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06/14/2011 CITY COUNCIL MEETING MINUTES CITY OF CLEARWATER June 14, Present: Mayor Frank Hibbard, Vice Mayor George N. Cretekos, Councilmember John Doran, Councilmember Paul Gibson, and Councilmember Bill Jonson. Also Present: William B. Horne II - City Manager, Jill S. Silverboard - Assistant City 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. 1. Call to Order - Mayor Frank Hibbard The meeting was called to order at 6:00 p.m. at City Hall. 2. Invocation - Pastor Dan Huntington of Pathways Community Church 3. Pledge of Allegiance - Mayor Frank Hibbard 4. Presentations - Given. 4.1 Clearwater Civitan Club Civic Award to Officer Sergio Fidelis 4.2 World Refugee Day Proclamation — June 18, 2011 4.3 St. Petersburg College Bachelor of Science in Public Policy and Administration - Jeffery Kronschnabl, Instructor 4.4 Let's Move! Proclamation 5. Approval of Minutes 5.1 Approve the minutes of the June 2, 2011 City Council Meeting as submitted in written summation by the City Clerk. Council 2011-06-14 1 Councilmember Bill Jonson moved to approve the minutes of the June 2, 2011 City Council Meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 6. Citizens to be Heard re Items Not on the Agenda Ron Patella — opposed paying the reclaimed water availability charge; supported extension of the gas line to his home. Public Hearings - Not before 6:00 PM 7. Administrative Public Hearings 7.1 Approve the Annexation, Initial Land Use Plan Designation of Residential Urban (RU) and Initial Zoning Atlas Designation of Medium Density Residential (MDR) District for 345 and 347 Elizabeth Avenue (consisting of North 45 feet of South 510 feet of East 120 feet of West 980 of Southwest of Northeast less 30 feet road on East in section 17, Township 29 South, Range 16 East); and pass Ordinances 8261-11, 8262-1 land 8263-11 on first reading. (ANX2011-04002) This voluntary annexation petition involves a 0.125-acre property consisting of one parcel of land occupied by an attached dwelling (duplex). It is located on the east side of Elizabeth Avenue approximately 405 feet north of Gulf-to-Bay Boulevard. The applicant is requesting this annexation in order to receive sanitary sewer and solid waste service from the City. The Planning and Development Department is requesting that the 0.032-acres of abutting Elizabeth Avenue right- of-way not currently within the city limits also be annexed. The property is contiguous to existing city boundaries to the north, south, east and west. It is proposed that the property be assigned a Future Land Use Plan designation of Residential Urban (RU) and a zoning category of Medium Density Residential (MDR). The Planning and Development Department determined that the proposed annexation is consistent with the provisions of Community Development Code Section 4-604.E as follows: The property currently receives water service from the City. The closest sanitary sewer line is located in the adjacent Elizabeth Avenue right-of-way. The applicant has paid the City's sewer impact and assessment fees and is aware of the additional costs to extend city sewer service to this property. Collection of solid waste will be provided by the City of Clearwater. The property is located within Police District III and service will be administered through the district headquarters located at 2851 N. McMullen Booth Road. Fire and emergency medical services will be provided to this property by Station 49 located at 565 Sky Harbor Drive. Council 2011-06-14 2 The City has adequate capacity to serve this property with sanitary sewer, solid waste, police, fire and EMS service. The proposed annexation will not have an adverse effect on public facilities and their levels of service; and The proposed annexation is consistent with and promotes the following objectives of the Clearwater Comprehensive Plan: Objective A.6.4: Due to the built-out character of the City of Clearwater, compact urban development within the urban service area shall be promoted through application of the Clearwater Community Development Code. Objective A.7.2 Diversify and expand the City's tax base through the annexation of a variety of land uses located within the Clearwater Planning Area. The proposed RU Future Land Use Plan category is consistent with the current Countywide Plan designation of this property. This designation primarily permits residential uses at a density of 7.5 units per acre. The proposed zoning district to be assigned to the property is the Medium Density Residential (MDR) District. The use of the subject property is consistent with the uses allowed in the District; however, it is nonconforming with regard to density and minimum lot dimension requirements. The proposed annexation is therefore consistent with the Countywide Plan, City's Comprehensive Plan and Community Development Code; and The property proposed for annexation is contiguous to existing city boundaries to the north, south, east and west; therefore the annexation is consistent with Florida Statutes Chapter 171.044. Councilmember John Doran moved to approve the Annexation, Initial Land Use Plan Designation of Residential Urban (RU) and Initial Zoning Atlas Designation of Medium Density Residential (MDR) District for 345 and 347 Elizabeth Avenue (consisting of North 45 feet of South 510 feet of East 120 feet of West 980 of Southwest of Northeast less 30 feet road on East in section 17, Township 29 South, Range 16 East). The motion was duly seconded and carried unanimously. Ordinance 8261-11 was presented and read by title only. Vice Mayor George N. Cretekos moved to pass Ordinance 8261-11 on first reading. The motion was duly seconded and upon roll call, the vote was- 'Ayes . Mayor Frank Hibbard, Vice Mayor George N. Cretekos, Councilmember John Doran, Councilmember Paul Gibson, and Councilmember Bill Jonson. Council 2011-06-14 3 "Nays": None. Ordinance 8262-11 was presented and read by title only. Councilmember Paul Gibson moved to pass Ordinance 8262-11 on first reading. The motion was duly seconded and upon roll call, the vote was: 'Ayes". Mayor Frank Hibbard, Vice Mayor George N. Cretekos, Councilmember John Doran, Councilmember Paul Gibson, and Councilmember Bill Jonson. "Nays": None. Ordinance 8263-11 was presented and read by title only. Councilmember Bill Jonson moved to pass Ordinance 8263-11 on first reading. The motion was duly seconded and upon roll call, the vote was: 'Ayes". Mayor Frank Hibbard, Vice Mayor George N. Cretekos, Councilmember John Doran, Councilmember Paul Gibson, and Councilmember Bill Jonson. "Nays": None. City Manager Reports 8. Other Items on City Manager Reports 8.1 Amend the City's fiscal year 2010/11 Operating and Capital Improvement Budgets at mid-year and pass Ordinances 8265-11 and 8267-11 on first reading. The fiscal year 2010/2011 Operating and Capital Improvement Budgets were adopted in September 2010 by Ordinances 8216-10 and 8217-10. Section 2.521 of the City's Code of Ordinances requires the City Manager to prepare a quarterly report detailing income, expenditure estimates, collections, the explanation of significant variances, as well as the financial status of all capital improvement projects. The memorandum and the accompanying report provide this information and outline the issues at mid-year that require amendment. Budget Director Tina Wilson said the mid-year budget review is based on activity during October 2010 through March 2011. General Fund revenues and expenditure amendments reflect a net increase of$1,094,626, primarily a result of net appropriation for the Clearwater Pass Maintenance Dredging project and retirement payouts. The estimated General Fund reserves at midyear are approximately $19.1 million, or 17.1% Council 2011-06-14 4 of the current year's General Fund budget, exceeding the city's reserve policy by $9.6 million. Midyear amendments to the Capital Improvement Fund reflect a net decrease of$429,533, primarily a result of reimbursing $1,622,925 of reserves that were advanced to the Downtown Streetscape Phase II project. The Special Program Fund reflects a net budget increase of$581,291. Councilmember John Doran moved to amend the City's fiscal year 2010/11 Operating and Capital Improvement Budgets at mid-year. The motion was duly seconded and carried unanimously. Ordinance 8265-11 was presented and read by title only. Vice Mayor George N. Cretekos moved to pass Ordinance 8265-11 on first reading. The motion was duly seconded and upon roll call, the vote was- 'Ayes . Mayor Frank Hibbard, Vice Mayor George N. Cretekos, Councilmember John Doran, Councilmember Paul Gibson, and Councilmember Bill Jonson. "Nays": None. Ordinance 8267-11 was presented and read by title only. Councilmember Paul Gibson moved to pass Ordinance 8267-11 on first reading. The motion was duly seconded and upon roll call, the vote was: 'Ayes". Mayor Frank Hibbard, Vice Mayor George N. Cretekos, Councilmember John Doran, Councilmember Paul Gibson, and Councilmember Bill Jonson. "Nays": None. 8.2 Reappoint Rick G. Stucker to a four-year term as a trustee of the Clearwater Firefighters Supplemental Trust Fund in accordance with Sec. 175.061 of the Florida State Statutes. The Clearwater Firefighters' Supplemental Trust Fund is the recipient of monies obtained by the State of Florida from insurance companies doing business within the community. These monies are required to be administered by a Board of Trustees whose composition must consist of two legal residents of the city appointed by the City Council; two city firefighters elected by the firefighters; and a fifth member chosen by a majority of the other four members and submitted to the City Council for appointment. The Board of Trustees is solely responsible for administration of the trust fund. The state law allows trustees to succeed Council 2011-06-14 5 themselves as board members. This legal resident, City Council appointed seat will become open July 1, 2011. Mr. Stucker is willing to serve another term. He is a city resident and a local business owner with an insurance background. Once approved, Mr. Stucker is to serve a new, four-year term as a trustee to the seat for the period of July 1, 2011 through June 30, 2015. Councilmember Bill Jonson moved to reappoint Rick G. Stucker to a four-year term as a trustee of the Clearwater Firefighters Supplemental Trust Fund in accordance with Sec. 175.061 of the Florida State Statutes. The motion was duly seconded and carried unanimously. 8.3 Approve a contract (Blanket Purchase Order) to Jet Age Fuel, Inc. of Clearwater, FL for an amount not to exceed $200,000 for the purchase of Low Sulfur Diesel Fuel for off-road equipment and emergency generators as per the City of Clearwater RFP 17-09 during the contract period July 1, 2011 through June 30, 2013 and authorize the appropriate officials to execute same. The fuel purchased under this contract will be used in all off road equipment and vehicles and stationary and mobile emergency standby generators. The price includes delivery to the various sites. This contract is for five years and staff is exercising the option for the 3rd and 4th year. This extension will leave one year on the contract. In response to questions, Solid Waste/General Services Assistant Director Rick Carnley said fuel prices in the last few months have increased slightly. It is anticipated the recent price per gallon drop will continue through the summer. Vice Mayor George N. Cretekos moved to approve a contract (Blanket Purchase Order) to Jet Age Fuel, Inc. of Clearwater, FL for an amount not to exceed $200,000 for the purchase of Low Sulfur Diesel Fuel for off-road equipment and emergency generators as per the City of Clearwater RFP 17-09 during the contract period July 1, 2011 through June 30, 2013 and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 8.4 Approve the first amendment to the Alligator Creek Watershed Management Plans Cooperative funding agreement with the Southwest Water Management District in the amount of$250,000; a Supplemental Work Order to Jones Edmunds, Engineer of Record (EOR) in the amount of$666,607 and authorize the appropriate officials to execute same. Council 2011-06-14 6 The work order for Phase 1 of the Alligator Creek Watershed Management Plan Update between Jones Edmunds and the City of Clearwater in the amount of $400,000 and the cooperative funding agreement with Southwest Florida Water Management District (SWFWMD) to fund $200,000 of Phase 1 were approved by Council on October 22, 2009. Phase I included development of digital topographic information and completion of a watershed evaluation. The watershed evaluation element included: (a) identification of existing watershed features; (b) information from implemented projects; (c) an inventory of hydraulic and hydrologic features; (d) a preliminary junction and a GIS database of reaches; and (d) a surface water resource evaluation. Phase I is nearing completion. Phase 11 will create a revised model and an updated watershed management plan. The model will reflect existing conditions of the watershed and the revised watershed plan will include projects to reduce flooding, increase water quality and improve natural systems. The revised model will be submitted to FEMA to update the Flood Insurance Rate Maps to reflect existing conditions' flooding risk. The supplemental work order to Jones Edmunds is for $666,607 for a total amount of$1,066,607. The amendment to the Cooperative Funding agreement with SWFWMD is an increase of grant funding in the amount of$250,000 for total reimbursement from the District in the amount of$450,000. A third quarter amendment will increase budget only in Capital Improvement Program (CIP) project 03 15-96173. Alligator Creek Watershed Projects by $250,000 of SWFWMD gram funding. Sufficient funding IS available in CIP 0315-96173, Alligator Creek Watershed Project in the amount of$416,607 to fund the remaining balance of the Supplemental Work Order. Councilmember Paul Gibson moved to approve the first amendment to the Alligator Creek Watershed Management Plans Cooperative funding agreement with the Southwest Water Management District in the amount of$250,000; a Supplemental Work Order to Jones Edmunds, Engineer of Record (EOR) in the amount of$666,607 and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 8.5 Approve Architect of Record Contracts with Fowler Associates Architects, Council 2011-06-14 7 Harvard Jolly Architecture, Klar and Klar Architects, Long and Associates, Plisko Architecture and Wannenacher Jensen Architects for a period of three years commencing July 26, 2011 and authorize the appropriate officials to execute same. On March 1, 2011, Requests for Qualifications (RFQ 14-11) were solicited from area firms to act as Architects of Record for the City. Twenty-two responses were received. Upon review of the responses, it was decided to retain four firms that are currently performing as Architects of Record for the City including Fowler Associates Architects, Harvard Jolly Architecture, Plisko Architecture and Wannenacher Jensen Architects. A short list of four additional firms was chosen for oral presentations to the selection committee consisting of representatives from Parks and Recreation, Solid Waste/General Services and Engineering. From this group of four, two additional firms were added to the list including Klar and Klar Architects and Long and Associates. The six recommended firms were selected based upon technical ability, availability to expeditiously complete assignments, management and staff ability, prior municipal experience including permitting and Clearwater business and community involvement. Subject to approval in accordance with city purchasing policy, these Architects of Record could be used by any city department for appropriate projects. Councilmember Bill Jonson moved to approve Architect of Record Contracts with Fowler Associates Architects, Harvard Jolly Architecture, Klar and Klar Architects, Long and Associates, Plisko Architecture and Wannenacher Jensen Architects for a period of three years commencing July 26, 2011 and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 8.6 Award contracts (purchase orders) to Siemens Industry Inc., of Tampa, FL, in the amount of$9,861,759.00, for design, construction, inspection and construction management for the Public Utilities Performance Based Contract Project (City Project 08-0048-UT); $231,707.00 for Performance Assurance Services Program during the term of the main contract; $2,909,619.00 for Maintenance Services Program for a ten- year period and authorize the appropriate officials to execute same. The City of Clearwater (City) solicited responses from prequalified Energy Services Companies (ESCO) in December of 2008 with the intent of selecting a firm to perform a Performance Based Contract where the City of Clearwater realizes energy savings through implementation of capital improvements projects at its existing Water Reclamation Facilities (WRF). Siemens was selected by a committee of city staff based upon their submittals of qualifications and presentation specific to the City. A preliminary agreement was executed that allowed for a formal audit of the City's three WRF's, (Marshall Council 2011-06-14 8 Street, Northeast and East) that determined those projects that were viable for inclusion in the resulting proposed contract. The cost of the audit ($94,386) is included in the contract. The scope of work in the contract includes funding the remaining design efforts, permitting and construction of nine separate projects including; lighting improvements at three plants, mixer replacements at two plants, dewatering improvements at two plants, odor control at Northeast and power generation using Methane capture at the Northeast plant. All projects result in various levels of savings in terms of energy, chemical costs and/or operational costs. The savings less those costs to be incurred for measurement and verification, (performance assurance) and technical service packages have been incorporated into the city's rate study and operational budget. If the goals identified in the agreement are not met, Siemens covers the shortfall. If the goals identified are exceeded, the City retains the financial benefit. The design and construction costs are to be paid in year one in accordance with the payment schedule in Exhibit B of the contract, with the performance assurance costs paid on an annual basis over the fifteen-year term of the Performance Contract. Those annual costs start at $12,458 and escalate to $18,844 over fifteen years for the total cost of$231,707. The Maintenance Services Program costs are to be paid over ten years starting at $253,197 and escalating to $330,365 annually for a total of$2,909,619. The services program is detailed in Exhibit A of the contract and provides for specific maintenance of the power generator, fuel-gas conditioning system (methane) and the new Fats, Oils and Grease system. This program is not contractually obligated for renewal after year one if the City deems the costs to be in excess of the benefits. The performance assurance costs and Maintenance Services Program costs will be included in the Public Utilities O&M budgets for the corresponding fiscal years. The project total includes $2,959,683 worth of Owner Direct Purchased equipment resulting in a tax savings valued at $178,030.98. Project design and construction duration is expected to be 15 months with completion by October of 2012. The term of the contract is 15 years over which time the savings realized by the improvements are to exceed the costs including debt service every year making the entire project revenue neutral. In accordance with the Interlocal agreement between the City of Clearwater and the City of Safety Harbor for Sewer Treatment Services, Safety Harbor will share in costs incurred for improvements made at the Northeast Water Reclamation Facility. Those costs are determined per the interlocal agreement on a pro rata share related to capacity reserved for treatment. For this project, the share of costs that will be reimbursed by Safety Harbor totals $2,008,419.00. Council 2011-06-14 9 Councilmember John Doran moved to award contracts (purchase orders) to Siemens Industry Inc., of Tampa, FL, in the amount of$9,861,759.00, for design, construction, inspection and construction management for the Public Utilities Performance Based Contract Project (City Project 08-0048-UT); $231,707.00 for Performance Assurance Services Program during the term of the main contract; $2,909,619.00 for Maintenance Services Program for a ten- year period and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 8.7 Award a contract to Young Communication Co., Inc of Melbourne, FL in the amount of$1,160,489.00 for construction of the Skycrest Reclaimed Water Expansion (project number 10-0040-UT) and Chautauqua Lake Estates Reclaimed Water (Project number 10-0041-UT), which is the lowest responsible bid received in accordance with the plans and specifications for these projects; approve a supplemental work order to URS Corp in the amount of$18,129.00 to provide engineering services during construction for these projects; and authorize the appropriate officials to execute same. This agenda item is for the construction of new reclaimed water transmission and distribution mains for the expansion of the original Skycrest Reclaimed Water Project and the Chautauqua/Coachman Ridge Reclaimed Water Project. Due to low construction costs the City is experiencing in constructing/installing reclaimed water (RCW) pipelines in the City, two Amendments to SWFWMD (Southwest Florida Water Management District) Cooperative Funding Agreements were approved to expand the areas from the original scopes. The First Amendment to Skycrest Project was approved by Council in November 2010 for the Skycrest Expansion, and the First Amendment to Chautauqua/Coachman Ridge RCW was approved by Council in December 2010 to include work for the Chautauqua Lake Estates. The goal of this and all other reclaimed water projects is to reduce the amount of potable water and groundwater being used for irrigation and other non-potable uses. In addition, expansion of the Reclaimed Water Distribution System in accordance with Reclaimed Water Master Plan brings the City of Clearwater closer to achieving zero-discharge of effluent to Tampa Bay and adjacent surface waters. It is anticipated that construction will be accomplished in 270 days and be completed by the end of May 2012. URS Corporation, the engineering design consultant for this project and an Engineer-of-Record for the City of Clearwater, was responsible for the design of Council 2011-06-14 10 the improvements. The final engineering estimate was $1,700,000. There were 11 bids and Young Communication's bid was the lowest in the total amount of $1,160,489.00 for the two projects where the subtotal for Skycrest Expansion was $887,958.50 and the subtotal for the Chautauqua Lake Estates was $272,530.50. After comparing the bids, URS Corp. recommendation is to award the construction of the projects to Young Communication Co., Inc., and city staff concurs. The City has existing Work Orders for the two projects with URS to administer the project and to provide field inspections. However, the Work Orders did not include attendance of the pre-construction meeting, shop-drawing review, and responses to Request for Information. URS will provide these services in the amount of $18,129 for the two projects with the supplemental work order. The City of Clearwater's Public Utilities Department Water Division is responsible for owning, operating and maintaining the reclaimed water system. Sufficient budget and funding is available in the following projects: Utility R and R revenue in 0327-96739, Reclaimed Water Distribution System in the amount of $349,730.54 and Water revenue in 0315-96739, Reclaimed Water Distribution System in the amount of$239,578.46 for a total of$589,309.00 for these contracts. A third quarter amendment will increase budget 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 $589,309.00 to provide total funding in the amount of$1,178,618.00 to fund the construction and CEI. Vice Mayor George N. Cretekos moved to award a contract to Young Communication Co., Inc of Melbourne, FL in the amount of$1,160,489.00 for construction of the Skycrest Reclaimed Water Expansion (project number 10-0040-UT) and Chautauqua Lake Estates Reclaimed Water (Project number 10-0041-UT), which is the lowest responsible bid received in accordance with the plans and specifications for these projects; approve a supplemental work order to URS Corp in the amount of$18,129.00 to provide engineering services during construction for these projects; and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 8.8 Approve a work order to Tetra Tech, Inc. of Tampa, FL in the amount of $139,800.00 for engineering services associated with the Water Treatment Plant 3 Arsenic Treatment System Project (11-00xx-UT), and authorize the appropriate officials to execute same. Council 2011-06-14 11 This agenda item provides for engineering and design services for the construction of new treatment facilities to be located at the city's existing Water Treatment Plant 3 at 2775 State Road 580. The new treatment facilities will consist of pressurized filter vessels that remove contaminants from the water prior to disinfection and distribution into the city's drinking water system. The City owns and operates a wellfield that is the local source of supply for potable water production. The remainder of the water supply that is necessary to meet the additional demand is met by the purchase of imported water from Pinellas County. The City of Clearwater Water Supply System Master Plan last updated in 2008 recommends that the City actively work to maximize local production capabilities, specifically in those ways that are more cost effective than the option of purchasing water. While the City utilizes reverse osmosis treatment at Water Plant 1 and is currently under design to build a brackish Reverse Osmosis treatment facilities at Water Plant 2, there is currently no treatment at Water Plant 3. Construction of the proposed filters will protect the City's investment in the plant and the wellfield allowing for a longer useful life and increase the City's ability to continue meeting water quality standards for its drinking water. The design phase is anticipated to be complete by December 2011, with the construction phase scheduled for completion by June 2012. Tetra Tech is one of the City's Engineers-of-record, and this work order was negotiated in accordance with the Consultants Competitive Negotiations Act. A third quarter amendment will establish Capital Improvement Program, 0327- 96775, Arsenic Treatment WTP 3, and transfer $139,800.00, Utility R and R revenue from 0327-96741, System R and R Capitalized to fund this work order. Councilmember Paul Gibson moved to approve a work order to Tetra Tech, Inc. of Tampa, FL in the amount of$139,800.00 for engineering services associated with the Water Treatment Plant 3 Arsenic Treatment System Project (11-00xx-UT), and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 8.9 Support the Florida Department of Environmental Protections petition to U.S. Environmental Protection Agency to rescind Numeric Nutrient Criteria in Florida and adopt Resolution 11-16. Council 2011-06-14 12 On January 14, 2009, the United States Environmental Protection Agency (EPA) formally determined that numeric nutrient criteria (NNC) should be established for the State of Florida on an expedited schedule. Since the Florida Department of Environmental Protection (FDEP) has an aggressive program in place and progressively working toward guidelines that are more stringent where necessary, the FDEP petitioned the EPA to respond by May 22, 2011 on relieving Florida from this federal mandate. Significant cost, estimated in the millions of dollars, will be involved to bring nitrogen discharge limits for the wastewater and stormwater treatment systems to EPA's newest standards. This resolution supports the FDEP's petition to EPA to rescind numeric nutrient criteria in Florida at this time. This Resolution is Clearwater's first step in supporting the FDEP in a request for relief. City staff, as well as other local municipalities, will attend Public Workshops held by the FDEP scheduled for June in Tallahassee and the Orlando area. There are no costs associated with Resolution 11-16. In response to a question, the City Clerk said EPA reviewed FDEP's petition and has decided not to act on the petition until it has thoroughly reviewed FDEP's proposed NNC standards. EPA will delay implementation of NNC standards in Florida if FDEP continues to make progress in developing NNC standards. It was suggested that Resolution 11-16 be amended to address EPA's reaction to FDEP petition. Councilmember Bill Jonson moved to continue Item 8.9 to July 21, 2011. The motion was duly seconded and carried unanimously. 8.10 Provide direction regarding short-term rentals in the High Density Residential (HDR) zoning district. The issue of short-term rentals occurring in attached dwellings located in the High Density Residential (HDR) zoning district has surfaced. Certain condominium association documents allow the short-term rental of units within these properties and historically the properties have been rented. The City's ordinances do not permit the rental of such properties for less than 30 days and the association documents allow rental periods of 14 days. The Planning and Development Department, in conjunction with the City Attorney's office, has identified several options for Council's consideration: Council 2011-06-14 13 Determine if individual units should be grandfathered by using the Council Policy established for determining nonconformities in the single-family districts. Under this option, if the use is discontinued or abandoned for a period of six consecutive months, it may not be reestablished (Code Section 6-103.D). Require buildings to submit an application pursuant to the Community Development Code to allow a certain number of units (10) to be rented at any one time as accessory overnight accommodations (Code Section 2-5035 and 2- 504. C). It should be noted that the staff report that accompanied Ordinance 7105-03 that further clarified the prohibition of short-term rentals identified this as an option for the multi-family zoning districts. Amend the Community Development Code to allow properties constructed prior to a certain time to be rented on a short-term basis provided condominium documents allowed such short-term rentals at that time. Request a declaratory judgment from Circuit Court as to which if any properties or units in the HDR zoning district area entitled to short-term rental use. Enforcement is to occur on any units determined not to be lawfully rented on a short-term basis. Councilmember Cretekos declared a conflict of interest and departed Chambers. The City Attorney opined that changes to the current Code would conflict with recent State legislation that prohibits municipalities from regulating resort-condominium rentals. The legislation grandfathered jurisdictions with ordinances set in place prior to June 1, 2011. Any change to the city's current Code may jeopardize the city's grandfathering provision regarding short-term rentals. Staff could determine if condominium units meet grandfather requirements on a unit-by-unit basis. Regarding a 10-unit limit per complex, it appears each complex has more than 10 units rented for short-terms at the same time. In response to a question, Planning and Development Director Michael Delk said condominium documents for Lighthouse Towers and both Crescent Beach Club buildings allow short-term rentals; more than 90 units may be rented short-term. Discussion ensued with concerns expressed that changing the Code would put short- term rental restrictions on north Clearwater Beach at risk. In response to a suggestion Council 2011-06-14 14 that requesting a declaratory judgment would clarify restrictions, the City Attorney said it has not been clarified if the City or unit owners would be the Plaintiff. Five residents spoke with one recommending that the Code be amended to allow short- term rentals building-wide, two supporting option one, one opposing rentals to transients, and one expressing concern that property owners based their decisions to purchase on condominium documents and depend on rental income to help pay for the investment. Assistant City Attorney Leslie Dougall-Sides said the most recent short-term rental ordinance was adopted in Spring 2003. She suggested comparing short-term rental restrictions in the 1980 Code with condominium documents for complexes constructed afterwards. Mr. Delk said Code enforcement is triggered by complaints; the City recently received its first complaint regarding a short-term rental on Sand Key. It was stated the MLS (Multiple Listing Service) includes information on condominium documents but does not indicate if they conform to local laws. The City Attorney said the City does not review condominium documents. Concern was expressed that personal property rights may be affected and visitors with short-term rental contracts should be protected. Staff was directed to protect existing short-term rental restrictions; to discuss this issue with Lighthouse Towers and Crescent Beach Club I and II communities, to compare short-term rental restrictions in the 1980 Code with related condominium documents, to report on recent State legislation regarding restrictions on condominium owners' ability to amend condominium documents, and to postpone enforcement of short-term rental restrictions on Sand Key until the issue is resolved. The City Council recessed from 8:01 to 8:11 p.m. Councilmember Cretekos returned to Chambers. 8.11 Award a contract to Pillar Construction Group, LLC of Clermont, Florida, Bid 08- 0020-PR, for the sum of$654,298.70 (including Alternates 3 and 4 and 10% contingency), for renovations of the North Greenwood Recreation and Aquatics Center and North Greenwood Library, to be funded from CIP 315-93621, and authorize the appropriate officials to execute same. On November 16, 2010, the City Council approved changes to the Penny for Pinellas III project list including funding for the renovations to the North Greenwood Recreation and Aquatics Center (NGRAC) and Library located on the southwest and southeast corners of Martin Luther King Jr. Avenue and Palmetto Street. Council 2011-06-14 15 The scope of the project is to renovate the current NGRAC by enclosing two exterior programming spaces as well as adding a catering kitchen and provide interior renovations to accommodate partner agencies (i.e., North Greenwood Family Center and the North Greenwood Boys and Girls Club). This project will allow for additional revenue from partner agencies and an annual operational savings for a combined savings of approximately $200,000 per year. The City will be the operator and facilitator of the building with the programming aspects handled by the partner agencies. (Note - Agreements with these agencies will be forthcoming.) This contract, with Pillar Construction Group, will provide for the renovations of NGRAC as well as Alternate 3, which is the renovations of the North Greenwood Library, primarily the computer lab, and Alternate 4, which is the construction of a new overhead canopy at NGRAC from the main building entrance to the driveway. The contract is under the projected budget for this project. Furnishing for the building and kitchen will be provided under separate contract. Completion is scheduled for November 2011. Councilmember John Doran moved to award a contract to Pillar Construction Group, LLC of Clermont, Florida, Bid 08-0020-PR, for the sum of$654,298.70 (including Alternates 3 and 4 and 10% contingency), for renovations of the North Greenwood Recreation and Aquatics Center and North Greenwood Library, to be funded from CIP 315-93621, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 8.12 Appoint Daryl W. Schuster to the Sister Cities Advisory Board, as the Clearwater Sister Cities, Inc. representative, with term to expire December 31, 2015. It was suggested the term be amended to expire July 31, 2015. Vice Mayor George N. Cretekos moved to appoint Daryl W. Schuster to the Sister Cities Advisory Board, as the Clearwater Sister Cities, Inc. representative, with term to expire July 31, 2015. The motion was duly seconded and carried unanimously. 8.13 Approve a Contract For Purchase of Real Property between The Times Publishing Company, a Florida Corporation, St. Petersburg, Florida and the City of Clearwater (City), for the City to purchase real property described as Magnolia Park Subdivision, part of lot 3 lying East of Railroad, all of Lots 4,5,6 and 8, plus the East 27 feet of lots 3 and 8, Block 11; together with Lot 3 less the West 4 feet, all of Lots 5,67, and 8 less the West 4 feet, Block 8, according to the plat thereof as recorded in Plat Book 1, Page 70, Public Records of Pinellas County, for the sum of$2,200,000; authorize the appropriate officials to execute same, together with all documentation required to effect closing; approve the appropriation of$2,500,000 from Penny for Pinellas funds for subject property Council 2011-06-14 16 acquisition, closing and site demolition expenses; and approve the terms and conditions of the related temporary occupancy lease between the City and The Times Publishing Company, and authorize the appropriate officials to execute same. The subject property is located at 710 Court Street in the Downtown District of Clearwater. The parcel is approximately 83,800 sq. ft. and is comprised of a single tenant office building with an adjacent parking lot. This property presents an opportunity for the City to acquire a strategically located parcel considered for a number of years as well suited for transit and/or governmental uses. Acquisition discussions between the parties have taken place over a period of years, but have not led to agreement. Now, however, due to current conditions in the real estate market, the City has been able to reach a mutually acceptable purchase arrangement with The Times Publishing Company to allow acquisition within designated funds in Penny for Pinellas. The purchase price is close to the mid-point between two independent appraisals performed on the property and reflects a $26.29/sq. ft. blended valuation (structure and parking lot). Because The Times Publishing Company has the desire and need to find a relocation site for the Clearwater Bureau and an acceptable alternative has not yet been found, a companion lease would allow The Times Publishing Company to lease back the property for the statutorily-required $1 per annum minimum, triple net, with the City held completely harmless, for up to one year. The economic value of the leasehold, as reflected in the appraisal, was factored into the final purchase price. A third quarter budget amendment will establish a capital project in the amount of $2.5 million to fund the purchase. Michael Foley St. Pete Times representative said the St. Pete Times intend to remain in Clearwater. In response to a question, the City Attorney said the contract will be recorded in the Public Records of Pinellas County. Councilmember Paul Gibson moved to approve a Contract For Purchase of Real Property between The Times Publishing Company, a Florida Corporation, St. Petersburg, Florida and the City of Clearwater (City), for the City to purchase real Council 2011-06-14 17 property described as Magnolia Park Subdivision, part of lot 3 lying East of Railroad, all of Lots 4,5,6 and 8, plus the East 27 feet of lots 3 and 8, Block 11; together with Lot 3 less the West 4 feet, all of Lots 5,67, and 8 less the West 4 feet, Block 8, according to the plat thereof as recorded in Plat Book 1, Page 70, Public Records of Pinellas County, for the sum of$2,200,000; authorize the appropriate officials to execute same, together with all documentation required to effect closing; approve the appropriation of $2,500,000 from Penny for Pinellas funds for subject property acquisition, closing and site demolition expenses; and approve the terms and conditions of the related temporary occupancy lease between the City and The Times Publishing Company, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 8.14 Approve a Contract For Purchase of Real Property between Court Street Enterprises, Inc., a Florida Corporation, and the City of Clearwater for the City to purchase from Court Street Enterprises, Inc., real property described as a portion of Lots 2, 3, 8 and 9, Block 11, Magnolia Park, as recorded in Plat Book 3, Page 43, of the Public Records of Pinellas County, Florida for the sum of $525,000 and authorize the appropriate officials to execute same, together with all documentation required to effect closing; approve the appropriation of $575,000 from Penny for Pinellas funds for subject property acquisition, closing and site demolition expenses; and approve the terms and conditions of the related temporary occupancy lease between the City and David Allbritton, and authorize the appropriate officials to execute same. The subject property is located at 704 Court Street in the Downtown District of Clearwater. The parcel is approximately 19,368 sq. ft. Acquisition of this property, immediately adjoining The Times Publishing Company acquisition, would provide the City with a consolidated parcel in excess of 100,000 sq. ft. and enhance the functional and/or redevelopment value of the assemblage for the City, and allowing for the possibility of use for the downtown intermodal facility. The purchase price is within the range of the two independent appraisals performed on the property for redevelopment assembly value and reflects a $27.10 sq. ft. appraised value. Because a member of the ownership entity has the desire and need to find a relocation site for business operations currently located in the subject structure and an acceptable alternative has not yet been found, a companion lease would allow David Allbritton, a principal in Court Street Enterprises, Inc. to lease back the property for the statutorily required $1 per annum minimum, triple net, with the City held completely harmless, for up to one year. Council 2011-06-14 18 A third quarter budget amendment will establish a capital project in the amount of $575,000 to fund this purchase. Councilmember Bill Jonson moved to approve a Contract For Purchase of Real Property between Court Street Enterprises, Inc., a Florida Corporation, and the City of Clearwater for the City to purchase from Court Street Enterprises, Inc., real property described as a portion of Lots 2, 3, 8 and 9, Block 11, Magnolia Park, as recorded in Plat Book 3, Page 43, of the Public Records of Pinellas County, Florida for the sum of $525,000 and authorize the appropriate officials to execute same, together with all documentation required to effect closing; approve the appropriation of$575,000 from Penny for Pinellas funds for subject property acquisition, closing and site demolition expenses; and approve the terms and conditions of the related temporary occupancy lease between the City and David Allbritton, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. Attorney Client Session The City Attorney requested an Attorney Client Session regarding Pickles Plus Too, Inc v. City of Clearwater, a Municipal Corporation of the State of Florida, Case No. 11- 001450-CI-008 for July 18, 2011. The session must commence at an open meeting. It was suggested the meeting be scheduled at 7:30 a.m., prior to the work session at 8:30 a.m. There was consensus to have the Attorney Client Session on July 18, 2011 at 7:30 a.m. Miscellaneous Reports and Items 9. Other Council Action 9.1 Update on County Digital Billboard Ordinance Councilmember Bill Jonson Councilmember Bill Jonson said Pinellas County was considering dropping the 20-year digital sign sunset provision and shortening the ultimate removal time from the originally proposed ordinance. At the May 24, 2011 Pinellas County Board of County Commissioners meeting, the billboard companies proposed using the 26 billboards scheduled for removal in 2012 for the accelerated incentive swap. 9.2 Election Date - Mayor Hibbard Council 2011-06-14 19 Mayor Frank Hibbard expressed concern regarding pursuing pension changes next year with three councilmember seats up for election and requested consideration be given to move the election date to November 2012. Collective bargaining is a complicated issue, requiring a substantial amount of time to digest and understand. He supported having the races of the elected officials on the same ballot as the pension referendum questions. Human Resources Director Joseph Roseto said the city is currently in collective bargaining with two of the four bargaining units. Contracts with the International Association of Fire Fighters and the Fraternal Order of Police Supervisors contain language that obligates them to bargain pension through mutual agreement. To date, neither group has chosen to exercise that option. Mr. Roseto said staff has been directed to find ways to mitigate long-term pension costs. The bargaining units are now being challenged with conceding for things to be taken back from their benefits without any reciprocation from the City. The impasse process would begin if concessions cannot be reached. Mr. Roseto said pension changes would be ready for a November 2012 ballot. Discussion ensued with concerns expressed regarding voter drop off if the municipal general election is held in conjunction with the presidential race and impact it would have on campaign fundraising and media attention. It was stated that the St. Pete Times now has a reporter dedicated to city issues, ensuring media coverage for municipal elections. In response to questions, the City Clerk said if the municipal general election is held in conjunction with the presidential preference primary, the qualifying period will begin November 4, 2011 and end November 18, 2011. August 4, 2011 is the first day interested candidates may obtain the Appointment of Campaign Treasurer/Designation of Campaign Depository forms. The State of Florida has until October 1, 2011 to change the presidential preference primary election date, currently scheduled for January 31, 2012. The City Attorney said the City may change the general election date to coincide with state, county or federal elections by ordinance. Councilmember John Doran moved to draft an ordinance moving the municipal election to the November general election, beginning November 2012. The motion was duly seconded. Discussion ensued. In response to a question, the City Attorney said changing the municipal election back to a standalone election would require a referendum. Staff was directed to request input from the Charter Review Committee regarding changing the election date. Council 2011-06-14 20 Upon the vote being taken, Mayar Frank Hibbard and Cauncilmembers John Doran and Paul Gibson voted "Aye"; Vice Mayor Gearge N. Cretekos and Cauncilmember Bill Jonson voted "Nay". Motion carried. 10. Closinq Comments bv Mayor Mayor Frank Hibbard reviewed recent and upcoming events and offered candolences to survivors of AI Galbraith and Helen Kerwin. 11. Ad'_ Iourn The meeting was adjourned at 9:18 p.m. Attest � � Mayar City of Clearwater I.� II/���//��i�"/�G��7,�• `� - _ ; ��d/li� , �4 . . , ;; ,. Counci12011-06-14 21