11/03/2011
City Council Agenda
Location: Council Chambers - City Hall
Date: 11/3/2011- 6:00 PM
Welcome. We are glad to have you join us. If you wish to speak, please wait to be recognized, then state your
name and address. Persons speaking before the City Council shall be limited to three (3) minutes unless
otherwise noted under Public Hearings. For other than Citizens to be heard regarding items not on the Agenda, a
spokesperson for a group may speak for three (3) minutes plus an additional minute for each person in the
audience that waives their right to speak, up to a maximum of ten (10) minutes. Prior to the item being
presented, please obtain the needed form to designate a spokesperson from the City Clerk (right-hand side of
dais). Up to thirty minutes of public comment will be allowed for an agenda item. No person shall speak more
than once on the same subject unless granted permission by the City Council. The City of Clearwater strongly
supports and fully complies with the Americans with Disabilities Act (ADA). Please advise us at least 48 hours
prior to the meeting if you require special accommodations at 727-562-4090. Assisted Listening Devices are
available. Kindly refrain from using beepers, cellular telephones and other distracting devices during the
meeting.
1. Call to Order
2. Invocation
3. Pledge of Allegiance
4. Presentations
4.1Suncoast Dixieland Jazz Classic Weekend Proclamation - Joan Dragon, Director Suncoast Dixieland Jazz
Festival
Attachments
4.2State of the City Address - City Manager
Attachments
5. Approval of Minutes
5.1Approve the minutes of the October 20, 2011 City Council Meeting as submitted in written summation by
the City Clerk.
Attachments
6. Citizens to be Heard re Items Not on the Agenda
Public Hearings - Not before 6:00 PM
7. Second Readings - Public Hearing
7.1Adopt Ordinance 8289-11 on second reading, annexing certain real property whose post office address is
1310 Parkwood Street, together with the abutting right of way of Parkwood Street, into the corporate
limits of the city and redefining the boundary lines of the city to include said addition.
Attachments
7.2Adopt Ordinance 8290-11 on second reading, amending the future land use plan element of the
Comprehensive Plan of the city to designate the land use for certain real property whose post office
address is 1310 Parkwood Street, together with the abutting right of way of Parkwood Street, upon
annexation into the City of Clearwater, as Residential Low (RL).
Attachments
7.3Adopt Ordinance 8291-11 on second reading, amending the Zoning Atlas of the city by zoning certain
real property whose post office address is 1310 Parkwood Street, together with the abutting right of way
of Parkwood Street, upon annexation into the City of Clearwater, as Low Medium Density Residential
(LMDR).
Attachments
7.4Adopt Ordinance 8293-11 on second reading, amending Chapter 22, Parks, Beaches, Recreation, Article
II, Use Regulations, Section 22.24(2), changing the name of Chautauqua Park North to Enterprise Dog
Park, modifying park hours for various parks or portions thereof and removing certain parks.
Attachments
City Manager Reports
8. Consent Agenda
8.1Authorize settlement of the workers compensation claims of Claimant Jesse Cross, File 1000005, in their
entirety to include medical, indemnity and attorney fees for a sum not to exceed $45,081.46. (consent)
Attachments
8.2Ratify and Confirm Change Order 2 to Wise Gas, Inc. in the amount of $49,429.47 and extend the contact
duration by 45 days for the Compressed Natural Gas (CNG) Filling Station Project (10-0043-GA).
(consent)
Attachments
8.3Award a Contract to Central Florida Contractors of Largo, Fl, for the 2011 Sidewalk Project (11-0012-
EN) in the amount of $568,337.00, which is the lowest responsible bid received in accordance with plans
and specifications, and authorize the appropriate officials to execute same. (consent)
Attachments
8.4Approve Supplemental Work Order 2 to Sam Schwartz Engineering, in the amount of $59,932.93, for
design of a storm water pond and the associated storm water management system to attenuate the storm
water improvements on Otten Street from Kings Highway east to Weston Drive. (consent)
Attachments
9. Other Items on City Manager Reports
9.1Support the Tampa Bay Partnership Regional Business Plan Initiative and adopt Resolution 11-25.
Attachments
9.2Designate an underwriting team consisting of Wells Fargo Securities, Bank of America Merrill Lynch,
and RBC Capital Markets to provide investment banking services to manage future negotiated bond sales
for the City of Clearwater for a three year period ending October 31, 2014, with the option for two
additional one-year extensions, and adopt Resolution 11-23.
Attachments
9.3Authorize the negotiated sale of not to exceed $22,000,000 Stormwater Revenue Refunding Bonds, Series
2011, and authorize staff to proceed with the potential refunding and adopt Resolution 11-20.
Attachments
9.4Authorize the City of Clearwater to take over the maintenance of signage for Dunedin Pass and Mandalay
Channel Aids To Navigation, formerly a Coast Guard duty, at an estimated cost of $700 per year, and
adopt Resolution 11-22.
Attachments
9.5Approve referendum questions to appear on the ballot on January 31, 2012, regarding changes to the City
Charter and pass Ordinances 8296-11, 8297-11, and 8298-11 on first reading.
Attachments
9.6Amend Section 2.263(1), Clearwater Code of Ordinances, to provide that the salaries of the Mayor and
Councilmembers will not increase in 2012 and pass Ordinance 8299-11 on first reading.
Attachments
9.7Provide direction to staff regarding proposed recommendations of the Business Task Force.
Attachments
Miscellaneous Reports and Items
10. City Manager Verbal Reports
10.1Outdoor Display
Attachments
11. Other Council Action
11.1Homeless Leadership Network
Attachments
12. Closing Comments by Mayor
13. Adjourn
Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Suncoast Dixieland Jazz Classic Weekend Proclamation - Joan Dragon, Director Suncoast Dixieland Jazz Festival
SUMMARY:
Review Approval:
Cover Memo
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Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
State of the City Address - City Manager
SUMMARY:
Review Approval:
Cover Memo
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Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the minutes of the October 20, 2011 City Council Meeting as submitted in written summation by the City Clerk.
SUMMARY:
Review Approval:
Cover Memo
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Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Adopt Ordinance 8289-11 on second reading, annexing certain real property whose post office address is 1310 Parkwood Street,
together with the abutting right of way of Parkwood Street, into the corporate limits of the city and redefining the boundary lines of
the city to include said addition.
SUMMARY:
Review Approval:
Cover Memo
Item # 4
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Item # 4
Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Adopt Ordinance 8290-11 on second reading, amending the future land use plan element of the Comprehensive Plan of the city to
designate the land use for certain real property whose post office address is 1310 Parkwood Street, together with the abutting right
of way of Parkwood Street, upon annexation into the City of Clearwater, as Residential Low (RL).
SUMMARY:
Review Approval:
Cover Memo
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Item # 5
Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Adopt Ordinance 8291-11 on second reading, amending the Zoning Atlas of the city by zoning certain real property whose post
office address is 1310 Parkwood Street, together with the abutting right of way of Parkwood Street, upon annexation into the City
of Clearwater, as Low Medium Density Residential (LMDR).
SUMMARY:
Review Approval:
Cover Memo
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Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Adopt Ordinance 8293-11 on second reading, amending Chapter 22, Parks, Beaches, Recreation, Article II, Use Regulations,
Section 22.24(2), changing the name of Chautauqua Park North to Enterprise Dog Park, modifying park hours for various parks or
portions thereof and removing certain parks.
SUMMARY:
Review Approval:
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Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Authorize settlement of the workers compensation claims of Claimant Jesse Cross, File 1000005, in their entirety to include medical,
indemnity and attorney fees for a sum not to exceed $45,081.46. (consent)
SUMMARY:
On November 15, 2008, Claimant, a Fire Medic for the City of Clearwater, was lifting a patient from a chair to the
stretcher when she injured her back. She was treated conservatively and released to full duty.
On January 19, 2010, Claimant was removing a patient from a vehicle to a stretcher and injured her back. She was treated
conservatively for a disc protrusion at L5-S1 and released to full duty. She reached maximum medical improvement on
October 23, 2010 and received an impairment rating of 5%.
On April 14, 2011, Claimant was coming down the stairs at Station 44 when she fell due to syncope. The claim was
denied and claimant filed a claim against the City stating her fall was due to leg weakness, which she related to her back
injury.
On July 21, 2011, Claimant was working light duty when she missteped causing back pain. She was transported to the
emergency room. The claim was denied stating no accident as defined within Florida Statute. Medical bills for the July 21
emergency room visit were paid against the January 19, 2010 injury claim.
The Claimant continues to receive active medical treatment for her injuries.
Settlement of these claims is recommended as being in the best interest of the City by the City's Claims Committee, the
Risk Management Division, and the City's outside legal counsel, Mark Hungate, Esq..
Type:
Operating Expenditure
Current Year Budget?:Budget Adjustment:
YesNone
Budget Adjustment Comments:
Current Year Cost:Annual Operating Cost:
$45,081.46
Not to Exceed:Total Cost:
$45,081.46 $45,081.46
For Fiscal Year:
10/01/2011 to 09/30/2012
Appropriation CodeAmountAppropriation Comment
0590-07000-545800-519-$45,081.46
000-0000
Cover Memo
Bid Required?:Bid Number:
No
Item # 8
Other Bid / Contract:Bid Exceptions:
None
Review Approval:
Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Ratify and Confirm Change Order 2 to Wise Gas, Inc. in the amount of $49,429.47 and extend the contact duration by 45 days for the
Compressed Natural Gas (CNG) Filling Station Project (10-0043-GA).(consent)
SUMMARY:
The original CNG Filling Station contract with Wise Gas, Inc. did not include an enhanced canopy design or a monument
sign along the right-of-way of Hercules Avenue. The enhanced canopy signage design was submitted to the City
Planning department as part of our City comprehensive sign program requirements after the construction project was
awarded in April 2011. To realize cost savings for this additional signage work by doing this work while the current
contractor was on-site, Clearwater Gas System (CGS) received authorization from the City Manager to move forward
with procurement of the sign materials.
With approval of this Change Order, the revised contract amount will be $791,204.23. The revised project completion
date will be extended by 45 days to December 14, 2011.
The original construction contract was approved by the City Council on April 7, 2011, with Wise Gas was in the amount of
$674,341. The City Manager subsequently approved CO 1 on September 21, 2011, in the amount of $67,433.76 within his
10% authority. This had been done to cover items not originally in the Wise Gas contract, such as irrigation, lighting of facility
and enhanced island barriers (bollards) for rezoning.
The Clearwater Gas Department shall own and maintain the proposed improvements included in this Change Order.
Type:
Capital expenditure
Current Year Budget?:Budget Adjustment:
YesNone
Budget Adjustment Comments:
Current Year Cost:Annual Operating Cost:
49,429.47
Not to Exceed:Total Cost:
49,429.47791,204.23
For Fiscal Year:
10/1/2011 to 9/30/2012
Appropriation CodeAmountAppropriation Comment
0315-96387-563800-532-49,429.47Natural Gas Filling Station project code
000-0000
Review Approval:
Cover Memo
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Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Award a Contract to Central Florida Contractors of Largo, Fl, for the 2011 Sidewalk Project (11-0012-EN) in the amount of $568,337.00, which
is the lowest responsible bid received in accordance with plans and specifications, and authorize the appropriate officials to execute same.
(consent)
SUMMARY:
This contract includes two main areas of work, new sidewalks and the removal and replacement of existing sidewalks
including A.D.A. ramp installation.
New sidewalks will be constructed on North Evergreen Avenue, North Hillcrest Avenue and Park Street in the East Gateway
District as part of neighborhood enhancement program initiated by the City's Economic Development and Housing
Department.
Sidewalks to be removed and replaced including A.D.A. ramps are located in the Morningside Estates Subdivision together
with the Meadows Subdivision. These sidewalk portions are typically cracked or uplifted by trees and a part of the City's
program to keep sidewalks in a safe condition. Other sidewalks to be removed and replaced are being upgraded to meet
current Florida Disability Code requirements. These sidewalk portions are located along Cleveland Street, Landmark Drive
and Oak Neck Road at Countryside Boulevard.
A first quarter amendment will transfer $65,571.00 of Development Impact Fees from Capital Improvement Program
(CIP) project 0315-92822, Miscellaneous Engineering to 0315-92339, New Sidewalks.
Sufficient funding is available in CIP project 0315-92273, Streets and Sidewalks, to fund $502,766.00 for Repair and
Replacement of existing sidewalks for total funding in the amount of $568,337.00.
Type:
Capital expenditure
Current Year Budget?:Budget Adjustment:
NoYes
Budget Adjustment Comments:
See summary
Current Year Cost:Annual Operating Cost:
$568,337.00
Not to Exceed:Total Cost:
$568,337.00 $568,337.00
For Fiscal Year:
2011 to 2012
Appropriation CodeAmountAppropriation Comment
0315-92339-563700-541-000-$ 65,571.00 See summary
0000
0315-92273-563700-541-000-$502,766.00See summary
0000
Cover Memo
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Bid Required?:Bid Number:
Yes11-0012-EN
Other Bid / Contract:Bid Exceptions:
None
Review Approval:
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Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve Supplemental Work Order 2 to Sam Schwartz Engineering, in the amount of $59,932.93, for design of a storm water pond
and the associated storm water management system to attenuate the storm water improvements on Otten Street from Kings Highway
east to Weston Drive. (consent)
SUMMARY:
This storm water work is associated with the Greenlea-Otten Traffic Calming Project, which is currently under design by Sam
Schwartz Engineering.
As part of the survey of the traffic calming project it became apparent that there was a flooding issue on Otten Street between Kings
Highway and Weston Drive.
It was deemed prudent by the Project Manager and the Storm Water Division that effective means could be deployed to reduce the
flooding problem on this segment of road and that it could be constructed as part of the Traffic Calming Project.
The storm water pond will be located on existing Park Property located at Sandy Lane Park just south of this area on Weston Drive.
The Parks and Recreation Department has approved the use of this property.
The storm water pond and associated storm water facilities will be maintained by the Storm Water Maintenance Division of the
Utilities Department.
Sufficient funding in the amount of $59,932.93 is available in Capital Improvement Program project 0315-92259, Traffic Calming.
Type:
Capital expenditure
Current Year Budget?:Budget Adjustment:
YesNo
Budget Adjustment Comments:
Current Year Cost:Annual Operating Cost:
$59,932.93
Not to Exceed:Total Cost:
$59,932.93$59,932.93
For Fiscal Year:
2011 to 2012
Appropriation CodeAmountAppropriation Comment
0315-92259-561200-541-000-$59,932.93See summary
0000
Review Approval:
Cover Memo
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Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Support the Tampa Bay Partnership Regional Business Plan Initiative and adopt Resolution 11-25.
SUMMARY:
The Tampa Bay Partnership has adopted a Regional Business Plan, which provides a long-term vision
for economic growth and development around four high potential industry clusters and a series of
foundational regional marketing and development initiatives. The Plan is coordinated with the Economic
Development Strategic Plan effort recently completed by the City.
In order to fully implement the Regional Business Plan, the Partnership will be seeking private industry,
foundation and grants-in aids financial resources. A strong indication of support for the Regional
Business Plan effort by investors and members of the Partnership is critical to these fundraising efforts
and to build momentum for the overall Plan implementation. In that regard, the Partnership has
requested a resolution of support from the City Council.
Staff recommends adoption of the resolution of support requested by the Tampa Bay Partnership for the
following reasons:
The Regional Business Plan and target industry strategy informs, supports and is facilitative of the Citys
Economic Development Strategic Plan effort;
The Partnerships effort will provide analytics and information for the Citys effort that will avoid the cost
and time required for the City to develop the information independently;
Several region-wide, cost sharing business retention and expansion efforts will allow the City to access
business intelligence and contact management capabilities not otherwise affordable to the City.
The regional marketing and re-branding activities planned by the Partnership will have derivative
benefits for the Citys own economic development marketing efforts.
Review Approval:
Cover Memo
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Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Designate an underwriting team consisting of Wells Fargo Securities, Bank of America Merrill Lynch, and RBC Capital Markets to
provide investment banking services to manage future negotiated bond sales for the City of Clearwater for a three year period ending
October 31, 2014, with the option for two additional one-year extensions, and adopt Resolution 11-23.
SUMMARY:
In order to efficiently conduct future long-term bond financing transactions, staff seeks Council approval
for an underwriting team of investment banking firms to manage future negotiated bond sales.
The team will consist of three firms selected through an RFQ process, and will serve for a three-year
period with two one-year optional extensions. The Citys Finance Director will designate the Senior-
underwriter and Co-managers for each transaction.
The City issued RFQ 31-11 to select a team of investment banking firms to underwrite future bond sales
and received a total of sixteen (16) responses for consideration. The list of respondents is included in
Exhibit A.
The selection committee has evaluated the responses and recommends the Council approve a three-firm
team consisting of Wells Fargo Securities, Bank of America Merrill Lynch, and RBC Capital.
Type:
Debt-Bond
Current Year Budget?:Budget Adjustment:
NoneNone
Budget Adjustment Comments:
Current Year Cost:Annual Operating Cost:
Not to Exceed:Total Cost:
For Fiscal Year:
to
Review Approval:
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Exhibit A
Respondents to City of Clearwater, Florida RFQ 31-11:
Bank of America/Merrill Lynch
Citigroup Global Markets Inc.
Edward Jones
Estrada Hinojosa
Fifth Third Securities
Gardnyr Michael
J P Morgan Securities
Jeffries & Company
Loop Capital Markets, LLC
Morgan Keegan
PNC Capital
RBC Capital Markets
Rice Financial Products
RockFleet Financial
Siebert Brandford Shank & Co., LLC
Wells Fargo Securities
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Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Authorize the negotiated sale of not to exceed $22,000,000 Stormwater Revenue Refunding Bonds, Series 2011, and authorize staff to
proceed with the potential refunding and adopt Resolution 11-20.
SUMMARY:
Currently there is outstanding $20,295,000 of City of Clearwater, FL, Stormwater System Revenue Bonds, Series
2002, with interest rates ranging from 3.625 to 4.950% callable on or after November 1, 2011. Recent bond market
conditions suggest we may have an opportunity to refinance all or a portion of these bonds in the near future to
achieve an acceptable present value savings in accordance with the Citys debt management policy.
The Citys debt management policy states, As a general rule, the present value savings of a particular refunding
should exceed 5%. While staff is hopeful for favorable market rates that provide present value savings approaching
or exceeding 5%, this sale resolution authorizes a minimum net present value savings of 4%.
This resolution authorizes the negotiated sale of not to exceed $22,000,000 of Stormwater System Revenue
Refunding Bonds, Series 2011, and authorizes awarding the sale to Wells Fargo Bank and the co-managers selected
by the City. Only the amount of bonds needed to refund all or a portion of the then outstanding balance of the Citys
Stormwater System Revenue Bonds, Series 2002, and associated issuance costs, will be issued.
The City may incur rating agency costs of an estimated $50,000 to $70,000, in anticipation of a refunding. If the
minimum refunding savings do not materialize on a timely basis, after initiating the ratings review process, the City
will still be responsible for the rating agency fees incurred. The City will be responsible for no other costs (i.e.
Financial Advisor, Bond Counsel, Disclosure Counsel) unless a refunding occurs.
Type:
Debt-Bond
Current Year Budget?:Budget Adjustment:
YesNone
Budget Adjustment Comments:
Current Year Cost:Annual Operating Cost:
Not to Exceed:Total Cost:
For Fiscal Year:
to
Review Approval:
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Preliminary Official Statement Dated October , 2011
NEW ISSUE - FULL BOOK-ENTRY
Ratings: Moodys:
S&P:
(see RATINGS herein)
In the opinion of Bond Counsel, assuming continuous compliance with various covenants in the Ordinance (herein defined),
under existing statutes, regulations and judicial decisions, the interest on the Series 2011 Bonds will be excluded from gross income for
federal income tax purposes to the owners thereof and is not an item of tax preference for purposes of the federal alternative minimum tax
imposed on individuals and corporations; however, interest on the Series 2011 Bonds will be taken into account to determine adjusted
current earnings of corporations. See TAX MATTERS herein.
$[Bond Amount]*
CITY OF CLEARWATER, FLORIDA
Stormwater System Revenue Refunding Bonds
Series 2011
Dated: Date of Delivery Due: November 1, as shown on the inside cover page
The Stormwater System Revenue Refunding Bonds, Series 2011 (the Series 2011 Bonds) of the City of Clearwater, Florida (the
City) are being issued in fully registered form and, when initially issued, will be registered t& Co., as nominee of The Depository Trust
Company, New York, New York. [Registrar], [Registrar Location], is acting as the Paying Agent and Bond Registrar for the Series 2011 Bonds.
The Series 2011 Bonds will be purchased in book-entry form only, in the denomination of $5,000 or any integral multiple thereof. There will be
no physical delivery of bond certificates to individual Bondholders. Interest on the Series 2011 Bonds will be payable semi-annually beginning
on May 1, 2012 and on each May 1 and November 1 thereafter. Principal of and premium, if any, on the Series 2011 Bonds will be payable at
maturity or upon redemption prior to maturity.
The Series 2011 Bonds are subject to redemption prior to maturity as described herein.
The Series 2011 Bonds are being issued pursuant to the authority and in full compliance with the charter of the City, the
Constitution and the laws of the State of Florida, particularly Chapter 166, Part II, Florida Statutes, and other applicable provisions of law, and
Ordinance No. 6378-99 enacted by the City on April 7, 2002, as amended and supplemented by Ordinance No. 6931-02, enacted by the City on
July 18, 2002, as further amended and supplemented (the Ordinance) for the purpose of (i) refunding and redeeming $[Refunded Bonds
Amount] Outstanding principal amount of the Citys Stormwater System Revenue Bonds, Series 2002; and (ii) paying certain costs of issuance of
the Series 2011 Bonds. The Series 2011 Bonds and the interest thereon are payable solely from the Pledged Revenues, which consist of Net
Revenues derived from the operation of the System and with respect to each Series of Bonds, the moneys on deposit in the various funds and
accounts created pursuant to the Ordinance allocable to such Series of Bonds, with the exception of the Rebad. The Series 2011 Bonds are
issued on a parity with certain Outstanding Bonds of the City, as more particularly described herein and the Ordinance permits the issuance of
Additional Parity Obligations payable from the Net Revenues upon the conditions described herein under the caption SECURITY FOR THE
SERIES 2011 BONDS - Additional Parity Obligations.
AMOUNTS, INTEREST RATES, MATURITIES, YIELDS AND CUSIPS
(See Inside Cover Page)
This cover page contains certain information for quick reference only. It is not a summary of the issue. Investors must
read this entire Official Statement to obtain information essential to the making of an informed investment decision.
The Series 2011 Bonds are offered when, as and if issued and accepted by the Underwriters subject to the approval of
legality by Bryant Miller Olive P.A., Tallahassee, Florida, Bond Counsel. Certain other legal matters will bthe
City by Pamela K. Akin, Esquire, City Attorney, and by Nabors, Giblin & Nickerson, P.A., Tampa, Florida, Disclosure Counsel to the
City. [Underwriters Counsel], [UC Location] is serving as counsel to the underwriters. Raymond James & Associates, Inc.,
Orlando, Florida is serving as Financial Advisor to the City. It is expected that the Series 2011 Bonds, in book-entry
form, will be available for delivery through DTC in New York, New York on or about November , 2011.
October , 2011
__________________________________
* Preliminary, subject to change.
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MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, PRICES OR YIELDS
AND CUSIP NUMBERS
Maturity Principal Interest
November 1 Amount Rate Yield CUSIP
* The City is not responsible for the use of CUSIP numbers, nor is any representation made as to their
correctness. They are included solely for the convenience of the readers of this Official Statement.
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CITY OF CLEARWATER, FLORIDA
ELECTED OFFICIALS
MAYOR
Frank Hibbard
CITY COUNCIL
George N. Cretekos (Vice-Mayor)
John Doran
Bill Jonson
Paul F. Gibson
APPOINTED OFFICIALS
William B. Horne, II, City Manager
Pamela K. Akin, Esq., City Attorney
Brian J. Ravins, CGFO, Finance Director
BOND COUNSEL
Bryant Miller Olive P.A.
Tallahassee, Florida
FINANCIAL ADVISOR
Raymond James & Associates, Inc.
Orlando, Florida
DISCLOSURE COUNSEL
Nabors, Giblin & Nickerson, P.A.
Tampa, Florida
REGISTRAR AND PAYING AGENT
[Paying Agent]
[Paying Agent Location]
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No dealer, broker, salesman or other person has been authorized give any
information or to make any representations, other than those contained in this
Official Statement, in connection with the offering of the Series 2011 Bonds described
herein, and if given or made, such information or representations must not be relied
upon as having been authorized by the City or the Underwriters. This Official
Statement does not constitute an offer to sell the Series 2011 Bonds or a solicitation
of an offer to buy nor shall there be any sale of the Series 2011 Bonds by any person
in any jurisdiction in which it is unlawful for such person to make such offer,
solicitation or sale. The information set forth herein has been furnished by the City
and by other sources which are believed to be reliable, but it is not guaranteed as to
accuracy or completeness, and is not to be construed as a representation or contract,
by the Underwriters. The information and expressions of opinion herein are subject
to change without notice and neither the delivery of the Official Statement nor any
sale made hereunder shall, under any circumstances, create any implication that
there has been no change in the affairs of the City since the date hereof.
The Series 2011 Bonds have not been registered with the Securities and
Exchange Commission under the Securities Act of 1933, as amended, nor has the
Ordinance been qualified under the Trust Indenture Act of 1939, as amended, in
reliance upon exemptions contained in such acts. The registration or qualification of
the Series 2011 Bonds in accordance with applicable provisions of the securities laws
of the States, if any, in which the Series 2011 Bonds have been registered or qualified
and the exemption from registration or qualification in certain other states cannot be
regarded as a recommendation thereof. Neither these States nor any of their
agencies have passed upon the merits of the Series 2011 Bonds or the accuracy or
completeness of this Official Statement. Any representation to the contrary may be a
criminal offense.
The Underwriters have reviewed the information in this Official Statement
pursuant to their responsibilities to investors under the federal securities laws, but
the Underwriters do not guarantee the accuracy or completeness of such
information.
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TABLE OF CONTENTS
Page
INTRODUCTORY STATEMENT ............................................................................................................... 1
THE REFUNDING PROGRAM ................................................................................................................. 2
DESCRIPTION OF THE SERIES 2011 BONDS ...................................................................................... 3
General .................................................................................................................................................. 3
Optional Redemption ............................................................................................................................ 4
Mandatory Redemption ........................................................................................................................ 4
Notice of Redemption ............................................................................................................................ 5
Book-Entry Only System ...................................................................................................................... 5
SECURITY FOR THE SERIES 2011 BONDS ........................................................................................... 8
General .................................................................................................................................................. 8
Series 2011 Bonds Not a Debt of the City ......................................................................................... 11
Outstanding Parity Obligations ......................................................................................................... 11
DEBT SERVICE REQUIREMENTS ........................................................................................................ 12
SOURCES AND USES OF FUNDS ......................................................................................................... 13
THE STORMWATER MANAGEMENT SYSTEM .................................................................................. 14
Physical Description ........................................................................................................................... 14
Management and Maintenance .......................................................................................................... 14
Establishment of Rates, Fees and Charges; Rate Study .................................................................. 15
Capital Expenditures; No Additional Bonds; Potential Regulatory Costs ...................................... 15
Rates, Fees and Charges .................................................................................................................... 16
Historical Net Revenues ..................................................................................................................... 17
FINANCIAL STATEMENTS .................................................................................................................... 17
INVESTMENT POLICY OF THE CITY .................................................................................................. 17
LEGALITY FOR INVESTMENT ............................................................................................................. 18
TAX MATTERS ......................................................................................................................................... 18
General ................................................................................................................................................ 18
Tax Treatment of Original Issue Discount ........................................................................................ 19
Tax Treatment of Bond Premium ...................................................................................................... 20
RATINGS ................................................................................................................................................... 20
LITIGATION .............................................................................................................................................. 20
VERIFICATION OF MATHEMATICAL COMPUTATIONS ................................................................. 21
ADVISORS AND CONSULTANTS .......................................................................................................... 21
CONTINUING DISCLOSURE ................................................................................................................. 22
ENFORCEABILITY OF REMEDIES....................................................................................................... 22
CERTAIN LEGAL MATTERS .................................................................................................................. 22
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS ............................................ 22
FINANCIAL ADVISOR ............................................................................................................................. 23
UNDERWRITING ..................................................................................................................................... 23
MISCELLANEOUS ................................................................................................................................... 23
Appendices:
Appendix A General Description of the City and Selected Statistics
Appendix B Excerpts from the City's Comprehensive Annual Financial Report for the
Fiscal Year Ended September 30, 2010
Appendix C Conformed Copy of Amended Ordinance
Appendix D Form of Continuing Disclosure Certificate
Appendix E Form of Bond Counsel Opinion
Appendix F Revenue Sufficiency Analysis (Rate Study)
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OFFICIAL STATEMENT
$[Bond Amount]*
CITY OF CLEARWATER, FLORIDA
STORMWATER SYSTEM REVENUE REFUNDING BONDS, SERIES 2011
INTRODUCTORY STATEMENT
The purpose of this Official Statement, which includes the cover page and the
Appendices, is to provide information concerning the City of Clearwater, Florida (the City) and
the City's $[Bond Amount]* Stormwater System Revenue Refunding Bonds, Series 2011 (the
Series 2011 Bonds). The Series 2011 Bonds are issued pursuant to the authority of and in full
compliance with (a) the charter of the City, (b) the Constitution and the laws of the State of
Florida, particularly Chapter 166, Part II, Florida Statutes, and other applicable provisions of
law, and (c) Ordinance No. 6378-99 enacted by the City on April 15, 2002 (the Ordinance), as
amended by Ordinance No. 6931-02, enacted by the City on July 18, 2002, as supplemented.
The Series 2011 Bonds are being issued for the purpose of (i) providing sufficient funds
to pay and redeem $[Refunded Bonds Amount] of the Citys Stormwater System Revenue
Refunding Bonds, Series, 2002 (the Series 2002 Bonds), which are currently Outstanding in
the aggregate principal amount of $20,295,000 (the Refunded Bonds); (ii) funding the Reserve
Account in the Reserve Fund in an amount equal to the Reserve Requirement applicable to the
Series 2011 Bonds, and (ii) paying certain costs of issuance of the Series 2011 Bonds, including
the underwriters discount. The Series 2011 Bonds and the interest thereon are payable solely
from the Pledged Revenues, which are comprised of Net Revenues derived from the operation of
the System and with respect to such Series of Bonds, the moneys on deposit in the various funds
and accounts created pursuant to the Ordinance allocable to each Series of Bonds, with the
exception of the Rebate Fund. After giving effect to the refundindertaken with the proceeds
of the Series 2011 Bonds, the City will have Outstanding under the Ordinance $12,405,000 City
of Clearwater, Florida Stormwater System Revenue Bonds, Series 2004 and $6,325,000 City of
Clearwater, Florida Stormwater System Revenue Bonds, Series 2005, all of which rank on a
parity with the Series 2011 Bonds as to the pledge of the Net Revenues.
Neither the Series 2011 Bonds nor the interest thereon constitute a general obligation or
indebtedness of the City within the meaning of any constitutional, statutory or charter
provision or limitation. No owner or owners of any Series 2011 Bonds shall ever have the right
to compel the exercise of the ad valorem taxing power of the City, or any other taxing power in
any form on any real or personal property of the City, to pay the Series 2011 Bonds or the
interest thereon. The City shall not be obligated to pay the Series 2011 Bonds or any interest
thereon except from the Pledged Revenues, in the manner provided in the Ordinance referred to
herein.
* .
Preliminary, subject to change
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The City covenants in the Ordinance to fix, establish and maintain such rates, and
collect such fees, rentals and other charges for the services and facilities of the System (as
herein defined) which will always provide Net Revenues in each year sufficient to pay one
hundred fifteen percent (115%) of the Bond Service Requirement becoming due in such year on
the Outstanding Bonds.
The City may issue Additional Parity Obligations, payable on a parity from the Net
Revenues with the Series 2011 Bonds, for the purpose of refunding a part of the Outstanding
Bonds, or financing the cost of extensions, additions and improvements to the System and for
the acquisition and construction of, and extensions and improvements to stormwater
management systems which are to be consolidated with the System and operated as a single
combined utility, provided that, among other requirements, certain earnings tests relating
historical Net Revenues to the Maximum Bond Service Requirement of all Bonds Outstanding
after the issuance of such Additional Parity Obligations can be met. Such historical Net
Revenues may be adjusted by the Consulting Engineer as provided in the Ordinance.
Definitions of certain words and terms having initial capitals used herein and in the
Ordinance (as defined below in Authority For Issuance) are contained in the Conformed Copy
of Amended Ordinance in Appendix C hereto.
The references, excerpts and summaries of all documents referredto herein do not
purport to be complete statements of the provisions of such documents, and reference is directed
to all such documents for full and complete statements of all matters of fact relating to the
Series 2011 Bonds, the security for the payment of the Series 2011 Bonds, and the rights and
obligations of holders thereof. The information contained in this Official Statement involving
matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and
not as representations of fact, and no representation is made that any of the estimates will be
realized. Neither this Official Statement nor any statement which may have been made
verbally or in writing is to be construed as a contract with the holders of the Series 2011 Bonds.
THE REFUNDING PROGRAM
Proceeds of the Series 2011 Bonds will be deposited into an escrow account (the Escrow
Account) established with [Escrow Agent], [Escrow Agent Location], as escrow agent (the
Escrow Agent) and invested in cash and/or direct obligations of the United States in order to
provide sufficient funds on [Escrow Maturity Date], to pay and redeem all of the Outstanding
Series 2002 Bonds (the Refunded Bonds), at the redemption price of [ ]% of the principal
amount thereof, together with accrued and unpaid interest thereon.
Upon issuance of the Series 2011 Bonds and based upon the deposit into the Escrow
Fund of the cash and/or direct obligations into the Escrow Fund as described above and the
verification of the mathematical accuracy of the sufficiency thereof to pay and redeem the
Refunded Bonds as described above by a firm of independent certified public accountants, Bond
Counsel will deliver and opinion to the effect that the Refunded Bonds will no longer be
outstanding for purposes of the resolution under which they were issued and the pledge of and
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lien on the Pledged Funds created by or pursuant to said Resolution with respect to such
Refunded Bonds will cease, terminate and be discharged.
DESCRIPTION OF THE SERIES 2011 BONDS
General
The Series 2011 Bonds will be dated the date of initial issuance and delivery. The Series
2011 Bonds will bear interest at the rates and mature on November 1 in the amounts and at the
times set forth on the cover page of this Official Statement. The Series 2011 Bonds are to be
issued as fully registered bonds in denominations of $5,000 or integral multiples thereof.
Interest on the Series 2011 Bonds will be payable semiannually on May 1 and November 1 of
each year, commencing May 1, 2012, by check or draft mailed to the registered owners, at their
addresses as they appear on the registration books of the City maintained by the Bond
Registrar, as of the 15th day (whether or not a business day) of the month preceding the
interest payment date (the Record Date). Owners of $1,000,000 or more in aggregate principal
amount of Series 2011 Bonds may receive interest by wire transfer, at the Owner's expense, to a
bank account designated in writing by the Owner not later than the Record Date. Principal of,
and premium if any, are payable at maturity, or upon redemption prior to maturity, upon
presentation and surrender thereof at the corporate trust office of the Paying Agent.
[Registrar], [Registrar Location], is acting as Paying Agent and Bond Registrar for the Series
2011 Bonds.
The Series 2011 Bonds will be initially issued in the form of a single fully registered
Bond for each maturity of the Series 2011 Bonds. Upon initial issuance, the ownership of each
such Series 2011 Bonds will be registered in the registration books kept by the Bond Registrar,
in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York
(DTC). While held in book-entry form, all payments of principal, interest and
premium, if any, on the Series 2011 Bonds will be made to DTC or the DTC Nominee
as the sole registered owner of the Series 2011 Bonds and payments to Beneficial
Owners will be the responsibility of DTC and the DTC Participants as described
below. See Book-Entry Only System.
With respect to Series 2011 Bonds registered in the name of Cede & Co., as nominee of
DTC, neither the City, nor the Paying Agent will have any responsibility or obligation to any
DTC Participant or to any indirect DTC Participant. See Book-Entry Only System for the
definition of DTC Participant. Without limiting the immediately preceding sentence, neither
the City nor the Bond Registrar and the Paying Agent will have any responsibility or obligation
with respect to: (i) the accuracy of the records of DTC or any DTC Participant with respect to
any ownership interest in the Series 2011 Bonds; (ii) the delivery to any DTC Participant or any
other person other than a registered owner, as shown in the registration books kept by the Bond
Registrar, of any notice with respect to the Series 2011 Bonds, including any notice of
redemption; or (iii) the payment to any DTC Participant or any other person, other than a
registered owner, as shown in the registration books kept by the Bond Registrar, of any amount
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with respect to principal of, premium, if any, or interest on the Series 2011 Bonds. The City,
the Bond Registrar and the Paying Agent may treat and consider the person in whose name
each Series 2011 Bonds is registered in the registration books kept by the Bond Registrar as the
holder and absolute owner of such Bond for the purpose of payment of principal of, premium, if
any, and interest with respect to such Bond, for the purpose of giving notices of redemption and
other matters with respect to such Bond, for the purpose of registering transfers with respect to
such Bond, and for all other purposes whatsoever. The Paying Agent will pay all principal of,
premium, if any, and interest on the Series 2011 Bonds only to or upon the order of the
respective registered owners, as shown in the registration books kept by the Bond Registrar, or
their respective attorneys duly authorized in writing, as provided in the Ordinance, and all such
payments will be valid and effectual to satisfy and discharge the City's obligations with respect
to payment of principal of, premium, if any, and interest on the Series 2011 Bonds to the extent
of the sums so paid. No person other than a registered owner, as shown in the registration
books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of
the City to make payments of principal of, premium, if any, and interest on the Series 2011
Bonds pursuant to the provisions of the Ordinance.
Optional Redemption
The Series 2011 Bonds maturing on or before November 1, [ ] are not callable prior
to their maturity dates. The Series 2011 Bonds maturing after November 1, [ ] are subject to
optional redemption by the City, on and after November 1, [ ], as a whole or in part at any
time thereafter, from the maturities selected by the City, and by lot within a maturity if less
than an entire maturity is redeemed, at the redemption price of the par amount thereof,
together with accrued interest to the date of redemption.
Mandatory Redemption
The Series 2011 Bonds maturing on November 1, will be subject to mandatory
redemption prior to maturity, by lot, in such manner as the Registrar may deem appropriate, at
a redemption price equal to the principal amount thereof plus interest accrued to the
redemption date, on November 1, , and on each November 1 thereafter, in the following
principal amounts in the years specified:
Amortization Amortization
Year Installment Year Installment
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As long as the book-entry-only system is used for determining beneficial ownership of the
Series 2011 Bonds, notice of redemption will only be sent to Cede & Co. Cede & Co. will be
responsible for notifying the DTC Participants, who will in turn be responsible for notifying the
Beneficial Owners (as such terms are described below under the heading Book-Entry Only
System). Any failure of Cede & Co. to notify any DTC Participant, or of any DTC Participant
to notify the Beneficial Owner of any such notice, will not affect the validity of the redemption of
the Series 2011 Bonds.
Notice of Redemption
Not less than 30 days prior to the expected redemption date, notice of such redemption
shall be filed with the Paying Agent and shall be mailed, postage prepaid to all registered
owners of the Series 2011 Bonds to be redeemed at their addresses as they appear on the
registration books. Failure to give such notice by mailing to any registered owner, or any defect
therein, shall not affect the validity of any proceeding for the redemption of other Series 2011
Bonds. Interest shall cease to accrue on any Series 2011 Bonds duly called for prior redemption,
after the redemption date, if payment thereof has been duly proved.
Book-Entry Only System
The Series 2011 Bonds will be available in book-entry form only, in denominations of
$5,000 or any integral multiple thereof. Purchasers of the Series 2011 Bonds will not receive
certificates representing their interests in the Series 2011 Bonds purchased. The Underwriter
is to confirm original issuance purchases with statements containing certain terms of the Series
2011 Bonds purchased.
The following information regarding The Depository Trust Company, New York, New York
(DTC) and the book-entry only system of registration has been obtained by the City from DTC.
No representation is made by the City as to its accuracy or correctness.
DTC will act as securities depository for the Series 2011 Bonds. The Series 2011 Bonds
will be issued as fully-registered bonds registered in the name of Cede & Co. (DTC's partnership
nominee) or such other name as may be requested by an authorized representative of DTC. One
fully-registered bond certificate will be issued for each maturity of the Series 2011 Bonds and
will be deposited with DTC.
DTC, the world's largest securities depository, is a limited-purpose trust company
organized under the New York Banking Law, a "banking organization" within the meaning of
the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation"
within the meaning of the New York Uniform Commercial Code, and a "clearing agency"
registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.
DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity
issues, corporate and municipal debt issues, and money market instruments (from over 100
countries) that DTC's participants (the "Direct Participants") deposit with DTC. DTC also
facilitates the post-trade settlement among Direct Participants of sales and other securities
transactions in deposited securities, through electronic computerized book-entry transfers and
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pledges between Direct Participants' accounts. This eliminates the need for physical movement
of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers
and dealers, banks, trust companies, clearing corporations, and certain other organizations.
DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC").
DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed
Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by
the users of its regulated subsidiaries. Access to the DTC system is also available to others such
as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing
corporations that clear through or maintain a custodial relationship with a Direct Participant,
either directly or indirectly (the "Indirect Participants"). DTC has a Standard and Poor's rating
of AA+. The DTC rules applicable to its Participants are on file with the Securities and
Exchange Commission. More information about DTC can be found at www.dtcc.com.
Purchases of the Series 2011 Bonds under the DTC system must be made by or through
Direct Participants, which will receive a credit for such Series 2011 Bonds on DTC's records.
The ownership interest of each actual purchaser of each Series 2011 Bond ("Beneficial Owner")
is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will
not receive written confirmation from DTC of their purchase. Beneficial Owners are, however,
expected to receive written confirmations providing details of the transaction, as well as
periodic statements of their holdings, from the Direct or Indirect Participant through which the
Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series
2011 Bonds are to be accomplished by entries made on the books of Direct and Indirect
Participants acting on behalf of the Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interests in the Series 2011 Bonds, except in the event
that use of the book-entry system for the Series 2011 Bonds is discontinued.
To facilitate subsequent transfers, all Series 2011 Bonds deposited by Direct Participants
with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other
name as may be requested by an authorized representative of DTC. The deposit of Series 2011
Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee
do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial
Owners of the Series 2011 Bonds; DTC's records reflect only the identity of the Direct
Participants to whose accounts such Series 2011 Bonds are credited, which may or may not be
the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping
an account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements made among them, subject to any
statutory or regulatory requirements as may be in effect from time to time.
Redemption notices shall be sent to DTC. If less than all of the Series 2011 Bonds are
being redeemed, DTC's practice is to determine by lot the amountof the interest of each Direct
Participant in such Bonds, as the case may be, to be redeemed.
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Neither DTC nor Cede & Co. (nor any other DTC nominee) will consor vote with
respect to the Series 2011 Bonds unless authorized by a Direct Participant in accordance with
DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City
as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting
or voting rights to those Direct Participants to whose accounts the Series 2011 Bonds are
credited on the record date (identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Series 2011 Bonds will
be made to Cede & Co., or such other nominee as may be requested by an authorized
representative of DTC. DTC's practice is to credit Direct Participants' accounts, upon DTC's
receipt of funds and corresponding detail information from the City or the Registrar on the
payable date in accordance with their respective holdings shown on DTC's records. Payments
by Participants to Beneficial Owners will be governed by standing instructions and customary
practices, as is the case with securities held for the accounts of customers in bearer form or
registered in "street name," and will be the responsibility of such Participant and not of DTC,
the Registrar or the City, subject to any statutory or regulatory requirements as may be in
effect from time to time. Payment of redemption proceeds, distributions, and dividend
payments to Cede & Co. (or such other nominee as may be requested by an authorized
representative of DTC) is the responsibility of the City and/or the Paying Agent for the Series
2011 Bonds. Disbursement of such payments to Direct Participants will be the responsibility of
DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of
the Direct and Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the
Series 2011 Bonds at any time by giving reasonable notice to the City. Under such
circumstances, in the event that a successor securities depository is not obtained, Series 2011
Bond certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry-only transfers through
DTC (or a successor securities depository). In that event, Series 2011 Bond certificates will be
printed and delivered to DTC.
In the event that the book-entry only system is discontinued, the following provisions will
govern the transfer and exchange of Series 2011 Bonds. The Series 2011 Bonds will be
exchanged for an equal aggregate principal amount of corresponding bonds in other authorized
denominations and of the same series and maturity, upon surrender thereof at the principal
corporate trust office of the Bond Registrar. The transfer of any Series 2011 Bonds will be
registered on the books maintained by the Bond Registrar for such purpose only upon the
surrender thereof to the Bond Registrar with a duly executed written instrument of transfer in
form and with guaranty of signatures satisfactory to the Bond Registrar, containing written
instructions as to the details of transfer of such Series 2011 Bonds, along with the social
security number or federal employer identification number of such transferee. The City and the
Bond Registrar may charge the registered owners a sum sufficient to reimburse them for any
expenses incurred in making any exchange or transfer after the first such exchange or transfer
following the delivery of the Series 2011 Bonds. The Bond Registrar or the City may also
require payment from the registered owners or their transferees, as the case may be, of a sum
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sufficient to cover any tax, fee or other governmental charge that may be imposed in relation
thereto. Such charges and expenses shall be paid before any such new Series 2011 Bonds shall
be delivered. Neither the City nor the Bond Registrar shall be required to register the transfer
or exchange of any Series 2011 Bonds during the period commencing on the fifteenth day
(whether or not a business day) of the month next preceding an interest payment date and
ending on such interest payment date or, in the case of any proposed redemption of a Series
2011 Bonds, after such Series 2011 Bonds or any portion thereof has been selected for
redemption.
SECURITY FOR THE SERIES 2011 BONDS
General
Net Revenues. The principal of and premium, if any, and interest on the Series 2011
Bonds are payable solely from and secured by an irrevocable first lien upon and pledge of the
Net Revenues (as hereinafter defined) derived and collected by the City from the operation of
the stormwater management system of the City (the System). Net Revenues are defined by
the Ordinance to include all income or earnings, including any income from the investment of
funds, derived by the City from the operation of the System after deduction of current expenses,
either paid or accrued, for the operation, maintenance and repair of the System, but not
including reserves for renewals and replacements, for extraordinary repairs or any allowance
for depreciation.
The Series 2011 Bonds do not constitute a general indebtedness of the City within the
meaning of any constitutional, statutory or charter provision or limitation. The principal of and
interest on the Series 2011 Bonds and all required reserve and other payments shall be made
solely from the Net Revenues. The City shall never be required to levy ad valorem taxes on any
property therein to pay the principal of and interest on the Series 2011 Bonds or to make any of
the required debt service, reserve or other payments, and any failure to pay the Series 2011
Bonds shall not give rise to a lien upon any property of or in the City, except the Net Revenues.
Rate Covenant. In the Ordinance, the City has covenanted to fix, establish, revise
from time to time whenever necessary, maintain and collect always such fees, rates, rentals and
other charges for the use of the products, services and facilities of the System which will always
provide Net Revenues in each year sufficient to pay one hundred fifteen percent (115%) of the
Bond Service Requirement coming due in such year on the Outstanding Bonds. Such rates,
fees, rentals or other charges may not be reduced so as to render them insufficient to provide
revenues for the purposes provided therefor by the Ordinance.
Reserve Fund. The Ordinance creates a separate account in the Reserve Fund to be
funded, or into which there is required to have been deposited a reserve fund surety policy
providing coverage, in an amount equal to the Reserve Requirement applicable to the respective
series of Bonds issued under the Ordinance. The City will satisfy the Reserve Requirement
applicable to the Series 2011 Bonds with a cash deposit equal to the applicable Reserve
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Requirement from a transfer of funds on deposit in the Reserve Account established for the
Series 2002 Bonds.
Additional Parity Obligations. Additional Parity Obligations, payable on a parity
from the Net Revenues with the Series 2011 Bonds, may be issued for the purpose of refunding
a part of the outstanding Bonds or financing the cost of extensions, additions and improvements
to the System and for the acquisition and construction of, and extensions, additions and
improvements to stormwater management systems which are to be consolidated with the
System and operated as a single combined utility. Additional Parity Obligations, other than for
refunding purposes, will be issued only upon compliance with all of the conditions set forth in
the Ordinance, including the following:
(1) There shall have been obtained and filed with the Clerk a certificate of
the Finance Director stating: (a) that the books and records of the City relative to the System
and the Net Revenues have been reviewed by an independent certified public accountant; and
(b) the amount of the Net Revenues derived for any consecutive twelve (12) months out of the
preceding twenty-four (24) months preceding the date of issuancethe proposed Additional
Parity Obligations as adjusted pursuant to paragraphs 2, 3, 4 and/or 5 below, is equal to not less
than 120% of the Maximum Bond Service Requirement becoming due in any Fiscal Year
thereafter on (i) all Bonds issued under the Ordinance, if any, then Outstanding, and (ii) on the
Additional Parity Obligations with respect to which such certificate is made.
(2) Upon recommendation of the Consulting Engineers, the Net Revenues
certified pursuant to paragraph 1(b) above may be adjusted by including: (a) 100% of the
additional Net Revenues which in the opinion of the Consulting Engineer would have been
derived by the City from rate increases adopted before the Additional Parity Obligations are
issued, if such rate increases had been implemented during the test period described in
paragraph 1(b) above, and (b) 100% of the additional Net Revenues estimated by the Consulting
Engineer to be derived during the first full twelve month period after the facilities of the System
are extended, enlarged, improved or added to with the proceeds of the Additional Parity
Obligations with respect to which such certificate is made.
(3) Upon recommendation of the Consulting Engineers if the Additional
Parity Obligations are to be issued for the purpose of acquiring an existing stormwater system
and/or any other utility system, the Net Revenues certified pursuant to paragraph l(b) above
may be adjusted by including: 80% of the additional estimated Net Revenues which in the
written opinion of the Consulting Engineers will be derived from the acquired facility during the
first full 12-month period after the issuance of such Additional Parity Obligations (the
Consulting Engineers' report shall be based on the actual operating revenues of the acquired
utility for a recent 12-month period adjusted to reflect the City's ownership and the City's rate
structure in effect with respect to the System at the time of thissuance of the Additional
Parity Obligations).
(4) Upon recommendation of the Consulting Engineer, if the City shall have
entered into a contract, which contract shall be for a duration of not less than the final maturity
of the proposed Additional Parity Obligations, with any public body, whereby the City shall
9
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have agreed to furnish any services creating Gross Revenues, then the Net Revenues certified
pursuant to paragraph 1(b) above may be increased (to the extent such amounts were not
otherwise reflected in such Net Revenues) by the minimum amount which the public body shall
guarantee to pay in any one year for the furnishing of services by the City, after deducting from
such payment the estimated Cost of Operation and Maintenance attributable in such year to
such services.
(5) Upon recommendations of the Consulting Engineers, if there is an
estimated increase in Net Revenues to be received by the City as a result of additions,
extensions or improvements to the System during the period of three (3) years following the
completion of such additions, extensions or improvements financed with the proceeds of Bonds
or Additional Parity Obligations, then the Net Revenues certified pursuant to paragraph 1(b)
above shall be increased by fifty percent (50%) of the average annual additional Net Revenues
calculated for such three year period.
(6) The City need not comply with the provisions of paragraph 1 above if and
to the extent the Bonds to be issued are refunding bonds, and if the City shall cause to be
delivered a certificate of the Finance Director setting forth the Bond Service Requirements (i)
for the Bonds then Outstanding and (ii) for all Series of Bonds to be immediately Outstanding
thereafter and stating that the Bond Service Requirements in any particular year pursuant to
(ii) above is not greater than the Bond Service Requirements in the corresponding year set forth
pursuant to (i) above.
(7) The City need not comply with the provisions of paragraph 1 above if and
to the extent the Bonds to be issued are for the purpose of providing any necessary additional
funds required for completion of any improvements to the System (Completion Bonds) if
originally financed with the proceeds of Bonds; provided that such Completion Bonds for which
the City need not comply with the provision of such paragraph (1) above may not exceed 10% of
the total principal amount of Bonds estimated to be required for such improvements to the
System at the time of issuance of the initial Series of Bonds to finance such improvements.
(8) The City shall not be in default in the carrying out of any of the
obligations assumed under this Ordinance and no event of default shall have occurred under
this Ordinance and shall be continuing, and all payments required by this Ordinance to be
made into the funds and accounts established hereunder shall have been made to the full extent
required.
(9) The ordinance or resolution authorizing the issuance of the Additional
Parity Obligations shall recite that all of the covenants contained herein will be applicable to
such Additional Parity Obligations.
See Appendix C, Conformed Copy of Amended Ordinance.
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Series 2011 Bonds Not a Debt of the City
The Series 2011 Bonds shall not constitute a general obligation or indebtedness of the
City within the meaning of any constitutional, statutory or charter provision or limitation, and
no Bondholder shall ever have the right to compel the exercise of the ad valorem taxing power of
the City or taxation in any form of real or personal property therein for the payment of the
principal of and interest on the Series 2011 Bonds or to compel the City to pay such principal
and interest from any other funds of the City except the Pledged Revenues. The Series 2011
Bonds shall not constitute a lien upon any property of or in the City, but shall constitute a lien
only on the Pledged Revenues all in the manner provided in the Ordinance.
Outstanding Parity Obligations
After giving effect to the refunding of the Series 2002 Bonds, in addition to the Series
2011 Bonds, there will be Outstanding under the Ordinance $12,405,000 of the Citys
Stormwater System Revenue Bonds, Series 2004 and $6,325,000 of the Citys Stormwater
System Revenue Refunding Bonds, Series 2005, all of which rank on a parity with the Series
2011 Bonds as to the pledge of the Net Revenues. It is anticipated that the City may issue
Additional Parity Obligations in 2012 and 2014 to fund additional capital improvements to the
stormwater system.
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DEBT SERVICE REQUIREMENTS
Series
Fiscal Parity Bonds Series 2011 Series 2011 2011
Year Debt Bonds Bonds Bonds
Ending Service Principal Interest Total
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Totals
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SOURCES AND USES OF FUNDS
SOURCES OF FUNDS
Par Amount of Bonds
Accrued Interest
Less: Net Original
Issue Discount/Premium
Transfer from Series 2002
Reserve Account
TOTAL SOURCES
USES OF FUNDS
Deposit to Debt Service Fund
Deposit to Series 2011 Reserve
Account in the Reserve Fund
Deposit to Escrow Fund
Costs of Issuance (1)
TOTAL USES
_____________________
(1) Includes costs of issuance and underwriters discount.
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THE STORMWATER MANAGEMENT SYSTEM
Physical Description
The City of Clearwater was created in 1923 by Chapter 9710, Special Laws of Florida,
with all governmental, corporate and proprietary powers to enable it to conduct municipal
government, perform municipal functions and render municipal services, and to exercise any
power for municipal purposes except where expressly prohibited by law. A major municipal
function of the City of Clearwater is the efficient, economic, and safe operation of the City
stormwater infrastructure for the health, safety, and general welfare of the public. The
management of stormwater in the City was established in 1991 as a city utility enterprise in
accordance with Florida Statutes and funded by a stormwater utility fee for stormwater
management service, levied against all developed property within the City to provide planning,
design, construction, operation, maintenance, regulation, surveying, and inspection of the
stormwater management facilities within the City. Those services provide system management
for approximately 187 miles of stormwater conveyance systems (i.e. pipes, ditches, storm
manholes, catch basins, spillways, and other drainage structures), 9 square miles of open water,
and more than 14,400 structures (e.g. culverts, flumes, weirs, catch basins, etc.) to manage
drainage for the City, having a population of approximately 108,000 permanent residents and
20,000 winter residents.
Management and Maintenance
The City has a Council-Manager form of municipal government. The Mayor and Council
Members are elected by the City voters on an at-large basis. All have voting power at Council
meetings which are chaired by the Mayor. The City Council appoints the City Manager and the
City Manager is responsible for appointing all officers and employees in the administrative
service of the City.
Stormwater Management (Environmental, Planning and Projects) is managed by the
Engineering Director and Stormwater maintenance is managed by the Public Services Director.
The System is one of seven utilities (Water, Sewer, Reclaimed Water, Gas, Solid Waste,
Recycling, and Stormwater) billed on a consolidated basis by the Clearwater Utility Customer
Service Department.
The Stormwater Management program is supported by eleven full-time equivalent
positions, an increase of one position from the 2009/10 budget. A construction inspector position
was transferred from Engineering. Budgeted contractual and professional services have
increased $51,000 from the 2009/10 budget to cover increased expenses for the full rate-study,
water quality testing in St. Josephs Sound, and Tampa Bay Estuary Program TMDL
Reassurance Testing. The City maintains a policy that requires the System to make payments
to the City in lieu of taxes from the Stormwater Fund to the General Fund. The computation is
based on City Council policy, and reflects a rate of 5.5% of prior year gross revenues or
$738,870. The 2010/11 contribution is a 7% increase over the 2009/10 budget. The total budget
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for the Stormwater System for the current Fiscal Year reflects a decrease of 7% from the
2009/10 budget.
The Stormwater Maintenance program is supported by 37 fulltime equivalent positions,
the same level of staffing as the 2009/10 budget. The Stormwater Fund is charged an
administrative charge by the General Fund, reimbursing the General Fund for the Stormwater
Fund portion of City administrative functions such as the City Manager, City Attorneys Office,
and Official Records functions. The Stormwater Fund anticipated portion of this cost is
$603,990 in this fiscal year, an 8% increase from the 2009/10 budget. The Stormwater Fund also
reimburses the General Fund for specific services provided by General Fund programs. This is
primarily the support of the administrative, environmental, and engineering services for time
and materials devoted to these functions. The Stormwater Fund anticipated charge for these
services is $469,770 in the new fiscal year, a decrease of 20% from the 2009/10 budget. The
Stormwater Fund is also charged for the services provided by Clearwater Customer Service to
billing and administering Stormwater customers. The Stormwater Funds anticipated portion of
this cost is $340,660 in the current Fiscal Year, approximately the same level of funding as the
2009/10 budget. Budgeted transfers of $4,331,450 for the 2010/11 budget reflect the transfer of
funds to the Capital Improvement Program to support Stormwater system projects as planned
in the Rate Study.
Establishment of Rates, Fees and Charges; Rate Study
The City establishes by ordinance rates, fees and charges for use of the System, which
are adopted in response to periodic rate studies conducted by Burton and Associates, the Citys
utility rate consultant. The most recent FY 2010 Stormwater Revenue Sufficiency Analysis
Update, dated June 18, 2010 (the Rate Study) forms the basis for establishing future rates,
fees, and charges for System services based upon a planning period of FY 2012 through FY
2021. The Rate Study recommends the City maintain its approved annual 4.250% rate
increases from FY 2012 through FY 2013 and implement a 2.5% per year annual increase in FY
2014 and thereafter. The Rate Study is included herein as Appendix F.
Capital Expenditures; No Additional Bonds; Potential Regulatory Costs
The Rate Study does not forecast the necessity for the issuance of additional Bonds for
capital improvements to the System over the ten-year forecast period, but rather forecasts
sufficient current revenues from operations to fund such improvements over such period. In
total, the cost of the capital improvement program (including cost inflation) from FY 2010 - FY
2020 is projected by the Rate Study to be in excess of $75 million (for a detailed listing of such
capital expenditures, see Appendix A, Schedule 3 of the Rate Study which is attached hereto as
Appendix F). Budgeted transfers of $4,331,450 for the 2010/11 budget reflect the transfer of
funds to the capital improvement program to support Stormwater system projects as planned in
the Rate Study. The Rate Study also forecasts $300,000 of shorter-lived asset replacements in
FY 2010, FY 2011, FY 2017, and FY 2018 that will be financed via the Citys short-term lease-
purchase program.
The Rate Study does point out, however, that the State of Floria has initiated a
rulemaking process that is intended to establish quantitative nutrient water quality standards
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for the purpose of protecting state waters from the adverse effenutrient over-enrichment.
Depending upon the final outcome of the rulemaking process, the Utility could be required to
incur significant costs to comply with the new standards, including capital costs totaling $85
million over a 5-year period beginning in FY 2012 and $1 million of additional annual operating
and maintenance expenses beginning in FY 2014. The Rate Study states, that due to the high
level of uncertainty surrounding this proposed rulemaking and the magnitude of the potential
costs of compliance, it was determined that the financial management plan presented in this
Report should not reflect the identified potential costs of compliance. To the extent that this or
some other regulatory requirement is enacted, it is anticipated that the City will update its
financial management plan accordingly to account for any additional costs of compliance as part
of the annual revenue sufficiency analysis process for the Utility.
Rates, Fees and Charges
The City uses a measurement of one equivalent residential unit (ERU) as the basis for
the stormwater management utility fee.Single-family homes, multifamily units, condominium
units, apartments and mobile homes are rated as one ERU per dwelling unit. Nonresidential
property is charged at the rate of 1,830 square feet of impervious area per ERU.
The rate per ERU was unchanged from the inception of the utility on January 1, 1991
until 1998 when annual increases were adopted for five fiscal years beginning October 1, 1998.
In November 2001, additional increases were adopted including a change to the increase
previously adopted, to be effective October 1, 2002. Effective August 5, 2004, additional
increases were adopted. On July 20, 2006, rate increases were adopted for the five-year period
beginning October 1, 2007. An increase was adopted on June 19, 2008, for the two one-year
periods beginning October 1, 2011 and October 1, 2012. The monthly rates have been, and are,
as follows:
Rate Per
Effective Date ERU
January 1, 1991 $3.00
October 1, 1998 $4.00
October 1, 1999 $4.17
October 1, 2000 $4.35
October 1, 2001 $4.54
January 1, 2002 $6.13
October 1, 2002 $7.16
October 1, 2003 $8.01
October 1, 2004 $8.65
October 1, 2005 $9.35
October 1, 2006 $9.71
October 1, 2007 $10.51
October 1, 2008 $11.14
October 1, 2009 $11.80
October 1, 2010 $12.51
October 1, 2011 $13.04
October 1, 2012 $13.59
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Historical Net Revenues
Fiscal Years Ended September 30,
2006 2007 2008 2009 2010
Net Operating Revenues
(Excluding Depreciation) $5,103,551.00 $5,688,934.00 $5,681,465.00 $5,750,323.00 $7,471,323.00
Interest Income and
other Non-Operating
Revenues (Expenses) 465,203.00 608,038.00 550,935.00 796,769.00 1,045,752.00
Total Net Revenues $5,568,754.00 $6,296,972.00 $6,232,400.00 $6,547,092.00 $8,517,075.00
Maximum Annual Debt
Service $2,889,994.00 $2,889,994.00 $2,889,994.00 $2,889,994.00 $2,889,994.00
Coverage 1.93 2.19 2.16 2.27 2.95
FINANCIAL STATEMENTS
The combined financial statements and Stormwater enterprise fund financial
statements of the City at September 30, 2010 and for the Fiscal Year then ended, appended
hereto as Appendix B, have been excerpted from the financial statements contained in the City's
Comprehensive Annual Financial Reports for the Fiscal Year ending September 30, 2010.
INVESTMENT POLICY OF THE CITY
Pursuant to the requirements of Section 218.45, Florida Statutes, the City adopted a
written investment policy which applies to all funds held by or for the benefit of the City
Council (except for proceeds of bond issues which are deposited in escrow and debt service funds
and governed by their bond documents) and funds of Constitutional Officers and other
component units of the City.
The objectives of the investment policy, listed in order in order of importance, are:
1. Safety of principal
2. Provision of sufficient liquidity
3. Optimization of return within the constraints of safety and liquidity
The investment policy limits the securities eligible for inclusion in the City's portfolio.
The City will attempt to maintain a weighted average maturity of its investments at or below
three years; however, the average maturity of investments may not exceed four years.
To enhance safety, the investment policy requires the diversification of the portfolio to
reduce the risk of loss resulting from over-concentration of assets in a specific class of security.
The investment policy also requires the preparation of periodic reports for the City Council of all
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outstanding securities by class or type, book value, income earned and market value as of the
report date.
Notwithstanding the foregoing, moneys held in the funds and accounts established
under the Ordinance may be invested only in Permitted Investments, as described in the
Ordinance.
LEGALITY FOR INVESTMENT
The Series 2011 Bonds constitute legal investments in the State of Florida for state,
county, municipal and all other public funds and for banks, savings banks, insurance
companies, executors, administrators, trustees and all other fiduciaries, and also constitute
securities eligible as collateral security for all state, county, municipal and other public funds.
TAX MATTERS
General
The Internal Revenue Code of 1986, as amended (the Code) estab certain
requirements which must be met subsequent to the issuance and delivery of the Series 2011
Bonds in order that interest on the Series 2011 Bonds will be and remain excluded from gross
income for purposes of federal income taxation. Non-compliance may cause interest on the
Series 2011 Bonds to be included in federal gross income retroactive to the date of issuance of
the Series 2011 Bonds, regardless of the date on which such non-compliance occurs or is
ascertained. These requirements include, but are not limited to, provisions which prescribe
yield and other limits within which the proceeds of the Series 2011 Bonds and the other
amounts are to be invested and require that certain investment earnings on the foregoing must
be rebated on a periodic basis to the Treasury Department of the United States. The City has
covenanted in the Resolution to comply with such requirements in order to maintain the
exclusion from federal gross income of the interest on the Series 2011 Bonds.
In the opinion of Bond Counsel, assuming compliance with the aforementioned
covenants, under existing statutes, regulations and judicial decisions, interest on the Series
2011 Bonds is excluded from gross income for purposes of federal income taxation, interest on
the Series 2011 Bonds is not an item of tax preference for purpoes of the federal alternative
minimum tax imposed on individuals and corporations; however, interest on the Series 2011
Bonds will be taken into account to determine adjusted current earnings of corporations such
that interest on the Series 2011 Bonds may be subject to the alternative minimum tax when any
2011 Bond is held by a corporation. The alternative minimum taxable income of a corporation
must be increased by 75% of the excess of such corporations adjsted current earnings over its
alternative minimum taxable income (before this adjustment and the alternative tax net
operating loss deduction). Adjusted current earnings will include interest on the Series 2011
Bonds.
Except as described above, Bond Counsel expresses no opinion regarding other federal
tax consequences resulting from ownership of, receipt or accrual of interest on, or disposition of
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the Series 2011 Bonds. Prospective purchasers of the Series 2011 Bonds should be aware that (i)
Section 265 of the Code denies a deduction for interest on indebtedness incurred or continued to
purchase or carry the Series 2011 Bonds; (ii) with respect to insurance companies subject to the
tax imposed by Section 831 of the Code, Section 832(b)(5)(B)(i) reduces the deduction for loss
reserves by 15% of the sum of certain items, including interest on the Series 2011 Bonds; (iii)
interest on the Series 2011 Bonds earned by certain foreign corporations doing business in the
United States could be subject to a branch profits tax imposed by Section 884 of the Code; (iv)
passive investments income, including interest on the Series 2011 Bonds, may be subject to
federal income taxation under Section 1375 of the Code for Subchapter S corporations that have
Subchapter C earnings and profits at the close of the taxable year if greater than 25% of the
gross receipts of such Subchapter S corporations is passive investment income; and (v) Section
86 of the Code requires recipients of certain Social Security and certain Railroad Retirement
benefits to take into account, in determining the taxability of such benefits, receipts or accruals
of interest on the Series 2011 Bonds. Other provisions of the Code may give rise to adverse
federal income tax consequences to particular Bondholders. Holders of the Series 2011 Bonds
should consult their own tax advisors with respect to the tax consequences to them of owning
the Series 2011 Bonds.
PURCHASE, OWNERSHIP, SALE OR DISPOSITION OF THE SERIES 2011 BONDS
AND THE RECEIPT OR ACCRUAL OF THE INTEREST THEREON MAY HAVE ADVERSE
FEDERAL TAX CONSEQUENCES FOR CERTAIN INDIVIDUAL AND CORPORATE
REGISTERED OWNERS. PROSPECTIVE REGISTERED OWNERS SHOULD CONSULT
WITH THEIR TAX SPECIALISTS FOR INFORMATION IN THAT REGARD.
During recent years legislative proposals have been introduced in Congress, and in some
cases enacted, that altered certain federal tax consequences resulting from the ownership of
obligations that are similar to the Series 2011 Bonds. In some cases these proposals have
contained provisions that altered these consequences on a retroactive basis. Such alterations of
federal tax consequences may have affected the market value of obligations similar to the Series
2011 Bonds. From time to time, legislative proposals are pending which could have an effect on
both the federal tax consequences resulting from ownership of the Series 2011 Bonds and their
market value. No assurance can be given that additional legislative proposals will not be
introduced or enacted that would or might apply to, or have an adverse effect upon, the Series
2011 Bonds.
Tax Treatment of Original Issue Discount
Bond Counsel is further of the opinion that the difference betw the principal amount
of the Series 2011 Bonds maturing on December 1 in the years through and including
(collectively the "Discount Bonds") and the initial offering price to the public (excluding bond
houses, brokers or similar persons or organizations acting in the capacity of Underwriters or
wholesalers) at which price a substantial amount of such Discount Bonds of the same maturity
was sold constitutes original issue discount which is excludable from gross income for federal
income tax purposes to the same extent as interest on the Series 2011 Bonds. Further, such
original issue discount accrues actuarially on a constant interest rate basis over the term of
each Discount Bond and the basis of each Discount Bond acquired at such initial offering price
by an initial purchaser thereof will be increased by the amount of such accrued original issue
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discount. The accrual of original issue discount may be taken into account as an increase in the
amount of tax-exempt income for purposes of determining various other tax consequences of
owning the Discount Bonds, even though there will not be a corresponding cash payment.
Owners of the Discount Bonds are advised that they should consult with their own advisors
with respect to the state and local tax consequences of owning such Discount Bonds.
Tax Treatment of Bond Premium
The difference between the principal amount of the Series 2011 Bonds maturing on
December 1, in the years through and including (collectively, the "Premium Bonds") and
the initial offering price to the public (excluding bond houses, brokers or similar persons or
organizations acting in the capacity of underwriters or wholesalers) at which price a substantial
amount of such Premium Bonds of the same maturity was sold constitutes to an initial
purchaser amortizable bond premium which is not deductible from gross income for Federal
income tax purposes. The amount of amortizable bond premium for a taxable year is
determined actuarially on a constant interest rate basis over the term of each Premium Bond
which term ends on the earlier of the maturity or optional call date for such Premium Bond
which results in the lowest yield on such Bond to the purchaser thereof. For purposes of
determining gain or loss on the sale or other disposition of a Premium Bond, an initial
purchaser who acquires such obligation in the initial offering to the public at the initial offering
price is required to decrease such purchasers adjusted basis in such Premium Bond annually by
the amount of amortizable bond premium for the taxable year. The amortization of bond
premium may be taken into account as a reduction in the amount of tax-exempt income for
purposes of determining various other tax consequences of owning such Premium Bonds.
Owners of the Premium Bonds are advised that they should consult with their own advisors
with respect to the state and local tax consequences of owning such Premium Bonds.
RATINGS
Moody's Investors Service, Inc. (Moody's) and Standard & Poor's, a division of The
McGraw-Hill Companies, Inc. (S&P) have assigned ratings to the Series 2011 Bonds of [ ]
and [ ] respectively to the Series 2011 Bonds. The ratings reflect the view of Moody's and
S&P, respectively, and any explanation of the significance of such ratings may be obtained only
from Moody's or S&P. There is no assurance that such ratings will remain in effect for any
given period of time or that such ratings may not be lowered or withdrawn entirely by the
rating agencies, if in their opinion or judgment, circumstances so warrant. Any downward
revision or withdrawal of the ratings may have an adverse effect on the market price and
marketability of the Series 2011 Bonds.
LITIGATION
Except as described below, in the opinion of the City Attorney there is no litigation now
pending or threatened (i) to restrain or enjoin the issuance or sale of the Series 2011 Bonds or
(ii) questioning or affecting the validity of the Series 2011 Bonds, the Ordinance or the pledge of
the Net Revenues by the City or the proceedings for the authorization, sale, execution or
delivery of the Series 2011 Bonds.
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The City is involved in certain litigation and disputes incidental to its operations. Upon
the basis of information presently available, the City Attorney believes that there are
substantial defenses to such litigation and disputes and that, in any event, any ultimate
liability, in excess of applicable insurance coverage, resulting therefrom will not materially
adversely affect the financial position or results of operations of the City.
VERIFICATION OF MATHEMATICAL COMPUTATIONS
The arithmetical accuracy of certain computations included in the schedules provided
by Raymond James & Associates, Inc. on behalf of the City relating to (a) computation of
forecasted receipts of principal and interest on the Federal Securities and the forecasted
payments of principal and interest to redeem the Refunded Bonds, and (b) computation of the
yields on the Refunding Bonds and the Federal Securities was examined by [Verification
Agent], [Verification Agent Location]. Such computations were bsed solely upon assumptions
and information supplied by Raymond James & Associates, Inc. on behalf of the City.
[Verification Agent] has restricted its procedures to examining the arithmetical accuracy of
certain computations and has not made any study or evaluation of the assumptions and
information upon which the computations are based and, accordingly, has not expressed an
opinion on the data used, the reasonableness of the assumptions, or the achievability of the
forecasted outcome.
ADVISORS AND CONSULTANTS
The City has retained advisors and consultants in connection with the issuance of the
Series 2011 Bonds. These advisors and consultants are compensated from a portion of the
proceeds of the Series 2011 Bonds, identified as Costs of Issuance under the heading
ESTIMATED SOURCES AND USES OF FUNDS herein; and such compensation, is, in some
instances, contingent upon the issuance of the Bonds and the receipt of the proceeds thereof.
Financial Advisor. The City has retained Raymond James & Associates, Inc.,
Orlando, Florida (the Financial Advisor), as the Citys financial advisor. The fees of the
Financial Advisor will be paid from proceeds of the Series 2011 Bonds and such payment is
contingent upon the issuance of the Series 2011 Bonds.
Bond Counsel. Bryant Miller & Olive P.A., Tallahassee, Florida represents the City as
Bond Counsel. The fees of Bond Counsel will be paid from proceeds of the Series 2011 Bonds,
and such payment is contingent upon the issuance of the Series 2011 Bonds.
Disclosure Counsel. Nabors, Giblin & Nickerson, P.A., Tampa, Florida represents the
City as Disclosure Counsel. The fees of Disclosure Counsel will be paid from proceeds of the
Series 2011 Bonds, and such payment is contingent upon the issuance of the Series 2011 Bonds.
21
Item # 14
Attachment number 3 \nPage 27 of 35
CONTINUING DISCLOSURE
The City has covenanted for the benefit of the holders and benef owners of the
Series 2011 Bonds to provide certain financial information and operating data relating to the
City by not later than June 30 in each year commencing June 30, 2012 (the Annual Report),
and to provide notices of the occurrence of certain enumerated events, if deemed by the City to
be material. The Annual Report will be filed by the City with each Nationally Recognized
Municipal Securities Information Repository (NRMSIR), and with the State of Florida
Repository, if and when created. The notices of material events will be filed by the City with the
NRMSIR and with the State of Florida Repository, if and when created. The form of Continuing
Disclosure Certificate containing the specific nature of the information to be contained in the
Annual Report or the notices of material events appears in APPENDIX D - FORM OF
CONTINUING DISCLOSURE CERTIFICATE. These covenants have been made in order to
assist the Underwriter in complying with S.E.C. Rule 15c2-12(b)(5). The City has never failed
to comply in all material respects with any previous undertakings with regard to said Rule to
provide annual reports or notices of material events.
ENFORCEABILITY OF REMEDIES
The remedies available to the registered owners of the Series 2011 Bonds upon an event
of default under the Ordinance are in many respects dependent upon judicial actions which are
often subject to discretion and delay. Under existing constitutional and statutory law and
judicial decisions, including specifically Title II of the United States Code, the remedies
specified by the federal bankruptcy code, the Ordinance and the Series 2011 Bonds may not be
readily available or may be limited. The various legal opinions to be delivered concurrently
with the delivery of the Series 2011 Bonds (including Bond Counsel's approving opinion) will be
qualified, as to the enforceability of the various legal instruments, by limitations imposed by
bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors
enacted before or after such delivery.
CERTAIN LEGAL MATTERS
Certain legal matters in connection with the issuance of the Series 2011 Bonds are
subject to the approval of Bryant Miller & Olive P.A., Tallahassee, Florida, Bond Counsel,
whose approving opinion will be available at the time of delivery of the Series 2011 Bonds and
will be printed on such Bonds. The proposed form of Bond Counsel opinion is attached hereto as
Appendix E and reference is made to such form of opinion for the complete text thereof. Certain
legal matters will be passed upon for the City by Pamela K. Akin, Esquire, City Attorney and by
Nabors, Giblin & Nickerson, P.A., Tampa, Florida, disclosure counsel to the City.
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS
Section 517.051, Florida Statutes, and the regulations promulgated thereunder require
that the City make a full and fair disclosure of any bonds or other debt obligations of such entity
that have been in default as to principal or interest at any time after December 31, 1975, as
provided by rule of the Florida Department of Banking and Finance (the "Department").
22
Item # 14
Attachment number 3 \nPage 28 of 35
Pursuant to Rule 69W-400.003, Florida Administrative Code, the Department has required the
disclosure of the amounts and types of defaults, any legal proceedings resulting from such
defaults, whether a trustee or receiver has been appointed over the assets of the City, and
certain additional financial information, unless the City believes in good faith that such
information would not be considered material by a reasonable investor. The City is not and has
not been in default on any bond issued since December 31, 1975 which would be considered
material by a reasonable investor. The City has not undertaken an independent review or
investigation of securities for which it has served as conduit issuer. The City does not believe
that any information about any default on such securities is appropriate and would be
considered material by a reasonable investor in the Series 2011 Bonds because the City would
not have been obligated to pay the debt service on any such securities except from payments
made to it by the private companies on whose behalf such securities were issued and no funds of
the City would have been pledged or used to pay such securities or the interest thereon.
FINANCIAL ADVISOR
The Financial Advisor for the City is Raymond James & Associates, Inc., with offices
located at 111 N. Magnolia Avenue, Suite 1175, Orlando, Florida 32801.
UNDERWRITING
The Series 2011 Bonds are being purchased by [Senior Manager], on behalf of itself and
as representative of the co-managers, [Co-Managers] (collectively, the Underwriters), from the
City at an aggregate purchase price of $ (representing the par amount of the Series
2011 Bonds, plus net original issue premium of $ and less Underwriters Discount of $
). The Underwriters are obligated to purchase all the Series 2011 Bonds if any are purchased.
Following the initial public offering, the public offering prices may be changed from time to time
by the Underwriters
MISCELLANEOUS
The references, excerpts and summaries of all documents referredto herein do not
purport to be complete statements of the provisions of such documents, and reference is directed
to all such documents for full and complete statements of all matters of fact relating to the
Series 2011 Bonds, the security for the payment of the Series 2011 Bonds, and the rights and
obligations of holders thereof.
The information contained in this Official Statement involving matters of opinion or of
estimates, whether or not so expressly stated, are set forth as such and not as representations of
fact, and no representation is made that any of the estimates will be realized. Neither this
Official Statement nor any statement which may have been made verbally or in writing is to be
construed as a contract with the holders of the Series 2011 Bonds.
23
Item # 14
Attachment number 3 \nPage 29 of 35
The execution and delivery of this Official Statement by its Mayor and its City Manager
has been duly authorized by the City Council.
CITY OF CLEARWATER, FLORIDA
Frank Hibbard, Mayor
William B. Horne, II, City Manager
24
Item # 14
Attachment number 3 \nPage 30 of 35
APPENDIX A
GENERAL DESCRIPTION OF THE CITY AND SELECTED STATISTICS
Item # 14
Attachment number 3 \nPage 31 of 35
APPENDIX B
EXCERPTS FROM THE CITY'S COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
Item # 14
Attachment number 3 \nPage 32 of 35
APPENDIX C
CONFORMED COPY OF AMENDED ORDINANCE
Item # 14
Attachment number 3 \nPage 33 of 35
APPENDIX D
FORM OF CONTINUING DISCLOSURE CERTIFICATE
Item # 14
Attachment number 3 \nPage 34 of 35
APPENDIX E
FORM OF BOND COUNSEL OPINION
Item # 14
Attachment number 3 \nPage 35 of 35
APPENDIX F
REVENUE SUFFICIENCY ANALYSIS (RATE STUDY)
Item # 14
Attachment number 4 \nPage 1 of 6
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed
and delivered by the City of Clearwater, Florida (the "Issuer") in connection with the
issuance of its City's $[Bond Amount]* Stormwater System Revenue Refunding Bonds,
Series 2011 (the Series 2011 Bonds). The Series 2011 Bonds are issued pursuant to
the authority of and in full compliance with (a) the charter of the City, (b) the
Constitution and the laws of the State of Florida, particularly Chapter 166, Part II,
Florida Statutes, and other applicable provisions of law, and (c) Ordinance No. 6378-99
enacted by the City on April 15, 2002 (the Ordinance), as amended by Ordinance No.
6931-02, enacted by the City on July 18, 2002, as supplemented. The Issuer covenants
and agrees as follows:
SECTION 1. PURPOSE OF DISCLOSURE CERTIFICATE. This Disclosure
Certificate is being executed and delivered by the Issuer for the benefit of the Series
2011 Bondholders and in order to assist the original underwriters of the Series 2011
Bonds in complying with Rule 15c2-12(b)(5) promulgated by the Securities and
Exchange Commission ("SEC") pursuant to the Securities Exchange Act of 1934 (the
"Rule").
SECTION 2. PROVISION OF ANNUAL INFORMATION. Except as
otherwise provided herein, the Issuer shall provide to the Municipal Securities
Rulemaking Board (the "MSRB"), in the manner described in Section 4 hereof, to any
state information depository that is established within the State of Florida and with
which the Issuer is legally required to file the information set forth herein (the "SID"),
it being understood that no such SID is currently established in the State of Florida, on
or before April 30 of each year, commencing April 30, 2012 with the report for the 2011
Fiscal Year, the information set forth below in this Section 3. Notwithstanding the
immediately preceding sentence, to the extent any such information does not become
available to the Issuer before April 30 of any year, the Issuer shall provide such
information when it becomes available, but no later than one year following the end of
the Issuer's Fiscal Year.
(A) the Issuer's Comprehensive Annual Financial Report for the immediately
preceding Fiscal Year (the "CAFR"), which shall include the audited financial
statements of the Issuer for the immediately preceding Fiscal Ye prepared in
accordance with Generally Accepted Accounting Principles, as modified by applicable
State of Florida requirements and the governmental accounting standards
promulgated by the Government Accounting Standards Board; provided, however, if
the audited financial statements of the Issuer are not completed prior to April 30 of
any year, the Issuer shall provide unaudited financial statements on such date and
1
Item # 14
Attachment number 4 \nPage 2 of 6
shall provide the audited financial statements as soon as practicable following their
completion; and
(B) to the extent not set forth in the CAFR, additional financial information
and operating data of the type included with respect to the Issuer in the final official
statement prepared in connection with the sale and issuance of the Series 2011 Bonds
(as amended, the "Official Statement"), as set forth below:
1. Updates of the financial information set forth in the Officia
Statement under the subcaptions Rates, Fees and Charges and Historical Net
Revenues under the principal captions THE STORMWATER MANAGEMENT
SYSTEM ( in the case of the material under the caption Historical Net
Revenues, for the then-immediately preceding five fiscal years)
2. Description of any additional indebtedness payable in whole or in
part from the Net Revenues (as defined in the Ordinance)
3. Any other financial information or operating data of the type
included in the Official Statement which would be material to a holder or
prospective holders of the Series 2011 Bonds.
For purposes of this Disclosure Certificate, "Fiscal Year" means the period
commencing on October 1 and ending on September 30 of the next scceeding year, or
such other period of time provided by applicable law.
SECTION 3. REPORTING SIGNIFICANT EVENTS. The Issuer shall
provide to the MSRB and to the SID, if any, on a timely basis not in excess of 10
business days after the occurrence of the event, notice of any of the following events, if
such event is material with respect to the Series 2011 Bonds or the Issuer's ability to
satisfy its payment obligations with respect to the Series 2011 Bonds; provided,
however, to the extent the Issuer has provided notice of any such event to a
dissemination agent pursuant to any other undertaking executed by the Issuer in
accordance with the Rule (provided that such other dissemination agent is required to
file such notice with the MSRB properly identifying the Series 2011 Bonds by CUSIP
number as being subject to such notice), the Issuer's obligations as set forth in this
Section 3 shall be deemed to be satisfied:
(A) Principal and interest payment delinquencies;
(B) Non-payment related defaults;
(C) Unscheduled draws on the debt service reserve fund reflecting financial
difficulties;
2
Item # 14
Attachment number 4 \nPage 3 of 6
(D) Unscheduled draws on credit enhancement reflecting financial difficulties;
(E) Substitution of credit or liquidity providers, or their failure to perform;
(F) Adverse tax opinions, the issuance by the Internal Revenue Svice of
proposed or final determinations of taxability, Notices of Proposed Issue or other
material notices or determinations with respect to the tax status of the Series 2011
Bonds, or other material or events affecting the tax status of te Series 2011 Bonds;
(G) Modifications to rights of Series 2011 Bondholders;
(H) Calls on the Series 2011 Bonds;
(I) Tender offers with respect to the Series 2011 Bonds;
(J) Defeasance of the Series 2011 Bonds;
(K) Release, substitution, or sale of property securing repayment of the Series
2011 Bonds;
(L) Rating changes;
(M) Bankruptcy, insolvency, receivership or similar event of the Issuer (this
event is considered to occur when any of the following occur: the appointment of a
receiver, fiscal agent or similar officer for the Issuer in a proceeding under the U.S.
Bankruptcy Code or in any other proceeding under state or federa law in which a court
or governmental authority has assumed jurisdiction over substantially all of the assets
or business of the Issuer, or if such jurisdiction has been assumed by leaving the
existing governing body and officials or officers in possession but subject to the
supervision and orders of a court or governmental authority, or the entry of an order
confirming a plan of reorganization, arrangement or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the
assets or business of the Issuer);
(N) The consummation of a merger, consolidation, or acquisition involving the
Issuer or the sale of all or substantially all of the assets of the Issuer, other than in the
ordinary course of business, the entry into a definitive agreement to undertake such an
action or the termination of a definitive agreement relating to y such actions, other
than pursuant to its terms;
(O) Appointment of a successor or additional trustee or the change of name of
a trustee; and
(P) Notice of any failure on the part of the Issuer or any other Obligated
Person (as defined herein) to meet the requirements of Section 2
3
Item # 14
Attachment number 4 \nPage 4 of 6
The Issuer may from time to time, in its discretion, choose to provide notice of
the occurrence of certain other events, in addition to those listed in this Section 3, if, in
the judgment of the Issuer, such other events are material with respect to the Series
2011 Bonds, but the Issuer does not specifically undertake to commit to provide any
such additional notice of the occurrence of any material event except those events listed
above.
Whenever the Issuer obtains knowledge of the occurrence of a significant event
described in this Section 3, the Issuer shall as soon as possible determine if such event
would be material under applicable federal securities law to holders of Series 2011
Bonds, provided, that any event under clauses (A), (C), (D), (E), (F), (I), (J), (L), (M) or
(P) above will always be deemed to be material.
SECTION 4. SUBMISSION OF INFORMATION TO THE MSRB. The
information required to be disclosed pursuant to Sections 3 and 4 of this Disclosure
Certificate shall be submitted to the MSRB through its Electronic Municipal Market
Access system ("EMMA"). Subject to future changes in submission rules and
regulations, such submissions shall be provided to the MSRB, through EMMA, in
portable document format ("PDF") files configured to permit documents to be saved,
viewed, printed and retransmitted by electronic means. Such PDF files shall be word-
searchable (allowing the user to search for specific terms used within the document
through a search or find function available in a software package).
Subject to future changes in submission rules and regulations, at the time that
such information is submitted through EMMA, the Issuer, or any dissemination agent
engaged by the Issuer pursuant to Section 7 hereof, shall also provide to the MSRB
information necessary to accurately identify:
(A) the category of information being provided;
(B) the period covered by the CAFR and any additional financial
information and operating data being provided;
(C) the issues or specific securities to which such submission is related
or otherwise material (including CUSIP number, issuer name, state, issue
description/securities name, dated date, maturity date, and/or coupon rate);
(D) the name of any Obligated Person other than the Issuer;
(E) the name and date of the document being submitted; and
(F) contact information for the submitter.
4
Item # 14
Attachment number 4 \nPage 5 of 6
SECTION 5. NO EVENT OF DEFAULT. Notwithstanding any other
provision in the Ordinance to the contrary, failure of the Issuer to comply with the
provisions of this Disclosure Certificate shall not be considered an event of default
under the Ordinance; provided, however, any Series 2011 Bondholder may take such
actions as may be necessary and appropriate, including pursuing an action for
mandamus or specific performance, as applicable, by court order, to cause the Issuer to
comply with its obligations hereunder. For purposes of this Disclosure Certificate,
"Series 2011 Bondholder" shall mean any person who (A) has the power, directly or
indirectly, to vote or consent with respect to, or to dispose of ownership of, any Series
2011 Bonds (including persons holding Series 2011 Bonds through nominees,
depositories or other intermediaries), or (B) is treated as the owner of any Series 2011
Bond for federal income tax purposes.
SECTION 6. INCORPORATION BY REFERENCE. Any or all of the
information required herein to be disclosed may be incorporated reference from
other documents, including official statements or debt issues of the Issuer or related
public entities, which have been submitted to the MSRB and the SID, if any, or the
SEC. If the document incorporated by reference is a final official statement, it must be
available from the MSRB. The Issuer shall clearly identify each document
incorporated by reference.
SECTION 7. DISSEMINATION AGENTS. The Issuer may, from time to time,
appoint or engage a dissemination agent to assist it in carrying out its obligations
under this Disclosure Certificate, and may discharge any such agent, with or without
appointing a successor disseminating agent.
SECTION 8. TERMINATION. The Issuer's obligations under this Disclosure
Certificate shall terminate upon (A) the legal defeasance, prior redemption or payment
in full of all of the Series 2011 Bonds, or (B) the termination of the continuing
disclosure requirements of the Rule by legislative, judicial or administrative action.
SECTION 9. AMENDMENTS. Notwithstanding any other provision of this
Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any
provision may be waived, if such amendment or waiver is supported by an opinion of
counsel that is nationally recognized in the area of federal securities laws, to the effect
that such amendment or waiver would not, in and of itself, cause the undertakings
herein to violate the Rule if such amendment or waiver had been effective on the date
hereof but taking into account any subsequent change in or official interpretation of
the Rule.
SECTION 10. ADDITIONAL INFORMATION. Nothing in this
Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any
other information, using the means of dissemination set forth in this Disclosure
5
Item # 14
Attachment number 4 \nPage 6 of 6
Certificate or any other means of communication, or including any other information in
its annual information described in Section 2 hereof or notice of occurrence of a
significant event described in Section 3 hereof, in addition to that which is required by
this Disclosure Certificate. If the Issuer chooses to include any information in its
annual information or notice of occurrence of a significant event in addition to that
which is specifically required by this Disclosure Certificate, the Issuer shall have no
obligation under this Disclosure Certificate to update such information or include it in
its future annual information or notice of occurrence of a signiant event.
SECTION 11. OBLIGATED PERSONS. If any person, other than the
Issuer, becomes an Obligated Person (as defined in the Rule) relating to the Series
2011 Bonds, the Issuer shall use its best efforts to require such Obligated Person to
comply with all provisions of the Rule applicable to such Obligated Person.
Dated as of this day of November, 2011
ATTEST: CITY OF CLEARWATER,
FLORIDA
By: By:
City Clerk Mayor
6
Item # 14
Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Authorize the City of Clearwater to take over the maintenance of signage for Dunedin Pass and Mandalay Channel Aids To
Navigation, formerly a Coast Guard duty, at an estimated cost of $700 per year, and adopt Resolution 11-22.
SUMMARY:
The Dunedin Pass and Mandalay Channel has shoaled in and the Coast Guard is no longer able to safely navigate the channel to
maintain the seventeen aids to navigation. The county declined taking on the task due to lack of equipment and manpower. The area
is within the City jurisdiction.
If the city doesnt assume responsibility, the Coast Guard will pull the pilings with signage resulting in many vessels going
aground. Their removal will affect Clearwater residents of north beach and Island Estates, those launching from the Beach Recreation
Center, those using the Beach Recreation Center day docks and the day docks at the Island Way Grill.
The channel markers were rebuilt a year ago with pilings that cost approximately $300 each and will last on average fifteen
years. The combined signs and pilings will need ongoing replacement due to fading, damage due to storms, or being hit by
boaters. The estimated cost for the tug and crew, pilings and signs is approximately $700 per year depending on labor, cost of fuel
and materials.
The Marine and Aviation Department has no income stream to offset the cost of maintaining the Dunedin Pass and Mandalay
Channel and requests that the general fund provide the necessary funding.
Funding will be provided from the non-departmental program in the General Fund.
Appropriation code: 0-010-07000-5xxxxx-519-0000
Type:
Other
Current Year Budget?:Budget Adjustment:
YesNo
Budget Adjustment Comments:
Current Year Cost:Annual Operating Cost:
$700
Not to Exceed:Total Cost:
$700$700
For Fiscal Year:
11 to 12
Appropriation CodeAmountAppropriation Comment
0-010-07000-5xxxxx-519-$700
0000
Cover Memo
Review Approval:
Item # 15
Attachment number 1 \nPage 1 of 1
Item # 15
Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve referendum questions to appear on the ballot on January 31, 2012, regarding changes to the City Charter and pass
Ordinances 8296-11, 8297-11, and 8298-11 on first reading.
SUMMARY:
The Charter Review Committee is appointed by the City Council every five years to review the City Charter and
recommend changes thereto. This year's Charter Review Committee recommends the following changes:
Ordinance 8296-11 would require the Charter Review Committee to meet every six years instead of the current
every five years;
Ordinance 8297-11 would increase the number of consecutive terms a councilmember can serve from two to three;
Ordinance 8298-11 would require that a notice of the availability of the annual City audit be published.
Upon being adopted, each of these ordinances would be presented as a ballot question on the January 31, 2012
ballot for referendum vote by the citizens of the City of Clearwater. Each ordinance would become effective only
upon being approved at referendum.
Review Approval:
Cover Memo
Item # 16
Attachment number 1 \nPage 1 of 2
Item # 16
Attachment number 1 \nPage 2 of 2
Item # 16
Attachment number 2 \nPage 1 of 2
Item # 16
Attachment number 2 \nPage 2 of 2
Item # 16
Attachment number 3 \nPage 1 of 2
Item # 16
Attachment number 3 \nPage 2 of 2
Item # 16
Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Amend Section 2.263(1), Clearwater Code of Ordinances, to provide that the salaries of the Mayor and Councilmembers will not
increase in 2012 and pass Ordinance 8299-11 on first reading.
SUMMARY:
Pursuant to Section 2.263(1), Code of Ordinances, the salaries of the Mayor and Councilmembers automatically increase by the
annual social security cost of living adjustment or 2%, whichever is higher.
The Mayor and Councilmembers have determined that they will not accept an increase in salary this year due to financial
constraints.
This ordinance amends Section 2.263(1) to provide that the Mayor and Councilmembers' salaries will not increase in 2012.
Review Approval:
Cover Memo
Item # 17
Attachment number 1 \nPage 1 of 1
Item # 17
Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Provide direction to staff regarding proposed recommendations of the Business Task Force.
SUMMARY:
At the September 28, 2011 special meeting, City Council directed staff and the Business Task Force Executive
Committee to meet and discuss the Task Force recommendations and determine areas of agreement and
thth
disagreement. Staff and the Executive Committee met on October 13 and 20 and discussed all of the proposed
recommendations. Much time was spent on items needing further clarification and those where staff offered
alternative solutions. Staff and the Executive Committee are in substantial agreement with the proposed
recommendations and/or alternative recommendations. The most noteworthy ones agreed upon are as follows.
·
Changes to site plan application requirements outlined in Opportunity #2. The Executive Committee grees
with staff alternative which would:
o Require a tree inventory and grading plan only when development will impact trees;
o Require drainage calculations, pond size and location and narrative describing stormwater control
plan;
o Require a parking demand study only when the requested parking flexibility exceeds a certain
threshold; and
o Require a traffic impact study based on the current city policy.
·
Code amendments addressing changes of use, nonconforming site conditions and pavement. Staff and the
Executive Committee agree that code revisions will be developed to allow a significant number of these
issues to be reviewed and approved at the staff level instead of at a public hearing which requires a greater
amount of time for the developer but does not necessarily result in a different outcome.
·
The Executive Committee agrees that current staff levels could not support two DRC meetings a
month.
·
No changes to accessory hotel provisions or Beach by Design will be proposed.
Two areas have been identified for additional research/information. One is to get a legal opinion on the
application of Florida Statutes allowing private plan review as there is a disagreement with staffs interpretation of
Cover Memo
the provision. The other one is to get input from the Citys outside legal counsel on the issue of signage on
Item # 18
umbrellas. The Committee and Chamber representatives indicated that additional research and thought should be
given to electronic changeable message signs but at this time they are not proposing council allow them. However,
there was some discussion about the possibility of grandfathering existing signs with electronic message boards
and to such to change at a much more frequent rate e.g. every 15 seconds instead of every 6 hours.
The one recommendation that staff and the Executive Committee do not agree on is the allowance of sandwich
board signs throughout the city. Staff supports their use only along the Citys traditional urban corridors.
Attached please find updated spreadsheets containing the Business Task Force Recommendations and staff
responses. A new column titled Resolution has been added that outlines the solutions that have been developed
to the original recommendations or where no agreement could be reached.
Attachments:
Business Task Recommendation Recommendations and Staff Responses (revised Oct. 26)
Review Approval:
Cover Memo
Item # 18
Attachment number 1 \nPage 1 of 12
Attachment number 1 \nPage 2 of 12
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Attachment number 1 \nPage 4 of 12
Attachment number 1 \nPage 5 of 12
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Attachment number 1 \nPage 12 of 12
Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Outdoor Display
SUMMARY:
Review Approval:
Cover Memo
Item # 19
Meeting Date:
11/3/2011
City Council Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Homeless Leadership Network
SUMMARY:
Review Approval:
Cover Memo
Item # 20