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09/01/2011 CITY COUNCIL MEETING MINUTES CITY OF CLEARWATER September 1, 2011 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 Nicole Sprague — Official Records and Legislative Services Coordinator. 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- Vice Mayor George N. Cretekos 3. Pledge of Allegiance — Mayor Frank Hibbard 4. Presentations — Given. 4.1 9/11 Remembrance Proclamation — Clearwater Fire Chief Robert Weiss and Clearwater Police Deputy Chief Sandra Wilson 4.2 Sickle Cell Awareness Month Proclamation —Anthony Hinson, Sickle Cell Disease Association of Upper Pinellas/Pasco/Hernando Counties, Outreach Coordinator 4.3 No item 5. Approval of Minutes 5.1 Approve the minutes of the August 18, 2011 City Council Meeting as submitted in written summation by the City Clerk. Council 2011-09-01 1 Councilmember Bill Jonson moved to approve the minutes of the August 18, 2011 City Council Meeting as submitted by the City Clerk. The motion was duly seconded and carried unanimously. 6. Citizens to be Heard re Items Not on the Agenda - None. Public Hearings - Not before 6:00 PM 7. Second Readings - Public Hearing 7.1 Adopt Ordinance 8270-11 on second reading, annexing certain real property whose post office addresses are 1842 and 1849 Diane Drive; 1727 and 1771 El Trinidad Drive; 1717, 1718, 1736, and 1741 Evans Drive; 1728, 1736 and 1746 Grove Drive; 1705, 1712, 1716, and 1746 Lucas Drive; 1813 and 1837 Marilyn Drive; 1818 and 1837 Skyland Drive; 2738 Terrace Drive; 1716, 1733, 1741, 1749, and 1754 Thomas Drive; together with all right of way of El Trinidad Drive East, within Diane Heights Replat Subdivision; all right of way of Morningside Drive, Winwood Drive and El Trinidad Drive East within Winwood Subdivision; all right of way of Marilyn Drive abutting Lots 2 through 6, Block K all right of way of Skvland Drive abutting Lot 3 through the North 16 feet of Lot 8, Block I; all right of way of Diane Drive abutting Lot 3, Block J through Lot 14, Block I and Lots 9 through 11, Block J; all right of way of Morningside Drive abutting Lot 11, Block J; intersection of Morningside Drive and Diane Drive in Carlton Terrace First Addition; all right of way of El Trinidad Drive East abutting Lots 1 through 7, Block 1; and abutting Lots 11 through 18, Block 1; all right of way of Terrace Drive (previously known as El Trinidad Drive North) abutting Lot 15, Block 2 in Virginia Grove Terrace; all right of way of Evans Drive abutting Lots 20 through 30, Block 6 in Virginia Grove Terrace Fourth Addition; all right of way of Grove Drive abutting Lot 27, Block Z and abutting Lot 6 through Lot 8, Block 4; and abutting Lot 10, Block 4, and abutting Lots 12 through 15, Block 4; all right of way of Terrace Drive as shown on the Subdivision Plat in Virginia Grove Terrace First Addition; all right of way of Lucas Drive abutting Lot 1, Block 6 and abutting Lot 29, Block 5, and abutting Lots 4 through 12, Block 6 in Virginia Grove Terrace Third Addition; all right of way of Thomas Drive abutting Lots 16 through 18, Lots 20 through 25, and Lot 27, Block 4; and abutting Lot 5 Block 5; and all right of way of Terrace Drive, abutting Lots 7 through 10, Block 3 in Virginia Grove Terrace Second Addition; into the corporate limits of the city and redefining the boundary lines of the city to include said addition. Ordinance 8270-11 was presented and read by title only. Vice Mayor George N. Cretekos moved to adopt Ordinance 8270-11 on second reading and final reading. The motion was duly seconded and upon roll call, the vote was: 'Ayes". Mayor Frank Hibbard, Vice Mayor George N. Cretekos, Councilmember Council 2011-09-01 2 John Doran, Councilmember Paul Gibson, and Councilmember Bill Jonson. "Nays": None. 7.2 Adopt Ordinance 8271-11 on second reading amending the future land use element of the Comprehensive plan of the city to designate the land use for certain real property whose post office addresses are 1842 and 1849 Diane Drive; 1727 and 1771 El Trinidad Drive; 1717, 1718, 1736, and 1741 Evans Drive; 1728, 1736 and 1746 Grove Drive; 1705, 1712, 1716, and 1746 Lucas Drive; 1813 and 1837 Marilyn Drive; 1818 and 1837 Skyland Drive; 2738 Terrace Drive; 1716, 1733, 1741, 1749, and 1754 Thomas Drive; together with all right of way of El Trinidad Drive East, within Diane Heights Replat Subdivision; all right of way of Morningside Drive, Winwood Drive and El Trinidad Drive East within Winwood Subdivision; all right of way of Marilyn Drive abutting Lots 2 through 6, Block K all right of way of Skvland Drive abutting Lot 3 through the North 16 feet of Lot 8, Block I; all right of way of Diane Drive abutting Lot 3, Block J through Lot 14, Block I and Lots 9 through 11, Block J; all right of way of Morningside Drive abutting Lot 11, Block J; intersection of Morningside Drive and Diane Drive in Carlton Terrace First Addition; all right of way of El Trinidad Drive East abutting Lots 1 through 7, Block 1; and abutting Lots 11 through 18, Block 1; all right of way of Terrace Drive (previously known as El Trinidad Drive North) abutting Lot 15, Block 2 in Virginia Grove Terrace; all right of way of Evans Drive abutting Lots 20 through 30, Block 6 in Virginia Grove Terrace Fourth Addition; all right of way of Grove Drive abutting Lot 27, Block Z and abutting Lot 6 through Lot 8, Block 4; and abutting Lot 10, Block 4, and abutting Lots 12 through 15, Block 4; all right of way of Terrace Drive as shown on the Subdivision Plat in Virginia Grove Terrace First Addition; all right of way of Lucas Drive abutting Lot 1, Block 6 and abutting Lot 29, Block 5, and abutting Lots 4 through 12, Block 6 in Virginia Grove Terrace Third Addition; all right of way of Thomas Drive abutting Lots 16 through 18, Lots 20 through 25, and Lot 27, Block 4; and abutting Lot 5 Block 5; and all right of way of Terrace Drive, abutting Lots 7 through 10, Block 3 in Virginia Grove Terrace Second Addition; upon annexation into the City of Clearwater, as Residential Low (RL) and Drainage Feature Overlay. Ordinance 8271-11 was presented and read by title only. Councilmember Paul Gibson moved to adopt Ordinance 8271-11 on second reading and final 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 2011-09-01 3 "Nays": None. 7.3 Adopt Ordinance 8272-11 on second reading, amending the Zoning Atlas of the city by zoning certain real property whose post office addresses are 1842 and 1849 Diane Drive; 1727 and 1771 El Trinidad Drive; 1717, 1718, 1736, and 1741 Evans Drive; 1728, 1736 and 1746 Grove Drive; 1705, 1712, 1716, and 1746 Lucas Drive; 1813 and 1837 Marilyn Drive; 1818 and 1837 Skyland Drive; 2738 Terrace Drive; 1716, 1733, 1741, 1749, and 1754 Thomas Drive; together with all right of way of El Trinidad Drive East, within Diane Heights Replat Subdivision; all right of way of Morningside Drive, Winwood Drive and El Trinidad Drive East within Winwood Subdivision; all right of way of Marilyn Drive abutting Lots 2 through 6, Block K all right of way of Skvland Drive abutting Lot 3 through the North 16 feet of Lot 8, Block I; all right of way of Diane Drive abutting Lot 3, Block J through Lot 14, Block I and Lots 9 through 11, Block J; all right of way of Morningside Drive abutting Lot 11, Block J; intersection of Morningside Drive and Diane Drive in Carlton Terrace First Addition; all right of way of El Trinidad Drive East abutting Lots 1 through 7, Block 1; and abutting Lots 11 through 18, Block 1; all right of way of Terrace Drive (previously known as El Trinidad Drive North) abutting Lot 15, Block 2 in Virginia Grove Terrace; all right of way of Evans Drive abutting Lots 20 through 30, Block 6 in Virginia Grove Terrace Fourth Addition; all right of way of Grove Drive abutting Lot 27, Block Z and abutting Lot 6 through Lot 8, Block 4; and abutting Lot 10, Block 4, and abutting Lots 12 through 15, Block 4; all right of way of Terrace Drive as shown on the Subdivision Plat in Virginia Grove Terrace First Addition; all right of way of Lucas Drive abutting Lot 1, Block 6 and abutting Lot 29, Block 5, and abutting Lots 4 through 12, Block 6 in Virginia Grove Terrace Third Addition; all right of way of Thomas Drive abutting Lots 16 through 18, Lots 20 through 25, and Lot 27, Block 4; and abutting Lot 5 Block 5; and all right of way of Terrace Drive, abutting Lots 7 through 10, Block 3 in Virginia Grove Terrace Second Addition; upon annexation into the City of Clearwater, as Low Medium Density Residential L( MDR). Ordinance 8272-11 was presented and read by title only. Councilmember Bill Jonson moved to adopt Ordinance 8272-11 on second reading and final 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. 7.4 Adopt Ordinance 8273-11 on second reading, amending provisions of the Chapter 30, Traffic and Motor Vehicles, Clearwater Code of Ordinances, to Council 2011-09-01 4 eliminate a provision allowing the recovery for administrative costs as part of the City's parking ticket dismissal program. Ordinance 8273-11 was presented and read by title only. Councilmember John Doran moved to adopt Ordinance 8273-11 on second reading and final 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. 7.5 Adopt Ordinance 8275-11 on second reading, amending Sections 8.08, 15.07(3), 21.06, and 22.39, Clearwater Code of Ordinances, to eliminate any regulations pertaining to firearms that would be contrary to Section 790.33, Florida Statutes (2011). Ordinance 8275-11 was presented and read by title only. Vice Mayor George N. Cretekos moved to adopt Ordinance 8275-11 on second reading and final 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. 7.6 Adopt Ordinance 8280-11 on second reading, vacating the 3-foot Utility Easement lying adjacent to and south of the north property line of the West of Lot 26 and all of Lot 27, Carolina Terrace Annex as recorded in Plat Book 12, Page 30, of the public records of Pinellas County, Florida. Ordinance 8280-11 was presented and read by title only. Councilmember Paul Gibson moved to adopt Ordinance 8280-11 on second reading and final 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. Consent Agenda Council 2011-09-01 5 8.1 Approve an agreement with Intuition Systems, Inc., DBA Bi112Pay, of Clearwater, FL in the amount of$216,500.00 for lock box services for the City of Clearwater, from October 1, 2011 through September 30, 2016, and authorize the appropriate officials to execute same. (consent) 8.2 Approve an agreement with Northeast 11, Inc., DBA TC Delivers, of Tampa, FL in the amount of$470,000.00 for utility bill printing and mailing, mail processing services and postage for the City of Clearwater from November 1, 2011 through October 31, 2012 and authorize the appropriate officials to execute same. consent 8.3 Approve an Interlocal Agreement between the City of Clearwater (City) and the Community Redevelopment Agency of the City of Clearwater, Florida (Agency) that outlines responsibilities for the environmental cleanup of the CarPro site and authorize the appropriate officials to execute same. (consent) 8.4 Approve an Agreement between the City of Clearwater and the Clearwater Regional Chamber of Commerce (CRCC) to produce and distribute the Official Clearwater, Florida Visitor Guide in Fiscal Year 2011-2012 in return for funding in the amount of$26,000 and authorize the appropriate officials to execute same. (consent) 8.5 Approve the extension of Fire Protection Services Agreement between Pinellas County Fire Protection Authority and City of Clearwater for one year until September 30, 2012 and authorize the appropriate officials to execute same. consent 8.6 Approve a five (5) year agreement with both the Boys and Girls Clubs of the Suncoast, Inc. (BGC) and the Martin Luther King Jr. Neighborhood Family Center, Inc. (MLKNFC) and the City from October 1, 2011 to September 30, 2016 to provide recreational, educational and social programming for the North Greenwood Community at the North Greenwood Recreation and Aquatics Complex and North Greenwood Library and authorize the appropriate officials to execute same. (consent) 8.7 Approve the Amendment to the Revocable License Agreement between the City of Clearwater, Florida and Sunsets at Pier 60 Society, Inc. (Sunsets) to establish a more clearly defined License Area and to strengthen and clarify language in regard to Sunsets being responsible for vendor and performer selection and authorize the appropriate officials to execute same. (consent) 8.8 Approve a Third Amendment to the Agreement between the City and The Council 2011-09-01 6 Winning Inning, Inc., for the use and operation of the Jack Russell Memorial Stadium and Complex for an additional five (5) years from February 1, 2012 through January 31, 2017 and authorize the appropriate officials to execute same. (consent) 8.9 Approve an Interlocal Agreement in the amount of$145,796.57 with the Community Redevelopment Agency (CRA), authorize continuation of two full- time equivalent positions to provide Community Police Officers for the East Gateway area of the CRA, and authorize the appropriate officials to execute same. (consent) 8.10 Approve the renewal of a Software Support Agreement for the TriTech System, in the amount of$159,189.12, for a 12-month period, beginning October 1, 2011 and ending September 30, 2012. (consent) 8.11 Award a contract (Purchase Order) to Angelos Recycled Materials in the amount of$430,000 for the disposal of solid waste at their site for the period October 1, 2011 through September 30, 2012 as provided in the Clearwater Code of Ordinances, Section 2.561 and authorize the appropriate officials to execute the same. (consent) 8.12 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, October 1, 2011 through September 30, 2012, as provided in the citys Code of Ordinances, Section 2.564 (1) (d), Services provided by Other Governmental Entities, and authorize the appropriate officials to execute the same. (consent) 8.13 Approve the conveyance of a Distribution Easement to Progress Energy (PE) granting appropriate authority to PE for the purpose of providing electrical service to the Ed Wright production well that will provide raw water for the new brackish reverse osmosis water treatment plant at Water Treatment Plant 2 and authorize the appropriate officials to execute same. (consent) 8.14 Approve a Legal Services Agreement (annual extension) between the City of Clearwater and Baker and Hostetler LLP, to serve as legal counsel on Environmental issues in the amount of$50,000 and authorize the appropriate officials to execute same. (consent) 8.15 Award a construction contract to Gibbs and Register, Inc. of Winter Garden, Florida for the Gulf to Bay Boulevard/Highland Avenue Improvements Project (08-0051-EN) in the amount of$340,265.20, which is the lowest responsible bid received in accordance with the plans and specifications, and authorize the Council 2011-09-01 7 appropriate officials to execute same. (consent) 8.16 Approve Supplemental 2 Construction Engineering and Inspection Services (CEI) Work Order to Engineer of Record, Atkins Inc., in the amount of $41,539.15 for the final phase of inspection of the Morningside Traffic Calming Project. (consent) 8.17 Accept a Right of Way and Utility Easement conveyed by Morton Plant Hospital Association, Inc. over, under and across a portion of the northwest 1/4 of the northeast 1/4 of Section 21, Township 29 South, Range 15 East, as more Particularly described therein, given in consideration of receipt of$10.00 and the benefits to be derived therefrom. (consent) 8.18 Appoint Phyllis Franklin to the Brownfields Advisory Board with term to expire May 31, 2015. 8.19 Approve Purchase Order in the amount of$25,000 for outside counsel services of Gina Grimes, Esq. for representation of the Community Development Board. consent Councilmember John Doran moved to approve the Consent Agenda as submitted and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. City Manager Reports 9. Other Items on City Manager Reports 9.1 Authorize an intergovernmental loan, in an amount not to exceed $325,440, from funds provided to the City from the United States Environmental Protection Agency as part of the Brownfields Cleanup Revolving Loan Fund Program for cleanup of the CarPro site and adopt Resolution 11-19. In October 1999, the City Council authorized the City Manager to sign a Loan Fund Agreement and Work Plan for the $500,000 award received from the United States Environmental Protection Agency (EPA) for the Clearwater Brownfields Cleanup Revolving Loan Fund (BCRLF). EPA awarded the City supplemental funds in the amount of$700,000 on September 28, 2006 increasing the original $500,000 award to $1,200,000. The action also approved a time extension of the budget and project period date from September 30, 2001 to December 31, 2011. The current balance of$325,507.75 is available from this award with $325,440 earmarked for this loan for the CarPro site. Council 2011-09-01 8 The BCRLF was structured to provide low-interest loans to parties interested in the redevelopment of environmentally impaired properties. The BCRLF also allows government entities to loan to other government agencies, but requires a City resolution. The rule also states that the City may discount up to 30% of the principal amount of the loan, provided that the total amount of the principal forgiven shall not exceed $200,000. The City determined that the best use of these remaining funds from EPA would be for the cleanup of the CarPro site. The City also determined that the Community Redevelopment Agency (CRA) is in a better position to convey the site to a developer or other private entity if it provides for the environmental cleanup of the site. Resolution 11-19 requests the City Council to allot additional monies in the form of a loan in the amount up to $325,440 to the CRA to complete the remediation of the CarPro site and to address off-site environmental impacts. To obtain a Site Rehabilitation Completion (SRCO) from FDEP (Florida Department of Environmental Protection) for the CarPro site, the City of Clearwater is obligated to address off-site contamination related to the CarPro site. An interlocal agreement will outline the City and CRA responsibilities in preparing the site for redevelopment. The purpose of the agreement is to provide the means by which the CRA and City can mutually work together to use their existing and anticipated resources to meet the expenses incurred for the environmental cleanup of the site. The funds appropriated by the City from the BCRLF will have a zero interest rate and be utilized by the CRA for this purpose and shall be repaid to the BCRLF by the City or the CRA either from: a) amounts repaid to the City or the CRA from the private developer or another party to whom the CRA ultimately conveys the Site following the environmental cleanup provided for herein; b) TIF funds; c) the General Fund of the City through budget appropriations in subsequent years so that such BCRLF may be made available by the City for the environmental cleanup of the other sites; d) other means legally sufficient and approved by EPA. The repayment term is five years from the completion of the environmental cleanup of the site as indicated by a site rehabilitation completion order (SRCO). It is the intent of the CRA to use either sale proceeds, TIF, brownfields funds, and/or environmental cleanup tax credit proceeds for the repayment of the loan. While City general funds are not anticipated to be used, any payment from the City of Clearwater General Fund is subject to the annual appropriations process. As stated earlier, a portion of the loan may be discounted to reduce total funds due to the BCRLF. Council 2011-09-01 9 Councilmember Bill Jonson moved to authorize an intergovernmental loan, in an amount not to exceed $325,440, from funds provided to the City from the United States Environmental Protection Agency as part of the Brownfields Cleanup Revolving Loan Fund Program for cleanup of the CarPro site. The motion was duly seconded and carried unanimously. Resolution 11-19 was presented and read by title only. Councilmember John Doran moved to adopt Resolution 11-19. 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. 9.2 Award a contract (purchase order) to lease desktop and laptop computers for 3 years from Hewlett-Packard Financial Services Company, Murray Hill, NJ for an amount not to exceed $1,300,000 in accordance with Sec. 2.5640)(d) Code of Ordinances, under State Contract 250-040-08-1; and authorize the appropriate officials to execute same. The City has leased computers for nine years. The benefits of leasing include operational savings for asset acquisition and maintenance, improved efficiency in user support and asset management, improved security for City systems and network, and improved performance for system users and employees. This term of leasing includes all desktop (1,100) and laptop (-300) computers within the City. The cost of this lease term is 8% higher than the previous term (2009-2011). The City's computers are upgraded over a 3-year cycle at approximately 33% per year. Costs in the initial year (2011/2012) of the contract will be approximately $365,520. The maximum annual costs for this lease term will be approximately $433,000 in the third year. This agreement includes a value added enhancement. Self-Maintainer Program which enables City staff to be trained at no additional costs to function as Hewlett- Packard certified technicians to expedite diagnostic and resolution actions (Hewlett-Packard tracks and pays (reimburses) for these services for every 15 minutes of work performed).Quarterly payments will be budgeted in the Information Technology annual operating budget, and costs prorated to all Council 2011-09-01 10 departments based upon their respective computer counts, through the Administrative Services Fund charge back for Information Technology services. Concern was expressed regarding state of HP computer division. Information Technology Director Dan Mayer said the contract may be amended at any time. Vice Mayor George N. Cretekos moved to award a contract (purchase order) to lease desktop and laptop computers for 3 years from Hewlett-Packard Financial Services Company, Murray Hill, NJ for an amount not to exceed $1,300,000 in accordance with Sec. 2.564(1)(d) Code of Ordinances, under State Contract 250-040-08-1; and authorize the appropriate officials to execute same. The motion was duly seconded. Mayor Frank Hibbard, Vice Mayor George N. Cretekos and Councilmembers John Doran and Bill Jonson voted "Aye"; Councilmember Paul Gibson voted "Nay". Motion carried. 9.3 Clearwater Business Task Force Report. Business Task Force Chair Brian Aungst encouraged all to view Monday's presentation on video streaming and read the final report, which is available online at www.MyClearwater.com, search Clearwater Business Task Force. In response to a question, Planning and Development Director Michael Delk said staff will prepare a line by line review of the recommendations and categorize the recommendations by short/mid/long term items and zero/modest/larger costs. Staff review should be complete by September 20, 2011. There was consensus to schedule a special work session on September 28, 20117 4:00 p.m. through 6:00 p.m., to discuss the Business Task Force Recommendations. 9.4 Disband Business Task Force. The Business Task Force submitted a report with recommendations to the Council on August 29, 2011 and has completed its review of the environment facing businesses in the City. Councilmember Paul Gibson moved to disband the Business Task Force. The motion was duly seconded and carried unanimously. 9.5 Appoint Brian Aungst, Jr., David Allbritton, Steve Engelhardt, Steve Fowler, Gene Gillespie, Jeff Kronschnabl, and Robert Pergolizzi to the Business Task Force Executive Committee. Council 2011-09-01 11 The Business Task Force submitted a report with recommendations to the Council on August 29, 2011 and has completed its review of the environment facing businesses in the City. The Business Task Force Executive Committee will assist the City Council in implementing those recommendations brought forward by the Business Task Force. Councilmember Bill Jonson moved to appoint Brian Aungst, Jr., David Allbritton, Steve Engelhardt, Steve Fowler, Gene Gillespie, Jeff Kronschnabl, and Robert Pergolizzi to the Business Task Force Executive Committee. Two individuals spoke in support. The motion was duly seconded and carried unanimously. 9.6 Approve the attached Business Lease Contract between the City of Clearwater and Clearwater Marine Aquarium, Inc. for the lease of the Second (Middle) floor of the Harborview Center pursuant to the terms and conditions of the Business Lease Contract; ratify and confirm the City's capital renovation cost of approximately $171,650 for site preparation, authorize pre-lease reimbursable interim operating costs of$16,650 and authorize the appropriate officials to execute same. The Clearwater Marine Aquarium recently approached the City and requested the lease of the second floor of the Harborview Center to help them mitigate and manage the community impacts anticipated by the concurrent of reconstruction and expansion of the Aquarium and the significantly heightened visitor demand as a result of the release of the movie entitled "A Dolphin's Tale". Unforeseen delays in the Aquarium reconstruction/expansion created the situation. The City, in discussion with the Executive Board of the Aquarium and later at City Council meetings, indicated a willingness to consider such an accommodation with the caveat that the City be fully reimbursed for the cost of site preparation and, subsequently, the tenancy be on a triple net basis, with the Aquarium absorbing all operating costs created by the tenancy. The only exception would be in the instance where the City reclaims the property for municipal purposes prior to the lease expiration, in which case the capital costs would be reimbursed on a proportional basis. The attached lease reflects these conditions. The lease provides for an initial term of 12 months, with subsequent renewal options of 1 year and 6 months at the option of the Aquarium. The Aquarium may cancel the lease at any time upon 30 days notice to the City, but, in such instance, Council 2011-09-01 12 will continue the capital cost liability and nonetheless fully reimburse the City in the 30-month period prescribed in the lease. The City will underwrite and prepare the facility for use by the Aquarium and will recover the cost through a base monthly rent equivalent to 1/30th of the cost of site preparation. Additionally, the Aquarium will report attendance at the Harborview quarterly, and will remit to the City the difference between attendance and base rent on a $1 per attendee basis (in those cases where the attendance exceeds the base rent), which will be credited to the capital cost reimbursement to the City. Once the capital cost of site preparation is fully reimbursed, the rent will be at the nominal rate of$1 per annum. Pre-lease occupancy by the Aquarium will be permitted pursuant to a License Agreement between the City and CMA for exhibit assemblage and materials storage, with the City held harmless and operating costs for the pre-lease period rolled forward into the capital cost reimbursement total and repaid according to the repayment schedule delineated above. City staff recommends approval for the following reasons-1) The use of the Harborview Center would help mitigate the anticipated traffic and visitor impact on the City due to the concurrent reconstruction and anticipated increased attraction of visitors to the Aquarium as a result of the movie release;2)The tourism and financial importance to the City and the Aquarium of assuring a positive tourist/visitor experience to the Aquarium, particularly following the release of the movie, would far exceed any inconvenience to the City in allowing the tenancy;3) The infusion of visitors to Downtown would likely generate additional business for restaurants and retail establishments, during a difficult economic period;4) The lease meets the City Council criteria that the City be held harmless from a cost standpoint. Funding for the site preparation is recommended to be funded from Capital Project 315-93277, Harborview R and R, which has an available balance of $2507837.95. The City Attorney reviewed the business lease contract and said the actual cost for renovations may fall below the $107,047 cost estimate; staff will enter the final renovations cost (base rent amount), which will include the estimated interim operating costs, on November 10, 2011. Staff was directed to add the Sea Blues and the Fourth of July events under lease agreement Item 17, Reservation by Lessor. Vice Mayor George N. Cretekos moved to approve the attached Business Lease Contract between the City of Clearwater and Clearwater Marine Aquarium, Inc. for the lease of the Second (Middle) floor of the Harborview Center pursuant to the terms and conditions of the Business Lease Contract; ratify and confirm the City's capital renovation cost of approximately $171,650 for site preparation; authorize pre-lease Council 2011-09-01 13 reimbursable interim operating costs of$16,650 and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. Miscellaneous Reports and Items 10. City Manager Verbal Reports - None. 11. Other Council Action - None. 12. Closing Comments by Mayor Mayor Frank Hibbard reviewed recent and upcoming events. 13. Adjourn The meeting was adjourned at 6:47 p.m. j:-.41u-A° Y /-d" Mayor Attest City of Clearwater • lI City Clerk =p I of r /34 it 0i Council 2011-09-01 14