Loading...
09/20/2010 CITY COUNCILWORKSESSION MINUTES CITY OF CLEARWATER September 20, 2010 Present: Mayor Frank Hibbard, Vice Mayor John Doran, Councilmember George N. Cretekos, Councilmember Paul Gibson, and Councilmember Bill Jonson. Also William B. Horne II - City Manager, Jill S. Silverboard - Assistant City present: Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, and Cynthia E. Goudeau - Deputy City Clerk. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. The meeting was called to order at 9:00 a.m. at City Hall. 1. Presentations - Given. 1.1 Service Awards Four service awards were presented to city employees. The September Employee of the Month Award was presented to Jeff Rosenbaum, Solid Waste/General Services. The Bimonthly Team Award for September and October was presented to the Employee Health Center Implementation Team: Dale Fitzpatrick, David Clark, John Memmer, Carl Freeman, Leo Mazzullo, Tom Chaplinsky, J.C. Jones, Chris Topping, Jerry Absher, Jaime Cuervo Garzon, Brian Dort, Charles Williamson, Kathleen McMullen, Gene Nyland, Jeffrey Nolan, Chris Trauner, Michael Mouroukis, Angela Aldrich, Patricia Warren, Earl Barrett, Heather Parsons, Betsy Clement, Shawn Stafford, Alexis Wells, Julie Duffy, Chrystal Lee Lun, and Brian Craig. 1.2 Present NACWA Gold Awards to Loren Pratt and Jeff Borden for the East and Northeast Wastewater Treatment Plants Council recessed from 9:13 a.m. to 9:40 a.m. to meet as the Community Redevelopment Agency and the Pension Trustees. 2. Office of Management and Budget Council 2010-09-20 1 2.1 Adopt Ordinance 8215-10 on second reading, declaring the millage rate to be levied for the Fiscal Year beginning October 1, 2010 and ending September 30, 2011, for operating purposes including the funding of pensions, debt service, and road maintenance for capital improvement expenditures at 5.1550 mills. 2.2 Adopt Ordinance 8216-10 on second reading, adopting an operating budget for the Fiscal Year beginning October 1, 2010 and ending September 30, 2011. 2.3 Adopt Ordinance No. 8217-10 on second reading, adopting the Capital Improvement Program budget for the Fiscal Year beginning October 1, 2010 and ending September 30, 2011; approving the Six-Year Capital Improvement Program which shall be reevaluated at the beginning of each fiscal year. In response to a question, Budget Director Tina Wilson said staff works with the Planning Department to ensure projects are consistent with the comprehensive plan. 2.4 Amend the City’s fiscal year 2009/10 Operating and Capital Improvement Budgets at third quarter and pass Ordinances 8218-10 and 8219-10 on first reading. The fiscal year 2009/10 Operating and Capital Improvement Budgets were adopted in September 2009 by Ordinances 8100-09 and 8101-09. Section 2.521 of the City’s Code of Ordinances requires the City Manager to prepare a quarterly report detailing income, expenditure estimates, collections, the explanation of significant variances, as well as the financial status of all capital improvement projects. The memorandum and accompanying report provide this information and outlines the issues at third quarter that require amendment. 3. City Auditor 3.1 Approve the filing of the Office Depot settlement offer with the State of Florida Attorney General Settlement Administrator to obtain a claim estimated at $59,999.96, resulting from the City being placed in a higher cost office supplies pricing plan than originally approved. (consent) In May 2009, City Audit began an audit of office supply purchases from Office Depot (OD), after reading various articles and receiving information describing allegations of apparent pricing discrepancies. Specifically, that customers did not receive the proper discounts for all purchases made under an existing office supplies purchasing agreement, known as the US Communities Contract. Audit analyzed purchases made from March 30, 2006 through March 30, 2009, totaling approximately $872,000. During this period, Clearwater piggybacked onto a nationwide office products program known as the US Communities Contract for Office and Classroom Supplies, awarded most recently (January of 2006), by the County of Los Angeles, California (lead public agency) to OD. Council 2010-09-20 2 In summary, the audit identified the following, documented in an audit report dated Oct 8, 2009: In January 2006, coinciding with the beginning of their third term as contract holder, OD introduced a new, second pricing option (Option 2) as an alternative to the usual discount off list price format (frequently referred to as either Option 1 or List Less 45% Pricing). This second option became known as Option 2 or Web Less 10% pricing. In an October 23, 2008, memo sent by an OD Senior Vice President to the Acting General Manager for Los Angeles County Purchasing, the City of Clearwater was included in a listing of some 250 agencies participating in the Option 2 program. In the memo, OD affirmed to Los Angeles County (the Master Agreement holder) that each of the agencies had been contacted with regard to Option 2 pricing. Furthermore, they affirmed that each agency had opted to remain on Option 2 pricing and that each agency had signed an acknowledgement indicating they had been provided a cost comparison. The City of Clearwater has no documentation or recollection of such a meeting (reported to us by OD as having taken place on May 6, 2008, over 2 years after the inception of the Option 2 pricing). Furthermore, OD has been unable to provide said confirmation/documentation to the City of Clearwater. Based on a lack of confirmation from both the City and OD, it is clearly evident that Clearwater (similar to other government entities) was placed in a different pricing program (Option 2) without our knowledge, resulting in the City overpaying for office supplies for nearly a three year period. On June 23, 2009, Audit and Purchasing met with OD regional representatives to discuss the Option 1, Option 2 pricing issue. OD offered to correct the situaton through a credit for the higher priced Option 2 purchases (determine to be $54,249.35 or 6% of the total purchased from OD for the stated period). However, City Audit opted to completely audit the matter to ensure that OD complied with all parts of the US Communities Contract pertaining to all purchases made by the City. Resources in California and the Florida Attorney General’s Office, who had or were performing similar audits, were contacted to help identify additional specific components pertaining to the contract. Audit subsequently identified 2 additional pricing concerns: (1) misrepresentation of OD items as "wholesaler" items, and (2) apparent violation of "most favored public entity pricing," resulting in identifying additional overpricing totaling $112,081.69 (for a total of $166,331.04). The audit requesting payment was forwarded to OD and a meeting with OD corporate representatives was held on Dec 2, 2009. While OD agreed, in principle, that the Option 1, Option 2 pricing issue did provide some confusion/ambiguity and that OD would correct this through a refund, they disagreed with our two other concerns, citing the City’s misunderstanding of the US Communities contract pertaining to the misrepresentation of wholesaler items and the most favored public entity pricing. Council 2010-09-20 3 City Audit then sought the Legal Department’s assistance to resolve the matter with OD. After an exchange of numerous letters, OD’s refusal to accept our two other concerns, and the possibility of litigation against OD, the Florida Attorney General released, on June 2, 2010 (after a 2 year investigation), an Assurance of Voluntary Compliance (AVC) agreement resulting in OD paying over $4.5 million into an interest-bearing escrow fund to pay claims to customers (like Clearwater) for the Option 2 pricing issue. The AVC listed the allegations investigated, which included the same 3 reviewed by City Audit. However, the Florida Attorney General determined that monetary relief would only be sought and subsequently obtained on the Option 1, Option 2 pricing issue. The other two would most likely require lengthy and costly litigation with no guarantee of any monetary relief. Consequently, the City Legal and Audit departments agree with the AVC recommending that the City complete and submit the claim form to recover the estimated $59,999.96 (includes interest) due the City for being placed in a higher cost office supplies pricing plan without our knowledge. The AVC requires claim completion and submittal to the third party settlement administrator no later than Nov 15, 2010. It is estimated upon claim approval, the City will receive payment within a few weeks. Additional information and spreadsheets referenced in the Office Depot Pricing Audit Report are available for review in the City Audit department. 4. Economic Development and Housing 4.1 Approve an Agreement between the City of Clearwater and the Clearwater Regional Chamber of Commerce (CRCC) to produce and distribute the Official Clearwater, Florida Visitor Guide in Fiscal Year 2010-2011 at a cost of $26,000 and authorize the appropriate officials to execute same. (consent) In Fiscal Year 2009-2010, the CRCC entered into a three-year contract with Heron Publications to produce the annual Visitor Guide that includes Clearwater and Clearwater Beach businesses. In 2010, the first year of the three-year contract, 50,000 copies were printed. Production of the Visitor Guide includes selling of advertisement space, writing copy and verification of existing visitor information, photography, development of graphic components and printing. The Visitor Guide will be produced both in print and electronically. The CRCC will also be responsible for the distribution/fulfillment of the Visitor Guide. The print version is mailed to consumers, travel trade organizations and is handed out at the I-10, I-75, and I-95 State Welcome Centers and Clearwater and Clearwater Beach Visitor Information Centers. Visitor Guides are inserted in appropriate group Welcome Packets to include the Outback Bowl, Jazz Holiday, Council 2010-09-20 4 Super Boat Races, Ironman, travel writers familiarization tours, conferences, etc. The electronic version will be posted on visitclearwaterflorida.com. Request forms will be available on the website for consumers to request a Visitor Guide by mail. CRCC also accepts telephone and email requests. The cost for the Visitor Guide includes copy writing and proofreading, photography, graphic design, printing, electronic formatting, postage/shipping, fulfillment company charge, envelopes and administrative costs. The personnel involved in producing the Visitor Guide are Heron Publishing’s team, the CRCC staff, and City of Clearwater staff. Final editorial and graphic sign off is the responsibility of the CRCC. $26,000 has been budgeted in the FY 2010-11 Economic Development and Housing Department operating budget (contractual services) to fund this agreement. Details are provided in the CRCC’s Scope of Work and Estimated Costs Breakdown for FY 2010-11. The term of the contract agreement is one year. In response to a question, Economic Development and Housing Director Geri Campos Lopez said the visitor guide will be mailed on request. Staff will review the mailing list and reimburse CRCC on a monthly basis. 4.2 Award a contract for professional services pursuant to Clearwater RFP 17-10, Development of an Economic Development Strategic Plan, to TIP Strategies, Inc. of Austin, Texas, for a fee of $75,000, plus out-of-pocket expenses not to exceed $5,000, and authorize the appropriate officials to execute same. (consent) On June 1, 2010, the City Council approved the release of a Request for Proposals (RFP) 17-10 for the Development of an Economic Development Strategic Plan for the City of Clearwater. The RFP sought a qualified economic development consultant firm to prepare a citywide Economic Development Strategic Plan that would provide a framework for increasing the City’s tax base with the ultimate goal of sustaining and expanding the economic base in order to provide for a high quality of life for all residents. Thirty-one firms responded to the RFP and their proposals were reviewed and ranked by the five-member Evaluation Committee. Each proposal was rated according to the firm’s experience and qualifications, the presented project approach, quality of previous performance, and proposed cost. The Evaluation Committee consisted of: Michael Delk, Planning and Development Director; Geraldine Campos Lopez, Economic Development and Housing Director; Rod Irwin, Assistant City Manager; Kathleen Peters, Clearwater Regional Chamber of Commerce, Vice President of Public Affairs and Chris Steinocher, Tampa Bay Partnership, Chief Operating Council 2010-09-20 5 Officer, SVP, Marketing & Business Development. The Committee met on July 22, 2010, to discuss the proposals and short-listed five firms that best met the selection criteria. These firms were invited for oral presentations on August 17, 2010 and August 24, 2010 to further demonstrate their qualifications. The firms invited included: Analytica (Newberry, FL), Bay Area Economics (Emeryville, CA), Fairfield Index, Inc. (Tampa, FL), SRI International (Arlington, VA), TIP Strategies, Inc. (Austin, TX). Upon completion of the oral presentations, the Committee re-evaluated and re- ranked the remaining proposals. Based upon the strength of their proposal and presentation, the Committee selected TIP Strategies, Inc. of Austin, Texas, for recommendation to the Council. The primary factors used in selecting TIP Strategies included: Extensive experience related to the scope of work detailed in the RFP. This includes numerous projects within their home state of Texas, which has a competitive economic development environment, and many national engagements. Several projects have been successfully completed in Florida, including an economic development strategic plan for Lake County, Florida built upon an in-depth economic assessment TIP performed. Data presented and responses provided during their presentation indicated a solid understanding of the challenges we face in measuring and expanding our economic base. Specific examples of innovative incentives which have been successful for previous clients and unique ideas for possible incentives to be developed for the City. A strong focus on the development of realistic and practical benchmarks; measuring the success of our strategic plan implementation, identifying our position relative to our peers, and discovering best practices. Widespread experience in both gathering input from stakeholders, using a variety of methods, and building public support for economic development plans. TIP proposes to conduct the work in three phases: Phase 1Economic Analysis (Discovery) Timeframe: 2 months This phase includes review of materials, interviews with knowledgeable sources (individual and focus group meetings), and conducting a targeted analysis of relevant economic and demographic trends to reach an understanding of Clearwater’s economic base. Deliverables will include an economic analysis Council 2010-09-20 6 document (assessment, trends, and benchmarks). Phase 2 Issue Identification and Prioritization (Opportunity) Timeframe: 2 months This phase includes developing guiding principles, additional stakeholder engagement, target industry and occupational analysis, SWOT analysis, and opportunities analysis/workshop. Deliverables will include a vision for economic development, target industry recommendations and profiles, and preliminary opportunities and strategies for consideration. Phase 3 Strategic Plan (Implementation) Timeframe: 2-3 months This phase includes the development of strategies, a marketing plan, and an implementation program. Deliverables will include the strategic plan, a marketing strategy, and an implementation matrix that identifies actions to be taken, priorities, and measurements for success. TIP Strategies, Inc. will be paid the $75,000 in increments, upon completion of each phase, plus out of pocket expenses not to exceed $5,000, for a total contract amount not to exceed $80,000. The source of funds is $35,000 from the Economic Development Professional Services budget and $45,000 from the City Manager’s Flexibility Fund in special program project 181-99804. Staff was directed to provide a copy of the RFP to Councilmember Bill Jonson. 4.3 Approve a one-year funding agreement, in the amount of $150,000 between Jolley Trolley Transportation of Clearwater, Inc. and the City of Clearwater for the operation of transportation and trolley service on Clearwater Beach, Island Estates and Sand Key and authorize the appropriate officials to execute same. (consent) The Jolley Trolley Transportation of Clearwater, Inc. (Jolley Trolley) has been operating trolley service throughout the Clearwater Beach, Island Estates, and Sand Key areas since 1982. The non-profit’s mission is to reduce congestion and improve mobility in this area for both tourists and residents. The Jolley Trolley now transports 140,000 passengers per year, reducing approximately 80,000 vehicles on Clearwater Beach. In addition, the Jolley Trolley has become a tourist venue that differentiates Clearwater Beach from other beaches in the area. The Jolley Trolley has achieved many accomplishments since the change in leadership in March 2009. With a new Executive Director, the following have been accomplished: Increased ridership, advertising revenues, and charter Ordered a new trolley to be delivered in Fall 2010 Developed a website, www.clearwaterjolleytrolley.com, with search engine optimization Council 2010-09-20 7 Improved advertising displays in/on trolleys Trained drivers to be "Ambassadors of Tourism" Implemented new schedule with 99% on-time frequencies Initiated a new map and schedule of routes (every 30 minutes) Partnered with the PSTA that lead to an increase in ridership (113%) No incidents or accidents have been reported Successfully negotiated with the DDB, with continuing negotiations with Dunedin, to participate in funding, with matching PSTA funds, for service between Clearwater Beach, Downtown Clearwater and Dunedin on Fridays, Saturdays and Sundays As part of this agreement, the Jolley Trolley will prepare a quarterly report that tracks high- level financials, ridership numbers, accident frequency, and on-time adherence to schedule. The City will use these items as a measure of performance. $150,000 has been budgeted in the Parking Fund’s Fiscal Year 2010-11 operating budget to fund this agreement. The Jolley Trolley’s Business Plan covers the proposed revenues and expenditures for 2010 and 2011 and a year-end summary of activities. The term of the agreement is for one year. The Economic Development and Housing Department administers the agreement. 5. Fire Department 5.1 Approve the October 1, 2010 one-year extension to the Emergency Medical Services Advanced Life Support First Responder Agreement between Pinellas County and City of Clearwater and authorize the appropriate officials to execute same. (consent) The Pinellas County Emergency Medical Services Authority (EMS Authority) is a special district created for the purpose of providing Emergency Medical Services (EMS) throughout Pinellas County, pursuant to Chapter 80-585, Laws of Florida, and Chapter 54, Article III, Pinellas County Code, as amended. Pinellas County has contracted with various municipalities and independent special fire districts in the County to provide First Responder Services and has also contracted with an Ambulance Contractor to provide emergency and non- emergency transport services. Through this contract, Clearwater Fire and Rescue will provide advanced life support services to the residents of the City of Clearwater and to individuals within the unincorporated area of Pinellas County that are located within the Clearwater Fire Control District. The City of Clearwater has 6.49 square miles of unincorporated land located within the Clearwater Fire Control District. In 1997, the EMS Authority signed a 10-year agreement with the contract Council 2010-09-20 8 providers that expired on September 30, 2007. The EMS Authority and the contract providers negotiated a five-year Agreement commencing October 1, 2007 and ending at midnight September 30, 2012. This agreement funded six (6) rescue units and two (2) advanced life support (ALS) fire engines. In a letter dated July 25, 2008, Pinellas County terminated this agreement effective September 30, 2009, citing decreased tax revenue due to Amendment 1 and declining property values. The County began a review in 2010 of the Emergency Medical Services system. While the study was on-going, the EMS Authority proposed, and the City accepted, a one-year contract commencing October 1, 2009 and ending at midnight September 30, 2010. The contract funded five (5) rescue units and three (3) advanced life support (ALS) fire engines. The City chose to provide additional funding to operate a 6th rescue unit, Rescue 50, in place of one of the ALS engines. The study of the EMS system has not been completed. The EMS Authority has proposed a one-year extension to the 2010 contract. The extension would commence October 1, 2010 and end at midnight September 30, 2011. Under the proposed extension the County will reimburse the City for the same five (5) rescue units and three (3) advanced life support (ALS) engines as under the previous contract year. The City, however, will discontinue the additional funding necessary to operate Rescue 50. The City will upgrade Engine 50 from a basic life support (BLS) engine to an advanced life support (ALS) engine, instead. The upgrade is accomplished by replacing a firefighter with a fire medic and transferring ALS equipment to the engine. In an effort to control costs the County will reimburse cities for reasonable and customary costs, as opposed to fixed compensation amounts from past years, and the County will assume responsibility for providing electrocardiogram (EKG) monitoring/defibrillation equipment. Compensation for the fiscal year commencing October 1, 2010 shall be $5,047,389.00, which is $152,184.00 higher than the current fiscal-year payment of $4,895,205.00. Compensation is to be paid in arrears in equal monthly installments beginning on November 1, 2010. In response to a question, Assistant City Attorney Rob Surette said the county has authority to establish reasonable costs and set standards. Administration Support Manager Marty Moran said the county will be giving $150,000 more than last year. 6. Financial Services 6.1 Authorize a not to exceed amount of $400,000, to pay Gallagher Bassett Council 2010-09-20 9 Services, Inc., for workers compensation claims due and payable for the period October 1, 2010 to September 30, 2011, and authorize the appropriate officials to execute same. (consent) The $400,000 amount represents an estimate of claims expenses for the next fiscal year that will become due and payable as a result of workers’ compensation claims occurring between 1984 and 1991. The City of Clearwater is self-administered for the majority of its workers’ compensation claims, but a handful of claims (16 as of October 1, 2009) are still administered by the City’s former third party administrator, Gallagher Bassett Services, Inc. The City’s Risk Management Division pays a fee of approximately $4,000 per year for continued third party services on these claims. 6.2 Approve payment of insurance premiums up to $600,000, with effective dates beginning October 1, 2010 to September 30, 2011 and authorize the appropriate officials to execute same. (consent) The Risk Management Division of the Finance Department purchases certain insurance coverages for the City. This insurance is purchased through the efforts of two brokers: Wells Fargo and Arthur J. Gallagher and Company. (Florida). Risk Management is recommending approval of the following coverages and any other coverages that may become desirable throughout the year at a cost not to exceed $600,000. Policy Term 2009/2010 Expiring Premium 2010/2011Estimated Premium Crime and Dishonesty10/1/10-10/1/11$ 17,545$ 17,400Excess Liability/WC10/1/10- 10/1/11$373,760$368,650EMS coverage10/1/10-10/1/11$ 80,260$ 83,760Flood (specific properties)Annual term varies$ 25,835$ 35,000Storage Tank Liability5/20/11-5/20/12$ 11,678$ 25,000Fire Boat5/22/11-5/22/12$ 5,823$ 6,450Marina Oper. Legal Liab.10/1/10-10/1/11$ 16,160$ 17,085Contingency$ 68,939$ 46,655Total$600,000$600,000 6.3 Approve the restructuring of the U.S. Department of Energy Block Grant to move $244,000 grant funding from Electronic Plan Submittal project 181-99857 to City Facilities Retrofits project 181-99859 and move $244,000 of General Fund reserves from Honeywell project 315-94527 to Electronic Plan Submittal project 181-99857. (consent) On October 22, 2009, Council approved the U. S. Department of Energy Block Grant to fund the following projects: LEED Training and Certification - $18,000 Electronic Plan Submittal & Review - $244,000 Clearwater Energy Efficiency Conservation and Mobility Strategies - $350,000 Energy Efficiency Retrofit in City Facilities - $463,400 Total - $1,075,400 Council 2010-09-20 10 Since that time: The grantor is encouraging recipients to spend the grant funds as quickly as possible. The Council awarded a contract on May 20, 2010 to Honeywell for City facility retrofit energy improvements in the amount of $3,498,000 to be funded with $463,400 in grant funds as well as other funds including $808,592 of General Fund reserves. The Electronic Plans Submittal and Review project will take more time to complete than the City Facilities Retrofits project. Once staff became aware that the City could spend the grant funds in a more timely manner by allocating more grant funds to the City Facilities Retrofits project 181-99859 , replacing reserve funding, we made a request to the U. S. Department of Energy to restructure the grant. This request has been granted and staff requests Council permission to move grant funding from Electronic Plan Submittal project 181-99857 to City Facilities Retrofits project 181-99859 and move $244,000 of General Fund reserves from Honeywell project 315-94527 to Electronic Plan Submittal project 181-99857. Both projects will stay the same in total. A quarterly budget amendment will move $244,000 grant funding from Electronic Plan Submittal project 181-99857 to City Facilities Retrofits project 181-99859 and move $244,000 General Fund reserves from Honeywell project 315-94527 to Electronic Plan Submittal project 181-99857. 6.4 Increase the authorized not-to-exceed amount for actuarial services to be performed for the City by Gabriel, Roeder, Smith and Company by $100,000 to cover the estimated cost of preparing an analysis of the costs/savings of potential pension plan changes for a new City not-to-exceed amount of $160,000. (consent) Gabriel, Roeder, Smith and Company was selected through an RFP process and a five- year contract was awarded in December 2009. The contract was split between services to be paid from the Pension Plan of $210,000 for pension plan actuary work and services to be paid from City funds of $60,000 for OPEB (Other Post Employment Benefits) calculations required for financial reporting. Since that time, the Council has requested that City staff work with our actuary to analyze the costs/savings of various potential pension plan changes. The Pension attorney has stated that the costs for such analysis should be paid from City funds rather than from Pension Funds. In August, the Council authorized spending up to $200,000 from City funds for Council 2010-09-20 11 legal and actuary work related to this project. Staff estimates that it will cost approximately $100,000 for the actuary work, however, this is a not-to-exceed amount and the City will only pay for work that is performed in accordance with approved work orders. Staff will return to Council if more funds are needed, depending on how complicated this project becomes. The current City approved not-to-exceed amount is $60,000 (for OPEB calculations). The addition of this $100,000 authorization (for pension changes) brings the not-to-exceed amount to be paid from City funds to $160,000. In response to a question, Finance Director Margie Simmons said the fee is due to nature of request to cost out 17 alternatives and then looking at them in combinations. Staff was directed to provide information regarding the cost per hour and number of hours required. 6.5 Authorize staff to proceed with the potential refunding of the Water and Sewer Revenue Bonds, Series 2002. (consent) The Water and Sewer Revenue Bonds, Series 2002 have interest rates ranging from 4 to 5%. Current bond market conditions lead us to believe that we can refinance these bonds with a present value savings of 4 to 6% ($2 to $3 million). Excerpts from the City’s Debt Policy provide that: The outstanding debt will be reexamined periodically to determine whether an economical advantage exits for refinancing the outstanding debt given changes in the interest rate and bond market. As a general rule, the present value savings of a particular refunding should exceed 5% while maintaining a similar maturity schedule to the original debt. Negotiated Sale. The City may elect to sell its bond obligations through a negotiated sale. This method will usually be considered when the bond issue is refunding a prior issue or there is a unique or unusual component to the bond issue. Staff proposes the City proceed with the potential refunding with the following conditions and understandings: 1. Prepare the appropriate resolutions, offering statements, and other documents with the assistance of the City’s financial advisor, bond council, and disclosure council. It is expected that Council will approve the Bond Sale Resolution at the November 5, 2010 Council meeting. 2. If appropriate savings do not appear to be feasible, all work will stop and the refunding will not proceed. However, once all documents have been approved, the markets can continue to be accessed and the bonds can be refunded if and when the market is favorable. Staff will consider less than a 5% present value Council 2010-09-20 12 savings, depending on the dollar amount of the savings. 3. If appropriate savings do not materialize, once the City begins working with the three rating agencies, costs of approximately $60,000 will be incurred. Other costs will not occur unless the bonds are refunded. 4. Proceed with a negotiated sale (rather than competitive) as permitted by the policy due to market conditions and the fact that this is a refunding bond. 5. Use the same underwriting team of Wachovia Bank National Association (now Wells Fargo Securities), RBC Capital Markets Corporation, Fifth Third Securities, Inc, and Merrill Lynch, Pierce Fenner ad Smith Incorporated, as was used for the 2009 Water and Sewer Bond issue. These underwriters were selected via an Request for Proposal (RFP) process and staff was very satisfied with the results of that negotiated sale. In response to questions, Finance Director Margie Simmons said the principal is $48 million and includes transaction costs. Raymond James Financial Advisor Matt Sansbury said the current rate fluctuates on a daily basis but averages below 1% to 4.25%. The savings is based on rates as of September 14, 2010. There is a 1% call premium on December 1, 2011 and no penalty in 2012. 6.6 Authorize the waiving of the City’s rights to issue Recovery Zone Economic Development Bonds and Recover Zone Facility Bonds and authorize the appropriate officials to execute same. (consent) The American Recovery and Reinvestment Act (ARRA) passed by Congress in February 2009 created two new bond programs: Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds (descriptions of the bonds at the end of this agenda item). The City of Clearwater received allocations for the ability to issue such bonds in the amounts of $2,697,000 and $4,045,000, respectively. The City has reviewed this program to determine if it fits into capital and financial plans, as well as, worked with Pinellas County to see if the City could partner to use these allocations. No suitable project has been found for these bonds. The authority to issue these Recovery Zone Bonds expires on December 31, 2010. In an effort to maximize the allocation that has been made to the State of Florida, a process for waiving the City’s unused allocations has been developed. This will provide other local governments that have qualified projects an opportunity to use Recovery Zone Bonds, in addition to promoting job growth and stimulus for the State. This information will be provided to the Governor’s Office of Tourism, Trade and Economic Development who will develop an application process for cities that did not receive an allocation to be able to receive unused allocations that have been Council 2010-09-20 13 waived. Recovery Zone Bonds A category of Build America Bonds (BABs) for public infrastructure and facilities in "recovery zones" Recovery zones are designated by the issuer as: Any area with significant poverty, unemployment, or home foreclosure rates, any area currently designated as an Empowerment Zone or Renewal Community, and any area designated as economically distressed by reason of closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990 Eligible issuers include the State and local governments and certain "on-behalf-of" issuers BABs may be issued as tax credit bond or a "Direct Payment" taxable bond Benefit to issuer of a Recovery Zone Economic Development Bond is a 45% interest subsidy 100% of proceeds (net of debt service reserve and 2% cost of issuance cap) must be used for qualified economic development purpose Qualified economic development purposes include promoting development or other economic activity in a recovery zone: Proceeds can NOT be used for private activity US allocation of $10 billion allocated among the States in proportion to their relative 2008 job losses Suballocations to counties and large municipalities within a State made on the basis of relative job losses Locality may waive its allocation for further allocation within the State Counties may allocate portion of their allocation to cities within the county or, in most cases, to development authorities within the county. Must be issued by December 31, 2010 Recovery Zone Facility Bonds A new category of tax-exempt private activity bonds for financing economic Council 2010-09-20 14 development in "recovery zones" Proceeds can be used to finance depreciable property used in a trade or business in a Recovery Zone that: Eligible issuers include those entities currently eligible under state law to issue private activity bonds. US allocation of $15 billion allocated among the States in proportion to their relative 2008 job losses. Suballocations to counties and large municipalities within a State made on the basis of relative job losses. Locality may waive its allocation for further allocation within the State. Must be issued by December 31, 2010. The Council recessed from 10:30 a.m. to 10:38 a.m. 7. Gas System 7.1 Approve the first renewal of the contract (Purchase Order) with Mastec North America, Inc. for the period October 1, 2010 to September 30, 2011, for the installation of Gas Mains and Service Lines in the amount of $940,000 and authorize the appropriate officials to execute same. (consent) Mastec North America, Inc., 7221 East Martin Luther King Blvd, Tampa, FL is one (1) of two (2) contractors who install gas mains and service lines for Clearwater Gas System (CGS) to meet residential, commercial and industrial customer requirements. Mastec was the lowest bidder on bid 26-09 Installation of Gas Mains and Service Lines at Various Locations with an actual bid amount of $944,350. This will be the first rollover/renewal of bid 26-09. Mastec has agreed in writing to hold current pricing on the estimated quantities for gas mains and service lines for the period October 1, 2010 to September 30, 2011, and has provided a Performance Bond and Proof of Insurance. Funds are available in CIP 315-96377, Pinellas New Mains and Service Lines, to support these requirements. Council 2010-09-20 15 8. Human Resources 8.1 Approve the agreement as negotiated between the City of Clearwater and the Fraternal Order of Police Supervisors for the period October 1, 2010 through September 30, 2012 and authorize the appropriate officials to execute same. The most recent collective bargaining agreement between the City of Clearwater and the Fraternal Order of Police Supervisors bargaining unit is in effect until September 30, 2012. In conjunction with Article 9, Section 1, E. of the Agreement, which states in part that the Section "may be re-opened upon the written request of either party no sooner than 90 days prior to September 30, 2010 for the purpose of negotiating rates of pay and/or adjustments to pay range minimums and maximums for any bargaining unit members or represented job classifications for the period from October 1, 2010 through September 30, 2011," the City requested that the Union voluntarily agree to re-open other provisions of Article 9 in addition to Section 1 of the Agreement in order to negotiate possible cost saving measures that could help to alleviate the City’s current budget shortfall. The Fraternal Order of Police Supervisors agreed to this re-opener through a Memorandum of Understanding with the City stipulating that should the parties not be able to reach a mutual agreement on any issues negotiated through the re- opener, the negotiations would cease and neither the City nor the Union would have the right to declare an impasse. On August 19, 2010, the parties reached a Tentative Agreement that was subsequently submitted by the Union to its members who ratified the agreement by a vote of 33 to 10 on August 28, 2010. The Agreement provides that pay range minimums and maximums for classifications represented by the bargaining unit will not be adjusted, and that employees will not be provided with an across-the- board general wage adjustment, for the period from October 1, 2010 through September 30, 2011. The Agreement also provides that each bargaining unit member shall be subject to one, eight-hour unpaid furlough day during the period from October 1, 2010 through September 30, 2011, and one, eight-hour unpaid furlough day during the period from October 1, 2011 through September 30, 2012, with such days to be scheduled at the discretion of the Police Department. The furlough days for this bargaining unit will result in a savings of approximately $14,400 in each fiscal year. The Agreement also provides that for the period from October 1, 2010 through September 30, 2012, the City shall not contract with another entity to supplant or displace any budgeted positions currently represented by the Fraternal Order of Police Supervisors bargaining unit. This agreement does not preclude the City from pursuing cost savings or operational consolidations, including the reduction of budgeted positions, that do not result in the supplanting or displacing of any bargaining unit member by an outside source. 8.2 Approve the agreement as negotiated between the City of Clearwater and the Fraternal Order of Police Officers for the period from October 1, 2010 through Council 2010-09-20 16 September 30, 2012 and authorize the appropriate officials to execute same. The most recent collective bargaining agreement between the City of Clearwater and the Fraternal Order of Police Officers bargaining unit is in effect until September 30, 2012. In conjunction with Article 9, Section 1, B. of the Agreement, which states in part that the Section "may be re-opened upon the written request of either party no sooner than 90 days prior to September 30, 2010 for the purpose of negotiating rates of pay and/or adjustments to pay range minimums and maximums for any bargaining unit members or represented job classifications for the period from October 1, 2010 through September 30, 2011," the City requested that the Union voluntarily agree to re-open other provisions of Article 9 in addition to Section 1 of the Agreement in order to negotiate possible cost saving measures that could help to alleviate the City’s current budget shortfall. The Fraternal Order of Police Officers agreed to this re-opener through a Memorandum of Understanding with the City stipulating that should the parties not be able to reach a mutual agreement on any issues negotiated through the re- opener, the negotiations would cease and neither the City nor the Union would have the right to declare an impasse. On August 19, 2010, the parties reached a Tentative Agreement that was subsequently submitted by the Union to its members who ratified the agreement by a vote of 87 to 12 on September 2, 2010. The Agreement provides that pay range minimums and maximums for classifications represented by the bargaining unit will not be adjusted, and that employees will not be provided with an across- the-board general wage adjustment, for the period from October 1, 2010 through September 30, 2011. The Agreement also provides that each bargaining unit member shall be subject to one, eight-hour unpaid furlough day during the period from October 1, 2010 through September 30, 2011, and one, eight-hour unpaid furlough day during the period from October 1, 2011 through September 30, 2012, with such days to be scheduled at the discretion of the Police Department. The furlough days for this bargaining unit will result in a savings of approximately $48.735 in each fiscal year. The Agreement also provides that for the period from October 1, 2010 through September 30, 2012, the City shall not contract with another entity to supplant or displace any budgeted positions currently represented by the Fraternal Order of Police Officers bargaining unit. This agreement does not preclude the City from pursuing cost savings or operational consolidations, including the reduction of budgeted positions, that do not result in the supplanting or displacing of any bargaining unit member by an outside source. 9. Information Technology 9.1 Award a contract (Purchase Order) to State of Florida, Department of Management Services, Tallahassee, Florida for Suncom long distance overflow service, State AIN Centranet lines, and toll free lines during the period of October 1, 2010 to September 30, 2011, at a cost not to exceed $103,530 in accordance Council 2010-09-20 17 with Sec. 2.564 (1)(d), Code of Ordinances, under State Contract 730-000-09-1, and authorize the appropriate officials to execute same. (consent) The total Department of Management Services purchase order of $103,530 is broken out as follows: Toll Free number into the network, $60; Centranet lines (462 numbers) for the outlying individual sites, $102,620; and Domestic overflow long distance calls through Suncom, $850. This Purchase Order amount is a reduction of $39,620 from a year ago. In response to a question, Information Technology Director Dan Mayer said the cost savings are due to less users. 9.2 Award a contract (Purchase Order) to Oracle America Inc., Redwood Shores, California for the period October 1, 2010 through September 30, 2011 for database maintenance at a cost not to exceed $194,320 in accordance with Sec. 2.564 (1)(b), Code of Ordinances, sole source and authorize the appropriate officials to execute same (consent). This is an annual contract for Peoplesoft (payroll system) at $99,200; Oracle (database licensing) at $26,120 and Oracle WAM maintenance (asset management system) at $69,000. This Purchase Order represents a $5,320 (2.8%) increase from a year ago. 9.3 Award a contract (purchase order) to Sprint/Nextel, Los Angeles, California for cellular/radio, Treo and Blackberry services for the period November 1, 2010 through October 31, 2011 in an amount not to exceed $308,100 in accordance with Sec. 2.564(1)(d), Code of Ordinances, under State Contract 1523 and authorize the appropriate officials to execute same. (consent) This is a renewal of service for the City’s cell phones, radio’s, Treo’s and Blackberry’s ($164,100), and also incorporates all of the wireless cards for the Police Department’s patrol vehicles previously supplied by Alltel ($144,000). This Purchase Order represents an increase of $22,100 (7.7%) from the previous year. Staff was directed to provide more information regarding the monthly cost. 9.4 Award a contract (Purchase Order) to Verizon, Florida, Inc., Saint Petersburg, Florida for telephone service including frame relay service, T1’s, credit/collect calls, backup trunks, VADI circuit, and DSL high bandwidth services during the period October 1, 2010 to September 30, 2011, at a cost not to exceed $312,800, Council 2010-09-20 18 in accordance with Sec. 2.564 (1)(e), Code of Ordinances, impractical to bid and authorize the appropriate officials to execute same (consent). The total Verizon Purchase Order is $312,800, broken down as follows: Frame relay, Point to Point, T1’s, and radio circuits for the network, $251,800; backup trunks for the PBX network in case the T1’s fail, $11,000; DSL/High bandwidth service for Parks and Recreation, Fire, Engineering and Solid Waste transfer station, and VADI circuit, $50,000. This Purchase Order represents a reduction of $59,370 from last year. 10. Parks and Recreation 10.1 Approve blanket purchase order contract with Grosz Stamper Inc. of Tampa, FL, in the amount of $200,000 for the purchase of labor, materials and equipment to perform various concrete projects including sidewalks, slabs, and curbs for a variety of parks and recreation maintenance and construction projects and authorize the appropriate officials to execute same.(consent) Staff is requesting a blanket purchase order be awarded to Grosz Stamper Inc. of Tampa, FL, who was the lowest most responsive bidder (Bid 24-10) for concrete sidewalks and flatwork. The City is not obligated to use any or all of the amount being requested. With over 100 parks in the City there is a steady supply of minor work projects needed to repair sidewalks and bike paths in parks, construct and repair bleacher pads, dugouts and flatwork at ballfields and parks. It is difficult and time consuming to get quotes and/or bids for each small project and we find that we get better pricing by going with larger contracts/Blanket Purchase Orders’. Any large construction project that exceeds the $100,000 limit will be bid out separately according to current City policy and brought before the Council for approval. Funding for this Blanket Purchase Order will come from a variety of operating and Capital Improvement codes in the Parks and Recreation Department. 10.2 Amend Section 22.24 of the City of Clearwater Code of Ordinances to include reference to Appendix A, Schedule of Fees, Rates and Charges, correcting minor scriveners error in subsection numbering and amending Appendix A to define permanent residence and pass Ordinance 8214-20 on first reading. Section 22.24 of the City of Clearwater Code of Ordinances regulating beaches, park property and the Courtney Campbell Recreation Area has been included in Appendix A, "Schedule of Fees, Rates and Charges" however; reference to where to locate these fees were omitted from the Code. Ordinance 8214-10 adds clarification so that persons may clearly locate Appendix Council 2010-09-20 19 A. The following sentence has been added to Section 22.24; "See Appendix A for Schedule of Fees, Rates and Charges for the use of Parks and Recreation facilities." In addition, this Ordinance corrects minor scrivener’s errors in the subsection numbering of Section 22.24. Last, is the request to amend Appendix A to define "permanent residence" for purposes of the application of fees. From time to time, we have persons requesting residential status and use of recreational facility as residents of Clearwater who in fact are not. This amendment will clearly define who is and who is not a resident of Clearwater as it relates to the application of fees. In response to questions, Parks and Recreation Director Kevin Dunbar said no changes were made to the hours of operation. Hours of operation for each park facility are based on illumination, typically sunrise to sunset. In the case of Crest Lake Park, lights were requested to allow people to walk in the park at night. Police Chief Anthony Holloway said the department does not have an issue with Crest Lake Park being open until 11:00 p.m. In response to a suggestion, the City Attorney said amending the closing hour to 9:00 p.m. would require another ordinance. Staff was directed to provide information regarding crime statistics for Crest Lake Park. 11. Police 11.1 Approve acceptance of a Department of Justice, Bureau of Justice Assistance (DOJ/BJA) Edward Byrne Memorial Justice Assistance Grant in the amount of $87,366 and authorize the appropriate officials to execute same. (consent) On July 15, 2010, the City Council approved submission of a Clearwater Police Department (CPD) grant application in the amount of $87,366 under the federal Justice Assistance Grant (JAG) program to purchase an in-car digital video camera system and four motorcycle helmets. The grant was officially awarded by the DOJ/BJA on August 23, 2010. The video cameras will be installed in patrol cars utilized by CPD’s Traffic Team and regular Patrol Officers. The cameras will be used for the following: red light enforcement; DUI enforcement; pedestrian/traffic enforcement; and enforcement of Florida’s Move Over Law. Grant goals will be to reduce the number of these violations. CPD currently employs four police officers for its Police Motorcycle Unit. Each member of the Motorcycle Unit is required to wear a U.S. Department of Transportation approved motorcycle helmet. The helmets currently in use by the Council 2010-09-20 20 Unit are due for replacement and replacement cost is not budgeted in the Department’s budget. CPD will utilize JAG grant funding to purchase new helmets for each of the four members of the Motorcycle Unit. The only cost associated with this grant is for the annual software maintenance fee for the video camera system. The grant will pay the fee in Year 1 of the grant; CPD has funds in its operating budget to pay the amount that will not be covered by the grant in Year 2. The video cameras will replace cameras that were purchased under a previous grant and are no longer functional. Ongoing maintenance expenses have already been included in CPD’s operating budget. There are no additional costs associated with this project, such as, additional personnel or cash match. Special Project 181-99257 has been established to account for the grant expenditures. 12. Solid Waste/General Support Services 12.1 Award a contract (Purchase Order) to Atlantic Truck Center of Pompano Beach, FL for the purchase of one (1) M2-106 Freightliner Conventional Chassis at a cost of $57,953.00 in accordance with Sec. 2.56(1)(d), Code of Ordinances - Other governmental bid; authorize lease purchase under the City’s Master Lease Purchase Agreement for the amount of $43,706.75 and authorize the appropriate officials to execute same; establish Project 316-94239, Public Utilities Boom Truck, at third quarter. (consent) The Chassis will be purchased through the Florida Sheriff’s Association and Florida Association of Counties Contract 09-17-0908, Specification number 56. The truck (G2305) was involved in an accident on April 1st, 2010 with a car driven by a private citizen. The other driver was found at fault and State Farm Insurance agreed to a settlement of the claim for $14,246.25. The settlement included the salvage value of the chassis for $9,000.00 and the cost to remove and install the body and crane from the old chassis to the new one for $5,246.25. The settlement costs of $14,246.25 will be used toward the purchase of the new chassis and the balance of the costs will be funded under the lease purchase agreement. 13. Public Utilities 13.1 Approve a contract (purchase order) for MicroCg with Environmental Operating Systems of Bourne, MA for the period September 24, 2010 through September 30, 2011, for a value of $200,229.75 and authorize the appropriate officials to execute same. (consent) Council 2010-09-20 21 MicroCg is an agriculturally derived chemical that optimizes the biological removal of nitrogen, a pollutant in wastewater. Nitrogen removal during wastewater treatment is required in order to protect the marine environment and maintain Florida Department of Environmental Protection permit compliance. MicroCg is a proprietary, supplemental, carbon source that is non-flammable and does not pose a fire hazard to the plant operators or the facilities. Under normal operations, small quantities of MicroCg are used to compensate for biological variations or to "polish" wastewater denitrification and to maintain regulatory compliance. With the start of active construction of the East WRF Anoxic Tank Rehabilitation project (estimated to start in January 2011), the daily dosage of MicroCg required to maintain permitted treatment levels will need to increase. This project will require taking series of tanks or portions of the plant out of service where denitrification normally occurs slowly. During construction, an increased dosage of MicroCg will be used to accelerate denitrification within the remaining tanks in service. The East WRF Anoxic Tank Rehabilitation project is estimated to require an additional 2500 gallons of MicroCg over the course of the construction impact to the plant. The estimated quantities for the contract period include both normal operations at all three plants and operations during construction at the East facility. The City is currently purchasing MicroCg from the manufacturer, Environmental Operating Systems (EOS), for a 2009 negotiated price of $2.94/ gallon. EOS extended the 2009 price quote to the City for an additional six months in March 2010. The proposed contract price is $3.00/ gallon, which represents a 2.04% increase over the price of $2.94 per gallon previously negotiated in May 2009. This current proposal from EOS guarantees the price through September 30, 2011. Sufficient budget is available in the WPC Operations operating cost center 0421- 01351-551000-535-000-0000 to fund FY2009/2010 in the amount of $18,632.25 and to fund FY2010/2011in the amount of $181,597.50. 13.2 Award a contract (purchase order) to Odyssey Manufacturing Company, of Miami, FL, for the purchase of Sodium Hypochlorite in the amount of $1,411,083.51, during the contract period October 1, 2010, through September 30, 2013, as the most responsive bid for RFP 25-10, and authorize the appropriate officials to execute same. (consent) Sodium Hypochlorite is used at the Water Treatment Plants and the Advanced Wastewater Treatment Facilities to maintain regulatory compliance with the City’s existing Potable water and Wastewater treatment facilities’ operating permits, specifically for the disinfection process for Potable Water and Wastewater Treatment as mandated by the Florida Department of Environmental Protection (FDEP). The bid was advertised on July 16, 2010, and two bids were received on August Council 2010-09-20 22 30, 2010. Allied Universal Corp. did not fully submit all documents as required in RFP 25-10. Upon request Allied Universal Corp submitted the NSF laboratory results for 2009, which shows an unacceptable level of bromate in the analysis. This bidder has been disqualified. The most responsible bidder is Odyssey Manufacturing Co., with a price of $0.685 per gallon for the first year, with a total estimated bid amount of $456,408.65. If the parties agree to renew, the new price for the second period shall be the Base Price multiplied by the cumulative change in the Bureau of Labor Statistics Producer Price Index (PPI) for the period of October 1, 2011, through September 30, 2012. If the parties agree to renew for a third period, the new price shall be the price in the first renewal period multiplied by the cumulative change in the PPI for the period of October 1, 2012 through September 30, 2013. This agenda item is for the approval of a three-year contract, assuming a 5% increase over the contract period dependent upon PPI increases, including an estimated increase in potable water production of 1 mgd in 2012, due to plant expansion, not to exceed $1,411,083.51. The recommended contract will replace our current BPOs for Sodium Hypochlorite (BR506315, BR505766, and BR506074). The new bid represents an 8.029% reduction in cost for the first year. (Current price from Odyssey is $0.74 per gallon.) Sufficient budget is available in the Water and Sewer Utility Fund operating cost center 0421-02053-551000-533-000-0000 for Water in the amount of $86,508.65 and 0421-01351-551000-535-000-0000 for WPC Operations in the amount of $369,900.00, to fund FY10/11 in the amount of $456,408.65, and is planned in the budget request in the Water and Sewer Utility Fund operating cost center 0421- 02053-551000-533-000-0000 for Water in the amount of $97,918.87 and 0421- 01351-551000-535-000-0000 for WPC Operations in the amount of $369,900.00 to be brought forward for FY11/12 in the estimated amount of $467,818.87 and is planned in the budget request in the Water and Sewer Utility Fund operating cost center 0421-02053-551000-533-000-0000 for Water in the amount of $116,956.00 and 0421-01351-551000-535-000-0000 for WPC Operations in the amount of $369,900.00, to be brought forward for FY12/13 in the estimated amount of $486,856.00. These dollar amounts may be adjusted to reflect a dollar amount based on actual use at the time of renewal. 14. Engineering 14.1 Accept a 136 square-foot Sidewalk, Signal Cabinet and Utilities Easement over, under and across a portion of the Northwest 1/4 of Section 15, Township 29 South, Range 15 East, as more particularly described therein, conveyed by 1133 Cleveland Properties, LLC, a Florida limited liability company, granted in consideration of receipt of $2,856 and the benefits to be derived therefrom. (consent) Council 2010-09-20 23 The City is finalizing plans for Cleveland Street Streetscape, Phase II - Myrtle Avenue to Missouri Avenue. This element of the City’s Master Streetscape and Wayfinding Plan will extend a modified palette of the downtown Cleveland Street roadway improvements through the Town Lake Character District. The subject easement formally conveys and documents perpetual easement authority to the City over, across and under the lands described therein occupied by an existing traffic signal cabinet. The $2,856 consideration paid to acquire the 136 square foot easement was negotiated at double the Property Appraiser’s assessed value for the land of $10.50 per square foot for the corner encumbrance. Additional easements acquired, or to be acquired, will also reflect similar financial consideration. In response to questions, Engineering Assistant Director Scott Rice said the cost to obtain the easement was more than the assessed value because it was a corner property. The property owner, Guy Bonneville, originally wanted more than the purchase price. The city did not have an easement or right-of-way for the existing sidewalk and needed to address that. 14.2 Accept a 1340-square-foot Sidewalk and Utilities Easement over, under and across portions of Lots 1, 2, 3 and the West 10 feet of Lot 4, MATTISON SQUARE, as more particularly described therein, conveyed by 801 W Bay, LLC, a Florida limited liability company, granted in consideration of receipt of $17,997 and the benefits to be derived therefrom. (consent) The City is finalizing plans for Cleveland Street Streetscape, Phase II - Myrtle Avenue to Missouri Avenue. This element of the City’s Master Streetscape and Wayfinding Plan will extend a modified palette of downtown Cleveland Street roadway improvements through the Town Lake Character District. The subject easement formally conveys and documents perpetual easement authority to the City over, across and under the lands described therein that have been improved and are currently utilized as a public sidewalk, together with a corner portion of the recently redeveloped sales office for The Strand addressed at 1101 Cleveland Street. The $17,997 consideration paid to acquire the 1340 square foot easement is negotiated at the Property Appraiser’s assessed value for the land of $10.50 per Council 2010-09-20 24 square foot to encumber 966 square feet of existing sidewalks, and double that amount, $21.00 per square foot, for the 374 square foot landscaped corner. Additional easements already acquired reflect similar financial consideration. Discussed with Item 14.1. 14.3 Accept a 7-foot Sidewalk and Utilities Easement over, under and across that portion of the East 47 feet of Lot 4 and all of Lot 5, MATTISON SQUARE, as more particularly described therein, conveyed by Dennis H. and Jacqueline L. Henegar, in consideration of receipt of $7,500 and the benefits to be derived therefrom. (consent) The City is finalizing plans for Cleveland Street Streetscape, Phase II - Myrtle Avenue to Missouri Avenue. This element of the City’s Master Streetscape and Wayfinding Plan will extend a modified palette of downtown Cleveland Street roadway improvements through the Town Lake Character District. The subject easement formally conveys and documents perpetual easement authority to the City over, across and under the lands described therein that have been improved and are currently utilized as public sidewalk. The $7,500 consideration paid to acquire the 714 square foot easement is negotiated at the Property Appraiser’s assessed value for the land of $10.50 per square foot, rounded to the nearest $10.00. It is anticipated additional easements to be acquired will also require similar financial consideration. 14.4 Approve the applicant’s request to vacate the east 10 feet of a 20 foot right of way easement that lies along the west property line of property located at 113 North Betty Lane as more particularly described in the ordinance and approve Ordinance 8221-10 on first reading. (VAC2010-05 SP Country Club Homes, LLC) The applicant is seeking to develop the subject property with a 33-unit townhome project. Currently, a 20-foot right-of-way easement is located along the west side of the applicant’s property which also abuts Betty Lane. The applicant proposes to build patios with privacy walls in the area of the site proposed to be vacated. Flexible Development approval for this development, FLS2010-05001, was granted by the Community Development Board on July 20, 2010. The preliminary plat, PLT2010-06001, "Country Club Townhomes" was approved by the Development Review Committee on August 5, 2010. Progress Energy, Verizon, Knology and Bright House have no objections to the vacation requested. Council 2010-09-20 25 The City of Clearwater has no utilities in the right-of-way easement and contemplates no future need for the easement portion proposed to be vacated, provided that the development is completed within two years or the vacation will be null and void, as specified in the ordinance attached. The Engineering Department has no objections to the vacation request so long as the development is completed within two years of the date of adoption of the ordinance. 14.5 Approve a work order to Camp Dresser and McKee, Inc. (CDM) in the amount of $1,180,867 for engineering design and permitting of the Reverse Osmosis Plant 1 Expansion Project (09-0018-UT); and the appropriate officials be authorized to execute same. (consent) This Work Order provides for engineering and design services for construction of the expansion of Reverse Osmosis Plant 1 which consists of increasing the treatment capacity of the Plant by 1 million gallons per day and a concentrate disposal pipeline from the Plant to a termination point west of U.S. 19 to lead to proposed future injection well at the future Reverse Osmosis Plant 2. The goal of this project is to implement the City Water Master Plan of self- reliance, producing more local water and reducing stress on the regional water supply system. The design phase is anticipated to be completed by August 2011. CDM was selected through the Request for Qualifications process, and this work order was negotiated in accordance with the Consultants Competitive Negotiations Act. The City of Clearwater’s Public Utilities Department Water Division is responsible for owning, operating and maintaining the Reverse Osmosis Plant 1. Sufficient budget and funding with 2009 Water and Sewer Revenue Bond proceeds are available in project 0376-96764, RO Plant Expansion to fund this contract. In response to a question, Engineering Manager Rob Fahey said the Environmental Advisory Board did not receive an update on the expansion. 14.6 Approve Supplemental Work Order 1 to Malcolm Pirnie, City of Clearwater Engineer of Record (EOR), to provide additional engineering design and permitting services for the Spring Branch Conveyance Enhancements Project for the lump sum of $30,599 and authorize the appropriate officials to execute Council 2010-09-20 26 same.(consent) On August 21, 2008, Council approved a work order to Malcolm Pirnie, Inc. in the amount of $202,052.30 to design an erosion and flood protection project for Spring Branch of Stevenson Creek. Although the project was similar to other recent projects, the US Army Corps of Engineers would not approve a permit because the design was designated an impoundment based on revised regulations. The additional design cost for the modifications is $30,599 for a total cost of $232,651.30. The purpose of the Spring Branch Conveyance Enhancements Project is to reduce flooding in the area of Byram Drive and Flora Drive east of King’s Highways. Additional scope and change in design are as follows: Analyze and evaluate the feasibility of the new design concept to ensure meeting the revised design criteria of Army Corps of Engineers. Prepare revised plans. Re-apply for the Army Corps of Engineers Environmental Resource Permit (ERP). Obtain the permits for the US Army Corps of Engineers and the SWFWMD for the revised design. Sufficient budget is available in Capital Improvement Program project 0315- 96166, Spring Branch Enhancement Project to provide funding for the Supplemental. 14.7 Approve a Legal Service Agreement between the City of Clearwater and Baker and Hostetler LLP, to serve as legal counsel on Environmental issues in the amount of $50,000 and authorize the appropriate officials to execute same. (consent) Environmental Engineering wishes to engage Baker and Hostetler LLP to serve as legal counsel for addressing environmental contamination at the Joe DiMaggio Sports Complex and Brighthouse Networks Field sites. This is for the purpose of satisfying FDEP regulations and ultimately achieve regulatory closure of these sites. Sufficient budget is available in Capital Improvement Program project 0315- 94803, Environmental Assessment and Cleanup to fund the agreement. In response to a question, Environmental Manager Ed Chesney said the project is not one that would have involved the Environmental Advisory Board. Council 2010-09-20 27 14.8 Approve a Cooperative Funding Agreement between the Southwest Florida Water Management District (SWFWMD) and the City of Clearwater for the Brackish Facility at Water Treatment Plant 2 (N176); Approve a work order to SDI Environmental Services, Inc. (EOR) in the amount of $1,397,936.00 for hydrogeologic services related to the design and construction of a brackish-water wellfield; Approve a work order to Legette, Brashears and Graham, Inc. (EOR) in the amount of $140,026 for hydrogeological services related to design, permitting and implementation of a testing program for a concentrate injection well to be located at Water Treatment Plant 2; and authorize the appropriate officials to execute same. (consent) The City of Clearwater currently operates one Reverse Osmosis (RO) Water Treatment Plant, and is preparing to build a second RO plant located at 21133 N. US Hwy 19 within the City of Clearwater. A cooperative funding agreement (CFA) between the Southwest Florida Water Management District (SWFWMD) and the City of Clearwater provides for the design, permitting and construction of a brackish reverse osmosis (RO) facility at Water Treatment Plant (WTP) 2. SWFWMD and the City of Clearwater both anticipate that the total cost of the project will be $30,433,780. SWFWMD will reimburse up to 50% of all costs associated with this project up to a maximum of $15,216,890. SWFWMD agrees to fund up to a maximum amount not to exceed $15,216.890 of the project’s estimated costs subject to the terms of the agreement. The City agrees to fund the remainder of the project’s estimated cost, estimated to be $15,216,890. The project includes pilot testing and preliminary design, concentrate injection well, wellfield engineering design and water use permitting, wellfield construction, treatment plant design and permitting, plant construction, engineering construction services, contingency, and final project completion and certification. Original Project Budget Comparison: SWFWMD Share City Share Total Project Costs Pilot Testing and Preliminary Design $300,000 $300,000 $600,000 Concentrate Injection Well $750,000 $750,000 $1,500,000 Wellfield Engineering Design and Water Use Permitting $500,000 $500,000 $1,000,000 Wellfield Construction $4,442,160 $4,442,160 $8,884,320 Council 2010-09-20 28 Treatment Plant Design and Permitting $865,910 $865,910 $1,731,820 Plant Construction $6,422,500 $6,422,500 $12,845,000 Engineering construction Services $673,580 $673,580 $1,347,160 Contingency $1,262,740 $1,262,470 $2,525,480 $15,216,890 $15,216,890 $30,433,780 SDI Environmental Services, Inc. (SDI) will provide professional hydrological services for the design and construction of a brackish-water wellfield, which will include a wellfield design for 18 additional wells, well construction and testing, groundwater flow and variable density modeling, and Water Use Permit (WUP) support services under the RO 2 Wellfield Permitting and Development Project (10-0033-UT). Legette, Brashears, and Graham, Inc. (LBG) will provide professional hydrological services for the design and permitting of an injection well for the purpose of concentrate disposal under the Concentrate Injection Deep Well Project - Phase I (09-0044-UT). The concentrate from RO Plant 1 is currently discharged to the wastewater treatment plant where the effluent is used for reclaimed water irrigation. RO Plant 2 will produce concentrate with water quality that is too brackish to discharge to a WTP.The new water treatment facility, wellfield, and raw water mains are anticipated to be completed by December of 2015. The City of Clearwater Public Utilities Department will own, operate and maintain the Water Treatment Plant.Sufficient budget and funding with 2009 Water and Sewer Revenue Bond proceeds is available in project 0376-96767, Reverse Osmosis at Reservoir 2 in the amount of $768,981.00.A third quarter amendment will increase the budget for Other Governmental Revenue (337900) in Capital Improvement Program project 0315-96767, Reverse Osmosis at Reservoir 2 for SWFWMD’s share in the amount of $768,981.00 to provide a total of $1,537,962.00 to fund these work orders. It was requested that the map be updated to reflect Saint Petersburg Junior College is now Saint Petersburg College. Council 2010-09-20 29 15. Planning 15.1 Approve the annexation, initial Future Land Use Map designation of Residential Low (RL) and initial Zoning Atlas designation of Low Medium Density Residential (LMDR) District for 1401 Lemon Street (Lot 18, Block B, Sunny Park Groves in Section 23, Township 29 South, Range 15 East)and pass Ordinances 8206- 10,8207-10 and 8208-10 on first reading. (ANX2010-06001) This voluntary annexation petition involves a 0.146-acre property consisting of one parcel of land occupied by a single-family dwelling. It is located on the south side of Lemon Street and the east side of Sunny Park Road. The applicant is requesting this annexation in order to receive sanitary sewer and solid waste service from the City. The Planning and Development Department is requesting that the 0.2-acres of abutting right-of-way of Lemon Street and Sunny Park Road not currently within the City limits also be annexed. The property is contiguous to existing City boundaries to the west and south. It is proposed that the property be assigned a Future Land Use Map designation of Residential Low (RL) and a Zoning Atlas designation of Low Medium Density Residential (LMDR). The Planning and Development Department determined that the proposed annexation is consistent with the provisions of Clearwater Community Development Code Section 4-604.E as follows: The property currently receives water service from the City of Clearwater. The closest sanitary sewer line is located in the Lemon Road right-of-way. 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. The property is located within Police District II and service will be administered through the district headquarters located at 645 Pierce Street. Fire and emergency medical services will be provided to this property by Station 47 located at 1460 Lakeview Road. 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 Council 2010-09-20 30 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 Residential Low (RL) Future Land Use Map category is consistent with the current Countywide Plan designation of this property. This designation primarily permits residential uses at a density of 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 and the City’s Comprehensive Plan and Community Development Code; and The property proposed for annexation is contiguous to existing City boundaries to the west; therefore, the annexation is consistent with Florida Statutes Chapter 171.044. 15.2 Approve amendments to the Community Development Code regarding overnight accommodations accessory uses in the commercial and tourist districts, sidewalk vendors, commercial docks, parking and outdoor storage in residential districts, enforcement provisions relating to nuisance violations, and the distance between community residential homes, and pass Ordinance 8211-10 on first reading. (TA2010-07002) There are several catalysts for the proposed amendments. Below is a list of the proposed amendments, organized according to Code section, with the catalyst in parenthesis. Article 2. - Zoning Districts Sidewalk Vendors (Staff) The proposed amendment eliminates sidewalk vendors as an allowable use in the Tourist and Downtown districts. Accessory Uses in the Overnight Accommodation Use in the Commercial and Tourist Districts (City Council) The proposed amendment requires that overnight accommodation uses with fewer than 50 rooms comply with the parking standards for the restaurant use. Article 3. - Development Standards Docks (Staff) The first proposed amendment states that if an applicant demonstrates riparian or littoral rights which affect the location of the dock, the minimum deviation needed Council 2010-09-20 31 to exercise those rights should be allowed. The second proposed amendment eliminates the current provision that exempts boat lifts added to existing docks from setback requirements. Parking Restrictions in Residential Areas (Clearwater Neighborhood Coalition and Staff) The first amendment specifies that boat trailers cannot exceed 25 feet in length if located in the front setback. The second amendment identifies the types and sizes of vehicles permitted to be parked in the side and rear setbacks. Lastly, this proposed amendment states that commercial vehicles exceeding a certain size cannot be parked in residential areas. Outdoor Storage in Residential Areas (Clearwater Neighborhood Coalition and Staff) The first proposed amendment clarifies that items stored on carports are subject to outdoor storage provisions. The second proposed amendment requires that car covers are used in a manner that allows Code inspectors the ability to see if the tires are flat and the tags are current. Nuisances (Staff) The proposed amendment allows nuisance violations to be enforced as "nuisance" or "non-nuisance" cases. Article 7. - Enforcement Proceedings Nuisances (Staff) The proposed amendment allows nuisance violations to be enforced either by notice of violation to be decided by the MCEB, a ticket to the Court or actual abatement. Article 8. - Definitions and Rules of Construction Community Residential Home Separation Requirement (Staff) The proposed amendment requires 1,000 foot separation between community residential homes to be consistent with Florida Statutes. Ordinance No. 8211-10 and the staff report contain further analysis and information on the proposed amendments. Council 2010-09-20 32 The Community Development Board (CDB) reviewed the proposed text amendment at its meeting of August 17, 2010. The Board unanimously recommended the amendment for approval, with two concerns. One concern was the correlation between boat trailer size and boat size (Section 3-1407.A.2.b) and the other was the language for large vehicles (Section 3-1407.A.4). Both concerns have been addressed by editing the language in the ordinance as recommended by the Board. In response to a question, Planning and Development Director Michael Delk said changes made in Code Revisions 5 added many definitions regarding accessory use. Staff decided 50 rooms would limit the facility to a small buffet. 16. Official Records and Legislative Services 16.1 Approve the 2011 Council Meeting Schedule Generally, the 2011 City Council meetings are at 6:00 p.m. on the first and third Thursdays of each month. The accompanying work sessions are at 9:00 a.m. on the preceding Monday, unless the Monday is a holiday, in which case the work session is on Tuesday. Exceptions are: No meetings held for the first Thursday in January, per Council Rules. The April 21 Council meeting has been moved to Wednesday, April 20 to allow Councilmember Cretekos to attend service related to Orthodox Easter. No meetings held for the first Thursday in July, per Council Rules. The November 17 Council meeting has been moved to Wednesday , November 16, to allow attendance at the FLC’s Legislative Conference. The work sessions on February 14, March 14, June 13, September 12, November 14 and December 12 fall on the second Monday of the month and due to conflict with Tampa Bay Regional Planning Committee, will start at 1:00 p.m. Direction is needed on the following: The PMI (Pinellas Mobility Initiative) has been replaced by the Project Advisory Committee (PAC) to the MPO. The PAC meets at 3:00 p.m. on the second Monday of each month. The Mayor serves on the Project Advisory Committee. Per standing practice, the work sessions that fall on the second Monday start at 1:00 p.m. due to a conflict TBRPC, on which Councilmember Jonson serves. Should these meetings be moved to 9:00 a.m. on Tuesday to assure no conflict? If so, need to be aware of Community Development Board meetings at 1:00 p.m. on February 15, March 15 and November 15. The Conference of Mayors’ Annual Meeting is June 16 through 21. Moving the June 16 meeting to Wednesday, June 15 would eliminate this conflict. Council 2010-09-20 33 Councilmember Cretekos has a conflict the morning of August 15. Should that work session begin at 1:00 p.m.? In previous years, the meeting in conflict with the FLC Legislative Conference has been moved to Tuesday and the accompanying work session cancelled as the Mayor had a Wednesday meeting, held in conjuction with the conference. If this conflict still exists, the proposal to move the Council meeting to Wednesday will need to be modified. There is no need to make adjustments for the Florida League of Cities’ August Conference in 2011. Also, no adjustment is needed for Jazz Holiday in 2011 as the third weekend in October occurs prior to the third Thursday. The County’s Budget calendar for 2011 is not known at this time. Once the Budget Director receives this information adjustment of the September meetings will be requested if needed. Staff was directed to move second Mondays to Tuesdays and start at 8:30 a.m.; move August work session to 1:00 p.m.; move for Mayors' Council 17. Legal 17.1 Adopt Ordinance 8220-10 on second reading, Amending Code of Ordinances Chapter 2, Administration, Article III, Appointed Authorities, Boards Committees, Division 1, regarding definitions, board establishment, qualifications, appointment, terms, rules of procedure, staff members, and removal of members. 18. City Manager Verbal Reports 18.1 City Manager Verbal Reports - None. 19. Council Discussion Items 19.1 Crest Lake Park Discussed with Item 10.2. 19.2 Parasailing Regulations - Mayor Hibbard The City Attorney said Florida law pre-empts municipalities on safety regulations on Council 2010-09-20 34 water. The Florida Legislature is considering parasailing regulations. Staff was directed to draft a letter urging support for parasailing regulations and add issue to the 2011 State Legislative Package. In response to a suggestion, the City Attorney said the city would not want to be involved in the release form of parasailing operators. Staff will research requiring notice by sign or brochure. 19.3 Creating Policy regarding Inviting Former Councilmembers to Events - Jonson Discussion deferred to Wednesday's council meeting. 19.4 Environmental Advisory Board Work and Focus - Councilmember Jonson Discussion deferred to Wednesday's council meeting. 20. Closing Comments by Mayor - None. 21. Adjourn The meeting was adjourned at 11:49 a.m. Council 2010-09-20 35