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10/15/2007 CITY COUNCIL WORK SESSION MINUTES CITY OF CLEARWATER October 15, 2007 Present: Frank Hibbard Mayor John Doran Vice-Mayor Carlen Petersen Councilmember George N. Cretekos Councilmember Paul Gibson Councilmember Also present: William B. Horne II City Manager Joe Roseto Interim Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Brenda Moses Board Reporter The 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 . 1. Presentations Service Awards Ten service awards were presented to City employees. The October 2007 Employee of the Month Award was presented to Julie Schultz, Parks & Recreation Department. International Road E-O Driving Competition Award for Solid Waste Recognized Solid Waste drivers Mark Beery and Anthony Hadley for their efforts and accomplishments at the Solid Waste Association of North America’s International ROAD-E-O held September 29, 2007. The Council recessed from 1:51 to 1:57 p.m. to meet as the CRA (Community Redevelopment Agency) and the Pension Trustees. Economic Development 10-Year Plan Economic Development & Housing Director Geri Campos Lopez reviewed the last ten years of economic development in the City and future business development plans. Economic Development Coordinator Diane Hufford was commended for her efforts. Marine and Aviation Approve the Marina five-year business plan for FY 2008 through FY 2012, including increasing slip fees to market rates, charging slip fees by square footage rather than linear foot for recreational slips, charging commercial tenants for slip location in the marina, decreasing the Council Work Session 2007-10-15 1 amount of discount on fuel sales, and amending the dock permit to reflect slips revert back to the City if tenant sells vessel. The Clearwater Municipal Marina is an enterprise fund of the City of Clearwater. It is required to operate both efficiently and effectively to generate revenues needed in excess of expenses to be not only self-sustaining but to build reserves sufficient to offset or at least minimize borrowing funds for future development or future replacement. Current projections for Fiscal year 2007 indicate a deficit of ($175,000) with increasing shortfalls in future years without reversing its current trend. Revenues must exceed expenses, and costs must be controlled. The intent of this business plan is to provide a five-year plan for the Municipal Marina in order to improve its financial performance. By City Code Sec. 33.028, the City Manager is authorized to approve vessel slip rent increases up to 10% annually, based on surveys of rates charged by other municipal marinas. Any proposals to raise rates in excess of 10% require approval of City Council. Current five-year projections without changes to the operations of the Marina, shows steadily declining results of operations and would allow for little improvements to the infrastructure. Losses are projected to range from approximately $300,000 in FY 2008 to nearly $450,000 in FY 2012. By meeting the goals of the proposed business plan, the results of operations will be improved to a loss of $123,000 in FY 2008 to a gain of nearly $500,000 in FY 2012, with increased emphasis on capital improvements. In order to improve the financial status of the Marina operation, the business plan sets forth goals, objectives and strategies to be implemented in FY 2008. To reach these goals, staff respectfully requests that City Council approve: 1) Incremental increases as submitted to reach average market rate for private residential, non-residential and commercial rates; 2) Direct staff to prepare an amendment to Sec. 33.028 of Code of Ordinances to include market surveys of all local area marinas, not just municipal marinas when comparing rates; 3) Charge slip fees by the square-foot for recreational slips, rather than the linear foot; 4) Charge commercial slips for location in the marina; 5) Increase marketing and advertisement toward transient recreational boaters; 6) Maintain control over City slips by amending the dock permit to reflect the slip does not go along with the sale of any vessel and reverts back to the City for the next person on the waiting list; and 7) Decrease the amount of discount on fuel sales. 1. & 2. Incremental increases to reach average market rate. Resident Rates This five-year plan includes incremental increases in slip rents for residents at the following percentages. It should be noted that in 2012, the slip rent for private residents will be $14.84 per foot per month, which is still below the rate of the downtown boat slips. All Slip rents were increased 10% June 1, 2007. FY 2008 – 15% FY 2009 – 25% FY 2010 – 25% FY 2011 – 25% FY 2012 – 25% Council Work Session 2007-10-15 2 Non-resident rates The rate for non-residents will increase on a different scale. Using the same scale, non- residents would pay almost triple the rate for residents: FY 2008 – 15% FY 2009 – 25% FY 2010 – equal the downtown rate of $15.75 per foot FY 2011 – raised .25 cents to $16.00 per foot FY 2012 – raised .25 cents to $16.25 per foot The rate of commercial rates already incorporate a premium over recreational rates and will increase on a different scale: FY2008 – 15% FY2009 – 25% FY2010 – 25% FY2011 – 10% FY2012 – 10% 3. Charge slip fees by the square-foot rather than linear foot. Boats are being built wider and longer and taking up more space from side to side. In order to get fair revenue for the space being used, it would be prudent to calculate slip fees for recreational boats by square-foot rather than linear foot. 4. Charge commercial slips for location in the marina. The preferred location in the Marina is along Coronado Drive. Renters of those slips should pay a premium over the lower visibility areas of the Marina. 5. Increase marketing and advertisement toward transient recreational boaters. Increasing the number of transient slip nights provides the ability to generate significant additional revenues without impacting current tenants. 6. Maintain control over City slips by amending the dock permit to reflect the slip does not go along with the sale of any vessel and reverts back to the City for the next person on the waiting list. The current transfer fee policy generates no revenue to the City because most tenants have been grandfathered out of the policy. Additionally, the policy itself eliminates most transfer fee payments. The ability to transfer slips when a boat is sold puts additional value on the assets owned by tenants. There is very little movement on the waiting list due to the ability to “sell” the occupancy of the slip with the boat. As an alternative to the proposed change, if the existing transfer policy was changed to require the transfer fee in all instances of transfer of ownership, the Marina would be able to generate revenue and the value of the slip would benefit the City and boat owners. 7. Decrease the amount of discount on fuel sales. Council Work Session 2007-10-15 3 Currently, the Marina offers discounts to all Marina commercial tenants, private “recreational” tenants and large volume transients. The discounts are: $.05 off for any boater receiving 500 or more gallons of diesel; $.14 off for any private tenants receiving any amount of fuel; $.27 off for any commercial tenants receiving any amount of fuel. In FY 2006, a total of 300,431 gallons of gasoline were sold. Sixty-seven percent (67%) of total sales received a discount. A total of 692,421 gallons of diesel were sold. Ninety-eight percent (98%) of total diesel sales received a discount. A one-penny decrease of the discount will generate $6,924 increase in revenues. A seven-cent decrease will generate $48,469.47 in revenues. Proposed discount for commercial tenants: Rather than raising the profit margin, decreasing the amount of discount would achieve the same end result of increasing revenues from fuel sales: Drop the $.05 discount for 500 or more gallons of diesel to any boater. Provide a $.10 discount for private tenants of the Marina. Provide a $.20 discount for commercial tenants of the Marina. Continue to conduct surveys of other marinas to determine an ultimate price to charge for fuel. In February 2007, a survey of fuel prices was conducted with 27 marinas on the west coast of Florida. The average retail diesel price was $2.45 per gallon. Clearwater was selling diesel for $2.22 per gallon before discounts. There were only three marinas with diesel at a less expensive rate. The average retail gas price was $2.81 per gallon. Clearwater was selling gasoline at $2.59 per gallon before discounts. At their meeting of October 10, 2007, the Marine Advisory Board unanimously accepted the Marina Business Plan as submitted, including rate increases as proposed, due to the need to generate adequate revenues for the marina to be competitive and to accumulate sufficient revenues to rebuild the facility. Discussion ensued. Concern was expressed that a 25% increase in boat slip rates for the first 3 years would adversely impact Marina businesses. Assistant City Manager Rod Irwin said staff understands Council’s concerns regarding the timing of rate increases. However, as the Marina is an enterprise fund, the Marina’s budget must be balanced in order to avoid using ad valorem taxes for operations. In response to questions, City Attorney Pam Akin said the City owns the boat slips. The maximum period allowed per Charter for a license agreement is five years. Marine and Aviation Director Bill Morris said fuel discounts are competitive and ensure retention of the largest fuel users at the Marina. Finance Director Margie Simmons said policy regarding boat slip rates has been in place for some time. The Marina now pays a PILOT (payment in lieu of taxes) fee and the cost of benefits and services have increased. Reversing the rate schedule would impact projected revenues. Council Work Session 2007-10-15 4 It was requested that a Marine Advisory Board representative attend Thursday’s Council meeting. The Mayor recognized Boy Scout Troop PAC484 in attendance to observe the meeting. Solid Waste/General Support Services Extend a contract with Angelos Aggregate Materials Ltd., Largo, FL, in the amount of $860,000 for the disposal of Construction and Demolition debris, Brush and Yard Waste and Class III waste for the period November 1, 2007 through December 31, 2008 and authorize the appropriate officials to execute the same. (consent) Approval of this item will extend the current contract for an additional 14-month period at the same rates and under the same conditions. The vendor accepts this type of debris/waste at their Largo location. Their rates for C&D are $33/ton, for Brush and Yard Waste $31.50/ton and Class III Waste $37.50/ton. For the past 10 months, the City has disposed of debris/waste to this vendor totaling $614,000. By disposing of certain debris at Angelo's Aggregate Materials, the Solid Waste/General Services Department saves between $25,000 and $50,000 annually. Angelo's Aggregate Materials’ nearby location results in savings in fuel and labor for the Solid Waste Department. In response to a question, Director of Solid Waste/General Services Tom Downes said there is a separate contract for hurricane debris removal. This contract is only for curbside collection. Engineering Approve a work order to Owen Ayres and Associates, Inc. (EOR) in the amount of $140,000 for professional engineering services related to the design of the new Clearwater Beach Recreation Center Boat Ramp, and establish the capital improvement program (CIP) project 0315- 93408,Clearwater Beach Recreation Center Boat Ramp. (consent) This work order is for the design and preparation of the construction plans and bid documents for the replacement of the existing concrete boat ramp located at the east end of Bay Esplanade and adjacent to the Clearwater Beach Recreation Center. The existing boat ramp was constructed in the mid 1950’s and is heavily used by the boating public. In recent years, a steep drop-off has developed at the end of the concrete ramp due to tidal and wave scour action. This scour has undermined the ramp embankment causing the concrete slabs to shift and drop. This advanced deterioration of the ramp as well as the steep drop-off prompted the Marine and Aviation Department to close the ramp for public safety. Due to citizen requests to reopen the boat ramp, temporary repairs were completed and operational signage installed. The boat ramp was reopened to the public and is inspected daily. Additional temporary repairs are completed as needed to keep the boat ramp operational. The design of the new boat ramp will incorporate additional submerged land extending the boat ramp further east into Clearwater Harbor thereby eliminating the drop-off. The acquisition of the additional submerged land is in process. Council Work Session 2007-10-15 5 Owen Ayres and Associates, Inc. will prepare final construction plans, technical specifications and bid documents for the replacement boat ramp based on the following work elements: sea-grass survey, ecological investigation report, hydraulic evaluation, and wave action criteria. Conceptual engineering study and plans’ submittal for City review and approvals at 30%, 60% and 90% stages of design, and preparation of Engineer’s construction cost estimate at 30%, 60% and 90% stages of design. Construction materials and costs will be monitored throughout the design process. Preparation and submittal of all necessary permit applications including SWFWMD, DEP, ACOE, Coast Guard, and Pinellas County, as well as resolving all permit agency requests for additional information until final permit approvals. All other work necessary and incidental to the completion of the project during the final design phase including an updated and detailed Engineer’s construction cost estimate at 100% stage of design. Owen Ayres and Associates, Inc. is one of the City’s Engineers-of-Record. This work order was negotiated in accordance with the Consultants Competitive Negotiations Act. The City of Clearwater Marine and Aviation Department will own, operate, inspect and maintain the new boat launch facility. In response to a question, Assistant Engineering Director Glenn Bahnick said the new ramp is expected to last more than 50 years. Owen Ayres was chosen as the EOR due to their experience in marine environments and with permitting agencies. The project is expected to be completed within 4 months. Discussion ensued regarding ownership of the bottomlands. It was stated that the property owner has not indicated how ownership will be conveyed to the City. Appraisal of the bottomlands is expected within a month. It was felt that the issues related to control of the bottomlands needs to be addressed prior to construction of the ramp. Consensus was to pull item. Accept a perpetual Water Main Easement over, across and under a 4,712 square-foot portion of Block B and a vacated 60-foot right-of-way for Florida Avenue, SUBURB BEAUTIFUL, and a Sanitary Sewer Easement over, across and under a 3,685 square-foot portion of Block A and said vacated Florida Avenue right-of-way, SUBURB BEAUTIFUL, both as conveyed by Boos- Gulf-to-Bay and Keene, LLC, a Florida limited liability company, given in consideration of receipt of $1.00 and the benefits to be derived therefrom. (consent) Boos-Gulf-to-Bay and Keene, LLC ("Grantor") is constructing a new CVS Pharmacy at the southwest corner of Gulf-to-Bay Boulevard and Keene Road. The site plan for development was approved by the CDB (Community Development Board) on February 20, 2007. The subject easements grant the City authority lying five feet either side of the installed water mains and sanitary lines for the continued maintenance and replacement of the lines as necessary. Should the Grantor or its successors in interest ever require the lines to be relocated, the Grantor is required to relocate the lines at Grantor's expense and convey a new easement over the relocated lines. It was remarked that the City has fairly high landscaping standards. It was felt that council should address landscaping standards at a future meeting. Council Work Session 2007-10-15 6 Planning Approve an amended Development Agreement between Triangle Old Bay Holdings, LLC, (the property owner) and the City of Clearwater (previously DVA 2006-00001 approved by City Council on February 15, 2007) to modify the effective date of the agreement, and the provisions of the phasing schedule, as well as add language pertaining to a proposed site plan modification (FLD2007-07025). The subject property is 5.18 acres (including 0.2 acre located within the Preservation (P) Future Land Use Plan category that does not generate density). It is generally located on the west side of North Fort Harrison Avenue and bounded by Jones Street to the south, Georgia Street to the north and Clearwater Harbor to the west. On September 18, 2007, the CDB approved a Flexible Development application (FLD2007-07025) to amend the previously approved FLD2006-05030 (CDB approved on November 21, 2006) for the construction of a mixed-use development consisting of 358 attached dwellings (84.43 units/acre) and 13,235 square-feet of non-residential floor area (0.5 F.A.R.). With this approval, the CDB approved the use of 109 attached dwellings and 13,235 square-feet of non-residential floor area from the Public Amenities Incentive Pool of the Clearwater Downtown Redevelopment Plan in exchange for substantial contributions to the Master Streetscaping and Wayfinding Plan along North Fort Harrison Avenue, Osceola Avenue, Jones Street and Georgia Street as well as the their intersections (valued at approximately $3 million). Further, the development itself is a mixed-use project that will further the Plan’s major redevelopment goals and character district vision. The proposed Development Agreement will amend the previously approved Development Agreement as follows: Amends Section 6.1.3.1 to modify the number of dwelling units being constructed and pulled from the Public Amenities Incentive Pool in each of the three phases; Amends Section 6.1.3.1 to add a new paragraph stating that if the Developer sells combined units in any of the three towers, thereby reducing the unit count in the towers, the Developer would not lose entitlements to those units, but would instead be able to use those units in Harrison Village, subject to a revision to the approved Flexible Development application; Amends Section 6.1.3.2 by correctly stating that the building height to the highest point of the finished flat roof surface of the two buildings comprising Harrison Village shall not exceed 48 feet above the mean site elevation for the Harrison Village site; Amends Section 6.1.3.7 to modify the timeline for the implementation of streetscape improvements along the west side of Osceola Avenue; Adds Section 6.1.6 [first paragraph], which clarifies the construction of the parking garage across the project phasing and provides language identifying that sufficient parking will be provided to meet parking requirements for each phase of the development; Adds Section 6.1.6 [second paragraph], which provides language stating that if a construction hiatus of more than 60 days occurs, the developer shall install and maintain landscaping improvements and limited temporary architectural façade improvements across the northern face of the parking structure which obscures at least 75% of the view of vehicles and Council Work Session 2007-10-15 7 the interior of the parking structure from street level; and that in the event the subsequent phase does not start on schedule as per Exhibit “E”, then developer shall fully finish the façade of the northern face of the parking structure. Deletes Section 6.2.2, which referenced the consideration of a right-of-way vacation that has now already occurred; Adds Section 14, which states that the previous Exhibits “B”, “C”, “D”, “D-1”, “D-2”, “D-3”, “E”, “E-1”, “E-2”, “E-3”, and “H” have been replaced with new Exhibits of the same names and purposes. It is noted that Exhibit “E”, which is the Phasing Schedule had been modified to provide for a new commencement date of December 31, 2008 and a new completion date of December 31, 2016; Adds Section 25, which states that in the event the City Council approves a proposed amendment to the existing ordinance (Ordinance No. 7769-07) vacating a portion of the existing Osceola Avenue between Jones Street and Georgia Street, the Developer shall have the option of temporarily finishing Osceola Avenue to the standards specified in said ordinance amendment prior to Phase 1. Once the Developer has completed Osceola Avenue to these standards and has had the work accepted as complete by the City, the City would release Developer’s Letter of Credit posted in compliance with the ordinance; and Adds Section 26, which provides language pertaining to the provision of public art in compliance with the City’s Public Art Ordinance and in keeping with the project phasing. The proposal is in compliance with the standards for development agreements, is consistent with the Comprehensive Plan and furthers the vision of downtown redevelopment set forth in the Clearwater Downtown Redevelopment Plan. The CDB reviewed this Development Agreement at its public hearing on September 18, 2007, and unanimously recommended approval. In response to questions, Assistant Planning Director Gina Clayton said during each phase of the project, the developer will make significant improvements to public rights-of-way. Per state law, development agreements are good for ten years. Official Records and Legislative Services Review revisions to Council Rules The revisions to the rules have been drafted based on direction provided at the October 1, 2007, Work Session. If no further changes are needed a resolution to adopt the rules will be on the October 17, 2007 Council agenda. Discussion ensued regarding Council breaks. Consensus was that Council will be more sensitive to staff’s need for breaks. Consensus was to amend Rule 1, sentence 3, to read: “No public input will be accepted at work sessions except when permitted by Council.” Council Work Session 2007-10-15 8 Other Council Action Councilmember Cretekos requested that Council consider honoring former Pinellas County Legislative Delegation secretary and Clearwater resident Donna McGaughey for her many years of service. Consensus was to invite Ms. McGaughey to a future council meeting. Councilmember Cretekos said the SCLC (Suncoast League of Cities) will hold a meeting in Pinellas Park on Saturday. The SCLC agenda will include discussion of Brighthouse Networks’ decision to move government access channels to their digital tier. A SCLC resolution proposes that the change be delayed until February 2009. Adjourn The meeting adjourned at 4:56 p.m. Council Work Session 2007-10-15 9