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11/17/2009 CITY COUNCIL MEETING MINUTES CITY OF CLEARWATER November 17, 2009 Present: Mayor Frank Hibbard, Vice-Mayor Paul Gibson, Councilmember George N. Cretekos, and Councilmember John Doran. Absent: Councilmember Carlen Petersen Also William B. Horne II - City Manager, Rod Irwin - Assistant City Manager, present: 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 - Mayor Frank Hibbard The meeting was called to order at 6:00 p.m. at City Hall. 2. Invocation - Reverend Dr. Scott Baker of First United Methodist Church 3. Pledge of Allegiance - Mayor Frank Hibbard 4. Presentations 4.1 Citizen’s Academy Graduates of 2009 Certificates were presented to: Ronald Altic, Mary Kate Belniak, Nancy Emineth, Mike Engelmann, Elizabeth W. Folk, Jorge Gonzalez, Ming He, Howard "Gene" Hughey, Jeff Lawlor, Peter Leach, Gina McPheron, Hal Pheeny, Keith Protonentis, Sherry Pyatok, Marian Townson, Donald van Weezel, and Daryl Waterman. 4.2 Home, business, and neighborhood of the Quarter Awards The Neighborhood of the Quarter Award was presented to the Skycrest community. Home of the Quarter Awards were presented to: Thomas and Mary Sewell at 2391 Old Coachman Trail, David and Susan Rutter at 1878 Yale Avenue, James and Heather Bassick at 1021 Granada Street, and Edward DiPanni at 2015 Brendla Road. The Fall Council 2009-11-17 1 2009 Business Beautification Recognition Award was given to the Lincourt Medical Center at 501 Lincoln Avenue. 4.3 Ironman Triathlon Presentation Event Director Joanna Jordan thanked the City and residents for their support and efforts. 4.4 State of the City Presentation - City Manager City Manager Horne reviewed efforts to achieve vision statement priorities. 5. Approval of Minutes 5.1 Approve the minutes of the November 5, 2009 City Council Meeting as submitted in written summation by the City Clerk. Councilmember John Doran moved to approve the minutes of the November 5, 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 - None. Public Hearings - Not before 6:00 PM 7. Administrative Public Hearings 7.1 Approve the Annexation, Initial Land Use Plan Designation of Residential Urban (RU) and Initial Zoning Atlas Designation of Low Medium Density Residential (LMDR) District for 13 Baywood Avenue (Lot 13, Block E, Second Edition to Eastwood Terrace in Section 18, Township 29 South, Range 16 East); and pass Ordinances 8121-09, 8122-09 and 8123-09 on first reading.(ANX2009-08014) This voluntary annexation petition involves a 0.17-acre property consisting of one parcel of land occupied by a single-family dwelling. It is located on the east side of Baywood Avenue, approximately 110 feet north of Eastwood Drive. The applicant is requesting annexation in order to receive sanitary sewer and solid waste service from the City. Annexation of the property will eliminate an enclave. The property is contiguous to existing City boundaries to the north, south, east, and west. It is proposed that the property be assigned a Future Land Use Plan Council 2009-11-17 2 designation of Residential Urban (RU) and a zoning category of Low Medium Density Residential (LMDR). The Planning Department determined the proposed annexation is consistent with the provisions of Community Development Code Section 4-604.E as follows: The property currently receives water service from Pinellas County. The closest sanitary sewer line is located in the adjacent Baywood Avenue right-of-way and the applicant has paid the City’s sewer impact and assessment fees and is aware of the additional costs to extend City sewer service to this property. Collection of solid waste will be provided by the City of Clearwater. The property is located within Police District III and service will be administered through the district headquarters located at 2851 N. McMullen Booth Road. Fire and emergency medical services will be provided to this property by Station 49 located at 565 Sky Harbor Drive. The City has adequate capacity to serve this property with sanitary sewer, solid waste, police, fire and EMS service. The proposed annexation will not have an adverse effect on public facilities and their levels of service; and The proposed annexation is consistent with and promotes the following objective of the Clearwater Comprehensive Plan: Objective A.6.4: Due to the built-out character of the City of Clearwater, compact urban development within the urban service area shall be promoted through application of the Clearwater Community Development Code. Objective A.7.2 Diversify and expand the City’s tax base through the annexation of a variety of land uses located within the Clearwater Planning Area. Policy A.7.2.3 Continue to process voluntary annexations for single-family residential properties upon request. The proposed RU Future Land Use Plan category is consistent with the current Countywide Plan designation of this property. This designation primarily permits residential uses at a density of 7.5 units per acre. The proposed zoning district to be assigned to the property is the Low Medium Density Residential (LMDR) District. The use of the subject property is consistent with the uses allowed in the District and the property exceeds the District’s minimum dimensional requirements. The proposed annexation is therefore consistent with the Countywide Plan, City’s Comprehensive Plan and Community Development Code; and The property proposed for annexation is contiguous to existing City boundaries to the north, south, east and west; therefore the annexation is consistent with Florida Statutes Chapter 171.044. Council 2009-11-17 3 Councilmember George N. Cretekos moved to approve the Annexation, Initial Land Use Plan Designation of Residential Urban (RU) and Initial Zoning Atlas Designation of Low Medium Density Residential (LMDR) District for 13 Baywood Avenue (Lot 13, Block E, Second Edition to Eastwood Terrace in Section 18, Township 29 South, Range 16 East). The motion was duly seconded and carried unanimously. Ordinance 8121-09 was presented for first reading and read by title only. Vice-Mayor Paul Gibson moved to pass Ordinance 8121-09 on first reading. The motion was duly seconded and upon roll call the vote was: "Ayes": Councilmember George N. Cretekos, Councilmember John Doran, Vice-Mayor Paul Gibson, and Mayor Frank Hibbard. "Nays": None. Absent: Councilmember Carlen Petersen. Ordinance 8122-09 was presented for first reading and read by title only. Councilmember John Doran moved to pass Ordinance 8122-09 on first reading. The motion was duly seconded and upon roll call the vote was: "Ayes": Councilmember George N. Cretekos, Councilmember John Doran, Vice-Mayor Paul Gibson, and Mayor Frank Hibbard. "Nays": None. Absent: Councilmember Carlen Petersen. Ordinance 8123-09 was presented for first reading and read by title only. Councilmember George N. Cretekos moved to pass Ordinance 8123-09 on first reading. The motion was duly seconded and upon roll call the vote was: "Ayes": Councilmember George N. Cretekos, Councilmember John Doran, Vice-Mayor Paul Gibson, and Mayor Frank Hibbard. "Nays": None. Absent: Councilmember Carlen Petersen. Council 2009-11-17 4 7.2 Approve a Future Land Use Plan Amendment from the Residential Medium (RM) Classification to the Transportation/Utility Overlay and Drainage Feature Overlay with existing Residential Medium (RM) Classification for a portion of the property located at 1980 Kings Highway (consisting of a portion of the Florida Power Corporation easement, a portion of the drainage easement and a portion of lot 9, less the east thirty feet in E.A. Marshall subdivision), and pass Ordinance 8116-09 on first reading.(LUZ2009-07002) This future land use plan (FLUP) amendment application is related to a previous land use and zoning amendment known as 1980 Kings Highway (LUZ2006- 08004), which was requested by the previous owner, New Zion Missionary Baptist Church. The request was to change from the Institutional (INS) land use category to the Residential High (RH) category and to change the zoning from the Institutional (I) District to High Density Residential (HDR) District. The request was not approved as proposed, but a change to the Residential Medium (RM) future land use plan category and Medium Density Residential (MDR) zoning designation was granted. The Pinellas Planning Council recommended approval of the change, with the condition that the Transportation/Utility Overlay and Drainage Feature Overlay categories be added to the southern portion of the property to reflect the existing utility (Progress Energy) and drainage (City) easements. The Board of County Commissioners acting as the Countywide Planning Authority approved this recommendation on March 13, 2007. At the time of approval, the City’s Comprehensive Plan did not include the two overlays; therefore, a Comprehensive Plan amendment was necessary in order for the condition to be met. The amendment which added the two overlays was part of the Evaluation and Appraisal Report-based amendments to the Comprehensive Plan which were adopted by the City Council in December, 2008 and approved by the Department of Community Affairs in February, 2009. The current amendment involves the southerly portion of the property, comprising approximately 0.65 acres in area. This amendment is to add the Transportation/Utility Overlay and Drainage Feature Overlay, along with the existing Residential Medium (RM) classification in order to meet the condition of the previous future land use plan amendment as described above. The Planning Department has determined that the proposed future land use plan amendment, as recommended, is consistent with the following standards specified in the Community Development Code: · The proposed land use plan amendment is consistent with the Comprehensive Plan, and the Countywide Plan Rules · The proposed use is compatible with the surrounding area. · Sufficient public facilities are available to serve the property. · The application will not have an adverse impact on the natural environment. Council 2009-11-17 5 Please refer to the land use plan amendment (LUZ2009-07002) staff report for the complete analysis. In accordance with the Countywide Plan Rules, this future land use plan amendment is subject to approval by the Pinellas Planning Council and Board of County Commissioners acting as the Countywide Planning Authority. Based on the size of the parcel, review and approval by the Florida Department of Community Affairs is not required. The Community Development Board reviewed this application at its public hearing on October 20, 2009 and unanimously recommended approval of the Future Land Use Plan amendment. Vice-Mayor Paul Gibson moved to approve a Future Land Use Plan Amendment from the Residential Medium (RM) Classification to the Transportation/Utility Overlay and Drainage Feature Overlay with existing Residential Medium (RM) Classification for a portion of the property located at 1980 Kings Highway (consisting of a portion of the Florida Power Corporation easement, a portion of the drainage easement and a portion of lot 9, less the east thirty feet in E.A. Marshall subdivision). The motion was duly seconded and carried unanimously. Ordinance 8116-09 was presented for first reading and read by title only. Councilmember John Doran moved to pass Ordinance 8116-09 on first reading. The motion was duly seconded and upon roll call the vote was: "Ayes": Councilmember George N. Cretekos, Councilmember John Doran, Vice-Mayor Paul Gibson, and Mayor Frank Hibbard. "Nays": None. Absent: Councilmember Carlen Petersen. 7.3 Approve the historic designation of the Clearwater Evening Sun Building (aka Lokey Building) located at 401 Cleveland Street [consisting of the West of Lot 7, John R. Daveys Resub of Block B (per Plat Book H-1, Page 87, Public Records of Hillsborough County, Florida, of which Pinellas County was formerly a part]; and Pass Ordinance 8118-09 on first reading.(HIS2009-00001) This historic designation application involves property comprising approximately 0.065 acres in area located on the southeast corner of Cleveland Street and Osceola Avenue. The building was constructed in 1914 by William Powell and housed one of Clearwater’s first newspapers. It is a two story brick structure with decorative brickwork and is an outstanding example of commercial Masonry Vernacular. Council 2009-11-17 6 The Planning Department determined the proposed historic designation of the building is consistent with three of the four criteria for evaluating historic properties specified in the Community Development Code (Section 4-407.F.2.a-c): · The property is associated with events that made a significant contribution to the board pattern of the City. · The property is associated with the lives of persons significant in history. · The property possesses distinctive characteristics of a type, period or method of construction. Pursuant to Community Development Code Section 4-607.F.3 historic properties shall be classified as exceptional, excellent, notable or of value as part of the scene. Based on the findings that the Clearwater Evening Sun Building meets three of the designation criteria, it should be classified as excellent. Please refer to the historic designation staff report (HIS2009-00001) for the complete analysis. The Community Development Board reviewed this application at its public hearing on October 20, 2009 and unanimously recommended approval. Ruth Eckerd Hall representative Robert Freedman said the organization always intended to restore the building to historical standards. The local historic designation will facilitate state and federal historic designations and funding opportunities. Councilmember George N. Cretekos moved to approve the historic designation of the Clearwater Evening Sun Building (aka Lokey Building) located at 401 Cleveland Street [consisting of the West of Lot 7, John R. Daveys Resub of Block B (per Plat Book H-1, Page 87, Public Records of Hillsborough County, Florida, of which Pinellas County was formerly a part]. The motion was duly seconded and carried unanimously. Ordinance 8118-09 was presented for first reading and read by title only. Vice-Mayor Paul Gibson moved to pass Ordinance 8118-09 on first reading. The motion was duly seconded and upon roll call the vote was: "Ayes": Councilmember George N. Cretekos, Councilmember John Doran, Vice-Mayor Paul Gibson, and Mayor Frank Hibbard. "Nays": None. Absent: Councilmember Carlen Petersen. Council 2009-11-17 7 7.4 Approve the historic designation of the Capitol Theatre located at 405 Cleveland Street [consisting of the East of Lot 7, plus 30 feet and 3 inches of Lot 6, John R. Daveys Resub of Block B (per Plat Book H-1, Page 87, Public Records of Hillsborough County, Florida, of which Pinellas County was formerly a part]; and pass Ordinance 8119-09 on first reading. (HIS2009-00002) This historic designation application involves property comprising approximately 0.144 acres in area located on the south side of Cleveland Street, one property east of Osceola Avenue. The Capitol Theatre opened in 1921 and was designed by Lester Avery and owned by John S. Taylor, son of one the area’s earliest homesteaders. The building is an excellent example of the elaborate Mediterranean Revival style and is unique to Cleveland Street. The Planning Department determined that the proposed historic designation of the theater is consistent with three of the four criteria for evaluating historic properties specified in the Community Development Code (Section 4-407.F.2.a-c): · The property is associated with events that made a significant contribution to the board pattern of the City. · The property is associated with the lives of persons significant in history. · The property possesses distinctive characteristics of a type, period or method of construction. Pursuant to Community Development Code Section 4-607.F.3 historic properties shall be classified as exceptional, excellent, notable or of value as part of the scene. Based on the findings that the Capitol Theatre meets three of the designation criteria, it should be classified as excellent. Please refer to the historic designation staff report (HIS2009-00002) for the complete analysis. The Community Development Board reviewed this application at its public hearing on October 20, 2009 and unanimously recommended approval. Councilmember George N. Cretekos moved to approve the historic designation of the Capitol Theatre located at 405 Cleveland Street [consisting of the East of Lot 7, plus 30 feet and 3 inches of Lot 6, John R. Daveys Resub of Block B (per Plat Book H-1, Page 87, Public Records of Hillsborough County, Florida, of which Pinellas County was formerly a part]. The motion was duly seconded and carried unanimously. Ordinance 8119-09 was presented for first reading and read by title only. Vice-Mayor Paul Gibson moved to pass Ordinance 8119-09 on first reading. The motion was duly seconded and upon roll call the vote was: "Ayes": Councilmember George N. Cretekos, Councilmember John Doran, Vice-Mayor Paul Gibson, and Mayor Frank Hibbard. Council 2009-11-17 8 "Nays": None. Absent: Councilmember Carlen Petersen. 7.5 Approve Amendments to the Community Development Code and the Code of Ordinances to implement the EAR-based amendments to the Clearwater Comprehensive Plan, to bring consistency between the Countywide Plan Rules and the Community Development Code, to address the height of non-opaque fences on waterfront lots, adjustments to the Zoning Atlas, the clearance required for awnings, elimination of sandwich board signs without a permit in the Downtown District, and other minor editorial changes and pass Ordinance 8070- 09 on first reading. (TA2009-03006) The Planning Department is proposing amendments to the Community Development Code and the Code of Ordinances primarily to implement the Evaluation and Appraisal Report (EAR)-based amendments to the Clearwater Comprehensive Plan and to bring consistency between the Countywide Plan Rules and the Community Development Code. Other amendments were identified as part of this review process, including the height of non-opaque fences on waterfront lots, adjustments to the Zoning Atlas, the clearance required for awnings, and the elimination of sandwich board signs without a permit in the Downtown District. Minor editorial amendments are also included. The amendments that present a change in current policy or a new policy are outlined below: · Flexible Standard Development Uses in Industrial, Research and Technology (IRT) District – Countywide Plan Consistency (Pages 3-5 of Ordinance): Sets forth size restrictions in the Industrial, Research and Technology (IRT) zoning district for automobile service stations, major vehicle services, and retail sales and service uses and outdoor recreation/entertainment uses that are not part of a master development plan within the Industrial Limited (IL) land use category to 5 acres. If these uses exceed 5 acres, the property must be designated the appropriate future land categories that support these uses as primary uses. · Stormwater Detention Facilities – EAR-based Amendment (Page 7 of Ordinance): This amendment requires low impact development techniques for stormwater management. · Landscaping – EAR-based Amendment (Page 7 of Ordinance): This amendment adds “Florida-friendly” plant materials to those that are to be utilized Council 2009-11-17 9 to satisfy minimum landscaping requirements. · Reclaimed Water in Subdivisions – EAR-based Amendment (Page 8 of Ordinance): This amendment requires developers of new subdivisions to provide internal reclaimed water systems when reclaimed water will be available within seven years. · Historic Designation – EAR-based Amendment (Page 8 of Ordinance): This amendment allows the City in addition to property owners to initiate an application for historic designation. · Definitions and Rules of Construction – EAR-based Amendment (Page 9 of Ordinance): This amendment provides a new definition of Coastal Storm Area which incorporates and replaces the definition of Coastal High Hazard Area and is consistent with the changes made in the EAR-Based Comprehensive Plan amendments. · Wellhead Protection, Amendments to the Code of Ordinances Chapter 24 – EAR-based Amendment (Pages 9-10 of Ordinance): These two amendments modify the requirements for a wellhead protection permit and a protection-containment plan, including an increase in the distance from 500 feet to 1,000 feet from a well for potential expansion/change of an existing use with contaminating materials. The Community Development Board (CDB) reviewed the proposed amendments at its regularly scheduled meeting on October 20, 2009 and recommended approval of proposed Ordinance 8070-09. As part of the motion, the Board recommended that application be made to designate North Ward School a historic structure. The Planning Department indicated to the Board that it is working with the School Board on the preservation of historic schools within the City. In response to questions, Planning and Development Assistant Director Gina Clayton said sandwich boards are not allowed in the city. The proposed changes are correcting an inconsistency until staff presents further changes. A subdivision is defined as three or more lots. Concerns were expressed that the requirement for reclaimed water infrastructure for new subdivisions not add to the cost of affordable housing. Council 2009-11-17 10 Councilmember John Doran moved to approve amendments to the Community Development Code and the Code of Ordinances to implement the EAR-based amendments to the Clearwater Comprehensive Plan, to bring consistency between the Countywide Plan Rules and the Community Development Code, to address the height of non-opaque fences on waterfront lots, adjustments to the Zoning Atlas, the clearance required for awnings, elimination of sandwich board signs without a permit in the Downtown District, and other minor editorial changes. The motion was duly seconded and carried unanimously. Ordinance 8070-09 was presented for first reading and read by title only. Councilmember George N. Cretekos moved to pass Ordinance 8070-09 on first reading. The motion was duly seconded and upon roll call the vote was: "Ayes": Councilmember George N. Cretekos, Councilmember John Doran, Vice-Mayor Paul Gibson, and Mayor Frank Hibbard. "Nays": None. Absent: Councilmember Carlen Petersen. 8. Second Readings – Public Hearing 8.1 Adopt Ordinance 8079-09 on second reading, amending the future land use plan element of the Comprehensive Plan of the city to change the land use for certain real property whose post office address is 2337 Gulf-to-Bay Boulevard from Residential Medium (RM) to Commercial General (CG). Ordinance 8079-09 was presented for second reading and read by title only. Vice- Mayor Paul Gibson moved to adopt Ordinance 8079-09 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, Vice-Mayor Paul Gibson, and Mayor Frank Hibbard. "Nays": None. Absent: Councilmember Carlen Petersen. 8.2 Adopt Ordinance No. 8080-09 on second reading, amending the Zoning Atlas of the city by rezoning certain real property whose post office address is 2337 Gulf- to-Bay Boulevard from Mobile Home Park (MHP) to Commercial (C). Council 2009-11-17 11 Ordinance 8080-09 was presented for second reading and read by title only. Councilmember John Doran moved to adopt Ordinance 8080-09 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, Vice-Mayor Paul Gibson, and Mayor Frank Hibbard. "Nays": None. Absent: Councilmember Carlen Petersen. 8.3 Adopt Ordinance No. 8088-09 on second reading, amending the Comprehensive Plan of the city as adopted on May 18, 2000, as subsequently amended, amending the capital improvement element, making corrections and modifications pursuant to the updated schedule of the City of Clearwater’s FY 2009-2010 through FY 2014-2015 Capital Improvement Program Budget adopted on September 17, 2009, and updating the reference in Policy I.1.1.2 to the School Districts Five Year Work Program for FY 2009-2010 through 2013-2014 as adopted by the School Board on September 15, 2009. Ordinance 8088-09 was presented for second reading and read by title only. Councilmember George N. Cretekos moved to adopt Ordinance 8088-09 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, Vice-Mayor Paul Gibson, and Mayor Frank Hibbard. "Nays": None. Absent: Councilmember Carlen Petersen. 8.4 Adopt Ordinance No. 8129-09 on second reading, vacating the south five feet of a ten foot drainage and utility easement, less the west ten feet and the east five feet thereof, lying south of and adjacent to the north property line of Lot 122, replat of Willow Ridge. Ordinance 8129-09 was presented for second reading and read by title only. Vice- Mayor Paul Gibson moved to adopt Ordinance 8129-09 on second and final reading. The motion was duly seconded and upon roll call the vote was: Council 2009-11-17 12 "Ayes": Councilmember George N. Cretekos, Councilmember John Doran, Vice-Mayor Paul Gibson, and Mayor Frank Hibbard. "Nays": None. Absent: Councilmember Carlen Petersen. City Manager Reports 9. Other Items on City Manager Reports 9.1 Declare the list of surplus 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 have been replaced as necessary and are no longer required. Tampa Machinery Auction is the Pinellas County Purchasing Cooperative Auctioneer of Record. Councilmember John Doran moved to approve 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. The motion was duly seconded and carried unanimously. 9.2 Approve mortgage modification agreements for Community Service Foundation, Inc. (Fulton Apartments) and SP Country Club Homes LLC (Country Club Homes) and authorize the appropriate officials to execute same. Fulton Apartments On September 10, 2003, the Community Service Foundation (CSF) received $200,000 in the form of a loan for the acquisition of the property located at 1602, 1604, 1606, 1608, and 1620 Fulton Avenue, Clearwater, Florida 33755. This property houses a 19-unit apartment complex located in one of the City’s designated target revitalization areas. The Fulton Apartments provide affordable rental units for very low to moderate-income residents. The original loan terms required no payments for the first five (5) years of the loan. After this deferral period, the borrower would make annual payments of $8,000.00 per year. In a letter dated October 21, 2009, Jerry Spilatro, CSF Director, requested an additional five (5) year deferment due to low cash flow from Fulton Apartments. Low cash flow is a result of low occupancy rates due to the economy and neighborhood conditions. After a review of CSF financial statements, Economic Development and Housing Council 2009-11-17 13 staff recommends a mortgage modification to extend the deferred payment period of the loan for an additional five (5) years. This will allow CSF to continue to provide affordable rental housing units in the North Greenwood community. Country Club Homes On May 8, 2008, Mr. Peter Leach, Vice President of the SP Country Club Homes LLC, presented an application for funding for acquisition costs to acquire vacant real property to build 36 affordable townhomes. The application was presented as part of the City’s Consolidated Planning Process. The amount of funding requested was not to exceed $700,000 from previous years Community Development Block Grant Funds. City Council approved the loan on June 5, 2008. The project will be located at the corner of Betty Lane and Drew Street. The original loan term is three-percent interest rate on the outstanding principal balance with deferred payment of principal and interest for five (5) years. If the developer fails to perform any the following: 1) file an application for site plan approval of the project on or before October 31, 2008; 2) obtain site plan approval from the City on or before June 30, 2009; or 3) commence construction of the Project on or before December 31, 2009, then Developer agrees, upon written demand by the City to convey the Property to the City by Special Warranty Deed in lieu of foreclosure. Given the current economic conditions and the state of the housing market, the Developer is unable to meet the agreed upon timelines and has requested an extension. After careful review, Economic Development and Housing staff recommends a mortgage modification to extend the timeframes for an additional five (5) years. This extension will allow the Developer time to complete the site plan approval, construct, and sell the affordable townhomes in the East Gateway District. In response to questions, Economic Development and Housing Director Geri Campos Lopez said low cash flows are due to low occupancy rates. The Fulton Apartments are difficult to rent out because of the smaller units and do not offer much space for families with older children. Four of 19 units are vacant. Economic Development and Housing Assistant Director Jim Donnelly said many individuals are moving back home. Staff was directed to provide a list of properties, and their occupancy rates, for which the City has a vested interest. In response to questions, Ms. Lopez said staff is comfortable that Country Club Homes will be able to meet the 5-year timeline. If nothing happens, then the city owns the property. Council 2009-11-17 14 It was requested that staff provide shorter timelines for future mortgage modifications and add property maintenance requirements to the agreements. Vice-Mayor Paul Gibson moved to approve mortgage modification agreements for Community Service Foundation, Inc. (Fulton Apartments) and SP Country Club Homes LLC (Country Club Homes) and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. Miscellaneous Reports and Items 10. City Attorney Reports 10.1 Authorize payment of judgment in Case 99-7479-CI-11, School Board of Pinellas County v. City of Clearwater, in the amount of $197,295.36 plus interest of 11% per annum from September 16, 2008. In 1999 the School Board of Pinellas County brought a suit against the City of Clearwater contending that it was exempt from Clearwater’s stormwater utility/user fee, and it sought to have Clearwater’s Stormwater Utility Ordinance declared void, or alternatively, to have the ordinance declared inapplicable to the School Board. The School Board also sought damages equal to all stormwater utility/user fees previously paid to Clearwater, together with prejudgment interest. Clearwater counterclaimed for unpaid stormwater utility/user fees. While the case was pending in the Circuit Court, the First District Court of Appeals decided City of Gainesville v. State, Department of Transportation, 920 So.2d 53 (Fla. 1st DCA 2005). The ruling of that case was that the state (or its subdivisions) could not be forced to pay stormwater utility fees in the absence of a written contract. Based upon City of Gainesville case the circuit court granted judgment to the School Board. On appeal to the Second District Court of Appeals the circuit court decision was affirmed. As a consequence, while the City’s stormwater utility ordinance has been declared valid and our stormwater utility fee has been determined to be a valid user fee, the court has determined that the School Board enjoys sovereign immunity and may not be forced to pay for stormwater utility services. The final judgment is for $197,295.36 together with interest at 11% per annum from September 16, 2008. Total principal and interest through November 17, 2009 is $222,803.21. Council 2009-11-17 15 It was stated that State Code requires that stormwater be provided to schools. The 11% interest rate is a statutory requirement and ordered by the courts. Councilmember John Doran moved to authorize payment of judgment in Case 99-7479- CI-11, School Board of Pinellas County v. City of Clearwater, in the amount of $197,295.36 plus interest of 11% per annum from September 16, 2008. The motion was duly seconded and carried unanimously. 11. City Manager Verbal Reports 11.1 City Manager Verbal Reports It was stated that representatives from 5 hotels on South Gulfview wish to meet with Building Construction Manager Perry Lopez to discuss ways to expedite the project, review signage and potentially adding pavers and trees. Discussion ensued. Staff was directed to provide information regarding additional cost for pavers and if hoteliers are willing to help pay for additional costs. The council recessed from 8:07 p.m. to 8:12 p.m. 12. Council Discussion Items 12.1 Provide guidance on an employee/retiree benevolent fund to defray the cost of increased health care out of pocket expenses. The council recently approved a new health care contract with CIGNA for CY 2010. While the employee premium cost for the base plan did not increase, the out of pocket costs should employees use the benefit increased significantly. The Council directed staff to explore a "benevolent fund" that would help defray these costs. Staff researched different options to cover the new out of pocket costs for hospital admission, outpatient admission and maternity admissions. Additional options would be to pay for emergency room visits and additional AFLAC coverage. The spread sheet indicates the annual costs for the following reimbursements: Providing a $500 reimbursement per hospital admission is estimated to cost $75,000 based on projected use. Providing a $300 reimbursement per outpatient admission is estimated to cost Council 2009-11-17 16 $208,000 based on projected use. Providing a $1400 reimbursement per maternity admission is estimated to cost $30,000 based on projected use. Total annual cost is estimated at $313,000. Providing reimbursement for estimated emergency room visits would be $699,000. Third party administrative cost is estimated to be $3.00 per employee/retiree per month or $63,000. Premium for an additional AFLAC $500 per admission hospitalization rider for those 483 currently enrolled in the AFLAC Hospitalization plan is estimated at $60,000. Total of all options would be an increased cost to the City of $1.135 million. If directed to go forward with any of these options, the funding would need to come from the Central Insurance Fund reserves. The current approved plan already allocates $170,000 Central Insurance Fund reserves and the costs of any clinic related expenditures would also need to be funded from reserves. The below schedule shows how the City, employee, and total cost for the no plan changes CIGNA plan verses the approved CIGNA plan (based upon budgeted positions and current employee enrollment). 2010 2010 Difference CIGNA No Approved Plan CIGNA Plan Changes City Cost $11,814,777$10,292,582 $1,522,195 Employee $ 3,245,652 $ 4,231,853 ($986,201) Cost Total $15,060,429$14,524,435 $535,994 The current approved plan (both City and employee cost) is $14.5 million. Any expenses approved for reimbursing out of pocket expenses, etc. would be an additional cost to the City. This total cost should be compared to the no change plan cost of $15.1 million (both city and employee cost). In response to a question, Gehring Group representative Kurt Gehring said less than 10% of employees participate in the Flexible Spending Account option. Human Resources Director Joe Roseto said staff was analyzing the Request for Proposals for the Health Clinic and expect the item to go before Council on December 17, 2009. Staff anticipates the clinic to be up and running by March 2010. There was no consensus to proceed with an employee benevolent fund. Staff was directed to proceed with plans for health clinic. Council 2009-11-17 17 12.2 Commercial Foreclosures and Six Month Occupancy - Councilmember Gibson Assistant City Manager Rod Irwin said commercial foreclosures are an issue in the East Gateway area. Lost tenants are not replaced for 6 months and property owners incur a substantial cost to bring property to current code standards. Planning and Development Director Michael Delk said current ordinance addressing non-conforming uses and structures is citywide and has been in place for a long time. Current code has been successful in adding value and increasing tax base. The issue is precipitated by single occupancy properties that have sat vacant for a long time and property owners do not want to bare cost to bring up to code. Mr. Delk said an extended timeframe may discourage property owners from making major investments. Discussion ensued with no consensus to implement a timeframe extension. 12.3 Communities Putting Prevention to Work - Mayor Hibbard It was requested that the city submit a letter supporting Pinellas County’s federal grant application to implement programs that help form healthy habits. There is no financial obligation to the city. Consensus was to provide a letter of support. 12.4 County Charter Review Committee Staff was directed to submit the Mayor's name if a decision has not been made. 13. Other Council Action 13.1 Other Council Action Councilmember George N. Cretekos expressed concern regarding work on ordinance to allow rental on trail getting pushed back due new assignment hotel density. It was stated the proposed ordinance is still on the December timeframe. Councilmembers reported on events in which they recently participated and reviewed upcoming events. Council 2009-11-17 18 Adjourn The meeting was adjourned at 9:12 p.m. ~y~ Mayor City of Clearwater Attest Council 2009-11-17 19