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02/27/2012 CITY COUNCIL WORK SESSION MEETING MINUTES CITY OF CLEARWATER February 27, 2012 Present: Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember Jay E. Polglaze. Also Present: William B. Horne II - City Manager, Jill S. Silverboard - Assistant City Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, Nicole Sprague - Official Records and Legislative Services Coordinator To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Mayor George N. Cretekos called the meeting to order at 9:00 a.m. at City Hall. 1. Financial Services 1.1 Declare the list of vehicles and equipment surplus to the needs of the City: authorize disposal through sale to the highest bidder at the Tampa Machinery Auction, Tampa, Florida, and/or Manheim Auction, Clearwater, Florida; and authorize the appropriate officials to execute same. (consent) All vehicles and equipment have been replaced as necessary, or are no longer required. Tampa Machinery Auction is the Tampa Bay Purchasing Cooperative Auctioneer of Record. Tampa Machinery Auction holds a live auction monthly and accepts internet bids at the time of the live auction. Manheim Auction is a national auctioneer that is located in Pinellas County that sells vehicles and equipment both at a live auction and nationwide through the internet. This will be a test of the service of Manheim Auction to test the returns in comparison to Tampa Machinery Auction. Transportation costs will be greatly reduced due to the location. 2. Gas System 2.1 Approve an increase of$1,766,077 in the Clearwater Gas System Fiscal Year Council 2/27/2012 1 2011/2012 Dividend to the City General Fund; allocate $200,000 of this back to the Clearwater Gas System for investment in the Clearwater Neighborhoods Expansion Program to provide gas mains and services to Clearwater citizens; and allocate an additional $200,000 of this back to the Clearwater Gas System to speed the payoff of the Clearwater Natural Gas Vehicle Fueling Station. consent Clearwater Gas System (CGS) budgeted to pay a Fiscal Year 2011/2012 Dividend of$1,700,000 to the City General Fund. Based on City Council policy, the Gas System each year returns '/2 of its annual Net Income less debt service interest as a Dividend to the City in the following year. CGS's financial performance for Fiscal Year 2010/2011 exceeded our budget forecasts; therefore, CGS will pay an increase in the Fiscal Year 2011/2012 Dividend of$1,766,077, based on financial performance. Also, as it has been Council direction in the past several years to re-direct a portion of the CGS excess Dividend payments, when this is available, back to the CGS to accomplish the Clearwater Neighborhoods Expansion Program (CNEP). As of December 31, 2011, the City has invested $1,357,845 in this program to provide gas mains and services into Countryside, Coachman Ridge, and a number of up to 300 foot extensions throughout the City amounting to 12.4 miles of gas main and servicing 69 citizen accounts. During the 5 years of this CNEP Program, we have actually expended $784,310 (57.8% of the allocated funding) and have $573,535 (42.2% of the allocated funding) remaining available to invest in new gas mains and services. The last CNEP funding was $100,000 in January 2010. We are recommending that the City Council allocate $200,000 of the added CGS Dividend payment back to CGS to add to the CNEP funding and perpetuate this program to benefit our citizens by making clean and economical natural gas available to their homes. Finally, Clearwater Gas has invested approximately $2.0 Million in the construction of the new Clearwater Natural Gas Vehicle (NGV) Filling Station. Of this, we are expecting a $450,000 reimbursement from the State Energy Office, and we have recovered $540,733 in Energy Conservation Adjustments from our customers to fund this. We are recommending that the City Council allocate another$200,000 of the added CGS Dividend payment back to CGS to accelerate the recovery of the NGV Filling Station capital costs, which will ultimately reduce the cost of this NGV fuel for our City Fleet as well as our customers. Therefore, after these 2 recommended allocations of$400,000 in total, there would still remain a net of$1,366,077 in increased funding to the City's General Fund reserve. A first quarter budget amendment will reflect the transfer of$1,766,077 from the Clearwater Gas System to the General Fund to reflect the increased dividend Council 2/27/2012 2 payment from the Clearwater Gas System to the City's General Fund. In addition, if approved, first quarter budget amendments will reflect the transfer of$400,000 of General Fund revenues from the General Fund Non-Departmental program with $200,000 transferred to capital project 315-96385, Gas Main Extensions, and $200,000 transferred to capital project 315-96387, Natural Gas Vehicles. In response to a question, Clearwater Gas System Managing Director Chuck Warrington said individuals interested in obtaining natural gas residential service should contact the sales office. Savings realized through converting the city's fleet to CNG will increase the transfer to the General Fund. 2.2 Award a contract (purchase order) to Elster American Meter in the amount of $453,000.00 for gas meters and regulators from April 1, 2012 through March 31, 2013 and authorize the appropriate officials to execute same. (consent) Elster American Meter was awarded a contract last year as the lowest, most responsive, and responsible bidder who met the specifications for Bid 10-11. This is the first rollover of that contract, as they have agreed in writing to extend current pricing and terms for another year. The meters purchased will be used for new customers as well as replacing exiting meters that have reached the end of their useful life. Material is code approved, and the meters and regulators will be used on the Clearwater Gas System distribution system. Funding is available in Gas Meter Change-out Pinellas 315-96367 and Gas Meter Change-out Pasco 315-96379 in the Clearwater Gas System budget. 2.3 Award a contract (purchase order) to General Utilities Pipe and Supply in the amount of$417,000.00 for gas polyethylene pipe and fittings from April 1, 2012 through March 31, 2013 and authorize the appropriate officials to execute same. consent General Utilities Pipe and Supply was the lowest, most responsive, and responsible bidder who met specifications for Bid 08-12 lines 1-66 and 72-100 with an actual bid of$416,273.26. Consolidated Pipe and Supply was the lowest, most responsive bidder who met specifications for Bid 08-12 lines 67-71 with an actual bid of$32,690.00. A contract (purchase order) in the amount of$33,000.00 will be awarded by the City of Clearwater Purchasing Manager. Council 2/27/2012 3 This polyethylene pipe will be used in the Clearwater Gas System distribution system for mains and service lines. Funding is available in Pinellas New Mains and Service Lines 315-96377 and Pasco New Mains and Service Lines 315-96378 in the Clearwater Gas System budget. 2.4 Award a contract (purchase order) to General Utilities Pipe and Supply in the amount of$449,000.00 for gas steel pipe and fittings from April 1, 2012 through March 31, 2013 and authorize the appropriate officials to execute same. consent General Utilities Pipe and Supply was the lowest, most responsive, and responsible bidder who met specifications for Bid 12-12 lines 1-14, 41-43, 67-93, 96-128, and 133-160 with an actual bid of$448,963.26. Consolidated Pipe and Supply was the lowest, most responsive, and responsible bidder who met specifications for Bid 12-12 lines 15-40, 44-49, 94-95, and 129- 132 with an actual bid of$10,513.46. A contract (purchase order) in the amount of $11,000.00 will be awarded by the City of Clearwater Purchasing Manager. Lehman Pipe and Plumbing was the lowest, most responsive, and responsible bidder who met specifications for Bid 12-12 lines 50-66 with an actual bid of $14,645.35. A contract (purchase order) in the amount of$15,000.00 will be awarded by the City of Clearwater Purchasing Manager. This steel pipe will be used in the Clearwater Gas System distribution system for mains and service lines. Funding is available in Pinellas New Mains and Service Lines 315-96377 and Pasco New Mains and Service Lines 315-96378 in the Clearwater Gas System budget. 3. Human Resources 3.1 Authorize the increase of Blanket Purchase Order BR507907 awarded by the City's Purchasing Manager from $50,000 to $175,000 in accordance with the contract between the City and MHNet of Florida for employee and retiree Employee Assistance Program and Mental Health/Chemical Dependencv benefits for the period from January 1, 2012, to December 31, 2012 and extend the award through December 31, 2015 in the amount not to exceed $200,000 Per year for the payment of associated premiums. (consent) Council 2/27/2012 4 The City renewed its agreement with MHNet of Florida for Employee Assistance Program and Mental Health/Chemical Dependency benefits in 2011. The agreement was for a term of one-year, after which the agreement renews automatically for subsequent one-year periods. This request is to increase Purchase Order BR507907 awarded by the City's Purchasing Manager from $50,000 to $175,000 for the period from January 1, 2012 through December 31, 2012, and to extend the award of a Purchase Order for an additional three-year period through December 31, 2015 at a cost not to exceed $200,000 per year for the payment of associated EAP and MHCD premiums. Consistent with the provisions for a Blanket Purchase Order, funds pertaining to this request will not be encumbered until they are used. Funds for EAP services have already been approved through the normal budget process and no additional funds are required. In response to a question, Human Resources Director Joe Roseto said staff anticipates the annual budget will remain at $175, 000 next year; any increases would be included in the budget process. 3.2 Approve the agreement reached by the City with International Association of Firefighters Local 1158 for proposed changes to the City Employees Pension Plan and authorize the development of an actuarial impact statement by the City's actuary and subsequent submittal to the Florida State Division of Retirements for review of same. (consent) Changes to the current City Employees' Pension Plan benefit provisions are being sought by the City due to significant increases in the City's required pension contribution levels from fiscal year 2000 to present. During that period of time, the City's actuarially determined required contribution has increased from seven percent of covered payroll (approximately four million dollars) to almost twenty- five percent of covered payroll (approximately eighteen million dollars). These costs are projected by the City's actuary to continue to increase during the next five years. The City has already reached agreement on changes to the Pension Plan with the Fraternal Order of Police bargaining unit and with Communications Workers of America Local 3179. The City reached a tentative agreement with International Association of Firefighters Local 1158 on these same changes and the agreement was ratified by the membership on February 17, 2012 as part of a package deal that included a new three-year contract for the bargaining unit. The agreements by the parties, if ultimately approved by voter referendum, would result in changes to the following City Employees' Pension Plan provisions: Council 2/27/2012 5 For sworn IAFF employees not eligible to retire as of the effective date: The employee pension contribution would be increased from 8% to 10% of salary. Any overtime exceeding 300 hours per year accrued for years of service after the effective date of the change would not be included in pensionable earnings. There would be no Cost-of-Living Adjustment for all pensionable earnings after the effective date of the change. For all IAFF employees: Employees could choose to receive 10%, 20%, or 30% of their total pension benefit in a one-time lump sum payment directly upon retirement. Employees would be permitted to return to full-time employment with the City in a different job classification and would participate in Social Security while receiving their pension benefit. Employees would be able to name a beneficiary and choose their benefit payment option at any time up to retirement. These changes along with those already approved for other employees, if approved, are expected to result in an immediate annual reduction of the City's Pension contribution of $4.9 million, and a savings over the next 30 years of approximately $400 million. 3.3 Approve the collective bargaining agreement as negotiated between the City of Clearwater and the International Association of Firefighters for Fiscal Years 2012/13, 2013/14, and 2014/15 and authorize the appropriate officials to execute same. (consent) The current collective bargaining agreement between the City of Clearwater and the International Association of Firefighters Local 1158 bargaining unit will expire on September 30, 2013. City management staff and union representatives have had ongoing discussions regarding a new collective bargaining agreement in conjunction with negotiations over proposed changes to the City Pension Plan. The parties reached a tentative agreement for a new contract as part of a package deal that included the proposed Pension Plan changes. The bargaining agreement and proposed Pension Plan changes were subsequently submitted by the Union to its bargaining unit, which ratified the agreement on February 17, 2012. The agreement results in the voiding of the last year of the current contract and a new three-year contract which will commence on October 1 st 2012 and run through September 30, 2015. The agreement provides for no general wage increase but allowing instead for merit step increase advancement only in the first year and in the third year, and providing for a 2.5% across-the-board general wage increase with no step advancement in the second year. There are no other significant changes to the existing contract language. Costs will be included in the proposed budgets for each year of the agreement. The costs associated with the implementation of this agreement are anticipated to be approximately as follows: Fiscal Year 2012/2013 (Steps only): $162,000 Fiscal Year 2013/2014 (GWI Council 2/27/2012 6 only): $248,000Fiscal Year 2014/2015 (Steps only): $166,000 TOTAL: $576,000 Staff was directed to provide Council a bulleted summary of the pension changes for each bargaining unit. 4. Parks and Recreation 4.1 Approve increasing a blanket purchase order to Mid Pinellas Umpire Assoc. (BR 507726) from $50,000 to $200,000 for providing umpiring and scorekeeper services for recreation leagues and tournaments held in Clearwater through December 31, 2012 according to Bid 05-12 and authorize the appropriate officials to execute same. (consent) As part of a cost reduction measure, the Parks and Recreation Department began to contract out umpiring and scorekeeper services. Prior to this City staff was responsible to train, hire, schedule and supply umpires and scorekeepers for all softball games held in Clearwater. Bids were solicited for a period of one year and a BPO was issued for $50,000 to handle the City leagues. Unfortunately, this amount is not enough to cover additional commitments and costs associated with tournaments held in Clearwater that need umpiring and scorekeeper services. The USF Series of tournaments will require over$55,000 of umpiring services. Therefore, staff is requesting the increase needed in order to accommodate this tournament and others to be held in Clearwater prior to December 31, 2012. This will provide funding for the estimated 2,333 games to be played prior to the end of the year. The costs for these services are paid for by user fees that are charged to the teams. Revenues therefore offset the costs associated with this BPO. In response to questions, Parks and recreation Director Kevin Dunbar said the fees charged for the adult softball leagues and collegiate events cover the operating costs. During the next few weeks, 40% of the Division 1 College Softball Programs will be coming to Clearwater in preparation of the college season. 4.2 Approve Agreement between the School Board of Pinellas County and the City of Clearwater through August 23, 2013 for the City to utilize Pinellas County School buses, at a cost of$1.25 per mile plus $26.50 per hour, for a total estimated cost of$50,000 and authorize the appropriate officials to execute same. (consent) Council 2/27/2012 7 The Parks and Recreation Department organizes field trips requiring bus transportation for participants. The Pinellas County School System (PCSS) allows municipalities to utilize their fleet of buses and drivers for$1.25 per mile plus $26.50 per hour for driver with a four-hour booking minimum. During the summer of 2012, the department will organize approximately 130 field trips that could utilize school bus transportation. Comparing a sampling cost of school buses for these trips against the use of private bus lines indicates school buses are a less costly mode of transportation, in most cases. During the past year the department utilized the school buses for our field trips at a cost of $25,000, with the per mile and per hour charge the same as proposed in this agreement. Approval of this Agreement will provide staff with a larger number of options when determining the most cost effective source of transportation for participants. The attached Agreement is similar to Agreements between the Pinellas County School Board and other Pinellas County municipalities that utilize school bus transportation. The Recreation Programming Division's Operating Budget contains sufficient funds to cover the costs associated with this Agreement. 5. Police 5.1 Approve the appointment of Jeffrey DiVincent to the Board of Trustees, Clearwater Police Supplementary Pension Plan, with term ending February 1, 2016. (consent) In keeping with the provision of Florida Statute 185.05, which states in part, "The fifth member shall be chosen by a majority of the previous four members, and such person's name shall be submitted to the legislative body of the municipality. Upon receipt of the fifth person's name, the legislative body shall, as a ministerial duty, appoint such person to the board of trustees as its fifth member..." At a meeting of the Board of Trustees held on December 9, 2011, Jeffrey DiVincent agreed to serve a full four-year term as Trustee. Mr. DiVincent is a Clearwater police officer with over 17 years experience and has agreed to serve for the term February 1, 2012 through February 1, 2016. 6. Solid Waste/General Support Services 6.1 Approve a Contract (Blanket Purchase Order) to Wingfoot Commercial Tire of Clearwater, FL, for an amount not to exceed $380,000, for the purchase of Goodyear tires for city motorized equipment during the period March 1, 2012 through February 28, 2013, in accordance with Sec. 2.560)(d), Code of Ordinances - other governmental bid, and authorize the appropriate officials to Council 2/27/2012 8 execute same. (consent) This Blanket Purchase Order is a piggyback of the Florida State Contract 863- 000-10-1 and covers the purchase of several different sizes of tires for use on all City vehicles. 7. Engineering 7.1 Approve the purchase contract for the purchase of real property at 1315 N. Betty Lane, Clearwater with a purchase price of$60,000 and total expenditures not to exceed $60,500 including closing costs; and authorize the appropriate officials to execute same, together with all other instruments required to affect closing. consent The property is situated in a strategic location along Stevenson's Creek adjacent to a small City-owned park and sanitary lift station on the Creek's bank. It is located at the convergence point of Stevenson's Creek and Spring Branch of Stevenson's Creek where a build-up of sediment occurs at a faster rate than at other locations along the Creek. These conditions create the need for periodic dredging to maintain stormwater flows. Currently the City has no access rights to this portion of the Creek to perform its maintenance obligations. The City's dredging activities have been infrequent as staff is reliant on acquiring temporary rights of access from private property owners. Costs for such temporary access rights and prices to acquire permanent easement rights have historically been high. This portion of the waterway is currently in need of maintenance dredging. Sufficient budget and revenue is available in Capital Improvement Program project 0315-96168, Storm System Expansion to fund the Property purchase and miscellaneous closing costs. In response to questions, Environmental Manager Ed Chesney said the park designated on the map is a passive park with no structures or facilities. There is a two-story structure on the lot being acquired and being declared unsafe by the City. Mr. Chesney said the site may be a good location for a kayak/canoe launch; staff is considering possibility. The purchase price does not include demolition costs, which is expected to be approximately $20,000. Council 2/27/2012 9 8. Official Records and Legislative Services 8.1 Appoint one member to the Library Board to fill the remainder of an unexpired term until February 28, 2013. There was consensus to appoint Ms. Barbara Blakely. 8.2 Appoint councilmembers as representatives on Regional and Miscellaneous Boards. There was consensus to make the following appointments: Mayor George N. Cretekos —American Public Gas Association, Barrier Island Governmental Council (Voting Delegate), Suncoast League of Cities Board (Alternate Member), Tampa Bay Partnership Policy Board, Convention Visitors Bureau, Florida League of Mayors, Mayors Council of Pinellas County, and U.S. Conference of Mayors. Vice Mayor Paul Gibson — Barrier Island Governmental Council (Alternate Member), Pinellas Collaborative Committee, School Transportation Safety Committee, Tampa Bay Estuary Policy Board, Tampa Bay Partnership Policy Board (Alternate Member), and Pension Advisory Committee, Downtown Development Board (Ex-Officio Member), and Sister Cities Advisory Board. Councilmember Doreen Hock-DiPoito — Pension Advisory Committee, Tampa Bay Regional Planning Council, Metropolitan Planning Organization/Pinellas Planning Council. Councilmember Bill Jonson — Courtney Campbell Scenic Highway Citizen Advisory Committee, Suncoast League of Cities, Pension Advisory Committee, and Pinellas Suncoast Transit Authority. Councilmember Jay Polglaze — Homeless Leadership Board, Downtown Development Board (Ex-Officio Member) and WorkNet Pinellas Board. The City Manager said the unification of the MPO/PPC will be effective August 2012; the boards will meet as two separate groups until the unification is effective. 8.3 Provide direction regarding the City Council Advisory Board Appreciation Event. WSO) Staff was directed to proceed with planning the event, to be held after April 15, 2012. It was suggested that BJ's Restaurant be contacted for a quote. 9. Legal Council 2/27/2012 10 9.1 Adopt Ordinance 8312-12 on second reading, amending the Community Development Code adding schools as an allowable use within the Commercial (C) District. 9.2 Adopt Ordinance 8311-12 on second reading, amending the Clearwater Comprehensive Plan to add charter schools to the definition of public educational facilities and to allow public educational facilities in three additional land use categories. 9.3 Approve amendments to the Code of Ordinances regulating pedicabs and low speed vehicles for hire, and pass Ordinance 8314-12 on first reading. An increasing number of businesses have begun operating within the City of Clearwater, thus far solely on Clearwater Beach, whereby the businesses are providing public transportation on pedicabs (vehicles propelled solely by human power) and on low-speed, golf-cart type vehicles or are renting a variety of recreational vehicles, such as low-powered motorcycles, electric personal assistive mobility devices, surrey bicycles, and mopeds. However, minimal regulations currently exist to ensure that the businesses are adequately insured, that the businesses are maintaining the vehicles in safe-operating condition, and that the drivers of the pedicabs and low speed for hire vehicles are not likely to be a danger to the public. Regulations will promote the health, safety, and welfare of the public by placing an obligation on the business owners to obtain adequate insurance in case of an accident, to maintain the vehicles used in the business in a safe-operating condition, and to ensure that the drivers in their employ are not likely to be a danger to the public; and regulation of this activity will promote the health, safety, and welfare of the public by creating a regulatory mechanism by which the owners of the business and the drivers in their employ could have their ability to conduct business within the City of Clearwater revoked if the business owners or their drivers fail to adhere to the Florida Statutes and City ordinances pertaining to the operation of the business or the operation of the pedicabs or low- speed for hire vehicles. The Council recessed from 10:19 a.m. to 10:25 a.m. Assistant City Attorney Rob Surette reviewed changes made since the last council meeting: Sec. 25.02(1) and (2) was amended to require any fares charged by the drivers of pedicabs and low-speed vehicles to be conspicuously posted in or on the pedicab or low-speed for hire vehicle; Sec. 25.02(3) was amended to prohibit drivers of Council 2/27/2012 11 surrey bicycles from driving in the roundabout on Clearwater Beach; and Sec. 25.14(11) was amended to prohibit drivers of pedicabs and low-speed for hire vehicles from obstructing vehicular traffic while picking up or unloading passengers. In response to questions, Mr. Surette said surrey bikes may lawfully, under Florida Statutes, operate on the sidewalk and roadway. PSTA buses can lawfully stop at designated bus stops; drivers must yield to the buses. A Segway is considered an electric personal assistance mobility device and is not allowed on the roadway. The City Attorney said the effective date of the ordinance will be based on second reading; Council may provide a 30-day grace period. It was suggested that the ordinance be effective on a Monday. In response to questions, Mr. Surette said the commercial use of pedicabs may be regulated; the regulation does not need to be citywide. Mr. Surette said there is not a limit to the number vehicles operating under one BTR. The City Attorney said a pedicab and recreational vehicle describe the use, while surrey describes the design and type. Council can regulate where pedicabs can operate based on safety. 10. City Manager Verbal Reports — None. 11. Council Discussion Items 11.1 50th Anniversary Tampa Bay Regional Planning Council Draft Proclamation - Councilmember Jonson Councilmember Bill Jonson requested consideration to draft a proclamation for the 50th anniversary of Tampa Bay Regional Planning Council. Staff was directed to draft a proclamation. 11.2 Pinellas County Family Court Consolidation - Mayor Cretekos Mayor George Cretekos said Pinellas County is consolidating the family law division to the 49 Street Criminal Justice Center Complex and expressed concerns regarding the tremendous economic impact to downtown Clearwater. The City Attorney said the Clearwater and St. Petersburg Bar Associations have not taken a position yet but are looking at the impact on the proposed changes. The Pinellas County Commission will be discussing the matter on February 28, 2012. Pinellas County expanded the boundary of the county seat to include the area where Council 2/27/2012 12 the Pinellas County Sheriff's office is located. Clearwater will remain the county seat until Pinellas County takes steps to change that. It was requested that staff provide a copy of the county consolidation report. 11.3 Spay/Neuter Animals - Mayor Cretekos The City Attorney said many individuals have expressed an interest to the Mayor that the City require animals be spayed/neutered to the Mayor. Pinellas County has control, by charter, of animal control. An ordinance requiring animals to be spayed/neutered should be drafted by the County. 11.4 Work Session Start Times - Councilmember Polglaze Councilmember Jay Polglaze requested consideration to move the work session start times to 1:00 p.m. There was consensus to move the work session start times to 1:00 p.m. effective April 2, 2012. 11.5 Outdoor Dining Along Beachwalk Promenade - Vice Mayor Paul Gibson Councilmember Paul Gibson received a letter from the Clearwater Beach Chamber supporting outdoor dining, as there is space that is not well utilized on the east side of Beachwalk. Staff was directed to provide Council with an outline of changes needed and timeframe. 12. Closing Comments by Mayor Mayor George Cretekos expressed condolences to the Hamilton Family for their recent loss. 13. Adjourn The meeting was adjourned at 11:43 a.m. Council 2/27/2012 13