florida, LLC of
Nokomis, Florida for the 2008 Street Resurfacing Contract (08-0015-EN),
increasing the contract amount by $42,416.00, for a new total of $1,011,873.50.
(consent)
9.4 Award a contract to APAC Southeast Incorporated of 4636 Scarsborough Drive,
Lutz, Fl for the construction of the East Avenue Trail Connection from Drew Street
on the north to Turner Street on the south (09-0023EN)in the amount of
$289,029.25 and authorize the appropriate officials to execute same. (consent)
9.5 Approve a lease renewal between the City of Clearwater and C.L.E.M. Hospitality,
LLC for the temporary parking lot located at 400 East Shore Drive and authorize
appropriate officials to execute same. (consent)
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9.6 Reappoint Robert Aude and appoint Jan Ellen Moss as the public housing
resident to Clearwater Housing Authority with terms to expire September 30,
2013. (consent)
9.7 Appoint Mayor Hibbard to the Pinellas County Metropolitan Planning Organization
for a four-year term expiring on September 12, 2013.
9.8 Appoint Councilmember Gibson to the Pinellas Suncoast Transit Authority (PSTA)
for a three year term starting October 1, 2009 and expiring on September 30,
2012.
Councilmember George N. Cretekos moved to approve the Consent Agenda and
authorize the appropriate officials to execute same. The motion was duly seconded and
carried unanimously.
City Manager Reports
10. Other Items on City Manager Reports
10.1 Appoint one member to the Environmental Advisory Board with the term to expire
September 30, 2013.
Councilmember Jon Doran moved to continue Item 10.1 to September 17, 2009. The
motion was duly seconded and carried unanimously.
10.2 Authorize the City to enter into an agreement with CSX Transportation, Inc., for
installation of one (1) 4-inch fiber optic conduit in the CSX right-of-way as part of
the Hercules Avenue Fiber Optic Project, approve Wireline Crossing Agreement
CSX-634515 and adopt Resolution 09-35.
· As part of the Hercules Avenue Fiber Optic project, the City desires to
construct one (1) 4-inch fiber optic conduit crossing CSX right-of-way.
· The 4-inch fiber optic conduit crossing is located where the CSX Railroad
intersects Hercules Avenue.
· CSX requires an Agreement to cover the costs of encroaching, construction
risk and to provide the terms and conditions associated with placing a wireline
underneath their railway system.
· The cost to the City will be $2,150 for a license and coordination fee and
$750.00 for the Railroad Protective Liability Insurance fee (due to the City’s self-
insured status the Railroad Protective Liability Insurance fee of $1,125 is reduced
by $375) for a total cost of $2,900.00.
· Sufficient budget is available in the Information Technology operating
budget (0555-09864) to fund this agreement.
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Councilmember George N. Cretekos moved to authorize the City to enter into an
agreement with CSX Transportation, Inc., for installation of one (1) 4-inch fiber optic
conduit in the CSX right-of-way as part of the Hercules Avenue Fiber Optic Project,
approve Wireline Crossing Agreement CSX-634515. The motion was duly seconded
and carried unanimously.
Resolution 09-35 was presented and read by title only. Vice-Mayor Paul Gibson moved
to adopt Resolution 09-35. The motion was duly seconded and upon roll call, the vote
was:
"Ayes": Councilmember George N. Cretekos, Councilmember John Doran,
Councilmember Carlen Petersen, Vice-Mayor Paul Gibson and Mayor Frank Hibbard.
"Nays": None.
10.3 Amend sections 22.21, 22.33, 22.34, 22.35 and 22.47 of the City of Clearwater
Code of Ordinances relating to Parks, Beaches, and Recreation and pass
Ordinance 8104-09 on first reading.
Due to reorganization of the beach lifeguard operations moving from the
management of the Marina Department to the Parks and Recreation Department
it is necessary to change several sections of the Code of Ordinances to reflect this
administrative change.
The changes affecting sections 22.21, and 22.33; in general change the
responsibilities of management from the “Marine Department” to the “City
Manager or his designee”. In addition, the term “safe bathing limit” is being
removed from the code since it is somewhat confusing as to the full meaning of
the term and in some cases may actually create an unsafe condition.
Section 22.21 Definitions.
· Clarification of the definition for the operation of public bathing beaches
from “City Marine Department” to the “City Manager or his designee”.
· Removal of the definition of term “safe bathing limits” and elimination of the
term in the remainder of the code. Section 22.33 Bathing and swimming areas
and the Courtney Campbell Recreation Area.
· Clarification of the department responsible for posting the rules governing
public beaches and the Courtney Campbell Recreation Area from the “Marine
Department personnel” to the “City Manager or his designee”.
· Clarification of the person responsible for closing public beaches and the
Courtney Campbell Recreation Area from the “Harbormaster” to the “City
Manager or his designee”.
· Removal of term “safe bathing limits” and addition of area described in
section 33.114, to protect public beach areas from surfboards, sailboats,
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motorboats, personal water craft, etc. Sec. 22.34. Boating.
· Removal of term “safe bathing limits” and addition of area described in
section 33.114, to protect public beach areas from persons operating boats or
watercraft in restricted areas and public bathing beach areas. Section 22.35
Fishing.
· Removal of term “safe bathing limits” and addition of area described in
section 33.114 to protect public beach areas from fishing. Section 22.47 Aircraft.
· Removal of term “safe bathing limits” and addition of area described in
section 33.114 to protect public beach areas from Persons operating aircraft.
Councilmember Carlen Petersen moved to amend Sections 22.21, 22.33, 22.34, 22.35
and 22.47 of the City of Clearwater Code of Ordinances relating to Parks, Beaches, and
Recreation. The motion was duly seconded and carried unanimously.
Ordinance 8104-09 was presented for first reading and by title only. Councilmember
John Doran moved to pass Ordinance 8104-09 on first reading. The motion was duly
seconded and upon roll call, the vote was:
"Ayes": Councilmember George N. Cretekos, Councilmember John Doran,
Councilmember Carlen Peterson, Vice-Mayor Paul Gibson and Mayor Frank Hibbard.
"Nays": None.
10.4 Approve changes to the Marine and Aviation Department Business Plan to allow
fuel to be sold at market rates (as stated in current Clearwater Code of Ordinance
section 33.031) and authorize the transfer of $230,000 from General Fund
reserves to the Marina Fund to cover cash deficits that have occurred in last fiscal
year ending September 30, 2008 and the current fiscal year ending September
30, 2009.
The Marina Fund currently requires a cash infusion of $230,000 to sustain
activities with a positive cash balance. This can be in the form of a direct grant
from General fund reserves, or a loan from general fund reserves.
This deficit has accumulated over the past two years due to the economy and
other factors.
The results of an analysis of the various revenue sources are:
* Recreational Slip Rental: Previous changes to the 5 year business plan,
coupled with the declining economy led to a loss of 41 of 118 recreational tenants
directly contributing to a downturn in projected slip rent budgeted. The last plan
update aligned recreational slip rents to market rates and recovered 25 of the 41
vacant slips.
* Transient Slip Rental: Marketing changes have resulted in increases in transient
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slip occupancy.
* Commercial Slip Rental: Commercial slip rent stabilization has maintained
100% rental of commercial slips during all but one quarter of this past fiscal year
when only 2 of 47 commercial slips were unoccupied.
* Marina Building Rents: The marina building had a loss of two building tenants,
however, extension of existing leases have retained our remaining tenants with
additional interest in leasing our existing vacant space.
* Fuel Sales: Fuel revenues are currently driving the deficit in that the sales price
previously directed by the Council only covers the cost of the fuel and the cost of
credit card charges and PILOT (payment in lieu of taxes) to the General Fund. It
does not cover any of the costs of the staff, insurance, utilities, etc. On average,
the Marina’s rate is $.45 (45 cents) per gallon below local market average. The
current Code of Ordinances, Section 33.031states:
Sec. 33.031. Sale of petroleum products.
The city manager shall have authority to designate locations on city-owned
property at or from which petroleum products for the use of boats may be sold and
no such products may be sold or delivered except from such locations. The
locations for sale of petroleum products by the city at the Clearwater Municipal
Marina are the marina fuel dock located at the southeast end of the marina and
the marina commercial fuel dock located along the seawall on the east end of the
marina. A fully qualified fuel vendor, as approved by the city manager and under
an annual fuel contract with the city, shall provide all petroleum products sold at
the Clearwater Municipal Marina. The city manager shall establish retail prices for
such petroleum products, which prices, insofar as federal regulations permit, shall
be comparable with prices for similar products sold in similar quantities by other
marine fuel outlets in the area.
If allowed to sell fuel at market rates it is estimated revenues will increase by
$190,000 to $340,000 per year.
Staffing has been reduced at the Marina, with additional cuts to be effective next
fiscal year. There have also been cuts in various other expense categories,
including transfers to CIP.
If approved by Council, a third quarter budget amendment will be made reflecting
the transfer in of $230,000 from general fund reserves as well as other
adjustments to revenue and expense categories as necessary.
In response to questions, Marine and Aviation Director Bill Morris said 2007 fuel rates
did not cover costs. At that time, Council determined commercial boaters needed
assistance due to weak economy and did not approve staff recommended business
plan.
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One individual opposed increased fuel rates.
In response to a question, Finance Director Margie Simmons said staff aims to set
weekly a price that is slightly lower than the average price of 6 local fuel sellers and
provide a 1 O-cent discount to commercial operators.
Councilmember Carlen Petersen moved to approve changes to the Marine and Aviation
Department Business Plan to allow fuel to be sold at market rates (as stated in current
Clearwater Code of Ordinance section 33.031) and authorize the transfer of $230,000
from General Fund reserves to the Marina Fund to cover cash deficits that have
occurred in last fiscal year ending September 30,2008 and the current fiscal year
ending September 30, 2009. The motion was duly seconded and carried unanimously.
Miscellaneous Reports and Items
11. City Manager Verbal Reports - None.
12. Other Council Action
12.1 Other Council Action
Councilmembers reported on events in which they recently participated and offered
condolences to the Berfield and McDonough families.
Adiourn
The meeting was adjourned at 9:00 p.m.
,,~~
Mayor
City of Clearwater
Attest
Council 2009-09-03
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