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05/31/2011 CITY COUNCIL WORKSESSION MEETING MINUTES CITY OF CLEARWATER May 31, 2011 Present: Mayor Frank Hibbard, Vice Mayor George N. Cretekos, Councilmember John Doran, Councilmember Paul Gibson, and Councilmember Bill Jonson. Also Present: Jill S. Silverboard - Assistant City Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, and Nicole Sprague – Official Records and Legislative Services Coordinator. To provide continuity for research, items are 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 1.1 Service Awards Two service awards were presented to city employees. 1.2 Police Recruits Swearing In The City Clerk administered the Oath of Office for Clearwater Police Officers: Andrew Anderson, Justin Howard, Robert Main, Geoffrey Newton, and Sherman Young III. The Council recessed from 9:04 a.m. to 9:51 a.m. to meet as the Community Redevelopment Agency and the Pension Trustees. 2. Police 2.1 Award a contract (purchase order) to Advanced Public Safety, Deerfield Beach, Florida, in the amount of $153,205.18 for the purchase of APS Quick Ticket software and 170 Pentax (Brother) Pocketjet 6 Plus printers for use in police pursuit vehicles in accordance with Sec. 2.564 (1)(e), impractical to bid and authorize lease purchase under the City’s Master Lease Purchase Agreement and authorize the appropriate officials to execute same. (consent) Work Session 2011-05-31 1 The current in car mobile printer system has reached the end of its useful life and is in need of replacement. The department continually addresses complaints from the Florida Department of Highway Safety and Motor Vehicles for the high number of voided citations and from the Pinellas County Clerk of the Court for legibility issues. Information Technology performed a review of other alternatives and recommends this award based on compatibility and as an enhancement of existing software that is used for Clearwater police motorcycle ticket processing. The APS Quick Ticket citation software uses the Pentax (Brother) Pocketjet 6 Plus printer, which will more efficiently meet the needs of the City. The APS Quick Ticket will provide for automated numbering of citations and eliminate the need to use the multi-copy uniform traffic citation. The system is available only from Advanced Public Safety, the sole source provider. The solution positions the City to achieve future efficiencies as the Clerk of the Court is preparing to accept citation data electronically. This will reduce paper flow between the Police Department and the clerk. Additionally, the system will have Bluetooth connectivity that will reduce issues experienced historically through USB connections. There is lease purchase funding available in project 316-94814, Network Infrastructure and Server Renewal and Replacement to fund this purchase. Funding for the estimated annual debt service payments of $53,610 have been budgeted in the Information Technology operating budget. In response to questions, Information Technology Director Daniel Mayer said the current multi-copy uniform traffic citation uses pre-printed forms with sequenced citation numbers that must be voided and returned to the vendor if printed citation information is not properly aligned. Audit procedures require that voided citations numbers be accounted. Police Lieutenant Daniel Slaughter said the new software could issue citations within one minute. Depending on the error rate, the current system issues citations within 3-6 minutes. 3. Solid Waste/General Support Services 3.1 Award a contract (purchase order) to Sage Eco Solutions, Inc. of Riverview, FL in the amount of $287,500 for the hauling of yard waste from the city’s solid waste facility to the contractors facility for the period May 20, 2011 through May 19, 2012 as provided in the city’s Code of Ordinances, Section 2.561 and authorize the appropriate officials to execute the same. (consent) Work Session 2011-05-31 2 The City of Clearwater's Solid Waste Department collects yard waste from commercial and residential customers. This yard waste is transported by city vehicles to the city's state-permitted yard waste transfer facility located at 1701 North Hercules Avenue and it is subsequently loaded in the contractor's tractor/trailer for hauling. Once at the contractor's facility, it is shredded for composting. The specifications for the yard waste hauling bid included a description of yard waste (loose or bagged grass clippings, loose or bagged leaves, tree trimmings, logs, stumps, other vegetative material, and small amounts of rocks and soil), trailer requirements and availability, hauler duties, and billing requirements. It was estimated that 10,000 tons will be hauled annually, and the only price to be charged for this service will be a per ton price. The Purchasing Department published a request for bids for the disposal services (described above) in the St. Petersburg Times on April 14, 2011 and on the City's website from April 7 through April 28, 2011. The City received five bids that were opened on April 28, 2011. The companies who submitted bids were; Ameri-Pride Tree Recycling, LLC of Clearwater, FL, Angelo's Recycled Materials of Largo, Florida, Consolidated Resource Recovery Inc., of Sarasota, FL, Sage Eco Solutions, Inc. of Riverview, FL , and Waste Management Inc. of Clearwater, FL. The lowest bid was submitted by Sage Eco Solutions, Inc. of Riverview, FL. In response to questions, Senior Accountant David Powers said Ameri-Pride was the third lowest bidder at $31.98 per ton; followed by Angelo’s Recycled Materials at $32.50 per ton. The second lowest bidder was Consolidated Resource at $29.35 per ton and is located in Sarasota, Florida. Solid Waste/General Services Director Earl Gloster said Ameri-Pride currently has a contract with the city for parks and recreation maintenance work. Solid Waste/General Services Assistant Director John Pittman said the staging facility is located in Wimauma, Hillsborough County. A concern was expressed that the bid was not awarded to a local vendor. 4. Public Utilities 4.1 Award a contract (Purchase Order) to Thatcher Chemical of Deland, FL in the amount of $619,746.76 for liquid Sodium Bisulfite Solution for wastewater treatment and water production, for a 1-year period with 2 additional annual extensions, and authorize the appropriate officials to execute the same. (consent) Work Session 2011-05-31 3 Liquid Sodium Bisulfite Solution is used at the City's three Wastewater Reclamation Facilities to dechlorinate treated effluent prior to discharge to surface waters in accordance with permitted levels as regulated by the Florida Department of Environmental Protection (FDEP). In addition, this product is used at the City's Reverse Osmosis Water Plant in the treatment of drinking water. In response to the request for proposal 18-11, four responses were received April 13, 2011, with J.B. Chemical representing the lowest responsive bidder at $0.14 per pound. However, J.B. Chemical withdrew their bid. Thatcher Chemical is the next lowest bidder at $0.1425 per pound. Thatcher Chemical has requested that the Force Majeure and Product Warrantee appendices originally provided with their bid be removed and substituted with the new versions provided with this agenda item document. Sufficient budget is available in the Water and Sewer Utility Fund, WPC operating cost center 0421-01351-551000-535-000 to fund $61,013.09 for Fiscal Year 2010/2011, cost of this contract and is planned in the budget requests to be brought forward for Fiscal Year 2011/2012 in the amount of $187,140.98, Fiscal Year 2012/2013 in the amount of $186,628.26 and for Fiscal Year 2013/2014 in the amount of $124,077.03; and in the Water Operating cost center 0421-02053- 551000-533-000-0000 to fund $6,647.34 for Fiscal Year 2010/2011, cost of this contract and is planned in the budget requests to be brought forward for Fiscal Year 2011/2012 in the amount of $20,388.90, Fiscal Year 2012/2013 in the amount of $20,333.04 and for Fiscal Year 2013/2014 in the amount of $13,518.12. 5. Engineering 5.1 Award a contract (purchase order) to Gregory Electric Co. Inc., Florida, to construct a reclaimed water system in Clearwater Harbor and decommission Lift Station 21 in the amount of $1,882,577.11, which is the lowest responsible bid received in accordance with plans and specifications; approve a work order to Engineer of Record, McKim and Creed Engineering Associates, Inc. in the amount of $123,470.00 to provide Construction, Engineering and Inspection (CEI) services and authorize the appropriate officials to execute same. (consent) The project scope includes installing approximately 20,000 linear feet (LF) of various sized reclaimed mains by horizontal directional drill and 6000 LF by open cut to provide reclaimed water to 450 reclaimed water services within the Clearwater Harbor neighborhood. Due to the location of a proposed reclaimed line being the same as a new gravity sewer line, the Lift Station (LS) 21 Decommissioning project is combined with the reclaimed project. The LS Decommissioning scope includes construction of 750 LF of gravity sewer main Work Session 2011-05-31 4 and four new manholes along Harbor Drive and removal of the existing LS 21 along with 715 LF of gravity pipe. Gregory Electric is the low bidder by approximately $200,000 and is 11% less than the final Engineer's estimate. The City received six bids for the project ranging from $1.88 to $2.34 million with the average being $2.17 million. McKim and Creed was the design consultant for this project and will provide CEI services upon approval of the work order. McKim and Creed has reviewed Gregory Electric's bid and has provided a recommendation of award. The construction phase is anticipated to take 10 months and is scheduled for completion by April 31, 2012. The Public Utilities Department shall own and maintain the proposed improvements included in this contract. The design, construction and CEI of Clearwater Harbor Reclaimed Water project is funded by Southwest Florida Water Management District (SWFWMD) up to 50% for a maximum amount not to exceed $1,102,025 as approved by City Council May 6, 2010.Sufficient budget and funding is available in the following projects: 2009 Water and Sewer Revenue Bond proceeds in 0376-96739, Reclaimed Water Distribution System, in the amount of $652,177.39, 0376-96665, Sanitary Sewer R & R in the amount of $177,285.90, and Utility R & R revenue in 0327-96665, Sanitary Sewer R & R in the amount of $274,648.89, and 0327- 96739, Reclaimed Water Distribution System in the amount of $10,728.27 for a total of $1,114,840.45 for these contracts. A mid-year amendment will increase budget only in Capital Improvement Program project 0315-96739, Reclaimed Water Distribution System of Other Governmental Revenues (337900) for SWFWMD's share of the project in the amount of $891,206.66 to provide total funding in the amount of 2,006,047.11 to fund the construction and CEI. 5.2 Award a contract (purchase order) for the Corporate Airplane Hangar II at Clearwater Airpark (08-0013-MA) to Caladesi Construction Company of Largo, Florida in the sum of $533,857.51, which is the lowest responsible bid, received in accordance with the plans and specifications and authorize the appropriate officials to execute same. (consent) On April 3, 2008, City Council approved a Joint Participation Agreement (JPA) with the State of Florida, Department of Transportation (FDOT), to design and construct a corporate hangar at Clearwater Airpark. Work Session 2011-05-31 5 The original agreement was for $405,431 at a reimbursable rate of 80% by FDOT and 20% in the amount of $101,357 as the City's share of costs. On May 5, 2011, City Council approved an increase for this grant in the amount of $100,000 and City funding in the amount of $25,000 and a second JPA in the amount of $60,000 with a City match of $15,000 to bring total funding for this project to $706,788 with 80% reimbursed through JPA and 20% from the City. This project will add a corporate hangar to allow aircraft currently utilizing the airpark, but in the open environment because of size, to rent covered space. This project is keeping with the approved Airpark Master Plan and has the support of the Airport Advisory Board. This project will start after the award and execution of the contract and scheduled to be completed within 180 days. Sufficient budget and revenue are available in the Capital Improvement Program (CIP) project 315-94854, Multi Plane Hangars to fund the construction contract. In response to questions, Airport Operations Manager Gordon Wills said the City received additional grant funds for the project prior to calculating total project costs. Remaining funds will be directed to other projects. The City’s 20% match is partially funded from a loan two years ago and from the Airpark’s retained earnings. 6. Legal 6.1 Adopt Ordinance 8251-11 on second reading, annexing certain real property whose post office address is 2419 Nursery Road, into the corporate limits of the city and redefining the boundary lines of the city to include said addition. 6.2 Adopt Ordinance 8264-11 on second reading, amending Code of Ordinances Appendix A, Schedule of Fees, Rates and Charges, Article XXV, Public Works Fees, Rates and Charges, Section (3)(c) Solid Waste Collection Rates; (3)(d) Recycling; and Section (5)(b) solid Waste Roll-Off Container or Waste Receptacle Service. 6.3 Adopt Ordinance 8266-11 on second reading, amending Code of Ordinances Appendix A, Article XXV Public Works Fees, Rates and Charges; Section (3)(a) Water Rates, Section (3)(b) Wastewater Collection Utility Rates, and Section (3)(f) Reclaimed Water Rates. 7. City Manager Verbal Reports 7.1 Update on status of the refunding of City of Clearwater Water and Sewer Work Session 2011-05-31 6 Revenue Bonds, Series 2002. (WSO) In November of 2010, the Council approved a sale resolution for not-to-exceed $50 million of Water and Sewer Revenue Refunding Bonds to refund all or part of the City's callable Water and Sewer Revenue Bonds, Series 2002. The refunding was approved contingent upon a minimum 4% net present value savings threshold, which is roughly equivalent to $2 million based on approximately $50 million of outstanding bonds. Interest rates moved against the City before the refunding could be executed and staff has been waiting for rates to move back in the City's favor since late 2010. Recently, interest rates have begun to improve and the net present value savings currently approximates the minimum 4% savings threshold per the approved bond sales resolution. However, given the proximity to the initial call date on the Series 2002 Bonds (12/01/2011), staff's plan is to execute a current refunding of the bonds in early September, rather than an advance refunding at the current time. A current refunding is preferable to an advance refunding due to the fact that an advance refunding would preclude us from doing another advance refunding on the refunding bonds until the initial call date, or approximately ten years. By waiting a matter of weeks, staff can save the advance refunding option with respect to the new bonds in hopes of refunding these bonds in the future, prior to the call date. If interest rates decrease significantly in the next few weeks, resulting in the refunding providing 5% net present value savings or greater, consistent with the City's debt management policy, the City will be poised to execute the advance refunding and would consider proceeding down that path. As always, there is also a chance that interest rates increase between now and pricing and, if this were to occur, the refunding may once again need to be placed on hold for the time being. Due to the period of time that has elapsed since Council approved the bond sales resolution in November 2010, the City will be requesting updated ratings from the three major ratings agencies prior to the refunding. At this point staff does not believe that a supplemental sale resolution will need to be approved by Council. However, should that change, staff will bring a supplemental sales resolution forward for Council approval at a subsequent meeting. Fiscal Year 2012 Budget Preparations Assistant City Manager Jill Silverboard requested direction regarding the need to hold a special work session after the City Manager releases the budget on June 30, 2011. Work Session 2011-05-31 7 There was consensus not to schedule a special work session but to move the July 18, 2011 work session from 9:00 a.m. to 8:30 a.m. 8. Closing Comments by Mayor – None. 9. Adjourn The meeting was adjourned at 10:20 a.m. Work Session 2011-05-31 8