10/21/2010
CITY COUNCIL MEETING MINUTES
CITY OF CLEARWATER
October 21, 2010
Present: Mayor Frank Hibbard, Vice Mayor John Doran, Councilmember George N.
Cretekos, Councilmember Paul Gibson, and Councilmember Bill Jonson.
Also William B. Horne - City Manager, Jill S. Silverboard - Assistant City Manager,
present: Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney,
Rosemarie Call - City Clerk, and Patricia O. Sullivan - Board Reporter.
1. Call to Order - Mayor Frank Hibbard
The meeting was called to order at 6:00 p.m. at City Hall.
2. Invocation - Mayor Frank Hibbard
3. Pledge of Allegiance - Mayor Frank Hibbard
4. Presentations - Given.
4.1 Presentation of the Key to the City by Mayor Hibbard to Mr. William Kahn
4.2 Sister Cities Summer Trip to Nagano
Arianna Lazzaroni, Vonabell Sherman and Maya Johnson shared memories of their visit
to Nagano and thanked Council for their support of the Sister Cities Program.
Richard Wisemiller thanked Council for their support of the summer trip program.
4.3 Introduction of Mr. Kenzo Kawashima, visiting Nagano teacher
Kenzo Kawashima, English teacher, thanked Council for the opportunity to visit the
United States for the first time and looked forward to finding ways to building the
relationship between Clearwater and Nagano students through email.
4.4 Offshore Boat Race Presentation
Brighthouse Networks representative Brian Aungst thanked the city for supporting the
event and volunteers for their efforts in making the event successful.
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4.5 2010 National Community Planning Month Proclamation
5. Approval of Minutes
5.1 Approve the minutes of the October 5, 2010 City Council Meeting as submitted in
written summation by the City Clerk.
Councilmember Bill Jonson noted a scrivener’s error on page 11; "approve" appeared
twice in motion for Item 8.1.
Councilmember Bill Jonson moved to approve the minutes of the October 5, 2010 City
Council Meeting as amended. The motion was duly seconded and carried unanimously.
6. Citizens to be Heard re Items Not on the Agenda
Charles Shank opposed city yard waste pickup charges.
Scott Bittman requested Council revise the Code to allow additional uses for his non-
conforming property.
Public Hearings - Not before 6:00 PM
7. Administrative Public Hearings
7.1 Amend the Development Agreement between Clearwater Christian College
Private School, Inc. (property owner) and the City of Clearwater, previously
approved by City Council on August 5, 2010, to revise the master plan boundaries
consistent with the Pinellas Planning Councils Alternative Compromise
Recommendation accepted by City Council on October 5, 2010 and adopt
Resolution 10-23. (DVA2010-06001)
The subject property is 131.05 acres located on the north side of Gulf-to-Bay
Boulevard, approximately 900 feet east of Bayshore Boulevard.
There is a companion application to amend the Future Land Use Map categories
for the subject properties from Institutional (I), Commercial General (CG),
Preservation (P), Recreation/Open Space (R/OS), Residential Low (RL), and
Water/Drainage Feature categories to Institutional (I), Preservation (P),
Recreation/Open Space (R/OS), and Water/Drainage Feature categories, and to
rezone this area from Institutional (I), Commercial (C), Open Space/Recreation
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(OS/R), Low Density Residential (LDR) and Preservation (P) districts to
Institutional (I), Open Space/Recreation (OS/R), and Preservation (P) districts
(LUZ2010-06002). On August 3, 2010, the Community Development Board
approved the Development Agreement to divide the property into a Mitigation
Area (98.99 acres) and a Master Plan Area (32.06 acres), and to create a
conceptual Master Plan limiting residential density to 750 dormitory beds and
nonresidential density to 170,000 square feet (0.149 floor area ratio). This
Development Agreement was passed by City Council on August 5, 2010. On
September 15, 2010, the Pinellas Planning Council recommended approval of an
alternative compromise recommendation for the companion land use case,
reducing the scope of the amendment request from that which Council passed at
first reading.
The proposal is in compliance with the standards for development agreements
and is consistent with the Comprehensive Plan. The proposed Development
Agreement includes the following main provisions: Amends the Master Plan to
reflect contracted boundaries for the proposed Institutional (I) area, consistent
with the companion Future Land Use Map amendment and rezoning (LUZ2010-
06002). The revised Master Plan Area would be reduced from 32.06 acres
(originally proposed) to 28.55 acres of land, and the revised Mitigation Area would
increase from 98.99 acres (originally proposed) to 102.5 acres of land.
Replaces the Master Plan Area and Mitigation Area legal descriptions, the Master
Plan, and the Project Future Land Use and Zoning Maps in the recorded
Development Agreement with updated versions reflecting the contracted
boundaries of the alternative compromise.
Allows for two extensions of time of up to 12 months each, if requested by the
Developer, for the completion of the final approval of the amended Future Land
Use Map, the amendment of the Zoning Atlas to reflect the desired designations,
and the final approval by the appropriate local, state and federal permitting
agencies of the proposed jurisdictional line as shown on the revised Master Plan.
Adds language requiring evacuation of all persons except emergency personnel
after the issuance of a hurricane watch by the National Hurricane Center Allows
for the use of transfer of development rights to be used in connection with the
development of the Master Plan Area.
The Community Development Board will review this Development Agreement at
its public hearing on October 19, 2010 and the Planning Department will report its
recommendation at the council meeting.
In response to questions, Planning and Development Director Michael Delk said the
amended agreement reduced the Institutional area to 23.07 acres and increased the
Preservation area to 85.63 acres. Only portions of the campus require stormwater
system upgrades.
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It was recommended that Exhibit C, paragraph 1, bullet 1 be amended to read,
“providing water quality for the parts of the campus.”
Applicant representative Katie Cole agreed to the amendment.
One individual spoke in opposition and one individual spoke in support.
In response to questions, Ms. Cole said there is not enough space in the current
footprint for the College to meet its long-term goals. Building up to meet goals is not an
option as there is a height limitation on the campus. Environmental consultants,
developers, and the college extensively vetted the proposal to meet the College’s
minimum long-term goals. Ms. Cole said the avoidance and mitigation study was
conducted and submitted to the City. Thomas Cuba, Ph.D. said the proposal would
improve the wetlands, which are in poor condition.
Support was expressed for the proposal, as it will improve water quality in Tampa Bay.
Councilmember George N. Cretekos moved to amend the Development Agreement
between Clearwater Christian College Private School, Inc. (property owner) and the City
of Clearwater, previously approved by City Council on August 5, 2010, to revise the
master plan boundaries consistent with the Pinellas Planning Councils Alternative
Compromise Recommendation accepted by City Council on October 5, 2010. The
motion was duly seconded and carried unanimously.
Resolution 10-22 was presented and read by title only. Councilmember Paul Gibson
moved to adopt Resolution 10-22 with Exhibit C, paragraph 1, bullet 1 amended to read,
"providing water quality for the parts of the campus." The motion was duly seconded
and upon roll call, the vote was:
"Ayes": Mayor Frank Hibbard, Vice Mayor John Doran, Councilmember George N.
Cretekos, Councilmember Paul Gibson and Councilmember Bill Jonson.
"Nays": None.
7.2 Approve the applicant’s request to vacate the north - south alleyway lying within
Block 1, E.P. Merritt’s Addition (aka 606 Seminole Street and 607 Nicholson
Street) and approve Ordinance 8225-10 on first reading, (VAC2010-06 Jimmie,
First M Corporation and Jehudah LTD Partnership),
The applicant is seeking vacation of the subject alleyway to limit access into the
properties adjacent to the alleyway. Police reports describe petty theft, grand theft
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and criminal mischief taking place on the adjacent property. If the alleyway is
vacated, the applicant will fence off the alleyway to eliminate rear access to the
involved properties.
Verizon, Bright House, Knology and Progress Energy have no objections to the
vacation request.
The alleyway is unimproved and contains no City owned utilities.
The Engineering Department has no objections to the vacation request.
One individual spoke in opposition as the vacation would block access to family-owned
property.
The City Manager recommended continuing the item for staff to assess the situation.
Vice Mayor John Doran moved to continue Item 7.2 to November 16, 2010. The motion
was duly seconded and carried unanimously.
7.3 Approve changes to the gas utility rates to become effective for all gas bills and
services rendered on or after January 1, 2011 and pass Ordinance 8153-10 on
first reading.
Black and Veatch has completed a Cost of Service and Rate Study for the
Clearwater Gas System (CGS). This study is an update of their earlier study
issued in October 2008. The study includes a projection of CGS’ financial position
for the period 2010-2014 and a cost of service analysis to evaluate the cost
responsibility for each of the various classes of customers served.
Based on the results of the study, CGS’ existing rates are adequate to meet its
operating needs over the forecast period. Therefore, no changes are proposed for
gas base rates at this time.
Ordinance 8153-10 includes the following key changes to the gas sections of the
Code of Ordinances:
Wording has been revised throughout to clarify responsibilities and reflect current
operating procedures.
Service labor billing has been revised from an hourly rate with a 1-hour minimum
to a trip charge plus per quarter hour rate.
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A provision for Contract Service Charge Rates has been added for customers
who regularly use CGS Service and Repair and will contractually subscribe for
such use.
The commercial use per customer factor contained in the Usage and Inflation
Adjustment (UIA) mechanism is recalculated to include all commercial customers.
Same day residential turn-on charges have been reduced to reflect actual costs.
The current gas rates and service charges of the Clearwater Gas System have
been effective since January 1, 2009.
In response to a question, Clearwater Gas System Managing Director Chuck
Warrington said the imbedded inflation factor is reviewed annually and adjusted based
on the September Consumer Price Index.
Councilmember George N. Cretekos moved to approve changes to the gas utility rates
to become effective for all gas bills and services rendered on or after January 1, 2011.
The motion was duly seconded and carried unanimously.
Ordinance 8153-10 was presented and read by title only. Councilmember Paul Gibson
moved to pass Ordinance 8153-10 on first reading. The motion was duly seconded and
upon roll call, the vote was:
"Ayes": Mayor Frank Hibbard, Vice Mayor John Doran, Councilmember George N.
Cretekos, Councilmember Paul Gibson and Councilmember Bill Jonson.
"Nays": None.
7.4 Amend provisions of Chapter 29, Article II, Business Tax Receipts, Clearwater
Code of Ordinances, to exclude the profession of attorneys from any provisions in
this Article that regulate attorney conduct or the practice of law and pass
Ordinance 8212-10 on first reading.
The regulation of the conduct of attorneys and the practice of law is solely within
the purview of the Florida Supreme Court according to the Florida Constitution,
Article V, Section 15.
County Court of Pinellas County has found that certain provisions of Chapter 29,
Article II, dealing with Business Tax Receipts (BTR’s) in the Clearwater Code of
Ordinances go beyond revenue-generating purposes and stray into the regulation
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of attorney conduct and thereby held that these provisions were unconstitutional.
This ordinance modifies relevant sections of the City’s BTR ordinance to exclude
attorneys from provisions that the aforementioned judge’s order found to be
regulatory upon attorney conduct or the practice of law.
Councilmember Bill Jonson moved to amend provisions of Chapter 29, Article II,
Business Tax Receipts, Clearwater Code of Ordinances, to exclude the profession of
attorneys from any provisions in this Article that regulate attorney conduct or the
practice of law. The motion was duly seconded and carried unanimously.
Ordinance 8212-10 was presented and read by title only. Vice Mayor John Doran
moved to pass Ordinance 8212-10 on first reading. The motion was duly seconded and
upon roll call, the vote was:
"Ayes": Mayor Frank Hibbard, Vice Mayor John Doran, Councilmember George N.
Cretekos, Councilmember Paul Gibson, and Councilmember Bill Jonson.
"Nays": None.
8. Second Readings - Public Hearing
8.1 Adopt Ordinance 8193-10 on second reading, amending the future land use plan
element of the Comprehensive Plan of the city to change the land use designation
for certain real property whose post office address is 110 McMullen Booth Road,
from Residential Urban (RU) to Institutional (I).
Ordinance 8193-10 was presented and read by title only. Councilmember George N.
Cretekos moved to adopt Ordinance 8193-10 on second and final reading. The motion
was duly seconded and upon roll call, the vote was:
"Ayes": Mayor Frank Hibbard, Vice Mayor John Doran, Councilmember George N.
Cretekos, Councilmember Paul Gibson and Councilmember Bill Jonson.
"Nays": None.
8.2 Adopt Ordinance 8194-10 on second reading, amending the Zoning Atlas of the
city by rezoning certain real property whose post office address is 110 McMullen
Booth Road, from Low Medium Density Residential (LMDR) to Institutional (I).
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Ordinance 8194-10 was presented and read by title only. Councilmember Paul
Gibson moved to adopt Ordinance 8194-10 on second and final reading. The motion
was duly seconded and upon roll call, the vote was:
"Ayes": Mayor Frank Hibbard, Vice Mayor John Doran, Councilmember George N.
Cretekos, Councilmember Paul Gibson and Councilmember Bill Jonson.
"Nays": None.
8.3 Approve amendments to the Clearwater Comprehensive Plan adding Future Land
Use Map categories for transit oriented development and adding an objective and
policies pertaining to the new categories, and adopt Ordinance 8201-10 on
second reading as amended.
Ordinance 8201-10 was passed on first reading on August 5, 2010 and
transmitted to the Florida Department of Community Affairs (DCA) as required for
Comprehensive Plan text amendments.
The Department of Community Affairs issued Comments and Recommendations
for this amendment on the following items:
Development Standards Recommendation
Include maximum density standards and the proportion desired land uses within
the Transit Oriented Development (TOD) land use categories.
Plan Policy Guidance Recommendations
Include a provision ensuring the City will propose an amendment to the
Comprehensive Plan to show station locations on the Future Land Use Map once
the station locations have been identified.
Include a policy that states should a station location occur in the coastal high
hazard area (Coastal Storm Area in the Comprehensive Plan), no increase in
density allowed under the current Future Land Use Map shall occur on those
properties.
The Department of Community Affairs recommendations have been addressed in
the motion to amend on second reading.
Planning Manager Tammy Vrana said the Department of Community Affairs requested
an amendment to policy table A.2.2.1 since Monday’s work session. The last minute
change provides a window of density and flexibility made available by the Pinellas
Planning Council’s countywide rules on transit oriented development.
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Councilmember Bill Jonson moved to amend Ordinance 8201-10 to include amended
policy tale A.2.2.1. The motion was duly seconded and carried unanimously.
Ordinance 8201-10 was presented as amended and read by title only. Vice Mayor John
Doran moved to adopt Ordinance 8201-10 as amended on second and final reading.
The motion was duly seconded and upon roll call, the vote was:
"Ayes": Mayor Frank Hibbard, Vice Mayor John Doran, Councilmember George N.
Cretekos, Councilmember Paul Gibson and Councilmember Bill Jonson.
"Nays": None.
8.4 Adopt Ordinance 8197-10 on third reading, amending the future land use plan
element of the Comprehensive Plan of the city to change the land use designation
for certain real property, consisting of a portion of a 131.05 acre site whose post
office address is 3400 Gulf-to-Bay Boulevard from Institutional (I), Commercial
General (CG), Preservation (P), Water/Drainage Feature, Recreation/Open Space
(R/OS), and Residential Low (RL) to Institutional (I), Preservation (P),
Recreation/Open Space (R/OS), and Water/Drainage Feature.
In response to questions, Thomas Cuba, Ph. D. said an example of using the mitigation
bank for a public purpose would be for discharge from a new Howard Frankland Bridge.
Restored wetlands will be conveyed to a local government with a trust fund endowed to
manage and protect them in perpetuity. Establishment or use of a mitigation bank will
not affect this conveyance. Applicant representative Katie Cole said the site is not in
the St. Petersburg/Clearwater Airport flight pattern.
Two individuals spoke in opposition and one individual spoke in support.
In response to a question, Planning and Development Director Michael Delk said the
height limit for campus structures is 50 feet.
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Ordinance 8197-10 was presented and read by title only. Councilmember George N.
Cretekos moved to pass and adopt Ordinance 8197-10 on third and final reading. The
motion was duly seconded and upon roll call, the vote was:
"Ayes": Mayor Frank Hibbard, Vice Mayor John Doran, Councilmember George N.
Cretekos, Councilmember Paul Gibson and Councilmember Bill Jonson.
"Nays": None.
8.5 Adopt Ordinance 8198-10 on third reading, amending the Zoning Atlas of the city
by rezoning certain property consisting of a portion of a 131.05 site whose
property address is 3400 Gulf-to-Bay Boulevard from Institutional (I), Commercial
(C), Reservation (P), Low Density Residential (LDR), and Open Space/Recreation
(OS/R) to Institutional (I), Preservation (P), and Open Space/Recreation (OS/R).
One individual spoke in support and three individuals spoke in opposition.
The City Council recessed from 7:49 p.m. to 7:57 p.m.
In response to a question, Applicant representative Katie Cole said increases to the
amount of land to be zoned Preservation are due to the elimination of residential and
commercial general zoning and converting some Institutional land to Preservation.
Ordinance 8198-10 was presented and read by title only. Councilmember Paul Gibson
moved to adopt Ordinance 8198-10 on third and final reading. The motion was duly
seconded and upon roll call, the vote was:
"Ayes": Mayor Frank Hibbard, Vice Mayor John Doran, Councilmember George N.
Cretekos, Councilmember Paul Gibson and Councilmember Bill Jonson.
"Nays": None.
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City Manager Reports
9. Consent Agenda
9.1 Approve a Professional Services Contract between the City of Clearwater and
Imagine Global Consulting to provide tourism-marketing services for the City of
Clearwater, in the amount of $164,000 per fiscal year, and authorize appropriate
officials to execute same. (consent)
9.2 Award a contract (purchase order) to Pierce Manufacturing Inc. of Appleton, WI in
the amount of $913,620 for the purchase of two (2) new Pierce Heavy Duty
Velocity Pumpers, in accordance with Sec. 2.564 (1)(b)and(e), Code of
Ordinances, Other governmental bid; authorize lease purchase in the amount of
$864,221.06 under the city’s Master Lease Purchase Agreement; declare vehicle
G2947 surplus to city needs; settle auto physical damage claim 10000201-0001 in
the amount of $49,398.94; amend the Fire Engines capital project budget to allow
an additional purchase and authorize appropriate officials to execute same.
(consent)
9.3 Amend City Council Policy 3I, Enterprise Fund Transfer Payment, to increase the
Gas System Dividend. (consent)
9.4 Authorize a purchase order for payment of premiums under the City’s 1% Life
Insurance program for the continuation of group life insurance plans with New
York Life Insurance in the amount of $360,000 for the 36-month period from
November 1, 2010, to October 31, 2013, in accordance with Sec. 2.564(1)(j),
Code of Ordinances, Exceptions to bid and quotation procedure. (consent)
9.5 Approve renewal of the City’s Statutory Death Benefits Policy with The Hartford
Financial Services Group providing accidental death and disability coverages for
all full-time Law Enforcement Officers, Firefighters, and applicable Administrators
for the two-year period from October 1, 2010 through September 30, 2012, at a
pre-paid cost of $20,423. (consent)
9.6 Approve the Agreement between the City and Connecticut General Life Insurance
Company (CIGNA) authorizing the City’s participation in the Federal Early Retiree
Reimbursement Program to be effective as of June 1, 2010 and authorize the
appropriate officials to execute same. (consent)
9.7 Ratify and confirm the City Managers approval to increase level of support for the
Super Boat Offshore Boat Race from $28,280 to $28,573 to cover the loss of
$293 in parking revenue. (consent)
9.8 Approve a Contract for Purchase of Real Property with Davna Investments, Ltd.,
d/b/a Davna Investment Limited Corporation, an Ontario corporation, to purchase
a 1.83 acre parcel of land addressed at 650 Old Coachman Road, Clearwater,
lying and being situated in the Southeast of Section 7, Township 29 South,
Range 15 East, as particularly described therein, for the sum of $320,000 plus
estimated transaction expenses not to exceed $10,000; establish capital
improvement project entitled Old Coachman Road Park (315-93132) to be funded
from Recreation Land Impact fees ($168,599), Open Space Impact fees
($72,465) and unappropriated retained earnings of the General Fund ($88,936);
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and authorize the appropriate officials to execute same, together with all
instruments required to effect closing. (consent)
9.9 Approve an Agreement between the School Board of Pinellas County and the City
of Clearwater for the City to utilize Pinellas County School buses at a cost of
$1.25 per mile plus $26.50 per hour, for a total estimated cost of $40,000, for
contract period ending August 23, 2011 and authorize the appropriate officials to
execute same. (consent)
9.10 Approve a donation to the Clearwater Homeless Intervention Project, Inc. (CHIP)
for funding of its 2010-2011 operation in the amount of $100,000
9.11 Approve a License Agreement between the Tampa Division of the Federal Bureau
of Investigation (FBI) and the City of Clearwater concerning the use of the
Clearwater Police Department District III Training Facility (Premises), located at
2851 McMullen Booth Road, Clearwater, Florida, for a 5-year period and
authorize the appropriate officials to execute same. (consent)
9.12 Approve acceptance of a Department of Justice, Bureau of Justice Assistance
(DOJ/BJA) grant in the amount of $146,150 for a one-year period to fund the
Clearwater Area Task Force on Human Trafficking and authorize the appropriate
officials to execute same. (consent)
9.13 Award a contract (Purchase Order) to Angelos Recycled Materials of Largo, FL in
the amount of $430,000 for the disposal of solid waste at their site for the period
October 22, 2010 through October 21, 2011 as provided in the city’s Code of
Ordinances, Section 2.561 and authorize the appropriate officials to execute the
same. (consent)
9.14 Award a contract (Purchase Order) to Pinellas County Solid Waste for an
operating expenditure of $4,000,000 for the disposal of solid waste at the Pinellas
County waste-to-energy plant/landfill for the period October 1, 2010 through
October 31, 2011 as provided in the city’s Code of Ordinances, Section 2.564 (1)
(d), Services provided by Other Governmental Entities, and authorize the
appropriate officials to execute the same. (consent)
9.15 Award a contract (Purchase Order) to Mothers Organics, Inc. of Seffner, FL in the
amount of $160,500 for the hauling of yard waste from the city’s solid waste
facility to the contractors processing facility for the period October 22, 2010
through October 21, 2011, as provided in the city’s Code of Ordinances, Section
2.561, and authorize the appropriate officials to execute the same. (consent)
9.16 Award a contract (Purchase Order) for $239,354.00 to Kenworth of Central Florida
of Orlando, FL for one Kenworth T800 with Palfinger Grapple Loader and
American Roll-Off, in accordance with Sec. 2.564(1)(d), Code of Ordinances -
Other governmental bid, authorize lease purchase under the city’s Master Lease
Purchase Agreement and authorize the appropriate officials to execute same.
(consent)
9.17 Ratify and confirm a 10-foot Drainage and Utility Easement over, under, across
and through the South 10 feet of Lots 8 and 10, Block B-2, MARYLAND
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SUBDIVISION, as more particularly described therein, conveyed by Peter G.
Nichols granted in consideration of receipt of $15,000 and the benefits to be
derived there from. (consent)
Vice Mayor John Doran moved to approve the Consent Agenda as submitted and that
the appropriate officials be authorized to execute same. The motion was duly seconded
and carried unanimously.
10. Other Items on City Manager Reports
10.1 Continue to November 4, 2010 the approval of the engineering and architectural
design services work order to Architect of Record, HDR Engineering, Inc., in the
amount of $651,004.00 for Fire Station 45 Renovation Project (09-0036-FI) and
authorize the appropriate officials to execute same. (consent)
Fire Station 45 was built in 1974 and no longer meets the challenges of a
contemporary fire station, including space needs, code requirements, security
concerns and sustainability. The City's intent is to construct a sustainable facility
with centralized, more efficient operations. The facility will be a focal point of the
Downtown Core displaying the Fire Department's history and foster to the
community the importance of green building practices.
HDR was hired for the preliminary design/programming phase, completed in
January 2010. The evaluation showed that building a new structure was more
cost effective than reusing the existing structure. Implementing sustainable
mechanical, electrical and plumbing systems increased construction cost by only
3 ½ %. The station renovation will include demolition of the existing fire station
and the Fire Prevention building on the corner of Franklin and Garden. The
extensive renovation project will result in a category 5, 3-story, 30,000-square foot
facility with a similar footprint as the existing fire station. The station will include on
the first floor, vehicle bays, training and public space; second floor living quarters;
and third floor Administration and Fire Prevention office space, with a conference
area that will serve as an Emergency Operations Center.
The City's goal is to have the new station achieve a Silver rating through the
Leadership in Energy and Environmental Design (LEED) certification. The design
and permitting phase is anticipated to be complete by September 2011, with the
construction phase scheduled for completion by December 31, 2012. The
estimated construction cost is $6,054,000, with a total project cost of $7,057,520,
including furnishings, LEED Certification, Commissioning, and A/E fees. The City
will be reimbursed for a portion of this cost by the County since the station will
also serve residents in unincorporated areas of the Clearwater Fire District.
The Fire Department shall be responsible for the day-to-day facility operations,
and the Building Maintenance Department will be responsible for the facility
maintenance. Annual operating costs for the station are anticipated to be
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approximately $88,700. The power and utility costs will be about 25% or $12,225
less than current energy costs for the existing station and Administration Building.
Sufficient budget and revenue is available in Capital Improvement Program
project 0315-91253, Main Station (Fire).
Councilmember Bill Jonson moved to continue Item 10.1 to November 4, 2010. The
motion was duly seconded and carried unanimously.
10.2 Authorize the contract between the City and CIGNA HealthCare for medical
insurance under a fully insured, Shared Returns Minimum Premium funding
arrangement for the contract period of January 1, 2011 to December 31, 2011, at
a total cost not to exceed $13.6 million dependent on the funding strategy as
determined by the City Council, and that $400,000 be appropriated from the
unrestricted reserves in the Central Insurance Fund to fund the additional cost of
healthcare above what was budgeted.
The contract with the City’s current medical insurance provider, CIGNA
HealthCare, expires on December 31, 2010. CIGNA presented a renewal offer
that was not acceptable to the City. The City Benefits Committee, made up of
representatives of all of the City’s employee groups and retirees, recommended
that the City’s Agent of Record, the Gehring Group, negotiate with the major
carriers to achieve a more favorable proposal. Quotes were submitted in
response by CIGNA, United Healthcare, and Aetna.
After evaluating all proposals, the City Benefits Committee, by a unanimous vote
of 15 to 0, elected to recommend to City Council that CIGNA be retained as the
medical insurance provider for 2011, and that the CIGNA Alternate Plan 2
proposal be adopted. This proposal would result in increases in office visit and
generic prescription copays under the current OAPIN "Base" plan, the elimination
of the current OAPIN "Copay" plan, and the maintenance of the existing schedule
of benefits for the current POS plan, at an overall cost increase of 5%. Staff
concurs with this recommendation.
Based on this recommendation, the Calendar Year 2011 cost for this scenario
would be $13.6 million ($10.3 million city share, $2.5 million employee share, and
$800,000 retiree/cobra share).
For fiscal year 2011, the City has budgeted approximately $9.9 million for 1,591
full time positions for the City’s share of medical insurance coverage (including
EAP and mental health/substance abuse). The City’s estimated share of actual
expenses for Fiscal Year 2011 would also be $10.3 million. The $400,000
difference between the $9.9 million that was budgeted and the estimated city
share cost of $10.3 million would need to be funded from reserves in the Central
Insurance Fund.
The Central Insurance Fund has approximately $28.2 million in reserves as of
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9/30/10. Of that amount, approximately $16.3 million is in excess of required
commitments in accordance with current policy. In addition, the Fiscal Year 2011
budget adds approximately $1 million to reserves (primarily from expected interest
earning on excess reserves). The use of $400,000 of reserves will be processed
as a quarterly budget amendment.
The above numbers assume that all positions are filled at all times and that
employees select the tier of coverage (employee only, employee + 1, and
employee + family) similar to the current year. City share of costs related to the
CIGNA contract for coverage for Fiscal Year 2012 will be budgeted as part of the
fiscal year 2012 budget.
This recommendation also includes maintaining the current funding strategy for
City contributions to health care premiums to represent 100% of the OAPIN Base
plan cost for Employee Only, 75% of the OAPIN Base plan cost for Employee plus
One, and 68% of the OAPIN Base plan cost for Employee plus Family, to be
applied to the respective tiers in the POS plan.
One individual spoke in support.
In response to questions, Gehring Group representative Kurt Gehring said federal
health insurance legislation did little to contain costs and future increases are
anticipated.
Discussion ensued with concerns expressed regarding increased employee health care
costs. It was recommended that the City assume the cost increase and apply surplus
premiums from last year to Fiscal Year 2011/2012 premiums.
Vice Mayor John Doran moved to authorize the contract between the City and CIGNA
HealthCare for medical insurance under a fully insured, Shared Returns Minimum
Premium funding arrangement for the contract period of January 1, 2011 to December
31, 2011, at a total cost not to exceed $13.6 million dependent on the funding strategy
as determined by the City Council, and that $400,000 be appropriated from the
unrestricted reserves in the Central Insurance Fund to fund the additional cost of
healthcare above what was budgeted. The motion was duly seconded and carried
unanimously.
Miscellaneous Reports and Items
11. City Manager Verbal Reports - None
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12. Other Council Action
12.1 Support the recommendations of the Joint Land Use and Transportation
Committee and adopt Resolution 10-28.
Councilmember George N. Cretekos moved to support the recommendations of the
Joint Land Use and Transportation Committee. The motion was duly seconded and
carried unanimously.
Resolution 10-28 was presented and read by title only. Councilmember Paul Gibson
moved to adopt Resolution 10-28. The motion was duly seconded and upon roll call,
the vote was:
"Ayes": Mayor Frank Hibbard, Vice Mayor John Doran, Councilmember George N.
Cretekos, Councilmember Paul Gibson and Councilmember Bill Jonson.
"Nays": None.
12.2 Undesignated Fund Balance in the Central Insurance Fund - Councilmember
Jonson
The current Council Policy regarding Central Insurance Fund reserves is as
follows:
S. Central Insurance Reserve Policy.
It is a policy of the City Council to maintain a Central Insurance Fund reserve to
guard against unforeseen or uninsured costs or increases in property, workers’
compensation, health or liability insurance. The target minimum balance for this
reserve is equal to 75% of the actuarially calculated self-insurance reserve
liability. If reserves are drawn down below the above target minimum balance, the
City will develop a plan to replenish the reserves, generally within five (5) years.
Note: Policy S was revised and approved by Council September 20, 2007.
As of September 30, 2009, this target minimum balance would be approximately
$6 million dollars.
The current balance of the Central Insurance Fund reserves is estimated to be
approximately $28.2 million as of September 30, 2010 (prior to closing the
books). After deducting the Council policy minimum reserve of $6 million, and the
8.5% of 2011 budget of $1.5 million (we have used the general fund reserve
policy for internal service funds as well), and $4.4 million of loans to other funds,
there is approximately $16.3 million in excess reserves at the current time.
Council 2010-10-21 16
Staff believes that prior to reducing available reserves in the Central Insurance
Fund, or designating reserves for specific purposes, Council should revisit the
reserve policy due to the following factors:
1. We currently insure our property for significantly less than our Total Insured
Value. The City has $580 million in assets, including approximately $48 million in
fleet assets. Until 2006, the City insured for its Total Insured Value, which, at that
time, was $409 million. Since 2006, coverage has been less than its Total
Insured Value. Currently, the City has only $35 million of coverage on property. A
more detailed description of the City’s insurance programs and associated risks is
available for review.
2. We live in an area that is subject to significant weather events, which would put
a drain on operating budgets due to the overtime required to recover from such
weather events or other emergencies.
3. Health insurance costs are continuing to rise, which could make self-insuring
employee health insurance a fiscally responsible thing to do in the near future. If
the City were to self-insure employee health insurance, reserves would need to be
established for the health insurance.
4. The City frequently has projects that it would like to start, prior to appropriate
funds being available. In addition, some projects that will result in future operating
savings need a funding source. The ability to use or loan funds from the Central
Insurance Fund has provided flexibility to the Council.
Accounting rules governing reserves do not allow formal designations of reserves
on the face of our financial statement for proprietary funds (like the Central
Insurance Fund). Council can designate reserves as part of their policy, but it
cannot be reported on the face of the financial statements.
Councilmember Bill Jonson recommended the Council review its policy regarding
the Central Insurance Fund as the $60 million balance significantly exceeds
Council guidelines.
Discussion ensued regarding large increases to property insurance premiums and
the need to maintain reserves to cover damages should a severe weather event
occur. It was stated that current reserve levels might be inadequate as many City
facilities would be expensive to replace. It was felt the status quo works well and
allows the City to pay for necessities without having to issue bonds.
In response to a question, Finance Director Margie Simmons recommended no
change to current policy and supported maintaining the current balance.
Council 2010-10-21 17
Consensus was to review the policy during the CAFR (Comprehensive Annual
Financial Report) presentation.
12.3 Approve a one-time grant to the Clearwater Marine Aquarium in the amount of
$750,000 to be applied to the purchase of property adjacent to the aquarium and
authorize modification of the restrictive covenant governing a portion of the
property located at 249 Windward Passage to allow CMA to mortgage the portion
of property subject to the City reverter, in an amount not to exceed $1,500,000.
The City has received a request from the Clearwater Marine Aquarium (CMA) for
a one-time grant in the amount of $750,000 to be applied to the purchase of
certain real property located adjacent to the CMA properties at 249 Windward
Passage. The requested grant will be applied as a match to a $750,000 grant
from the Jacobson Foundation towards the property purchase. The initial use of
the property proposed for purchase is for surface parking. In addition to the
requested cash grant, the CMA is requesting the City modify the restrictive
covenant governing the property originally deeded by the City to increase the
mortgage lien amount from the existing $600,000 limit to $1.5 million. In addition
to the requested modification, staff recommends modifying the language of the
covenant to clarify its application. If Council is supportive of the subject requests,
staff recommends the cash grant be funded from General Fund Reserves with the
appropriate budget amendment to follow at 1st Quarter.
Clearwater Marine Aquarium Executive Vice President Frank Dame reviewed the
request for a $750,000 grant to use toward the purchase of property abutting the
aquarium, which will allow expansion of the facility and temporary parking lot. Mr.
Dame anticipated the release of a film about the dolphin Winter would spur further
admission increases. The aquarium attracts visitors to Clearwater beach
businesses and provides a return on investment through sales and bed taxes,
benefitting the entire city. Mr. Dame said the aquarium has spent almost $3
million expanding the facility and meeting its mission to care for marine animals.
In response to questions, Mr. Dame said the aquarium cannot afford an additional
$750,000 loan or pay property taxes if it leased the lot. The grant awarded to the
aquarium requires that no additional debt be acquired. City exposure will not
increase as the proposed change to the mortgage lien amount is based on a
3.25% CPI annual increase since the original agreement was approved 24 years
ago. In response to a concern that the subject property is appraised for less than
the purchase price, Mr. Dame discussed the purchase agreement, which includes
a $200,000 pledge to the aquarium after $1 million of debt is paid.
Six individuals spoke in support and two individuals spoke in opposition.
Council 2010-10-21 18
Discussion ensued with concerns expressed regarding increased aquarium
attendance impacting nearby roads and timing of request given state of economy.
Support for using Penny for Pinellas funds was based on council policy to use the
most restrictive funds possible first. Concern was expressed that General
Reserve Funds should be used as city residents had supported extending Penny
for Pinellas for another decade based on a list of projects, which is expected to be
reprioritized due to tax shortfalls. It was stated that attractions are necessary to
keep beach hotels and businesses viable.
Councilmember George N. Cretekos moved to approve a one-time grant to
the Clearwater Marine Aquarium in the amount of $750,000, from General
Fund Reserves, to be applied to the purchase of property adjacent to the
aquarium and authorize modification of the restrictive covenant governing a
portion of the property located at 249 Windward Passage to allow CMA to
mortgage the portion of property subject to the City reverter, in an amount not
to exceed $1,500,000. The motion was duly seconded and upon the vote
being taken:
Mayor Frank Hibbard, Vice Mayor John Doran, Councilmember
"Ayes":
George N. Cretekos, and Councilmember Paul Gibson.
"Nays":Councilmember Bill Jonson.
Motion carried.
The City Council recessed from 9:43 p.m. to 9:51 p.m.
12.4 City Manager Evaluation
AND
12.5 City Attorney Evaluation
Councilmembers provided positive evaluations of the City Manager and City
Attorney.
13. Closing Comments by Mayor
Mayor Hibbard reviewed recent and upcoming events and thanked Margie Simmons for
her service to the City and wished her well on her retirement.
Council 2010-10-21 19
14. Adjourn
The meeting was adjourned at 10:11 p.m.
Mayor
City of Clearwater
Attest
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City Clerk
Council 2010-10-21 20