Loading...
10/18/2010 CITY COUNCILWORKSESSION MINUTES CITY OF CLEARWATER October 18, 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 Patricia O. Sullivan - Board Reporter. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Mayor Frank Hibbard called the meeting to order at 9:00 a.m. at City Hall. 1. Presentations - Given 1.1 Service Awards Seven service awards were presented to city employees. 2. Economic Development and Housing 2.1 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) In the wake of changing market trends in tourism and a nationwide economic downturn, the Economic Development and Housing Department assessed current market trends in tourism in order to determine how best the city can utilize its limited resources to capture more visitors and strengthen awareness of the city’s offerings as a premiere destination. On July 16, 2010, the City released Request for Proposals 21-10, with the goal of selecting an experienced marketing and public relations partner in directing future marketing, advertising, and public relations efforts (including social media) in an aggressive and comprehensive manner to capture more visitors and strengthen the awareness of the city’s attributes and offerings as a vacation destination. Twenty proposals were received on August 16, 2010. The Selection Committee was made up of the following: Brian Kramer, General Manager Hyatt Clearwater Beach Resort and Spa; Gary Hallas, Tsunami Marketing; Ramona Hurley, RIH Consulting; Joelle Castelli, Director of Public Communications, and Geri Campos Lopez, Director of Economic Development and Housing. The Selection Work Session 2010-10-18 1 Committee met on August 30, 2010 to review and rank the proposals. Proposals were evaluated and ranked based on experience, proven performance/similar work, ability to leverage dollar and relationships, creativity, and proposed plan for costs. The top five firms were asked to present their proposals to the Selection Committee: Absolute Thinking, Orlando, FL C.C. Communications, Safety Harbor, FL Clearwater Regional Chamber of Commerce, Clearwater, FL FKQ Marketing and Advertising, Clearwater, FL Imagine Global Consulting, New York, NY After oral presentations were made on September 8 and 9, 2010, Imagine Global Consulting became the top-ranked firm. Staff is recommending Imagine Global Consulting for the following reasons: - Comprehensive approach to the scope of work with clear objectives, strategies and tactics - Relationships with New York and other international media, including the German media (one of our key international feeder markets) - Creative ideas/concepts for public relations campaigns - One full-time person dedicated to this account - Excellent references from Pinellas CVB, State of North Carolina, and State of Texas - Understanding of current travel trends (Instant Access, Value Driven, Late Bookings, Personalized Experiences, Social Networks) The Scope of Work will include developing a detailed action and activity-marketing plan aimed at increasing the brand awareness for the City of Clearwater. IGC will promote Clearwater according to its unique selling points and defined niche markets. They will also assist the City with the creative direction for an updated tourism website. As part of their monthly reports, IGC will provide document progress made on performance goals and measures. The contract is for $160,000 inclusive of all advertising, marketing, and administration. In addition, $4,000 is for direct reimbursable expenses. The Greater Clearwater Chamber of Commerce was thanked for their efforts in the past. It was commented this tourism marketing will reach many people inexpensively and while the City strives to support local businesses, feedback on this firm has been excellent. 3. Fire Department Work Session 2010-10-18 2 3.1 Approve 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 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 Work Session 2010-10-18 3 project 0315-91253, Main Station (Fire). In response to questions, Deputy Fire Chief Robert Weiss said the current EOC (Emergency Operations Center) lacks adequate space for equipment storage and was designed as a back-up facility. The principal EOC will be on the third floor of Fire Station 45. Deputy Fire Chief Weiss said new fire stations are larger to meet changing standards associated with protective gear storage, decontamination, and separate living quarters. The current site has access to all major corridors and has the appropriate distance from the beach. Moving the facility would impact responses by other units and departments. The City has spent approximately $65,000 on preliminary work for the current site. Fire Chief Jamie Geer said staff considered a number of sites. Assistant City Manager Jill Silverboard said the Council is scheduled to review the Penny for Pinellas 3 list in November to prioritize items and cut anticipated funding. City grant applications submitted during the past year to help pay for this facility were unsuccessful. This project is budgeted for funding from Penny for Pinellas 2 and 3. Discussion ensued regarding the station’s location, with recommendations that city-owned property on Court Street and the Clearwater Auto site also be explored. Consensus was to continue Item 3.1 to November 2010. 3.2 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) Clearwater Fire and Rescue purchased five (5) front line fire engines in 1999 and established a capital improvement project to fund the replacement of one of these units each year starting in Fiscal Year 2010. One unit was replaced in Fiscal Year 2010 under this plan. The second of these units, Engine 51 based at the Northwest Station, is ready for replacement. Funds in the amount of $470,000 are budgeted in capital project 316-91218, Fire Engine Replacement, for the purchase of this engine. Related Work Session 2010-10-18 4 debt payments are budgeted in the department’s 2010/2011 operating budget. The current unit will be surplused and retired due to its age and condition. At the present time, the Department desires to purchase an additional front-line engine to replace a reserve engine that was recently damaged beyond repair. Reserve Engine 1 was purchased in 2004 for $211,726.10 for the reserve fleet. During a call in July, the unit was damaged and due to the age of the unit and the damage sustained, it was determined to be a total loss. An amount of $49,398.34 will be paid from the Central Insurance Fund as full and final settlement of the city’s auto physical damage claim 10000201-0001. This unit will be declared surplus and is eligible as a trade-in to realize a discount on a new purchase. The Department desires purchasing a heavy-duty front line unit to replace Engine 49, purchased in 1999, and will move the current Engine 49 to the reserve fleet to maintain three required reserve units. The full price for two units is $943,620.00, or $471,810 per unit. The manufacturer has offered a discount of $5,000 if identical units are ordered at the same time and a $25,000 trade-in allowance on the totaled unit. These items reduce the purchase price to the $913,620.00 requested above. The current CIP project 316-91218, Fire Engine Replacement, has $470,000 of Lease Purchase funding available. The Department proposes a First Quarter Budget Amendment to increase the CIP project by $443,620.00 to complete this purchase. The amendment would include $394,221.06 of Lease Purchase funding and $49,398.94 of Insurance Claim Receipt revenue. By scheduling delivery of the two engines after mid-year there will be sufficient debt funding available in the department’s operating budget to make one debt payment on each engine in Fiscal Year 2011. Annual debt costs of approximately $186,780 will be budgeted in the department’s fiscal year 2011/2012 and future budgets as necessary. The County will reimburse the City for a portion of the purchase, approximately 12%, as the vehicle will support fire operations in the unincorporated areas of the Clearwater Fire District. The Department has determined the Pierce Heavy Duty Velocity Pumpers built by Pierce Manufacturing meets the operational needs of the Department. Estimated annual operating costs in the department’s annual operating budget include fuel and routine garage charges for operating the new vehicles. Garage charges on the new vehicles are expected to be less than on the replaced vehicles. This purchase is a piggyback of Lake County Contract 08-0803. The Pierce pumper is the City of Clearwater Fire and Rescue Department standard for the purpose of training and maintenance. Custom components have Work Session 2010-10-18 5 been added to meet the needs of the fire district and surrounding municipalities. Warranty: Limited 1 year warranty for 12 months free of defects in material and workmanship; 3 year warranty on the Impel/Velocity custom chassis; lifetime on chassis frame crossmembers, Imp/Vel; 5 year on EVS transmission; 5 years on command zone components, Chassis, Vel/Impel/Qtm/AXT; lifetime on UPF and water tank; 5 years on waterous (pump); 10 year on S/S plumbing and standard paint; 10 yrs or 100,000 on vehicle cab and body; and 5 year or 100,000 mile warranty on engine provided by Cummins. Maintenance: Ten-8 Fire Equipment, Inc., a full service apparatus repair facility, will perform all of the warranty work. Our City’s General Services Division will perform routine maintenance and testing. Annual pump testing will be performed by our Logistics Bureau in accordance with NFPA standards. Any additional repairs can be contracted through Ten-8 at an additional cost per their service fee schedule. A heavy-duty Velocity pumper apparatus provides exceptional pumping water capability, enhanced storage capability, lower vehicle profile and will significantly up-grade the abilities of the unit it replaces. The proposal for fire apparatus conforms to all Federal Department of Transportation (DOT) rules and regulations in effect at the time of bid, and with all National Fire Protection Association (NFPA) Guidelines for Automotive Fire Apparatus as published at the time of bid, except as modified by customer specifications. Pierce Manufacturing operates a Quality Management System under the requirements of ISO 9001. The apparatus will meet the current NFPA 1901 recommendations and will maintain design and operational features consistent with the department’s needs. In response to questions, Deputy Fire Chief Robert Weiss said equipment and most components are stored in the same locations on all city fire trucks. Pierce Manufacturing is one of the better manufacturers and has a repair facility in Bradenton. Deputy Fire Chief Weiss said other manufacturers outsource repairs. The engine is more expensive because it has been modified to meet standards. Concerns were expressed regarding the minimal discount being offered by the vendor on a purchase of nearly $1 million. Deputy Fire Chief Weiss reviewed accident damages that totaled a fire truck on Gulf-to-Bay Boulevard in July 2010. Risk Manager Sharon Walton said the claim remains open. The original repair estimate was almost $70,000 and could be higher if hidden damages exist. The settlement is based on the appraised value. Work Session 2010-10-18 6 Solid Waste/General Services Assistant Director Rick Carnley said the truck, purchased as a reserve in 2004, had a lower value due to the limited capacity of its water tank. The purchase of the vehicle was not scrutinized as well as it should have been. Upgrades to the new fire trucks address safety issues and include a larger engine and transmission, which will reduce maintenance costs, extend the lives of the vehicles, and increase their resale values. Nearby departments are purchasing similar equipment. Assistant City Manager Jill Silverboard said the City determined its lease- purchase agreement was preferable to the $31,000 discount offered if the City paid for the trucks upfront. 4. Gas System 4.1 Amend City Council Policy 3I, Enterprise Fund Transfer Payment, to increase the Gas System Dividend. (consent) Staff recommends amending Policy 3I, Enterprise Fund Transfer Payment as follows: The Gas System Dividend will be a minimum of $1,000,000 1,700,000 plus a PILOT (Payment in Lieu of Taxes) fee of at least $508,720. Such PILOT fee will be paid by the Gas System Franchise Fees to offset such PILOT payment. When the Gas System Net Income less Bond Interest Earnings exceeds $2.0 3.4 million for any fiscal year, the Gas Dividend payment for the next fiscal year will be one half of that amount. 4.2 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. Work Session 2010-10-18 7 Service labor billing has been revised from an hourly rate with a 1-hour minimum to a trip charge plus per quarter hour rate. 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. CGS (Clearwater Gas System) Managing Director Chuck Warrington provided a PowerPoint presentation. In response to a question, Mr. Warrington said technician charges are based on quarter-hour increments that begin 7.5 minutes into each quarter hour. 5. Human Resources 5.1 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) The City maintains a group life insurance benefit for employees, referred to as the 1% Life Insurance Program, under which the City matches employee contributions for individual life insurance premiums in an amount not to exceed 1% of the employee’s annual salary. Of the present 1% Life Insurance participating vendors, only New York Life Insurance currently maintains employee enrollment in numbers great enough that the total dollar amounts for employee and City contributions to premiums require City Council approval authorizing a purchase order for payment. This purchase order will provide for funds to cover fiscal years 2010, 2011, and 2012. 5.2 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) The City’s current policy with The Hartford to provide statutorily required accidental death and disability benefits to sworn Police and Fire personnel expired Work Session 2010-10-18 8 on September 30, 2010. The City’s Agent of Record, the Gehring Group, obtained quotes from The Hartford and two other providers, Chubb and Chartis, for a renewal of the policy. The Hartford submitted the lowest quote and offered a two- year premium rate of $20,423 on a pre-paid basis, which would result in a 30% savings from the City’s current annual premium rate for this insurance. Due to state regulations, insurance carriers cannot offer rate guarantees in excess of 24 months for AD and D cases. This policy, effective for the two-year period from October 1, 2010 through September 30, 2012, provides for a statutorily required increase in benefits at a discounted rate guaranteed for two years, with no annual renewal application requirement and the ability to cancel the policy at any time with no penalty. 5.3 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) Under the Federal Affordable Care Act, a new program called the Early Retiree Reinsurance Program has been established to provide financial relief to employers, including local governments, in order to help retirees and their families continue to have quality, affordable health coverage. Applicants who are approved to participate in the program receive reinsurance payments for health benefit claims for retirees age 55 and older who are not yet eligible for Medicare, and their spouses, surviving spouses, and dependents. The amount of reimbursement to the employer is 80 percent of the medical claim costs between $15,000 and $90,000 for the health benefits of a covered individual. Claims dating back to June 1, 2010 can be submitted as of September 2010. Approved applicants can use these funds to provide premium relief and other health care cost relief to their retirees and workers and their families, to offset increases in their own health care premiums or costs, or a combination of these purposes. The City has been approved for participation in the program. CIGNA has calculated an estimated valuation of the City’s potential reimbursements to be between $181,000 and $302,000 for the 2010 plan year, and between $311,400 and $519,000 for plan year 2011. Reimbursement proceeds may be used by the City to reduce health benefits premiums or costs, reduce health benefit premium contributions, copayments, deductibles, coinsurance or out-of-pocket costs for plan participants, or any combination of these. The City may not use any ERRP reimbursements as general revenue. Under this Agreement, CIGNA shall provide the City with services related to the program, to include monthly reporting of applicable claim data in the Health and Human Services Department required format, at a cost to the City of $7,500 per year. In response to questions, Human Resources Manager Allen Del Prete said GASB (Governmental Accounting Standards Board) rules could affect post employee benefits, depending on how program money is spent. The City will not determine how to use the funds until the amount is known. The program’s purpose is to assist retirees too young for Medicare. Work Session 2010-10-18 9 5.4 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 City’s estimated share of actual expenses for FY 2011 would be $10.3 million. The CY11 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 $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 $18.2 million in reserves as of 9/30/10. Of that amount, approximately $16.3 million is in excess of required commitments in accordance with current policy. In addition, the FY11 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 Work Session 2010-10-18 10 employee + family) similar to the current year. City share of costs related to the CIGNA contract for coverage for FY 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. Human Resources Manager Allen Del Prete provided a PowerPoint presentation. Human Resources Director Joe Roseto said 32% of city employees are using the clinic, which has been open for 3 months. Use is on track to meet estimates of 40% use in the first 6 months. Staff is working with CIGNA to identify savings resulting from clinic use, medication provisions, and negotiated prices for imaging services. Staff was directed to provide information regarding coverage for durable medical equipment. In response to questions, Mr. Del Prete said if claims are reduced, insurances costs will go down. All requirements for calling the meeting of the Health Insurance Benefits Committee were met. City contributions to health insurance was flat for 4 years. Concern was expressed that employees with chronic conditions will have to pay co-pays that are more expensive. It was hoped that staff, which have not had a salary increase, would take advantage of the clinic to reduce their overall health costs. 6. Parks and Recreation 6.1 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) On April 15, 2010, the City Council approved an agenda item for co-sponsorship and level of support for events to be held in Fiscal Year 2010/2011 including the Super Boat Offshore Boat Race (SBOBR). The Council approved supporting the SBOBR for $28,280. Sponsors discovered just recently that they needed some additional city parking spaces on Papaya Street for race day to facilitate ESPN Radio covering the event live. The Work Session 2010-10-18 11 additional loss revenue will be $293. In order to make sure that the event, which was held October 2 - 3, 2010, went smoothly the City Manager approved increasing support to SBOBR by $293 from $28,280 to $28,573. Staff is recommending that Council ratify and confirm the City Manager’s decision. 6.2 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); and authorize the appropriate officials to execute same, together with all instruments required to effect closing. (consent) The use of Brighthouse Networks Field and the Carpenter Complex continues to grow and staff, as well as the Philadelphia Phillies, believes there is a potential to expand facilities for future use. The only direction expansion can occur is to the West. Staff is recommending the purchase of 1.83 acres of land located due west of Brighthouse Networks Field, which may be used for additional grass parking for Spring Training games as well as temporary housing for coaches coming to Clearwater. The purchase price was established by complete appraisal dated August 10, 2010 performed by state certified appraiser Robert E. Riggins, MAI. Contingent upon Council approval, the contract will become effective upon execution (Effective Date). The City is to deposit $10,000 within 10 business days following the Effective Date. The deposit will be held in escrow pending closing, and is refundable during the 45-day Inspection Period should the City terminate the Contract, as a result of its due diligence investigations. Closing is to occur within 60 days following the Effective Date, unless terminated pursuant to other contract provisions. Recommended funding to come from available Recreation Land and Open Space Impact fees as well as $88,936 from unappropriated retained earnings of the General Fund. An amended Agreement between the Phillies and the City will be forthcoming regarding the use and maintenance of the property to include the team’s contribution as well as the team assuming all costs related to the ongoing maintenance of the site as well as any facilities on the site. Work Session 2010-10-18 12 In response to questions, Parks and Recreation Director Kevin Dunbar said long-term uses of the lot will not intrude on the abutting apartment buildings. The seller wants to move quicker than the City is able to finalize a contract with the Phillies, which have agreed to cover all maintenance costs for the lot. It was noted the property is not within the city and property annexation will be subject to referendum if Amendment 4 passes. 6.3 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) The Parks and Recreation Department organizes field trips requiring bus transportation for participants. The Pinellas County School System (PCSS) allows municipalities to utilize their fleet of buses and drivers for $1.25 per mile plus $26.50 per hour for driver with a four-hour booking minimum. During the summer of 2011, the department will organize approximately 150 field trips that could utilize school bus transportation. Comparing a sampling cost of school buses for these trips against the use of private bus lines indicates school buses are a less costly mode of transportation, in most cases. During the past year we utilized the school buses for our field trips at a cost of $33,000, with the per mile and per hour charge proposed in this Agreement. Approval of this Agreement will provide staff with a larger number of options when determining the most cost effective source of transportation for participants. The attached Agreement is similar to Agreements between the Pinellas County School Board and other Pinellas County municipalities that utilize school bus transportation. The Recreation Programming Division’s Operating Budget contains sufficient funds to cover the costs associated with this Agreement. 7. Police 7.1 Approve a donation to the Clearwater Homeless Intervention Project, Inc. (CHIP) for funding of its 2010-2011 operation in the amount of $100,000 The Clearwater Homeless Intervention Project Shelter opened in April 1998, and since that date has provided a safe overnight facility for homeless persons and Work Session 2010-10-18 13 essential support services to help individuals and families begin to improve their lives. In CHIP’s continuum of care, there are currently three programs offered: Outreach and Assessment through the Day Center component; Emergency Housing in the Shelter Services; and Transitional Housing at the Parkbrooke Apartment Complex. In previous years, the City of Clearwater has donated $100,000 to CHIP. The Police Department requests that the City continue their contribution to CHIP, which will be applied toward needed operational funding essential to the CHIP shelter’s successful operation. The City Council approved adding $100,000 to the police budget, for this purpose during the fiscal year 2010- 2011 budget preparation meetings. Funding for this donation in the amount of $100,000 is available in special program project 181-99274, Homeless Shelter. Staff was directed to provide information on city's contributions for homelessness. 7.2 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) The FBI has requested use of the Police Department’s District III Training Facility, including available parking, to conduct firearms qualifications and tactical training during such days and dates as is mutually agreeable with the understanding that the Police Department will have priority use of the Premises for its own training purposes. The FBI agrees to indemnify and to hold harmless the City of Clearwater from any and all liability, including attorney’s fees, resulting from injury to persons or property arising from the FBI’s use of the Premises in an amount not to exceed $3 million. If damages exceed $3 million, the FBI will request additional appropriations from the U.S. Congress to make the City of Clearwater whole. The FBI and the Police Department will assign points of contact (POCs) for this agreement. The POCs will address and resolve all issues related to the License Agreement. The parties agree to coordinate safety issues, jurisdictional matters, and other issues through their designated POC.All activities of the Parties under this agreement will be carried out in accordance with the terms and conditions of this agreement to become effective upon signatures of all parties, and will remain in effect for five (5) years. Work Session 2010-10-18 14 7.3 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) The police department was invited by the U.S. Department of Justice to apply for an additional Law Enforcement Task Forces and Services for Human Trafficking Victims Grant from the U.S. Department of Justice. On June 2, 2010, the Resource Management Committee approved the submission of the Police Department’s grant application. On September 13, 2010, the Clearwater Police Department (CPD) received notification that it had been awarded DOJ/BJA funds in the amount of $146,150 for the continued operation of its very successful Clearwater Area Task Force on Human Trafficking (CATFHT). Clearwater’s task force has been successful, resulting in 17 human trafficking victims receiving services; 52 arrests; and 21 convictions. Clearwater’s task force has been designated by the Department of Justice as a national training site for other task forces. The grant will be used to continue paying the salary and benefits of the grant- funded Human Trafficking Detective position. Other grant expenditures will include: overtime for investigators; a GPS tracker; GPS software; aircards; cell phone service; laptop computer; printing and publication of brochures and flyers; office supplies; a projector and projection screens for public presentations; tabletop display for conferences and community events; portable DVD player and case for public presentations; and task force website maintenance. Special Project 181-99256 will be established at 1st Quarter to account for the grant expenditures. There is a 25% in-kind match required for this grant. CPD is providing the in-kind match with the $48,717 in salary for the sergeant/supervisor of the Intelligence Unit and the Lieutenant who oversees the task force. There are no retention requirements associated with this grant. 8. Solid Waste/General Support Services 8.1 Award a contract (Purchase Order) to Angelo’s 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) The Solid Waste Department collects bulk trash and construction and demolition debris from both commercial and residential customers. This trash and debris (which excludes anything that could putrefy or produce leachate that poses a health or environmental threat) is transported by city collection vehicles to the Work Session 2010-10-18 15 contractor’s state-permitted disposal facility. During the summer of 2009, the Purchasing Department advertised a request for bids for trash and debris disposal services. Angelo’s Recycled Materials was awarded a contract by purchase order for Fiscal Year 2009/2010. Angelo’s Recycled Materials has provided the city with a letter stating that pricing will remain at the current level for the twelve-month period of October 1, 2010 through September 30, 2011. This is the first renewal of an annual contract with the same terms and conditions of the original contract. 8.2 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) Pinellas County operates the only waste-to-energy plant and landfill in the county. 8.3 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) The City of Clearwater’s Solid Waste Department collects yard waste from residential customers. This yard waste is transported to the city’s state-permitted yard waste transfer facility located at the city’s solid waste complex. Yard waste contains grass clippings, leaves, tree trimmings, logs, stumps, and other vegetative material, including small amounts of rocks and soil. Mother’s Organics, Inc. has been providing the city with this hauling service since June 2010. They have given the city a letter stating that pricing will remain at the current level for the twelve-month period of October 1, 2010 through September 30, 2011. This is the first renewal of an annual contract with the same terms and conditions of the original contract. 8.4 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) The Kenworth Grapple Loader and Roll-Off will be purchased through the Florida Sheriff’s Association and Florida Association of Counties Contract 10-18-0907, Work Session 2010-10-18 16 quote dated September 23, 2010 and specification 49. The Kenworth Grapple Loader will replace G2221, a 1999 Mack front loader, included in the Garage CIP Replacement List for Budget Year 2010/2011. During the budget process, the Department determined that the front loader was not needed but the yard waste program started earlier this year has been so successful that another Jaws truck was needed. The Solid Waste Department has been dumping the yard waste collected from the citizens of Clearwater at a site in Largo for $37.00 per ton. Currently we bring the yard waste to our yard and dump it on the ground, then use a Jaws truck to load the material into large trailers provided by a contractor who then hauls the material to their site in Hillsborough County at a cost of $26.75 per ton. The material is then recycled at that location. This collection method has saved the Department approximately $62,000 during the first eight months of this year. The current Jaws truck’s boom is not strong enough to continue this loading process for an extended period so we decided to look at various alternatives. The boom that we found for this new truck is built strong enough to withstand the daily pressures of this loading and will have an extended life. This boom can be used on the truck to collect yard waste within the city and debris in the aftermath of a storm. The truck will have a roll-off frame so we can use the truck in our roll-off business when needed giving us additional flexibility. 9. Engineering 9.1 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 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. 9.2 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 SUBDIVISION, as more particularly described therein, conveyed by Peter G. Work Session 2010-10-18 17 Nichols granted in consideration of receipt of $15,000 and the benefits to be derived there from. (consent) Engineering staff is finalizing plans for its 614 South Missouri Avenue Storm Pipe Replacement Project (Project 09-0048-EN). The project will consist of removing and replacing a 54-inch storm pipe and an 8- inch sanitary sewer traversing the subject parcel. The existing easement is too narrow to replace the existing pipe and the City has been negotiating with the property owner to obtain a suitable easement for almost two years. The subject easement will provide the City a 20-foot drainage and utilities corridor over, under, across and through Grantor’s property to accommodate not only the stormwater but also gas and water lines that exist outside of documented easement. The subject 10-foot easement lies contiguous on the north to an existing 10-foot utility easement over the easterly 106.4 feet of the subject lands conveyed to the City in 1961 as recorded in O. R. Book 1270, Page 380, Pinellas County public records; and a 20-foot utilities easement granted in 1968 as recorded in O. R. Book 2759, Page 106, Pinellas County public records, extending west from the 1961 easement. Conditional upon the grant of the subject easement, staff will submit an application for Council to vacate the southerly 10 feet of the 1968 easement as that portion is not utilized or required. 10. Planning 10.1 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 (OS/R), Low Density Residential (LDR) and Preservation (P) districts to Institutional (I), Open Space/Recreation (OS/R), and Preservation (P) districts Work Session 2010-10-18 18 (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. Staff was directed to provide map presented by Dr. Cuba regarding evaluation ratings. 11. Legal 11.1 Amend provisions of Chapter 29, Article II, Business Tax Receipts, Clearwater Work Session 2010-10-18 19 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 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. 11.2 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). 11.3 Adopt Ordinance No. 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). 11.4 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. 11.5 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). 11.6 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 Work Session 2010-10-18 20 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. 12. Council Discussion Items 12.1 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 Work Session 2010-10-18 21 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. 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. 12.2 Model Resolution for Local Governments - Councilmember Doran Vice Mayor John Doran said during the past three months the MPO (Metropolitan Planning Organization), PPC (Pinellas Planning Council) and Board of County Commissioners have met and are recommending combining the MPO and PPC boards, with one staff. All 13 members of the single board would be elected. The functions of the PPC and MPO will continue. City Council approval is requested. Reapportionment is not part of this issue. Work Session 2010-10-18 22 It was stated that the board will consider transportation and land use issues together. Concern was expressed that City representation will be diluted due to the board’s larger size, that large and small cities will have equal representation, and the workload will be significant. It was felt that a consolidation of Tampa Bay MPOs will not occur in the near future. Consensus was for the City Attorney to provide Council with a resolution on this request. 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. The Council recessed from 11:00 a.m. to 11:08 a.m. Clearwater Marine Aquarium (CMA) representative Frank Dame said recent visitor increase has taxed the capacity of the facility’s current building and parking lot. CMA has negotiated the purchase of abutting property for surface parking. CMA has been awarded a $750,000-grant, which requires a match, and raised some funds for purchasing the property. Closing must occur before December 1, 2010. Mr. Dame said following the release of the movie on Winter, attendance is expected to increase further and will result in an Work Session 2010-10-18 23 unpleasant guest experience if changes are not made. The investment would have a positive impact on the City and on beach businesses. Compliments were expressed regarding aquarium improvements and the long-term benefits the upcoming movie will have on the aquarium and Clearwater. Discussion ensued regarding use of General Fund Reserves versus Penny for Pinellas funds with concerns expressed regarding the City owning additional aquarium property. It was stated a request has been made to allow the TDC (Tourist Development Council) to fund some capital needs of zoological not- for-profits instead of just providing advertising. The City Attorney said Penny for Pinellas 3 funds are not available until next year and only can be used to purchase property. It was noted that the City will need to make infrastructure improvements to handle increased aquarium traffic. In response to a question, the City Attorney said the City owns a portion of the aquarium property. Staff recommends modifying language related to a construction mortgage. If the CMA defaults, the city would be subject to the outstanding construction mortgage. The City does not want a liability that exceeds the property’s value. 12.4 City Manager Evaluation 12.5 City Attorney Evaluation 13. Closing Comments by Mayor 14. Adjourn The meeting was adjourned at 11:59 a.m. 15. Presentation(s) for Council Meeting 15.1 Presentation of the Key to the City by Mayor Hibbard to Mr. William Kahn 15.2 2010 National Community Planning Month Proclamation Work Session 2010-10-18 24 15.3 Sister Cities Summer Trip to Nagano 15.4 Introduction of Mr. Kenzo Kawashima, visiting Nagano teacher 15.5 Offshore Boat Race Presentation Work Session 2010-10-18 25