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04/30/2012WORK SESSION AGENDA Council Chambers — City Hall 4/30/2012 — 1:00 PM 1. Presentations 1.1 City's Annual Financial Report for Fiscal Year 2011 � Attachments 2. Human Resources 2.1 Authorize renewal of the contract with Company Care for services including employee and pre— employment drug and alcohol testing, and pre—employ�nent and annual employee physicals for a not to eXCeed amount of $50,000 per year and authorize the appropriate officials to execute same. (consent) � Attachments 3. Information Technology 3.1 Award a contract to GSA Security Inc., Lutz, Florida, in the amount of $210,000 for the purchase and installation of Milestone Video Management and Monitoring System and cameras to support various city facilities, in accardance with Section 2.564(1)d), Code of Ordinances — Other Governmental Bid (contr�t with Pinellas County School Board contract 10-968683); and approve a transfer from retained earnings of the Administrative Services Fund in the amount of $105,000. (consent) � Attachments 4. Marine and Aviation 4.1 Approve the Conditional Assignment of Lease for room 8 in the Municipal Beach Marina from Bruce Littler, d/b/a Jolly Roger Coffee and Ice Cream, to Anthony Ferrandino, d/b/a Jolly Roger Coffee and Ice Cream and authorize the appropriate officials to execute same. (consent) � Attachments 5. Parks and Recreation 5.1 Approve the Tenth Amendment between the Chi Chi Rodriguez Youth Foundation, Inc. (Foundation) and the City of Clearwater (City) for the operation of the Chi Chi Rodriguez Golf Course and Driving Range and authorize the appropriate officials to execute same. (consent) � Attachments 5.2 Approve an Exclusive Non—Alcoholic Beverage Agr�ment with Coca—Cola Refreshments USA, Inc., in accordance with Request for Proposals 28-11, to pra�ide full service beverage vending machines and products within city facilities, approve a Termination, Release and Indemnity Agreement, terminating the current Exclusive Non—Alcoholic Beverage Agreementwith Coca—Cola Enterprises, Inc. and authorize the appropriate officials to execute same. (consent) � Attachments 6. Police 6.1 Approve submission of Department of Justice, Bureau of Justice Assistance (DOJBJA) Edward Byrne Memarial Justice Assistance Grant application in the amount of $60,658 and an additional .75 Full Time Equivalent Position. (consent) � Attachments 7. Solid Waste/General Support Services 7.1 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 May 1, 2012 through Apri130, 2013, in accordance with Sec. 2.56(1)(d), Code of Ordinances — other governmental bid, and authorize the appropriate officials to eXecute same. (consent) � Attachments 7.2 Approve a Contract (Blanket Purchase Order) to Honeywell International Inc. — Building Solutions of Chicago, IL for an amount not to eXCeed $140,000 for the quarterly Maintenance Fees for the period May 1, 2012 through Apri130, 2013, per the contracts dated Nov. 17, 2008 and April 28, 2010 and authorize the appropriate officials to execute same. (consent) � Attachments 8. Public Utilities 8.1 Award a new contract (purchase order) to Xylem, Inc. of Apopka, Florida in the amount of $375,000.00 for Flygt Pumps, replacement parts and factory autharized service for the contract period of May 3, 2012 to April 30, 2014, and autharize the appropriate officials to eXecute same. (consent) � Attachments 9. Engineering 9.1 Approve a proposal by Construction Manager at Risk Biltmore Construction Co., Inc. of Belleair, Florida, in the amount of $281,540.04 for the rehabilitation of three vehicular bridges in the City of Clearwater, which includes all labor and material costs to complete the rehabilitation, and authorize the appropriate officials to execute same. (consent) � Attachments 9.2 Approve the Cooperative Funding Agreement between Southwest Florida Water Management District (SWFWMD) and the City of Clearwater for the gabion project on the Jeffards Street Channel in Stevenson Creek in the amount of $600,000 and authorize the appropriate officials to execute same. (consent) � Attachments 10. Planning 10.1 Approve amendments to the Community Development Code providing density and parking incentives for affordable housing developments, and pass Ordinance 8313-12 on first reading. (TA2012-01001) � Attachments 11. Official Records and Legislative Services 11.1 Disband the Clearwater Greenprint Steering Committee. (consent) � Attachments 12. Legal 12.1 Oppose the relocation of Family Court from downtown Clearwater to the Criminal Justice Center and pass Resolution 12-10. � Attachments 12.2 Adopt Ordinance 8316-12 on second reading, amerrling the future land use plan element of the Comprehensive Plan of the city to change the land use for certain real property whose post office address is 3043 and 3047 Cleveland Street from Residential Urban (RU) to Institutional (I). � Attachments 12.3 Adopt Ordinance 8317-12 on second reading, ame�ling the Zoning Atlas of the city by rezoning certain real property whose post office address is 3043 and 3047 Cleveland Street from Low Medium Density Residential (LMDR) to Institutional (I). � Attachments 12.4 Discuss allowing golf carts in Clearwater Beach and Island Estates (WSO) � Attachments 13. City Manager Verbal Reports 13.1 City Manager Verbal Reports � Attachments 14. Closing Comments by Mayor 15. Adjourn 16. Presentation(s) for Council Meeting 16.1 End of Session Report — Rep. Hooper � Attachments 16.2 Florida League of Cities Legislative Appreciation Award � Attachments 16.3 Safe Boating Week Proclamation May 19th — 25th � Attachments 16.4 Older Americans Month Proclamation — recipientis Beverly Burton, ADRC Director from the Area Agency on Aging � Attachments 16.5 Youth Sports Awards � Attachments 16.6 The Mayors Cup Game � Attachments 16.7 Parks and Recreation Advisory Board Presentation — Ray Shaw � Attachments Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: City's Annual Financial Report for Fiscal Year 2011 SUMMARY: Meeting Date:4/30/2012 The City's external auditors, Mayer Hoffinan McCann P.C., will present the Comprehensive Annual Financial Report (CAFR) and the results of the City's audit for Fiscal Year 201 I. Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo Item # 1 CITY OF CLEARWATER, FLORIDA �:`c�AI.�F ryf� �� � c�.'���' � �Q � .r; �p� .� _w �� _9 , - ,p , = � ��` O',� ii�/�� \ =-_qTER� ,�' --..., i � COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR F'ISCAL YEAR ENDED SEPTEMBER 30, W�^ f� This Page Intentionally Left Blank Attachment number 1 \nPage 2 Item # 1 Attachment number 1 \nPage 3 City of Clearwater, Florida Comprehensive Annual Financial Report for Fiscal Year Ended September 30, 2011 Frank V. Hibbard Mayor George N. Cretekos John P. Doran Paul E Gibson Bill Jonson Councilmember Councilmember Councilmember Councilmember Wllliam B. Horne II City Manager Brian Jay Ravins Finance Director Prepared by: City of Clearwater Finance Depart7nent � te m# � City of Clearwater, Florida Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2011 TABLE OF CONTENTS INTRODUCTORY SECTION: Attachment number 1 \nPage 4 Title Page and List of Elected and Appointed Officials .......................................................................................... i Letterof Transmittal ............................................................................................................................................... v Certificate of Achievement for Excellence in Financial Reporting ....................................................................... ix OrganizationalChart .............................................................................................................................................. x FINANCIAL SECTION: IndependentAuditors' Report ......................................................................................................................... Management's Discussion and Analysis ........................................................................................................ Basic Financial Statements: Government-wide Financial Statements: Statementof Net Assets ........................................................................................................................ Statementof Activities ............................................................................................................................ Fund Financial Statements: 1 3 18 19 Balance Sheet — Governmental Funds ..................................................................................................... 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets ...............21 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds..........22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities .................................................................. Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Non-GAAP Basis) — General Fund ............................................................. Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (GAAP Basis) — Special Development Fund ................................................ Statement of Net Assets — Proprietary Funds ................................................................................. Statement of Revenues, Expenses, and Changes in Fund Net Assets — Proprietary Funds........ Statement of Cash Flows — Proprietary Funds ................................................................................ Statement of Fiduciary Net Assets — Fiduciary Funds .................................................................... Statement of Changes in Fiduciary Net Assets - Fiduciary Funds .................................................. Notes to the Basic Financial Statements ............................................................................................. Required Supplementary Information - Pension Trust Funds: Schedules of Funding Progress .......................................................................................................... Schedules of Employer Contributions ................................................................................................. Notes to Schedules of Required Pension Supplementary Information .............................................. Required Supplementary Information — Other Post-Employment Benefits: Schedule of Funding Progress ............................................................................................................ 23 24 ......... 25 ......... 26 ......... 30 ......... 34 ......... 38 ......... 39 .........40 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet — Nonmajor Governmental Funds ............................................................... Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds ............................................................................................................ Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (GAAP Basis) — Community Redevelopment Agency Special Revenue Fund .... Combining Statement of Net Assets — Nonmajor Enterprise Funds ...................................................... Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - NonmajorEnterprise Funds ................................................................................................................... Combining Statement of Cash Flows - Nonmajor Enterprise Funds ..................................................... Combining Statement of Net Assets — Internal Service Funds .............................................................. ii .... 86 .... 87 .... 88 .... 89 .... 94 .... 96 .... 99 ..102 ..104 ..106 ..112 Item # 1 Attachment number 1 \nPage 5 City of Clearwater, Florida Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2011 TABLE OF CONTENTS (Continued) Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets — Internal Service Funds .................................................................................................................... Combining Statement of Cash Flows — Internal Service Funds ...................................................................... Combining Statement of Fiduciary Net Assets — Fiduciary Funds .................................................................. Combining Statement of Changes in Fiduciary Net Assets — Fiduciary Funds ......................................... Statement of Changes in Assets and Liabilities — Treasurer's Escrow Agency Fund ............................... Supplementary Information: Continuing Disclosure — Gas System Revenue Bonds, Series 2004, 2005, and 2007 ............................ Continuing Disclosure — Water & Sewer Revenue Bonds, Series 2002, 2003, 2006, 2009A and 2009B Continuing Disclosure — Stormwater System Revenue Bonds, Series 2002, 2004, and 2005 ................. FireServices Program ................................................................................................................................. STATISTICAL SECTION: Introduction.................................................................................................. Schedule 1 Net Assets by Component .......................................................................... Schedule 2 Changes in Net Assets ............................................................................... Schedule 2a Program Revenues by Function/Program .................................................. Schedule 3 Fund Balances of Governmental Funds ..................................................... Schedule 4 Changes in Fund Balances of Governmental Funds ................................. Schedule 5 Assessed Value and Estimated Actual Value of Taxable Property .......... Schedule 6 Direct and Overlapping Property Tax Rates .............................................. Schedule 7 Property Tax Levies and Collections .......................................................... Schedule 8a Principal Real Property Taxpayers ............................................................. Schedule 8b Principal Personal Property Taxpayers ...................................................... Schedule 9 Ratios of Outstanding Debt by Type .......................................................... Schedule 10 Ratios of General Bonded Debt Outstanding ............................................. Schedule 11 Direct and Overlapping Governmental Activities Debt ............................... Schedule 12 Legal Debt Margin Information ................................................................... Schedule 13 Pledged-Revenue Coverage ...................................................................... Schedule 14 Demographic and Economic Statistics ....................................................... Schedule 15 Principal Employers .................................................................................... Schedule 16 Full-time Equivalent City Government Employees by Function/Program . Schedule 17 Operating Indicators by Function/Program ................................................ Schedule 18 Capital Asset Statistics by Function/Program ............................................ SINGLE AUDIT / GRANTS COMPLIANCE SECTION: .................................... .................................... .................................... 113 114 118 119 120 ......122 ......127 ......130 ......131 133 135 136 139 140 141 142 143 144 145 ..........................................146 ..........................................147 ..........................................148 ..........................................149 ..........................................150 ..........................................151 ..........153 ..........154 ..........155 ..........156 ..................157 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government AuditingStandards ...................................................................................................................................... Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance 161 With OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General of the State of Florida ....................163 Schedule of Expenditures of Federal Awards and State Financial Assistance Projects ............................................165 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Projects ..............................168 Schedule of Findings and Questioned Costs ................................................................................................................169 ManagementLetter ........................................................................................................................................................171 Item # 1 iii Attachment number 1 \nPage 6 This Page Intentionally Left Blank Item # 1 iv ���� '�`` � sa�rmrrea�. le�;e� . �,�. ��;;,,i;; ��e � - �y�� ��y�-� , Crrv M,�:Nn<,�a March 30, 2012 Attachment number 1 \nPage 7 r\ '�.I'I"Y OF CL�ARWATER Po.sr O�f>r�cL �30�; 4748, C�1.rnitwA��'ex, Fr.oRrn� 3375�`>-4748 The Honorable Mayor, Councilmembers, and Citizens of the City of Clearwater: Cri� Hnt.t., 112 S�>t�'rt� Osci<>taAvt;vt�r:, Cr.r��rzwn�rLx, Pt.�+izn>,� 3375� Tri.i:nH��!v� (727) �C2-4040 F,�� (727) 562-�052 The City of Clearwater Charter (Section 2.01(c)3), Florida Statutes, and various covenaints relating to debt and pension obligai:ions of the Ciry require an annual audit of the City's financial statements of all funds of the City by a firm of licensed certified public accountants. These statements must be presented in conformity with generally accepted accouni:ing principles (GAAP) and audited in accordance with generally accepted auditing standards. Pursuant to these requirements we hereby issue the comprehensive annual financial report of the City of Clearwater for the Fisc�il year ended September 30, 2011. This report consists of managemenYs representai:ions concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework th��t is designed both to protect the governmenYs assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free From material misstaten�ent. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Mayer HofFinan McCann P.C., a firm of licensed certified public accountants, has audited the City's financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended September 30, 2011, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the fiiscal year ended September 30, 2011, are fairly presented in conformity with GAAP. The independent auditor's report is present��d as the first component of the financial seci:ion of the report. The independent audit of the financial statements of the City was part of a broa��er, federally mandated "Single Audit" designed to meet the special needs of federal and state grantor agencies. The standards governing Single Audit engagements require the independent auditor to r��port not orily on the fair presentation of the financial statements, but also on the audited governmenYs internal controls and compliance with legal requirements, with special emphasis on internal conl:rols and legal requirements involving the administration of federal and state awards. These reports are in the Single Audit section of this report. � Item # 1 � 'Eqr:ar. E��ei,o��>o-:�r n�oArr�a�i.�rn�r,Acrro� ExPr.�»�es�� Attachment number 1 \nPage 8 GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic fiinancial statements in the form of the ManagemenYs Discussion and Analysis report (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. Profle of the City of Clearwater, Florida Clearwater is located on the Pinellas Peninsula on Florida's west coast. It is directly Ic�cated on the Gulf of Mexico, 20 miles west of Tampa and 20 miles north of St. Petersburg. Clearwater is the county seat of Pinellas County and one of the largest cities in the Tampa Bay area. The Clearwater area offers a semitropical climate and 28 miles of beautiful beaches. Consequently, tourism i�s an important component of the economy. In additioi� to tourism, Clearwater enjoys a diversity of rnanufacturing businesses, service industries, high-tech companies, and a large retirement population. The City operates under the council/manager form of government. Policymaking and legislative authority are vested in the City Council, which consists of a mayor and four members el��cted at large on a non-partisan basis. The City Council is responsible for adopi:ing ordinances, adopi:irig the budget, and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing the heads of the City's departments. The City provides police and fire protection; construction and maintenance of streets, bridges, sidewalks, storm drainage, public parks, and recreation facilities; planning, zoning, subdivision, and building code regulation and enforcement; redevelopment of corrimercial and residential neighborhoods; supervised recreation programs; public libraries; water supply and distribution; waste water colleci:ion, treatment, and disposal; natural gas distribution; solid waste collection and recycling; stormwater management; marina, airpark, downtown boat slips, public fishing pier operations; and operation of the city-wide parking system. The annual budget serves as the foundation for the City's financial planning and control. Per the City Code of Ordinances, the City Manager is required to provide to the City Council an operating budget for the ensuing fiiscal year, a capital improvement budget, and a five-year capital improvement program, along with an accompanying budget message no later than 60 days prior to the end of the fiscal year. The Council is required to hold public hearings on the budget and to adopt a final operating budget and capital improvement budget no later than September 30, the last day of the City's fiscal year. The appropriated budget is prepared by fund and by department within Fund. Local Economy The local economy for the Tampa Bay metropolitan area experienced a continued economic downturn during fiscal 2011, fueled by coni;inued declines in real estate values and area employment. The Tampa Bay metropolitan area average unemployment rate decreased from 12.4 percer�t for the year ended Septerriber 2010 to 10.8 percent for the year ended September 2011, versus a n<�tional rate of 9.1 percent. The real estate and construction industries, in particular, continue to be hard hit by the economic downturn, as reflected in the Tampa Bay metro area unemployment numbers. However the City remains well-poised to take advantage of the economic recovery when it does occur, with the completion of the Beach Walk, Downtown Streetscapes, and Clearwater Harbor Marina projects expected to attract future redevelopment acfiivity. Item # 1 vi Attachment number 1 \nPage 9 Long-term Financial Planning The economic downturn has necessitated an emphasis on balancing demands for City services with significantly reduced General Fund revenues. Identifying operating efficiencies, consolidai:ing City operai:ions, priorii:izing and/or eliminating programs and services, partnering with other governmental entities, and other cost saving initial:ives have been the focal point of all City departments. The City continues to strategically review the efficiency and effectiveness of service operation:> for potential cost savings via reengineering and/or outsourcing of services. A down-sizing of City s�ervices, while continuing to properly maintain City assets and infrastructure, and meet the basic needs of residents, is expected to be the trend for at least the next several years in light of current econornic conditions and taxpayer sentiments. A major cost saving initiative underway is to decrease pension costs. During fiscal 2011, City Council approved funding for legal and acluary professional services to assist staff in the review and implementation of potential pension plan changes to reduce pension costs. The City is planning tc present pension plan changes for voter approval at a public referendum in November 2012, with a January 2013 effective date for the changes. Relevant Financial Policies It is a policy of the City Council to maintain a General Fund reserve equal to 8-1/2% of th�e subsequent year's budgeted expenditures as a contingency fund to meet unanticipated financial need:�. Per Council policy, funds in excess of these required reserves may be appropriated by the City Council for speciFic capital improvement projects or other one-time needs. It is a policy of the City Council that all enterprise �und operations shall be self-supporting. Council policy requires a review of rate schedules every five years, at a minimum, to help ensure that enterprise funds are self-supporl:ing. Additionally, Council policy requires that unrestricted fund balances of the enterprise funds be maintained at a level equivalent to the greater of three months of operal:ion and maintenance expenses, or other reserve levels indicated in the current rate study for the enterprise fund. Major Initiatives More than $26 million in fiscal 2012 capital project expenses are budgeted to proaci:ively support the City's five utility operations, which consist of Water and Sewer, Stormwater, Solid Waste, Recycling, and Gas Utiliry operations. Major projects include a new reverse osmosis plant and expansion of a current osmosis plant. The City began construction of a natural gas fueling station in May of 2011 with an ��ctober 2011 completion date. Additionally the City began the process of converting seventy (70) solid w✓aste garbage trucks to natural gas during the next seven y�ars, saving and estimated $15 thousand per truck per year in fuel costs. These efforts reflect Clearwater's continuing efforts to "go green", reduce energy consumption, and improve environmental sustainabiliry. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report (CAFR) for Item # 1 vii Attachment number 1 \nPage 1� the fiscal year ended September 30, 2010. This was the 32"d consecutive year that the City received this presi:igious award. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Ceri:ificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirernents and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the City received the GFOA's Distinguished Budget Presentation Award for i.he fiscal year 2011 Budget document, the 25ih consecui:ive year that this award has been received. In order to qualify, the City's Budget document was judged to be profiicient in several categories including as a policy document, a financial plan, an operations guide, and a communications device. We wish to thank the many members of the Citywide Annual Financial Reporting (CAFR;� Team, which is composed of individuals in the Finance C�epartment and other financial staff througho�at the City, for their professionalism and dedication in producing this report. Sincere appreciation is als�� extended to the City's external auditors, Mayer HofFinan McCann P.C., for their advice and assistance in the preparation of this report. Finally, we would like to thank the City Council for their interest, coni:inued support, and leadership in planning and conducting the financial operai:ions of the City in a progressive and responsible manner. Sincerely, , ' -���.�� � �-,�_- � William B. Horne, II City Manager L �i '� Brian Jay Ravins Finance Director viii Item # 1 Attachment number 1 \nPage 1 �ertificate of Achievement for Excellence in Financial R.eporting Presented to City ��f Clearwater Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2010 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to governrnent units and public employee retirement systems whose comprehensive annual financial reports (CAFRs} achieve the highest standards in government accounting and financial reporting. i' �,1C� �fip�. L�V'�"`r""'' • 4``�`� � FN��'�'d, V. � �.h+I�EJ} STATES� �� t" i �'� �^ c�'.� , � � Ck.k1�",I�A o ¢� ����A:�iro�; � �� President o��": �:�'"'�,�� � fs�:c��4 � �y�� F.xecutive Director Item # 1 �X City Auditor Fire Department Official Records & Legislative Services Police Department Public Communications City of Clearwater Organizational Chart Engineering Financial Services Human Resources Information Technology Library Citizens of Clearwater City Council City Manager Assistant City Manage � City Attorney Office of Management & Budget Parks & Recreation Planning & Development Public Services Public Utilities Solid Waste / General Support Services Assistant City Ma Attachment number 1 \nPage 1 Customer Service Economic Development & Housing Gas System Marine & Aviation Emergency Management Item # 1 Attachment number 1 \nPage 1 ; fVlayer Fioffman IVic�ann P.C. � An Independent CPA Firm , KRMT Tampa Bay Division 13577 Feather Sound Drive, Suite 400 � I Clearwater, FL 33762 Phone: 727.572.1400 . 813.879.1400 Fax: 727.571.1933 � www.mhm-pc.com Independent Auditors' Report Honorable Mayor and City Councilmembers City of Clearwater, Florida: We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clearwater, Florida (the City), as of and for the year ended September 30, 201 l, which collectively comprise the City's basic financial statements as listed in the table of contents. We have also audited the financial statements of each of the City's non-major governmental, non-major enterprise, internal service and fiduciary funds presented in the accompanying combining and individual fund statements and schedules as of and for the year ended September 30, 2011, as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fnancial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 201 1, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparisons for the general fund and the special development fund, for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each of the non-major governmental, non-major enterprise, internal service and fiduciary funds of the City as of September 30, 201 1, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Item # 1 Mem` :: �_ �ston Interna� �t�.,vork of independent accounting firms Attachment number 1 \nPage 1� As discussed in Note I-D-8 to the financial statements, the City adopted the provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, during the year ended September 30, 2411. In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2012 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The management's discussion and analysis on pages 3 through 15 and the pension and post-employment benefit disclosures on pages 86 through 89 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures which consisted of inquiries of management regarding the methods of ineasurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements as a whole and on each of the City's non-major governmental, non-major enterprise, internal service and fiduciary funds. The introductory section, supplementary information and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. In addition, the accompanying schedule of expenditures of federal awards and state financial assistance projects is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of Slate and Local Governments, and Non-Profit Organizations, and Chapter 10.550, Rules of the Auditor General, and is also not a required part of the basic financial statements. The schedule of expenditures of federal awards and state financial assistance projects, has been subjected to auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly presented in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. ��U March 30, 2012 Clearwater, Florida `%� C�+'�'lt�� � �. Item # 1 Attachment number 1 \nPage 1 Management's Discussion and Analysis This Management's Discussion and Analysis report provides the reader with a narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2011. Management's Discussion and Analysis (MD&A) should be read in conjunction with the City's Transmittal Letter, which begins on page vii of this report. Financial Highlights The City's assets exceeded its liabilities at the close of fiscal year 2011 by $745.8 million (net assets). Of this amount, $206.7 million (unrestricted net assets) may be used to meet the governmenYs ongoing obligations to citizens and creditors. The City's total net assets increased by $17.5 million, or 2.4%, during fiscal 2011. Net assets for governmental activities increased by $2.7 million, or .7%, while the business-type net assets increased by $14.8 million, or 4.4%. Significant factors contributing to the $2.7 million increase in qovernmental net assets included operating and capital grants and contributions totaling $10.8 million, offset by a$2.0 million, or 41 %, decrease in investment earnings versus the prior year due to less favorable investment market conditions, and a decrease of $4.8 million, or 10.9%, decrease in property tax revenues versus the prior year due to decreasing taxable values. The $14.8 million increase in business-tvpe net assets is primarily the result of operating revenues in excess of operating expenses for Water & Sewer Utility, Gas Utility, Solid Waste Utility, and Stormwater Utility operations. Also contributing to the increase was the receipt by the Water and Sewer Utility of $3.8 million in capital grants for reclaimed water projects, Reverse Osmosis Reservoir #2, and other miscellaneous utilities projects, and $1.3 million in capital grants received by the Stormwater Utility for various drainage projects, offset by a$1.8 million, or 33.8%, decrease in investment earnings versus the prior year due to less favorable investment market conditions. At September 30, 2011, the City's governmental funds reported combined ending fund balances of $108.7 million, a decrease of $3.3 million, or 2.9%, in comparison with the prior year. Of this amount, $21.2 million (or 19.5%) is available for spending at the governmenYs discretion (unassigned fund balance). The decrease of $3.3 million in governmental fund balances is primarily the result of: a$4.8 million decrease in property tax revenues as a result of declining taxable values and a decrease of $1.4 million in investment earnings due to less favorable market conditions, offset by reduced principal and interest payments as a result of the early redemption of the 2001 Improvement Revenue Refunding Bonds in February 2011. At September 30, 2011, unassigned fund balance for the General Fund was $23.1 million, or 21.5% of total current year general fund expenditures. Total actual revenues for the General Fund for fiscal 2011 were $1.1 million, or 1.1%, greater than final budgeted revenues primarily due to miscellaneous revenues, fines and forfeitures and intergovernmental revenues that exceeded budget, as discussed in the detailed General Fund discussion included in the governmental funds financial analysis that follows. Total fiscal 2011 actual expenditures for the General Fund were less than final budgeted expenditures by $3.9 million, or 3.5%. This was due to budget savings across all City departments for fiscal 2011, including $1 million, or 2.6%, for Police, $0.3 million, or 1.9%, for Parks and Recreation, and $0.7 million, or 3.1 %, for Fire. Finally, actual General Fund interfund transfers in were $159,089, or 1.8%, more than final budgeted interfund transfers in, while actual General Fund interFund transfers out were $285,769, or 4.2%, more than final budgeted interfund transfers out. The combined General Fund fiscal 2011 budgetary savings per above totaled $4.9 million. Item # 1 3 Attachment number 1 \nPage 1� Overview of the Financial Statements This discussion and analysis (MD&A) is intended to serve as an introduction to the City of Clearwater's basic financial statements. The City's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are the statement of net assets and the statement of activities. These statements report information about the City as a whole using accounting methods similar to those used by private- sector businesses. Emphasis is placed on the net assets of governmental activities and business-type activities, and the change in net assets. Governmental activities are principally supported by taxes and intergovernmental revenues. Governmental activities include most of the City's basic services, including police, fire, public works, parks and recreation, and general administration. Business-type activities are intended to recover all or a significant portion of their costs through user fees and charges. The City's water and sewer system, stormwater system, gas system, solid waste, recycling, marine, aviation, convention center, Clearwater Harbor Marina, and parking system operations are reported as business-type activities. • The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator as to whether the financial position of the City is improving or deteriorating. Net assets are reported in three major categories: 1) invested in capital assets, net of related debt; 2) restricted; and 3) unrestricted. • The statement of activities presents information showing how the City's net assets changed as a result of the year's activities. All changes in net assets are recorded in the period in which the underlying event takes place, which may differ from the period in which cash is received or disbursed. The Statement of Activities displays the expense of the City's various programs net of related revenues, as well as a separate presentation of revenues available for general purposes. The government-wide financial statements include not only the City of Clearwater itself but also the Clearwater Redevelopment Agency (CRA). The CRA, though legally separate, is reported as part of the primary government as a blended component unit due to the City Council serving as the CRA's governing board. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The fund financial statements provide detailed information about the City's major funds — not the City as a whole. Fund accounting helps to ensure and demonstrate compliance with finance-related legal requirements. Based on restrictions on the use of monies, the City has established many funds that account for the multitude of services provided to residents. These fund financial statements focus on the City's most significant funds: governmental, proprietary, and fiduciary. Governmental funds Governmental funds are used to report most of the City's basic services. These funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. The funds focus on the inflows and outflows of current resources and the balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Item # 1 4 Attachment number 1 \nPage 1 The City maintains eleven individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General, Special Development, and Capital Improvement funds, which are considered to be major funds. Data from the other eight governmental funds are combined into a single aggregated columnar presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the supplementary information section of this report. Annual appropriated budgets are adopted for the General Fund, the Special Development Special Revenue Fund, and the Community Redevelopment Agency Special Revenue Fund. Budgetary comparison statements and/or schedules have been provided for these funds to demonstrate budgetary compliance. Proprietary funds The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the fiscal activities related to water and sewer, gas, solid waste and stormwater utilities, along with recycling, marine, aviation, parking system, Harborview Convention Center, and Clearwater Harbor Marina boat slip operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for the City's building maintenance, custodial services, self-insurance program, risk management program, employee group insurance, vehicle acquisition and maintenance, and various support activities including data processing, legal, telecommunications, and postal services. All of the City's internal service funds predominantly benefit governmental activities and consequently have been aggregated and included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Gas Utility, Solid Waste Utility, and Stormwater Utility enterprise funds, which are considered to be major funds of the City. The remaining six non-major enterprise funds are combined into a single aggregated presentation in the proprietary fund financial statements. Similarly, governmental activity internal service funds are aggregated into a single presentation. Individual fund data for the non-major enterprise funds and the internal service funds is provided in the form of combining statements in the supplementary information section of this report. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of the fiduciary funds are not available to support the City's own programs. The accounting used for fiduciary funds is similar to proprietary funds. Notes to the Financial Statements The notes to the financial statements provide additional information that is essential for a full understanding of the information provided in the government-wide and fund financial statements, including the City's progress in funding its obligations to provide pension benefits and other post-employment benefits to its employees. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligations to provide pension benefits and other post-employment benefits to its employees. The combining statements referred to earlier in connection with non-major governmental funds, non-major enterprise funds, and internal service funds, are presented immediately following the required supplementary information. Item # 1 5 Attachment number 1 \nPage 1 Government-Wide Financial Analysis The overall financial position of the City improved in both the fiscal 2011 and fiscal 2010 years. As noted earlier, net assets may serve over time as a useful indicator of a governmenYs financial position. In the case of the City, assets exceeded liabilities by $745.8 million at the close of the fiscal year ended September 30, 2011. This represents an increase of $17.5 million from the September 30, 2010 total net assets of $728.2 million. Net assets of both the governmental and the business-type activities increased primarily due to operating and capital grants and contributions of $16.2 million, along with favorable operating results for business-type activities, partially offset by a$3.8 million, or 37.3%, decrease in investment earnings versus the prior year due to less favorable investment market conditions. The City reports positive balances in all three categories of net assets, both for the government as a whole as well as for its separate governmental and business-type activities, for both the current year and the prior year, as indicated in the following table: Assets Current and other assets Capital assets Total assets Liabilities Current and other liabilities Long-term debt outstanding: Due within one year Due in more than one year Total liabilities Net assets Invested in capital assets, net of related debt Restricted Unrestricted Total net assets Governmental Activities Business-type Activities 2011 2010 2011 2010 $ 165,204,443 $ 169,840,956 $ 224,466,572 $ 222,289,754 277,160,493 277,095,034 379,223,599 376,289,621 442,364,936 446,935,990 7,287,274 7,560,939 10, 351,270 10,925,242 29,984,731 36,441,414 603,690,171 598, 579, 375 15, 210, 298 18, 895, 434 8,532,700 8,248,498 228,928,800 235,195,283 Total 2011 2010 $ 389,671,015 $ 392,130,710 656,384,092 653,384,655 1,046,055,107 22,497,572 18,883,970 258,913,531 1,045,515,365 26,456,373 19,173,740 271, 636,697 47,623,275 54,927,595 252,671,798 262,339,215 300,295,073 317,266,810 257,542,168 249,042,568 159,912,679 165,704,305 417,454,847 414,746,873 57,244,544 49,682,371 55,039,183 44,332,065 112,283,727 94,014,436 79,954,949 93,283,456 136,066,511 126,203,790 216,021,460 219,487,246 $ 394,741,661 $ 392,008,395 $ 351,018,373 $ 336,240,160 $ 745,760,034 $ 728,248,555 A large portion of the City's net assets (56.0%) represent its investment in capital assets (e.g., land, infrastructure, land improvements, buildings, and equipment), less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens, and consequently these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves will not be used to liquidate these liabilities. An additional portion of the City's net assets (15.1%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($216.0 million or 28.9%) may be used to meet the government's ongoing obligations to citizens and creditors. There was an $8.5 million, or 3.4%, increase in invested in capital assets, net of related debt for governmental activities versus the previous year. The increase was due to a decrease in related revenue bond debt due to $550,000 in scheduled bond principal payments and the early redemption of the 2001 Improvement Revenue Refunding Bonds in the amount of $8.5 million. This $9.1 million reduction in capital-related revenue bonds, plus a current year $.4 million increase in capital lease purchase contracts, was offset by a net increase of $65,000 in governmental capital assets for the current fiscal year. The increase in governmental capital assets resulted from capital asset additions of $17.4 million that were offset by depreciation expense of $16.2 million and net capital asset retirements totaling approximately $1.1 million. See the following discussions of capital assets and long term debt for more information on current year activity. Item # 1 0 Attachment number 1 \nPage 1 Invested in capital assets, net of related debt for business-tvpe activities decreased by $5.8 million, or 3.5%, due to $20.5 million of capital asset additions, offset by $17.5 million in current year depreciation expense, $69 thousand in capital asset disposals, and a$8.7 million increase in related bond debt, net of unspent bond proceeds. The $8.7 million increase in related bond debt, net of unspent bond proceeds was the result of a current year $10.9 million spend-down of bond proceeds offset by scheduled principal payments. Changes in Net Assets The following table reflects the changes in net assets for the years ended September 30, 2011, and September 30, 2010: Revenues Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Sales taxes Utility taxes Other taxes Other Total revenues Expenses General Government Public Safety Physical Environment Transportation Economic Environment Human Services Culture and Recreation Intereston Long-term Debt Water and Sewer Utility Gas Utility Solid Waste Utility Stormwater Utility Other Total expenses Increase in net assets before transfers Transfers Increase in net assets Net assets - beginning Net assets - ending City of Clearwater, Florida - Changes in Net Assets Primary Government Governmental Activities Business-type Activities Totals 2011 2010 2011 2010 2011 2010 $ 37,493,034 $ 36,935,873 $ 143,518,556 $ 137,495,683 $ 181,011,590 $ 174,431,556 8,061,861 7,560,887 133,519 186,649 8,195,380 7,747,536 2,765,599 1,315,379 5,289,674 11,060,483 8,055,273 12,375,862 39,252,898 44,040,222 - - 39,252,898 44,040,222 13,384,678 13,253,393 - - 13,384,678 13,253,393 13,228,749 13,573,548 - - 13,228,749 13,573,548 13,303,118 13,879,951 - - 13,303,118 13,879,951 3,090,805 5,143,004 3,496,865 5,284,122 6,587,670 10,427,126 130,580,742 135,702,257 152,438,614 154,026,937 283,019,356 289,729,194 16,183, 344 66,913,985 3,868,026 13,274,877 3,113,409 151,483 30,606,145 1,216,684 15,965,621 69,456,573 4,940,808 13,760,461 4,155,478 97,549 30,609,832 1,446, 021 135, 357, 953 140,432, 343 61, 010, 369 28, 353, 645 15,843,532 12,234,015 12,708,363 130,149, 924 57,228,965 31,199, 734 15,617,918 10,936,788 12,774,813 127,758,218 (4,777,211) (4,730,086) 22,288,690 26,268,719 7,510,477 9,951,358 (7,510,477) (9,951,358) 2,733,266 5,221,272 14,778,213 16,317,361 392,008,395 386,787,123 336,240,160 319,922,799 $ 394,741,661 $ 392,008,395 $ 351,018,373 $ 336,240,160 $ 7 16,183, 344 66,913,985 3,868,026 13,274,877 3,113,409 181,483 30, 606,145 1, 216, 684 61, 010, 369 28,353,645 15,843,532 12,234,015 12,708,363 265,507,877 15,965,621 69,456,573 4,940,808 13,760,461 4,155,478 97,549 30,609,832 1,446,021 57,228,965 31,199, 734 15,617,918 10,936,788 12,774,813 268,190, 561 17,511,479 21,538,633 17,511,479 21,538,633 728,248,555 706,709,922 745,760,034 $ 728,248,555 Item # 1 Attachment number 1 \nPage 2� Governmental Activities Governmental activities net assets increased by $2.7 million from $392.0 million as of September 30, 2010, to $394.7 million as of September 30, 2011. This increase due to governmental activities accounted for 15.6% of the total increase in net assets for the City, and represented a.7% increase in net assets for governmental activities. Total expenses for governmental activities decreased by $5.1 million, or 3.6%, versus the prior year. This was primarily due to reductions in staffing levels in the Police and Fire departments, as well as the Planning and Development and Engineering departments. Travel, training, memberships and other operating costs have also been reduced throughout the organization. Total program revenues for governmental activities increased by $2.5 million, or 5.5%, versus the prior year. This increase was primarily due to a$0.6 million increase in charges for services reflecting increased receipts from public safety activities; a$.5 million increase in operating grants and contributions due to grant funding received for the Federal Early Retiree Reinsurance Program and the Pinellas County Neighborhood Stabilization Grant; and a$1.4 million increase in capital grants and contributions due to increased impact fees received for transportation and culture and recreation programs. Total general revenues for governmental activities decreased by $7.6 million, or 8.5%, primarily due to a$4.8 million, or 10.9%, decrease in property taxes due to decreased property values resulting from the continued economic downturn. Additionally, investment earnings for governmental activities decreased by $2.0 million, or 41 %, due to less favorable market conditions. The cost of all governmental activities this year was $135.4 million. This reflects a$5.1 million, or 3.6%, decrease from the fiscal 2010 total of $140.4 million. However, as shown on the Statement of Activities, the amount that the City's taxpayers ultimately financed for these activities totaled $87.0 million, because some of the cost was paid for by those who directly benefited from the programs ($37.5 million) or by other governments and organizations that subsidized certain programs with grants and contributions ($10.8 million). This total of $87.0 million is $7.6 million less than the fiscal 2010 amount financed from general revenues. Millions $70 $60 $50 $40 $30 $20 $10 $0 Expenses and Program Revenues - Governmental Activities For the Year Ended September 30, 2011 Public Transportation Human Interest on Safety Services Long-term Debt 0 Item # 1 Revenues by Sources - Governmental Activities For the Year Ended September 30, 2011 Proper+�� taYP� 3( Capital grants and contributions 2% Operating grants and contributions 6% Business-type Activities Charges for services 29% �les taxes 10% Utility taxes 10% Communications services taxes 5% hertaxes 6% Otherrevenues 2 o�a Attachment number 1 \nPage 2 Net assets for business-type activities increased from $336.2 million for the prior year to $351.0 million. This increase totaled $14.8 million, reflecting a 4.4% increase in business-type activities net assets and 84.4% of the total increase in net assets for the City. Net revenue from business-type activities, before investment earnings and transfers, decreased from $21.0 million for the prior year to $18.8 million for fiscal 2011. This $2.2 million, or 10.4°/o, decrease was the result of a$2.4 million increase in operating expenses, along with a$5.8 million decrease in capital grants and contributions offset by a$6.0 million increase in charges for services. Total revenues for business-type activities decreased by $1.6 million, or 1.0%, to $152.4 million versus the prior year total of $154.0 million, primarily due to the decrease in investment earnings of $1.8 million offset by an increase in program revenues of just $200,000. Total expenses for business-type activities increased by $2.4 million, or 1.9%, from $127.8 million in fiscal 2010 to $130.1 million for fiscal 2011. A significant portion of the $2.4 million increase in expenses was attributable to increased costs in the Water and Sewer Utility Fund due to the addition of two full-time positions and an increase in capital projects, offset by a decrease in the Gas Utility Fund due to a reduction in planned capital projects and a decline in gas commodity costs. Finally, transfers for business-type activities changed from a net transfer out to governmental activities of $9.9 million in fiscal 2010 to a net transfer out to governmental activities of $7.5 million in the current year. This net change of $2.4 million was primarily due to a decrease in transfers from the Gas Utility Fund to the General Fund in fiscal 2011 related to the large dividend paid by the Gas Utility Fund to the General Fund in fiscal 2010 as a result of the buyout of a gas pre-purchase agreement. Item # 1 0 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Attachment number 1 \nPage 2 Expenses and Program Revenue - Business-type Activities For the Year Ended September 30, 2011 Water and Sewer Gas Utility Solid Waste Utility Stormwater Utility Other Utility C�'jargPC ff11' CPI'\/I(:PC Revenues by Source - Business-type Activities For the Year Ended September 30, 2011 10 tal grants and mtributions 3.5% 0.1 % Investment earnings 2.3% ❑ Expenses ■ Revenues Item # 1 Attachment number 1 \nPage 2 Financial Analysis of the City's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The City reports the General Fund, Special Development Fund, and Capital Improvement Fund as major governmental funds. The City's governmental funds for the year ended September 30, 2011, reflect a combined fund balance of $108.7 million versus $112.0 million for the prior year, a decrease of $3.3 million. A total of $21.2 million, or 19.5%, represents unassigned fund balance available for spending at the governmenYs discretion. The remainder of the fund balance is classified as assigned ($8.3 million or 7.6%) to indicate that it is intended to be used for specific purposes supported by management's intent; committed ($17.1 million or 15.8%) to indicate that it can be used only for the specific purposes determined by a formal vote of the City Council; restricted ($61.9 million or 57.0%) to indicate that it can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation; or nonspendable ($.1 million or .1%) to indicate that it cannot be spent or is legally or contractually required to remain intact. The General Fund is the chief operating fund of the City. At September 30, 2011, unassigned fund balance of the General Fund totaled $23.1 million, with the remaining $.9 million in fund balance classified as nonspendable or assigned. As a measure of the general fund's liquidity it is useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance represents 21.5% of total general fund expenditures (GAAP basis before transfers) for the current fiscal year. The fund balance of the City's General Fund decreased by $.1 million during the current fiscal year versus a final budgeted decrease of $4.7 million. This $4.6 million variance from the budgeted decrease was primarily the result of total expenditures that were less than budgeted expenditures by $3.9 million, along with total revenues that were $1.1 million in excess of budgeted revenues. General Fund expenditure "savings" of $3.9 million, or 3.5%, was spread across all departments due to an emphasis on cost reductions City-wide. General Fund revenues were greater than budgeted by $1.1 million primarily due to $.3 million surplus of fines and forFeitures due to a lien payment received; local fire service revenues received in excess of the final budget amount by $.3 million; and miscellaneous revenues which exceeded the final amended budget by $.6 million. The fund balance of the Special Development Fund decreased from $6.5 million to $5.7 million, for a decrease of $.8 million or 12.0%, during the current fiscal year versus a decrease of $4.5 million for fiscal 2010. The significant decrease for fiscal 2010 was primarily due to a one-time transfer of $4.6 million to the General Fund towards redemption in full of the City's Improvement Refunding Revenue Bonds, Series 2001. The fund balance for the Capital Improvement Fund increased from $34.4 million to $43.0 million during the current fiscal year. This increase of $8.6 million is primarily the result of current year capital project funding received from other funds ($20.3 million) and grant revenues received from federal, state, and local agencies ($1.7 million) in excess of current year capital project expenditures ($12.8 million). This is typical volatility for the Capital Improvement Fund due to timing differences between project funding and project spending. The fund balances for Other (non-major) Governmental Funds decreased from $47.0 million to $36.0 million during the current fiscal year. This decrease of $11.0 million was primarily the result of: A decrease of $8.7 million in the 2001 Improvement Revenue Refunding Bonds debt service fund due to the early redemption of the bonds, and a decrease of $2.5 million in the Community Redevelopment Agency capital projects fund primarily due to the purchase of land in the East Gateway area during fiscal 2011. Item # 1 11 Attachment number 1 \nPage 2� Proprietary Funds The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The City reports the Water and Sewer Utility Fund, the Gas Utility Fund, the Solid Waste Utility Fund, and the Stormwater Utility Fund as major funds. The Water and Sewer Utility Fund realized a$1.4 million increase in net assets versus a$5.1 million increase for the prior year. Operating revenues increased by $4.1 million, or 7.3%, offset by an increase in operating expenses of $3.1 million, or 6.4%. This resulted in a net increase in operating income of $1.0 million, or 14.4%, from $6.7 million for 2010. Additionally, capital grants and contributions decreased by $3.9 million, or 50.7%; investment earnings decreased by $0.8 million, or 31.2%; and transfers out to other funds decreased by $0.2 million, or 6.4%. The increase in operating revenues was the result of a 7% rate increase effective October 1, 2010. The increase in operating expenses was primarily an increase in repair and maintenance expenditures of $4.0 million due to increased repair and maintenance costs associated with infrastructure. The decrease in capital grants and contributions was primarily the result of a reduction in grant funding received for reclaimed water projects from the previous year. The decrease in investment earnings was due to market conditions. The Gas Utility Fund realized a$6.9 million increase in net assets versus a$2.0 million increase for the prior year. Operating revenues decreased by only $98,000, or .3%, from the prior year, primarily due to level fuel costs, offset by a $2.9 million, or 9.6%, decrease in operating expenses. The decrease in operating expenses was primarily due to a decrease of $1.2 million (7.9%) in commodity charges; a decrease of $.3 million (17.4%) in depreciation expense because assets installed prior to 1987 were fully depreciated in fiscal 2011; a decrease of $.6 million (67.7%) in professional services due to due to lower design costs for fewer capital projects and lower locate charges; and a decrease of $.5 million (87.4%) in repairs and maintenance due to a one-time accrual of $491,200 in fiscal 2010 for remediation costs that did not occur again in fiscal 2011. This resulted in a$2.8 million, or 47.7%, increase in operating income from the prior year. Additionally, transfers out to other funds decreased by $2.5 million, or 58.4%. The decrease in transfers out was due to a one-time buyout of the City's rights under a gas pre-purchase agreement in 2009 which resulted in increased transfers for fiscal 2010 that did not occur again in fiscal 2011. The Solid Waste Utility Fund realized a$3.1 million increase in net assets versus a$2.3 million increase for the prior year. Operating revenues increased by $717,000, or 3.9%, offset by a decrease in operating expenses of $50,000, resulting in a$768,000 increase in operating income from $2,530,000 in fiscal 2010 to $3,298,000 in fiscal 2011. The 3.9% increase in operating revenues was due to scheduled rate increases for residential, commercial and roll-off customers, offset by decreased consumption due to the economic downturn. The Stormwater Utility Fund realized an increase in net assets of $3.8 million versus a prior year increase of $4.6 million. Operating revenues increased by $0.9 million, or 6.5%, due to scheduled rate increases. Additionally fiscal 2011 realized a$1.2 million, or 13.3% increase in operating expenses, primarily attributable to a$.6 million, or 119%, increase in professional services resulting from the increased project activity and an increase of $.6 million, or 108%, in repairs and maintenance due to the Stormpipe Improvement and Stevenson Creek Estuary Restoration projects that were expensed as renewal and replacement. Unrestricted net assets and changes in net assets of the proprietary funds for fiscal years 2011 and 2010: Unrestricted Net Assets Change in Net Assets Fund 2011 2010 2011 2010 Water and Sewer Utility $ 46,633,516 $ 37,371,341 $ 1,435,607 $ 5,128,829 Gas Utility 26,342,719 22,709,440 6,947,892 2,028,168 Solid Waste Utility 22,328,536 19,269,262 3,099,936 2,329,338 Stormwater Utility 23,679,353 20,377,571 3,760,362 4,589,938 Otherfunds 12,528,360 21,304,268 152,297 1,911,525 Totals $ 131,512,484 $ 121,031,882 $ 15,396,094 $ 15,987,798 Item # 1 12 Attachment number 1 \nPage 2 General Fund Budgetary Highlights The final amended budget for General Fund expenditures reflected an increase of $3.7 million, or 3.4%, from the original budget. Key elements of this increase were as follows: $0.9 million increase in Police and $1.2 million increase in Fire budgeted expenditures due to the accounting for State tax contributions to Police and Fire Supplemental Pension Plans, which are recorded as General Fund revenues and employer contribution expenditures as recommended by the Governmental Finance Officers Association, an increase of $.9 million in the Non-Departmental budget for a grant to the Clearwater Marine Aquarium and a legal settlement to Pierce 100, an increase of $.7 million in the City Attorney's Office budget for a legal settlement to Pickles Plus. These budgeted expenditure increases were offset by an equal increase in budgeted revenues below. Final budgeted revenues reflect a$1.8 million, or 1.8%, increase from the original budget primarily due to the following: • $2.3 million, or 26.7%, increase in budgeted intergovernmental revenues from state sources to reflect state insurance tax monies received on behalf of the City's police and fire supplemental pension plans, offset by a decrease in budgeted interest income of $.4 million, or 32.3%, due to lower than expected interest rates. Final budgeted "transfers in" from other funds reflect a$.6 million, or 7.0%, increase from the original budget primarily due to: A$.6 million increase in budgeted "transfers in" to reflect the return of General Fund revenues from closed projects in the Special Programs Fund and the Capital Improvement Fund. Final budgeted "transfers out" reflect a$2.8 million, or 69.7%, increase from the original budget primarily due to: • $90,000 transferred to the Capital Improvement Fund for the purchase of property adjacent to Bright House Networks Field $1.3 million transferred to the Capital Improvement Fund for the installation and service of sports field lighting equipment at various city athletic facilities • $1 million transferred to the Capital Improvement Fund for Clearwater Pass maintenance dredging. Total actual revenues for the General Fund for fiscal 2011 were $1.1 million, or 1.1%, greater than final budgeted revenues. Contributing to this surplus of actual revenues versus final budgeted revenues was $0.6 million, or 50.7%, surplus of miscellaneous revenue versus budgeted; $0.3 million, or 48.2%, of fines and forfeitures in excess of final budgeted revenues. Finally, intergovernmental revenues from local sources exceeded final budget by $0.3 million, or 4.0%. Fiscal 2011 actual expenditures for the General Fund were less than final budgeted expenditures by $3.9 million, or 3.5%. This was due to budget savings across all City departments for fiscal 2011. Capital Asset and Debt Administration Capital Assets Capital assets include land, buildings and building improvements, improvements other than buildings, machinery and equipment, and infrastructure. The infrastructure asset category includes long-lived capital assets, typically stationary in nature, such as roads, sidewalks, and bridges. At September 30, 2011, the City had investments in capital assets totaling $656,384,092 (net of accumulated depreciation). Item # 1 13 Land Buildings Improvements other than buildings Machinery and equipment I nfrastructu re Construction in progress Total * Net of accumulated depreciation City of Clearwater, Florida - Capital Assets" (amounts in thousands) Governmental Activities Business-type Activities 2011 2010 2011 2010 2011 Total Attachment number 1 \nPage 2� 2010 $ 79,114 $ 79,592 $ 31,281 $ 31,281 $ 110,395 $ 110,873 89, 726 16,614 18,238 68,279 5.189 83,437 15, 029 18,673 69, 894 10,470 12,267 12,649 320,856 307,424 2,619 2,665 12,201 22,271 101, 993 337,470 20,857 68,279 17,390 96,086 322,453 21,338 69,894 32,741 $ 277,160 $ 277,095 $ 379,224 $ 376,290 $ 656,384 $ 653,385 Net capital assets for the City's governmental activities increased from $277.1 million to $277.2 million, reflecting an increase of $65,000 for the current fiscal year. Capital asset additions of $17.4 were offset by depreciation expense of $16.2 million and net capital asset retirements totaling approximately $1.1 million. Major fiscal 2011 governmental capital asset transactions included $2.1 million in current year capital expenditures at the new Aging Well Center, $2.4 million of capital expenditures for traffic calming projects, $3.0 million for improvements to Carpenter Field Complex, $1.3 million in capital expenditures for infrastructure improvements at the Long Center, $1.2 million for the purchase of the Lokey Building, and $0.6 million for the expansion of Fire Station 48. Net capital assets for the City's business-type activities increased from $376.3 million to $379.2 million, reflecting an increase of $2.9 million for the current fiscal year. Capital asset additions of $20.5 million were offset by depreciation expense of $17.5 million and net capital asset retirements totaling approximately $.1 million. Major fiscal 2011 business- type capital asset transactions included an additional $1.3 million in construction in progress for reclaimed water projects, an additional $1.6 million in construction in progress for reverse osmosis water plant expansion projects, and an additional $1.4 million in construction in progress for wastewater treatment plant screw pump replacements. Additional information on the City's capital assets can be found in Note III (C) on the notes to the financial statements. Long-term debt The City's total long-term debt decreased from $290.8 million to $277.8 million, a decrease of $13.0 million or 4.5%. Long-term debt for governmental activities decreased by $7.0 million, or 14.8%, while long-term debt for business-type activities decreased by $6.0 million or 2.5°/o. Key factors contributing to these decreases included: • The decrease in long-term debt for governmental activities is primarily due to the early redemption of the 2001 Improvement Revenue Refunding bonds in the amount of $8.5 million, offset by slight increases in accruals for lease purchases, other post-employment benefits and insurance claims payable. • The decrease in long-term debt for business-type activities is primarily due to approximately $6.9 million of scheduled bond principal payments and a$1.5 million reduction in principal payments achieved by issuing the 2011 Water and Sewer Revenue Refunding Bonds to redeem the 2002 Water and Sewer Revenue Bonds. The City's bonded debt as of September 30, 2011, consists entirely of revenue bonds (secured solely by specified revenue sources) with no general obligation debt or special assessment debt outstanding. Governmental activities net revenue bonds totaled $10.6 million while business-type activities totaled $234.8 million. The City's Charter limits indebtedness to 20% of the assessed valuation of non-exempt real estate. The current debt limitation is approximately $1.6 billion, which is significantly in excess of the City's applicable indebtedness of approximately $233 million at September 30, 2011. Additional information on the City's long-term debt can be found in Note III (F) of the notes to the financiall�em �e�ts. 14 Attachment number 1 \nPage 2 Economic Factors and Year 2012 Budgets and Rates Factors considered in preparing the City of Clearwater's budget for fiscal year 2012 included: • A continued economic downturn and an additional 3.2% decline in property values, reflecting a 32% decline from the point at which City property values peaked four years ago. • The unemployment rate for the Tampa Bay metropolitan area for September 2011 was 10.8%, a decrease from the September 2010 rate of 12.4%. The unemployment rate for Pinellas County was also a decrease — from 11.9% for September 2010 to 10.3% for September 2011. The unemployment rate for Florida similarly decreased — from 12.0% for September 2010 to 10.6% for September 2011. The national rate also reflected a slight decrease — from 9.2% for September 2010 to 9.1 % for September 2011. • Total taxable assessed values for the City of Clearwater decreased approximately 3.2% for fiscal 2012. The City's millage rate was unchanged from the fiscal 2011 rate of 5.1550 mills, reflecting a 4.31 % decrease from the fiscal 2012 rolled-back rate of 5.3874 mills. • A reduction of 28.7 full-time equivalent positions City-wide, including a reduction in General Fund employees of 23.5 FTE's, from 1,041.9 to 1,018.4, due to service level reductions and program consolidations. The City has reduced City-wide full-time equivalent positions by 14% and General Fund full-time equivalent positions by 21 % over the past five years. • A decrease of $475,000 in the actuarially required contribution to the Employees' Pension Plan, from $19.4 million, or 24.07% of covered payroll, for fiscal 2011 to $18.9 million, or 24.69% of covered payroll, for fiscal 2012. The 3% increase in the pension contribution rate is partially offset by reductions in staff levels and limited pay increases which result in a reduction to the covered payroll and ultimately the pension cost. • A reduction in employee medical insurance costs of $166,000, or 2%, from fiscal 2011 due to the decrease in employees from the prior year, while maintaining the same cost per employee as the prior year. • Budgeted Water and Sewer utility revenues for 2012 reflect a 4.5% rate increase effective October 1, 2011, while fiscal 2012 budgeted Stormwater utility revenues reflect a 4.25% rate increase effective October 1, 2011. Contacting the City's Financial Management This financial report is designed to provide a general overview of the City's finances for all those with an interest in our government and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: City of Clearwater, Finance Department, 100 South Myrtle Avenue, Clearwater, Florida 33756-5520. Item # 1 15 Attachment number 1 \nPage 2 This Page Intentionally Left Blank Item # 1 16 Attachment number 1 \nPage 2 Basic Financial Statements Item # 1 17 ASSETS Cash and investments Receivables (net) Internal balances Due from other governments Prepaid items Inventories Restricted assets: Cash and investments Due from other governments Deferred charges Net pension asset Capital assets: Land Buildings Improvements other than buildings Machinery and equipment I nfrastructu re Construction in progress Total assets LIABILITIES Accounts payable and other current liabilities Accrued liabilities Accrued interest payable Due to other governments Deposits Unearned revenue and liens Payable from restricted assets: Construction contracts payable Accrued interest payable Customers deposits Non-current liabilities due within one year: Compensated absences Loans and leases payable Revenue bonds payable Claims payable Long-term debt and liabilities: Unearned revenue Compensated absences Other postemployment benefits Loans and leases payable Revenue bonds payable Claims payable Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Capital projects Debt service Renewal and replacement Grant programs Impact fees Unrestricted Total net assets City of Clearwater, Florida Statement of Net Assets September 30, 2011 $ Attachment number 1 \nPage 3� Primary Government Governmental Business-type Activities Activities Total 138,674,203 $ 18, 797, 360 (4,065,282) 4,412,111 1,418,986 525,053 86,864 5,355,148 79,113,502 89,725,789 16,614,513 18,238,309 68,279,113 5,189, 267 442,364,936 4,517,839 1,248,137 42,997 750,495 2,400 725,406 4,674,198 2,887,872 570,000 2,219,200 2,609,035 4,746,443 5,834,337 10,326,116 6,468,800 47,623,275 257,542,168 34,217,085 498,733 22,528,726 79,954,949 $ 394,741,661 $ The notes to the financial statements are an integral part of this statement. 18 113,028,253 $ 13,100,881 4,065,282 8,247,819 53,321 1,815,427 79,841,269 350,942 2,206,243 1,757,135 31,280,681 12,266,484 320,856,305 2,619,003 12,201,126 603,690,171 3,894,083 365,294 29,036 52,359 22,836 1,601,604 3,134, 526 6,110,560 1,155,852 236,848 7,140,000 187,113 645,171 1,856,107 571,031 225,669,378 252,671,798 159,912,679 9,300,000 21,718,703 16,442,909 7,577,571 136,066,511 351,018,373 251,702,456 31,898,241 12,659,930 1,472,307 2,340,480 79,841,269 350,942 2,293,107 7,112,283 110,394,183 101,992,273 337,470,818 20,857,312 68,279,113 17,390,393 1, 046, 055,107 8,411,922 1,613,431 72,033 750,495 54,759 748, 242 1,601,604 3,134,526 6,110,560 5,830,050 3,124,720 7,710,000 2,219,200 187,113 3,254,206 6,602,550 6,405,368 235,995,494 6,468,800 300,295,073 417,454,847 43,517,085 22,217,436 16,442,909 22,528,726 7,577,571 216,021,460 $ ��tr��Q,�� �l � r=r (D � � � Functions/Programs Expenses Primary government: Governmental activities: General government $ 16,183,344 Public safety 66,913,985 Physical environment 3,868,026 Transportation 13,274,877 Economic environment 3,113,409 Human services 181,483 Culture and recreation 30,606,145 Interest on long-term debt 1,216,684 Total governmental activities 135,357,953 Business-type activities: City of Clearwater, Florida Statement of Activities For the Year Ended September 30, 2011 Program Revenues Net (Expense) Revenue and Changes in Net Assets Operating Primary Government Charges for Grants and Capital Grants & Governmental Business-Type Services Contributions Contributions Activities Activities Total $ 20,868,748 9,980,389 147,364 852,052 153,138 5,491,343 37,493,034 $ 664,592 $ - $ 5,349,996 $ 2,650,283 - (54,283,313) 173,870 22,669 (3,524,123) 199,576 1,599,452 (10,623,797) 2,291,021 - (669,250) 211,144 - 29,661 1,871,375 1,143,478 (22,099,949) - - (1,216,684) 8,061,861 2,765,599 (87,037,459) Water & Sewer Utility 61,010,369 59,809,781 - 3,756,337 - Gas Utility 28,353,645 36,470,050 - - - Solid Waste Utility 15,843,532 19,204,969 - - - Stormwater Utility 12,234,015 15,221,962 - 1,300,438 - Recycling 2,953,893 3,134,698 83,519 - - Marine 4,136,104 4,387,419 - - - Aviation 514,989 236,547 - 217,648 - Parking System 3,866,976 4,676,831 - - - Harborview Center 578,949 51,013 - - - Clearwater Harbor Marina 657,452 325,286 50,000 15,251 - Total business-type activities 130,149,924 143,518,556 133,519 5,289,674 - Total primary government $ 265,507,877 $ 181,011,590 $ 8,195,380 $ 8,055,273 (87,037,459) General revenues: Taxes: $ 5,349,996 (54,283,313) (3,524,123) (10,623,797) (669,250) 29,661 (22,099,949) (1,216,684) (87,037,459) 2,555,749 2,555,749 8,116,405 8,116,405 3,361,437 3,361,437 4,288,385 4,288,385 264,324 264,324 251,315 251,315 (60,794) (60,794) 809,855 809,855 (527,936) (527,936) (266,915) (266,915) 18,791,825 18,791,825 18,791,825 (68,245,634) Property taxes 39,252,898 - 39,252,898 Sales taxes 13,384,678 - 13,384,678 Utility taxes 13,228,749 - 13,228,749 Communications services taxes 5,852,335 - 5,852,335 Other taxes 7,450,783 - 7,450,783 Investment earnings 2,965,357 3,496,865 6,462,222 Miscellaneous 125,448 - 125,448 Transfers 7,510,477 (7,510,477) - Total general revenues and transfers 89,770,725 (4,013,612) 85,757,113 Change in net assets 2,733,266 14,778,213 17,511,479 Net assets--beginning 392,008,395 336,240,160 728,248,555 Net assets--ending $ 394,741,661 $ 351,018,373 $ 745,760,034 The notes to the financial statements are an integral part of this statement. D v 3 � m � � c 3 a m 5 � m � m w ASSETS Cash and investments Receivables (net where applicable, of allowances for estimated uncollectible amounts): Accrued interest Accounts and contracts Mortgages, notes and other loans Rehabilitation advances Property taxes Utility taxes Franchise fees Other Due from other funds (deficit in pooled cash) Due from other governmental entities - grants Due from other governmental entities - other Land held for resale Inventories, at cost Prepaid items Advances to other funds Total assets LIABILITIES Accounts and contracts payable Accrued payroll Due to other funds (deficit in pooled cash) Due to other governmental entities Deposits Construction escrows Deferred revenue Advances from other funds Total liabilities FUND BALANCES Nonspendable inventories and prepaid items Restricted Committed Assigned Unassigned Total fund balances Total liabilities and fund balances City of Clearwater, Florida Balance Sheet Governmental Funds September 30, 2011 Special General Development Fund Fund Attachment number 1 \nPage 3 Capital Other Totals Improvement Governmental Governmental Fund Funds Funds $ 21,222,386 $ 4,684,981 $ 43,048,012 $ 17,804,422 $ 86,759,801 145,685 154,207 2,129 92,117 394,138 604,171 - - - 604,171 - - - 15,436,736 15,436,736 - - - 10,677 10,677 207,603 13,221 - - 220,824 963,733 - - - 963,733 910,349 - - - 910,349 - - - 33,093 33,093 - - 477,218 - 477,218 - - 335,500 520,995 856,495 1,941,148 1,539,215 - 75,253 3,555,616 - - - 4,703,371 4,703,371 24,220 - - - 24,220 - - - 89,830 89,830 - - - 974,267 974,267 $ 26,019,295 $ 6,391,624 $ 43,862,859 $ 39,740,761 $ 116,014,539 $ 468,599 $ 1,091,036 38,392 2,400 457,812 2,058,239 - $ 866,250 $ 676,042 $ 2,010,891 - - 26,705 1,117,741 - - 89,830 89,830 663,460 - 48,643 750,495 - - - 2,400 - - 18,638 18,638 13,221 - 23,545 494,578 - - 2,874,267 2,874,267 676,681 866,250 3,757,670 7,358,840 24,220 - - 89,830 114,050 - 1,209,880 29,148,468 31,632,564 61,990,912 - 186,450 13,961,611 2,983,325 17,131,386 855,550 4,318,613 - 3,085,353 8,259,516 23,081,286 - (113,470) (1,807,981) 21,159,835 23,961,056 5,714,943 42,996,609 35,983,091 108,655,699 $ 26,019,295 $ 6,391,624 $ 43,862,859 $ 39,740,761 $ 116,014,539 The notes to the financial statements are an integral part of this statement. 20 Item # 1 City of Clearwater, Florida Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets September 30, 2011 Total fund balances of governmental funds Capital assets used in governmental activities are not financial resources, therefore, are not reported in the funds. The cost of the assets totals $458,747,225, and the accumulated depreciation totals $181,586,732 Total capital assets for governmental activities Less: Land included in governmental funds as "Land Held for Resale" The net pension asset related to governmental activities does not represent financial resources and is not reported in the funds. Accrued general long-term debt interest expenses are not financial uses and, therefore, are not reported in the funds. Accrued property taxes are not financial resources in the current period and, therefore, are reported as deferred revenues in the funds. Accrued liens are not financial resources in the current period and, therefore, are reported as deferred revenues in the funds. Accrued permit fees are not financial resources in the current period and, therefore, are reported as deferred revenues in the funds. The assets and liabilities of the internal service funds (funds used to charge the costs of certain activities to individual funds) are included in the governmental activities in the statement of net assets. Net assets of internal service funds Less: Capital assets included in total governmental capital assets above Less: Net pension asset included in total governmental net pension asset above Add: Capital lease purchases payable included in total governmental below Add: Compensated absences included in total governmental below Add: Other post-employment benefits included in total governmental below Less: Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Long-term liabilities, including bonds payable, are not due and payable in the current period and accordingly are not reported in the funds. Long-term liabilities at year-end consist of: Bonds payable Less: Deferred charge on refunding (to be amortized as interest expense) Less: Deferred charge for issuance costs (to be amortized over life of debt) Add: Issuance premium (to be amortized as a reduction of interest expense) Capital lease purchases payable Other post-employment benefits Compensated absences Total net assets of governmental activities The notes to the financial statements are an integral part of this statement. 21 $ 277,160,493 (4,703,371) 50,903,812 (15,245,146) (432,401) 7,178,478 903,943 652,134 (4,554,027) (10,660,000) 86, 864 (236,116) (8,722,209) (4,746,443) (7,283,233) Attachment number 1 \nPage 3 $ 108,655,699 272,457,122 5,355,148 (42,997) 220,824 188,609 61,600 39,406,793 (31,561,137) $ 394,741,661 Item # 1 City of Clearwater, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2011 REVENUES Taxes: Property Sales Utility Communications services Othertaxes Total taxes Franchise fees Licenses, permits, and fees Intergovernmental: Federal State Local Total intergovernmental Charges for services Fines and forfeitures Investment earnings Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest & fiscal charges Capital outlay Total expenditures Excess (deficiency) of revenues over / (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Otherlongterm debtissued Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending Special Capital General Development Improvement Fund Fund Fund $ 37,418,067 $ 1,871,894 $ - 7,929,342 13,228,749 - 5,852,335 - 2,170,515 1, 390, 561 58,669,666 11,191,797 9,993,670 - 1,616,408 747,739 - $ Other Governmental Funds Attachment number 1 \nPage 3� Total Governmental Funds $ 39,289,961 7,929,342 13,228,749 5,852,335 3, 561, 076 69,861,463 9,993,670 2.364.147 - - 693,115 3,438,818 4,131,933 10,958,780 - 995,121 785,361 12,739,262 8,015,355 - 20,918 1,785,795 9,822,068 18,974,135 - 1,709,154 6,009,974 26,693,263 12,930,492 - - 1,150,167 14,080,659 1,020,894 - - 617,341 1,638,235 647,353 709,866 11,627 567,881 1,936,727 1,650,756 - 105,399 1,206,715 2,962,870 105,503,374 12,649,402 1,826,180 9,552,078 129,531,034 12,793,975 61,194,729 3,309,612 5,836,366 1,222,991 23,101,060 - 303,188 - 252,086 - 268,958 - 2,516,867 - 874,417 1, 944, 576 2,163, 048 143,702 182,979 1, 549, 592 180,287 1,222,305 15,041,739 63,609,863 3,722,272 8,536,212 2,772,583 180,287 25,197,782 - - - 9,510,054 9,510,054 - - - 856,431 856,431 - - 8,558,490 606,187 9,164,677 107,458,733 - 12,774,006 18,359,161 138,591,900 (1,955,359) 12,649,402 (10,947,826) (8,807,083) (9,060,866) 8,996,293 - 20,384,619 5,527,169 34,908,081 (7,146,505) (13,431,547) (1,916,850) (7,709,488) (30,204,390) - - 1,066,249 - 1,066,249 1,849,788 (13,431,547) 19,534,018 (2,182,319) 5,769,940 (105,571) (782,145) 8,586,192 (10,989,402) (3,290,926) 24,066,627 6,497,088 34,410,417 46,972,493 111,946,625 $ 23,961,056 $ 5,714,943 $ 42,996,609 $ 35,983,091 $ 108,655,699 The notes to the financial statements are an integral part of this statement. 22 Item # 1 City of Clearwater, Florida Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended September 30, 2011 Net change in fund balances - total governmental funds Amounts reported for governmental activities in the Statement of Activities are difFerent because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those costs over the life of the assets. This is the amount by which capital outlays exceeded depreciation in the current period. Expenditures for capital assets Less current year depreciation In the Statement of Activities the loss on disposition of capital assets is reported. The loss is not a use of current resources and thus is not reported in the funds. Repayment of long term debt principal is an expenditure in the governmental funds, however the repayment reduces long-term liabilities in the Statement of Net Assets. Current year amounts are: Revenue bond principal payments Capital lease principal payments Net pension asset is not a current financial resources and consequently is not reported in the funds. However it is an asset in the Statement of Net Assets. Current year change in the net pension asset Liability for other post-employment benefits (OPEB) does not require the use of current financial resources and consequently is not reported in the funds. However it is a liabiliry in the Statement of Net Assets. Current year change in the liabiliry for other post-employment benefits Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds: Current year change in compensated absences Amortization of deferred charge on refunding Amortization of issuance costs Amortization of bond discounts and premiums Current year change in accrued interest expense Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds: Current year change in properry taxes receivable Current year change in liens receivable Current year change in permit fees receivable The net revenues of internal service funds (funds used to charge the costs of certain activities to individual funds) for governmental activities are reported in the Statement of Activities but not in the governmental funds. Total change in net assets of governmental activities The notes to the financial statements are an integral part of this statement. 23 Attachment number 1 \nPage 3 $ (3,290,926) $ 11,936,975 (11,129,378) 807,597 (4,150,226) 9,090,000 420,054 9,510,054 (875,538) (784,185) 128,727 (214,186) (88,000) 1,570 71,289 (100,600) (37,063) 8,619 16,600 2,695,183 $ 2,733,266 Item # 1 City of Clearwater, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Non-GAAP Budgetary Basis) General Fund For the Year Ended September 30, 2011 REVENUES Taxes: Property Utility taxes Communications services Other taxes Total taxes Franchise fees Licenses, permits, and fees Intergovernmental: State Local Total intergovernmental Charges for services Fines and forfeitures Investment earnings Miscellaneous Total revenues EXPENDITURES General government City Council City Manager's Office City Attorney's Office Official Records & Legislative Services Public Communications Finance Human Resources Non-Departmental Engineering Public Services Planning City Auditor's Office Office of Management & Budget Total general government Public safety Police Fire Development & Neighborhood Services Total public safety Physical environment Engineering Public Services Total physical environment Transportation Engineering Public Services Total transportation Economic environment Economic Development Total economic environment Culture and recreation Parks and Recreation Library Marine Total culture and recreation Total expenditures (budgetary basis) Excess of revenues over expenditures (budgetary basis) OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) (budgetary basis) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (budgetary basis) Encumbered purchase orders, beginning of year Encumbered purchase orders, end of year Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (GAAP basis) Fund balances - beginning Fund balances - ending Budgeted Amounts Original Final $ 37,271,490 12,858,380 6,610,160 2,160,000 58,900,030 10,575,000 1,455,000 8,683,260 7,708,900 16, 392,160 12,608,360 688,800 1, 240,000 684,000 102,543,350 277,450 1,129,940 1, 538,740 962,750 950,320 2,180,180 1, 052,110 2,148,760 58,104 16,215 1, 329,850 185,080 289, 500 12,118,999 Attachment number 1 \nPage 3� Variance with Actual Final Budget Amounts Positive (Negative) 37,384,600 $ 37,418,067 $ 33,467 13,358,380 13,228,749 (129,631) 5,810,160 5,852,335 42,175 2,060,000 2,170,515 110,515 58,613,140 58,669,666 56,526 10,105,000 9,993,670 (111,330) 1,555,000 1,616,408 61,408 11,000,019 7,708,900 18,708,919 12,785,360 688,800 840,000 1,095,207 104,391,426 278,650 1,129,940 2,206,740 1,011,350 950,820 2,187,780 1, 052,110 3,006,760 58,696 15,696 1, 329,850 185,880 290,700 13,704,972 10,958,780 8,015,355 18,974,135 12,930,492 1,020,894 647,353 1,650,756 105,503,374 258,180 1,089,614 1,766,242 955,461 887,289 2,012,224 1,019,489 2,751,498 56,808 15,931 1,266,042 185,800 291,080 12,555,658 36,221,700 37,162,099 36,205,672 21,557,260 22,709,760 21,996,210 3,096,510 3,113,110 3,069,008 60,875,470 62,984,969 61,270,890 2,643,732 2,670,668 2,584,752 737,773 714,186 724,860 3,381,505 3,384,854 3,309,612 4,371,154 4,385,226 4,263,155 1,682,112 1, 715,918 1,565,177 6,053,266 6,101,144 5,828,332 1, 347,210 1, 347,310 1,236,602 1, 347,210 1, 347,310 1,236,602 18, 076, 640 17, 820, 261 17 , 474 , 983 5,047,920 5,123,420 4,898,160 525,540 618,540 576,037 23,650,100 23,562,221 22,949,180 107,426,550 111,085,470 107,150,274 (4,883,200) (6,694,044) (1,646,900) 8,256,740 8,837,205 (4,043,800) (6,860,736) 4,212,940 1, 976,469 (670,260) (4,717,575) (670,260) (4,717,575) 8,996,294 (7,146, 505) 1,849,789 (41,239) 306,455 265,216 145,132 332,094 (192,647) 555,549 1,111,948 20,470 40, 326 440,498 55,889 63, 531 175, 556 32,621 255,262 1,888 (235) 63,808 80 (380) 1,149,314 956,427 713, 550 44,102 1, 714,079 85, 916 (10,674) 75,242 122,071 150,741 272,812 110,708 110,708 345,278 225,260 42, 503 613,041 3, 935,196 5, 047,144 159,089 (285,769) (126,680) 202,889 4,920,464 (1,164,011) (1,164,011) 855,551 855,551 (105,571) 4,612,004 24,066,627 24,066,627 24,066,627 - $ 23,396,367 $ 19,349,052 $ 23,961,056 $ 4,6�12,004 The notes to the financial statements are an integral part of this statement. 24 City of Clearwater, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (GAAP Basis) Special Development Fund For the Year Ended September 30, 2011 REVENUES Taxes: Property Sales Othertaxes Total taxes Licenses, permits, and fees Investment earnings Total revenues EXPENDITURES Total expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Excess /(Deficiency) of revenues and other sources over expenditures and other uses Fund balances - beginning Fund balances - ending Budgeted Amounts Actual Original Final Amounts Attachment number 1 \nPage 3 Variance with Final Budget Positive (Negative) $ 1,864,560 $ 1,867,170 $ 1,871,894 $ 4,724 8,025,340 7,500,340 7,929,342 429,002 1,400,000 1,400,000 1,390,561 (9,439) 11,289,900 10,767,510 11,191,797 424,287 170,000 764,000 747,739 (16,261) 25,000 733,000 709,866 (23,134) 11,484,900 12,264,510 12,649,402 384,892 11,484,900 12,264,510 12,649,402 384,892 (15,621,530) (13,431,547) (13,431,547) (15,621,530) (13,431,547) (13,431,547) (4,136,630) (1,167,037) (782,145) 6,497,088 6,497,088 6,497,088 384,892 $ 2,360,458 $ 5,330,051 $ 5,714,943 $ 384,892 The notes to the financial statements are an integral part of this statement. 25 Item # 1 City of Clearwater, Florida Statement of Net Assets Proprietary Funds September 30, 2011 ASSETS Current assets: Cash and investments Accrued interest receivable Accounts and contracts receivable: Billed Unbilled charges estimated Less: Allowance for uncollectable accounts Total receivables, net Other receivables Due from other funds Due from other governmental entities Inventories, at cost Prepaid expenses and other assets Total current assets - unrestricted Current assets - restricted: Restricted cash and investments Due from other governmental entities Total current assets - restricted Total current assets Noncurrent assets: Restricted: Restricted cash and investments Deferred charges Other receivables Advance to other funds Net pension asset Capital assets: Land and other nondepreciable assets Capital assets, net of accumulated depreciation Total noncurrent assets Total assets Attachment number 1 \nPage 3 Business-type Enterprise Water and Sewer Gas Solid Waste Utility Utility Utility $ 37,713,951 $ 24,496,101 $ 21,377,224 424,705 112,229 87,854 3,342,676 1,038,939 1,048,001 2,071,300 1,410,300 670,119 5,413,976 2,449,239 1,718,120 (110,613) (48,220) (34,028) 5,303,363 2,401,019 1,684,092 - 260,440 - 2,866,784 - - 730,209 1,020,570 - 11,223 - 16,113 47,050,235 28,290,359 23,165,283 10,568,272 2,598,624 998,850 350,942 - - 10,919,214 2,598,624 998,850 57,969,449 30,888,983 24,164,133 51,509,571 300,000 - 1,644,043 244,749 - 187,113 - - 721,866 387,093 402,112 13,635,555 336,684 1,041,913 218,499,309 44,132,518 1,900,489 286,197,457 45,401,044 3,344,514 344,166,906 76,290,027 27,508,647 The notes to the financial statements are an integral part of this statement. Item # 1 26 Activities Funds Stormwater Other Utility Funds Total Governmental Activities - Internal Service Funds $ 17,596,688 $ 11,844,289 $ 113,028,253 $ 51,914,402 84,439 88,825 798,052 214,115 822,986 87,751 6,340,353 - 1,272,100 310,881 5,734,700 - 2,095,086 398,632 12,075,053 - (24,012) (2,904) (219,777) - 2,071,074 395,728 11,855,276 - - - 260,440 9,524 - - - 111,925 4,044,938 1,336,097 8,247,819 - - 64,648 1,815,427 500,833 15,672 10,313 53,321 1,329,156 23,812,811 13,739,900 136,058,588 54,079,955 1,780,002 9,300,000 25,245,748 - - - 350,942 - 1,780,002 9,300,000 25,596,690 - 25,592,813 23,039,900 161,655,278 54,079,955 2,785,950 - 54,595,521 - 317,451 - 2,206,243 - - - 187,113 - - - - 2,439,353 73,026 173,038 1,757,135 432,401 24,341,072 4,126,583 43,481,807 729,591 47,477,157 23,732,319 335,741,792 14,515,555 74,994,656 28,031,940 437,969,611 18,116,900 100,587,469 51,071,840 599,624,889 72,196,855 (Continued) 27 Attachment number 1 \nPage 3 Item # 1 City of Clearwater, Florida Statement of Net Assets Proprietary Funds September 30, 2011 LIABILITIES Current liabilities: Accounts and contracts payable Accrued payroll Accrued interest payable Due to other funds - deficit in pooled cash Deposits Unearned revenue and liens Current portion of long-term liabilities: Compensated absences Revenue bonds Notes, loan pool agreement and acquisition contracts Due to other funds Claims payable Total current liabilities (payable from current assets) Current liabilities (payable from restricted assets): Construction contracts payable Accrued interest payable Current portion of long-term liabilities, revenue bonds Customer deposits Total current liabilities payable from restricted assets Total current liabilities Noncurrent liabilities: Compensated absences Other postemployment benefits Revenue bonds (net of unamortized discounts and deferred amount on refunding) Notes, loan pool agreement and acquisition contracts Unearned revenue Advances from other funds Claims payable Total non-current liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted for: Revenue bond debt service and sinking fund requirements Revenue bond renewal and replacement requirements Water and sewer impact fees Stormwater system fees Developer agreements Unrestricted Total net assets Attachment number 1 \nPage 4� Business-type Enterprise Water and Sewer Gas Solid Waste Utility Utility Utility 1,370,634 1,744,710 431,233 139,215 63,260 77,365 12,516 11,775 4,745 396,003 296,095 187,097 865,000 728,750 - 50,345 - 82,673 2,833,713 2,844,590 783,113 1,601,604 1,601,604 - - 2,359,166 54,108 - 4,325,000 66,250 - 2,633,444 2,478,266 998,850 10,919,214 2,598,624 998,850 13,752,927 5,443,214 1,781,963 221,041 165,273 104,433 643,220 298,369 433,986 173,989,825 13,962,938 - 130,513 - 173,143 187,113 - - 175,171,712 14,426,580 711,562 188,924,639 19,869,794 2,493,525 67,080,518 29,711,264 2,686,586 18,122,734 66,250 - 16,142,909 300,000 - 7,262,590 - - 46,633,516 26,342,719 22,328,536 $ 155,242,267 $ 56,420,233 $ 25,015,122 The notes to the financial statements are an integral part of this statement. Item # 1 2s Attachment number 1 \nPage 4 Activities Funds Governmental Activities - Stormwater Other Internal Service Utility Funds Total Funds 71,007 276,499 3,894,083 2,488,310 35,387 50,067 365,294 130,396 - - 29,036 - - 387,388 387,388 - - 52,359 52,359 - - 22,836 22,836 701,861 151,101 125, 556 1,155,852 580,129 96,250 - 1,690,000 - 55,519 48,311 236,848 2,416,440 - 20,271 20,271 91,654 - - - 2,219,200 409,264 983,287 7,853,967 8,627,990 - - 1,601,604 - 721,252 - 3,134,526 - 1,058,750 - 5,450,000 - - - 6,110,560 - 1,780,002 - 16,296,690 - 2,189,266 983,287 24,150,657 8,627,990 84,342 70,082 645,171 323,814 182,098 298,434 1,856,107 652,134 37,716,615 - 225,669,378 - 206,984 60,391 571,031 4,762,038 - - 187,113 - - 81,086 81,086 458,267 - - - 6,468,800 38,190,039 509,993 229,009,886 12,665,053 40,379,305 1,493,280 253,160,543 21,293,043 32,684,111 27,750,200 159,912,679 8,066,668 3,529,719 - 21,718,703 - - - 16,442,909 - - - 7,262,590 - 314,981 - 314,981 - - 9,300,000 9,300,000 - 23,679,353 12,528,360 131,512,484 42,837,144 $ 60,208,164 $ 49,578,560 346,464,346 $ 50,903,812 Adjustment to reflect consolidation of internal service fund activities related to 4,554,027 enterprise funds Net assets of business-type activities $ 351,018,373 Item # 1 29 City of Clearwater, Florida Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds For the Year Ended September 30, 2011 Operating revenues: Sales to customers Service charges to customers User charges to customers Billings to departments Rentals Total operating revenues Operating expenses: Personal services Purchases for resale Operating materials and supplies Transportation Utility service Dumping charges Depreciation Interfund administrative charges Other current charges: Professional fees Advertising Communications Printing and binding Insurance Repairs and maintenance Rentals Miscellaneous Data processing charges Taxes Total other current charges Total operating expenses Operating income (loss) Attachment number 1 \nPage 4 Business-type Enterprise Water and Sewer Gas Solid Waste Utility Utility Utility $ 59,215,034 $ 35,101,714 $ 470,887 1,139,989 18,797,495 84,683 59,685,921 36,241,703 18,882,178 10,056,587 7,616,248 2,623,291 988,301 3,081,043 11,721,789 5,440,500 1,685,586 178,376 735,980 7,085,245 406,956 406,160 10,498,303 52,026,062 7,659,859 The notes to the financial statements are an integral part of this statement. 30 4,585,370 14,349,030 234,872 569, 375 88,496 1,579,548 2,303,610 266,346 537,865 78,577 11,006 431,929 76,809 5,085 82,402 314,060 1,999,438 3,803,517 27,513,818 8,727,885 5,922,224 13,343 363,273 3,272,851 90,573 4,160,197 268,250 884,680 60,370 6,742 57,209 1,464 190,990 104,120 1, 769 44,450 142,090 609,204 15,584,595 3,297,583 Item # 1 Activities Funds Stormwater Utility $ 15,097,029 $ 67,660 15,164,689 2,786,769 351,207 828,708 2,465,160 1,417,680 1,044,083 28,078 58,290 1,187,555 60,274 154,420 2,532,700 10,382,224 4,782,465 Other Funds 4,486,700 $ 7,286 6,425,773 1,813,201 12,732,960 3,450,701 2,768,262 191,517 594,054 377,543 1,511,058 1,714,401 397,080 34,700 35,580 12,979 155,560 500,117 454,613 281,390 102,980 6,402 1,981,401 12,588,937 144,023 31 Total Governmental Activities - Internal Service Funds 132,697,972 $ - 1,770,505 - 6,425,773 - - 40,754,833 1,813,201 - 142, 70 7, 451 40, 754, 833 26,801,651 24,746,883 3,764,160 6,253,289 3,637,655 4,160,197 17,545,805 11,760,871 3,453,465 579,307 377,820 25,449 1,572,749 8,953,846 461,467 875,472 1,119,710 2,005,840 19,425,125 118,095,636 24,611,815 10,392,395 4,535,075 603,689 287,843 530,640 4,751,268 270,670 914,079 1,002,541 14,708 16,168,819 2,525,090 381,595 210,425 388,710 8,299 21,614,266 42,985,846 (2,231,013) (Continued) Attachment number 1 \nPage 4 Item # 1 City of Clearwater, Florida Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds For the Year Ended September 30, 2011 Nonoperating revenues (expenses): Investment earnings Interest expense Amortization of bond issue costs Gain on exchange of capital assets Loss on exchange of capital assets Other Total nonoperating revenue (expenses) Income (loss) before contributions and transfers Capitai grants and contributions Transfers in Transfers out Changes in net assets Attachment number 1 \nPage 4� Business-type Enterprise Water and Sewer Gas Solid Waste Utility Utility Utility 1,663,119 (8,632,229) (135,520) (40,974) 123,860 (7,021,744) 638,115 3,756,337 161,423 (3,120,268) 1,435,607 551,070 (741,031) (27,440) (730) 228, 347 10,216 8,738,101 4,940 (1,795,149) 6,947,892 449,138 (16, 001) 322,791 755, 928 4,053,511 14,795 (968,370) 3.099.936 Total net assets - beginning 153,806,660 49,472,341 21,915,186 Total net assets - ending $ 155,242,267 $ 56,420,233 $ 25,015,122 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Change in net assets of business-type activities (page 19) The notes to the financial statements are an integral part of this statement. Item # 1 32 Activities Funds Stormwater Other Utility Funds Total 434,372 (1,751,811) (27,242) (9,065) 57,273 (1,296,473) 3,485,992 1,300,438 2,489 (1,028,557) 3,760,362 56,447,802 399,166 (54,364) 212, 353 557,155 701,178 232,899 609,747 (1,391,527) 152,297 49,426,263 $ 60,208,164 $ 49,578,560 3,496,865 (11,195,436) (190,202) (50,769) 944,624 (6,994,918) 17,616,897 5,289,674 793,394 (8,303,871) 15,396,094 (617,881) $ 14,778,213 33 Governmental Activities - Internal Service Funds 1,065,851 (223,225) 220,121 (7,593) 159,425 1,214,579 (1,016,434) 286,950 2,821,155 (14,369) 2,077,302 48,826,510 $ 50,903,812 Attachment number 1 \nPage 4 Item # 1 City of Clearwater, Florida Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2011 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers Cash received from other funds Cash payments to suppliers Cash payments to employees Cash payments to other funds Otherrevenues Net cash provided by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds Transfers to other funds Receipt of cash on loans to/from other funds Payment of cash on loans to/from other funds Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on debt Interest paid Acquisition of capital assets Sale of capital assets Proceeds from issuance of debt Payment of bond issue costs Capital contributed by: Other governmental entities Property owners Developers Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Attachment number 1 \nPage 4� Business-type Enterprise Water and Sewer Gas Solid Waste Utility Utility Utility $ 59,627,614 $ 35,453,280 $ 18,872,754 (17,739,324) (19,482,484) (4,730,801) (10,200,245) (5,040,979) (5,904,900) (8,805,021) (2,382,187) (4,547,820) 123,860 228,347 322,791 23,006,884 8,775,977 4,012,024 161,422 4,940 14,795 (3,120,268) (1,795,149) (968,370) (2,958,846) (1,790,209) (953,575) (52,984,150) (653,385) (123,160) (9,373,431) (752,901) (19,495) (12,747,817) (3,652,641) (186,193) 48,445,050 - - (494,871) - - 3,517,424 - - 6,420 - - 232,493 - - (23,398,882) (5,058,927) (328,848) 1,872,036 586,846 467,943 1,872,036 586,846 467,943 (1,478,808) 2,513,687 3,197,544 101,270,602 24,881,038 19,178,530 $ 99,791,794 $ 27,394,725 $ 22,376,074 Cash and cash equivalents classified as: Cash and investments $ 37,713,951 $ 24,496,101 $ 21,377,224 Restricted cash and investments 62,077,843 2,898,624 998,850 Total cash and cash equivalents $ 99,791,794 $ 27,394,725 $ 22,376,074 The notes to the financial statements are an integral part of this statement. �terp # � 34 Attachment number 1 \nPage 4 Activities Funds Governmental Activities - Stormwater Other Internal Service Utility Funds Total Funds $ 15,060,817 $ 12,596,022 $ 141,610,487 $ - - - - 40,754,833 (3,275,178) (6,044,188) (51,271,975) (24,922,714) (2,787,240) (3,468,794) (27,402,158) (10,371,881) (2,504,145) (2,365,342) (20,604,515) (1,513,656) 57,273 212,353 944,624 86,095 6,551,527 930,051 43,276,463 4,032,677 2,489 609,747 793,393 2,821,155 (1,028,557) (1,391,527) (8,303,871) (14,369) - 387,388 387,388 - - - - (1,899,999) (1,026,068) (394,392) (7,123,090) 906,787 (1,162,756) (61,279) (54,984,730) (2,910,022) (1,754,202) (26,167) (11,926,196) (223,225) (2,159,823) (1,078,248) (19,824,722) (5,175,379) - - - 220,121 289,687 - 48,734,737 2,707,070 - - (494,871) - 1,408,782 338,420 5,264,626 - - - 6,420 - - - 232,493 - (3,378,312) (827,274) (32,992,243) (5,381,435) 451,238 444,401 3,822,464 1,153,609 451,238 444,401 3,822,464 1,153,609 2,598,385 152,786 6,983,594 711,638 19,564,255 20,991,503 185,885,928 51,202,764 $ 22,162,640 $ 21,144,289 $ 192,869,522 $ 51,914,402 $ 17,596,688 $ 11,844,289 $ 113,028,253 $ 51,914,402 4,565,952 9,300,000 79,841,269 - $ 22,162,640 $ 21,144,289 $ 192,869,522 $ 51,914,402 (Continued) Item # 1 35 City of Clearwater, Florida Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2011 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Other nonoperating revenue Depreciation Capitalized labor Construction in process reclassified as expense Change in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in amount due from other governments (Increase) decrease in inventory (Increase) decrease in prepaid expenses Increase (decrease) in accounts and contracts payable Increase (decrease) in deposits payable Increase(decrease)in unearnedrevenue (Increase) decrease in net pension asset Increase (decrease) in accrued payroll Increase (decrease) in other postemployment benefits Total adjustments Net cash provided by operating activities Noncash investing, capital and financing activities: Capital assets transferred from General Government Attachment number 1 \nPage 4 Business-type Enterprise Water and Sewer Gas Solid Waste Utl�lty Utl�lty Utl�lty $ 7,659,859 $ 8,727,885 $ 3,297,583 123,860 11, 721, 789 (273,489) (168,814) 3,533,974 127,881 189,165 41,533 115,640 (219, 918) 155,404 15.347.025 228,347 1, 579, 548 (588,864) (319,841) (168,902) 1,901 152, 721 (881,743) 58, 712 (83,121) 69,334 48.092 322,791 268,250 (62,983) 115, 500 53,559 66,473 (149,989) 100,840 714.441 $ 23,006,884 $ 8,775,977 $ 4,012,024 $ - $ - $ - The notes to the financial statements are an integral part of this statement. Item # 1 36 Attachment number 1 \nPage 4 Activities Funds Governmental Activities - Stormwater Other Internal Service Utility Funds Total Funds $ 4,782,465 $ 144,023 $ 24,611,815 $ (2,231,013) 57,273 212,353 944,624 159,425 2,465,160 1,511,058 17,545,805 4,751,268 - - (862,353) - (210,231) - (210,231) - (103,872) (171,817) (827,327) (9,524) (437,558) - 3,096,416 - - (31,938) (72,959) (40,949) (100) - (100) (79,475) (1,239) (750,414) (445,087) 1,526,237 - 18,967 266,780 - - 15,912 (865,831) (63,806) 30,365 30,195 301,385 125,184 (75,981) (114,692) (643,701) (230,308) 45,245 66,404 437,227 125,638 1,769,062 786,028 18,664,648 6,263,690 $ 6,551,527 $ 930,051 $ 43,276,463 $ 4,032,677 $ - $ - $ - $ 279,975 Item # 1 37 City of Clearwater, Florida Statement of Fiduciary Net Assets Fiduciary Funds September 30, 2011 ASSETS Cash and investments Managed investment accounts, at fair value: Cash and cash equivalents Government bonds Agency bonds Domestic corporate bonds International equity securities Domestic stocks Mortgage backed bonds Asset backed securities Commodity exchange-traded funds Domestic equity mutual funds International equity mutual funds Real estate Total managed investment accounts Securities lending collateral Receivables: Interest and dividends receivable Unsettled investment sales Securities lending earnings receivable Accounts receivable Total receivables Total assets LIABILITIES Accounts payable Unsettled investment purchases Obligations under securities lending Other miscellaneous payables: Downtown Development Board Special purpose funds Other Total miscellaneous payables Total liabilities NET ASSETS Held in trust for pension benefits and other purposes Total net assets The notes to the financial statements are an integral part of this statement. 38 Pension Trust Funds Attachment number 1 \nPage 5� Agency Fund $ 3,502,986 $ 423,275 38,559,675 - 32,906,901 - 15,470,253 - 70,609,858 - 66,784,078 - 248,788,426 - 68,049,561 - 759,343 - 1,238,215 - 42,680,473 - 26,937,654 - 24,816,012 - 637,600,449 - 150,576,091 - 2,113, 057 1, 508 12,540,708 - 44,292 - 32,696 - 14,730,753 1,508 806,410,279 424,783 798,159 - 20,706,584 - 150,576,091 - - 309,959 - 7,640 - 107,184 - 424,783 172,080,834 424,783 634,329,445 - $ 634,329,445 $ - Item # 1 City of Clearwater, Florida Statement of Changes in Fiduciary Net Assets Fiduciary Funds For the Year Ended September 30, 2011 ADDITIONS Contributions: Contributions from employer Contributions from employer - state tax Contributions from employees Total contributions Investment income: Net depreciation in fair value of investments Interest Dividends Less investment expenses: Investment management / custodian fees Net income (loss) from investing activities Securities lending income: Gross earnings Gain on securities lending collateral Rebate paid Bankfees Net income from securities lending Total additions DEDUCTIONS Benefits and withdrawal payments: Benefits Withdrawal payments Total benefits and withdrawal payments Income (loss) before administrative expenses Administrative expenses Netincrease(decrease) Net assets held in trust for pension benefits: Beginning of year End of year The notes to the financial statements are an integral part of this statement. 39 Pension Trust Funds $ 17,652,617 1,962,592 6,049,656 25,664,865 (15,383,359) 8,295,692 6,847,665 (240,002) 3,827,420 (4,067,422) 497,674 1,556,260 131, 722 (220,091) 1,965,565 23,563,008 32,914,832 1,052,623 33,967,455 (10,404,447) 201,339 (10,605,786) 644,935,231 $ 634,329,445 Attachment number 1 \nPage 5 Item # 1 Attachment number 1 \nPage 5 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Note I— Summary of Significant Accounting Policies The City of Clearwater, Florida (the City) was incorporated in 1923 per Chapter 9710, Special Laws of Florida, as amended. The City is a Florida municipal corporation governed by a five member City Council including a mayor-council- member. The City has an estimated population of 108,000 and is located in the four-county Tampa-St. Petersburg- Clearwater Metropolitan Statistical Area (MSA), which has an estimated population of 2,783,000. The financial statements of the City of Clearwater, Florida, reporting entity (City) have been prepared in accordance with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. Pronouncements of the Financial Accounting Standards Board (FASB) issued after November 30, 1989, are not applied in the preparation of the financial statements of the enterprise fund types in accordance with GASB Statement Number 20. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. The City's more significant accounting policies are described below. A. Financial Reporting Entity In evaluating the City as a reporting entity, management has included in the accompanying financial statements the City of Clearwater (the primary government) and its component units, entities for which the government is considered to be financially accountable. The City has adhered to the standards set forth in GASB Statement No. 14, as amended by GASB Statement No. 39, in reporting the primary government (including blended component units), the reporting entity, and related organizations. Blended Component Unit — Clearwater Communitv Redevelopment Aqencv: Component units that meet the criteria for blended presentation in accordance with GASB Statement Number 14, as amended by GASB Statement No. 39, are reported in a manner similar to that of the primary government itself. Accordingly, throughout this report, data presented for the primary government includes data of the following blended component unit. The Clearwater Community Redevelopment Agency (CRA), created by authority of Florida Statute Chapter 163, Part III, and City of Clearwater Resolution 81-68, although it is legally separate, is reported as if it were part of the City (blended component unit) due to the City Council serving as the governing board of the CRA. Separate financial statements for the CRA are not available. However financial statements for the CRA are included in the City's comprehensive annual financial report as a governmental non-major special revenue fund and a governmental non-major capital projects fund. Related Orqanization — Clearwater Housinq Authority (CHA�: CHA is a public housing authority created by City Resolution 69-5 (1969), under Section 421.04 of the Florida Statutes. CHA receives primary funding from the Federal Department of Housing and Urban Development (HUD). The City Council appoints the governing board, however the City Council is not able to impose its will on the CHA, nor does the City have any responsibility for the budget, debt, financing deficits, or fiscal management of CHA. Consequently it is not a component unit of the City of Clearwater. Separate audited financial statements of CHA as of September 30, 2011, are available from CHA. Related Organization — Downtown Development Board: The City of Clearwater serves as administrative agent for the Clearwater powntown Development Board (DDB). The Downtown Development Board is an independent special district of the City of Clearwater with an independent board elected by its members, with its own levy (0.9651 mills for fiscal 2011) on downtown properties, and is not financially dependent upon the City. Consequently it is not a component unit of the City of Clearwater. The DDB's cash balance held by the City as administrative agent is reflected in the City's fiduciary agency fund. Separate audited financial statements of the DDB as of September 30, 2011, are available from the DDB. Item # 1 40 Attachment number 1 \nPage 5 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Jointly qoverned orqanization — Florida Gas Utilitv: The City of Clearwater is a member of the Florida Gas Utility (FGU), a non-profit municipal public entity created for the sole purpose of reducing the costs of purchased gas for its members. FGU is a public body corporate and politic pursuant to Section 163.01 Florida Statutes (the Florida Interlocal Cooperation Act), as amended, and the Interlocal Agreement, dated September 1, 1989, which was subsequently amended by the Amended Interlocal Agreement on June 1, 1992, amended and restated by the Amended and Restated Interlocal Agreement, dated July 1, 1996, and thereafter amended and restated by the Second Amended and Restated Interlocal Agreement, dated July 27, 1999, (the Interlocal Agreement), executed and delivered among FGU and its members, which include municipalities, municipal utilities, and an interlocal agreement consisting of such entities. Due to the diverse needs of municipal utility systems, FGU established itself as a project-oriented agency. Under this structure, each member has the option whether or not to participate in a project. FGU has the authority to, among other things, plan, finance, acquire, construct, manage, operate, deliver, service, utilize, own, broker, exchange, and distribute natural gas, or other energy and energy services, pursuant to the Interlocal Agreement. As of September 30, 2011, FGU has 25 members. Separate audited financial statements of FGU as of September 30, 2011, are available from FGU. B. Basic Financial Statements Under the New Financial Reporting Model The City's Basic Financial Statements contain three components: government-wide financial statements, fund financial statements, and notes to the financial statements. 1. Government-wide financial statements. The government-wide financial statements report information on all of the nonfiduciary activities of the primary government and its component unit using the accrual basis of accounting, which is similar to the accounting used by private-sector businesses. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of net assets presents information on all of the assets and liabilities of the City. The difference between assets and liabilities is reported as net assets. Changes in net assets may serve as an indicator of whether the financial position of the City is improving or deteriorating. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. The operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. Taxes and other items not properly included among program revenues are reported instead as general revenues. All revenues and expenses are reported as soon as the underlying transaction has occurred, regardless of when cash is received or paid. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other interfund services provided and used. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 2. Fund financial statements. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. An emphasis is on the major funds in either the governmental or business-type categories. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Non-major funds (by category) are summarized into a single column. Item # 1 41 Attachment number 1 \nPage 5� City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 The City reports the following major governmental funds: The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Special Development Fund is a special revenue fund used to account for impact fees, property taxes for road improvements, local option gas taxes, infrastructure taxes, and other revenues which are restricted legally or by City Council policy to be used for specific capital improvement projects. The Capital Improvement Fund is used to provide combined accounting presentation for all City capital improvement projects except those financed from proprietary funds or bond proceeds where bond ordinance provisions require the segregation of bond proceeds in separate funds. The City reports the following major proprietary funds: The Water and Sewer Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the water and sewer services of the City from charges made to users of the service. The Gas Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the gas services of the City from charges made to the users of the service. The Solid Waste Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the solid waste services of the City from charges made to the users of the service. The Stormwater Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the stormwater management system of the City from charges assessed against each developed property. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund's principal ongoing operations. Operating expenses for proprietary funds include the cost of sales and service, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Additionally, the City reports the following fund types: Internal service funds account for fleet management, information technology, telephone, employee relations, facilities management, radio communications, insurance, and risk management services provided to other City departments on a cost reimbursement basis. The Garage, Administrative Services, General Services, and Central Insurance funds primarily benefit governmental funds and are consequently included as governmental activities. Pension trust funds account for the financial operation and condition of the Employees' Pension Plan, the Firefighters' Relief and Pension Plan, the Police Supplemental Pension Plan, and the Firefighters Supplemental Pension Plan. The Treasurer's Escrow Agency Fund accounts for the receipt, custody, and expenditure of monies held temporarily in an agency capacity for other parties. The pension trust funds and the agency fund are fiduciary funds used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not included in the government-wide financial statements because the resources of these funds are not available to support the City's own programs. When both restricted and nonrestricted resources are available for use, it is the City's practice to use restricted resources first, then unrestricted resources as needed. Item # 1 42 Attachment number 1 \nPage 5 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. The agency fund included within the fiduciary fund financial statements also uses the accrual basis of accounting but does not have a measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers property tax revenues to be available if they are collected within 60 days of the end of the current fiscal year. Other revenues are considered to be available if they are collected within 90 days of fiscal year-end. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Intergovernmental revenues, representing grants and assistance received from other governmental units, are generally recognized as revenues in the period when all eligibility requirements, as defined by GASB Statement 33, have been met, and funds are available from the grantor agency or government. Taxes, franchise fees, licenses, and interest associated with the current fiscal period are all considered susceptible to accrual and so have been recognized as revenues of the current fiscal period for the governmental funds. All other revenue items are considered to be measurable and available only when cash is received by the City. D. Assets, Liabilities, and Net Assets or Equity 1. Deposits, pooled cash, and investments Investments with original maturities of three months or less are considered to meet the definition of cash equivalents. The majority of the investments in which the City's funds have equity are held by the City's consolidated pool of cash and investments. The City utilizes the consolidated cash pool to account for cash and investments of all City funds other than those that are required by ordinance to be physically segregated. The consolidated cash pool concept allows each participating fund to benefit from the economies of scale and improved yield that are inherent to a larger investment pool. Formal accounting records detail the individual equities of the participating funds. The cash pool utilizes a single checking account for all City receipts and disbursements. Since fund equities in this cash management pool have the general characteristics of demand deposits in that additional funds may be deposited at any time and also funds may be withdrawn at any time without prior notice or penalty, each fund's equity account is considered a cash equivalent regardless of the maturities of investments held by the pool. All individual fund cash equity in a deficit (overdraft) position with respect to the consolidated cash pool is reclassified at year-end to short-term interfund payables to the Capital Improvement Fund. The Capital Improvement Fund is the fund selected by management to reflect the offsetting interfund receivables in such cases. The City has an agreement with its depository bank to provide that all excess cash is swept daily and automatically into an overnight money market account which pays interest at the federal funds rate, with no requirement for a minimum compensating balance. The fed funds rate range was 0.00% to 0.25% at September 30, 2011. This account is collateralized through the State of Florida Public Deposits Program. Under City Charter and the current Investment Policy, adopted by the City Council on September 9, 2010, consolidated cash pool investments are limited to the following: United States Government Securities, Certificates of Deposit in Local Banks, Repurchase Agreements, Savings Accounts in Local Banks, Federal Government Agency Securities, Municipal Item # 1 43 Attachment number 1 \nPage 5� City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Bonds issued by governmental entities within the state of Florida (other than City of Clearwater issues), and State of Florida Bonds. All investments are reported at fair value. The City utilizes a very conservative investment philosophy when it invests its pooled cash funds in that the return of the principal is more important than the return on the principal. The City does not actively trade its portfolio and generally holds investments until maturity. Through the use of a laddered approach to maturities and by timing maturities to cash needs, the City does not anticipate selling investments to meet cash flow requirements. Under the City's Investment Policy, a performance measurement standard has been established. The performance measure chosen is a weighted average of: the overnight interest rate; and three month, six month, one year, three year, five year, and ten year Treasury rates, respectively. For the fiscal year ended September 30, 2011, the performance measure weighted average was 0.76%. The actual pooled cash earnings performance before bank charges was 1.94%. Investments being held outside of the consolidated cash pool include escrowed debt service investments and employee retirement investments. Permissible escrowed debt service investments are specifically defined in each individual debt instrument, but generally follow the same limitations applicable to consolidated cash pool investments. The City maintains four different employee retirement programs, and each one has its own list of permitted investments. Generally, each plan allows the same type of investments as the consolidated cash pool, but additionally allows some portion of its assets to be invested in corporate bonds, notes of corporations, and stocks that are listed on one or more of the recognized national or international stock exchanges. 2. Receivables and payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e. the current portion of interfund loans) or "advances to/from other funds" (i.e. the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances". All trade and property tax receivables are shown net of an allowance for uncollectibles. Trade accounts receivable less than 60 days are included in the trade accounts receivable allowance for uncollectibles at the five-year average loss experience rate of 3.40%. Trade accounts receivable in excess of 60 days are reserved at 40%. The property tax receivable allowance for uncollectibles is 10% of the current year portion of the receivable, and 30%, 50%, 70%, 90%, and 95% for the receivable portions attributable to the prior five years respectively (fiscal 2006 thru 2010), and 100% of the receivable attributable to fiscal years 2005 and prior. Property tax revenue is recognized in the fiscal year for which the taxes are levied, provided the availability test is met, in conformance with NCGA Interpretation No. 3. Property taxes for the following fiscal year are levied by Council action in September of each year. This levy is apportioned to property owners based on the previous January 1 assessed values. Tax bills are mailed out on or about November 1, and the collection period runs from November 1 through March 31. On April 1, unpaid property taxes are considered delinquent and become a lien. Tax certificates are sold in June for real property with delinquent taxes. Since taxes are not collected prior to November 1, the City does not record revenue for advance collections. Uncollected taxes receivable at year-end are recorded, with an appropriate allowance for estimated uncollectible amounts. The net amount deemed to be collectible but not current (not expected to be collected within sixty days after the close of the fiscal year) is shown as deferred revenue in the appropriate fund. All delinquent property taxes, except those levied specifically for the restricted purposes of financing activities accounted for in the Special Development Fund, are recorded in the General Fund. Property tax revenues are recognized in the General Fund and the required transfers to the appropriate debt service or pension fund are recorded as operating transfers from the General Fund. Item # 1 44 Attachment number 1 \nPage 5 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 The City is permitted by State law to levy ten mills without referendum. Additional millage not subject to the ten mill limitation is authorized if approved by referendum. The tax rate of 5.1550 mills for the year ended September 30, 2011 was the same rate that was levied in the preceding fiscal year. Water, gas, solid waste, stormwater, and recycling charges to customers are based on actual consumption. Consum�tion is determined on a monthly cycle basis. The City recognizes the unbilled consumption as revenue as of September 30` . 3. Inventories and prepaid items Inventories of proprietary funds are stated at cost and valued on the first-in first-out (FIFO) basis. In governmental funds, the majority of inventory items are accounted for under the purchases method, which provides that expenditures are recognized when the inventory item is purchased. The only governmental fund inventory that is accounted for under the consumption method is the General Fund inventory of items for resale at the City's public fishing pier. Under the consumption method, the expenditure is recognized when the inventory item is sold (or consumed). Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 4. Restricted assets Certain resources of the City's enterprise funds are classified as restricted assets. Restricted assets include: Water and Sewer improvement charges restricted by the authorizing ordinances to the construction of additions and improvements to the water and sewer systems; Gas Utility and Solid Waste Utility restricted customer deposits; and assets of the Water & Sewer Utility, Gas Utility, and Stormwater Utility funds restricted under the provisions of authorizing ordinances for revenue bonds to the payment of future revenue bond debt service, system construction, and renewals and replacements. 5. Capital assets Capital assets, which include property, plant, equipment, and certain infrastructure assets, (e.g. roads, bridges, etc.) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets, as defined by the City, are assets with an initial individual cost of more than $5,000 (amount not rounded). Individual assets that cost less than $5,000, but that operate as part of a network system, may be capitalized in the aggregate, using the group method. Additionally, higher thresholds for capitalization apply to the following categories: land improvements, $50,000; buildings, building improvements, and utility systems, $100,000; intangible assets, $100,000; and infrastructure, $500,000. Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. The total interest expense incurred by business-type activities during the current fiscal year was $11,195,436. Interest expense amounts were netted against related project interest earnings of $290,337, $-0-, and $-0-, respectively, to arrive at net capitalized interest of $70,158, $90,679, and $52,785 for water & sewer, gas, and stormwater system projects, respectively. Property, plant, equipment, and intangible assets of the primary government are depreciated using the straight-line method over the following estimated useful lives: Item # 1 45 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Assets Years Buildings 10 — 40 Public domain infrastructure 20 — 40 Utility systems 18 — 40 Machinery & equipment 5 — 15 Vehicles 5 — 10 Intangible assets 5 — 20 6. Compensated absences Attachment number 1 \nPage 5 It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Vacation and sick leave "caps" vary depending upon an employee's bargaining unit, hire date, etc, but generally employees may accumulate vacation time not exceeding 320 hours and sick leave not exceeding 1,560 hours. Upon retirement from City service a qualified employee is paid for all vacation time not exceeding the applicable vacation "cap" and one-half of accumulated unused sick leave not exceeding the sick leave cap (i.e. maximum pay-out of 780 hours for an employee with a 1,560 hour cap). The City accrues for all earned but unused vacation pay up to the applicable cap and the portion of unused sick leave estimated to be payable upon retirement. The current portion of compensated absences is the amount estimated to be used in the following year. For governmental activities, compensated absences are liquidated within the same governmental funds where the employee vacation and/or sick leave was earned. 7. Long-term obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8. Fund equity The City has implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, for the fiscal year ended September 30, 2011. The objective of this statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied. This statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which the government is bound to observe constraints imposed upon the use of the resources reported in the governmental funds. Each classification of fund balance is based on the relative strength of the constraints that control how specific amounts can be spent. The order of spending follows the same hierarchy. Restricted resources are applied first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned or unassigned) amounts are available. Item # 1 46 Attachment number 1 \nPage 5 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. Nonspendable fund balance represents amounts that cannot be spent, such as inventories, prepaid amounts, and amounts that are legally or contractually required to remain intact. Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal vote of the City Council. Assigned fund balance includes amounts that are intended to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed because they are supported by management's intent rather than a formal action of the City Council. Positive unassigned fund balance should only be reported in the General Fund. In all other funds, unassigned is limited to negative residual fund balances. Minimum fund balance: Per City Council Policy a minimum General Fund unassigned balance of 8.0% of the subsequent year's budgeted expenditures must be maintained as a contingency fund for unanticipated financial needs. In addition, 0.5% of the subsequent year's budgeted expenditures must be maintained to fund unanticipated retirements of employees residing in General Fund departments. Budgeted appropriations will maintain these minimum reserves of 8.5% of subsequent year's budgeted expenditures, with excess reserves available for specific capital improvement projects or other "one-time" needs. Note II — Stewardship, Compliance, and Accountability A. Budgets and budgetary accounting Annual budgets are legally adopted for the General Fund, Special Development special revenue fund, and the Community Redevelopment Agency special revenue fund. The budget for the Special Development Fund is adopted on a basis consistent with GAAP, and appropriations lapse at year-end. Appropriations for open encumbered purchase orders at year- end in the General Fund do not lapse, but rather continue until liquidated or otherwise cancelled by City Council action. For the General Fund budgetary comparison statements, actual expenditures have been adjusted to include end-of-year encumbrances and to exclude beginning-of-year encumbrances, in order to provide a meaningful comparison. Except for the treatment of encumbrances and certain transactions relating to interfund loans, the General Fund Budget is adopted on a basis consistent with GAAP, and all non-encumbered appropriations lapse at year-end. The level of budgetary control established by the legislative body, the level on which expenditures may not legally exceed appropriations, is the individual fund. In accordance with provisions of Ordinance 5025-90 and with Section 2.519(4) of the Clearwater Code, the City Manager may transfer part or all of any unencumbered appropriation balance among programs within an operating fund, provided such action does not result in the discontinuance of a program. Such transfers must be included in the next budget review presented to the City Council. Upon detailed written request by the City Manager, the Item # 1 47 Attachment number 1 \nPage 6� City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 City Council may by ordinance transfer part or all of any unencumbered appropriation balance from one fund to another. As established by administrative policy, department directors may transfer money from one operating code to another within a program without a formal written amendment. Formal requests for budget amendments from department directors are required for transfers, capital expenditures, and reserves. Thus, certain object classifications within departmental and/or program budget appropriations are subject to administratively imposed controls, in addition to the legal controls imposed by City Council action described above. The Community Redevelopment Agency (CRA) Fund annual budget is adopted by the trustees of that agency in accordance with state law. The level of budgetary control is the total fund. The CRA Fund Budget is adopted on a basis consistent with GAAP, and all appropriations lapse at year-end. Budget amounts presented in the accompanying financial statements reflect all amendments adopted by the City Council and the governing board of the component unit. All amendments were adopted in conformance with legal requirements. Individual amendments, as well as the net effects of all amendments during the fiscal year, were not material in relation to the original appropriations for the governmental funds in the aggregate. Budgets for the Capital Projects Funds, the Special Programs Fund, the Local Housing Assistance Trust Fund, and the Pinellas County Local Housing Assistance Trust Fund are adopted on a multi-year completed program basis, where budgetary appropriations do not lapse at year-end, but may extend across two or more fiscal years. A comparison of annual results with these budgets would not be meaningful and is therefore not included in this report. All City Council adopted budgets are integrated into the formal accounting system to allow for monthly comparison of projected and actual results in all funds for which budgets are adopted. Note III — Detailed Notes on All Funds A. Deposits and investments Investments with original maturities of three months or less are considered to meet the definition of cash equivalents. The majority of the investments in which the City's proprietary funds have equity are held by the City's consolidated pool of cash and investments. Since fund equities in this cash management pool have the general characteristics of demand deposits, in that additional funds may be deposited at any time and also funds may be withdrawn at any time without prior notice or penalty, each fund's equity account is considered a cash-equivalent regardless of the maturities of investments held by the pool. Funds with deficit (overdraft) positions within the consolidated pool report the deficits as interfund payables to the City's Capital Improvement Fund. Deposits All cash of the City is entirely insured either by federal depository insurance or via banks' participation as qualified public depositories pursuant to Florida Statutes, Chapter 280, "Security for Public Deposits". The City is required to verify that monies are invested in "qualified public depositories" as defined in Florida Statutes section 280.02. Pooled Cash and Investments To increase returns and minimize fees, the City follows the practice of pooling available cash and investments of all funds with the exception of retirement plan investments and assets held under Bond Trust Indenture Agreements. Please refer to Note (I)(D)(1) for a discussion of allowable investments under the pooled cash and investments investment policy. All investments at year-end were in compliance with the pooled cash and investments investment policy. Item # 1 48 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Pooled Cash and Investments Cash and cash equivalents: Cash on hand Money Markets Total cash and cash equivalents Investments: Treasuries U.S. Agencies: Farmer Mac (FAMCA) Government National Mortgage Assn (GNMA) Federal Farm Credit Bank (FFCB) Federal Home Loan Bank (FHLB) Federal Home Loan Mortgage Assn (FHLMC) Federal Home Loan Mortgage Assn Zeroes Federal National Mortgage Assn (FNMA) Federal National Mortgage Assn (FNMA) Zeroes Dept of Housing and Urban Development (HUD) Student Loan Marketing Association (SLMA) Student Loan Marketing Association (SLMA) Tennessee Valley Authority (TVA) Tennessee Valley Authority (TVA) Zeroes Other Government Sponsored Agencies Other Government Sponsored Agencies - Zeroes Total U.S. Agencies Municipal bonds Municipal bonds Total municipal bonds Asset Backed Bonds Collateralized mortgage obligations Total investments Total pooled cash and investments Attachment number 1 \nPage 6 Carrying % of Weighted avg Moody's Amount Portfolio maturity (vears) Ratinq $ 153,362 23,921,378 7.1 % 24,074,740 7.2% 2,249,921 0.7% 15,838,087 17,439,181 17,338,956 67,282,372 41,541,842 1,477,284 66,818,852 8,459,815 5,387,947 6,839,000 4,367,965 5,398,393 5,385,443 15,589,657 424,962 279,589,756 9,992,804 1,438,794 11,431,598 9,050,998 9,072,973 311,395,246 $ 335,469,986 49 4.7% 5.2% 5.2% 20.1 % 12.4% 0.4% 19.9% 2.5% 1.6% 2.0% 1.3% 1.6% 1.6% 4.6% 0.1 % 83.3% 3.0% 0.4% 3.4% 2.7% 2.7% 92.8% 100.0% n/a n/a n/a n/a 7 n/a 2.16 3.05 2.04 3.60 2.78 10.97 5.77 9.57 5.93 1.31 3.90 5.40 4.13 3.20 0.44 1.58 10.90 5.31 1.91 3.85 Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Ba1 Aaa/NR Aaa/NR Aaa Aaa Aa2/Aa3/A3 Baa1/NR Aaa Aaa Item # 1 Attachment number 1 \nPage 6 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Cash and investments as of September 30, 2011 are classified in the accompanying financial statements as follows: Statement of net assets Primary Government: Cash and investments Restricted cash and investments Fiduciary Funds: Cash and investments-pension funds Cash and investments-agency fund Total cash and investments per CAFR Interest Rate Risk — Pooled Cash and Investments: 09/30/11 251,702,456 79,841,269 3,502,986 423,275 335,469,986 As a means of limiting exposure to fair value losses arising from rising interest rates, the City's pooled cash investment policy prohibits investments in securities maturing more than fifteen years from the date of purchase, unless matched to a specific cash flow requirement. Additionally, the policy allows no more than 10% of the portfolio to have maturities in excess of ten years unless specifically matched against a debt or obligation. Finally, the policy requires that the weighted average maturity be four years or less, except for temporary situations due to market conditions and/or cash needs when the average maturity may exceed four years but shall not exceed five years. Weighted average maturities for the City's pooled cash investments are indicated in the table above. Credit Risk — Pooled Cash and Investments: The City's pooled cash investment policy, in accordance with Florida Statutes, allows investments to direct obligations of the United States, federal agencies, debt issued by the State of Florida or any political subdivision, and commercial paper of prime quality of the highest letter and numerical rating as provided by at least one nationally recognized rating service. Ratings for the City's pooled cash investments are disclosed in the preceding table. Concentration of Credit Risk — Pooled Cash and Investments: The City's pooled cash investment policy limits the investment in any one issuer to 40% of the portfolio. Concentrations for several issuers exceeded 5% as disclosed in the preceding table, though none exceeded the 40% limit per the policy. Pension Plan Assets The City reports four pension funds in the accompanying financial statements. Each of the plans has a separate governing board of trustees, a separate investment policy, and differing investment restrictions/risks. Consequently each is disclosed separately below. All investments at year-end were in compliance with the respective plan investment policies. Please refer to Note (I)(D)(1) for a discussion of allowable investments under the pension plans. Emplovees Pension Plan At year-end, the Employees' Pension Plan cash and investment balances were as follows: � Item # 1 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Employees' Pension Plan Cash and Investments Cash and cash equivalents: Cash and cash equivalents - pooled cash Cash in managed investment accounts Total cash and cash equivalents Investments: Government bonds Government bonds Government bonds Government bonds Government bonds Government bonds Treasuries - index linked U.S. agencies U.S. agencies U.S. agencies U.S. agencies U.S. agencies Domestic corporate bonds Domestic corporate bonds Domestic corporate bonds Domestic corporate bonds Domestic corporate bonds Domestic corporate bonds Asset backed bonds Domestic stocks International equity securities Mortgage backed bonds Commodity exchange traded notes International equity mutual funds Domestic equity mutual funds Real Estate/Timber Total investments Total cash and investments Interest Rate Risk — Employees' Pension Plan: Carrying Amount $ 781,117 37,408,464 38,189,581 15,623,039 566, 761 2, 680, 844 5,452,399 954,576 2,314,679 1, 688, 005 5, 813, 022 3,823,373 397, 090 252, 042 891,262 7,582,210 19,685,611 31,348,863 3,985,798 531,000 3, 701, 235 759,343 241, 368, 780 66,784,078 66,787,964 1,238,215 25,612,532 38,066,505 24,816,012 572,725,238 $ 610,914,819 % of Weighted avg Portfolio maturity�vearsl 0.1 °/o n/a 6.1 % n/a 2.6% 0.1 % 0.4% 0.9% 0.2% 0.4% 0.3% 1.0% 0.6% 0.1 % 0.0% 0.1 % 1.2% 3.2% 5.1 % 0.7% 0.1 % 0.6°/a 0.1 % 39.5% 10.9% 10.9% 0.2% 4.2% 6.2°/a 4.1 °/a 100.0% 9.1 23.1 n/a n/a 24.3 n/a n/a n/a Attachment number 1 \nPage 6 S&P Ratinq n/a n/a Aaa Aa2 A- A1 A3 Baa 1 /Nr AAA AGY Aaa Aa1 A1 Baa1/Nr Aa 1 /Aa2/Aa3 A1 /A2/A3 Baa1/Baa2/Ba3 Ba1/Ba2/Ba3 B1/B2/B3 NR NR n/a n/a AGY/Aaa n/a n/a n/a As a means of limiting exposure to fair value losses arising from rising interest rates, the Employees' Pension Plan investment policy limits the investment in fixed income investments to no more than 50% of the portfolio. There are no limits related to weighted average maturities due to the long-term nature of pension plan investing. Credit Risk — Employees' Pension Plan: The Employees' Pension Plan investment policy limits credit risk by restricting equity investments to corporations that are listed on one of the national or international stock exchanges. Additionally, fixed income corporate bonds must carry an "investment grade" rating as established by one of the nationally recognized rating agencies. At September 30, 2011, the Plan had $8,218,033 invested in domestic corporate bonds that had fallen below investment grade as the result of investment downgrades, as indicated on the table above. The respective money managers notified the Pla��a�il�i�trators 51 Attachment number 1 \nPage 6� City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 of the downgrades and the planned courses of action related to these securities on a timely basis, consistent with the policy's individual manager guidelines. Concentration of Credit Risk — Employees' Pension Plan: The Employees' Pension Plan investment policy limits concentration of credit risk by limiting the investment in common stock or capital stock of any one corporation to 3% of the plan equity assets, unless due to a higher percentage included in a nationally recognized market index at least as broad as the Standard and Poor's Composite Index of 500 companies, or upon a specific finding by the investment committee that such higher percentage is in the best interest of the fund. Additionally, the individual manager guidelines associated with the policy provide further diversification of both equity and fixed income investments to minimize concentration of credit risk. Foreign Currency Risk — Employees' Pension Plan: Risk of loss arises from changes in currency exchange rates. The Employees' Pension Plan investment policy does not have a formal policy to limit foreign currency risk, other than a guideline of no more than 25% of the plan assets invested in international equities. The Pension Plan's exposure to foreign currency risk is as follows: Investment Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Currencv Hong Kong Dollar South Korea Won Brazil Real Euro Chinese Yan Renminibi Taiwan Dollars India Rupee South Africa Rand Mexico Pesos United Kingdom UK Pound Japanses Yen Thailand Bath Russian Ruble Malaysia Ringgit Indonesia Rupiah Singapore Dollar Norwegian Krone Chile Peso Poland Zloty Turkey Liras Czeck Rep Koruna Philippines Peso Swiss Franc Swedish Krona Hungary Forint Fair Value 6, 087, 382 5,205,924 4,306,889 3,563,300 3,234,801 2,822,710 2,770,921 2,616,898 2,539,082 2,084,629 1,755,563 1,724,651 1,594,941 1,461,999 1,247,977 1,160,063 1,029,211 980,903 895, 642 883,485 756,998 696,145 549,255 536,422 509,912 52 Investment Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Common Stock Total Currencv Qatar Rial Kuwait Dinar Morocco Dirham Egypt Pound Colombia Peso U.A.E. Emirati Dirham Canadian Dollar Saudi Arabia Saudi Riyal Vietnam Dong Jordan Dinar Panama Panamian Balboa Oman Rial Nigeria N'aira Kenya Shilling Croatia Kuna Romania N'ew Leu Australian Dollar Peru nuevo sol Mauritius Rupee British Pound Botswana Pula Ghana Cedi Bulgaria Lev Latvia Lat Fair Value 499,255 445,413 438,071 374,441 357,310 345,073 251,824 232,496 225,154 225,154 217,812 215,365 190,891 190,891 185,997 181,102 151,971 151, 734 137,050 97,893 34,263 19,579 9,789 2,447 $ 56,196,678 Item # 1 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Firefi_phters' Relief and Pension Plan At year-end, the Firefighters' Relief and Pension Plan cash and investment balances were as follows: Cash and cash equivalents: Cash and cash equivalents Total cash and cash equivalents Investments: U.S. agency - Federal Home Loan Mortgate Corp. (FHLMC) U.S. agency - Federal Agricultural Mortgage Corp. (FAMCA) U.S. agency - Federal Home Loan Bank (FHLB) Total investments Total managed cash and investments Interest Rate Risk — Firefighters' Relief and Pension Plan: Attachment number 1 \nPage 6 Carrying % of Weighted avg Moody's Amount Portfolio maturity�vears� Ratinq $ 2,719,676 42.5% 2,719,676 500,380 7.8% 1,171,012 18.3% 2,001,977 31.3% 3,673,369 $ 6,393,045 100.0% n/a n/a 1.88 Aaa 4.03 Aaa 8.19 Aaa As a means of limiting exposure to fair value losses arising from rising interest rates, the Firefighters' Relief and Pension Plan investment policy limits the target investment in fixed income investments to no more than 70% of the portfolio. There are no limits related to weighted average maturities due to the long-term nature of pension plan investing. Credit Risk — Firefighters' Relief and Pension Plan: The Firefighters' Relief and Pension Plan investment policy limits credit risk by restricting the fixed income investments to investment grade securities, per a nationally recognized ranking agency. Concentration of Credit Risk — Firefighters' Relief and Pension Plan: The Firefighters' Relief and Pension Plan investment policy limits concentration of credit risk by limiting the target allocation of the plan to domestic fixed income to 70% of the portfolio, with the remainder of the portfolio allocated to the City's well- diversified pooled cash portfolio (see above disclosure). There are no additional limitations on concentrations with individual issuers or agencies due to the relatively small portfolio of this closed pension plan. Foreign Currency Risk — Firefighters' Relief and Pension Plan: The Firefighters' Relief and Pension Plan investment policy does not permit investment in foreign fixed income or equity securities. Police Supplemental Pension Plan At year-end, the Police Supplemental Pension Plan cash and investment balances were as follows: 53 Item # 1 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Cash and cash equivalents: Cash in bank Cash in managed investment accounts Total cash and cash equivalents Investments: Treasuries U.S. agencies Domestic corporate bonds Domestic corporate bonds Domestic corporate bonds International equity securities Domestic stocks Total investments Total managed cash and investments Interest Rate Risk — Police Supplemental Pension Plan: Carrying % of Amount Portfolio $ 2,193 0.0% 595,239 4.4% 597,432 3,094,276 620, 096 217,960 556,720 158, 519 2,436,149 5,874,074 22.8% 4.6% 1.6% 4.1 % 1.2% 18.0% 43.3% 12,957,794 $ 13,555,226 100.0% Attachment number 1 \nPage 6� Weighted avg Moody's maturity_(vears� Ratinq n/a n/a n/a n/a 8.14 2.78 5.82 n/a n/a AAA AAA AA2/AA3 A1 /A2/A3 Baa1/NR n/a n/a As a means of limiting exposure to fair value losses arising from rising interest rates, the Police Supplemental Pension Plan investment policy limits the duration of the fixed income portfolio to 125% of the duration of the Barclays Government/Credit Bond Index subject to quarterly review. Additionally, no issues, Treasury, or Corporate Bonds may be purchased with more than 15 years to maturity. Credit Risk — Police Supplemental Pension Plan: The Police Supplemental Pension Plan investment policy limits credit risk by restricting equity investments to corporations that are listed on any one or more of the recognized national stock exchanges. Additionally, fixed income security investments are limited to "A" rated or higher corporate bonds, debentures, and preferred stocks; corporate debt provided the corporation meets the standards set forth in section 185.06(1)(b), Florida Statutes; and U.S. Government and agency obligations. Finally, the investment policy requires that investment managers dispose of any issue that has been downgraded below "A" as soon as is economically feasible. Concentration of Credit Risk — Police Supplemental Pension Plan: The Police Supplemental Pension Plan investment policy limits concentration of credit risk by limiting the stock position of the equity portfolio to no more than 3 percentage points in excess of the S&P 500. Additionally, any sector position of the equity portfolio may not exceed the S&P 500 sector weighting by more than 10 percentage points. Investments in fixed income securities of a single issuer with the exception of the U.S. Government and its agencies may not exceed 5 percent of the fixed income portfolio's value. Foreign Currency Risk — Police Supplemental Pension Plan: Risk of loss arises from changes in currency exchange rates. The Police Supplemental Pension Plan investment policy does not have a formal policy to limit foreign currency risk, other than a guideline of that no more than 25% of the portfolio may be invested in foreign assets. The Plan has no current exposure to foreign currency risk. Item # 1 54 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Firefi_phters Supplemental Pension Plan At year-end, the Firefighters Supplemental Pension Plan cash and investment balances were as follows: Cash and cash equivalents: Cash in managed investment accounts Total cash and cash equivalents Investments: Treasuries Municipal obligations Municipal obligations Domestic corporate bonds Domestic corporate bonds Domestic corporate bonds Domestic corporate bonds Domestic stocks Mortgage backed bonds Domestic equity mutual funds International equity mutual funds Total investments Total managed cash and investments Carrying % of Weighted avg Amount Portfolio maturity�vears� $ 555,972 555,972 290,669 185,094 56,559 88,315 243,320 1,621,675 888,631 1, 545, 572 1,261,597 2,177,819 1, 325,122 9,684,373 10,240,345 Interest Rate Risk — Firefighters Supplemental Pension Plan: 5.4% 2.8% 1.8% 0.6% 0.9% 2.4% 15.8% 8.7% 15.1% 12.3% 21.3% 12.9% 100.0% n/a 11.80 22.90 n/a n/a Attachment number 1 \nPage 6 Moody's Ratina n/a Aaa Aa3/A1/A2 N/R Aaa Aa2/Aa3 A1 /A2/A3 Baa1/Baa2 n/a n/a n/a n/a As a means of limiting exposure to fair value losses arising from rising interest rates, the Firefighters Supplemental Pension Plan investment policy limits the duration of the fixed income portfolio to 135% of the duration of the Barclay's Capital Aggregate Bond Index. Credit Risk — Firefighters Supplemental Pension Plan: The Firefighters Supplemental Pension Plan investment policy limits credit risk by restricting equity investments to securities that are fully and easily negotiable. Investments in corporations whose stock has been publicly traded for less than one year are limited to 15% of the equity portfolio. Investment in equity securities whose market capitalization is less than $2 billion dollars shall be limited to 25% of the total equity portfolio. The average credit quality of the bond portfolio shall be "A" or higher, and those securities rated below "BBB" shall not exceed 15% of the entire fixed income portfolio. Concentration of Credit Risk — Firefighters Supplemental Pension Plan: The Firefighters Supplemental Pension Plan investment policy limits concentration of credit risk by limiting the investment in common stock or capital stock of any one issuing company within an investment manager's portfolio to 5% of the portfolio. Similarly, no more than 5% of a fixed income investment manager's portfolio may be invested in the securities of any single corporate issuer per the plan investment policy. Finally, investments in collateralized mortgage obligations are limited to 25% of the investment manager's total portfolio. Item # 1 55 Attachment number 1 \nPage 6 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Foreign Currency Risk — Firefighters Supplemental Pension Plan: Risk of loss arises from changes in currency exchange rates. The Firefighters Supplemental Pension Plan requires that no more than 25°/o of the plan's total assets may be invested in foreign equity securities, commingled or mutual funds. Direct investment in foreign companies is limited to those traded on a national exchange and/or American Depository Receipts (ADR's). B. Receivables Receivables as of year-end for the City's governmental, proprietary, internal service, and fiduciary funds, including the applicable allowances for uncollectible accounts for the proprietary funds, are segregated on the fund financial statements. The Mortgages, Notes, and Other Loans amount of $15,436,736 reported on the Governmental Funds balance sheet includes $15,339,361 of long-term loans receivable that are not expected to be collected within the next fiscal year. Receivables as of year-end for the primary government's individual major funds, as well as non-major funds and internal service funds in the aggregate, are as follows: Receivables, net of applicable allowances for uncollectible accounts (amounts in thousands): Franchise Taxes Fees Interest Accounts Notes Other Total General fund $ 1,367 $ 910 $ 146 $ 604 $ - $ - $ 3,027 Special Development 59 - 154 - - - 213 Capitallmprovement - - 2 - - - 2 Non-major governmental funds - - 92 - 15,711 44 15,847 Internal service funds - - 214 - 9 223 Total governmental 1,426 910 608 604 15,711 53 19,312 Less: Allowance for uncollectible (241) - - - (274) - (515) Netgovernmentalreceivables $ 1,185 $ 910 $ 608 $ 604 $ 15,437 $ 53 $ 18,797 Water and Sewer Utility $ - $ - $ 425 $ 5,414 $ - $ 187 $ 6,026 Gas Utility - - 112 2,449 - 260 2,821 Solid Waste Utility - - 88 1,718 - - 1,806 Stormwater Utility - - 84 2,095 - - 2,179 Non-major enterprise funds - - 89 399 - - 488 Total business-type - - 798 12,075 - 447 13,320 Less: Allowance for uncollectible - - - (220) - - (220) Net business-type receivables $ - $ - $ 798 $ 11,855 $ - $ 447 $ 13,100 C. Capital assets Capital asset activity for the year ended September 30, 2011: Item # 1 3� City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Governmental Activities: Non-depreciable capital assets: Land Construction in progress Total non-depreciable capital assets Depreciable capital assets: Buildings Improvements other than buildings Machinery and equipment Infrastructure Total depreciable capital assets Less accumulated depreciation for: Buildings Improvements other than buildings Machinery and equipment Infrastructure Total accumulated depreciation Net depreciable capital assets Net governmental activities capital assets Business-type activities: Non-depreciable capital assets: Land Construction in progress Total non-depreciable capital assets Depreciable capital assets: Buildings Improvements other than buildings Machinery and equipment Total depreciable capital assets Less accumulated depreciation for: Buildings Improvements other than buildings Machinery and equipment Total accumulated depreciation Net depreciable capital assets Net business-type activities capital assets Beginning Transfers / Balance Increases Decreases Reclassifications Attachment number 1 \nPage 6 Ending Balance $ 79,591,523 $ 3,170,014 $ 3,648,035 $ - $ 79,113,502 10,470,092 6,024,401 11,305,226 - 5,189,267 90,061,615 9,194,415 14,953,261 - 84,302,769 119,205,052 10,540,941 485,171 - 129,260,822 26,408,745 2,688,476 - - 29,097,221 73,300,978 7,066,159 3,666,525 (17,961) 76,682,651 136,512,849 2,890,913 - - 139,403,762 355,427,624 23,186,489 4,151,696 (17,961) 374,444,456 (35,767,798) (4,124,477) (357,242) - (39,535,033) (11,379,670) (1,103,038) - - (12,482,708) (54,628,086) (6,480,867) (2,661,019) 3,592 (58,444,342) (66,618,651) (4,505,998) - - (71,124,649) (168,394,205) (16,214,380) (3,018,261) 3,592 (181,586,732) 187,033,419 6,972,109 1,133,435 (14,369) 192,857,724 $ 277,095,034 $ 16,166,524 $ 16,086,696 $ (14,369) $ 277,160,493 Beginning Balance Increases $ 31,280,681 $ - 22,271,022 9,741,365 53,551,703 9,741,365 Transfers / Decreases Reclassifications $ - $ 19,811,261 19,811,261 Ending Balance $ 31,280,681 12,201,126 43,481,807 25,240,694 528,478 - - 25,769,172 498,691,733 29,473,600 - - 528,165,333 9,640,497 601,962 605,543 17,961 9,654,877 533,572,924 30,604,040 605,543 17,961 563,589,382 (12,592,154) (910,534) - - (13,502,688) (191,267,606) (16,041,422) - - (207,309,028) (6,975,246) (593,849) (536,813) (3,592) (7,035,874) (210,835,006) (17,545,805) (536,813) (3,592) (227,847,590) 322,737,918 13,058,235 68,730 14,369 335,741,792 $ 376,289,621 $ 22,799,600 $ 19,879,991 $ 14,369 $ 379,223,599 57 Item # 1 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Depreciation expense was charged to functions / programs of the primary government as follows: Govemrr�ntal activities: General govemrrent Public safety Physical environment Transportation, including depreciation of general infrastructure assets Econorric environrr�nt Q.ilture and recreation Capital assets held by the govemrrental intemal service funds are charged to the various functions based on their usage of the assets Total depreciation e�ense - govemrrental activities Business-type activities: Water and sewer utility Gas utility Solid waste utility Stom�vater utiliry Recycling utility Marine operations Aviation operations Parking system operations Harborview Center operations Gearwater Harbor Marina operations Total depreciation e�ense - business-type activities Construction commitments At September 30, 2011, material outstanding construction commitments were as follows: Project Facilities Upgrades & Improvements Reclaimed Water Distribution System Reverse Osmosis Plant Expansion - Reservoir #2 Replacement of Belt Filter Presses Water Pollution Control Repair & Replacement Storm Pipe System Improvements SanitarySewer Renewal & Replacement Downtown Streetscape Phase II Wastewater Treatment Plant Bypass & Northeast Pump Odor Control Reverse Osmosis Plant Expansion - Reservoir #1 Alligator Creek Watershed Project North Greenwood Recreation Center Renovations Traffic Calming Total Construction Commitments Attachment number 1 \nPage 7� 757,736 1,621,054 158,705 4,463,067 22,956 4,105,860 5,085,002 $ 16,214,380 $ 11,721,789 1,579,548 268,250 2,465,160 145,174 106,285 202,991 228,535 506,743 321,330 $ 17,545,805 Fund Water & Sewer Utilityenterprise fund Water & Sewer Utilityenterprise fund Water & Sewer Utilityenterprise fund Water & Sewer Utiliryenterprise fund Water & Sewer Utiliryenterprise fund Stormwater Utilityenterprise fund Water & Sewer Utilityenterprise fund Water & Sewer Utilityenterprise fund Water & Sewer Utilityenterprise fund Water & Sewer Utility enterprise fund Water & Sewer Utilityenterprise fund Stormwater Utilityenterprise fund Capital Improvementcapital projects fund Capital Improvementcapital projects fund � Construction Commitments Outstanding $ 6,318,236 $ 6,121,924 $ 3,267,269 $ 3,068,096 $ 2,745,312 $ 1,811,963 $ 1,807,188 $ 1,758,477 $ 1,169,397 $ 1,162,140 $ 757,686 $ 589,591 $ 552,765 $ 513,506 $ 31,643,550 Item # 1 Attachment number 1 \nPage 7 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 D. Interfund receivables, payables, and transfers 1. InterFund balances As discussed in Note III-A, individual fund deficits in the consolidated cash pool, if any, have been reclassified as of September 30, 2011, as interfund loans from the Capital Improvement Fund, which was selected by management for this purpose. This reclassification results in a corresponding reduction in the cash equity in the Capital Improvement Fund, offset by an increase in interfund receivables. As of September 30, 2011, the Clearwater Harbor Marina enterprise fund reported a cash pool deficit in the amount of $387,388 and the Notes and Mortgages debt service fund reported a cash pool deficit of $89,830. The amounts of the reclassified cash pool deficits, if any, as well as the current portion of other individual fund interfund payable and receivable balances are classified as Due from/to Other Funds. The long-term portions of other interfund balances are classified as Advances to/from Other Funds. Fund Special Revenue Funds: Special Programs Community Redevelopment Agency Debt Service Fund: Notes and Mortgages Capital Project Fund: Capital Improvement Enterprise Fund: Airpark Operations Clearwater Harbor Marina Internal Service Funds: Administrative Services Central Insurance Due from Due to Adances to Advances from Other Funds Other Funds Other Funds Other Funds $ - $ 477,218 - $ 974,267 $ - 89,830 20,271 387,388 91,654 - 2,874,267 - 81, 086 - 458,267 111,925 - 2,439,353 $ 589,143 $ 589,143 $ 3,413,620 $ 3,413,620 Descriptions of interfund loans as of September 30, 2011: Three interfund loans from the Special Programs special revenue fund to the Community Redevelopment Agency special revenue fund in the amounts of $350,000, $298,827 and $325,440, respectively, related to the purchase, remediation, and development of downtown parcels. These loans are interest-free and are to be repaid upon sale of the developed parcels. Because the first principal payment is not due within one year, these loans, which total $974,267, are classified as an advance. An internal loan from the Central Insurance Fund to the Community Redevelopment Agency special revenue fund in the amount of $1,900,000 to underwrite the acquisition, closing costs and site demolition costs related to the acquisition of the Economy Inn and surrounding properties in the East Gateway area for redevelopment purposes. The loan provides for interest-only payments at the cash-pool rate through fiscal year 2012, and level debt service (principal and interest) from fiscal year 2013 through fiscal year 2018. Because the first principal payment is not due within one year, the entire loan is classified as an advance. Item # 1 � Attachment number 1 \nPage 7 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 An internal five-year loan from the Central Insurance Fund to the Airpark Operations enterprise fund, for the construction of a new multi plane hangar, in the amount of $101,357. The loan provides for five annual payments of $20,271 plus interest at the cash-pool rate, due on September 30 of each year. The loan commenced April 2, 2008, with the first principal payment due September 30th of the year that construction is completed, currently estimated to be September 30, 2012. The current portion of this loan ($20,271) is classified as due to/from other funds, while the long-term portion ($81,086) is classified as an advance. An internal ten-year loan from the Central Insurance Fund to the Administrative Services Fund for purchase and installation of fiber optic cable and termination equipment. The loan provides for ten annual payments of $91,654 plus interest at the cash-pool rate, due on September 30 of each year. The loan commenced September 30, 2003 with the first annual principal payment due September 30, 2008, the year that the infrastructure project was completed. Current portion of this loan ($91,654) is classified as due to/from other funds, while the long-term portion ($458,267) is classified as an advance. 2. Interfund transfers Interfund transfers for the year ended September 30, 2011, consisted of the following: Transfers to General Fund from: Capital Improvements Fund Water & Sewer Utility Enterprise Fund Gas Utility Enterprise Fund Solid Waste Utility Enterprise Fund Stormwater Utility Enterprise Fund Nonmajor governmental funds Nonmajor enterprise funds Internal service funds Total $ 122,531 2, 960, 850 1, 700, 000 968, 370 738, 870 1,614,145 348, 070 543,457 Transfers to Capital Improvements Fund from: General Fund 5,082,286 Special Development Fund 13,431,547 Capital Improvements Fund 45,859 Nonmajor governmental funds 1,824,927 Total 20,384,619 Transfers to Nonmajor governmental funds from: General Fund 1,980,459 Nonmajor governmental funds 3,546,710 Total 5,527,169 Transfers to Water & Sewer Utility Enterprise Fund from: Nonmajor governmental tunds 156,633 Internal service funds 4,789 Total Transfers to Stormwater Utility Enterprise Fund from: Nonmajor governmental funds Transfers to Gas Utility Enterprise Fund from: Nonmajor governmental funds Internal service funds Total Transfers to Solid Waste Utility Enterprise Fund from: Nonmajor governmental funds Internal service funds Total .� 2,489 150 4, 790 4, 940 10,006 4, 789 14, 795 Item # 1 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Transfers to Nonmajor enterprise funds from: Gas Utility Enterprise Fund 95,149 Nonmajor governmental funds 514,598 Total 609, 747 Transfers to Internal service funds from: General Fund Water & Sewer Utility Enterprise Fund Capital Improvements Fund Stormwater Utility Enterprise Fund Nonmajor governmental funds Nonmajor enterprise funds Total Total interfund transfers 83, 760 159,418 1,748,460 289, 687 39, 830 500, 000 2,821,155 $ 38,522,629 Attachment number 1 \nPage 7 Transfers are primarily used to 1) transfer revenues that have been collected in the required fund per state law to the funds and activities that state law allows for expenditures; 2) transfer of "payment in lieu of taxes" contributions from the utility funds to the General Fund; 3) transfer funding from governmental funds to debt service and capital improvements funds; and 4) transfer matching funds from the General Fund to various grant programs. Other non-routine interfund transfers occurring during the current fiscal year included a transfer of $414 thousand from the General Fund to the Community Redevelopment Agency (CRA) Special Revenue Fund, representing proceeds from the sale of tax credits contributed to the CRA. Also, a total of $500 thousand was transferred from the CRA Special Revenue Fund to the CRA Capital Projects Fund, reflecting a contribution towards the Clearwater Harbor Marina boat slips construction project. A related $500 thousand transfer from the CRA Capital Projects Fund to the Clearwater Harbor Marina Enterprise Fund represented a contribution to the enterprise fund. Consequently the Clearwater Harbor Marina Fund transferred $500 thousand to the Central Insurance Internal Service Fund to reimburse it for prior years contributions to the boat slips construction project. Additionally, a total of $377 thousand was transferred from the Special Programs Special Revenue Fund to the General Fund, reflecting the return of residual prior years funding for various special programs that were closed during the current year. A total of $1.8 million was transferred from the CRA Capital Projects Fund to the Capital Improvements Fund representing a contribution to the Downtown Streetscapes Phase II construction project. Additionally, a total of $441 thousand was transferred by the Special Programs Fund to various funds, representing the return of unused residual funding for prior years retirement incentives. Current year transfers to the Garage Internal Service Fund for the purchase of fleet vehicles included $2.0 million from the Capital Improvements Fund, $159 thousand from the Water and Sewer Utility Fund, and $290 thousand from the Stormwater Utility Fund. Finally, during fiscal 2011 the Administrative Services Fund contributed a total of $14,369 in capital assets to several enterprise funds. E. Leases The City purchases various equipment for governmental and business-type activities under lease purchase financing agreements. The equipment is purchased with cash and subsequently provided as collateral via a"lease purchase" financing arrangement, typically for a five-year term. Obligations under these lease purchase agreements are recorded at the present value of their future minimum lease payments as of date of inception. Purchase of the assets is recorded as a cash oufiFlow and the subsequent receipt of the financing proceeds is recorded as "proceeds from issuance of debt" for Statement of Cash Flows reporting. Capitalized equipment subject to lease purchase financing as of September 30, 2011: Equipment Less: Accumulated Depreciation Total 61 Governmental Business-type Activities Activities $ 17,047,127 $ 1,254,364 (7,126,786) (360,096) $ 9,920,341 $ 894,268 Item # 1 Attachment number 1 \nPage 7� City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 The future minimum lease payments under capital lease purchase agreements are as follows as of September 30, 2011: Year Ending Sept. 30 2012 2013 2014 2015 2016 2017 Deduction of the amount of imputed interest necessary to reduce net minimum lease payments to present value Governmental Activities 3,104,964 2,391,936 1, 732, 987 1, 227, 796 677,126 Business-type Activities 257,669 228,943 183,584 125,542 57,076 87,241 2,662 9,222,050 855,476 (499,840) (47,597) $ 8,722,210 $ 807,879 The City also leases personal computers under a three-year operating lease that is cancelable on an annual basis. Lease payments for fiscal year ended September 30, 2011, totaled $367,796. F. Long-term debt 1. Revenue Bonds $14,810,000 in Spring Training Facility Revenue Bonds, Series 2002; issued to provide a portion of the costs of the acquisition, construction, rehabilitation and equipping of a spring training facility to the used by the Philadelphia Phillies major league baseball team; serial bonds due in annual installments of $570,000 due March 1, 2012, to $295,000 due March 1, 2022, with maximum principal of $845,000 due March 1, 2021; interest at 3.50% to 5.375%; 5.375% term bonds in the amount of $1,730,000 due March 1, 2027; and 5.375% term bonds in the amount of $1,750,000 due March 1, 2031. Total revenue bonds for governmental activities $58,680,000 Water and Sewer Revenue Bonds, Series 2002; issued to pay for costs of expansions to the City's water and sewer system; serial bonds in the amount of $1,305,000 due December 1, 2011, interest at 4.00%. $8,410,000 Water and Sewer Revenue Refunding Bonds, Series 2003; issued to advance refund the City's Water and Sewer Refunding Revenue Bonds, Series 1993; serial bonds due in annual installments of $190,000 at December 1, 2011, to $260,000 due December 1, 2018, interest at 3.10% to 4.00%. $10,660,000 10,660,000 1,305,000 1,825,000 $26,430,000 Water and Sewer Revenue Bonds, Series 2006; issued to pay the costs of the design, acquisition, construction, or reconstruction of capital improvements to the City's water and sewer system; serial bonds due in annual installments of $1,410,000 at December 1, 2019, to $2,070,000 due December 1, 2028, interest at 4.25% to 4.50%; 4.50% term bonds in the amount of $4,410,000 due December 1, 2030; and 4.625% term bonds in the amount of $4,795,000 due December 1, 2032. 26,430,000 $67,715,000 Water and Sewer Revenue Bonds, Series 2009A; issued to pay the costs of the design, acquisition, construction, or reconstruction of capital improvements to the 62 Item # 1 Attachment number 1 \nPage 7 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 City's water and sewer system; serial bonds due in annual installments of $420,000 at December 1, 2019, to $495,000 due December 1, 2023; interest at 4.375% to 5.00%; 5.125% term bonds in the amount of $5,655,000 due December 1, 2032; and 5.25% term bonds in the amount of $59,780,000 due December 1, 2039. 67,715,000 $41,700,000 Water and Sewer Revenue Refunding Bonds, Series 2009B; issued to advance refund the City's Water and Sewer Refunding Revenue Bonds, Series 1998; serial bonds due in annual installments of $3,695,000 at December 1, 2011 to $5,150,000 due December 1, 2018; interest at 5.00%. 34,975,000 $47,025,000 Water and Sewer Revenue Refunding Bonds, Series 2011; issued to partially refund the City's Water and Sewer Revenue Bonds, Series 2002; serial bonds due in annual installments of $1,370,000 at December 1, 2012, to $3,175,000 due December 1, 2030, interest at 2.00% to 5.00%; 4.50% term bonds in the amount of $6,850,000 due December 1, 2032. 47,025,000 $8,890,000 Gas System Revenue Refunding Bonds, Series 2004; issued to advance refund the City's Gas System Revenue Bonds, Series 1996A; serial bonds due in annual installments of $185,000 due September 1, 2012, to $1,575,000 due September 1, 2026, interest at 3.00% to 4.375%. 7,660,000 $7,195,000 Gas System Revenue Refunding Bonds, Series 2005; issued to partially advance refund the City's Gas System Revenue Refunding Bonds, Series 1997A and Series 1997B; serial bonds due in annual installments of $240,000 due September 1, 2012, to $325,000 due September 1, 2025, interest at 3.50% to 4.375%; and 4.375% term bonds in the amount of $2,400,000 maturing on September 1, 2027. 6,020,000 $3,700,000 Gas System Revenue Refunding Bonds, Series 2007; issued together with other funds of the City to refund and redeem on December 1, 2007, all of the outstanding principal amount of the City's Gas System Revenue Bonds, Series 1998; serial bonds due in equal annual installments of $370,000 due September 1, 2012, through September 1, 2017; interest at 4.00%. 2,220,000 $24,685,000 Stormwater Revenue Bonds, Series 2002; issued to finance the costs of capital improvements to the City's stormwater management system; serial bonds due in annual installments of $555,000 due November 1, 2011, to $965,000 due November 1, 2023; interest at 3.50% to 4.75%; and 4.75% term bonds in the amounts of $3,205,000, $5,115,000 and $2,985,000, due November 1, 2026, 2030 and 2032, respectively. 20,850,000 $14,430,000 Stormwater System Revenue Bonds, Series 2004; issued to finance the costs of capital improvements to the City's stormwater management system; serial bonds due in annual installments of $370,000, due November 1, 2011, to $865,000 due November 1, 2032, interest at 3.00% to 4.75%. 12,405,000 $6,925,000 Stormwater System Revenue Refunding Bonds, Series 2005; issued to partially advance refund the Stormwater Revenue Bonds, Series 1999; serial bonds due in annual installments of $230,000 due November 1, 2011, to $470,000 due November 1, 2029, interest at 3.125% to 4.50%. 6,325,000 Total revenue bonds for business-type activities Total revenue bonds 63 234,755,000 $245,��1�„{�0� � Attachment number 1 \nPage 7� City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 2. Restrictive covenants and collateral requirements The Spring Training Facility Revenue Bonds are special, limited obligations of the City, payable solely from and secured by a lien upon and pledge of the (i) payments received by the City from the State of Florida pursuant to Section 212.20, Florida Statutes (State payments); and (ii) payments received by the City from Pinellas County, Florida pursuant to the Interlocal Agreement dated December 1, 2000 (County payments). The pledge of the State Payments and County Payments does not constitute a lien upon any property of the City. Furthermore, neither the City, Pinellas County, the State of Florida, nor any political subdivision thereof has pledged its faith or credit or taxing power to the payment of the bonds. The Water and Sewer Revenue Bonds, Series 2002, Series 2006, and Series 2009A; and the Water and Sewer Revenue Refunding Bonds, Series 2003, Series 2009B, and Series 2011; are limited obligations of the City payable solely from and secured by a lien upon and pledge of the net revenues of the City's water and sewer system (System). The pledge of the System's net revenues does not constitute a lien upon any property of the City. The covenants of the ordinances authorizing the bonds include, among other things, an obligation of the City to fix and maintain such rates, and collect such fees, rentals and other charges for the services and facilities of the System and revise the same from time to time whenever necessary, which will provide gross revenues in each fiscal year sufficient to pay the cost of operation and maintenance of the system; one hundred fifteen percent (115%) of the bond service requirement becoming due in such fiscal year on the outstanding bonds; plus one hundred percent (100%) of all reserve and other payments required to be made pursuant to the ordinances authorizing the bonds. The City further covenants that such rates, fees, rentals and other charges will not be reduced so as to render them insufficient to provide gross revenues for such purpose. The Gas System Revenue Refunding Bonds, Series 2004, Series 2005, and Series 2007 are limited obligations of the City payable solely from and secured by a lien upon and pledge of the net revenues of the City's gas system (System). The pledge of the System's net revenues does not constitute a lien upon any property of the City. The covenants of the ordinances authorizing the bonds include, among other things, an obligation of the City 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 product, services and facilities of the System which will always provide revenues in each year sufficient to pay, and out of such funds pay, 100% of the cost of operations and maintenance of the system in such year and all reserve and other payments provided for in the ordinances authorizing the bonds, along with one hundred twenty five percent (125%) of the bond service requirement due in such year on all outstanding bonds. The Stormwater System Revenue Bonds, Series 2002 and Series 2004; and Stormwater Revenue Refunding Bonds, Series 2005 are limited obligations of the City payable solely from and secured by a lien upon and pledge of the net revenues of the City's stormwater management system (System). The pledge of the System's net revenues does not constitute a lien upon any property of the City. The covenants of the ordinances authorizing the bonds include, among other things, an obligation of the City to fix, revise from time to time whenever necessary, and maintain and collect always such fees, rates, rentals and other charges for use of the products, services, and facilities 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 fiscal year on the outstanding bonds. The City further covenants that such rates, fees, rentals and other charges will not be reduced so as to render them insufficient to provide revenues for such purpose. Additionally, the covenants of each of the above issues includes a"Reserve Requirement" equal to the lesser of: the Maximum Bond Service Requirement for any given year; 125% of the Average Annual Bond Service Requirement; or the largest amount as shall not adversely affect the exclusion of interest on the Bonds from gross income for Federal income tax purposes. A Reserve Fund has been funded for the Series 2002 and Series 2004 Bonds while the Series 2005 Reserve Requirements has been satisfied with Reserve Fund Surety Bonds. Item # 1 64 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Annual debt service requirements to maturity for revenue bonds are as follows: Year Ending Governmental Activities Business-type Activities September 30 Principal Interest Principal Interest 2012 $ 570,000 $ 505,986 $ 7,140,000 $ 10,369,045 2013 590,000 485,096 7,490,000 10,625,990 2014 610,000 462,744 7,815,000 10,319,751 2015 635,000 438,606 8,095,000 9,990,268 2016 660,000 412,376 8,495,000 9,629,165 2017-2021 3,820,000 1,506,116 39,110,000 42,257,145 2022-2026 2027-2031 2032-2036 2037-2041 2042-2046 Totals 3. Pledged revenues 1,640,000 802,567 2,135,000 298,447 37,580,000 34,161,754 41,450,000 24,691,415 40, 760, 000 14, 763, 856 36,820,000 3,992,624 $ 10,660,000 $ 4,911,938 $ 234,755,000 $170,801,013 Attachment number 1 \nPage 7 State of Florida and Pinellas Countv Payments Pledqed: The City has pledged future revenues derived from payments received from the State of Florida pursuant to Section 212.20, Florida Statutes, and payments from Pinellas County, Florida pursuant to an Interlocal Agreement, together with any investment income earned on the revenues, to repay $14.8 million in Spring Training Facility Revenue bonds issued in September 2002. Proceeds from the bonds provided financing for a portion of the costs of the acquisition, construction, rehabilitation, and equipping of a spring training facility to be used by the Philadelphia Phillies major league baseball team. The bonds are payable solely from the State of Florida and Pinellas County, Florida payments and are payable through March 2031. Annual principal and interest payments on the bonds are expected to require less than 100 percent of net revenues. The total principal and interest remaining to be paid on the bonds is $15,571,938. Principal and interest paid for the current year and total revenue received were $1,075,586 and $1,098,523, respectively. Water and Sewer Utility Net Revenues Pledqed: The City has pledged future net revenues of the City of Clearwater, Florida, Water & Sewer Utility defined as all income or earnings, including any income from the investment of funds, derived by the City from the operation of the utility after deduction of current expenses 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 to repay: $8.4 million in Water & Sewer Revenue Refunding bonds issued in October 2003. Proceeds from the bonds provided financing to refund and redeem the City's then outstanding Water and Sewer Revenue Refunding Bonds, Series 1993. The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2018. $26.4 million in Water & Sewer Revenue bonds issued in August 2006. Proceeds from the bonds provided financing for the costs of design, acquisition, construction or reconstruction of capital improvements to the City's water and sewer system. The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2032. $67.7 million in Water & Sewer Revenue bonds issued in May 2009. Proceeds from the bonds provided financing for the costs of design, acquisition, construction or reconstruction of capital improvements to the City's water and sewer system. The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2039. Item # 1 65 Attachment number 1 \nPage 7 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 $41.7 million in Water and Sewer Revenue Refunding bonds issued in May 2009. Proceeds from the bonds provided financing to refund and redeem the City's then outstanding Water and Sewer Revenue Refunding Bonds, Series 1998. The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2018. $47.0 million in Water and Sewer Revenue Refunding bonds issued in September 2011. Proceeds from the bonds provided financing to refund and redeem the outstanding principal maturing after December 1, 2011 of the City's Water and Sewer Revenue Bonds, Series 2002. Annual principal and interest payments on the bonds are expected to require less than 85 percent of net revenues. The total principal and interest remaining to be paid on the bonds is $320,983,829. Principal and interest paid for the current year and total net revenue were $14,562,434 and $21,168,627, respectively. An additional $48,545,000 of principal was paid to defease the 2002 bonds effective September 7, 2011. Stormwater Utility Net Revenues Pledqed: The City has pledged future net revenues of the City of Clearwater, Florida, Stormwater Utility defined as all income or earnings, including any income from the investment of funds, derived by the City from the operation of the utility after deduction of current expenses 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 to repay: $24.7 million in Stormwater Revenue bonds issued in September 2002. Proceeds from the bonds provided financing to make capital improvements to the City's stormwater management system. The bonds are payable solely from the Stormwater Utility net revenues and are payable through November 2032. $14.4 million in Stormwater Revenue bonds issued in September 2004. Proceeds from the bonds provided financing to make capital improvements to the City's stormwater management system. The bonds are payable solely from the Stormwater Utility net revenues and are payable through November 2032. $6.9 million in Stormwater Revenue Refunding bonds issued in May 2005. Proceeds from the bonds provided sufficient funds to be available on November 1, 2008 to pay and redeem the City's outstanding Stormwater Revenue Bonds, Series 1999. The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through November 2029. Annual principal and interest payments on the bonds are expected to require less than 60 percent of net revenues. The total principal and interest remaining to be paid on the bonds is $62,128,735. Principal and interest paid for the current year and total net revenue were $2,868,641 and $7,739,271, respectively. Gas Svstem Utilitv Net Revenues Pledqed: The City has pledged future net revenues of the City of Clearwater, Florida, Gas System Utility defined as all income or earnings, including any income from the investment of funds, derived by the City from the operation of the utility after deduction of current expenses 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 to repay: $8.9 million in Gas System Revenue Refunding bonds issued in February 2004. Proceeds from the bonds provided financing to advance refund the outstanding principal of the City of Clearwater Gas System Revenue Bonds, Series 1996A. The bonds are payable solely from the Gas System Utility net revenues and are payable through September 2026. $7.2 million in Gas System Revenue Refunding bonds issued in June 2005. Proceeds from the bonds provided financing to advance refund the outstanding principal of the City of Clearwater Gas System Revenue Bonds, Series 1997A. The bonds are payable solely from the Gas System Utility net revenues and are payable through September 2027. $3.7 million in Gas System Revenue Refunding bonds issued in October 2007. Proceeds from the bonds provided financing to refund the outstanding principal of the City of Clearwater Gas System Revenue Bonds, Series 1998. The bonds are payable solely from the Gas System Utility net revenues and are payable through September 2017. Item # 1 .. Attachment number 1 \nPage 7 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Annual principal and interest payments on the bonds are expected to require less than 60 percent of net revenues. The total principal and interest remaining to be paid on the bonds is $22,443,449. Principal and interest paid for the current year and total net revenue were $1,473,051 and $11,086,850, respectively. 4. Advance refunding of bonds On September 7, 2011, the City issued $47,025,000 at par value of Water and Sewer Revenue Refunding Bonds, Series 2011, for the purpose of redeeming on December 1, 2011, $48,545,000 of outstanding Water and Sewer System Revenue Bonds, Series 2002, maturing after December 1, 2011. This refunding transaction resulted in an aggregate debt service reduction of $4,516,730 and a net present value savings of $2,859,151. The following schedule reflects the outstanding principal on refunded bonds as of September 30: Business-type Activities: Water and Sewer System Revenue Bonds, Series 2002 Total Business-type Activities Total 5. Changes in long-term liabilities Governmental activities: Revenue bonds payable Add (subtract) deferred amounts: For issuance premiums (discounts) On refunding Net revenue bonds payable Lease purchase contracts (a) Compensated absences (b) Other postemployment benefits (c) Claims payable (d) Governmental activity Long-term liabilities Business-type activities: Revenue bonds payable Less deferred amounts: For issuance premiums (discounts) On refunding Net revenue bonds payable Lease purchase contracts Compensated absences (b) Other postemployment benefits Unearned revenue Business-type activity Long-term liabilities Beginning Balance $ 19,750,000 $ 237,685 (214,185) 19,773,500 8, 278,966 7,382,570 3,836,620 8,095,000 $ 48,545,000 48, 545, 000 $ 48,545,000 Ending Due Within Additions Reductions Balance One Year - $ (9,090,000) $ 10,660,000 $ 570,000 - (1,568) 236,117 - - 214,185 - - - (8,877,383) 10,896,117 570,000 3,773,319 (3,330,075) 8,722,210 2,887,872 4,004,883 (4,104,219) 7,283,234 4,674,198 1,766,241 (856,418) 4,746,443 - 3,613,433 (3,020,433) 8,688,000 2,219,200 $ 47,366,656 $ 13,157,876 $ 243,125,000 $ 47,025,000 $ (20,188,528) $ 40,336,004 $ (55,395,000) $ 234,755,000 $ 10,351,270 $ 7,140,000 496,947 2,890,861 (230,272) 3,157,536 - (4,213,128) (1,615,096) 725,066 (5,103,158) - 239,408,819 48,300,765 (54,900,206) 232,809,378 7,140,000 629,960 433,972 (256,053) 807,879 236,848 1,799,009 1,016,919 (1,014,905) 1,801,023 1,155,852 1,418,880 848,789 (411,562) 1,856,107 - 187,113 - - 187,113 - $ 243,443,781 $ 50,600,445 $ (56,582,726) $ 237,461,500 $ 8,532,700 Item # 1 67 Attachment number 1 \nPage 8� City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 (a) Governmental activities lease purchase contract additions of $3,773,319 includes $2,707,070 attributable to internal service funds and $1,066,249 attributable to governmental funds. The lease purchase contracts reduction of $3,330,075 includes $2,910,022 for internal service funds and $420,053 for governmental funds. (b) Compensated absences are paid by the fund where salaries are incurred, which is primarily the General Fund for governmental activities. (c) Other postemployment benefits costs are allocated to and paid by funds based on their percentage of full time equivalent employees. (d) The Central Insurance Fund, an internal service fund, accrues for estimated claims and pays claims for all departments. G. Restricted assets 1. Water and Sewer Utility Fund Assets in the Water and Sewer Utility Fund restricted for construction include: Water Improvement charges, the use of which is restricted by the authorizing ordinance to the construction of additions to the water system; assets remaining at September 30, 2011, are: Cash and Investments Sewer Improvement charges, the use of which is restricted by the authorizing ordinance to the construction of additions to the sewer system; assets remaining at September 30, 2011, are: Cash and Investments Assets of the Water and Sewer Utility Fund restricted under the provisions of the ordinances authorizing the issuance of Water and Sewer Revenue Bonds consisted of the following at September 30, 2011: Water and Sewer Revenue Bonds Debt Service: Cash and Investments Water and Sewer Revenue Bonds Renewals and Re Cash and Investments Water and Sewer Revenue Bonds Construction: Cash and Investments Assets of the Water and Sewer Utility Fund consisting of amounts Due from Other Governments for advances to the Florida Department of Transportation for utility relocations related to improvements to State Road 55 (U. S. Highway 19) Assets of the Water and Sewer Utility Fund representing Customers' Deposits and therefore restricted, consisting entirely of Cash and Investments at September 30, 2011 Total restricted assets — Water and Sewer Utility Fund .: $ 1,572,981 5,689,609 20,482,532 16,320,991 15,378,286 350,942 2,633,444 $62,428 785 Item # 1 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 2. Gas Utility Fund Attachment number 1 \nPage 8 Assets in the Gas Utility Fund restricted under the provisions of the ordinance authorizing the issuance of revenue bonds consisted of the following at September 30, 2011: Gas Svstem Revenue Bonds Debt Service: Cash and Investments Renewals and Replacements: Cash and Investments Assets of the Gas Utility Fund representing Customers' Deposits at September 30, 2011: Cash and Investments Total restricted assets — Gas Utility Fund 3. Solid Waste Utility Fund $ 120,358 ��� ��� 2,478,266 $ 2 898 624 Restricted assets in the Solid Waste Utility Fund designated for construction represent customer deposits in the amount of $998,850 at September 30, 2011, and consisted entirely of Cash and Investments. 4. Stormwater Utility Fund Assets restricted under the provisions of the ordinances for the issuance of revenue bonds consisted of the following at September 30, 2011: Stormwater Revenue Bonds — Series 2002 Debt Service: Cash and Investments Stormwater Revenue Bonds — Series 2004 Debt Service: Cash and Investments Stormwater Refunding Revenue Bonds — Series 2005 Debt Service: Cash and Investments Fees received in lieu of on-site drainage retention for new or improved businesses within the Prospect Lake Drainage District, restricted for stormwater improvements, at September 30, 2011: Cash and Investments $ 2,468,610 1,464,840 317,521 314,981 Total restricted assets — Stormwater Utility Fund $ 4,565,952 5. Parking System Fund Assets in the Parking System restricted under the provisions of a development agreement between L.O.M., Inc. and the City of Clearwater as of September 30, 2011: Equity in Pooled Cash and Investments $ 9,300,000 Total restricted assets — Parking System Fund .• $ 9,300,000 Item # 1 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 H. Fund Balances Classification Non Spendable: Inventories Prepaid iterrs Restricted for: General govemment Public safety Physical environment Transportation Econorric environrrent Hurr�n services Qalture and recreation Debt service reserve Comritted to: General govemment Public safety Physical environment Transportation Econorric envimnment Hurran services GLlture and recreation Assigned to: General govemment Public safety Physical environment Transportation Econorric environment Hurrnn services Q.dture and recreation Infrastructure capital projects U nassigned Total Fund Balances Note IV - Other Information A. Risk management General Fund $ 24,220 $ � � 144,803 506,724 6,751 57,111 140,161 Special Developrrent Fund - $ 6,253 1,184, 303 19,324 186,450 99,176 4,219,437 Capital I rrpmverrent Fund - $ 2,524,404 525,000 17,310,951 8,788,113 2,980,830 611,047 233,813 5,664,929 4,470,992 (43,432) 43,432 Attachment number 1 \nPage 8 Non-Major Govemrr�ntal Funds 89,830 745,072 2,357,747 1,012,553 95,711 26,356,588 360, 945 162,218 541,730 331,574 2,339,016 47,771 1,391 263,573 360,998 1,484,184 367,809 3,321 582,755 131,618 154,668 23,081,286 (113,470) (1,807,981) 23,961,056 5,714,943 42,996,609 35,983,091 The City is self-insured within certain parameters for losses arising from claims for general liability, auto liability, police professional liability, public official's liability, property damage, and workers' compensation. Insurance coverage has been maintained by the City to pay for or indemnify the City for losses in excess of certain specific retentions and up to specified maximum limits in the case of claims for liability, property damage, and workers' compensation. The liability excess coverage is $7,000,000 per occurrence ($14,000,000 aggregate) with self-insured retention of $500,000. There is workers' compensation coverage to the statutory limit, with self-insured retention of $500,000. The property damage excess coverage is $45,000,000 with a$100,000 ($500,000 or 5%, whichever is greater for named storm) self-insured retention. Settled claims have not exceeded excess coverage in any of the past three years. The transactions relating to the self-insurance program are accounted for in the Central Insurance Fund, an internal service fund. The billings by the Central Insurance Fund to the various operating funds (the interfund premiums) are based on actuarial estimates of the amounts needed to pay prior and current year claims. The claims liability reported at September 30, 2011, is based on the requirements of Governmental Accounting Standards Board Statement No. 10 which requires item # 1 70 that a liability for claims be probable that a liability has reasonably estimated. Attachment number 1 \nPage 8 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 reported if information prior to the issuance of the financial statements indicates that it is been incurred at the date of the financial statements and the amount of the loss can be Changes in the claims liability amounts in fiscal years 2010 and 2011 were: Balance at September 30, 2009 Current year claims and changes in estimates Claim payments Balance at September 30, 2010 Current year claims and changes in estimates Claim payments Balance at September 30, 2011 B. Statements of cash flows Self Insurance $ 7,989,000 2,060,194 (1,954,194) 8,095,000 3,613,433 (3,020,433) $ 8,688,000 For purposes of the statements of cash flows, investments with original maturities of three months or less are considered to meet the definition of cash equivalents. The majority of the investments in which the City's proprietary funds have equity are held by the City's consolidated pool of cash and investments. Since fund equities in this cash management pool have the general characteristics of demand deposits in that additional funds may be deposited at any time and also funds may be withdrawn at any time without prior notice or penalty, each fund's equity account is considered a cash equivalent regardless of the maturities of investments held by the pool. Funds with deficit (overdraft) positions within the consolidated pool report the deficits as interfund payables to the City's Capital Improvement Fund. C. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from the estimates. D. Employee retirement systems and pension plans Defined benefit pension plans The City contributes to two separate single-employer, self-administered defined benefit pension plans covering approximately three-fourths of all City employees. The Employees' Pension Plan covers all permanent, full-time City employees who successfully pass the required physical examination, except for firefighters employed prior to July 1, 1963, and certain nonclassified (primarily managerial) employees. The Firefighters' Relief and Pension Plan covered eligible firefighters hired prior to July 1, 1963, and is closed to new entrants. Neither of these plans issues a stand-alone financial report. As indicated, both plans are self-administered, and the costs of administering the plans are paid from the respective plan assets. The Employees' Pension Plan is authorized by and operates under the provisions of Sections 2.391 through 2.411 of the Municipal Code of the City of Clearwater. Plan provisions have been duly approved as required by the voters in referendums. There were no changes in plan provisions or actuarial assumptions for the current year. The normal retirement benefit is a monthly benefit equal to 2.75% of average monthly compensation for the highest five of the final ten years of service multiplied by the number of years of service to date of retirement. The minimum benefit under the plan is $300 per month. Eligibility for normal retirement occurs upon completion of at least 10 years of service and the attainment of age 65, or completion of at least 20 years of service and the attainment of age 55, or completion of 30 years of service, for employees engaged in non-hazardous duty. For those engaged in hazardous duty, eligibility occurs upon completior�t��(�y�ars of 71 Attachment number 1 \nPage 8� City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 service. The normal monthly benefits are payable for the life of the participant and continue, after the participant's death, to be paid at the same amount for 5 years to eligible surviving beneficiaries; after 5 years, the survivor annuity is reduced to 50% of the original amount. The plan provides for an annual cost of living increase of up to 1.5%. The plan also provides for disability and death benefits, vesting after completion of 10 years of service and the refund of employee contributions in case of a non- vested termination. There are seven other benefit payment options that are computed to be the actuarial equivalent of the normal benefit. Covered employees contribute 8% of their compensation. It is the City's obligation to provide a sufficient additional contribution to maintain the actuarial soundness of the fund but, in any event, not less than 7% of participating employee's compensation per the ordinance governing the plan. The Firefighters' Relief and Pension Plan is authorized and operated under the provisions of Subpart B, Article I(Laws of Florida, Chapter 30658, 1955 and amendments), Sections 1 through 27 of the Municipal Charter and Related Law of the City of Clearwater and Chapter 26, Article III, Sections 26.50 through 26.52 of the Municipal Code of the City of Clearwater. There were no changes in plan provisions or actuarial assumptions for the current year. The normal retirement benefit is a monthly benefit in the amount of 50% of the prevailing wage at the date of retirement of the lowest rank held by the participant during the three years immediately preceding retirement plus 2% of such prevailing wage for each year of service in excess of 20 years up to a maximum of 60%. Participants retiring at the age of 65 years are entitled to a benefit of 60% of the prevailing wage of the lowest rank held by the participant during the three years immediately preceding retirement. The ending rate of pay specified above may not exceed the highest rate of pay for the rank of Captain. Eligibility for normal retirement occurs upon completion of 20 years of service or attainment of age 65. The monthly benefits are payable for the life of the participant and continue, after the participanYs death, to be paid to certain eligible surviving beneficiaries at an amount that is one-half of the amount received by the participant. Benefits are also provided for children of the deceased participant who are less than 18 years of age subject to certain limitations as to amount. The plan also provides for disability and death benefits and for vesting upon completion of at least 12 years of service. The plan provides for post retirement cost of living increases equal to the increase in the prevailing wage for the rank at which the participant retired with a limitation for those retiring on or after January 1, 1972, of 100% of the initial pension benefit for total cost of living increases. Participating employees are required to contribute 6% of their salaries up to the equivalent of the salary of a fireman holding the rank of Captain. Effective with the fiscal year ended September 30, 2007, the Firefighters' Relief and Pension Plan, with no remaining active members (only retirees), is fully funded per the requirements of the governing Ordinance. The City may elect to contribute should future valuations show an actuarial need for such. As of the most recent actuarial valuation date, January 1, 2011 for the Employees' Pension Plan and January 1, 2010 for the Firefighters' Relief and Pension Plan, the membership of the plans was as follows: Retirees and beneficiaries currently receiving benefits Terminated employees entitled to benefits but not yet receiving them Active employees Total number of participants Employees' Pension Plan 956 68 1,508 2,532 Firefighter's Relief and Pension Plan 39 39 For the fiscal year ended September 30, 2011, the covered payroll for the Employees' Pension Fund was $70,428,120. The City's total payroll for the same period was $86,356,575. Annual pension cost and contributions information for the last three fiscal years for both the Employees' Pension Plan and the Firefighters' Relief and Pension Plan follows: Item # 1 72 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Year Annual Ended Pension Sept 30 Cost (a) 2009 $ 9,022,632 2010 $ 22,799,051 2011 $ 18,730,913 Emplovees' Pension Plan Net Employer Percent Pension Contributions Contributed Asset $ 10,318,483 114% $ 15,327,127 $ 15,886,314 (b) 70% $ 8,414,390 $ 17,428,806 93% $ 7,112,283 Attachment number 1 \nPage 8 a) The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2011, are based on actuarial valuations as of January 1, 2010. Since the City's contributions are made during its fiscal year (which commences nine months after the date of the actuarial valuation), the City, with approval of State regulatory authorities, is following the practice of adding interest to its required contributions at the assumed rate of return on investments for a period of one year. (b) The employer contribution is less than the annual pension cost due to a"drawdown" of the net pension asset. The net pension asset is the result of legally required contributions in excess of actuarially required contributions in prior years. Firefighters' Relief and Pension Plan Year Annual Ended Pension Employer Percent Sept 30 Cost Contributions Contributed 2009 (a) $ 2010 $ 2011 $ - $ - - $ - - $ - Effective with the fiscal year ended September 30, 2007, the Firefighters' Relief and Pension Plan, with no remaining active members (only retirees), was fully funded per the requirements of the governing Ordinance. The City may elect to contribute should future biennial valuations show an actuarial need for such. The Employees' Pension Plan net pension asset at September 30, 2011, totaled $7,112,283. It was comprised of the following components: Annual required contributions (ARC) Interest on the net pension asset Adjustment to annual contribution Annual pension cost Fiscal 2011 employer contributions Decrease in net pension asset Net pension asset beginning of year Net pension asset end of year $ 18,332,319 (631,079) 1,029,673 18, 730, 913 17,428,806 (1,302,107) 8,414,390 $ 7,112,283 The net pension asset for the Employees' Pension Plan, representing excess contributions as calculated per GASB 27 requirements, is identical in amount to the plan "credit balance" as disclosed in prior years. A total of $5,355,148 of the current net pension asset balance is attributable to governmental funds and therefore is not reflected in the governmental fund financial statements in accordance with the modified accrual basis of accounting. The remaining $1,757,135 attributable to proprietary funds is reflected in the proprietary fund financial statements on the accrual basis of accounting. Item # 1 73 Attachment number 1 \nPage 8� City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Each pension fund is accounted for as a pension trust fund; therefore each is accounted for in substantially the same manner as proprietary funds with a"capital maintenance" measurement focus and the accrual basis of accounting. Fund assets, primarily investments, are valued at fair value for balance sheet purposes, in accordance with GASB No. 25. Investment values are determined using the estimated fair value determined by averaging estimated fair values obtained from three or more nationally recognized brokers. The Employees' Pension Plan has invested in real estate and timber limited partnership funds. The strategies of these funds are long term and illiquid in nature. As a result, investors are subject to redemption restrictions which generally limit distributions and restrict the ability of limited partners to exit a partnership investment prior to its dissolution. These investments partnerships are valued using their respective net asset value (NAV), and are audited annually. The most significant input into the NAV of such an entity is the fair value of its investment holdings. These holdings are valued by the general partners on a quarterly or semi-annual basis, in conjunction with management and investment advisors, and consultation with valuation specialists. The management assumptions are based upon the nature of the investment and the underlying business. The valuation techniques vary based upon investment type and involve a certain degree of expert judgment. All timber acquisitions are valued per an independent expert third party appraisal within one year of acquisition and similar independent third party appraisals of fair value are conducted at least every three years thereafter. As of September 30, 2011, neither the Employees' Pension Plan nor the Firefighters' Relief and Pension Plan held investments (other than U.S. Government or U.S. Government guaranteed obligations) in any one organization comprising 5% or more of the net assets available for benefits. Significant actuarial assumptions utilized in the most recent actuarial valuation date, January 1, 2011 for the Employees' Pension Plan and January 1, 2010 for the Firefighters' Relief and Pension Plan, are as follows: Emplovees' Pension Plan (1) Assumed rate of return on investments of 7.5%. (2) Projected salary increase at a rate of 6% per year, including both cost-of-living adjustments of 3% and merit or seniority increases at 3%. (3) Mortality based on the RP 2000 Combined Healthy Mortality Table. (4) Pre-retirement withdrawals assumed to occur in accordance with a table of declining withdrawal rates for hazardous and non-hazardous duty categories. (5) Pre-retirement incidence of disability is assumed to occur in accordance with a standard scale of moderate disability rates (Class 1, 1952 Inter-Company); rates for females assumed to be twice that for males. Firefiqhters' Relief and Pension Plan (1) Assumed rate of return on investments of 4.5%. (2) Assumed benefits grow at an annually compounded rate of 2%. There are no longer any active members in this plan. (3) Mortality based on the 1994 Unisex Mortality Table for retired participants; assumed disabled participants will experience mortality according to PBGC Tables 3 and 4 for males and females, respectively. (4) Assumed no withdrawals will occur. (5) Assumed probability of an active participant becoming disabled is zero (no active participants). (6) Assumed value of one mill of ad valorem tax will increase at rate of 5% per year. It is the City's policy to fund pension costs accrued as determined on an actuarial basis. Annual required contributions (ARC) for the Employees' Pension Plan are calculated using the Entry Age Normal with Frozen Initial Liability method. The initial unfunded actuarial accrued liability determined at July 1, 1963, was amortized over a 40-year period; changes made in 1979 and subsequent years, which have had the effect of either increasing or decreasing the actuarial li�pelity,�r� being tm 74 Attachment number 1 \nPage 8 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 amortized over a 30-year period from their effective dates in accordance with State law. The amortization method is level dollar closed. Annual required contributions (ARC) for the Firefighters' Relief and Pension Fund are based on a variation of the aggregate actuarial cost method, under which the unfunded portion of the present value of the projected benefits is allocated over the present value of a 6.0% per year increasing annuity for the remaining years in the 35-year funding period which began January 1, 1972, pursuant to an agreement between the City and the Plan participants. For this purpose, the unfunded actuarial liability is determined after consideration of the available assets at the valuation date. The increasing fixed schedule produced by this method was established in 1988 and will be modified in the future only to the extent that a current valuation indicates a higher required cost level, or if the resulting cost level exceeds 60% of a mill in a current year. Since the plan currently has only inactive members, the funding method could be presently be described as either aggregate or entry-age normal, both of which normally converge after the end of the active participant phase. Under the non-standard cost method used for funding of this plan, all liabilities are unfunded actuarial liabilities and are being amortized according to the closed cost method. This method does not identify or separately amortize unfunded actuarial accrued liabilities, consequently information about funded status and funding progress is presented using the entry age actuarial cost method. This information is intended to serve as a surrogate for the funded status and the funding progress of the plan. As of January 1, 2011, the most recent actuarial valuation date, the Employees' Pension Plan was 97.1 percent funded. The actuarial accrued liability for benefits was $665.7 million, and the actuarial value of assets was $647 million, resulting in an unfunded actuarial accrued liability (UAAL) of $18.7 million. The covered payroll (annual payroll of active employees covered by the plan) was $76.5 million, and the ratio of the UAAL to the covered payroll was 24.5 percent. As of January 1, 2010, the most recent actuarial valuation date, the Firefighters' Relief and Pension Plan was 104.7 percent funded. The actuarial accrued liability for benefits was $6.8 million, and the actuarial value of assets was $7.1 million, resulting in $317 thousand of funding in excess of the actuarial accrued liability. The covered payroll was $-0- with no active employees covered. The Schedules of Funding Progress, presented as required supplementary information following the notes to the financial statements, present multiyear trend information regarding the change in the actuarial value of plan assets versus the actuarial accrued liabilities for benefits over time. Also included as required supplementary information following the notes to the financial statement, per Governmental Accounting Standards Board Statement Nos. 25 and 27, are the Schedules of Employer Contributions, which provide similar multiyear trend information on required employer contributions versus the actual amount contributed. 2. Police Supplemental Pension Fund A supplemental defined contribution pension plan exists for all eligible policemen, which is funded by earmarked revenues received from the State and is administered by the Board of the Police Supplemental Pension Plan. The revenues received from the State are allocated among eligible police officers on the basis of days employed as Clearwater Police Officers. These revenues received from the State of Florida "on-behalf° of the City's employees, which comprise the plan contributions, totaled $816,513 for the year ended September 30, 2011, and are obtained from an eighty-five one hundredths of one percent (0.85%) excise tax on the gross receipts from premiums collected on casualty insurance policies covering property within the City's corporate limits. These monies were recognized as General Fund revenues and General Fund police department expenditures in the current year. The current year contributions represent 4.3% of current year covered payroll. The fair value of cash and investments at September 30, 2011, totaled $13,555,226. The Police Supplemental Pension Fund is authorized by and operates under the provisions of Sections 2.471 through 2.480 of the Municipal Code of the City of Clearwater and Chapter 185 of Florida Statutes. Under the plan provisions, the total monies received during each fiscal year, after payment or provision for all costs and expenses of management and operation Item # 1 75 Attachment number 1 \nPage 8 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 of the plan, are allocated to participants on the basis of the total number of shares to which each participant is entitled. Each participant is entitled to one share in the fund for each day of service as a police officer of the City. All police officers, as defined in Section 26.70(g) of the Code of Ordinances of the City of Clearwater, who are elected, appointed, or employed full-time by the City are eligible to participate in the plan. There are no employee contributions to the supplemental plan. Benefits are fully vested for a lump sum distribution after twenty years from the date of hire, with provision for partial vesting after ten or more years under the plan. Accumulated benefits are payable in full in case of death while employed by the City or in case of total and permanent job-related disability. Non-vested participants' account values upon termination of employment during any fiscal year are added to the monies received during that fiscal year for allocation to the remaining participants in the plan on the basis of total days worked. Plan assets, primarily investments, are valued at fair value for balance sheet purposes, in accordance with GASB No. 25. Investment values are determined using the estimated fair value determined by averaging estimated fair values obtained from three or more nationally recognized brokers. For the fiscal year ended September 30, 2011, the payroll of the covered officers' was $19,188,064; the City's total payroll for the same period was $86,356,575. Since the entitlement to benefits is based entirely upon the allocation of monies received by the plan to the participants' share accounts, there is no actuarial liability on the part of either the State or the City. Firefighters Supplemental Pension Fund A supplemental defined contribution pension plan exists for all eligible firefighters, which is funded by earmarked revenues received from the State and is administered by the Board of the Clearwater Firefighters Supplemental Pension Plan. The revenues received from the State are allocated among eligible firefighters on the basis of days worked during the previous year. These revenues received from the State of Florida "on-behalP' of the City's employees, which comprise the plan contributions, amounted to $1,134,079 in the year ended September 30, 2011, and are obtained from a one and eighty-five one hundredths percent (1.85%) excise tax on the gross receipts from premiums collected on property insurance policies covering property within the City's corporate limits. These monies were recognized as General Fund revenues and General Fund fire department expenditures in the current year. The contributions represent 9.3% of current year covered payroll. The fair value of cash and investments at September 30, 2011, totaled $10,240,345. As the plan is described as a money purchase pension plan, whereby contributions are allocated based on the number of days worked during the fiscal year ended September 30, and interest earnings allocated based on the beginning balances in each participant's account, there is no actuarial liability on the part of the State or the City. The Firefighters Supplemental Pension Fund is authorized by and operates under the provisions of Sections 2.441 through 2.450 of the Municipal Code of the City of Clearwater and Chapter 175 of Florida Statutes. Eligibility requires two years of credited calendar year service as a firefighter with concurrent participation in the Employees' Pension Plan. There is no employee contribution to the supplemental plan, and benefits are vested for a lump sum distribution at ten years unless there is early retirement, disability or death. Non-vested participants' account values upon termination of employment are reallocated among the remaining participants on the basis of days worked during the previous year. Plan assets, primarily investments, are valued at fair value for balance sheet purposes, in accordance with GASB No. 25. Investment values are determined using the estimated fair value determined by averaging estimated fair values obtained from three or more nationally recognized brokers. For the fiscal year ended September 30, 2011, the covered payroll was $12,157,942; the City's total payroll for the same period was $86,356,575. Item # 1 76 Attachment number 1 \nPage 8 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 4. Pension Plan Financial Statements Separate financial statements are provided in the Notes per the guidance of GASB Statement No. 34 as follows: Statement of Fiduciary Net Assets: ASSETS Cash and investments Managed investment accounts, at fair value: Cash and cash equivalents Government bonds Agency bonds Domestic corporate bonds International equity securities Domestic stocks Mortgage backed bonds Asset backed securities Commodity exchange-traded funds Domestic equity mutual funds International equity mutual fund Real estate Total managed investment accounts Securities lending collateral Receivables: Interest and dividends Unsettled investment sales Securities lending earnings Due from others Total receivables Total assets LIABILITIES Accounts payable Unsettled investment purchases Obligations under securities lending Total liabilities NET ASSETS Net assets held in trust for pension benefits $ Defined Benefit Pension Trust Funds Employees' Firefighters' 781,117 $ 2,719,676 $ 37,408,464 29,280,303 11,176,788 66,834,718 66,784,078 241,368,780 66,787,964 759,343 1,238,215 38,066,505 25,612,532 24,816,012 610,133,702 150,576,091 1,963,084 12,540,708 44,292 32,696 14,580,780 776,071,690 798,159 20,706,584 150,576,091 172,080,834 3,673,369 3,673,369 51,392 51, 392 6,444,437 Defined Contribution Pension Trust Funds Police Firefighters Supplemental Supplemental 2,193 $ 595,239 3,094,276 620,096 933,199 5,874,074 2,436,149 13,553,033 46,815 46,815 13,602,041 555,972 532, 322 2,841,941 1,545,572 1,261,597 2,177,819 1,325,122 10,240,345 51,766 51,766 10,292,111 $ 603,990,856 $ 6,444,437 $ 13,602,041 $ 10,292,111 77 Item # 1 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Statement of Changes in Fiduciary Net Assets: ADDITIONS Contributions: Contributions from employer Contributions from employer - state tax Contributions from employees Total contributions Investment income (loss): Net appreciation (depreciation) in fair value of investments Interest Dividends Less investment expenses: Investment management / custodian fees Net income (loss) from investing activities Securities lending income: Gross earnings Gain on securities lending collateral Rebate paid Bank fees Net income from securities lending Total additions (losses) DEDUCTIONS Benefits and withdrawal payments: Benefits Withdrawal payments Total benefits and withdrawal payments Income (loss) before administrative expenses Administrative expenses Netincrease(decrease) Net assets held in trust for pension benefits: Beginning of year End of year $ $ Defined Benefit Pension Trust Funds Employees' Firefighters' 17,652,617 $ 12,000 6,049,656 23,714,273 (14,962,927) 7,661,711 6, 596,112 (705,104) 3,665,089 (4, 370,193) 497,674 1,556,260 131,722 (220,091) 1,965,565 21, 309,645 29,922,846 1,052,623 30,975,469 (9,665,824) 173,685 (9,839,509) 613,830,365 603,990,856 $ - $ 4,929 254,764 259,693 259,693 259,693 726,918 726,918 (467,225) (467,225) Attachment number 1 \nPage 9� Defined Contribution Pension Trust Funds Police Firefighters Supplemental Supplemental - $ 816,513 816,513 (77,486) 173,533 190,706 286,753 1,134,079 1,134,079 (347,875) 205,684 60,847 (81,344) 79,129 83,202 207,624 (164,546) 1,024,137 1,652,629 1,652,629 (628,492) 18,271 (646,763) 969,533 612,439 612,439 357,094 9, 383 347,711 6,911,662 14,248,804 9,944,400 6,444,437 $ 13,602,041 $ 10,292,111 5. 401(a) defined contribution plan For all management employees not covered under either of the defined benefit pension plans, the City provides pension benefits through a 401(a) defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Employees are participants from the date of employment and are fully vested upon enrollment. The plan is totally contributory on the part of the City in an amount equal to 15% of compensation on behalf of the City Manager and the City Attorney; 14% of compensation on behalf of the Chief of Police; and 8% of Item # 1 78 Attachment number 1 \nPage 9 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 compensation on behalf of all other management contract employees and Assistant City Attorneys. The City makes bi- weekly contributions to the Trust throughout the plan year to meet its funding obligations under the plan. Plan provisions and contribution requirements are established and may be amended by the City Council. The International City Management Association Retirement Corporation (ICMA-RC), the trustee for the defined annuity, offers participants a variety of investment options. The City's total payroll for the fiscal year ended September 30, 2011 was $86,356,575. The Plan members' payroll for the same period totaled $4,938,119. The City's contribution, per the above contribution rates, totaled $416,086. The assets, reported at fair value based on quoted market prices, totaled $4,519,663 at September 30, 2011. Deferred compensation plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Effective January 1, 1997, Federal legislation converted the Section 457 deferred compensation assets from City assets to employee assets. As a result of these changes, plan assets are no longer subject to the claims of the City's general creditors. Consequently, these assets are no longer reported in the accompanying financial statements, in compliance with Governmental Accounting Standards Board Statement No. 32. E. Post-employment Benefits Other Than Pension Plan Description - The City of Clearwater administers a single-employer defined benefit healthcare plan (the "Plan") that provides medical insurance benefits to its employees and their eligible dependents. In accordance with Section 112.0801 of the Florida Statutes, because the City provides a medical plan to active employees of the City and their eligible dependents, the City is also required to provide retirees with the opportunity to participate in this Plan. Benefit provisions for the Plan are established by the City Council and may be amended by the City Council. The retirees pay the full group premium amount for health insurance with no explicit subsidy from the City. Additionally the City provides and pays for $1,000 of term life insurance for retirees who retired before October 1, 2008. The term life insurance benefit provision was also established, and may be amended, by action of the City Council. The City does not issue stand-alone financial statements for these programs. Fundinq Policv — Contribution rates for the Plan are established on an annual basis by the City Council. Eligible retirees and their covered dependents receiving benefits contribute 100% of their premium costs for health insurance and 0% of the cost for the $1,000 term life insurance. For the year ended September 30, 2011, the estimated retiree contributions for health insurance premiums totaled $1,349,679. While the City does not directly contribute towards the costs of retiree premiums via an explicit subsidy, the ability of retirees to obtain health insurance coverage at a group rate which includes active employees, constitutes a significant economic benefit to retirees, or an "impliciY' subsidy. This implicit subsidy is considered an "other post-employment benefit" (OPEB) obligation of the City. The City is currently funding this OPEB obligation on a pay-as-you-go basis. For the year ended September 30, 2011, the City estimated it subsidized $1,241,795 of health care costs for retirees and their covered dependents, and $26,185 of life insurance benefits for retirees. Annual OPEB Cost and Net OPEB Obligation — The City's annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize unfunded liabilities of the plan over a period not to exceed thirty years. Item # 1 79 Attachment number 1 \nPage 9 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation to the Plan, including both the implicit rate subsidy for health insurance and the term life insurance benefit: Annual required contribution $ 2,591,067 Interest on net OPEB obligation 225,987 Adjustment to annual required contribution (202,024) Annual OPEB cost (expense) 2,615,030 Contributions made (1,267,980) Increase in net OPEB obligation 1,347,050 Net OPEB obligation - beginning of year 5,255,500 Net OPEB obligation - end of year $ 6,602,550 The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2011, are based on an actuarial valuation as of January 1, 2010. No trust or agency fund has been established for the plan and there were no adjustments to the annual required contribution or interest earnings. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation (asset) for the fiscal year ending September 30, 2011, are presented below. Data is only presented for four fiscal years due to the implementation of GASB Statement 45 and the related disclosure effective with the fiscal year ended September 30, 2008. Fiscal Year Ended 9/30/2008 9/30/2009 9/30/2010 9/30/2011 Annual OPEB Cost $ 2,415,000 $ 2,629,200 $ 2,699,090 $ 2,615,030 Percentage of Annual OPEB Costs Contributed 25.6 % 24.4 % 45.4 % 48.5 % Net OPEB Obligation $ 1,796,100 $ 3,782,700 $ 5,255,500 $ 6,602,550 As of September 30, 2011, the accrued liability for benefits was $30,243,885, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $83.4 million and the ratio of the unfunded actuarial liability (UAL) to covered payroll was 36.3%. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Actuarial valuations for other post-employment benefits involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and consequently actuarially determined amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future. For the September 30, 2011 actuarial valuation, the entry age normal actuarial cost method was used, with an increasing normal cost pattern consistent with the salary increase assumptions. The annual required contribution (ARC) reflects a 27- year, closed level percent of expected payroll amortization method. The actuarial assumptions included a 4.3% investment rate of return and 4.0% projected salary increases. Annual medical costs are assumed to increase 0.00% in the first year of valuation, with future annual increases assumed to grade uniformly from 8.5% to 5% over a seven year period and remain at 5% thereafter. Item # 1 :� Attachment number 1 \nPage 9 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 The actuarial valuation of the Plan as of January 1, 2010, reflected changes in actuarial methods as follows: the actuarial cost method was changed from the unit credit, level dollar method to the entry age, normal method; and the amortization method was changed from 30 years, level dollar open amortization, to 28-year closed level percent of expected payroll. Both of these changes resulted from a change in the actuary for the Plan. The January 1, 2010 actuarial valuation also included a change in the assumption for investment rate of return from 4.0% to 4.3%. The actuarial roll-forward for September 30, 2011 financial disclosures, included a change in the assumed increase in annual medical costs from 9% in year 1 to 0%, with future annual increases assumed to grade uniformly from 8.5% to 5% over a seven year period and remain at 5% thereafter. F. Securities lending transactions The City of Clearwater Employees' Pension Plan participates in securities lending transactions, as authorized by the Pension Trustees on April 14, 2003, via a Securities Lending Authorization Agreement with Northern Trust Company, who is also the pension plan's custodian. Securities are loaned versus collateral that may include cash, U.S government securities, and irrevocable letters of credit. U.S. government securities are loaned versus collateral at 102% of the market value of the securities plus any accrued interest. Non-U.S. securities are loaned versus collateral at 105% of the market value plus any accrued interest. The Plan's investment policy places no restrictions on the amount of securities that can be loaned. Non-cash collateral cannot be pledged or sold unless the borrower defaults. All securities loans can be terminated on demand by either the lender or the borrower. The average term for the pension plans loans at September 30, 2011 was 32 days. If a borrower fails to return the loaned security because of bankruptcy, insolvency, reorganization, liquidations, receivership, conservatorship, or a similar event, Northern Trust Company shall, at its expense, credit the City with the difference between the market value of such loaned security and the market value of the related collateral. At September 30, 2011, there was no failure by a borrower to return a loaned security. Cash "open" collateral is invested in a short-term investment pool, the Core USA Collateral Section, which had an average weighted maturity of 32 days as of September 30, 2011. Cash collateral may also be invested separately in "term loans" in which investments match the loan term. These term loans may be terminated on demand by either the lender or the borrower. There were no significant violations of legal or contractual provisions, nor any borrower or lending agent defaults known to the securities lending agent. The Plan did not impose any restrictions on the amount of loans made by Northern Trust during fiscal year 2011. Northern Trust has indemnified the Plan for losses attributable to violations by the entity of the Standard of Care set out in the Agreement. Northern Trust has also indemnified the Plan for all losses as a result of borrower default and for any losses resulting from related collateral insufficiency. At year-end the Plan has no credit risk exposure to borrowers because the amounts the Plan owes the borrowers equal or exceed the amounts the borrowers owe the Plan and the lending agent indemnifies the Plan if the collateral is inadequate to repay the borrowers. The following is a summary of securities on loan and their collateral: Security Type U.S. Equity U.S. Corporate Fixed U.S. Government Fixed U.S. Agencies Global Equities Total SecuritiesCollateralized by Cash Fair Value Cash Collateral 116,946,839 $ 122,274,004 6,360,487 6,561,123 16,633,289 17,045,615 SecuritiesCollateralized by Non-Cash Fair Value Non-Cash Collateral $ 560,624 $ 586,950 1,623,584 1,668,428 - - 2,823,644 3,026,921 - - 144,387,843 150,576,091 560,624 586,950 81 Item # 1 Attachment number 1 \nPage 9� City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 On the statement of fiduciary net assets, a securities lending asset of $150,576,091 was reported that represents the fair value of the investments made with cash collateral at September 30, 2011. In addition, a securities lending obligation of $150,576,091 was reported that represents the collateral that the City is required to maintain to cover the market value of the loaned securities. The statement of changes in fiduciary net assets presents the net income associated with the securities lending transactions of $1,965,565. Included in this net income is a gain on securities collateral of $1,556,260, which represents the reversal of an unrealized loss that was previously recognized during the fiscal year ended September 30, 2008. The fiscal 2008 unrealized loss represented a temporary deficiency of cash collateral versus the fair value of securities collateralized by cash. This deficiency has been eliminated allowing the reversal of the unrealized loss in the current year. G. Contingencies and commitments Loan Guarantee - PACT, Inc. PACT, Inc. is a nonprofit corporation formed in 1978, for the purpose of financing, constructing, and operating a performing arts center. Per a Guaranty Agreement dated May 18, 2001, the City guaranteed $1,000,0000 on a$5,000,000 mortgage note for PACT, Inc., used to refinance a previous mortgage with a similar City guarantee. City management does not consider it probable that this guarantee will be called, and, accordingly, no amounts have yet been accrued or otherwise recorded in the accompanying financial statements to reflect this possibility. Loan Guarantee — Chi Chi Rodriquez Youth Foundation, Inc. On March 30, 1992, the City Council approved a contingent loan guarantee of $1,000,000 on a$2,500,000 note for the Chi Chi Rodriquez Youth Foundation, Inc. The proceeds of the note were used to refinance existing foundation debt incurred to construct a golf course on a parcel of City-owned land. Subsequently, the note was refinanced with Variable Rate Demand Revenue Bonds (Chi Chi Rodriquez Youth Foundation Project), Series 1998, on August 1, 1998. In the event of default, the City is obligated to contribute $1,000,000 out of legally available non-ad valorem revenues. In addition, the City has the option to retire the entire unpaid balance and assume ownership and operation of the golf course facility. Pollution Remediation Claims Liabilities Pursuant to GASB Statement 49, Accounting and Financial Reporting for Pollution Remediation Obligations, the City is required to analyze known polluted sites to determine future component cost outlays, including estimation where required, for pollution remediation. At September 30, 2010, total GASB 49 accruals equaled $659,506, of which $133,217 was accrued for initial site assessment and support at a site acquired by the Community Redevelopment Agency (a Special Revenue Fund), $491,166 in the Gas Utility Fund (a major proprietary fund) for legal assistance and for a five year project to analyze and treat contaminated soils at the former manufactured gas plant site (see the Soil and groundwater contamination site note below) and $35,123 in the Airpark Fund (a non-major proprietary fund) for contamination cleanup from a fuel spill. During fiscal year 2011 additions to estimates and commitments totaled $574,177 with payments on commitments totaling $354,236. At September 30, 2011, accruals totaled $879,447 consisting of $382,763 for assessment and remediation at two sites for the Community Redevelopment Agency, $45,921 for remediation at the Airpark and $450,763 for assessment and remediation at the Gas Plant site. The City has eighteen other sites that have known contamination from petroleum products, metals, chlorine or coal tar. This includes the additions of a Stormwater Utility Fund site that is under evaluation for the Florida Department of Environmental Protection (FDEP) and a Water and Sewer Utility Fund site for which the FDEP is reviewing assessment data. Ten of these sites are on the State of Florida Petroleum Clean-up Program. When any of these ten sites will be scheduled for cleanup cannot be determined at this time. The remaining six sites are under monitoring plans or are awaiting responses from the FDEP on data submitted by the City. Any additional cleanup costs for these sites cannot be estimated at this time. A No Further Action Site Rehabilitation Completion Order (NFASRC) was received from the FDEP for the one site awaiting this order as of September 30, 2010. Item # 1 82 Attachment number 1 \nPage 9 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Soil and groundwater contamination site The City is the owner of property located at 400 Myrtle Street, Clearwater, Pinellas County, Florida ("Property"). The Property occupies approximately six acres and is currently used by the City Gas Division as its administrative offices and operating facility. The City operated a manufactured gas plant at the Property from approximately 1929 to 1960. Following the discovery in June 1990 of soil and groundwater impacts at the Property allegedly resulting from the prior operation of the manufactured gas plant, the Florida Department of Environmental Protection ("FDEP") directed the City to implement measures to delineate the area and vertical extent of the impacts at the Property and, if necessary, implement appropriate remedial actions. Contamination assessment activities were initiated at the Property in 1995. On April 17, 1996, the City executed an Intergovernmental Agreement with FDEP, governing the scope of assessment and remediation work performed at the Property. The material terms and conditions of the Intergovernmental Agreement require the City to perform contamination assessment activities to delineate the area and vertical extent of soil and groundwater impacts and, if necessary, to remediate such impacts to the extent required by Florida law. Field activities to delineate the extent of impacts were performed from 1995 to 2003. The results of the final field work are presented in a Supplemental Assessment Report dated May 2003, in which the City's consultant concluded that field activities to delineate the extent of soil and groundwater impacts were complete and that a risk assessment should be undertaken to evaluate an appropriate remedy for the reported impacts. By letter dated April 19, 2004, FDEP directed the City to install two additional monitoring wells within the source area on site to delineate the vertical extent of groundwater impacts. The City and FDEP previously discussed the potential harm to the underlying aquifer that may result from the installation of monitoring wells through a source area and the underlying clay confining unit during a meeting with FDEP held on November 29, 2003. Based on the advice of its environmental consultant and other specialists consulted concerning this issue, the City has consistently maintained that the installation of the additional monitoring wells requested by FDEP will likely provide a pathway for the migration of impacts into the aquifer underlying the clay confining unit that is otherwise not presently impacted by the former operations of the MGP based on existing perimeter monitoring well data. The City responded to the FDEP by letter dated April 29, 2004, requesting that FDEP advise the City whether the directive to install the additional vertical extent wells was deemed by FDEP to be final agency action that would otherwise be subject to review in an administrative proceeding. The City's April 29, 2004 response included a request for an extension of time to file an administrative proceeding in the event that FDEP deemed the April 19, 2004 FDEP communication to be final agency action. During fiscal 2005, the Myrtle Avenue Utility and Roadway Widening project began, requiring extensive dewatering during construction. Consulting, equipment, laboratory, permitting, and labor costs for dewatering in areas where there was suspected or known contamination from the former MGP plant were charged to the City of Clearwater Gas Division. All activities related to the Myrtle Avenue dewatering project were documented in the "Supplemental Site Assessment Report — North Myrtle Ave Roadway Corridor" dated March 2007. On January 17, 2008, FDEP issued a letter to the City stating FDEP was willing to replace the need for additional vertical delineation wells with periodic sampling of existing deep wells, as long as they remain unaffected by the contaminants of concern on the site. In May 2009, FDEP issued a status report on all Manufactured Gas Plant sites in Florida. In the report it referenced the January 17, 2008 letter and reaffirmed FDEP's agreement to forego additional on-site vertical delineation if the City continues to monitor the perimeter wells on the facility. On June 22, 2009, the perimeter monitoring wells were tested and the results were reported to FDEP. On February 3, 2010, FDEP issued a letter that formally accepted Clearwater Gas System's Contamination Assessment Report (CAR) and required no further site assessment activities. Furthermore, the DEP is requiring CGS to re-sample all monitoring wells on the site within 60 days of the February 3, 2010 letter. Item # 1 83 Attachment number 1 \nPage 9� City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 In May 2010, CGS issued a Request for Proposal (RFP) to prepare a Feasibility Study, for DEP approval, that would offer a long-term corrective action plan for the gas plant site. Arcadis, Inc. was selected to conduct the Feasibility Study; however, two months into the project the City's Environmental Attorney, Bill Pence, recommended an alternate method of site remediation. He proposed that the City work with the University of Waterloo (Canada) to treat the contaminated soils with sodium persulfate, a chemical oxidant, which would stop the off-site groundwater impacts that are currently experienced on the Pinellas County Health Department site. Chemical oxidation is accepted as a very effective method of dealing with Manufactured Gas Plant residuals. This project was approved by the City Council in January 2011. The project is scheduled to last approximately 5 years at an estimated cost of $425,000. In addition, the City has pursued insurance claims under certain insurance policies covering the Property for the period of time from June 1961 through July 1986. On September 17, 2001, the City agreed to reduce its claim against Southern American Insurance Company ("SAIC"), the sole remaining excess carrier with the City, at an undiscounted value of $300,000. In December 2007, the liquidator managing the SAIC liquidation made an initial payment to the City in the amount of $96,000. In September 2008, a second distribution payment of $174,000 was issued to the City. Finally, in December 2009, the City received a payment of $30,000 for a total collection amount of $300,000. In summary, the City has recovered $787,500 on all of its outstanding insurance claims. From 1993 through September 30, 2011, the City spent $948,742 on the MGP assessment activities, which includes both environmental consultant and outside attorney fees. Contractual Commitment — Water and Sewer Utilitv Under the terms of a 30-year contract between the City and Pinellas County, which is effective through September 30, 2035, the maximum amount of water available to the City is 15 million gallons per day on an annual average basis with no minimum quantity purchase requirement. Effective October 1, 2010, the rate, which is set by the Pinellas County Board of County Commissioners (BOCC), was $3.2959 per 1,000 gallons. The rate effective October 1, 2011 is $3.4277 per 1,000 gallons. The cost of water purchased from the County during fiscal years 2010 and 2011 was $8,010,603 and $7,616,248, respectively. Contractual Commitment — Parking System Under the terms of a put agreement dated October 29, 2010, related to a development agreement between the City and L.O.M., Inc. (developer) for development of a condominium retail/commercial project including a parking garage, the City is obligated to purchase the parking garage component of the project for $9,300,000 from the lender if the developer defaults under the terms of the financing agreement within five years of the project completion. The City has segregated and restricted $9.3 million of Parking System enterprise funds per the terms of this put agreement. Grant Revenues During the current fiscal year and prior fiscal years, the City received revenues and contributions related to grants from the State of Florida, the federal government, and other grantors. These grants are for specific purposes and are subject to review and audit by the grantor agencies. Such audits could result in requests for reimbursement for expenditures disallowed under the terms of the grants. Based upon prior experience, City management believes such disallowances, if any, will not be significant. G. Pending litigation In the normal course of operations the City is a defendant in various legal actions, the ultimate resolution of which is not expected to have a material effect on the financial statements, other than for amounts that have been reserved and recorded as liabilities in the Central Insurance Fund. H. Conduit debt The City has one issue of conduit debt outstanding as follows: :- Item # 1 Attachment number 1 \nPage 9 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2011 Description / Purpose Drew Gardens Refunding Bonds / residential rental facility Original Issue Amount Amount Amount Outstanding Outstanding at 9/30/10 at 9/30/11 $ 3,425,000 $ 2,475,000 $ 2,380,000 The bonds do not constitute a debt, liability, or obligation of the City of Clearwater, the State of Florida, or any political subdivision thereof and accordingly have not been reported in the accompanying financial statements. I. Subsequent Event On February 2, 2012 the City issued $19,365,000 at par value of Stormwater System Revenue Refunding Bonds, Series 2012, to redeem, effective March 5, 2012, $20,295,000 principal of Stormwater Revenue Bonds, Series 2002, maturing after November 1, 2011. The City paid a 1% call premium in the amount of $202,950. The redeemed bonds included serial bonds due in annual installments of $580,000 due November 1, 2012, to $965,000 due November 1, 2023, interest at 3.625% to 4.750%; and 4.75% term bonds in amounts of $3,205,000, $5,115,000 and $2,985,000 due on November 1, 2026, 2030, and 2032, respectively. Item # 1 E:� Page 1 of 3 Schedules of Fundinq Pro4ress: Actuarial Valuation Date 1/1/2006 1/1/2007 1/1/2008 1/1/2009 1 /1 /2010 1 /1 /2011 Actuarial Value of Assets (a) $ 525,573,824 $ 559,830,590 $ 610,979,087 $ 536,834,473 $ 618,444,906 $ 646,956,800 City of Clearwater, Florida Defined Benefit Pension Plans Required Supplementary Information - Unaudited Emplovees Pension Plan Actuarial Accrued Liability (AAL) - Entry Age $ 563,597,580 $ 582,248,127 $ 632,559,753 $ 557,515,503 $ 638,109,349 $ 665,701,475 Unfunded Funded AAL Ratio (b-a) (a/b) $ 38,023,756 $ 22,417,537 $ 21,580,666 $ 20,681,030 $ 19,664,443 $ 18,744,675 93°/a 96% 97% 96% 97% 97% Firefiqhters' Relief and Pension Plan Attachment number 1\nPage 98 of 186 Unfunded AAL Covered as a Percentage Payroll * of Covered Payroll (c) ((b-a) /c) $ 76,010,269 $ 79,385,090 $ 80,371,617 $ 82,104,837 $ 80,443,199 $ 76,505,599 50% 28% 27% 25% 24% 25% Actuarial Actuarial Actuarial Unfunded AAL Valuation Value of Accrued Liability Unfunded Funded Covered as a Percentage Date Assets (AAL) - Entry Age AAL Ratio Payroll * of Covered Payroll (a) (b) (b-a) (a/b) (c) ((b-a)/c) 1/1/2004 1 /1 /2005 1/1/2006 1/1/2007 1/1/2008** 1 /1 /2010** $ $ $ $ $ $ 6,190,744 6,744,043 7,445,172 8,375,505 8,063,338 7,069,681 $ $ $ $ $ $ 9,974,824 8,938,022 8,773,238 8,320,672 7,815,729 6,752,633 $ $ $ $ $ $ 3,784,080 2,193,979 1,328,066 (54,833) (247,609) (317,048) 62% 75% 85% 101 % 103% 105% � � � � �s * Covered payroll is for the calendar year period used for the actuarial valuation. ** Effective 1/1/2008 the fully funded Firefighters' Relief and Pension Plan has opted for biennial actuarial valuations. Consequently there was no valuation done on 1/1/2009 and 1/1/2011. Item # 1 :. n/a n/a n/a n/a n/a n/a Attachment number 1\nPage 99 of Page 2 of 3 City of Clearwater, Florida Defined Benefit Pension Plans Required Supplementary Information - Unaudited Schedules of Emplover Contributions: Year Ended Sept. 30, 2006 2007 2008 2009 2010 2011 $ $ $ $ $ $ Emplovees' Pension Plan Annual (a) Required Contribution 11,614,495 13,180,855 10,805,681 8,451,471 22,150,490 18,332,319 Percent Contributed 64% 78% 96% 122% 72% 95% (a) The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2010, are based on actuarial valuations as of January 1, 2008. Since the City's contributions are made during its fiscal year, which commences nine months after the date of the actuarial valuations, the City, with approval of State regulatory authorities, is following the practice of adding interest to its required contributions at the assumed rate of return on investments for a period of one year. (b) The actual contribution is less than the annual required contribution due to a"drawdown" of the net pension asset. Year Ended Sept. 30, 2006 2007 2008 2009 2010 2011 Firefiqhters' Relief and Pension Plan Annual Required Contribution $ 1,397,390 $ 1,467,259 � - (a) $ - $ - $ - Percent Contributed 100% 100% n/a n/a n/a n/a (a) Effective with the fiscal year ended September 30, 2007, the Firefighters' Relief and Pension Plan, with no remaining active members (only retirees), was fully funded per the requirements of the governing Ordinance. The City may elect to contribute should future valuations show an actuarial need for such. s7 (b) (b) (b) (b) (b) Item # 1 Attachment number 1 \nPage 1� Page 3 of 3 City of Clearwater, Florida Defined Benefit Pension Plans Required Supplementary Information — Unaudited Notes To Schedules Of Required Pension Supplementary Information Annual required contributions for the Employees' Pension Plan are calculated using the Entry Age Normal with Frozen Initial Liability method. The initial unfunded actuarial accrued liability determined at July 1, 1963 is being amortized over a 40-year period; changes made in 1979 and subsequent years which have had the effect of either increasing or decreasing the actuarial liability are being amortized over a 30-year period from their effective dates in accordance with State law. The amortization method is level dollar closed. Annual required contributions for the Firefighters' Relief and Pension Plan are based on the aggregate actuarial cost method, under which the unfunded portion of the present value of the projected benefits is allocated over the present value of a 6.0% per year increasing annuity for the remaining years in the 35-year funding period which begin January 1, 1972, pursuant to an agreement between the City and the Plan participants. For this purpose, the unfunded actuarial liability is determined after consideration of the available assets at the valuation date. The increasing fixed schedule produced by this method was established in 1988 and will be modified in the future only to the extent that a current valuation indicates a higher required cost level, or if the resulting cost level exceeds 60% of a mill in a current year. The amortization method for the Firemen's Relief and Pension Fund is a non-standard (no active employees) closed cost method. The actuarially determined contribution requirement for the Employees' Pension Plan for the City's fiscal year ended September 30, 2011, are based on an actuarial valuation as of January 1, 2010. Since the City's contributions are made during its fiscal year, which commences nine months after the date of the actuarial valuations, the City, with approval of State regulatory authorities, is following the practice of adding interest to its required contributions at the assumed rate of return on investments for a period of one year in the case of the Employees' Pension Plan. Significant actuarial assumptions utilized in the actuarial valuation as of January 1, 2010, in the determination of the annual required contribution are as follows: Employees' Pension Plan (1) Assumed rate of return on investments of 7.5% per annum. (2) Projected salary increase at a rate of 6% per year, including cost-of-living adjustments of 3% and merit or seniority increases at 3%. (3) Mortality based on the RP 2000 Combined Healthy Mortality Table. (4) Pre-retirement withdrawals assumed to occur in accordance with a table of declining withdrawal rates based on hazardous versus non-hazardous duty categories. (5) Pre-retirement incidence of disability assumed to occur in accordance with a standard scale of moderate disability rates (Class 1, 1952 Inter-Company); rates for females assumed to be twice that for males. (6) Assumed inflation rate of 3% Effective with the fiscal year ended September 30, 2007, the Firefighters' Relief and Pension Plan, with no remaining active members (only retirees), was fully funded per the requirements of the governing Ordinance. The City is electing to perform actuarial valuations biennially for the fully funded plan. Significant actuarial assumptions utilized in the actuarial valuation as of January 1, 2010: Firefighters' Relief and Pension Plan (1) Assumed rate of return on investments of 4.5% compounded annually. (2) Assumed benefits grow at annually compounded rate of 2% related to cost of living adjustments only. (3) Mortality based on the 1994 Unisex Mortality Table projected to 2010 for participants. (4) Assumed no withdrawals will occur. (5) Assumed probability of an active participant becoming disabled is zero (no active participants). (6) Assumed value of one mill of ad valorem tax will increase at rate of 5% per year. (7) Assumed inflation rate of 3% Significant changes affecting the presented 6-year trend information include: The actuarial valuation of the Employees' Pension Plan as of January 1, 2007, reflected changes in actuarial assumptions as follows: The mortality assumption was updated from the 1994 Group Annuity Reserving Table to the RP 2000 Combined Healthy Mortality Table; the retirement assumption was updated to reflect the City's experience and expected future retirement rates; and the withdrawal assumption was updated to reflect the City's experience and expected future withdrawal rates. The impact of these changes decreased the unfunded actuarial accrued liability from $37,113,063 to $22,417,537. The actuarial valuation of the Firefighters' Relief and Pension Plan as of January 1, 2003, reflected two changes in actuarial assumptions. The report assumed an investment yield of 4.5% versus the prior valuation assumption of 5.5%. Also, the mortality pattern assumption used the 1994 Unisex Morality Table versus the previous 1983 Group Annuity Mortality Table. The impact of these changes increased the unfunded actuarial accrued liability from $2,648,428 to $4,742,517. Item # 1 :: Attachment number 1 \nPage 1� Page 1 of 1 Schedule of Emplover Contributions: Fiscal Year Ending September 30, 2009 September 30, 2010 September 30, 2011 City of Clearwater, Florida Other Post-Employment Benefits Required Supplementary Information - Unaudited Annual OPEB Estimated Percentage Net OPEB Cost Contributions (1) Contributed Obligation $ 2,629,200 $ 642,600 24.44% $ 3,782,700 $ 2,699,090 $ 1,226,290 45.43% $ 5,255,500 $ 2,615,030 $ 1,267,980 48.49% $ 6,602,550 (1) Since there is no funding, these are the estimated benefit payments. Schedule of Fundinq Propress: Actuarial Actuarial Accrued Unfunded AAL Actuarial Value of Liability (AAL) - Unfunded Funded Covered as a Percentage Valuation Assets Projected Unit Credit AAL Ratio Payroll of Covered Payroll Date (a) (b) (b-a) (a/b) (c) ((b-a) /c) October 1, 2008 $ January 1, 2010 $ January 1, 2010 * $ - $ - $ - $ 23,215,500 $ 23,215,500 32,823,521 $ 32,823,521 30,243,885 $ 30,243,885 0.00% $ 83,100,000 27.94% 0.00% $ 80,987,124 40.53% 0.00% $ 83,389,105 36.27% * Developed per actuarial roll-forward for fiscal year ended September 30, 2011, using the January 1, 2010 actuarial valuation and census data and reflecting lower than assumed increases in Per Capita Costs and Premiums. Significant changes affecting the presented trend information include: The actuarial vaivation of the OPEB Plan as of January 1, 2010, for fiscal year ended September 30, 2010, refiected changes in actuarial methods and assumptions as follows: the actuarial cost method was changed from unit credit, level dollar method to the entry age, normal method; the amortization method was changed from 30 years, level dollar open amortization, to 28-year closed level percent of expected payroll, and the assumption for investment rate of return was changed from 4.0% to 4.3%. These changes occurred at the recommendation of the plan's new actuary. Additionally, due to changes in medical insurance plan options and resulting migration of retirees to the Base option effective January 1, 2011, the Per Capita Cost trend increase, for the actuarial roll-forward for September 30, 2011, was modified from 9% to 0% for year one, with future annual increases assumed to grade uniformly from 8.5% to 5% over seven years, remaining at 5% thereafter. Item # 1 m Attachment number 1 \nPage 1� This Page Intentionally Left Blank Item # 1 .� Attachment number 1 \nPage 1� Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Special Programs Fund — to account for grants and contributions, the use of which is restricted for certain programs. Community Redevelopment Agency Fund — to account for receipt, custody, and expenditure of property tax increment funds associated with related redevelopment projects. Local Housing Assistance SHIP Trust Fund — to account for monies allocated to the City under the State Local Housing Assistance SHIP grant program. Pinellas County Local Housing Assistance Trust Fund — to account for monies allocated to the City under the Pinellas County Local Housing Assistance grant program. Item # 1 91 Attachment number 1 \nPage 1� Debt Service Funds Debt service funds provide separate accounting records for all debt interest, principal, and reserve requirements for general government long-term. Debt of proprietary funds is serviced through restricted accounts maintained within the individual enterprise or internal service fund associated with the debt. Improvement Revenue Refunding Bonds Debt Service Fund - to account for the advance monthly accumulation of resources by transfer of public service tax and communications services tax revenues from the General Fund and the payment of currently maturing installments of principal and interest during each fiscal year. Notes and Mortgages Debt Service Fund - to account for the advance monthly accumulation of resources by transfer of General Revenues from the General and Special Revenue Funds and the payment of currently maturing installments of principal and interest on the various note and mortgage obligations of the governmental funds during each fiscal year. Spring Training Facility Revenue Bonds Debt Service Fund — to account for the advance monthly accumulation of resources received from the State of Florida and Pinellas County, and the payment of currently maturing installments of principal and interest each year. 92 Item # 1 Attachment number 1 \nPage 1� Capital Projects Funds Capital projects funds are used to account for resources to be used for the acquisition or construction of major capital improvement projects, other than those financed by proprietary funds. A major capital improvement project is a property acquisition, a major construction undertaking, or a major improvement to an existing facility or property, with a cost greater than $25,000 and a minimum useful life of at least five years. Community Redevelopment Agency Capital Projects Fund — to provide separate accounting records for the acquisition or construction of capital improvement projects for the Clearwater Community Redevelopment Agency. 93 Item # 1 ASSETS Cash and investments Receivables: Accrued interest Mortgage notes Rehab advances Other Due from other governments - grants Due from other governments - other Land held for resale Prepaid items Advancesto otherfunds Total assets LIABILITIES Accounts and contracts payable Accrued payroll Due to other governmental entities Construction escrows Due to other funds (deficit in pooled cash) Advances from other funds Deferred revenue Total liabilities FUND BALANCES Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities and fund balances City of Clearwater, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2011 Special Revenue Funds Community Special Redevelopment Programs Agency $ 11,076,437 $ 1,213,771 $ SHIP Pinellas County Local Housing Local Housing Assistance Assistance Trust Trust Attachment number 1 \nPage 1� Total 284,080 $ 507,164 $ 13,081,452 52,478 33,953 833 2,614 89,878 7,373,912 - 7,150,978 911,846 15,436,736 10,001 - 676 - 10,677 8,548 23,545 - - 32,093 472,024 - - - 472,024 75,253 - - - 75,253 84,701 4,618,670 - - 4,703,371 974,267 - - - 974,267 $ 20,127,621 $ 5,889,939 $ 7,436,567 $ 1,421,624 $ 34,875,751 $ 264,027 $ 43,608 $ 8,390 $ 265 $ 316,290 26,705 - - - 26,705 643 48,000 - - 48,643 11,515 - 7,123 - 18,638 - 2,874,267 - - 2,874,267 - 23,545 - - 23,545 302,890 2,989,420 15,513 265 3,308,088 13,771,014 4,618,670 7,421,054 1,421,359 27,232,097 2,983,325 - - - 2,983,325 3,070,392 - - - 3,070,392 - (1,718,151) - - (1,718,151) 19,824,731 2,900,519 7,421,054 1,421,359 31,567,663 $ 20,127,621 $ 5,889,939 $ 7,436,567 $ 1,421,624 $ 34,875,751 The notes to the financial statements are an integral part of this statement. Item # 1 94 Notes and Mortgages Debt Service Funds Spring Training Facility Revenue Bonds $ - $ 490,520 $ Attachment number 1 \nPage 1� Total Capital Project Fund Total Community Nonmajor Redevelopment Governmental Agency Funds 490,520 $ 4,232,450 $ 17,804,422 - 2,239 2,239 - 92,117 - - - - 15,436,736 - - - - 10,677 - - - 1,000 33,093 - 48,971 48,971 - 520,995 - - - - 75,253 - - - - 4,703,371 89,830 - 89,830 - 89,830 - - - - 974,267 $ 89,830 $ 541,730 $ 631,560 $ 4,233,450 $ 39,740,761 $ - $ 89,830 89,830 $ - $ 359,752 $ 676,042 - - 26,705 - - 48,643 - - 18,638 89,830 - 89,830 - - 2,874,267 - - 23,545 89,830 359,752 3,757,670 89,830 - 89,830 - 89,830 - 541,730 541,730 3,858,737 31,632,564 - - - - 2,983,325 - - - 14,961 3,085,353 (89,830) - (89,830) - (1,807,981) - 541,730 541,730 3,873,698 35,983,091 $ 89,830 $ 541,730 $ 631,560 $ 4,233,450 $ 39,740,761 Item # 1 95 Attachment number 1 \nPage 1� City of Clearwater, Florida Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 2011 REVENUES Intergovernmental: Federal State Local Charges for services Fines and forfeitures Investment earnings Miscellaneous Total revenues: EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Cu�ture and recreation Debt service: Principal Interest & fiscal charges Capital outlay Total expenditures Excess (deficiency) of revenues over / (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending Special Revenue Funds SHIP Pinellas County Community Local Housing Local Housing Special Redevelopment Assistance Assistance Programs Agency Trust Trust Total $ 3,438,818 $ - $ - $ - $ 3,438,818 188,374 - 96,983 - 285,357 215,266 982,879 - - 1,198,145 1,150,167 - - - 1,150,167 617,341 - - - 617,341 288,186 163,348 - 15,035 466,569 1,084,914 70,508 48,708 - 1,204,130 6,983,066 1,216,735 145,691 15,035 8,360,527 1,944,576 - - - 1,944,576 2,163,048 - - - 2,163,048 143,702 - - - 143,702 182,979 - - - 182,979 613,057 397,615 84,680 2,870 1,098,222 180,287 - - - 180,287 1,222,305 - - - 1,222,305 - - 4,299 - 4,299 248,595 - - - 248,595 6,698,549 397,615 88,979 2,870 7,188,013 284,517 819,120 56,712 12,165 1,172,514 372,488 2,612,756 - - 2,985,244 (1,352,943) (2,453,166) (58,662) (68,453) (3,933,224) (980,455) 159,590 (58,662) (68,453) (947,980) (695,938) 978,710 (1,950) (56,288) 224,534 20,520,669 1,921,809 7,423,004 1,477,647 31,343,129 $ 19,824,731 $ 2,900,519 $ 7,421,054 $ 1,421,359 $ 31,567,663 The notes to the financial statements are an integral part of this statement. ., Item # 1 Attachment number 1 \nPage 1� Debt Service Funds Capital Spring Project Improvement Training Fund Total Revenue Notes Facility Community Nonmajor Refunding and Revenue Redevelopment Governmental Bonds Mortgages Bonds Total Agency Funds $ - $ 90,444 90,444 $ - $ - $ - $ 3,438,818 500,004 500,004 - 785,361 587,650 587,650 - 1,785,795 - - - 1,150,167 - - - 617,341 10,868 101,312 - 567,881 - - 2,585 1,206,715 1,098,522 1,188,966 2,585 9,552,078 451,370 1, 944, 576 2,163, 048 143, 702 182,979 1,549,592 180,287 1,222,305 8,540,000 420,054 550,000 9,510,054 - 9,510,054 292,054 34,192 525,886 852,132 - 856,431 - - - - 357,592 606,187 8,832,054 454,246 1,075,886 10,362,186 808,962 18,359,161 (8,741,610) (454,246) 22,636 (9,173,220) (806,377) (8,807,083) - 454,246 - 454,246 2,087,679 5,527,169 (7,959) - - (7,959) (3,768,305) (7,709,488) (7,959) 454,246 - 446,287 (1,680,626) (2,182,319) (8,749,569) - 22,636 (8,726,933) (2,487,003) (10,989,402) 8,749,569 - 519,094 9,268,663 6,360,701 46,972,493 $ - $ - $ 541,730 $ 541,730 $ 3,873,698 $ 35,983,091 Item # 1 97 Attachment number 1 \nPage 1 This Page Intentionally Left Blank Item # 1 .; City of Clearwater, Florida Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (GAAP Basis) Community Redevelopment Agency For the Year Ended September 30, 2011 REVENUES Intergovernmental - Local Investment earnings Miscellaneous Total revenues EXPENDITURES Current - Economic environment Total expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Excess of revenues and other sources over expenditures and other uses Fund balances - beginning Fund balances - ending Budgeted Amounts Actual Original Final Amounts Attachment number 1 \nPage 1 Variance with Final Budget Positive (Negative) $ 1,013,627 $ 1,191,035 $ 982,879 $ (208,156) 100, 000 150 , 000 16 3, 348 13, 348 70,018 71,394 70,508 (886) 1,183,645 1,412,429 1,216,735 (195,694) 280,002 569,502 397,615 171,887 280,002 569,502 397,615 171,887 903,643 842,927 819,120 (23,807) 900,538 871,244 2,612,756 1,741,512 (1,804,181) (1,714,171) (2,453,166) (738,995) (903,643) (842,927) 159,590 1,002,517 - - 978,710 978,710 1,921,809 1,921,809 1,921,809 - $ 1,921,809 $ 1,921,809 $ 2,900,519 $ 978,710 The notes to the financial statements are an integral part of this statement. .. Item # 1 Attachment number 1 \nPage 1 This Page Intentionally Left Blank Item # 1 100 Attachment number 1 \nPage 1 Nonmajor Enterprise Funds Enterprise funds are used to account for the financing, acquisition, operation, and maintenance of governmental facilities that are supported primarily by user charges. Recycling Utility Fund — to account for the financing, processing, operation and maintenance of the City's recycling service from charges made to users of the services and funds received from the sale of recyclable commodities processed to meet market requirements. The service area extends beyond the City limits Marine Operations Fund - to account for the financing, operation, and maintenance of the City's marine operations (excluding the downtown boat slips) and associated real property from rents collected from users. Aviation Operations Fund - to account for the financing, operation, and maintenance of the City's airpark operations from rents collected from users. Parking System Fund - to account for the financing, construction, operation and maintenance of the City's parking system, including on- and off-street parking on Clearwater Beach and Downtown Clearwater, from parking charges. Harborview Center Fund - to account for the operation of the City's convention center and related facilities. Clearwater Harbor Marina Fund - to account for the financing, operation, and maintenance of the City's downtown boat slips from boat slip rentals. 101 Item # 1 City of Clearwater, Florida Combining Statement of Net Assets Nonmajor Enterprise Funds September 30, 2011 ASSETS Current assets: Cash and investments Accrued interest receivable Accounts and contracts receivable: Billed Unbilled charges estimated Less: Allowance for uncollectable accounts Total receivables, net Due from other governmental entities Inventories, at cost Prepaid expenses and other assets Total current assets - unrestricted Current assets - restricted: Restricted cash and investments Total current assets - restricted Total current assets Noncurrent assets: Net pension asset Capital assets: Land and other nondepreciable assets Capital assets, net of accumulated depreciation Total noncurrent assets Total assets LIABILITIES Current liabi�ities: Accounts and contracts payable Accrued payroll Due to other funds - deficit in pooled cash Deposits Unearned revenue and liens Current portion of long-term liabilities: Compensated absences Notes, loan pool agreement and acquisition contracts Due to other funds Total current liabilities Noncurrent liabilities: Compensated absences Other postemployment benefits Notes, loan pool agreement and acquisition contracts Advances from other funds Total non-current liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted for: Developer agreement Unrestricted Total net assets The notes to the financial statements are an integral part of this statement. i[�y: Attachment number 1 \nPage 1 Recycling Marine Utility Operations $ 4,685,853 $ 235,975 19,593 855 81,676 - 310,881 - 392,557 - (2,904) - 389,653 - - 64,648 10,313 - 5,105,412 301,478 5,105,412 301,478 90,541 55,927 - 719,961 484,015 471,268 574,556 1,247,156 5,679,968 1,548,634 30,581 45,147 14,966 12,165 - 24,749 22,631 53,895 48,311 - 116,489 135,956 12,632 30,083 86,427 62,394 60,391 - 159,450 92,477 275,939 228,433 375,313 1,191,229 5,028,716 128,972 $ 5,404,029 $ 1,320,201 Item # 1 Attachment number 1 \nPage 1 Aviation Parking Harborview Clearwater Operations System Center Harbor Marina Total $ 530,870 $ 5,637,518 $ 754,073 $ - 1,839 62,368 3,282 888 - - 188 5,887 - - 188 5,887 - - 188 5,887 100,000 - - 1,236,097 632,709 5,699,886 757,543 - 9,300,000 - - - 9,300,000 - 632,709 14,999,886 757,543 1,242,872 2,254 24,316 - - 1,499,340 981,282 926,000 - 1,564,058 3,574,035 5,021,790 12,617,153 3,065,652 4,579,633 5,947,790 12,617,153 3,698,361 19,579,519 6,705,333 13,860,025 $ 11,844,289 88,825 87,751 310, 881 398,632 (2,904) 395,728 1,336,097 64, 648 10,313 13,739,900 9,300,000 9,300,000 23,039,900 173,038 4,126,583 23,732,319 28,031,940 51,071,840 61,577 21,810 108,701 8,683 276,499 829 19,497 - 2,610 50,067 - - - 387,388 387,388 - 2,011 - 25,599 52,359 - 16,929 - 5,907 22,836 2,228 44,859 - 1,943 125,556 - - - - 48,311 20,271 - - - 20,271 84,905 105,106 108,701 432,130 983,287 1,243 25,040 - 1,084 70,082 5,414 122,477 - 21,722 298,434 - - - - 60,391 81,086 - - - 81,086 87,743 147,517 - 22,806 509,993 172,648 252,623 108,701 454,936 1,493,280 3,063,398 4,555,317 5,947,790 12,617,153 27,750,200 - 9,300,000 - - 9,300,000 462,315 5,471,579 648,842 787,936 12,528,360 $ 3,525,713 $ 19,326,896 $ 6,596,632 $ 13,405,089 $ 49,578,560 Item # 1 fi[�It? Attachment number 1 \nPage 1 City of Clearwater, Florida Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Nonmajor Enterprise Funds For the Year Ended September 30, 2011 Operating revenues: Sales to customers Service charges to customers User charges to customers Rentals Total operating revenues Operating expenses: Personal services Purchases for resale Operating materials and supplies Transportation Utility service Depreciation Interfund administrative charges Other current charges: Professional fees Advertising Communications Printing and binding Insurance Repairs and maintenance Rentals Miscellaneous Data processing charges Taxes Total other current charges Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Investment earnings Interest expense Other Total nonoperating revenue (expenses) Income (loss) before contributions and transfers Capital grants and contributions Transfers in Transfers out Changes in net assets Recycling Marine Utility Operations $ 1,574,631 7,286 1,552,781 3,134,698 1,099,531 342,288 98,785 459,733 10,209 145,174 576,010 54,847 16,995 5,646 89 42,890 17,056 1,077 11,336 35,010 184,946 2,916,676 218,022 $ 2,905,530 190,389 1,231,386 4,327,305 871,711 2,425,169 43,421 14,388 211,892 106,285 200,980 36,490 11,424 14,474 35,010 43,833 1, 320 78,201 27,260 4,231 252,243 4,126,089 201,216 93,460 5,986 (4,409) - 83,519 60,114 172,570 66,100 390,592 267,316 4,710 - (122,470) (213,720) 272,832 53,596 Total net assets - beginning 5,131,197 1,266,605 Total net assets - ending $ 5,404,029 $ 1,320,201 The notes to the financial statements are an integral part of this statement. Item # 1 fi[�L! Attachment number 1 \nPage 1 Aviation Parking Harborview Clearwater Operations System Center Harbor Marina Totals $ 6,539 $ - $ - $ - $ 4,486,700 - - - - 7,286 - 4,666,491 - 16,112 6,425,773 229,986 - 44,320 307,509 1,813,201 236,525 4,666,491 44,320 323,621 12,732,960 56,350 2,872 1,628 42,252 202, 991 20,461 1,255,570 37,749 116,484 57,776 228,535 902, 590 487 11,311 506,743 4,160 167, 539 805 8,690 1,334 44,103 321,330 10,200 3,450,701 2,768,262 191,517 594,054 377,543 1,511,058 1,714,401 16,463 277,446 4,054 7,780 397,080 300 - - 5,981 34,700 - 15,127 - 333 35,580 - 12,890 - - 12,979 25,050 38,440 - 14,170 155,560 125,590 247,823 49,974 15,841 500,117 - 452,216 - - 454,613 14,543 173,986 - 3,324 281,390 2,110 33,300 - 5,300 102,980 - - 2,171 - 6,402 184,056 1,251,228 56,199 52,729 1,981,401 510,610 3,849,932 578,900 606,730 12,588,937 (274,085) 816,559 (534,580) (283,109) 144,023 9,787 273,138 16,795 - 399,166 (1,929) - - (48,026) (54,364) 22 10,340 6,693 51,665 212,353 7,880 283,478 23,488 3,639 557,155 (266,205) 1,100,037 (511,092) (279,470) 701,178 217,648 - - 15,251 232,899 95,149 9,888 - 500,000 609,747 (11,880) (543,457) - (500,000) (1,391,527) 34,712 566,468 (511,092) (264,219) 152,297 3,491,001 18,760,428 7,107,724 13,669,308 49,426,263 $ 3,525,713 $ 19,326,896 $ 6,596,632 $ 13,405,089 $ 49,578,560 Item # 1 i[���7 City of Clearwater, Florida Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended September 30, 2011 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers Cash payments to suppliers Cash payments to employees Cash payments to other funds Other revenues Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in from other funds Transfers out to other funds Receipt of cash on loans to/from other funds Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on debt Interest paid Acquisition of capital assets Capital contributed by other governmental entities Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Cash and cash equivalents classified as: Cash and investments Restricted cash and investments Total cash and cash equivalents Attachment number 1 \nPage 1 Recycling Marine Utility Operations $ 2,968,523 $ (575,145) (1,107,408) (1,084,279) 83,519 285,210 4,332,097 (3,070,121) (867,640) (91,132) 60,114 363,318 4,710 - (122,470) (213,720) (117,760) (213,720) (61,279) - (4,144) - (6,502) (49,875) (71,925) (49,875) 101,219 5,347 101,219 5,347 196, 744 105, 070 4,489,109 130,905 $ 4,685,853 $ 235,975 $ 4,685,853 $ 235,975 $ 4,685,853 $ 235,975 The notes to the financial statements are an integral part of this statement. Item # 1 `I�Z� Aviation Parking Harborview Clearwater Operations System Center Harbor Marina Totals $ 236,525 $ 4,682,572 $ 44,565 $ 331,740 $ 12,596,022 (175,779) (1,250,064) (64,456) (908,623) (6,044,188) (56,006) (1,266,093) - (171,647) (3,468,794) (49,249) (1,114,231) (5,647) (20,804) (2,365,342) 22 10,340 6,693 51,665 212,353 (44,487) 1,062,524 (18,845) (717,669) 930,051 95,149 9,888 (11,880) (543,457) 83,269 (533,569) (1,929) - (88,439) (767,416) 254,104 - 163,736 (767,416) - 500,000 609,747 - (500,000) (1,391,527) - 387,388 387,388 - 387,388 (394,392) - - (61,279) - (20,094) (26,167) - (166,016) (1,078,248) - 84,316 338,420 - (101,794) (827,274) 9,999 310,326 17,510 9,999 310,326 17,510 212,517 71,865 (1,335) 318,353 14,865,653 755,408 $ 530,870 $ 14,937,518 $ 754,073 $ $ 530,870 $ 5,637,518 $ 754,073 $ - 9,300,000 - $ 530,870 $ 14,937,518 $ 754,073 $ 107 - 444,401 - 444,401 (432,075) 152,786 432,075 20,991,503 - $ 21,144,289 - $ 11,844,289 - 9,300,000 - $ 21,144,289 Attachment number 1 \nPage 1 Item # 1 City of Clearwater, Florida Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended September 30, 2011 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Other nonoperating revenue Depreciation Change in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventory Increase (decrease) in accounts and contracts payable Increase (decrease) in deposits Increase (decrease) in unearned revenue (Increase) decrease in net pension asset Increase (decrease) in accrued payroll Increase (decrease) in other postemployment benefits Total adjustments Net cash provided (used) by operating activities `I��:3 Attachment number 1 \nPage 1 Recycling Marine Utility Operations $ 218,022 $ 201,216 83,519 60,114 145,174 106,285 (166,175) - - (31,938) 12,547 18,778 - 4, 792 13,047 6,484 (41,027) (13,934) 20,103 11, 521 67,188 162,102 $ 285,210 $ 363,318 Item # 1 Attachment number 1 \nPage 1 Aviation Parking Harborview Operations System Center $ (274,085) $ 816,559 $ (534,580) $ 22 202,991 26,241 534 (1,452 ) 1,262 229,598 10,340 228,535 1,532 169 15,912 10,130 (49,109) 28,456 245,965 6,693 506,743 245 2,054 515,735 Clearwater Harbor Marina Totals (283,109) $ 144,023 51,665 321,330 (5,887) (811,566) 14,006 (9,170) 5,062 (434, 560 ) 212,353 1,511,058 (171,817) (31,938) (750,414) 18,967 15,912 30,195 (114,692) 66,404 786,028 $ (44,487) $ 1,062,524 $ (18,845) $ (717,669) $ 930,051 Item # 1 ���� Attachment number 1 \nPage 1 This Page Intentionally Left Blank Item # 1 110 Attachment number 1 \nPage 1 Internal Service Funds Internal service funds are used to account for services and commodities furnished by a designated department to other departments within the City or to other governments on a cost reimbursement basis. Garage Fund - to account for the cost of automotive and other motorized equipment of the City. The acquisition cost of new or upgraded equipment is financed through user departments and the asset value is simultaneously contributed to the Garage Fund. The cost of replacement of existing equipment is financed by the Garage Fund. Administrative Services Fund - to account for various support activities including information technology, printing, mailing, and telephone services. The cost for these services is charged to user departments based on the cost of providing units of service. General Services Fund - to account for various support activities including building maintenance and custodial services for all City departments and facilities. The cost for these services is charged to user departments based on the cost of providing units of service. Central Insurance Fund - to account for the City's limited self-insurance program wherein all funds are assessed charges based on damage claims incurred and on management's assessment of individual funds' risk exposure. All claims and premiums are paid out of this fund, together with other costs necessary to administer the program. Medical insurance premiums are also paid from this fund. Item # 1 111 City of Clearwater, Florida Combining Statement of Net Assets Internal Service Funds September 30, 2011 ASSETS Current assets: Cash and investments Accrued interest receivable Other receivables Due from other funds Inventories, at cost Prepaid expenses and other assets Total current assets Noncurrent assets: Advances to other funds Net pension asset Capital assets: Land and other nondepreciable assets Capital assets, net of accumulated depreciation Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts and contracts payable Accrued payroll Unearned revenue Current portion of long-term liabilities: Compensated absences Notes, loan pool agreement and acquisition contracts Due to other funds Claims payable Total current liabilities (payable from current assets) Noncurrent liabilities: Compensated absences Other postemployment benefits Notes, loan pool agreement and acquisition contracts Advances from other funds Claims payable Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Unrestricted Total net assets Attachment number 1 \nPage 1 Administrative General Central Garage Services Services Insurance Total $ 5,158,806 $ 7,625,834 $ 1,454,132 $ 37,675,630 $ 51,914,402 20,434 32,547 6,125 155,009 214,115 9,524 - - - 9,524 - - - 111,925 111,925 500,833 - - - 500,833 309,344 37,645 - 982,167 1,329,156 5,998,941 7,696,026 1,460,257 38,924,731 54,079,955 - - - 2,439,353 2,439,353 106,889 292,020 21,349 12,143 432,401 729,591 - - - 729,591 10,633,676 3,813,694 68,185 - 14,515,555 11,470,156 4,105,714 89,534 2,451,496 18,116,900 17,469,097 11,801,740 1,549,791 41,376,227 72,196,855 434,561 175,388 39,800 1,838,561 2,488,310 29,308 62,368 32,649 6,071 130,396 701,861 - - - 701,861 112,118 290,300 136,635 41,076 580,129 2,170,459 245,981 - - 2,416,440 - 91,654 - - 91,654 - - - 2,219,200 2,219,200 3,448,307 865,691 209,084 4,104,908 8,627,990 62,581 162,040 76,266 22,927 323,814 143,341 299,558 180,184 29,051 652,134 4,169,537 592,501 - - 4,762,038 - 458,267 - - 458,267 - - - 6,468,800 6,468,800 4,375,459 1,512,366 256,450 6,520,778 12,665,053 7,823,766 2,378,057 465,534 10,625,686 21,293,043 5,023,271 2,975,212 68,185 - 8,066,668 4,622,060 6,448,471 1,016,072 30,750,541 42,837,144 $ 9,645,331 $ 9,423,683 $ 1,084,257 $ 30,750,541 $ 50,903,812 The notes to the financial statements are an integral part of this statement. 112 Item # 1 City of Clearwater, Florida Combining Statement of Revenue, Expenses, and Changes in Fund Net Assets Internal Service Funds For the Year Ended September 30, 2011 Operating revenues Billings to departments Operating expenses: Personal services Purchases for resale Operating materials and supplies Transportation Utility service Depreciation Interfund administrative charges Other current charges: Professional fees Communications Printing and binding Insurance Premiums Claims incurred Repairs and maintenance Rentals Miscellaneous Data processing charges Taxes Total other current charges Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Investment earnings Interest expense Gain on sale of capital assets Loss on disposal of capital assets Other Total nonoperating revenue (expenses) Income (loss) before contributions and transfers Capital grants and contributions Transfers in Transfers out Change in net assets Total net assets - beginning Total net assets - ending Attachment number 1 \nPage 1 Administrative General Central Garage Services Services Insurance Total $ 11,515,068 $ 8,842,272 $ 4,714,266 $ 15,683,227 $ 40,754,833 2,469,155 4,535,075 148,349 119,988 3,882,457 266,670 633,471 17,192 4,653,559 115,174 96,603 846, 744 4,000 223,172 950,979 14,708 2,746,847 336,995 189, 701 410,652 17,908 30,781 522,834 3,171 1, 539 4,159 57,436 3,589 10,392,395 4,535,075 603,689 287,843 530,640 4,751,268 270,670 914,079 1,002,541 14,708 38,680 25,170 33,190 12,503,346 12,600,386 - - - 3,568,433 3,568,433 531,677 1,037,286 942,764 13,363 2,525,090 1,870 373,137 6,038 550 381,595 34,768 74,897 20,668 80,092 210,425 109,390 184,560 83,030 11,730 388,710 8,299 - - - 8,299 1,375,347 2,883,909 1,116,471 16,238,539 21,614,266 12,797,041 8,599,989 4,818,574 16,770,242 42,985,846 (1,281,973) 242,283 (104,308) (1,087,015) (2,231,013) 96,287 165,925 30,097 773,542 1,065,851 (195,148) (27,837) (240) - (223,225) 220,121 - - - 220,121 - (5,954) (1,639) - (7,593) 151,870 1,328 6,221 6 159,425 273,130 133,462 34,439 773,548 1,214,579 (1,008,843) 375,745 (69,869) (313,467) (1,016,434) 286,950 - - - 286,950 2,200,846 36,511 38 583,760 2,821,155 - (14,369) - - (14,369) 1,478,953 397,887 (69,831) 270,293 2,077,302 8,166,378 9,025,796 1,154,088 30,480,248 48,826,510 $ 9,645,331 $ 9,423,683 $ 1,084,257 $ 30,750,541 $ 50,903,812 The notes to the financial statements are an integral part of this statement. Item # 1 113 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from other funds Cash payments to suppliers Cash payments to employees Cash payments to other funds Otherrevenues Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in from other funds Transfers out to other funds Payment of cash on loans to/from other funds Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND REIATED FINANCING ACTIVITIES Principal payments on debt Interest paid Acquisition of capital assets Sale of capital assets Proceeds from issuance of debt Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Cash and cash equivalents classified as: Cash and investments Attachment number 1 \nPage 1 City of Clearwater, Florida Combining Statement of Cash Flows Internal Service Funds For the Year Ended September 30, 2011 Administrative General Central Garage Services Services Insurance Total $ 11,515,068 $ 8,842,272 $ 4,714,266 $ 15,683,227 $ 40,754,833 (5,781,680) (2,517,401) (1,734,161) (14,889,472) (24,922,714) (2,501,150) (4,644,011) (2,699,490) (527,230) (10,371,881) (613,832) (523,625) (346,967) (29,232) (1,513,656) 78,540 1,328 6,221 6 86,095 2,696,946 1,158,563 (60,131) 237,299 4,032,677 2,200,846 36,511 - (14,369) - (91,653) 2,200,846 (69,511) (2,735,847) (161,465) (195,148) (27,837) (4,424,289) (751,090) 220,121 - 2,101,989 605,081 38 583,760 2,821,155 - (14,369) _ (1,808,346) (1,899,999) 38 (1,224,586) 906,787 (12,710) - (2,910,022) (240) - (223,225) - - (5,175,379) - - 220,121 - - 2,707,070 (5,033,174) (335,311) (12,950) - (5,381,435) 104,988 173,342 32,070 843,209 1,153,609 104,988 173,342 32,070 843,209 1,153,609 (30,394) 927,083 (40,973) (144,078) 711,638 5,189,200 6,698,751 1,495,105 37,819,708 51,202,764 $ 5,158,806 $ 7,625,834 $ 1,454,132 $ 37,675,630 $ 51,914,402 $ 5,158,806 $ 7,625,834 $ 1,454,132 $ 37,675,630 $ 51,914,402 The notes to the financial statements are an integrai part of this statement. Item # 1 114 City of Clearwater, Florida Combining Statement of Cash Flows Internal Service Funds For the Year Ended September 30, 2011 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Other nonoperating revenue Depreciation Change in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventory (Increase) decrease in prepaid expenses Increase (decrease) in accounts and contracts payable Increase (decrease) in unearned revenue (Increase) decrease in net pension asset Increase (decrease) in accrued payroll Increase (decrease) in other postemployment benefits Total adjustments Net cash provided (used) by operating activities Noncash investing, capital and financing activities: Capital assets transferred from General Government Attachment number 1 \nPage 1 Administrative General Central Garage Services Services Insurance Total $ (1,281,973) $ 242,283 $ (104,308) $ (1,087,015) $ (2,231,013) 151,870 1,328 6,221 6 159,425 3,882,457 846,744 17,908 4,159 4,751,268 (9,524) - - - (9,524) (40,949) - - - (40,949) (81,329) (27,798) - 29,652 (79,475) 172,195 86,458 (27,309) 1,294,893 1,526,237 (63,806) - - - (63,806) 31,198 55,457 32,084 6,445 125,184 (75,672) (108,969) (29,582) (16,085) (230,308) 12,479 63,060 44,855 5,244 125,638 3,978,919 916,280 44,177 1,324,314 6,263,690 $ 2,696,946 $ 1,158,563 $ (60,131) $ 237,299 $ 4,032,677 $ 279,975 $ 115 - $ - $ - $ 279,975 Item # 1 Attachment number 1 \nPage 1 This Page Intentionally Left Blank Item # 1 116 Attachment number 1 \nPage 1 Fiduciary Funds Fiduciary Funds are used to account for resources that are managed in a trustee capacity or as an agent for other parties or funds. Employees' Pension Fund - to account for the financial operation and condition of the major employee retirement system. Firefighters' Relief and Pension Fund - to account for the financial operation and condition of the Firefighters' Relief and Pension Plan, closed to new members in 1962, and containing 39 retired members with no active members. The Plan was fully funded effective with fiscal year 2007. Police Supplemental Pension Fund - to account for the financial operation and condition of a supplemental pension plan funded by the State for sworn police officers. Firefighters Supplemental Pension Fund - to account for the financial operation and condition of a supplemental pension plan funded by the State for firefighters. Treasurer's Escrow Agency Fund - to account for the receipt, custody, and expenditure of funds held temporarily in trust for other parties. 117 Item # 1 City of Clearwater, Florida Combining Statement of Fiduciary Net Assets Fiduciary Funds September 30, 2011 ASSETS Cash and investments Managed investment accounts, at fair value: Cash and cash equivalents Government bonds Agency bonds Domestic corporate bonds International equity securities Domestic stocks Mortgage backed bonds Asset backed securities Commodity exchange-traded funds Domestic equity mutual funds International equity mutual funds Real estate Total managed investment accounts Securities lending collateral Receivables: Interest and dividends Unsettled investment sales Securities lending earnings Due from others Total receivables Total assets LIABILITIES Accounts payable Unsettled investment purchases Obligations under securities lending Total liabilities NET ASSETS Net assets held in trust for pension benefits Attachment number 1 \nPage 1 Defined Benefit Defined Contribution Pension Trust Fund: Pension Trust Fund: Police Firefighters Employees' Firefighters Supplemental Supplemental Totals $ 781,117 $ 2,719,676 $ 2,193 $ - $ 3,502,986 37,408,464 - 595,239 555,972 38,559,675 29,280,303 - 3,094,276 532,322 32,906,901 11,176,788 3,673,369 620,096 - 15,470,253 66,834,718 - 933,199 2,841,941 70,609,858 66,784,078 - - - 66,784,078 241,368,780 - 5,874,074 1,545,572 248,788,426 66,787,964 - - 1,261,597 68,049,561 759,343 - - - 759,343 1,238,215 - - - 1,238,215 38,066,505 - 2,436,149 2,177,819 42,680,473 25,612,532 - - 1,325,122 26,937,654 24,816,012 - - - 24,816,012 610,133,702 3,673,369 13,553,033 10,240,345 637,600,449 150,576,091 - - - 150,576,091 1,963,084 51,392 46,815 51,766 2,113,057 12,540,708 - - - 12,540,708 44,292 - - - 44,292 32,696 - - - 32,696 14,580,780 51,392 46,815 51,766 14,730,753 776,071,690 6,444,437 13,602,041 10,292,111 806,410,279 798,159 - - - 798,159 20,706,584 - - - 20,706,584 150,576,091 - - - 150,576,091 172,080,834 - - - 172,080,834 $ 603,990,856 $ 6,444,437 $ 13,602,041 $ 10,292,111 $ 634,329,445 The notes to the financial statements are an integral part of this statement. 118 Item # 1 City of Clearwater, Florida Combining Statement of Changes in Fiduciary Net Assets Fiduciary Funds For the Year Ended September 30, 2011 ADDITIONS Contributions: Contributions from employer Contributions from employer - state tax Contributions from employees Total contributions Investment income: Net appreciation (depreciation) in investments fair value Interest Dividends Less investment expenses: Investment management / custodian fees Net income (loss) from investing activities Securities lending income: Gross earnings Gain on securities lending collateral Rebate paid Bankfees Net income from securities lending Total additions DEDUCTIONS Benefits and withdrawal payments: Benefits Withdrawal payments Total benefits and withdrawal payments Income (loss) before administrative expenses Administrative expenses Netincrease(decrease) Attachment number 1 \nPage 1 Defined Benefit Defined Contribution Pension Trust Funds Pension Trust Funds Police Firefighters Employees' Firefighters Supplemental Supplemental Totals $ 17,652,617 $ 12,000 6,049,656 23,714,273 - $ - $ - $ 17,652,617 - 816,513 1,134,079 1,962,592 - - - 6,049,656 816,513 1,134,079 25,664,865 (14,962,927) 4,929 (77,486) (347,875) (15,383,359) 7,661,711 254,764 173,533 205,684 8,295,692 6,596,112 - 190,706 60,847 6,847,665 (705,104) 259,693 286,753 (81,344) (240,002) 3,665,089 - 79,129 83,202 3,827,420 (4,370,193) 259,693 207,624 (164,546) (4,067,422) 497,674 - - - 497,674 1,556,260 - - - 1,556,260 131,722 - - - 131,722 (220,091) - - - (220,091) 1,965,565 - - - 1,965,565 21,309,645 259,693 1,024,137 969,533 23,563,008 29,922,846 726,918 1,652,629 612,439 32,914,832 1,052,623 - - - 1,052,623 30,975,469 726,918 1,652,629 612,439 33,967,455 (9,665,824) (467,225) (628,492) 357,094 (10,404,447) 173,685 - 18,271 9,383 201,339 (9,839,509) (467,225) (646,763) 347,711 (10,605,786) Net assets held in trust for pension benefits: Beginning of year 613,830,365 6,911,662 14,248,804 9,944,400 644,935,231 Endofyear $ 603,990,856 $ 6,444,437 $ 13,602,041 $ 10,292,111 $ 634,329,445 The notes to the financial statements are an integral part of this statement. Item # 1 119 City of Clearwater, Florida Statement of Changes in Assets and Liabilities Agency Fund For the Year Ended September 30, 2011 TREASURER'S ESCROW FUND ASSETS Cash and investments Accrued interest receivable Total Assets LIABILITIES Other miscellaneous payables: Downtown Development Board Special purpose funds Other Total Liabilities Attachment number 1 \nPage 1 Balance Balance October 1, September 30, 2010 Additions Deductions 2011 $ 427,893 449,943 454,561 $ 423,275 1,916 3,104 3,512 1,508 $ 429,809 453,047 458,073 $ 424,783 $ 314,240 451,421 455,702 $ 309,959 7,640 1,059 1,059 7,640 107,929 567 1,312 107,184 $ 429,809 453,047 458,073 $ 424,783 The notes to the financial statements are an integral part of this statement. Item # 1 120 Attachment number 1 \nPage 1 Supplementary Information Item # 1 121 Page 1 of 5 City of Clearwater, Florida Continuing Disclosure — Gas System Revenue Bonds Series 2004, 2005, and 2007 Supplementary Information The System: Attachment number 1 \nPage 1 Rates, Fees and Charges The City Council has established a schedule of rates and charges by ordinance, which includes a purchased gas cost adjustment provision allowing the City to pass-through to customers any increase or decrease in the purchased price of gas. The City is not subject to regulation by any State agency in establishing or revising its rates. Where competitive fuel sources or transportation service are available to the customer, the City Council has authorized the City Manager to enter into contract gas service rates at special rates and/or conditions as required to obtain/retain the customer load. Such contract service must meet the normal construction feasibility formula to insure profitable payback to the City. As of September 30, 2011, contract rates applied to 196 customer accounts and impacted 10.7% of total revenues. The rates charged by the System through September 30, 1996, were part of the Phase I Gas Rate Case implemented October 1, 1995, which was based on a comprehensive cost of service study performed by the Utility Advisory Services Group of the international accounting firm of Coopers & Lybrand, LLP (the "Rate Study"). This Phase I implementation resulted in an extensive overhaul of the Gas System customer rates, providing numerous classes of service and a modernized billing methodology. The new rates, effective October 1, 1996, were designed to be industry-based and responsive to the competitive energy challenges. The goal of the Rate Study was to establish rates which would be fair to all classes of customers, provide funding to implement planned expansion in both existing northern Pinellas County services area and into the newly acquired southwestern Pasco service area, and provide an adequate growth potential in return to the City of Clearwater to further offset the ad valorem tax rates (current impact is about 0.5 mills). As the result of experiences during the first seven months of the Phase I implementation, adjustments made to the Phase II rates were implemented October 1, 1996, and additional adjustments (Phase III) were implemented effective October 1, 1997. The total projected impact of both new phases of the rate case is $1.05 million, or less than 7.9% of total gas sales revenues. The rate ordinance containing the Phase II and Phase III rate changes was approved by the City Council on June 6, 1996. Gas rates for customer charges were increased effective April 1, 2005. The total estimated annual impact of this rate increase was $373,352. New rates, effective October 1, 2008, were designed to recover the costs of providing service to respective classes of customers. The goal of the "Cost of Service and Rate Study" was to establish rates which would be sufficient to meet Clearwater Gas System's total revenue requirements and reflect cost of service consideration and practical rate implementation constraints as required. �22 Item # 1 � � � Q � � Z WC C V/ � � � Q Q N � � W gQ� � � � � � � N Z Z �JO � m W W � � Q /y W � (,a' N Q ...! Q M U � � � � Q m Z � W � a W N � N l� r N �,n V � Q�/ IL O City of Clearwater, Florida Continuing Disclosure - Gas System Revenue Bonds Series 2004, 2005, and 2007 Supplementary Information � � U � U U U U ��}� G E C� Z Z O O O Z Z ZI O �I I� � o m? 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U � L o ��E m�� m` � Q Q � � E F ` L N L~O L U G p Q y 'N=O p' = 0 � U U o c m f6 � N N � l6 �O C W Q L a N � a� E m � � a 4 m v� U s m C!6 Q d C N N � !6 7 � T C a Q� � l` W �j C T = IL � 01 � l6 N � C � y ,o °� U � d � U o,� o N c E � s U Q L U LL LL ` 3 01 R U Ip E U p�", O O 0 O O C N N C O Q �� Z Z W � � F ¢�. F �� 123 Vi V3 M O � o O �- oJ � � � �3 V �� a � T � � 00 0� Vi V ff3 Vi � O o � � rn � 0 0 0 0 � � v� E» � O O o OJ � � N 0 0 0 oi � v � � a rn rn rn rn O O O� � Ef� Efj 0 N N r � � � O � H3 M Efj fA ln M N o N (") I� V �� o� H3 M tfi Vi m N o � M I� ln � � � M Vi Ef3 0 O N W N � � � M tfi Vi 0 O M W N � � � M EA V3 0 �M M � N � � O I� EA M Vj fR 0 O M W N � � � M EA EA o m Ef) V� 6� .- O 1� � � O cD °� °� � � O I� � � � � O 1� � �N rn � o � �» � � � O 1� °� °� rn � o I� f!T V3 � � O I� EA EA � � o n O O fA EJT � � O I� ° ° � � O 1� � � � � O I� °� °� � � O I� �N � � � O I� � � .�.. M � y � � � � � L � � � L � � � � o H C L O � O � L � J m a H � � LL C� O � a � � � d L N � s � E o �- x 0 3 E° z Q� N � N � � �. � � m � � _ a �L � � E m U = � c U U o 7 �i Z Attachment number 1 \nPage 1 � � � N � O O � � � N G Q � � � � O O N � � � O P M � � O O N � � � O � � � o m N O O O � � � � � om N O O � � � 0 � � � o c� N O O O � � � M � � O O N � � � O � � � � O O N m � � O � r r O m N O O N � � O � O O O � � O � � O M N O O Nr r O � � � O O N � � � O m � O O O� � n � z � Y � L N U N II � � Y � °' � j U � j > t] i cn a n Iterr�#�1 Page 3 of 5 City of Clearwater, Florida Continuing Disclosure - Gas System Revenue Bonds Series 2004, 2005, and 2007 Supplementary Information GAS SUPPLY Attachment number 1 \nPage 1 On August 1, 1990, the Federal Energy Regulatory Commission (FERC) deregulated the natural gas pipeline industry. This allows other natural gas suppliers and local distribution companies, like the City of Clearwater, to transport gas over the Florida Gas Transmission (FGT) pipelines as opposed to purchasing natural gas supply from only FGT. The two natural gas transmission companies that serve within the State of Florida are Florida Gas Transmission (FGT) and Gulfstream. Currently FGT is the sole provider of transportation service to the City. FGT is equally owned by Cross Country Energy Corp (owned by Southern Union) and Southern Natural, an EI Paso Corporation Affiliate. The City joined Florida Gas Utility (FGU) in October 2000 by Resolution 00-35. FGU is responsible for the purchase & management of the City's natural gas supply. An updated All Requirements Gas Service Agreement, which was approved by Resolution 02-02 in January 2002, required the City to purchase 100% of its supply through FGU. FGU was formed through an Interlocal Agreement among its members. The Interlocal Agreement became effective on September 1, 1989 and consisted of five municipal utilities. Over the next several years, additional electric and gas distribution utilities joined FGU, bringing its current membership to 25 entities. In addition, the City has entered into a Gas Supply & Transportation Agreement with Peoples Gas System (PGS), dated 12/02/04, to purchase natural gas to serve customers located in our Central Pasco territory, generally east of the Suncoast Parkway in Pasco County. The City received a letter from FGU Council, dated 8/31/04, granting the City permission to utilize TECO Peoples Gas as a third party gas supplier since FGU is unable and unwilling to provide gas to the City within the meaning of the provisions of Section 3(a)(i) and (ii) of the ALL Requirements Gas Service Agreement between the City and FGU. The City has two Firm Transportation Service agreements (FTS-1 & FTS-2) with FGT in order to deliver natural gas to the City's four gate stations. FGU is currently managing the City's Phase II (FTS-1) and Phase III (FTS-2) transportation capacity on a daily basis. Table 1 shows the breakdown of the City's annual gas supply entitlements with FGT. The total annual entitlement is 3,212,226 decatherms of natural gas transportation. Table 1 Breakdown of Transportation Capacity Phase II (FTS-1) Phase I II (FTS-2) Total MMBtu Per Day MMBtu Per Day MMBtu Contract Period 2/01/07 - 1/31/17 12/9/91 - 2/28/15 Per Day October 170,438 41,788 212,226 Nov-Mar 1,543,069 268,931 1,812,000 April 216,570 53,430 270,000 May-Sept 711,756 206,244 918,000 Total Annual 2,641,833 570,393 3,212,226 Item # 1 124 City of Clearwater, Florida Continuing Disclosure — Gas System Revenue Bonds Series 2004, 2005, and 2007 Supplementary Information Service Area Attachment number 1 \nPage 1 Page 4 of 5 The Clearwater Gas System (CGS) is owned and operated as an enterprise utility by the City of Clearwater. CGS operates over 830 miles of underground gas main and handles the supply and distribution of both natural and propane (LP) gas throughout northern Pinellas County and western Pasco County. As a"full service" gas utility, CGS provides gas appliance sales, installation of inside customer gas piping, domestic and commercial gas equipment service, construction and maintenance of underground gas mains and service lines, and 24-hour response to any gas emergency within the service area. CGS is regulated for safety by the Florida Public Service Commission and the Federal Department of Transportation. CGS has been serving customers in the Clearwater area for over 88 years (since 1923) when operations were begun with a manufactured gas plant operation from coal and coke. In 1959, when natural gas transmission lines were finally extended to the Florida peninsula, CGS discontinued manufacturing gas and began receiving piped natural gas from Florida Gas Transmission. Clearwater Gas System serves over 19,807 customers in a 330 square mile service territory, which includes 20 municipalities as well as the unincorporated areas of northern Pinellas County and western Pasco County. The Pinellas County service territory is 158 square miles and extends generally from Ulmerton and Walsingham Roads on the south to the Pasco County line on the north and from the Gulf of Mexico on the West to the Hillsborough County line on the east. This includes all of the Pinellas beach communities south to Redington Beach. The Pasco County service territory is 172 square miles and extends from the Gulf of Mexico on the West inland about 20 miles to just east of State Road 41 and Land O' Lakes and from the Pinellas and Hillsborough County lines on the South to generally State Road 52 on the north. The CGS service territory extends 42.3 miles from the southwestern-most to the northwestern-most points. Clearwater Gas System prides itself in being a competitive and public service-minded utility, providing safe, economical and environmentally-friendly gas, which is made in America, available in our communities for all of the homes and businesses in our service area, with special focus on the residential customers who make up 88.79% of our customer base. 125 Item # 1 Page 5 of 5 City of Clearwater, Florida Continuing Disclosure - Gas System Revenue Bonds Series 2004, 2005, and 2007 Supplementary Information Attachment number 1 \nPage 1 As of September 30, 2011 the System's active natural gas customers were located as shown in the following table: Location Meters Belleair 421 Belleair Beach 167 Belleair Bluffs 26 Belleair Shores 24 Clearwater 6,605 Dunedin 1,090 Indian Rocks Beach 95 Indian Shores 71 Largo 883 New Port Richey 316 North Redington Beach 12 Oldsmar 101 Port Richey 12 Redington Beach 57 Redington Shores 35 Safety Harbor 566 Tarpon Springs 1,426 Unincorporated Areas Pasco 2,693 Central Pasco 393 Unincorporated Areas Pinellas 2,759 Total 17,752 Percentage 2.37% 0.94% 0.15% 0.14% 37.21 % 6.14% 0.54% 0.40% 4.97% 1.78% 0.07% 0.57% 0.07% 0.32% 0.20% 3.19% 8.03% 15.17% 2.21 % 15.54% 100.00% The following table shows the five largest interruptible customers by peak monthly consumption and the percent of the System's revenues derived from such customers during the 12 months ending September 30, 2011: Customer Name Morton Plant Hospital Metal Industries Ajax Paving Industries Angelica Textile Service Mease Hospital Peak Monthly Therms 133,437 78,579 76,454 55,179 65,437 % of Gross Revenues 3.92% 1.89% 1.85% 1.78% 1.64% The following table shows the breakdown of the System's customers by category as well as the volume of gas sold and the sales revenues generated by each category for the year ended September 30, 2011: Interruptible Residential Commercial Interruptible Residential Commercial Totals Average No. Customers 15 15,569 2,110 Therms 5,290,440 3,538,490 12,509,250 21, 338,180 126 Gas Gas Volume Sales 24.79% 15.97% 16.58% 23.77% 58.62% 60.25% Revenues $ 4,837,766 7,199,693 18,246,008 $ 30,283,467 Item # 1 Attachment number 1 \nPage 1 Page 1 of 3 City of Clearwater, Florida Continuing Disclosure — Water and Sewer Revenue Refunding Bonds Series 2003, 2009B and 2011; and Revenue Bonds Series 2002, 2006, and 2009A Supplementary Information Water System: FY 2006 2007 2008 2009 2010 2011 Historical Financial Information Source and Volume of Water Pumped (in million gallons per day, averaged over the fiscal year) Citv Wells 4.093 3.570 3.075 3.738 4.105 4.946 County 9.999 9.090 8.844 7.781 6.820 6.371 Historical Growth in Number of Water Customers (all figures are as of September of the year indicated) Year 2006 2007 2008 2009 2010 2011 Water Customers 40,467 40,407 40,131 39,935 39,971 41,391 Ten Largest Water Customers Fiscal Year Ending September 30, 2011 Name of User 1. City of Clearwater 2. Church of Scientology FSO Inc. 3. Morton Plant Hospital 4. Pinellas County Schools 5. IMT-Capital Macarthur Park Aptmnts LLC 6. Crystal Beach Capital LLC 7. Pinnacle Management Corp. 8. Clearwater Housing Authority 9. Sandpearl Resort LLC 10. Brenntag Mid-South, Inc. Water Used (in 100 Cubic Feet) 75,745 109,925 61,500 35,455 38,436 31,995 39,246 35,468 30,476 25,947 Total 14.092 12.660 11.919 11.519 10.760 11.317 Revenues Produced $ 695,065 547,100 382,256 309,101 200,469 192,166 187,477 169,246 153,133 143,935 Total 484,193 $ 2,979,946 Item # 1 127 Attachment number 1 \nPage 1� Page 2 of 3 City of Clearwater, Florida Continuing Disclosure — Water and Sewer Revenue Refunding Bonds Series 2003, 2009B and 2011; and Revenue Bonds Series 2002, 2006, and 2009A Supplementary Information Sewer System: Averaqe Sewaqe Flow Historical Growth in Number of Sewer Customers (as of September of the year indicated) Fiscal Year 2006 2007 2008 2009 2010 2011 Annual Ave. Daily Flow In MGD 13.8 13.6 14.0 13.6 14.3 14.8 Fiscal Year 2006 2007 2008 2009 2010 2011 Ten Largest Sewer Customers Fiscal Year Ending September 30, 2011 Name of User 1. Church of Scientology 2. Pinellas County Schools 3. Morton Plant Hospital 4. City of Clearwater 5. Pinnacle Management Corp 6. IMT-Capital Macarthur Park Aptmnts LLC 7. Clearwater Housing Authority 8. Crystal Beach Capital LLC 9. Publix Supermarkets 10. Bre/Clearwater Owner LLC Sewer Used (in 100 Cubic Feet) 98,502 34,709 55,945 32,110 39,246 38,436 35,079 31,995 11,197 30,148 �� • Rates, Fees And Charqes Sewer Customers 33,279 33,255 33,146 33,084 33,041 33,063 Revenues Produced $ 549,221 408, 302 405,557 371,119 210,234 205,852 203,505 195,690 176,047 174,304 :•• : The City uses a three-tiered rate structure for water and sewer usage. The base rate includes a minimum usage for residential and nonresidential water rates. Any usage over the minimum is billed at one rate per 1,000 gallons up to a designated level and at a second rate for usage over that level. For irrigation, there is a base rate, with no minimum, and a charge per 1,000 gallons of water usage up to a designated level and a higher charge for usage over that amount. The sewer base rate includes a minimum usage and a fixed charge per 1,000 gallons of water usage over the basic allowance. The minimum usage and second tier usage level vary with the size of the meters. For fiscal year 2011 there were no changes to the three-tiered rate structure for water or sewer usage. Item # 1 128 Attachment number 1 \nPage 1� Page 3 of 3 City of Clearwater, Florida Continuing Disclosure - Water and Sewer Revenue Refunding Bonds Series 2003, 2009B and 2011; and Revenue Bonds Series 2002, 2006, and 2009A Supplementary Information Residential and October 1, October 1, October 1, October 1, Nonresidential Water Rates 2007 2008 2009 2010 Size of Meter Gallons Minimum- Under 1 inch 12.75 13.65 14.58 15.60 1 inch 29.75 31.85 34.02 36.40 1.5 inch 425.00 455.00 486.00 520.00 2 inch 99025 1,060.15 1,132.38 1,211.60 3 or 2 inch manifold 1,525.75 1,633.45 1,744.74 1,866.80 4 inch 2,936.75 3,144.05 3,358.26 3,593.20 6 inch 7,543.75 8,076.25 8,626.50 9,230.00 8 inch 12,750.00 13,650.00 14,580.00 15,600.00 Additional charges are assessed for usage in excess of designated minimums. Rates for Irriqation (Lawn) Meters October 1, October 1, October 1, October 1, 2007 2008 2009 2010 Size of Meter Minimum- Under 1 inch 1 inch 1.5 inch 2 inch 3 or 2 inch manifold 4 inch 6 inch Sewer Rates Size of Meter Minimum- Under 1 inch 1 inch 1.5 inch 2 inch 3 or 2 inch manifold 4 inch 6 inch 8 inch Per 1,000 gallons of water used over that allowed in minimum 4.54 13.63 68.17 190.86 377.19 727.13 2,195.00 Gallons 4.86 14.58 72.94 200.22 403.59 778.03 2,348.65 5.20 15.60 78.05 218.52 431.84 832.49 2,513.06 5.56 16.69 83.51 233.82 462.07 890.76 2,688.97 October 1, 2011 16.30 38.04 543.40 1,266.12 1,950.81 3,754.89 9,645.35 16,302.00 October 1, 2011 5.81 17.44 8727 244.34 482.86 930.84 2,809.97 October 1, October 1, October 1, October 1, October 1 2007 2008 2009 2010 2010 17.52 40.88 584.00 1, 360.72 2,096.56 4,035.44 10, 366.00 17, 520.00 5.84 Gallons 18.75 43.75 625.00 1,456.25 2,243.75 4, 318.75 11,093.75 18, 750.00 6.25 20.07 46.83 669.00 1,558.77 2,401.71 4,622.79 11,874.75 20,070.00 ..� 21.48 50.12 716.00 1,668.28 2, 570.44 4,947.56 12, 709.00 21,480.00 7.16 22.44 52.36 748.00 1,742.84 2,685.32 5,168.68 13,277.00 22,440.00 7.48 Additional Indebtedness Additional indebtedness was incurred for capital improvements to the water and sewer systems or for the lease purchase of capital equipment in the amount of $144,285. The issuance of the Series 2011 revenue refunding bonds to partially refund the 2002 revenue bonds resulted in a net decrease to indebtedness of $1,520,000. Item # 1 129 Attachment number 1 \nPage 1� City of Clearwater, Florida Continuing Disclosure — Stormwater System Revenue Bonds Series 2002, 2004, and 2005 Supplementary Information Rates, Fees, and Charqes The City uses a measurement of one equivalent residential unit or ERU as the basis for the stormwater management utility fee. 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 one-year period beginning October 1, 2012. The monthly rates are as follows: Effective Date January 1, 1991 October 1, 1998 October 1, 1999 October 1, 2000 October 1, 2001 January 1, 2002 October 1, 2002 October 1, 2003 October 1, 2004 October 1, 2005 October 1, 2006 October 1, 2007 October 1, 2008 October 1, 2009 October 1, 2010 October 1, 2011 October 1, 2012 Rate Per ERU $3.00 $4.00 $4.17 $4.35 $4.54 $6.13 $7.16 $8.01 $8.65 $9.35 $9.71 $10.51 $11.14 $11.80 $12.51 $13.04 $13.59 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. HISTORICAL NET REVENUES Net Operating Revenues (Excluding Depreciation) Interest Income and other Non- Operating Revenues (Expenses) Total Net Revenues Maximum Annual Debt Service Coverage Fiscal Years Ended September 30, 2007 2008 2009 2010 2011 $5,688,934 608,038 $6,296,972 $2,889,994 2.19 130 $5,681,465 $5,750,323 $7,471,323 $7,247,625 550,935 787,426 1,045,752 491,646 $6,232,400 $6,537,749 $8,517,075 $7,739,271 $2,889,994 $2,889,994 $2,889,994 $2,889,994 2.16 2.27 2.95 2.68 Item # 1 Attachment number 1 \nPage 1� City of Clearwater, Florida Fire Services Program Supplementary Information Pursuant to agreements between the City of Clearwater, the Pinellas County Fire Authority and the Pinellas County Emergency Medical Services Authority, the City has provided fire and emergency medical services to the respective authorities. With respect to fire services, the services are provided for the benefit of properties located outside the corporate limits of the City, but within a designated service area. Emergency medical services are provided for the benefit of persons residing both inside and outside the corporate limits of the City, based on the Authority's nearest unit dispatch policy. With respect to the Fire Services Program, a budget was prepared by Fire Department personnel covering proposed expenditures for fiscal year ending September 30, 2011, for the Fire Department as a whole. Since the funding for the Emergency Medical Services Program is based on the level fixed in prior years, the Fire Services Program budget is essentially the residual obtained by deducting the approved level of funding for the Emergency Medical Services Program from the budgeted amounts included in the total Fire Department budget. This budget was submitted to, and duly approved by, the relevant Authority prior to the commencement of the fiscal year. Income received from Pinellas County Fire Protection Authority and valid program expenditures for the Fire Services Program for the fiscal year ended September 30, 2011 are summarized below. Total Revenue Received from PinellasCounty Fire Protection Authority $ 2,152,918 Total Fire Service F�cpendituresfor Fiscal Year Ended September 30, 2011 $ 18,072,247 The Fire ServicesProgram doesnot currently utilize an equipment reserve. Item # 1 131 Attachment number 1 \nPage 1� This Page Intentionally Left Blank Item # 1 132 Attachment number 1 \nPage 1� CITY OF CLEARWATER, FLORIDA STATISTICAL SECTION This section of the City's CAFR presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the City's overall financial health. This information has not been audited by the independent auditor. Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being changed over time. Schedule 1 Schedule 2 Schedule 2a Schedule 3 Schedule 4 Revenue Capacity Net Assets by Component Changes in Net Assets Program Revenues by Function/Program Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds These schedules contain information to help the reader assess the City's significant local revenue, the property tax. Schedule 5 Schedule 6 Schedule 7 Schedule 8a Schedule 8b Debt Capacity Assessed Value and Estimated Actual Value of Taxable Property Direct and Overlapping Property Tax Rates Property Tax Levies and Collections Principal Real Property Taxpayers Principal Personal Property Taxpayers These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt, and the City's ability to issue additional debt in the future. Schedule 9 Schedule 10 Schedule 11 Schedule 12 Schedule 13 Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Information Pledged-Revenue Coverage 133 Item # 1 CITY OF CLEARWATER. FLORIDA STATISTICAL SECTION (CONTINUED) Economic and Demographic Information These schedules offer economic and demographic indicators to help the reader understand the environment within which the City's financial activities take place. Schedule 14 Schedule 15 Operating Information Demographic and Economic Statistics Principal Employers Attachment number 1 \nPage 1� These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Schedule 16 Schedule 17 Schedule 18 Full-time Equivalent City Government Employees by Function/Program Operating Indicators by Function/Program Capital Assets Statistics by Function/Program Sources: Unless otherwise noted, the information in this section is derived from the City's comprehensive annual financial reports for the relevant year. The City implemented the new reporting model, GASB 34, in the fiscal year ending September 30, 2002. Item # 1 134 T N 7 � d � U � � � � � � �i � � C O � LL � } � L d O R R f�2'6 U � `�- C � l� y NVl � N �+ d lC U N H � � y � Q R � w � J V U Z :.°. OIN OI O N �I O O N �I O O N N a C n � 7 NI i' � a-� 16 C N N LL = OI � O O N � � �I O O N �I 0 0 N MI O O N NI O O N C N � C G7 O � lCE G a` N .j .� N C N C N > 0 � N �C7 � N � V � � � N � I� I� f� � V N � � M H> (-l3 M N M O� � � W O O CO N O � � M N N � � M ER EA � W � W � � � � O N M CO N � O 00 (�> (i> � O � � M O N (O W m V � N � M Ef3 Ef3 � M N � rvcflco O � N O� Ln � W V O V O M � � � O M N V N N � N O M 00 V O N � M Ef3 EA O CO M N u) c0 r rn M � N O V M � N � � � M lf7 O CO I� � � � ri o � ui � � � N (�> H} LC) � � M M 6� � O � � � e- � � N ff-} EH O �C7 � d � � � � � I� O 00 O M I� � � � � � ER Ef3 a � � � � � N N � � o `� � N � C � U! � N �, y �> � U � � Q � N � U � .� � � � -O � U � N U .`-� N L � � N N N > � C � � � � O � M 00 I� W � O O O t�f7 Ln ('�') L� � m EA �3 V N V O O M O V I� M N N � V (O cO (O V N m � � �} N M V � � V N M � � d) � � C7 M OJ Lf7 I� CO CO O O � M V +- M � N f!> �}} V I� N V N 1� O O � ln V V CO M W N � � W V � t� � O � N � � r � � M � N EA Eg (O V �f7 t� � u� �n m � M (O V (O L() � M V M I� N E» �r � a0 M Lf) CO O N � � r � � � � � � m � N E13 ER V M � c0 W V I� O � M O O O M 6� N � V� V� � N I� W h W V O comwrn � � � N 64 d3 � � � a � <6 N d d � N o � N � C � N � N � N �> N � � � U �, � (E 'U � Q f6 U -Q N C N � � -� � U � � U C N � N � 4 � > � C � � � N N — m � 135 � M N O �fJ � N (O V N O I� I� N CO � V � N � dl fl3 V � a�0 V I� O V N V � N � K3 K3 � � � O n CO O O f� aD � V (O M � N � Ef-} (A � � N O � � � � � W I� � � � � � EA � K3 N � CO N M C'7 N 6� � f� N oJ M � � (O � � N W � � N N CO N � CO I� M M ~ � lf) K3 K3 00 N � � � O M M � O V V N � � Ln � � � � CO O I� O CO I� (O O� O� V o�o�� N � N � (i3 f>i � N 00 � M Lf) (O ln 00 M M l!) 00 I� M � N � � V E!-} H3 � I� CO N C�9 ~ � r � � � O � � EA Ef3 a � � � � � � � O N � N C � N � N � � � � � � � � C C . d Q j � � O U � i � � j � � U i � � U 'i � N i � � � � N � Q (p > N C � � � � � a` � �m�a ap U !-' N N �- � � U N x � v� � � N Q . � O '� � '- U U � � N d � � a T N >, O C .� 3 � � � O � y � O � � V � G p� � O � � - � O � � - M � '� � � � � Q M N � O N N Q C " � p .. � N '�p O N � U � N i ` � in 3 c � o�m U � C O +' � 3 N � p � � ,O � � i C N N 3 c E � o � � � � � � C �° �6 m a� � '6 � Q �.o� o � o w c � � c N � N N � �Q � � o � O d C � � N U ' C i � U � N C � � O C C (6 � 'N � > N � U N � � Q � O � C � � O � � � p � -°o 0 m - �� > � p c � _ d ,C '� E � � N Q @ � � � ff3 N U �-G, � � O V � O � � O ' N � � "6 N � @ � �i O � N O � � N � � _ U U G � N V� Q (O � LL = O Ui �o E N (6 Attachment number 1 \nPage 1� N O O N � m � N U w c v � � � � m Q i.� � � N � N Q .� C N � C O .� E `o .� � � U U N � O Q � O � � � a � U N � Y 0 Z Item # 1 N d 3 'a � t V � R � � � •L � L C � � � � � Q � C� L M d � � f23 Z y � G = LL y � .y C y �.i a1 H � O c0 y � s � � r V J V U � :a M O G1 � R a � � O N O � O N rn O O N W O O N N c n (p O � � N } t ++ f6 � V '� y y LL C � 7 O p � N v �I O O N � O O N M O O N N O O N � � .� U N � U1 N G7 � y � C W U' W� C�O � � W O� t� •- � CO N � c-- CO N M CO CO M M M O � tn c- Cp c- M Ch � CO f� O Lfy 1� O CO N Cfl ln d' CO ln 6) � d' M � � � � � � � � tn O) r!' M� O � O •- CO c- M � � lf7 f� (O � d' N O O� � I� Cfl O) N O V' � Cfl ln � N l!') �� i� 00 N M cY �l' � M CO � t� •- Cfl N N ER N N O N� O N 00 CO �i' 00 M N M �I' � 6) M M� 1� M Lf') � CO �(O 'V' Cfl N N �t f� � O .- Cfl .- M d' � O� Cfl i� V N 00 N 00 CO Cfl M N 6) 'd' CI' t� d' M Cfl O CO V CO N N M 00 M M M N N t� � Cfl �- M M ER M W CO 00 � Cfl M O I� � O) N d' M I� tn N�- O 00 M� CO M<- �O M � M N N� Cfl M N � � � � � � � � � 6� V c0 O M�� CO (� �- CO N� Ch CO N N � � N � N V� O lf') � N M tfy f� � c0 N � O 1� �(O Lf� N Lf') � O CO � N N M � M O •- � �- N E� M 6) � 00 CO � V V' W tf7 N i� f� N f� � 00 (O M �Y N o0 N� O N � .- f� N 00 � N M O � V N O E!3 V M CO N� M Lfl M CO CO (O � W � N� N 6) t� •- lf) N O M N N CO � �I' � N � � � N � C N Q X N N � � C C � .� � � � N � � N � � � � � O � (4 i � � > U � � � � T.� p � . p � � � � � V � � C C � � � � �� t� (0 � N � .0 .� fl' � m � � O C � � � L � �U � � � cS3 C�da.�w2U- o � 136 O� V��(O Lf'> i� � I� � Lf) V M� M � CO I� tf) O c�i 00 N O� � ln CO � CO ��� N N V M CO N � � � O 00 I� 6� W 00 N V M N O M�(O a0 O OO t� N N Cfl � h� M M O� � I� � ln O N M V' lf) C`i � � O � � 00 � M N � � N� O I� � N �1' tn d' t� � N 00 f� � O f� I� ch d' �I' � V' � N�' M N Lfy N � � �� Cfl O I� CO f� O M �� M I� O 6) � N O N O� O O N CO �� a0 N� CO � M� M N � M � � O� N�� CO N 1� � rl' I� �(O � CO a0 N CO a0 � � 00 M M d' Cfl ' � M CO � N V M N V C'7 � � �' M c+� � Mo � � 0� � � O O � M � � CO ' � � CO � N �' M N N�l' � c0 V O CO N � � CO h O � � � OD M CO h Lf') � M CO Ln ' � M� N N M M N � N Cfl O 00 6� 6� I� a0 O� T � � a0 V � � O N M N N CO � ' ���� N M M N V N .- � � N N � O � � N Ch M N CO CO � CO N a0 (O N O � O N N�' O CO � f� N M M N V N � O�' a0 � d' � CO tn d' f� I� 6� � 00 � M i� �t � M �t O� M O I� ' f� c'� �� N N M N Ch N � � � � C � d X � � (0 N C :� T � .> N �, � U - � f6 > T T � O � � 3 = = � � � a � � '� �� � � N � � � � � Q � T � � � � � � � N = � � � C � �L � '� til -�i 3� N O Q�� N � � '6 � V .L �� Y � � Q j > � (n (n � � Q d = (� Q m r W O � � � N � O � W � N � ti O tfy � N K3 tfy � M O n N E� � N O O � N En O � � M N � � � V C'7 N ER � ti O ti N vi � N O O N f!3 � N � O � � � N � C N Q X N C N � i � > O � � N � .Q � 0 � Attachment number 1 \nPage 1� Item # 1 � � 7 C C O v N � 7 � G1 t V � f0 � � � � r •L � L C O � � � LL Q � t�1 � w y R � � Z y 0 � � � y U �H � �t R � � C) J v U � :4 M O N N � R a OIN OI O N Q>I O O N �I O O N � � � � � rn � � 00 6� .— 00 � �� O I� O 6� � 00 N O N M � � � V Cfl � f� �' V �� N 00 CO M ln � � Cfl �� M 00 ' Ln M 00 W � I� � � N V E/3 � �� f� � V N O� N f� ��' � � M� Cfl f� Cfl N N M N ' M� � a0 O � 00 M � N � �' Ef3 � M �� 00 00 M N 00 M O�� O � N M O Cfl 00 � � � M � Cfl � � � � f� M N � �3 I N � O� N CO O � 0�0 � � � ln �.— N � � ln Cfl I� � ` y OI � 00 � � .— O 3 O � N 0 N � � Ef3 N C V '� fA N 00 N O� O CO � f� jy � N N� M � 00 O N Cfl N � N � N ��' N O OI �' 00 � f� M � � O M :6 fV � Ln O O� M� M M 00 � 00 O � CO CO � I� Lf� �I Ln ��— � I� N O CO ° �� �co�ri � O N � N C4 � f� �' � � M Cfl �' f� � 00 � O� O �I � f� ' M CO ° � r� v co c�i �ci O M N E� C�O � 0�0 N O� � 6� � O � MI N O� •— � � N N N � � I� M 00 � M O N ff3 I� M 6� � O� I� Ln ��� LC') N I� N 00 � NI I� I� c-- ' O N I� 00 � .— I� M CO � OMO O � N Ef3 O O� N LC') f� I� I� � M O N �-- I� O N M a0 M I� ln N M� � 00 � N N � M N CO M � N � 6� Cfl 6� � M� � � CO � M � N N I� �'C' N 00 O�' f� O N O N N 6� CO M��� OD CO � 00 CO �t I� CO O M M� O f� � M 00 V N V �i' � � W I� M I� CO I� O M( CO I� �t � N M � O V� 00 c � O a0 �Y N O N O Cfl c M��� N V' lp � f Ln M � N N O � a0 I� Cfl N M c � O I� 6� N c0 M oO c ��� I� � f� N � O ' c `N �' � � M V �i' N � 00 O O 0�0 O N N Lf) � 00 � M 6� C'7 00 N CJ N CO 00 ' ( O 00 � � M� � � ( � M �— � O Cfl 00 O� M N �( Lf') CO M'd' I� 00 �' Lf') f � 00 � I� O N� 00 ' c � M c0 � N �t �Y � c � � � O CO �� 00 N O Ln � �( ch � Ln M f� I� N I� CO � • Ln f� CO O N M � � ( � M M M C4 � N f� 00 �' O� � O � � C�9 O � �Y CO ' �' � M M Cfl � N M V' � � �' M O CO CO 00 N�� O CO � f N O 6� �� O� •— O CO ' � O� O� 00 N N � � c M M � O O I� lf7 � I� N M O� � CO f� M� 6) I� I� 00 O I� .— I� c— O 00 � � I� CO CO CO N N � � M N W � N O � � � O � � O � � � N N W O V O � � � � �' � O O � N Lf ) M � � O � N O Attachment number 1 \nPage 1� N � N � � � �' Lf') � � � EA O N O � EA � O O M � Ef? N � � � � EA � �' O O W � � � � � � � � � Ef3 � � � � � � � � E� � � C C O � O � . � . � � O �p � O a i � fn �� �L 7 Vl �p C C C� N �' � C� N � � N O O �� .> � � � .� c � � � o �� o�� � "'�� �,�, � `o-°c ° � E y .� E a c • � � � � � � 3 E � � �6 � � � y � � � ._ o � .� � � c �o �n > '� � �� �� � � _ � � a �' � �n > . � m � a� c � � Y � � � t�/l � � � � V � C N � N c � c� 'O � �v�i � � �+ N �? 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H w= U � d �'� N' LL C� m m�� o o�� o V u°�i � mdtn�UO�J �U� �� m QwU � U U>.c ml-Ht�JJada m � d o o x o x a.- o o d� �r- f-wF- w O� r z o 141 Attachment number 1 \nPage 1 � C O N C > X H N � 3 U � N (`6 C J "6 � C a � O N N LL � N � w ' .- O O �N N � � U � ,�p C ° � U Q � > U U C � L w r � � Item # 1 � m � '� a� t C) � � N a 0 a` N � � x m H � O � � � 7 f/1 i O to � � li. � } O � ia � °� � � o � Q � N � LL N N C f0 U � � o w O • � w ;� w —� c U -o " c <6 G7 3 > � N N N d y y Q � o m a �a d 3 �� �a > o 0 0 0 0 0 0 0 0 0 N O O O O O O O O O O Gf d C R � � � � � � � � l� � N 7 G7 7 00 00 00 00 00 OD 00 00 00 00 y � i a�aa y _ G� N V V � � � � � O c0 lC N N N V c0 CO c0 c0 V I� V � 7 � 7 � a0 f� aD I� M lf') f� lf') £ V X 16 c0 00 I� � � � 6� M N �y a F� CO h I� 00 O � � � O O) W � N O O O O o0 I� V O O lC V J� M M M M M 00 I� ln ln lf) � i � O � � � � O I� N � � lfJ f� f� h I� N CO I� 0 � � � �i � � V V � � CO o0 � I� � � O N O y a V O N r N N I� � V V � N o0 ln M o0 O CO o0 O O CO �� 1yA � W O 6� c0 � � 7 (O N (O p K 4) jp c0 � c0 d_ c0 c0 ao a0 H /C y� � c0 c0 I� 00 O O o0 I� F Q � EfT � lf� 00 M O) N I� c0 I� fl. T 6) 6� (O O V N M � � CO £ V N I� M c`� � M Vl d y � 00 M � N I� 00 � Iq X Q � N O N V N O lf) I� f� JW � � 00 � O N M O) 00 c0 x � N N N N N N ,� a � � � G a � � M I� O M 6� I� 00 O) l0 y 16 O 1� N f� N O N I� O f� ..�. � N c0 c0 O I� I� N y (A (q � L c� N CO d' � CO 6� N O h y N U V I� � N c0 I� c0 I� � V J E d � �— � N N � o � = Q 0 � L s °f Q O ° a > c r NN Q L a a` c �a c�° � a�i L C 7 C � C7 tC = O 7 O N a ; � c � Gf y l0 > y �L � d � Iq y Q N � Q � O = a` � �L L' 47 N £ Q £ O o a U l7 � C � d � � Q y O � a` V � y } LL � 6� (O 6� lI� 00 M (O 6� V 00 V M CO I� 00 lf� CO �h M I� M c0 V O� (O N o0 ch CO M N O I� N O) Ln N � � co c� n co � ao rn � � o rn a`�o d�- o 0 0�o c°o o�-� v ln ln 00 I� � M M � � O � 6i (O V � I� O � I� O 6� N O O M � � � M � � � � � � � � � � � M O (O M O) V M N V 0o r W co c� c� W � ao 6� CO V N 7 c0 oO o0 00 �n ao ri rn rn o co co rn � 00 O N � O o0 � � � O O � � � � � � � � 6) N N o0 � I� I� O M � I� lf� N M oD � V lf7 N � 00 00 � O � � O) M � � � (O M o0 I� N � N 6� O M � f� 00 6� 00 c0 � I� � N V f� N c`'� M N M 6�i W cfl CO CO V � � 7 W I� O I� V N V � M c0 M M V � I� 6� N M M M O � � �— .— � N N N N N � V I� M V O N O) h CO 6� 6� CO M lfJ W � M �h 00 (O 00 O) I� � 00 N N O M M � f� O) lfi M W d� V N N c0 � (O c0 c0 c0 N O � M � M � O V � c0 c0 00 O 6i o0 I� � N M 7 � CO I� 00 O) O O O O O O O O O O O O O O O O O O O N N N N N N N N N N 142 C O .Q � N X � N � � N � � � N N � p o U _ � o� � � � .� Q � a �� � �n N N "O � � � � �' U O� nd �� a�i E r � � N Q c O � Q � m � � � w � � � E c o m = U O � w � N � � � c0 U � � U p_ � a� c .L.. � Q � � v�i n m a m � c n o N d � U O � � � ? c m � > � a c a� � N O � � � N N � "6 N > .L.. 0 n� �ri � � M M � � � � 3 � � � � 7 L � N � �n � � "O U O � LL r a a� 7 � > � � N N N O 0 O O V7 a� n m � N � Attachment number 1 \nPage 1 Item # 1 Attachment number 1 \nPage 1 Schedule 6 City of Clearwater, Florida Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $1,000 of assessed value) City Direct Rates Overlapping Rates Pinellas Pinellas Emergency Downtown Fiscal GOB Debt Total Pinellas County Transit Medical Other Development Year Operating Service Direct County Schools District Services Districts Board a 2002 5.5032 0.0000 5.5032 6.1410 8.4870 0.6501 0.6600 1.6562 1.0000 2003 5.7530 0.0000 5.7530 6.1410 8.4490 0.6319 0.6600 1.6562 1.0000 2004 5.7530 0.0000 5.7530 6.1410 8.2430 0.6319 0.6600 1.6562 1.0000 2005 5.7530 0.0000 5.7530 6.1410 8.1220 0.6377 0.6600 1.6557 1.0000 2006 5.7530 0.0000 5.7530 6.1410 8.3900 0.6377 0.6600 1.6555 1.0000 2007 52088 0.0000 5.2088 5.4700 8.2100 0.6074 0.6300 1.6378 1.0000 2008 4.6777 0.0000 4.6777 4.8730 7.7310 0.5601 0.5832 1.5121 0.9651 2009 4.7254 0.0000 4.7254 4.8108 8.0610 0.5601 0.5832 1.5551 0.9651 2010 5.1550 0.0000 5.1550 4.8108 8.3460 0.5601 0.5832 1.5106 0.9651 2011 5.1550 0.0000 5.1550 4.8730 8.3400 0.5601 0.5832 1.4410 b 0.9651 Source: Pinellas County Property Appraiser a A separate taxing district established by referendum which affects only downtown properties. b"Other" includes Pinellas County Planning Council 0.0125; Juvenile Welfare Board 0.7915; SW Florida Water Management District 0.3770; Pinellas Anclote River Basin 0.2600. Item # 1 143 Schedule 7 City of Clearwater, Florida Property Tax Levies and Collections Last Ten Fiscal Years Attachment number 1 \nPage 1 Collected within the Fiscal Year of the Levy Total Collections to Date Collections in Fiscal Taxes Levied for Percentage Subsequent Percentage Year the Fiscal Year Amount of Levy Years Amount of Levy 2002 $ 31,303,900 $ 31,204,025 99.68 $ 91,548 $ 31,295,573 99.97 2003 35,153,114 35,038,555 99.67 94,574 35,133,129 99.94 2004 38,430,718 38,277,689 99.60 124,999 38,402,688 99.93 2005 43,001,524 42,905,336 99.78 118,601 43,023,937 100.05 2006 49,719,539 49,598,439 99.76 48,222 49,646,661 99.85 2007 55,514,622 55,423,836 99.84 131,471 55,555,307 100.07 2008 52,134,689 51,926,581 99.60 173,529 52,100,110 99.93 2009 48,093,238 47,964,265 99.73 184,499 48,148,764 100.12 2010 45,553,661 43,912,287 96.40 126,862 44,039,149 96.68 2011 40,551,363 39,163,100 96.58 - 39,163,100 96.58 Note 1: Discounts are allowed for early payment: 4% for November, 3% for December, 2% for January, and 1% for February. No discount is allowed for payment in March. Penalties are assessed beginning in April. Note 2: The County Tax Collector does not allocate delinquent taxes collected by the original tax year levied. Consequently all collections of delinquent taxes are applied to the immediately prior tax year and, as a result, the total collections-to-date percentage of the tax levy-to-date shown above may be greater than 100°/o of the tax levy for a given year. Item # 1 144 Taxpaver REAL PROPERTY Bellweather Prop. LP Ltd. Taylor, John S. III Waters Edge One LLC Centro NP Clearwater Mall Sand Key Association Ltd. Sandpearl Resort LLC Standard Grand Reserve LLC ZOM Bayside Arbors Ltd. Weingarten Nostat Inc. Duff, Andrew R Tre California State Teachers Excel Realty Trust Inc Branch Sunset Assoc, LTD Clearwater Land Co. St Joe Co Northwood Plaza Total City of Clearwater, Florida Principal Real Property Taxpayers Current Year and Nine Years Ago 2011 Taxable Assessed Value Rank $ 119,557,610 1 42,685,000 2 39,852,324 3 37,037,311 4 36,500,000 5 34,835,916 6 31,000,000 7 27,162,890 8 25,674,800 9 25,500,000 10 $ 419,805,851 Source: Pinellas County Property Appraiser Percentage of Total City Taxable Assessed Value 1.37°/a 0.49% 0.46% 0.42% 0.42% 0.40% 0.35% 0.31 °/a 0.29% 0.29% 145 4.80% Attachment number 1 \nPage 1 Schedule 8a 2002 Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value $ 89,035,400 1 1.24% 26,993,400 3 0.38% 23,485,800 7 0.33% 19,140,700 10 0.27% 27,543,800 2 25,084,500 4 24,959,200 5 23,813,600 6 23,325,100 8 22,685,800 9 $ 306,067,300 0.38% 0.35% 0.35% 0.33% 0.33% 0.32% 4.27% Item # 1 Schedule 8b Taxpaver PERSONAL PROPERTY Progress Energy (1) Verizon Florida LLC (2) Bright House Networks LLC (3) Publix Super Market Monin Inc Instrument Transformers Sandpearl Resort LLC Hilton Clearwater Beach Resort Florida Gas Transmission Bausch & Lomb Inc GTE Americast TW Entertainment Advance/N American Tool & Mold, Inc. Adam's Mark Sheraton Sand Key City of Clearwater, Florida Principal Personal Property Taxpayers Current Year and Nine Years Ago Taxable Assessed Value $ 73,077,158 55,551,272 15,845,948 11,168,220 7,936,032 7,651,786 5,872,397 5,608,606 4,788,895 4,468,863 2011 Rank 1 2 3 4 5 6 7 8 9 10 Percentage of Total City Taxable Assessed Value 14.60% 11.10% 3.17% 2.23% 1.59°/a 1.53% 1.17% 1.12% 0.96% Taxable Assessed Value $ 50,840,960 91,755,880 13,130, 500 2002 Rank 3 1 4 5,656,530 5 0.89% 4,498,760 55,287,090 3,726,020 3,462,840 3,351,170 3,220,670 Total $ 191,969,177 38.35% $ 234,930,420 Notes: (1) Progress Energy was Florida Power in 2002 (2) Verizon Florida, Inc. was GTE in 2002 (3) Bright House Networks was Time Warner Entertainment in 2002 Source: Pinellas County Property Appraiser 146 6 2 7 8 9 10 Attachment number 1 \nPage 1 Percentage of Total City Taxable Assessed Value 8.54°/a 15.40% 2.20°/a 0.95% 0.76% 9.28% 0.63% 0.58% 0.56% 0.54% 39.44 % Item # 1 � N 7 � N i v N � a> a a ca � L � � Q 'L 'C i r+ O � � � L� Q � � � � � � � � V y N � C LL C :� !6 � � �.i a'' � 7 3 O p � N � � O J � V 0 h � '+� � � 3 � O � ..�.r �6 N @ d � N U � � R o � � a o � U a o � c �' N � � C H '� � a > 0 � N N ... d 'Q N � @ U � � � U � .Z��, � � � � -o U � m ,p X 7 F d � � N � N 3 c 'o E > O o � m � N � N N C '6 (6 N G � � m � 3 � � � N � C -6 N C � N m > � �N N 'Q N m `4 U � � � C � N � O � J � � � N C � '� �N � � m _ � � �U � 3 i m � > � i C lL � N . > � � � C X � � � N � C 'B t� N � N > O �p � m � � � � U � .� � N � � � U �' m � � a� c � .o y a� m � c o� o � � m O m � N }LL co o � o o ao co v �n M M (O V o0 M o0 N N (O � V V M V' M N I� �IJ M N N N N N N N N N N 0 0 0 0 0 0 0 0 0 0 rn � � rn � � � � � � � � � � � � � � � � M O h N I� � V � lCl 00 CO f� N N � a0 V CO O M f� M V N � I� � f� CO 1� � I� � �(7 � I� � N N N N N N N N N N � � h � M O C�O M C�O �M O h O M M � M � CO CO 00 N N N � � EJ3 o a°o u`�i N m m � � � � � � � Ef3 O �f7 �(7 � O � O O O O (O M � ln M d' M a0 O o0 � W � � � � � � � � � � V M N O � M M V �t �t �F' �t V � M � 0 0 0 �n o �n o o � o M O V � M V I� W O (O O O I� � O N � (O O) oO o0 00 I� CO M 00 � CO � N N N N N N � � �n o d- �n o � o �n O � V N �t 7 � M I� V �f7 (O V � � N V I� N O I� M � CO N O Lc'7 � � � � � � � � � � � � � N I� O O O � N M I� I� � � V CO M I� N N (O (O o0 O o0 ln N N I� N O � O O � aO aO � K3 O � � O � � � �O O � 00 Cfl 1� N 1� N f� N CO d' a' d M M N N O f!3 � � � � � O ln O 7 M O (O � O � CO ' ' V V M �M N � � � � co � o �n �n o � o ul N O� V o0 CO O V d' N � � N o0 ln O � � ' O O O � � M N o0 � e� N M V � (O 1� 00 � O O O O O O O O O O O O O O O O O O O N N N N N N N N N N 147 C N N m m c � � � 0 N d O C N L C � 7 O N � N U .Q N � � � C m m � 0 N w U N � � � � m � � � .� � � G1 O Z Attachment number 1 \nPage 1 Item # 1 Schedule 10 Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 City of Clearwater, Florida Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years (amounts in thousands, except per capita) General Bonded Debt Outstanding General Public Service Sales Tax Obligation Tax Revenue Revenue Bonds Bonds Bonds Total $ $ 11,360 $ 46,445 $ 57,805 11,005 41,345 52,350 10,645 36,075 46,720 10,270 30,615 40,885 9,885 24,955 34,840 9,565 19,080 28,645 13,000 12,975 25,975 12,545 6,620 19,165 8,540 - 8,540 Attachment number 1 \nPage 1� Percentage of Actual Taxable Value of Per Property (a) Capita (b) 0.86% $ 527 0.73% 476 0.59% 423 0.47% 369 0.34% 315 0.23% 259 0.20% 236 0.16% 174 0.08% 79 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (a) See Schedule 5 for property value data. (b) Population data can be found in Schedule 14. Item # 1 148 City of Clearwater, Florida Direct and Overlapping Governmental Activities Debt As of September 30, 2011 (amounts in thousands) Governmental Unit Debt repaid with property taxes Otherdebt Pinellas County School District State Bonds b Pinellas County School District Capital Leases Subtotal, overlapping debt City direct debt Total direct and overlapping debt Debt Outstandinq $ - 27,400 18,692 Estimated Percentage Applicable a n/a 13.5% 13.5% Attachment number 1 \nPage 1� Schedule 11 Estimated Share of Overlapping Debt $ - 3,703 2,526 6,229 19, 382 $ 25,611 Sources: Assessed value data used to estimate applicable percentages provided by Pinellas County Property Appraiser. Debt outstanding data is provided by each respective governmental unit. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Clearwater. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. a The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental uniYs taxable assessed value that is within the City's boundaries and dividing it by each uniYs total taxable assessed value. b The School District State Bonds are secured by a pledge of the District's portion of the State-assessed motor vehicle license tax. The State's full faith and credit is also pledged for the bonds. Item # 1 149 Schedule 12 Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 $ Debt Limit 1,026,014 1,116,032 1,236,804 1,395,730 1,631,179 2,028,832 2,128,847 1,942,045 1,672,462 1,573,282 City of Clearwater, Florida Legal Debt Margin Information Last Ten Fiscal Years (amounts in thousands) Total Net Debt Applicable to Limit 254,873 243,518 249,370 236,154 247,706 230,639 224,224 271,594 248,800 232,771 Leqal Debt Marqin Calculation for Fiscal Year 2010: Assessed valuation of non-exempt real estate Debt Limit (20% of assessed valuation per City Charter) Debt applicable to limit: Revenue bonds Capital leases Less: Amount set aside for repayment of bonded debt Legal debt margin Legal Debt Marain $ 771,141 872,514 987,434 1,159,576 1,383,473 1,798,193 1,904,623 1,670,451 1,423,662 1,340,511 $ 245,415 9,530 (22,174) � Attachment number 1 \nPage 1� Total Net Debt Applicable to Limit as Percentage of Debt Limit 24.84 21.82 20.16 16.92 15.19 11.37 10.53 13.98 14.88 14.80 7,866,410 1,573,282 232,771 $ 1,340,511 Note: Per City Charter, the City's indebtedness, to include revenue, refunding, and improvement bonds, shall not exceed 20 percent of the current assessed valuation of all real property located in the City. Item # 1 150 City of Clearwater, Florida Pledged-Revenue Coverage Last Ten Fiscal Years (amounts in thousands) Page 1 of 2 Less: Net Fiscal Gross Operating Available Year Revenues Expenses Revenues Infrastructure Sales Tax Bonds �a� 2002 8,458 - 2003 8,662 - 2004 9,120 - 2005 9,978 - 2006 10,704 - 2007 9,931 - 2008 9,863 - 2009 8,574 - 2010 7,987 2011 - - Spring Training Facility Bonds �b� 2002 $ 1,148 $ - $ 2003 1,115 - 2004 1,086 - 2005 1,098 - 2006 1,107 - 2007 1,112 - 2008 1,107 - 2009 1,104 - 2010 1,105 2011 1,105 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 8,458 8,662 9,120 9,978 10,704 9, 931 9,863 8,574 7,987 1,148 1,115 1,086 1,098 1,107 1,112 1,107 1,104 1,105 1,105 Debt Service Principal Interest 5,100 5,270 5,460 5,660 5,875 6,105 6,355 6,620 165 460 465 475 490 500 515 530 550 Public Service Tax/Improvement Revenue Bonds �`� $ 15,486 $ - $ 15,486 $ 250 18,273 - 18,273 110 17,381 - 17,381 355 17,027 - 17,027 360 17,493 - 17,493 375 18,118 - 18,118 385 18,194 - 18,194 320 18,280 - 18,280 330 18,987 - 18,987 340 19,680 - 19,680 355 19,081 - 19,081 8,540 1, 984 1,882 1, 674 1,432 1,896 �a� 889 641 397 132 629 623 614 603 591 577 561 544 526 613 408 506 496 485 473 464 450 438 425 291 �d� Schedule 13 Coveraqe 4.26 1.24 1.31 1.45 1.42 1.47 1.46 1.27 1.18 0.00 n/a 1.40 1.00 1.02 1.03 1.03 1.03 1.03 1.03 1.03 17.94 35.28 20.19 19.89 20.34 21.12 23.21 23.44 24.40 25.23 2.16 (a) Pledged revenues for the Infrastructure Sales Tax Revenue Bonds include the City's share of revenues derived by Pinellas County, Florida, from the levy and collection of a one-cent discretionary infrastructure sales surtax pursuant to Section 212.055(2), Florida Statutes, as amended. Interest for 2006 includes arbitrage rebate of $742,000. (b) Pledged revenues for the Spring Training Facility Revenue Bonds include payments received from the State of Florida pursuant to Section 212.20, Florida Statutes, and payments from Pinellas County, pursuant to an inter-local agreement dated December 1, 2000, along with related interest earnings. (c) Pledged revenues for the Improvement Revenue Refunding Bonds, issued October 2001, were public service taxes. Effective October 1, 2001, the Florida Legislature repealed the public tax on communications and created a replacement communications services tax. Consequently the pledged revenues effective October 1, 2001, include both public service taxes and the new communications services taxes. (d) Principal payment in 2011 includes an additional principal payment in the amount of $8,170,000 on February 1, 2011 to redeem all outstanding principal as of that date. 151 Attachment number 1 \nPage 1� Item # 1 Schedule 13 (continued) City of Clearwater, Florida Pledged-Revenue Coverage Last Ten Fiscal Years �a� (amounts in thousands) Attachment number 1 \nPage 1� Page 2 of 2 Less: Net Fiscal Gross Operating Available Debt Service Maximum Year Revenues Expenses Revenues Principal Interest Coveraqe Coverage �a� Water � Sewer Utility Revenue Bonds 2002 39,452 28,552 10,900 2003 40,243 29,611 10,632 2004 44,193 31,206 12,987 2005 46,379 32,243 14,136 2006 51,197 36,546 14,651 2007 52,815 37,109 15,706 2008 54,014 38,325 15,689 2009 56,952 36,305 20,647 2010 58,220 37,358 20,862 2011 61,473 40, 304 21,169 Gas Utility Revenue Bonds 2002 27,218 20,665 6,553 2003 30,373 23,729 6,644 2004 33,229 26,316 6,913 2005 37,797 30,584 7,213 2006 43,772 34,154 9,618 2007 39,756 30,483 9,273 2008 41,582 33,562 8,020 2009 39,992 26,813 13,179 2010 40,515 28,517 11,998 2011 37,021 25,934 11,087 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Stormwater Utility Revenue Bonds 6,846 3,958 2,888 8,660 4,727 3,933 9,680 5,923 3,757 10,523 5,754 4,769 11,589 6,020 5,569 12,458 6,161 6,297 13,270 7,038 6,232 14,231 7,684 6,547 15,283 6,766 8,517 15,656 7,917 7,739 5,165 5,430 6,575 7,000 7,020 7,115 7,080 7,195 4,685 4,935 610 630 675 770 825 855 765 770 775 795 120 125 570 580 925 985 1,015 1,050 1,080 1,120 1,118 3,334 2,964 2,892 2,711 3,588 3,817 3,773 9,310 9,627 1,495 1,470 1,370 1,228 1,195 1,162 741 730 704 678 395 1,104 1,445 1,830 1,906 1,874 1,845 1,814 1,782 1,741 1.73 1.21 1.36 1.43 1.51 1.47 1.44 1.88 1.49 1.45 3.11 3.16 3.38 3.61 4.76 4.60 5.33 8.79 8.11 7.53 5.61 3.20 1.86 1.98 1.97 2.20 2.18 2.29 2.98 2.70 �a� Maximum debt service coverage is presented for continuing disclosure on the Gas System Revenue Bonds and is based upon the maximum annual debt service for outstanding bonds and parity bonds. 152 3.01 3.05 3.18 3.35 4.47 4.31 3.73 6.13 5.75 5.16 Item # 1 Attachment number 1 \nPage 1� Schedule 14 City of Clearwater, Florida Demographic and Economic Statistics Last Ten Fiscal Years Personal Income Per Capita Annual Average (thousands of Personal Median School Unemployment Year Population (a) dollars) Income (b) Age (c ) Enrollment (d) Rate (e) 2002 109,719 3,487,309 31,784 43.0 17,047 3.9 2003 110,055 3,586,142 32,585 43.9 16,295 5.4 2004 110,325 3,680,552 33,361 44.0 16,323 4.7 2005 110,831 3,730,350 33,658 44.2 15,964 3.4 2006 110,602 4,117,712 37,230 44.2 15,696 2.9 2007 110,469 4,374,683 39,601 44.5 15,500 3.8 2008 110,251 4,650,056 42,177 44.5 15,482 5.5 2009 109,907 4,776,778 43,462 45 14,975 10.1 2010 107,685 4,758,062 44,185 45.3 14,704 12.4 2011 107,805 4,619,983 42,855 46.3 14,375 10.8 (a) Source is the University of Florida, Bureau of Economic and Business Research: April 1, 2011 estimate for current year and Florida Statistical Abstract for prior years. (b) Data is from per capita personal income for Pinellas County for two years prior. Source is the University of Florida, Bureau of Economic and Business Research, Florida Statistical Abstract. (c ) Data is for Pinellas County and for prior year. Source is the University of Florida, Bureau of Economic and Business Research, Florida Statistical Abstract. (d) Source of data is the Pinellas County School District. (e) Source for fiscal years 2001 thru 2009 is the University of Florida, Bureau of Economic and Business Research, Florida Statistical Abstract, Annual Averages of the indicated fiscal year. Source for fiscal 2011 is the US Dept of Labor, Bureau of Labor Statistics, Tampa Metro Area, average for year ended September 2011. Note: Data is the latest published annual data available for an unspecified point in each year, not specifically September 30. Item # 1 153 Schedule 15 City of Clearwater, Florida Principal Employers , Current Year and Nine Years Ago 2011 b Attachment number 1 \nPage 1� 2002 ` Percentage Percentage of Total of Total County County Employer Employees Rank Employment Employees Rank Employment Pinellas County School District Bay Pines VA Medical Center City of St. Petersburg Pinellas County Board of County Commissionersd Pinellas County Sheriff All Children's Hospital Morton Plant Hospital Raymond James Financial St. Petersburg College Bayfront Medical Center Total Employment b a Data is for Pinellas County. City data is not available. 17,060 4, 581 3,178 2,693 2,646 2,600 2,600 2,500 2,478 2,100 390,562 1 2 3 4 5 6 7 8 9 10 4.37% 1.17°/a 0.81 % 0.69% 0.68% 0.67°/a 0.67% 0.64% 0.63% 0.54°/a b Source: Florida Research and Economic Database and Pinellas County Department of Economic Development. ` Data for 2002 is not available. d Includes part-time personnel budgeted. 154 Item # 1 City of Clearwater, Florida Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years Function/Proqram General government Public safety Fire Police Physical environment Transportation Economic environment Human services Culture and recreation Library Parks & Rec Water & Sewer Utility Gas Utility Solid Waste Utility Stormwater Utility Recycling Marine Clearwater Harbor Marina Aviation Parking System Total Attachment number 1 \nPage 1� Schedule 16 Full-time Equivalent Employees as of September 30 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 301.9 287.0 286.4 287.3 307.5 322.0 327.3 321.6 346.6 326.6 199.7 200.0 202.0 202.0 215.0 221.0 212.0 212.0 211.0 205.0 408.4 397.6 399.9 405.9 407.9 407.9 393.9 389.9 370.9 344.0 36.0 36.0 36.0 36.0 38.7 38.7 34.0 33.5 28.5 27.5 72.0 73.0 73.0 71.0 74.3 74.3 69.0 67.5 57.5 53.5 52.3 64.3 67.3 67.1 69.5 66.5 64.5 62.5 11.0 11.0 4.0 4.0 4.0 3.0 3.0 3.0 3.0 2.0 - - 81.4 83.4 95.9 95.9 94.9 93.9 88.4 78.3 73.2 73.2 209.6 217.0 241.9 235.4 239.8 240.8 221.8 203.7 191.1 184.1 166.0 170.0 169.0 169.0 175.0 175.0 168.0 169.0 164.0 166.0 90.0 90.0 90.0 90.0 90.0 90.0 90.0 84.0 77.0 77.0 109.5 106.0 107.5 109.5 112.0 112.0 112.0 112.0 112.0 112.0 38.0 40.0 40.0 46.0 46.0 46.0 46.0 47.0 46.0 47.0 24.5 23.5 23.5 23.5 22.5 22.5 22.5 22.3 22.3 22.3 32.8 35.9 35.9 36.4 32.6 18.1 18.6 18.8 17.1 16.1 5.6 5.6 1.0 2.4 2.4 1.9 1.9 1.9 1.9 1.7 1.4 1.4 9.6 14.8 20.8 20.8 20.8 20.7 20.7 20.7 31.6 31.6 1, 836.7 1, 844.9 1, 895.5 1, 900.7 1, 951.4 1, 954.3 1, 893.6 1, 846.5 1, 766.8 1, 703.9 Source: City of Clearwater Office of Management and Budget 155 Item # 1 � �n r� � O � N d� � � r r � -6 O � N i � N I� V � � (+') h O � d: O N C7 d' � � � M N O � � N O� d M i� � � � O � � O N n O � N R � O � �a � � � �� � L c0 LL V � O L � � N y t� lv " T V � � LL N N O � (.i � � M tfl ,� c� W O p:�w, ao N N w � R � U �� d � a R � � w N � � o 0 f0 N V N LL � � rn � rn � i� M (O � � n o ln ln � � ln M � � N N � O o M CO � � M� CO O M O oO M h � lCl N n o o �n � � � 6� � a0 O O V f� O O O N O Q N M � N � � 6� � Attachment number 1 \nPage 1� N CO f� ll� N M N h CO ln O o� M O CO � M c0 � O M N � O tn o� CO M � O N N � N d' O �� �- M 6) N O � M N � � V M �- O O� � h ln t-- � V N CO � I` � V O o� O M � O� I� � � � O N � � � tn CO V N� M T M 6) O � � � � � � r O� � c0 tn N V(O I� CO V �� � V M lCl 00 f� N �c'7 M M O �� � � O � � 00 �t �- (�O CO CO V M� M � N O) � W � W � � CO a�0 N� M� d� CO N � W O � � I� O) � O � O CO � O M O � M � M I� V I� 00 ln � d' M � � � � O� r O c0 � N � M o0 d' V V d' O h ln I� c0 � CO O 00 M N O M O N N � � M � CO a- O O CO ��- I� O � O c'7 +- O o O 1� � V' o� o� � N N V M � V N tn ,- CO o0 � I� � O r M O) O W V � 00 h N CO V' M � � � � � V � o� � ln N o� O N o� �C7 !� O O I� O) � CO � h M O tc'7 tc'7 ln ch tn �- c0 M M M O O c0 O I� CO M �I' 6� M � CO t� � � I� � CO � � � d: N.- O I� N V V �- CD a 00 � N M c`') �Ci O�- M O) N I� � =p � O V' O� N V M � � � C � � � CO � � O � � U c � � w m N � Q N CO O 1� � N O h I� CO O oJ CO U] � oJ O � V �� N CO � M � O c`') � 1� N 1� �- O�O d' OJ CO N �� � o� V � O O I� ln t!7 N CO �--- d: M � ln O Cfl M Z U � � f` � ° M � I� � O � V � M � N � � � � 'I � rn r �� � �' � � � @ � � .@ � � � � _ ! o -a - � N � 00 c�'� � W C' V I� CO �� V' a0 �Y d' M C C r O o� d' N N �- M N O N O 1� M � M CO lf) N V .� @ �� +- N �c'7 V O d' <t N N�,.j N.- V � CO d' '- � �(fl r a (h m �� p� (p O�- M N O N d' � N f N ln tn CO 6� CO <Y M � � � .- @ C 'f � CO � O N � � �i - � • � O � N a � _ @ � � 2 � o � N N � U 7 N � � -Q N @ I U � E � E O � O � N � C � c � � o c°n" �n ai U � � ° o �' � a 'c �B o� ! a� � a� � � -o � �° c ' �� � � p� c6 O c6 N > Y C y '� y i� � (d � C = 'O C @ p_ C � � � � N n � � � � � � l .� o O � 47 U � � CO G � -� � O i Q U7 � L � Y `t � � :�6 � Q N p � N (4 .� c Q � o> n � � m E N� � c � � � � -o > � T � � Q1 � � � � � V �p > .N � � N � � V 0 � C :p C (0 c6 � 'O C y C > Q y U � f6 (6 � t` � i 'O '`" +`, — >` N O� i O C > C '� ._ ,� `� � c E `� c � � � m � a� � in � � � � � � �� �� o� o � a� a� � o �, a��i � a, - 0 3� 3 � o s ° >. `6 " � m� �� a� � m E � o'� � r � � � o� N� � T� °' � E yi � �� �� (6 C� O` OL C tA Q N�� j p N O Q. N 7 O 7 vi O.. tn A O � L O E � � � � ° � ° °� � � '> � °� � � >, m -o io � 3 � � � o `m ' 3 � >' m .� �- ; m `m m � -o >, � °� '> �a 4 �n c a� " � �n �` � c � ' a� � � � � � � - °' °� i � o .S E v� � � � � c � a� a� -o � ,T a � �6 � � � a� � � � 3 � E � -o E � � >' m � c o a� �> o a� a� �@- o a� �- c �._ �n a� �-o � o a� ._ >, � N o a� � m c. a� a U� U a Q H �� U c� Q� �o U� U �� � U a� Q ��> c� �? z � cA 3 Z �' � O� .� �� 9 'T C O � ,,,�, N N -p � V 0� 1 � N 7 L � U 7 7 � @ p � � Z� m '� c7 a a � w = c� � c� rn cn � c � LL 156 Item # 1 City of Clearwater, Florida Capital Asset Statistics by Function/Program Last Ten Fiscal Years As of September 30 2002 2003 2004 2005 2006 2007 2008 2009 Function/Proqram Public safety Fire Stations 7 7 8 8 8 8 8 8 Police Stations 9 9 9 10 10 10 9 6 Transportation Paved streets (miles) 304 304 305 305 305 305 305 313 Culture and recreation Library system Volumes in collection (thousands) 546 557 557 570 565 590 601 606 Parks and recreation Parks acreage 1,370 1,370 1,370 1,374 1,400 1,400 1,400 1,400 Recreational paths (miles) 7 7 7 13 14 16 16 16 Playgrounds 31 31 31 32 33 33 29 29 Baseball and softball fields 36 36 35 35 35 35 32 32 Soccer and football fields 17 17 17 24 25 25 20 20 Recreation centers 11 12 12 7 7 7 7 7 Water & Sewer Utility Water mains (miles) 559 559 567 567 568 571 575 593 Sanitary sewer mains (miles) 363 363 363 363 365 368 362 362 Daily treatment capacity 29 29 29 29 29 29 29 29 (millions of gallons) Gas Utility Gas mains (miles) 669 686 729 753 786 816 814 821 Stormwater Utility Stormwater mains (miles) 147 147 147 147 148 156 146 148 Marine Boat slips 209 209 209 209 209 209 209 207 Clearwater Harbor Marina Boat slips Aviation Airpark spaces 177 177 177 177 177 177 177 177 Parking system Parking spaces 3,538 3,615 3,653 3,686 3,636 3,322 3,382 3,497 Attachment number 1 \nPage 1� Schedule 18 2010 2011 8 8 5 6 314 315 606 601 1,427 1,427 16 16 29 27 32 32 20 20 6 5 592 592 363 363 29 29 826 830 148 148 207 207 126 126 177 177 3,297 2,475 a aThe decrease in parking spaces for fiscal 2011 was loss of Sand Key and some management decision to not charge for certain lots. Sources: Various city departments Note: No capital asset indicators are available for the general government, physical environment, economic environment, human services, solid waste, recycling, and Harborview Center functions. Item # 1 157 Attachment number 1 \nPage 1 This Page Intentionally Left Blank Item # 1 158 Attachment number 1 \nPage 1 Single Audit / Grants Compliance Item # 1 159 Attachment number 1 \nPage 1 This Page Intentionally Left Blank Item # 1 160 Attachment number 1 \nPage 1 Mayer Hoffman McCann P.C. An Independent CPA Firm KRMT Tampa Bay Division 13577 Feather Sound Drive, Suite 400 � Clearwater, FL 33762 Phone: 727.572.1400 • 813.879.1400 Fax: 727.571.1933 I www.mhm-pc.com Report on Internal Control Over Financial ReportinE and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government AuditinQ Standar�ls Honorable Mayor and City Councilmembers City of Clearwater, Florida: We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clearwater, Florida (the "City"), as of and for the year ended September 30, 201 l, which collectively comprise the City's basic financial statements, and have issued our report thereon dated March 30, 2012. We have also audited the financial statements of each of the City's non-major governmental, non-major enterprise, internal service and fiduciary funds presented in the accompanying combining and individual fund statements and schedules as of and for the year ended September 30, 201 l, as listed in the table of contents. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reportin� Management of the City is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 161 Item # 1 Attachment number 1 \nPage 1 Com�liance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain other matters that we reported to management of the City in a separate letter dated March 30, 2012. This report is intended solely for the information and use of the Mayor, City Council, and management, others within the organization and applicable federal and state awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. � a�- March 30, 2012 Clearwater, Florida ,`� f ¢�,�c � �� i° �'. 162 Item # 1 Attachment number 1 \nPage 1 Mayer Hoffman NlcCann P.C. An Independent CPA Firm KRMT Tampa Bay Division � 13577 Feather Sound Drive, Suite 400 � Clearwater, FL 33762 P hone: 727.572.1400 . 813.879.1400 Fax: 727.571.1933 � www.mhm-pc.com Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Maior Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and Chapter 10.550, Rules oftl:e Auditor Cenera! o/'the State o/�Florida Honorable Mayor and City Councilmembers City of Clearwater, Florida: Compliance We have audited the City of Clearwater, Florida's (the "City") compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement and the requirements described in the State of Florida Department of Financial Services State Projects Compliance Supplement, that could have a direct and material effect on each of the City's major federal programs and state financial assistance projects for the year ended September 30, 201I. The City's major federal programs and state financial assistance projects are identified in the summary of auditors' results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs and state financial assistance projects is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and Chapter 10.550, Rules of the Auditor General of the State of Florida. Those standards, OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General — Local Governmental Enliry Audits, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state financial assistance project occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City's compliance with those requirements. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state financial assistance projects for the year ended September 30, 201 1. 163 Item # 1 Attachment number 1 \nPage 1 Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs and state financial assistance projects. [n planning and performing our audit, we considered the City's internal control over compliance with the requirements that could have a direct and material effect on a major federal program or state financial assistance project in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter ] 0.550 Rules of the Auditor General of the State of Florida, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state financial assistance project on a timely basis. A material weakness in inlernal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of the Mayor, City Council, and management, the State of Florida Office of the Auditor General and applicable federal and state awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. `�1 March 30, 2012 Clearwater, Florida ������ 164 Item # 1 City of Clearwater, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance Projects For the Year Ended September 30, 2011 Federal Grantor / Pass-through Grantor / Proaram Title FEDERAL AWARDS U.S. Department of Housing and Urban Development: Community Development Block Grant - Entitlement ARRA-Neighborhood Stabilization Program 3 ARRA-Community Development Block Grant Recovery (CDBG-R) Home Investment Partnerships Program Economic Development Initiative - Special Project, Neighborhood Initiative and Miscellaneous Grants - Steetscape 2007 - Steetscape 2008 - Steetscape 2009 Passed through Florida Suncoast Housing Partners Passed through Pinellas County Neighborhood Stabilization Program 2 Total U.S. Department of Housing and Urban Development U.S. Department of the Interior: Fish and Wildlife Service Passed through Florida Fish and Wildlife Commission Sport Fish Restoration Program - Bay Esplande Boat Ramp Sportfishing and Boating Safety Act - Downtown Boat Slips Passed through Florida Dep of Environmental Protection Clean Vessel Act - Pumpout Vessel Clean Vessel Act - Pumpout Vessel Operation, Maintenance & Repair Total U.S. Department of the Interior - Fish and Wildlife Service 165 CFDA Number Grant I.D. Number 14218 B-03-MC-12-0002 14218 B-08-MC-12-0002 14.218 B-09-MC-12-0002 14.218 Program Income 14.218 B-11-MN-12-0031 14.253 B-09-MY-12-0002 14.239 M-06-MC-12-0230 14.239 M-07-MC-12-0230 14.239 M-08-MC-12-0230 14.239 M-09-MC-12-0230 14.239 Program Income 14.239 14.251 B-08-SP-FL-0089 14.251 B-08-SP-FL-0088 14.251 B-09-SP-FL-0103 14.251 14.256 15.605 FWC Contract 09018 15.622 50 CFR Part 86 15.616 DEP Agreeement MV051 CVA 11-614 15.616 DEP Agreeement MV051 CVA 11-615 15.616 Attachment number 1 \nPage 1 FY 2011 Federal Share of oenditures $ 505 57, 382 537,259 33, 380 78,393 706,919 275,223 403,849 90,237 53,695 35, 389 858,393 4,634 98, 000 237, 500 340,134 83,939 1,989,385 Item # 1 324,261 117,972 49,875 788 50,663 492,896 U.S. Department of Justice: Federal Forfeiture Sharing Office of Victims of Crimes Services for Trafficing Victims - Human Trafficing Task Force Services for Trafficing Victims - Human Trafficing Task Force Bureau of Justice Assistance Edward Byrne Memorial Justice Assistance Grant Program - Digital Camera & Motorcycle Helmets Total U.S. Department of Justice U.S. Department of Transportation: Federal Highway Administration Passed through Florida Department of Transportation: ARRA-Highway Planning and Construction - East Ave Bike Lanes Total U.S. Department of Transportation U.S. Department of Treasury: Federal Forfeiture Sharing Total U.S. Department of Treasury U.S. Environmental Protection Agency: Congessionally mandated Projects - Sanitary Sewer Extension Office of Solid Waste and Emergency Response ARRA-Brownfields Assessment and Cleanup Cooperative Agreements Total U.S. Environmental Protection Agency U.S. Department of Energy: ARRA-Energy Efficiency and Conservation Block Grant Program (EECBG) Passed through Florida Office of Energy ARRA-State Energy Programs Total U.S. Department of Energy Corporation For National and Community Services: Passed through FL Commission on Community Services Americorps - 2010 Americorps - 2011 Total Corporation for National and Community Services Total Federal Financial Assistance 166 16.000 FL0520300 16.320 2006-VT-BX-0007 16.320 2010-VT-BX-0022 16.320 16.738 2010-DJ-BX-1597 20.205 FPN 424399-1-58-01 21.000 FL0520300 66.202 XP-95455010-0 66.818 2B-95427409-0 81.128 DE-SC0002363 81.041 ARS007 (DE-EE0000241) 94.006 Grant 06AFHFL0010008 94.006 Attachment number 1 \nPage 1 208,991 109,634 3, 774 113,408 86.205 408,604 268,235 268,235 77,849 77,849 223,669 130,792 354,461 128,670 384,000 512,670 32,823 120,478 153,301 $ 4,257,401 Item # 1 City of Clearwater, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance Projects - Continued For the Year Ended September 30, 2011 State Grantor / Pass-through Grantor / CSFA Proqram Title Number Grant I.D. Number STATE FINANCIAL ASSISTANCE Florida Executive Office of the Governor, Office of Tourism, Trade, and Economic Development Brownfield Grant Total Florida Executive Office of the Governor Florida Department of Environmental Protection: Water Protection and Sustainability Program - Morningside Reclaimed Water Skycrest Reclaimed Water Total Florida Department of Environmental Protection Florida Department of Community Affairs: Florida Housing Finance Corporation State Housing Initiative Partnership Program (SHIP) Total Florida Department of Community Affairs Florida Department of Transportation: Aviation Development Grants - Install New Security Fencing and Camera: FBO Building Modification at Airpark Multi Plane Hangers Airpark Runway Repairs 31.011 OT98-097 37.066 Agreement 05CON000049 37.066 Agreement 07CON000033 52.901 n/a 55.004 FPN:415770-1-94-01, ContractAPF54 55.004 FPN:412431-1-94-01; ContractANW13 55.004 FPN:414342-1-94-01; ContractA0U60 55.004 FPN:418124-1-94-01; ContractAPS66 Total Florida Department of Transportation Florida Department of Revenue: Phillies Stadium 73.016 Total Florida Department of Revenue Total State Financial Assistance Total Expenditures of Federal Awards and State Financial Assistance Projects 167 Attachment number 1 \nPage 1 FY 2011 State Share of enditures $ 12,706 12,706 78, 540 107,271 185,811 166,156 166, 7 56 10,496 35,633 78,272 100,000 224,401 500,004 500,004 $ 1,089,078 $ 5,346,479 Item # 1 Attachment number 1 \nPage 1 City of Clearwater, Florida Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Projects For the Year Ended September 30, 2011 NOTE 1— Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance Projects presents the activity of all federal financial and state grant activity projects of the City of Clearwater, Florida (the "City"). Federal and state financial assistance received directly from federal and state agencies, and federal financial assistance passed through other governmental agencies are included on the schedules. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations and Chapter 10.550, Rules of the Auditor General. NOTE 2— Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance Projects is presented using the modified accrual or accrual basis of accounting, which is described in Note 1 to the City's basic financial statements. NOTE 3 — CFDA/CSFA Numbers CFDA numbers represent Catalog of Federal Domestic Assistance and apply only to federal awards. CSFA numbers represent Catalog of State Financial Assistance and apply only to state financial assistance. NOTE 4 — Subrecipients Of the federal and state expenditures presented in the Schedule, the City provided federal and state awards to subrecipients as follows: Federal CFDA/ Amount Provided Program Title State CFSA To Subrecipients U.S. HUD Community Development Block Grant U.S. HUD Home Investment Partnerships Program Florida Housing Finance Corporation, State Housing Initiative Partnership Program NOTE 5 — Loans Outstanding 14.218 14.239 52.901 $269,088 $543,901 $110,499 The City had the following loan balances outstanding at September 30, 2011. The current year additions related to the loans are included in the Schedule of Federal Awards and State Financial Assistance. 14.218 Community Development Block Grant 14.239 Home Investment Partnership 52.901 State Housing Initiative Partnership .: $ 2,313,511 5,060,402 7,150,978 $ 14 524 891 Item # 1 Attachment number 1 \nPage 1� CITY OF CLEARWATER, FLORIDA Schedule of Findings and Questioned Costs Year Ended September 30, 201 1 Section I— Summary of Auditors' Results Financia! Statements Type of auditors' report issued: Internal control over financial reporting: • Material weakness(es) identified? • Significant deficiency(ies) identified that are not considered to be material weaknesses? Noncompliance material to financial statements noted? Federa! and State Awards Internal control over major programs: � Material weakness(es) identified? • Significant deficiency(ies) identified that are not considered to be material weaknesses? Type of auditors' report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with Section 510(a) Circular A-133? Unqualified Yes X No Yes X None reported Yes X No Yes X No Yes Unqualified Yes Identification of major programs/projects: Federal Pro�rams U.S. Department of Housing and Urban Development: Economic Development Initiative — Special Project, Neighborhood Initiative and Miscellaneous — Streetscape 2007, 2008 and 2009 U.S. Department of the Interior: Fish and Wildlife Service Passed through Florida Fish and Wildlife Commission Sport Fish Restoration Program — Bay Esplande Boat Ramp X None reported X No ��1 y 17:�►[1Ti i1 T�'i 14.251 15.605 169 Item # 1 CITY OF CLEARWATER, FLORIDA Schedule of Findings and Questioned Costs Year Ended September 30, 201 1 Federal Programs - Contin�ed CFDA Number U.S. Environmental Protection Agency: Office of Solid Waste and Emergency Response Brownfields Assessment and Cleanup Cooperative Agreements - A RRA U.S. Department of Energy: Passed through Florida Office of Energy — State Energy Programs - ARRA State Programs Florida Department of Transportation: Aviation Development Grants Florida Department of Revenue: Phillies Stadium 66.818 81.041 : ► . n � • 55.004 73.016 Attachment number 1 \nPage 1 The threshold for distinguishing Type A and Type B programs was $300,000 for federal programs and $300,000 for state projects. Auditee qualified as low-risk auditee? Section II — Financial Statement Findings X Yes No This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, and instances of noncompliance related to the financial statements that are required to be reported in accordance with Governmenl Auditing Standards. There were no findings required to be reported in accordance with Government Auditing Standards. Section III — Federal and State Award Findings and Questioned Costs This section identifies signifcant deficiencies, material weaknesses, and material instances of noncompliance, including questioned costs, related to the audit of major federal awards and state financial assistance projects, as required to be reported by OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General. There were no findings required to be reported in accordance with OMB Circular A-133 and Chapter 10. SSO, Rules of the Auditor General. Section IV — Summary of Prior Audit Findings There were no audit findings reported in the Schedule of Findings and Questioned Costs in the prior year. ��o Item # 1 Attachment number 1 \nPage 1 ' fVlayer Fioffman McCann P.C. � An Independent CPA Firm � KRMT Tampa Bay Division 13577 Feather Sound Drive, Suite 400 O Clearwater, FL 33762 ' Phone: 727.572.1400 • 813.879.1400 Fax: 727.571.1933 � www.mhm-pc.com Management Letter Honorable Mayor and City Councilmembers City of Clearwater, Florida: We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clearwater, Florida (the City), as of and for the year ended September 30, 2011, and have issued our report thereon dated March 30, 2012. We have also audited the financial statements of each of the City's non-major governmental, non- major enterprise, internal service and fiduciary funds presented in the accompanying combining and individual fund statements and schedules as listed in the table of contents. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States; and OMB Circular A-I 33, Audits ofStates, Local Governments, and Non-Profit Organizations and Chapter 10.550, Rules ofthe Auditor General. We have issued our Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with GovernmentAuditing Standards, Report on Compliance with Requirements that Could Have a Direct and Material Effect on each Major Program and on Internal Control Over Compliance in accordance with OMB Circular A-133 and Chapter 10.550, Rules oftheAuditor General of the State of Florida and the related Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated March 30, 2012, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules oftheAuditor General which governs the conduct of local government entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned auditors' reports: ➢ Section 10.554(1)(i)l.,RulesoftheAuditorGeneral,requiresthatwedeterminewhetherornot corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report as noted in the accompanying Appendix A to this Management Letter. ➢ Section 10.554(1)(i)2., Rules ofthe Auditor General, requires our audit include a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, nothing came to our attention that would cause us to believe that the City was not in compliance with Section 218.415, Florida Statutes. 171 Member of Kreston International - a glob.?' .� °,. � . Item # 1 Attachment number 1 \nPage 1 ➢ Section ] 0.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, the recommendations are noted in the accompanying Appendix A to this Management Letter. ➢ Section 10.554(1)(i)4., Rules of the Audilor General, requires that we address violations of provisions of contracts or grant agreements, or abuse that have occurred or are likely to have occurred, that have an effect on the financial statements that is less than material but more than inconsequential. In connection with our audit, we did not have any such findings. ➢ Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional judgment, report the following matters that have an inconsequential effect on the financial statements, considering both quantitative and qualitative factors: (1) violations of provisions of contracts or grant agreements, fraud, illegal acts, or abuse and (2) deficiencies in internal control that are not significant deficiencies. In connection with our audit, we did not have any such recommendations. ➢ Section 10.554(1)(i)6., Rules of the Audilor General, requires that the name or official title and legal authority for the primary government and each component unit ofthe reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. This information has been disclosed in the notes to the financial statements. ➢ Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to whether or not the local governmental entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes and identification of the specific condition(s) met. [n connection with our audit, we determined that the City did not meet any of the conditions described in Section 218.503(1), Florida Statutes. ➢ Section 10.554(1)(i)7.b., Rules ofthe Auditor General, requires that we determine whether the annual financial report for the City for the fiscal year ended September 30, 2011, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fscal year ended September 30, 2011. In connection with our audit, we determined that these two reports were in agreement. ➢ Pursuant to Sections 10.554(1)(i)7.c. and 10.556(7), Rules ofthe Auditor General, we applied financial condition assessment procedures. It is management's responsibility to monitor the City's financial condition, and our financial condition assessment was based in part on representations made by management and the review of the financial information provided by same. Pursuant to Chapter 1 19, Florida Statutes, this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use ofthe Mayor, City Council, management, and others within the organization, and is not intended to be and should not be used by anyone other than these specified parties. � �.�yw � �� /� C . � March 30, 2012 Clearwater, Florida �72 Item # 1 Attachment number 1 \nPage 1 Appendix A CITY OF CLEARWATER, FLORIDA Appendix A— Management Letter Comments September 30, 2011 Current Year Recommendations: 2011-01: Capital Assets — Construction in Progress Observation: During the audit of construction in progress (CIP) and capital assets, it was discovered that a transfer of funds from the community redevelopment agency (CRA) capital project fund to the City's capital improvement fund for a portion of the Cleveland Street Streetscape project was inadvertently included as an addition to CIP during the year end close out process for governmental capital assets. This was the result of not properly reconciling the fund expenditures to the additions to CIP for the year end government-wide entry. As a result, CIP additions were overstated by approximately $1.8 million. Recommendation: We recommend that each fund with capital outlay expenditures be properly reconciled to the supporting documentation to avoid inclusion of erroneous amounts. Management Response: Management concurs and will implement the appropriate processes and procedures to ensure that each fund with capital outlay expenditures is properly reconciled to the supporting documentation to avoid inclusion of erroneous amounts. Follow Up on Prior Year Recommendations: 2010 Comments: 2010-01 Capital Assets 2010-02 Payroll 2010-03 Information Technology Not Imnlemented In Process Implemented X X X 173 Item # 1 Attachment number 1 \nPage 1 This Page Intentionally Left Blank Item # 1 174 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Authorize renewal of the contract with Company Care for services including employee and pre—employmentdrug and alcohol testing, and pre—employment and annual employee physicals fa� a not to exceed amount of $50,000 per year and authorize the appropriate officials to execute same. (consent) SUMMARY: Since 2010, the City has contracted with Lakeside Medical for services including employee and pre—empbyment drug and alcohol testing, and pre—employment and annual employee ph}sicals. This request is for a renewal of the current agreement with no changes in provisions or rates. The anticipated cost for all services is not expected to exceed $50,000 annually and is within Human Resources' existing budget. Appropriation Code 0590098315301005190000000 0646074105215005850000000 Amount Appropriation Comment 30,000 Random Drug Testing/Temp Physicals 20,000 Pension Physicals Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo Item # 2 Attachment number 1 \nPage 1 COMPANY CARE PROVIDER LETTER OF AGREEMENT THIS AGREEMENT, effective the lst day of January, 2012, by and between the facilities named below (collectively referred to hereinafter as "Providers") and City of Clearwater (hereinafter referred to as "Client"), is as follows: 1. Scone of Services. Providers shall perform the services listed, and Client shall pay the respective Provider in accardance with the fees set forth, in the "Profile Sheet," which is attached hereto and incorporated herein by this reference. Service locations are set forth in Attachment A, which is attached hereto and incorporated herein by this reference. 2. Term. This Agreement shall be for a term one (] ) year commencing the l s` day of January, 2012, and shall automatically renew for additional terms of one (1) year, unless terminated pursuant to section 5. 3. Changes. Any changes to this Agreement shall bc made by mutual written consent of both Parties. 4. Compensation. Client shall pay each respective invoice in accordance with the Florida Prompt Payment Act, F.S. Sccs. 225.0705-225.078. 5. Termination. This Agreement may be terminated by either party, at any time, upon sixty (60) days prior written notice. 6. Insurance and Indemnification. Each respective Provider shall maintain, at its sole cost and expense, professional liabiliry insurance with an insurer satisfactory to Client, with minimum limits of one million dollars ($1,000,000) per occurrence, three million dollars ($3,000,000) in the aggregate and sball at the request Client, provide written evidence of said insurance coverage. In the event said coverage is changcd inaterially, the Provider shall, within ten (10) days of such material change, notify Client in writing. The Provider shall indemnify, defend and save Client harmless froin and against any and all losses, claims, damages, liabilities and expenses (including, without limitation, reasonable attorney's %es) based upon, arising out of atYributable to any acts or omissions arising from the Provider's performance hereunder. 7. Licensure/Compliance. Each Provider warrants and represents that it is licensed to perform the services provided under this Agreement and shall maintain all such licenses for the duration of the Agreement. In addition, each Provider represents that the services provided hereunder are in compliance with any and all applicable federal and state statutes, ]aws and/or regulations. 8. Hold Harmless and Indemnification. Each parry shall be responsible for any and all claims, liabilities, damages or judgments that may arise as a result of their own negligence or intEntional wrongdoing. Each party shall hold harmless and indemnify the other party against any such claims, liabilities, damages or judgments which may be asserted against, imposed or incurred by the other party. 9. Assi�nment. This Agreement shall not be assigned by any of the Providers without the prior written consent of Client. 10. Governin� Law. This Agreement shall be governed by and construed in accordance with laws of Florida. 11. Tndependent Contractors. For all purposes hereunder, the relationship between Client and each respective Provider is solely that of independent contractors and this Letter of Agreement does not create a parmership, joint venture or other association bctween any of the Providers and Client. ThE Employees and agents of each respective Provider shall be considered to be under exclusive management and control of each respective Provider. 12. Notices. Any and all notices sEnt pursuant to this Agreement shall be given in wriring via certified mail or overnight courier and shall be delivered to the following addresses: To Provider: Company Care To Client: City of Clearwater 6002 49`� Street North 100 S. Myrtle Avenue St. Petersburg, FL 33709 Clearwater, FL 33756 �tem # 2 Attn.: Barb Maxwell, Division Director Attachment number 1 \nPage 2 13. HIPAA Requirements. The parties agree to comply with the Health Insurance Portability and Accountability Act of 1996, as codified at 42 U.S.C. §1320d ("HIPAA") and any current and future regulations promulgated thereunder including without limitation the federal privacy regulations contained in 45 C.F.R. Parts 160 and 164 (the "Federal Privacy Regulations"), tlle federal security standards contained in 45 C.F.R. Part l42 (the "Federal Security Regulations"), and the federal standards for electronic transactions contained in 45 C.F.R. Parts 160 and 162, all collectively referred to herein as "HTPAA Requirements." The parties agree not to use or further disclose any Protected Health Information (as defined in 45 C.F.R. §164.SO1) or Individually Identifiable Health Information (as defined in 42 U.S.C. §1320d), other than as permitted by HIPAA Requirements and the terms of this Agreement. To the extent applicable under HIPAA, each party shall make its internal practices, books, and records relating to the use and disclosure of Protected Health Information available to the Secretary of Health and Human Services to the extent required for determining compliance with the Federal Privacy Regulations. Each party agrees also to comply with any state law and regularions that govern or pertain to the confidenYiality, privacy, security of, and electronic transactions and code sets related to, infonnation relaYed to patients. 14. Warranty of Non-Exclusion. Each party represents and warrants to the other that the party, its officers, directors and cmployees (i) are not currently excluded, debarred, or otherwise ineligible to participate in the federal health care programs as defined in 42 U.S.C. § 1320a-7b(fl (the "federal healthcare programs"), (ii) have not been convicted of a criminal offense related to the provision of healthcare items or services, and (iii) are not, to the best of its knowledge, under investigation or otherwise aware of any circumstances which may result in the party or any such individual being excluded from participation in the federal healthcare programs. This shall be an ongoing representation and warranty during the term of this Agreement and each party shall immediately notify the other of any change in the status of the representations and warranty set forth in this section. Notwithstanding any provision of this Agreement to the contrary, any breach of this section shall give the other party the right to terminate this Agreement immediately. Item # 2 oviz Page 2 of 4 Attachment number 1 \nPage 3 COMPENSATION SCHEDULE This attachment when executed by Provider and Client, shall become part of the agreement between the parties as of the Effcctive Date of the Agreement, and shall remain in Full Force and Effect as long as the Agreement is in Force. CLINICAL SUMMATION SHEET Company: City of Clearwater SERVICES TO BE PERFORMED: Physical Examination * $ 50.00 Medical History * Included Vision Test * Included Audiogram $ 20.00 Urinalysis $ 10.00 Drug Screen HRS 5-panel $ 35.00 Drug Screen HRS 8-panel $ 35.00 All above drug testing includes....lab, MRO services, and record keeping Back Screen (positions w/heavy physical requirements only $ 55.00 Pulmonary Function $ 30.00 Chest X-Ray One-View $ 55.00 Lumbar AP & Lateral $ 65.00 EKG $ 25.00 EKG Stress Treadmill $ 195.00 Hemocult $ 12.00 CMP $ 25.00 Lipid Panel $ 28.00 CBC w/Differential $ 10.00 Thyroid Pro�le $ 25.00 TB Test $ 18.00 Hepatitis Profile $ 88.00 Cardiologist Review Included $ -------- Spirometry $ 30.00 Hepatitis ABC (A-Antibody/Total; A-IGM; B-Core Antibody/Total & Qual; B-Antigen; C-Antibody $ 88.00 Workers Compensation State Fee Schedule Carrier Name: City of Clearwater / Risk Management Phone: 727-562-4650 Mailing Address: PO Box 4748 Citv: Clearwater State: FL Zlp: 33758 Emplover Contact Name: Allen Del Prete, AR Manager Phone: 727-562-4876 Fax: 727- 562-4877 Mailing Address: 100 South Myrtle Avenue City: Clearwater State: FL Zlp: 33756 CompanV Care Contact: Robyn Vandevander, Account Manager 1345 West Bay Drive, Suite 401 Largo, FL 33770 P:727-518-8324 F:727-518-0723 Item # 2 oviz Page 3 of4 Attachment number 1 \nPage 4 IN WITNESS WHEREOF, the Parties have set their hands the date and year first written above. "Providers" J. Daniel Miller, Senior Vice President, on behalf of the following "Providers" Date: • Edward White Hospital, Inc., d/b/a Edward White Hospital • Fawcett Memorial Hospital, Inc., d/b/a Fawcett Memorial Hospital • Galencare, Inc., d/b/a Northside Hospital • Galen of Florida, Inc., d/b/a St. Petersburg General Hospital —"Injury Intake Site" • Largo Medical Center, Inc., d/b/a Largo Medical Center • HCA Health Services of Florida, Inc. d/b/a Blake Medical Center • Osceola Regional Hospital, Inc. d/b/a Osceola Regional Medical Center • HCA Health Services of Florida, Inc. d/b/a Regional Medical Center Bayonet Point • Largo Medica] Center, Inc., d/b/a Largo Medical Center, Indian Rocks Campus -"Injury Intake Site" "Client" Countersigned: George Cretekos Mayor Approved as to form: Leslie K. Dougall-Sides Assistant City Attorney CITY OF CLEARWATER, FLORIDA By: William B. Horne II City Manager Attest: Rosemarie Call City Clerk Item # 2 oviz Page 4 of 4 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Award a contract to GSA Security Inc., Lutz, Florida, in the amount of $210,000 for the purchase and installation of Milestone Video Management and Monitoring Systein and cameras to support various city facilities, in accordance with Section 2.564(1)d), Code of Ordinances — Other Governmental Bid (contract withPinellas County School Board contract 10-968-083)�nd approve a transfer from retained earnings of the Administrative Services Fund in the amount of $105,000. (consent) SUMMARY: The City of Clearwater currently maintains over 230 video surveillance cameras at over 30 facilities. The maintenance of these cameras has created the need for a more comprehensive management platform and storage system. The proposed system (Milestone) will allow far the integration and management of the diverse security camera requirements across city facilities. The enterprise solution will integrate all video requirements on to one single platform and establish standards for future camera and storage purchases. The system server and a control console will be maintained within the Police Department Dispatch Office for access and use during emergency events and EOC (emergency operations center) activations. Annual maintenance far the system is approximately 18% of software cost and will be budgeted in the Information Technology budget and charged back to the using departments based upon camera counts. The Police Department will fund $80,000 for a prorated share of this system, which will include cameras at the Countryside Substation, as well as the Main Station. This $80,000 will be funded from project 181-99387, Federal Forfeiture—Justice. Of the remaining balance, $25,�0 is planned with the renovation of the North Greenwood Recreation Center and will be funded from capital project 315-93621, North Greenwood Recreation Center Renovations. The balance of $105,000 will be funded from unallocated retained earnings of the Administrative Services Fund. A mid—year budget amendment will es�iblish capital project 315-94873, Citywide Camera System, with the transfer of $105,000 from the Administrative Services Fund. Type: Purchase Current Year Budget?: No Budget Adjustment: Yes Budget Adjustment Comments: $80,000 will be provided by the Police Department from SLEF funds. $25,000 will be funded from the North Greenwood Recreation Center Renovaiion project, $105,000 will be provided from retained earnings of the Administrative Services Fund. Current Year Cost: Not to Exceed: For Fiscal Year: Appropriation Code 181-99387 3 1 5-9362 1 315-94873 $175,000 Annual Operating Cost: $14,000 $210,000 Total Cost: $210,000 2011 to 2012 Amount $80,000 $2s,000 $105,000 Appropriation Comment Police Department Upgrades North Greenwood Recreation Center Administrative Fund Retained Earnings Cover Memo Item # 3 Bid Required?: No Bid Number: Pinellas County Other Other Bid / Contract: School Board Bid Exceptions: Government contract #10— Bid 968-083 Review 1) Financial Services 2) Infarmation Technology 3) Financial Services 4) Off'ice of Management and Approval: Budget 5) Legal 6) Clerk 7) Assistant City Manager 8) City Manager 9) Clerk Cover Memo Item # 3 PURCHASING AGENDA ITEM School Board of'Pinellas County, Florida School Board Meeting of: January 12, 2010 Bid No: 10-968-083 Ori inal Bid No: 06-968-501 Attachment number 1 \nPage 1 Bid Title: Closed Circuit Television System (CCTV) Installation Recommend approval of this agenda item under the specific category checiced below. A�enda Item Cate�ories: � Lowest Responsive Bid ❑ Request for Proposal ❑ Reject Bids ❑ Piggy-Back Bid per 6A-1 Al2 (6) ❑ Sale of Property ❑ Revised Award * ❑ Highest Point Score ❑ Re-Award (partial/whole) * ❑ State Contract per 6A-1.012 (5) ❑ Renewal of Contract ❑ Contract/Bid Termination * ❑ Contract Extension * Term: ❑ Co-Op Bid ❑ Professional Services per FS 287.055 ❑ Direct Negotiation per 6A-1.012 (14) � Emergency Ratification * Contract Period: 1/12/10 thru 1/13/11 Contract Value: $ 600,000.00 ❑ N/A - One Time Purchase Cont�act Type: � Estimated ❑ Firm, Fixed � Firm, Fixed ❑ Firm, Fixed Dollar Amount Dollar Amount Unit Prices Fees or Discounts Renewal Options: No. of Terms ❑ Length of � Length of ❑ None Remaining Each Term Each Term 2 � 6-months � 1- year * Rationale/Reason ❑ Reason for Submittal to Board Under Separate Cover: Bidders Solicited: Bids Received: 10 No Bids: 1 Late Bids: 0 Rejected Bids: 3 ❑ N/A - Bids Not Required 448 Submitte� By: Title: Requested Sy: Title: Mark C. Lindemann Director, Purchasing Department Daniel C. Smith Directar, Maintenance Department Recommended award by vendor as follows: (see attached) For: County Wide Buyer: Mark Kriz Item # 3 (]0-083pr455tab.doc) 1 Attachment number 1 \nPage 2 Provide and install Closed Circuit Television (CCTV) Systems at various facilities, county wide, per specifications. Line items which have been discontinued since the original bid was awarded will be purchased utilizing the discounts provided in the bid where direct replacement items exist. Cablelink GSA Security Integrated Network Inc. Systems of Services, Inc. Florida, Inc. No. Description Hourly Rates Hourly Rates Hourlv Rates 1 Hourly rate for Lead Technician $38.00 $ 34.25 $ 45.00 2 Hourly rate for Helper $28.49 $ 24.25 $ 30.00 3 Hourly rate for Engineer (to include $20.00 $ 75.55 $ 30.00 CD, as-builts, CAD, ) 4 Hourly rate far Project Management $20.00 $ 40.55 $ 30.00 Description Unit Pricin� & Unit Pricing & Unit Pricing & Parts Discount Parts Discount Parts Discount PELCO 5 EH3515MT $ 80.00 $ 94.48 $ 80.91 6 EH2100 Housing, Low Profile $ 60.00 $ 84.58 $ 70.00 Ceiling Tile Enclosure 7 E-2l 00 Indexing Plate $ 40.00 $ 35.07 $ 3l .00 8 EH-2020, Security Rated In-Ceiling $ 70.00 $ 81.88 $ 70.00 Camera Enclosure 9 MS504-DT Manual Switcher 4 x 1 $ 150.00 $ 102.58 $ 95.00 10 PMCL417A $ 750.00 $ 782.80 $ 613.00 11 PMCS 17A Head End Monitor $ 495.00 $ 474.18 $ 450.00 12 VS5104 Sequencer $ 140.00 $ 114.28 $ 100.00 13 FT-8301AMSTR 1 Ch. Transmitter $ 190.00 $ 175.46 $ 185.00 14 FR-8302AMSTR-2 2 Ch. Receiver $ 330.00 $ 314.92 $ 320.00 15 FT-8304MSTR 4 Ch. Transmitter $ 1,450.00 $ 844.88 $ 825.00 16 FR-8304MSTR 4 Ch. Receiver $ 1,450.00 $ 844.88 $ 825.00 17 FT-8308MSTR 8 Ch. Transmitter $ 2,356.00 $ 1,992.99 $ 1,850.00 18 FR-8308MSTR 8 Ch. Receiver $ 2,356.00 $ 1,992.99 $ 1,850.00 19 RK-SOOOPS-3U Fiber Card Cage/PS $ 546.00 $ 485.88 $ 400.00 20 SD435-PG-EO Spectra IV ENV $ 2,700.00 $ 2,315.12 $ 2,300.00 Color D/N Pendant Mount 21 PA402 Pole Mount Adapter for $ 40.00 $51.65 $ 40.00 Spectra Dome 22 WCS 1-4 PTZ Power Supply for $ 100.00 $ 123.59 $ 1] 0.00 Spectra Dome Item # 3 (]0-083pr455tab.doc) Attachment number 1 \nPage 3 23 MPTAZ24DT PTZ Joystick $ 400.00 $ 405.80 $ 360.00 Controller 24 Percentage Discount from Pelcds 25°/o 20°/o 45% Retail Price List for parts, supplies, and e ui ment not listed above VIDEOALARM 25 Dome Model RC-200 Flush or Drop $ 109.00 $ 136.01 $ 155.00 Ceiling Mount 26 Percentage Discount from 5% 0% 45% VideoAlarm's Retail Price List for parts, supplies and equipment not listed ALTRONIX 27 ALTV248300 Power Supply 8 Port $ 92.00 $116.90 $162.00 14A 28 ALTV244175UL Power Supply 4 $ 75.00 $ 77.39 $ 96.00 Port 7A 29 Percentage Discount from 8°/o 20°/o 40% Altronix's Retail Price List for parts, supplies and equipment not listed NVT 30 NV-214A-M Passive Tranceiver $ 32.00 $ 29.90 $ 40.00 31 NV-652R, Active Transceiver, $ 160.00 $ 160.78 $ 180.40 Twisted Pair, 500-2,000' 32 NV-653T, Active Transceiver, $ 160.00 $ 160.78 $ 180.40 Twisted Pair, 3,000-4,000' 33 NV-214A-M Passive Transceiver $ 32.00 $ 29.90 $ 29.00 34 Percentage Discount from NVT's 8°/o 18°/o 43% Retail Price List for parts, supplies and e ui ment not listed DITEK 35 DTK-6FF $ 15.00 $ 13.93 $ 18.00 36 DTK-8FF $ 16.00 $ 15.80 $ 20.00 37 DTK-iLVLP-LV $ 20.00 $ 22.76 $ 28.00 38 DTK-3LVLP-LV $ 32.00 $ 36.72 $ 44.50 39 DTK-4LVLP-LV $ 35.00 $ 40.47 $ 44.20 40 DTK-VSPBNCA $ 32.25 $ 32.88 $ 41.00 41 DTK-RM16NM $ 280.00 $ 232.67 $ 301.25 42 Percentage Discount from DITEK's Retail Price List for parts, supplies and e ui ment not listed 8°/o 18% 41 % Item # 3 (]0-083pr455tab.doc) Attachment number 1 \nPage 4 GE SECURITY 43 SDVR-1 6-160 PRO II DVR w/CD $3,300.00 $ 2,916.36 $ 3,312.00 Burner 44 KTD 405 Remote Keyboard $ 610.00 $ 612.31 $ 631.00 45 KTD83 Signal Distributor $ 150.00 $ 144.09 $ 139.00 46 KA-geahe4d26 PTZ D/N Pendant $ 2,800.00 $ 2,240.61 $ 2,359.00 Camera 47 Gea102 Cast Alum. Dome Mount $ 40.00 $ 75.31 $ 80.64 48 KTP-24 Power Supply 100va $ 50.00 $ 93.24 $ 95.68 Outdoor 49 PKSDI77XI2C Outdoor 125x20 $ 280.00 $ 644.13 $ 55.00 Detector 50 Percentage Discount from GE 35°/o 6.5% 44% Security's Retail Price List for parYs, supplies and equipment not listed TAMRON 51 TM-] 3VG1040ASIR-SQ Auto Iris $105.00 $97.86 $8.00 DC Zoom Lens 10-40 MM 52 TM-13VG2812AS-SQ Lens 2.8-12 $65.00 $58.06 $55.00 MM F/1.4 varifocal 53 Percentage Discount from 20°/o 46°/o 41 % Tamron's Retail Price List for parts, supplies and equipment not listed EVERFOCUS 54 EFV-358 DC 3.5-8 MM DC CS 1/3 $ 40.00 $ 34.89 $ 43.04 Varifocal Auto Iris Lens 55 EFV-550 DC 5-50 MM DC CS 1/3 $ 60.00 $ 57.33 $ 75.00 Varifocal Auto Iris Lens 56 Percentage Discount from 15°/o 17% 39% EVERFOCUS's Retail Price List for parts, supplies and equipment not listed GANZ 57 ZC-NH258N 1/3" True D/N Camera $ 200.00 $ 158.42 $ 140.15 58 ZGDN5212NHA Mini-Dome $ 310.00 $ 272.4] $ 260.00 59 ZC-DN5840NHA Mini-Dome $ 400.00 $ 318.00 $ 356.50 (zoom) 60 ZGOHS Mini-Dome Housing $ 105.00 $ 78.65 $ 75.50 61 ZC-YHW701N 1/3" Wide-dynamic $ 310.00 $ 249.61 $ 290.00 camera Item # 3 (]0-083pr455tab.doc) Attachment number 1 \nPage 5 62 Percent Discount from GANZ's Retail Price List for parts, Supplies and equipment not listed. 40% 44°/o 40% TOSHIBA 63 32AV502U Flat Panel Monitor $ 600.00 $ 406.60 $ 622.00 64 VRG-VPSW103S2 Monitor Wall $ 189.00 $ 42.80 $ 140.50 Mount (TILT) CYREX 66 I CAVD-16/ CATS converter AMER.COM 67 SD8N Switch $ 600.00 $ 90.00 $ 763.98 $ 35.52 $ 670.00 $ 76.00 MISCELLANEOUS (Quoted in Plenum Formulations) 68 RG-59 Coaxial Cable, 95% copper $ 280.00 $ 23426 $ 209.50 shield with bare copper center conductor, 1000' roll 69 RG-6 CoaXial Cable, 95% copper $ 300.00 $ 373.50 $ 260.00 shield with bare copper center conductor, 1000' roll 70 CATSE Patch cords $ 1.00 $ 1.00 $ 2.00 71 RG-59 l8/2 Siamese Cable $ 360.00 $ 339.95 $ 445.00 72 CAT SE 18/2 Siamese Cable $ 600.00 $ 725.64 $ 650.00 73 18/2 Cable, stranded 1000' roll $ 85.00 $ 91.87 $ 96.00 74 CD-CPF1UG882 BNC Twist-on $ 200.00 $ 129.47 $ 150.00 Connectors (lot 100) 75 70" Vertical Equipment Cabinet $ 1,900.00 $ 154.80 $ 300.00 Standard 19" racking 76 650VA, UPS (Uninterrupiible Power $ 120.00 $ 435.36 $ 125.00 Supply) Back up 77 54" Vertical Equipment Rack/Cabinet $ 1,600.00 $ 1,458.06 $ 280.00 MISCELLANEOUS (Quoted in Non-Plenum Formulations 78 RG-59 Coaxial Cable, 95% copper $ 180.00 $ 11613 $ ll 5.00 shield with bare copper center conductor, 1000' roll 79 RG-6 Coaxial Cable, 95% copper $ 200.00 $ 162.75 $ 150.00 shield with bare copper center conductor, 1000' roll 80 CATSE Patch cords $ 1.00 $ 1.00 $].00 Item # 3 (]0-083pr455tab.doc) Attachment number 1 \nPage 6 81 RG-59 18/2 Siamese Cable $ 260.00 $ 157.19 $ 245.00 82 CAT SE 18/2 Siamese Cable $ 500.00 $ 327.26 $ 300.00 83 18/2 Cable, stranded 1000' roll $ 85.00 $ 63.39 $ 75.00 84 CD-CPF]UG882 BNC Twist-on $ 200.00 $ 129.47 $ 140.00 Connectars (lot 100) 85 70" Vertical Equipment Cabinet $ 1,900.00 $ 154.80 $ 335.00 Standard 19" racking 86 650VA, UPS (Uninterruptible Power $ 120.00 $ 435.36 $ 119.00 Supply) Back up 87 54" Vertical Equipment Rack/Cabinet $ 1,600.00 $ 1,485.06 $ 300.00 Item # 3 (]0-083pr455tab.doc) Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Approve the Conditional Assignment of Lease for room 8 in the Municipal Beach Marina from Bruce Littler, d/b/a Jolly Roger Coffee and Ice Cream, to Anthony Ferrandino, d/b/a Jolly Roger Coffee and Ice Cream and authorize the appropriate officials to execute same. (consent) SUMMARY: Bruce Littler has advised he is retiring and selling the Jolly Roger business to his manager, Anthony (Tony) Ferrandino. The Jolly Roger lease was renewed on November 22, 2011 and will expire on September 30, 2014 or 2015 if the one—year renewal option is exercised. Mr. Littler requested having the transfer effective on May 1, 2012. The monthly rent for room 8 is $806.24 per month, plus tax. The tenant pays $24.68 per square foot for 392 square feet. The tenant also pays six (6) percent of yearly gross sales exceeding $350,000.00. A three (3) percent rate increase is added the beginning of each lease term October 1 st. Under the terms of the lease, the lessee is responsible for all improvements, maintenance, insurance, taxes and utilities for the rented space. Mr. Ferrandino will assume and agree to perform all covenants and obligations of the lease agreement for the remainder of the lease term. Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager ED 5) City Manager 6) Clerk Cover Memo Item # 4 Attachment number 1 \nPage 1 CONDITIONAL ASSIGNMENT OF LEASE In consideration of the sum of One Dollar ($1.00) and other good and valuable considerations, the undersigned, Bruce Littler, Inc., d/b/a Jolly Roger Coffee & Ice Cream hereby sells, transfers and assigns all of its right, title, and interest in and to that certain lease dated the November 22, 2011 by and between the City of Clearwater, Florida, a municipal corporation, as Lessor, and the undersigned, as Lessee, to Anthony Ferrandino, d/b/a Jolly Roger Coffee & Ice Cream, effective as of May 01, 2012 which said lease covers Room 8, located on Lot 10 of CITY PARK SUBDIVISION, Clearwater Beach, Clearwater, Florida. IN WITNESS WHEREOF, Bruce Littler, d/b/a Jolly Roger Coffee & Ice Cream through its offices have caused this 2012. Witnesses: instrument to be executed this day of , Bruce Littler, Inc. Bruce Littler, President This Assignment of Lease is conditional upon approval of the Clearwater City Council. Page 1 of 3 Item # 4 Attachment number 1 \nPage 2 CONDITIONAL ASSUMPTION OF OBLIGATIONS UNDER LEASE The undersigned, Anthony Ferrandino, d/b/a Jolly Roger Coffee & Ice Cream, in consideration of the above and foregoing Assignment of Lease to him, and in further consideration of the consent thereto by the City of Clearwater, Florida, hereby assumes and agrees, beginning May 1, 2012, to perform each and every covenant and obligation as predecessor-in-interest, Bruce Littler, Inc., d/b/a Jolly Roger Coffee & Ice Cream, under the Lease that was effective November 22, 2011, and for the remainder of the term thereof. IN WITNESS WHEREOF, we have hereunto set our hands and seals this day of , 2012. Witnesses: Anthony Ferrandino This Assumption of Obligations Under Lease is conditional upon approval of the Clearwater City Council. Page 2 of 3 Item # 4 Attachment number 1 \nPage 3 CONSENT TO ASSIGNMENT The City of Clearwater, Florida, a municipal corporation, the Lessor in the above described lease agreement, hereby consents to the foregoing lease assignment to Anthony Ferrandino, d/b/a Jolly Roger Coffee & Ice Cream from Bruce Littler, Inc, d/b/a Jolly Roger Coffee & Ice Cream and releases Bruce Littler, Inc. from any further obligation to the City of Clearwater under the aforementioned lease agreement. IN WITNESS WHEREOF, this consent has been signed by and through the proper officials of said Municipal Corporation, this day of 2012. Countersigned: George N. Cretekos Mayor Approved as to form: Camilo Soto Assistant City Attorney CITY OF CLEARWATER, FLORIDA : William B. Horne, II City Manager Attest: Rosemarie Call City Clerk Page 3 of 3 Item # 4 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Approve the Tenth Arr�endment between the Chi Chi Rodriguez Youth Foundation, Ina (Foundation) and the City of Clearwater (City) for the operation of the Chi Chi Rodriguez Golf Course and Driving Range and authorize the appropriate officials to execute same. (consent) SUMMARY: Beginning in 1985 ihe City and Foundation entered into an agreement to provide education and assistance to at risk youth in the community through the operation of a golf course and driving range located on McMullen Booth Road. The original agreement has been amended nine times for a variety of reasons. This Tenth Amendment is currently being recommended to continue the positive relationship between the City and the Foundation in accomplishing their mission to mentor at—risk schoolchildren through after—school and summer progams as well as providing an affordable golfing experience for the citizens of Clearwater and the Community. Since the last 2 amendments, the Foundation has invested over $490,000 to renovate the driving range on the east portion of the property and developed it into an attractive public family oriented sports complex that provides additional recreational opportunities to the public. Additionally, the Foundation averages over $300,000 annually from the proceeds of the golf course to offset expenses for the Foundations cooperative school and other at risk programs. Section 2 of the Eighth and Section 3 of the Ninth Amendments have a provision whereby the Foundation will begin paying 3% of their gross income to the City beginning in November 13, 2010 and extending until the end of the agreement November 12, 2025. This amount is approximately $46,000 per year or $690,000 over the life of the agreement. Staff is recommending that provisions of Section 2 of the Eighth Amendment and Section 3 of the Ninth Amendment be deleted and that any rent accrued since the provisions became applicable shall be waived. This will allow the Foundation to more successfully accomplish their mission as well as provide for improved facilities for public use. Review Approval: 1) Office of Management and Budget 2) Lega13) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo Item # 5 Attachment number 1 \nPage 1 TENTH AMENDMENT TO AGREEMENT WITH CHI CHI RODRIGUEZ YOUTH FOUNDATION, INC. This Tenth Amendment to Agreement with the Chi Chi Rodriguez Youth Foundation, Inc. (the "Tenth Amendment") is made as of the _ day of , 2012, by and between the City of Clearwater, Florida, a municipal corporation (the "City°) and the Chi Chi Rodriguez Youth Foundation, Inc., a Florida not-for- profit corporation (the "Foundation"). WHEREAS, the City and the Foundation have heretofore entered into that certain "Agreement", dated November 12, 1985, as amended by the "Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc.", dated March 5, 1987, the "Amendment to Agreement", dated February 16, 1988, the "Third Amendment", dated November 20, 1989, the "Fourth Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc.", dated November 1, 1990, the "Fifth Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc.", dated March 30, 1992, the "Sixth Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc.", dated May 21, 1993, the "Seventh Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc.", dated August 1, 1998, the "Eighth Amendment to Lease Agreement", dated March 8, 2000 (the "Eighth Amendment") and the ��Ninth Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, INC.", dated August 14, 2007 (the "Ninth Amendment") (collectively, the "Agreement"); and WHEREAS, pursuant to the Agreement the City leased certain property to the Foundation; and WHEREAS, the Foundation developed and operates a golf course on the leased property ("The Chi Chi Rodriguez Golf Club") that not only furthers its mission to mentor at risk school children through the provision of after-school and summer programs ("Chi Chi Rodriguez Academy" or the "Academy"), but also provides the opportunity for affordable, recreational golfing to citizens of the City as well as other members of the public; and WHEREAS, the Foundation's actions in cooperation with the Pinellas County School District have resulted in an on-site, high-scoring school with 11 professional educators serving at-risk children in grades four through eight ; and WHEREAS, since April 2009, the Foundation has transformed a run-down driving range on the east portion of the leased property (the Chi Chi Golf and Sports Complex ") into an attractive, public, family oriented sports complex that provides additional recreational opportunities to citizens of the City and others through the investment of cash and in-kind donations in an amount in excess of $490,000, which investments were not contemplated at the time that the Eighth and Ninth Amendments were entered into; and WHEREAS, the Foundation averages annually $300,000 per year from the proceeds of the golf course to offset expenses for the Foundation's cooperative school and other at risk programs; WHEREAS, the parties desire to amend the Agreement; NOW, THREFORE, in consideration of the premises and other consideration, the receipt and sufficiency is hereby acknowledged by the parties Item # 5 Attachment number 1 \nPage 2 1. Recitals. The foregoing recitals are true and correct and are incorporated in and form a part of this Agreement. 2. In consideration of the benefits to the facility, golf course, at risk children and the citizens of the City of Clearwater in the form of the Foundation's improvements to the Chi Chi Golf and Sports Complex, and maintenance thereof, and monetary and in-kind contributions to the Academy, the City hereby waives the requirement for rents due under Section 2 of the Eighth Amendment and Section 3 of the Ninth Amendment. To that end, Section 2 of the Eighth Amendment and Section 3 of the Ninth Amendment are hereby deleted in their entirety from the Agreement, shall be of no further force and effect, and any rent heretofore accrued since the subject provisions became effective is hereby waived. 3. All of the terms and conditions of the Agreement which are not expressly amended or deleted herein shall continue in full force and effect. CITY OF CLEARWATER, FLORIDA By: William B. Horne, II City Manager Approved as to form: Laura Lipowski Mahony Assistant City Attorney CHI CHI ROGRIGUEZ YOUTH FOUNDATION By: Countersigned: George N. Cretekos Mayor Attest: Rosemarie Call City Clerk Item # 5 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Approve an Exclusive Non—Alcoholic Beverage Agreema�t with Coca—Cola Refreshments USA, Inc., in accorchnce with Request for Proposals 28-11, to provide full service beverage �nding machines and products within city facilities, approve a Termination, Release and Indemnity Agreement, terminating the current Exclusive Non—Alcoholic Beverage Agreement with Coca£ola Enterprises, Inc. and authorize the appropriate officials to execute saine. (consent) SUMMARY: In 2001, the City entered into a beverage agreement with Coca-Cola Enterprises for a term of ten (10) years. The 2001 agreement provided for a carryover of the term should circumstances require, in order to reconcile revenues earned to revenues paid under the agreement. The parties have now reconciled commissions due under the existing agreement, and Coca-Cola will continue service until the City enters into the new agreement under Request for Proposal (RFP) 28-11. On September 9, 2011, the City issued an RFP for an exclusive non-alcoholic beverage vendor for a five-year period to begin June 1, 2012 and ending May 31, 2017. The City solicited a vendor to provide full-service vending machines at 46 locations, a price schedule for discounted products to be sold to the City and its Concessionaires for consumption or resale, and a licensing payment provided by the vendor for exclusivity. The City received two proposals: Pepsi Beverages Company and Coca-Cola Refreshments USA, Inc. The applicants were reviewed by a Selection Committee comprised of the following: Kevin Dunbar, Parks and Recreation Department Director Felicia Leonard, Administrative Support Manager, Parks and Recreation Department Robin Gomez, City Auditor Kayleen Kastel, Senior Accountant, Office of Management and Budget Brian Craig, Recreation Program Coordinator, Parks and Recreation Department Monica Mitchell, Assistant Finance Director, Finance Department Laura Mahony, Assistant City Attorney, Legal Department The proposals were evaluated based on successful experience, longevity of provision of services, a price schedule for discounted products, a proposed Licensing Payment, and proven financial stability. Based on the evaluations, the Selection Committee recommends Coca-Cola Refreshments USA, Inc. Coca-Cola Refreshments USA will provide service vending machines, a discounted price schedule for City and Concessionaire purchases and a Licensing Payment of $162,500 to be paid in 5 annual payments of $32,500. Bid Required?: Yes Bid Number: 28-11 Other Bid / Contract: Bid Exceptions: None cover Memo Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Purchasing 5) Assistant City Manager 6�t���nager 7) Clerk �)[CLf�51V� NC]M-A�C��QLIC E�EIIERAGE V�NDING A�RE�M�MT This Agreem€�nt �„A�r�err��nt"} is �xtade and ente��d int� �"E�ecti�re D�t�"} by anc� betwee� t�e City �f Clean�vater, Floroc��, ���a�icipai c�rpar�tio� Qf the state c�f Flr�r�da, whase addr�ss is �'l2 �. Oscec�la Ave��e. Cle�rwater, Fl�rida 33�'�� �`�City„} and Coca-C�I� R�f��shmen�� USA, �r�c. , a�}elawa�� corpc�ratian, w�ose address is 295D Gandy Br�dc�� Bivd, 5t. F'�t�rs�urg; �L 337(�2 {"Ve�d�r") (�ach i��Iivid�ally referred to �ereir� as "�arty" o� cfll�ecti��ly as the "Parties"), �ECITALS WF-I�I��AS, th� City currently aperates a�d m�i�tai�s 1 U�9 acr�s af par�s ar��f r�creation ar�as, IU�C3L, a� well as at%�r City�t�wned ��ciliqi�s such �s libr�ries, �c�Iice and fire stations w�thin its cor�aorate baur�dari�s ["�Gifiy F�cilities"}, an�, WHE�2�A�S, the City wishes to prc��ide quafity am�niii�s to its citizens �r� t�re cou€�se c�f their uti�9izing City Faciliti��; ar�d WF�EREAS, �he �ity �as issued a r�qu�st f�� �rop�s�ls {:`RFP"j to identffy � qua9i�i€�d beverage vendc�r �a provide fuli s�rvice f�everage ve�tdir�g rr��chin�s and p�'nd�cts v�rithin Ci�y F�ciliti�s �s it de�ms app�opri�te; and W�iEi��P�S, lf�r�dor success��liy re�ponded to �he RFP a€�d wishes �� provide its pr�ducts and s�rvi�es t� City Fachlities ar�d th� c€ti�e�s af Clearwater. NU�111' TH�RE�C�I��, ic� c�nsideration �f dhe mutu�( cc�venants s�t for�h h�r�in, ar�d �ther good and val��bie consid�ration, the receipt c�f whicf� �re her�by ackncrwiedged, th� Parties agr�e as fc�ilaw�: � 1.t} DEFINITIt]NS � � 1.1 Bewerage�sj: �everag� �r Beverages shal� mean a!I n€�n�a6c�h�lic �' beverages Qf any kirod ��cludir�g cancentrated ener�y drinks in srnali s�rvings �n� the �ar�:-rr�ix a�rdlt�r post-mix syrups us�d to prepare fa�ntain Bevera��s. B�verage ar Be�erag�s �It� �o� i�tclude r�`iilk, f�es� brewed co��e, fr�sh br�w�d tea, freshly squ�:�zed �u�c� and w�t�r drawn �rc�m the public water supply. 1.Z City €ven�s� �City Events ir�ckude events: a} hosted by th� Ci�y of �C1e�rw��er, b} prc�t�uced by �he City �f C��arwater, an� c} Sp��i�l �vent� �n which the City retains the r�g#�t to prr�vad� nan-alco�a��ic Be�verages, further c����in�d as f�llav�rs: C`�as�iti�u� - �._�<s��iiclei�ti•aI a. Hosted ever�t5 incfuc�e, but are not Iimited tt�, everot5 t�at tak� piace �t City �aciPities, includin� re�te�ti��r �enfer re�tals, cQr��eren�e�, m��ti�gs and employ�e events. b. Produc�d e�vents are specia9 ev�nts �hat are produced '�y th� City crf Gl�ar-w�ter Parks anc� Recreatinn ��partment. In FY Zfl1(�-2�11, �hese ev�nts included Cl�arwat�r Sea-B�u�s F�st�vaf, Fun 'r� Su� F�stiv�l �Smoath Ja��, QFes# and �auntry), Hispanic Herit�ge ���t�v�al �nd C�i�arwater �elebr,a�es Am�ric�. These ar� st�bje�t tc� chang� annu��ly. Annually, th� Cg�y wi�l suk�rnit i�e fist o� �vent� to Vencfor upan City CQUr��il apprc�v�4. T�a� Cit� r�s��'ves th� righ� t� madi�y khe �ist �t ar�y tirs�� thraughout th� Agreem�r�� Term. c. 5�ecia� �ue�ts in which the ��ty retains the r�c�h� ta �rovid� r�or�-a�coholic Be�ver�ges. As p�r the Ci�y cor��r�etu�l �elat�Qnshi�s, the City has retain�ed rig�ts t� �rovi�e non-alc�hc�lic Bev�rages at select �v�nts. �n FY20� 0- 2�l'� 1, t�ae �v�nts w�re 1�5� Se�i�s, Christmas U�der th� Qaks and M�les fr�r �ic�pe. Thes� are subject to change �,nnua�ly. Anrr�ally, the C�ty wili s�iamit tf�e lis� of events upon �ity Ca�ncil approval. The ��ty res�rves the right t4 modFfy the li�# at any ti�ne thro�ghout t�� Agreerner�� T�rm. `�,3 City �a��iit���: �Ci�y Fa�i�iti�s includ�s prc��e�ty owned an�l oper��ed by ihe City ofi Clearw��er. �r�r purposes c�f t�is Rgreement, Ci�y F�cilities da�s nc�� inciud� pr��ert�es ownec# by the Ci�y af C�ea�rnrate�-, but o��rat�d by third par�ies. 1.4 Conc+�ssi�n�ires: Concessic�n�ires ar� organ�z�tiflr�� t�tat hav� permissi�n to selV }�evera�es �tilizing Ci�y Facilit��s andlar City �c�nc�ssion building�. Tf�e curre�af 201'� Co�ac�ssior�aires �re glazin' R��renz; Clearw�ter Ar�ua�ic T��m, Clear�va��r B+�llets, Clearwat�r �ittl� �ea�ue„ Ciearwat�r �ady Bc�mbers; Cl���uater Youth LacrQSSe, �t��r�tryside Jr Cougars, C�untrysic�� Little Lea�ue, C�earwate� Jr Torn�dos, �re�n�nropd P��sif�ers: Clearwater �asket�all � C�u�b �r�d Cle�rw�ter C#��rg�:rs. P�-esent(y, Gancessi�an�ires sefl bev�er�ges at � Eddi� C. Maore Sc�ftbal! Com��ex, Jt�e �iM�c�gia S�c�rts Complex ��d Sid �ickion � F�eids. The �ity expressly reserves tfi�e right is� a�id c�r c�e�e�e Cc�nc�ssi�naires. rn '[.� [?irect �'u�chas� �'roduct: Qisco�anted ,�re�duct �ravid�d �y the Ver�da� �o i�� City a�d its Cc�ncessior�a�res far c€�nsumpt�crn or res�ie. i.6 �'��mitt�d �ev�rage Products: �'ermittec� ge�rerage Pr��f��fis �r� beve��ges that hav� a�p���ra� by th� City a� Cl�arwa�er, �s �n�y �e amer�ded f�-c�m tim� to time u�or� mutuatl written agr�emer�t c�f the P�rkies a�c� that are purchased di���tly fr�m B�ttler a� sofd thra��h ver�dir�g m�chEn�s �wned and s�nckec� exclusiv�ly by Battler. � C'l��s�ifi�ti - C�cra�fi�f�z�ti��i 'I.�' Pr����g Schet#�I�: The Prici�g Schedu€e, �xhibit A, cor�tain� � list af prc�poseci P�rr�i�ted �ever�ge Prc�ducis wi�h c�arrespont��ng prices that wi9i apply t�o dir��t �urch��ses made by th� City of Glearwat�r ��d its Cc�c�cessianaires. 'I,8 Lic�nsing Pay�rt�r�t: The �.ic�nsing Payment is the �r�r��ual paymer�t rendered ta t�e City of Clearww�t�� by t�� Venc�or un re�urr� �ar th� righ#s ��ticuC��ed i�r� the 5cc�pe of Cantr�ct (�.a}. Th� first �ayment will �e made ak the Ef�ective Date �f t�� A�re�ment �nd wifl be due arrnually �� the anniversary� c�f the Eff�ctive Date. '1.9 �gre�rr�er�� Y�a�: Shal! mean e�c� tw�fve-month period d�ring the �erm f�egir�r�ing v�rith t�� �irst day c�f the Terrn. �.�D SCOPE C}F COMTRACi 2,°i Senrices: Ve�dor sha�l provide full-service vending rr�ac�►ine serv�ces for the safe c�f Permitted �ever�ge F�roducts at desi�n�ted City Fa�ilit�e�. V�ndor's serv�ces shafl incl�d�; �ut not be lir�-di�ed to, fur�tishi�g prc�c��ct �as requi�ee#), stockirtg ve�dirrc� machi�e equ�pment, c4�lecting all revent�e, serw+icing ���i r��intatning equip�ner�t. 2.� �x�l�sive Right�: V�ndar s�al] haVe th� exc�usi�re right to m�ke Permitted �ever�ge P'roc��cts �v�ilabl� f�r sal� arrd c�istri�ution at design�t�d locatio�s at Gi#y �ac�lrties #hrQ�gh fuil-service �+�nding �ocatinns [�xh�bit �), and �i�y a�rees t�+at Vendor's products wiil be the exclusrve �'ermit�ed B�v�r�c�� F�r�ducts s�ld, dispensec�, s���ved c�r samp6ed at �il City Ev�ents ar�dlor City Facilities w�e� �uch pr�ducts are �ein� soid �r �r�nsurned �y the Cuty �f Cie�rwaf�r ahd its C�rac�ssion�ir�s. C�ty-owned pr���rti�s tha� are aperated by t�ird parties anc� a�� ther�fore �r�� ir�c�uded i� t�e c�e�irautic�n r�f City Facilr�ies fQr purpc�ses �f this Agr�e�ent sh�l� nc�t be su4�ject tr� Vendc�r's �xcl�siv� R�ghts. � �.3 Except`�� tt� Ex�ft�sivityr: This �rc�visi�� dt�es �ot apply to Perrnitted � �3�verac�e Praducts, or a�y other {��ac�uc�s, tha� �re purc#�a�ed by em�l4yees af � ar�d v�sitors tr� Gity Faciliti�s fi�r persor�al cansumpti�n. rn 2.4 �]i�-ect I�urc��se R�quiremer�t�: C�ty �gr�€�s that vvherr �ity or its Concessic�r�aires serv�, �istri��ate �r seil Permitt��1 Bevera�e Pr�ducts at �it� €vents �r�dlor Gity Facilities, Gity o� cts Concessionaires sh�#I p�r�h�se Perrnitted Bever�ge Prod�ct� direc�ly from Vendt�r fia� a�c��rs i� exces� �f $� D. Vendar uncl�rsta��s th�t �i�is abligat�an daes nat �pply ta person� or arganizatbons �ver w�i�h t�n� City has; far wha�ever reasons, no cc�r�trml. �.5 Access ta C�ty Nlar�C� and Lvgos; V"endar �rr�ay �se the offecral CitY logo� ��d tradem��ks ��a a roy�lty �ree bases, �xclus�ve for �ev�cag�s, ir� conn�ctiar� with ti�e pr�motion o� V�ndor's E��ver��e�. V�ndc�r sh�ll obt�in �he ����ltitil�ll'l� - � t111�lt�ii7ti�1� �ity's wr's€ten apprQVal in ac�ardance wit� the Ci#y vf �learwater Cc�de �f C}rdinanc�s, Ci�r po�i�i�s, or �ther applicable rul�s ar�d guid��ines. 3.0 TERM Th�e t�rm of this agre�m�nt shaal be fc�r fw�e (�} years, �ocnmec�c�ng on Jun� 1, 2012 �the "I��e�tive ❑ate"} ar�d conti��i�� through �ay 31, 2�17, unless earlie� termrn�ted as h�reir� p�ov�ded. As u��d �erein, th� term ,Ag�eement �'ea� shall rrae�n ea�h twerv� �12j mon�h �er��d d€�r�ng th� ��;rm, cvmmencing on t�e Ef�ective Ua�e. 4.0 P�I�CI�VG Th� F'ricing Schedule, Exhibit A, c��n�ai�s a�ist e�f ��rrraitted Ve�r�inr B�verag� producfs that wi�l be �rovided for d��ee� �u�chase by the G9ty ar�dlor its Concess��naires f�r use nr r�saf�. If �ny n�w Vend�� B�ve��ges are 4ntraduced, ths Vendor must suhrnit ad�itic�nal Ve�d�r B�v�r�g�s pri��ng ta t�e �ity. l`h� +City r�ay ir�clude �h�se Ven�ar B��rerages ta �he ap�rQVe� list �t ii� discr�t�ca�. l��l rates �re firm fo�- the first A�re�ment Year. �a� the s�ca�ad, thirc�, fourth and fi�#h A�r��ment Yea�rs, t�e rates r�ay be increased or d�cre�sec# a�cv�ding to t�� arrnual e�rang� in �he 1���1 Consurn�r Pric� Ir�de�x �CPf), at the anr�ua� �n�iversary of th� co��rac� date. An}� increas� m�st be reques�ed by t�e V�ndor an� ��pro�re�! by th� C�ty. Should the CPI be �sed, the fv�lvwi�+g wc��ld a�p�Y: �GPI inc�ease sha@! t�e calculat�d fay €asir�g the �ercent�c�e change between ihe pr�vi�us year and ihe �ur���t year's Cl�l, pu�1�s��c� by th� U.S. D�part��nt af �ab�r's B�r��u o�€ Labor S�atistics� The specific inciex io �� rev�ew�d is the GPI f�r Tarnpa-Clearwaier-St. �'etersbu�g fvr Ju�y of each y�ear �sing t#�e'`S�eciaJ � Aggr�gate I��ex categc�ry of "`�,I� items �ess Shelt�er" und�r the "A�I Urb�n � Cans�r�ers" caiumr�. � �' Vendar s#�a�l prt�vi�te the be�rerag�s identified +on t�� Perr�ifle�i Bev��age Prc�du�ts Iist tfl City or i�s Cr�r�cessior��i�es a� the pri�e� s�t fr�r�h on �h� "`Pri�� Sche�uie,,, w�ie� is attach�d to this agreement a� Exhib€t A. S.a EKISTlNG AC�REEMEM7S �y ex�c�tio� vf this Agr�em�n�, Vendor expressiy agrees that a�y cantra�ts r�r ot'��r arrangementsF whett�+�r writtert vr �r�rbal, �h�# cur�-�r���y exis� ar that Vendar b�iieves may h�we �revia�sly existe�i between Vencl�r and C��y or any e�f its Cc�r�cessior�ai��s, depar�ments o� pers�nr��l �eg�r�ing bev+�ra�� s,ales, �dve�t�sing, gift� o� dvr�ations, past, �rresent, �r future fir��n�c�al cor��rib�t�ir�ns and suppc��t in the Ci�y, artd all abl�gati€�ns a� the C�ty a��i Ven�ar arissng fram such �€ C9assified � Con�dential relatior�sh�ps, if ar�y, are ��tc�matical9y termin�ie� as of t�� �ffective Date of t�ds ��re�men�. �leith�r C�ty nor l/endar shall have any fu�he�` obligati�ns ��de� s�ach �reexisting �eantracts Qr arrang�r�er�ts. S.0 LA�ELING fi,IC i�gredi�nts mus� be decl�r�d an the product lab�l, as re���ired by th� �c�s�� ar�d �Qr�g Admsr�istr�ti4n. A�I pr4�ucts provided ar� req�ired ta carry j�gible, op�n coc3e dati�g or� �ach� ca�, �ott�e �r c�se, and m�st ine�icate �ack c�de c�r expiratiot� d�t�. If any cc�de �� encryp�€�d, Ver�dar rr�ust provi�e t�� k�y frc�rn the mar�uf�cturer to d��ocie t�� in�ormat�Qrr. i.Q �IJBLIC R�CVRC311[NFf�RMATIC,�hI l��QIJ�R�l�7ENTS Ur�iess €�therwise requir�d by law, all agreerr��rrt �erms, cc�r�ditior�s, a�fers, �nd d�sclr�sur�s, as we91 as ir�fit�rr�ation or discic�sur�s �r�sing o�at �f t��s agr�ement, shal� b� deemed �ub�i� inf�rm�tiorr as provid�d for in Flc�ri�a St�tu��s Ch�pter 119. As �uch �hey may b� ��bje�t to r�l��se as p�abl�c re�a�ds, Cit� shall r�ot in any w�y be lia�le ia V�ndor fc�r the disclosure a� a,ny such recards, a�d City assum�s �o obl�g��ion �r respc�r�sibility fc�r asserting leg�l ar�ur��nts �an Vendor's be�alf, �.� �ERVIC� AND i]�LIVERY REQUIF��M��T5 $.1 'J�nding Machin� Sal�s: Th� ser�r�cing �f v�ndin� m�cf�irtes fnr �'estockir�g, maintenance and repair mus� occur during hc�urs that the Cigy F�cili�ies are apen and avail�ble for pu�Gc use �n�ess c�th�rwise �uth�rized by the City c�f Cie�rwate�. �.2 DireGt P�rcF��se ��I�s� AVI p�-caducts desigrr�t�d for direct purchase sh�all be de�iv�red as re�ues�ecl by� t9�� Ci�y andlar its Cc�nc�s.sior�aires�. lnvc�ices � shoult� �ccor�-op�ny t�e deli�+�ry. !n the e�ent the Vendc�r is unakale �❑ s���iy the � re�tae�t�d p�oduct ta the City an�lor its Cc�n�essianair�s, tl�e �Cit�r r�serves �i�e � right t� r�a'�e a p�rmitted heverar�e p�rchase frar� ar�rather V�ndc�r. Th� City rn �ndl�ar ��s Co��ess��naires wiil ord�r pr�duc� fra� Vendar at i��st 7� �ta��s priQr to request�d c�eliv�ry. 8.3 �egulatory S�ar�c�ards: City reserv�s the ri�ht tta re�ect any� prod�tcts, �up�li�s and equy�ment thaf are ur�s��e far their inte�ded use nr faif ta m�et es��blisi�ed F�A �r�d USHA heaith and saf�ty requirerr��ents a�c� sta�rda�ds. �.� ErnpFvyee C�r#ifi�at�on: V�nc��r s�afl certify i� wri�un� that al9 Qf i�s em�loyees �nc� a�l s�beo�tractc�r's �mpioy��s, presen� �r ne�nr hir�s, h�u� nat b��� c�nvict�d af � fel��y or are �waitir�g adj�r�ication af sam�. �his c��ificati€�� shalT be prr�vid�d �y 1lendr�r to Ci�y pr�ar to �ny o'f Ver�d4r's er�ploye�s, ar ; � itititilfll'�:I - {_�t111�ICI�lllli]I Ve�dor's s�bcr�ntr�ctar's empiaye�s, carnir�g in cont�ct wit�r a�y C�ty p�rs�nnel c�r custnmers. $.5 Em�rg�n�yr D�livery: In t�e event of ��ro{�i�a�l st�rrn sy�t�m �t�r �ih�r ers�erger�cy as deemed by the City Ern�erge�cy aperations),'v'en�or rrt�ast pravide ���r (4� pa�lets of b�ttVed wate� praduct to a d�sigr�ated st��ag� faciiity, provided that it is safe ta deli�er �c� �he design�t�d stora�e f�ci�ity, as re��ested kay the C�ty w�th � rnic�imum fl� fQr�y��ig�t (4$} h�urs notice, J.0 IN11C31C�S AND �AY��VfENT� FD� C31��GT PI�RCHAS� PR�Dli�T°� Dehivery slops or invaices f�r direct del6�ery prc�du�# sales rn�st be furnished aa� t�e s��ne day o� d�livery. Payrn�r�ts to '�er�d�r will b� m�d€: Net t�ir�y ���7} c�ays �par� rec�:ipt of ll�ndor'� ir�voice fe�r t�e �revGc�us rnanth's billing period. Credit rnemo� shafl be issu�d i�r � reason�b9e time �ut n�t tr� ex�eed ti�irty (3�} days from t�e d�t� �f r�t�rn praducts. 1�I,D RESP4NSl�IL°CY FflR F'R+D�3lJGT�. IVIATERIAL. AND �Ql1t'P1911EfVT 1Jenclor shali be res�ansib�e f�r ali prgd�c�s, rr�at�riais �nd equi�m�nt i�cludi€�g the Ic�ss. destructiQn o�, c��- �am�ge to �h� products, m�teria�s and �quipment until they ar� deliver�d and �cc��ted by Cit�r �t #he d�s�gnated delirr�ry p�i�t, regardl�ss af the �aint of �nsp�ction. Afker �ielivery tc� and accept�n�� by th� G�ty �f the ec�uipment a�- k�ev�ra�e products speci�i�d i� �h�s �gree��-rent, Cify s�al! b� respc��tsible, �o the limits �af �"lo��d� St�t�ie 7�8.28. ��r the �oss o�- tf�sttuction of r�r c#amage tr� t�e equ��rr��nt or s�a�aplies Qr�ly Ef such Iflss, c�estructiort, �r damag� results from the �egligenc� �r wil'Ifu� rniscc�nduct of �fffcer�, �gents, or emplayees t�f C ity. 1'�.Q EQUIPf�lENT � Tf�� Vend€�r shal9 be sal�ly respat�sible fc�r the piac�m�:nt ar�d o�erat�or� o� full- � s�rv�ice vendin� rr��chines at 9�a�cat�c�ns desig�ated by the City at ��ty ��cilities. � Loca��c�ns for E��ipmerr� rn�y &�� �ieleted 4r �dde�l to by th� V�ndor u�on �' appr�v�l c�f the �ity, or �y mutt�al a�r�er���t af the Partie�. All Equipment vurill b� access4��e tQ the �eneral pu�lic d�ring Facility �peratir�g haurs, �nly ta the ext�n� tf�at e�ch c�rresptir�di�g locatio� is �aper� tc� the pub�ic as �eter�nir��d �iy the Gity in it� sc�le e�iscreti��. �f it become� necessa�y tca mc�ve any of the Equiprr�er�t fa� a�y r�asat� (far e.g. Ir�w tra�fic ar�a, minim�l s�les, etc,�, C�ty and Ve�dor wiil ac�r�e tfl �n alterr�ative ic��atian, ��d Venc�c�r sh�ll ��e� mc�ve su�� �q��pment tc� the mut�al4y agreed �iternate �o��tit��. The Equipmen� will' at all tirr�es remain t�te prap�rty of Ven�or. �pe�i#ica�i�rts fa�r �eve�rage Iler�ding IUfacF�inelEq�i�rr�e�t �� i.'la�5i�i�ai - ��c�dili�l�ntial 'i 1.°� Energy �fficie�cy: A�I machir��s provided b� Vendar under this agreeme�t sha�l cans��r�e ene�c�y �nd r��uce ener�y rei�ted costs throu�� �r�e�gy ��ficiency. To sati�fy tE�is requir�m�r�t, Vendor ei��ter c�n insta@i machir�es with an ���:rc�y StarQ la�el (�r equivalent} or car� utilize enerr�y-�aving ��vic�s st��h �s the lfe�c��ng Mis�r� ar equivalent. Ver�dar shall incur �II costs ass�ci�ted with en��gy savanr� machines or d�vic�s. '19.Z Vending �quipmen�: At its s�le exper�se; llen�for �hail pr�vi�e, inst�ll �nd maintair� ��aff�cient ver��ir�g �quipm�nt �nd su�pf�ies necess�ry t� facilit��� the cor��in��d s�fe of Perm�tted ��vera�e Pro�iucts. f�o m�c�i�e sha91 be install�d that dc�es n�� cneet th� �nergy e�#ici�:ncy r�q�irements set fiorth abc�v�. Autam��ical�y operate�i dispensir�g m�ch�nes shalf �� �deq�atefy m�t�r�d with non-reset me�ers �nd sf��l� ca��rate on AC-11(� voi�s. ihe rnachine� s�ral! h� daub�e i�rsulatec! or gra�nded. ACI Equ�pment s�all be �quFpped, �t a mi��mum, with dolVar va�id��c�rs and c�in-c�perat�e� mech�r�isms with cha�ge re�urn, siug rej��ctic��r and cain-r�t�rn featur�s. 11.� Vending Equ�pment Mair�tenar�c�: 1N�ile �he �quipmer�� is in th� C�ty's pvss�ssiar�, tf�e City sha�ll '�e responsib�e f�r �eep4n� aIV E�uipmen# ir� a clean and sanitary ��anditian. Mach�nes th�t ar� damaged or unsig��ly shal� be r�eportec� to Ven�or. 11'��dt�r w61[ i�sp�ct �q�ipm�nt an� if n�cessary, Vendt�r w��ll rerr�ove the Eq�ipment and determin� whether or not ta r�pl�ce it. � 1.4 �s��ripment S�a�ki�g. The stc�ckir�g of Verrdc�r's Beverages sh�l1� b� �f�e s�l� resp�nsibi�ity of the 1�'e�rdor, AI! dated ��-oduct rr�ust be f�esh, w�th u�-�xp�r�d d�t�s of �ale at all tir�nes. Vendar shalb remt�ve all expired prcaduct not later t�€an the prira�ed expiration d�te if r�c�t sold. Vendor shall k�� respt�nsible fo�- s�ockir�g ara� resta�ki�g prc�duct c�n � regufar basis or wftf�rin sev�nty-twca (72} hours af City's requ�st. � 11.5 ,A,merican� with �is�bilifiies Act: Alf vencf�ng mac'�ines sh�ll meet the � rec�uirenaen�s o� the Americ�ns wit�t Disa�ailities A�t, as r�ay �� �mended fr�m � �ime tc� time, �n th�t �II �c�ntrol� mus� be located taetweer� t�va (�} and f��r �4} feet fr�rn �ro�ar�d lev�l. �'�.fi Refur�ds: Vend�r sh�fl �e res�aor�si�{� for �!I reiun�s. Vendrr shall se� �side a minimur� �f fiv� dollars �$5) per lo�at�t�n for passibl� refunds. This f�snd sh�ll be check�e� period�ca9ly tca e�sure the minimt�m i�vel. Uendor shall ��avide e�ch laca�io� wit� a f�rm ta accc�u�t f�r �r�y refurads. �t a rr�inimum, this fc�rm shal� contairr fi��ds to enter if�� r1a�e, refunded am�+unt, name of pers�n rec�ivic�g refund, reason f�r r�f�ne�, and the seria! number of fihe mac�in� inv��v�d. 11.i ���ipr�en# Lr�an: Ven��r shall loan e�uEpm�nt, i� avai�aiale> to th� G�ty af Clearwater for ��e at City Even�s. This e�uipment ir�clud�s items such �s i L'ltGSSiI���� — C'c�t�licie:i�ti��l rner�h�nt��sing w�gc�r�s, star�d-alan� �ef��gerated coai��s> etc. a�ll requests rnust be ira writirrg �orty-five {4�} d�ys pric�r t� any City Ev��t. 92.� �QIJIPMENT lU�AINTE�tAI�CE ,AN�7 REPAi�t I�ES'�'D�lSE TIME '12.'� C7rdinary Maintena�ce: �uring th� #�rm of th�is Agr��rn�r�t, Ver�c�c�r shail b� respc�nsak�le fiar the arciinary m��nter��nce and re�aair of �rer��ing �quipm�r�t �nd ca�her ile�dor-awne� �quip�ent t�a� �t prpvi��s far use a� Gity ��ciiiti�:s. 12.2 F��p�ir F���pvnse Time: V�r�c#ar shall res�a�nd within �wenty-four (24} f�ours [excluding weeker�d� and �olidays} to �II cc��munic�tic�ns #rom G�ty �r �ne c�f City's ir�divid�al si�es regarding d�fective or in�pex�ble machines. Any def�c�i�re �r i�c�pera�l� mac�ine wilf b� fixed or r��la�ed v�r�thin five [5} working day�. °�2,3 �usfiradiai ��h�du�e: Gity s�alE pr�vid� all IabDr ar�d supplies and nr���nt�in an appr�pr�ate c�as#�dial �cf�ed�l� ��r �ac�a ver�ding �rea to �r�s�re t�at ail e�ui�me�t is ��pt in reasc�nably c�ean and sanita�ry� can�f�tians; �h�t �the �renc�in� �rea is r�asc�na�ly free of debris and spills; and that afl d�bris ��s rem4v�d frQ� ��� building duri�ng �c�rrnal �usin�ss hours. i 3.0 ELE�TRIGITY 13.1 El�ctric�� Power; City shalf fu�ni�h, a� na ca�t tc� Vendor, the �Iectr�c�� �o'we� n�c�ssary for th� c�peratir�n of th� v�nding r�r�chines. 11et�dr�r sh�ll provid� i�forrn�tion detailin� th� arnpe�-age of th� machines an� e��ctrical �rnsumptian. City w�ll revie�v its pow�� consurr�ptian during t�� Term of this Rgr�err�er�t, a�c! m�chines u�ilizing an ��re�sar�a�@e c��- exc�ssive amflunt of power w�lf �e repl�ced by Vendc�r wit�,in t�n (1C]) #a�siness ci�ys af Venclor's receipt af City'� noti�icatian. � '13.2 �f�c#ricai �utlets: Ci�y wi�l nc�t #�e req�irecf t� i�sta�l or r�ioca�e a�y � elee�rica{ �ut�ets or circuits �r� orde�' to pr�vide �:le�tcica� ��wer t� v�r�dinc� � rr�ac�ines �t desired l��a#ia�s. U�r�dar s�all be�r at�l costs assaciat�� with any such re���ati�r�, unl�s� s�c� �e�t�catian �s r�q�este� sc�fely by �Aty, in whic� c�se City s���l be�r ��e cost af �-e�acation. �ach insta�[ed ven�ling r��chin� sh�11 �re ca��e�ted �r� its �w� �{ecirical circ�it. Ar�y n�w electrica� circ�fits req�ir�d sh�ll b� �r��+i�ed �y Vend�r at na �ost t� City. V�nc�or rnust obtair� Gity'� priDr wratten apprflv�i for th� u�� af ver�din� machine ei�:ctr�cal cords th�� are langer t��rr five (5} feet. ��4.(i �#��3M[]TiC3N Ah�C3 AC�VERTISiNG �IGHTS City hereby c�rants ta Vendor the fo#lawinc� pr�motior� and adver�isi�g r�ghts: � ��15S3If�L� - �_�i711I1���lliliil 14.'I Ver�dir�g �Ilachine Paneis; Vendor may affQx s�ch {ogoslac�vertisir�� amagery tc� its vendir�g ma�hin� p�nels as may �ie pr�-�pprc�vec� �y the Gity i� its �r�le dis�reti�n. 14,2 Signage: U`�ith the ex{�res� wrifter� �pprov�� af t�� City, U�ndar may utilize s�gn�ge related �ire�tiy to the provisia� of t�e prvducts and services pr�vided fc�r hereunder, 1Jendar represe�ts anc� warrants ihat it w�Pl �s� it� �est e�farts tQ use sign�ge �hat is enviror��ne�taldy sensiti�e, t�stefully r�esign�d, ar�d that which pro�ates an e�hanced qua3ity of life, T�2 `�Jer�d�r may pravid� �a�ne�s tc� �e dispiayed by th� Gity at City �v��tts. Specificat�ons wgfl b� prr�v�ded tc� the uend�r '�y the City. AI� s�g�age cor��empl�t�d �y t�+is sectia� shal� be req�ir�d �o com}a�Y with City {�oiicy, City Cfldes �nd o�h��` i�w, as ��plicabl�. '1�r3 fltl�er p�°t�m�t�vn �nd Ad�er�isir�� Right�: T�e City af �I�arwater may �ppro�+e ac�c�it€tanal promotion a�d a�ve�t�sing as req�rested, ir��fudir�g Ic�go inctl�sion in mar�eting m�terials �t City �v€�nt�. 14.� Cvmpii�r�c�. Ver�dor's �ailure to c�m�l�+ w€th 5ection 15 of th�s agr�em�r�t s�all b� d�emed a m�ter�al k�r�ach af �he agreem�nt that may su�ject the �gr�erne�t to i�rtme�i�te ter€r��nat�or� at City's sr�le discretian. 15.0 �.I�ENSIMG PAYME�T $� PRI]L"3U�T SALES Ct]�FiNMISSI�� Ir� cr��sideration af th� rights a�d �riv�l�ge� gr��ted to the Vendflr hereunder, includir�g th�� right to ��cess, ir�stal! ��d main�a�i� vending mac�ines w�th�ra City ��cili��es, the Vendar shail p�y a Lic�r�s� ��e ta the City ar� �n �r�nua! basis ("�ac�:nsing payrnent" �r "'�icensing �e�"}. There shall be nr� �r�um�rat�d comr�issia� t� t#�e City on Venc�inc� r�n�chine s�ies �s part caf t€�e P�gr��meni. �Jen��r w�IV �rperate �r�d re�ai� ale pro�eeds. Lice����g F��yrnen�. The Li�ensing Payrnent shail �� paid in ar�nua� ins�allmerats � ir� th� ar�nunt �if Thi�ty-Two Thc�us�nd �ive Ht�t�dr�d Dallars ($32,5�3Ci) eac� � A�r��rner�t Y��r. �h� fi�st pay�`nent will be paid wi�hi� �orty�five �45} �ays after � this Agreement ha�� been sit�neci by �o�� Par�ies ��d fo� su�seq��nt Agr�:�m�t�t � Y�ars Licensir�g P�yme�t wilU �e du�: ann�afly �t t�� an�tual anni�rers�ry of th� Effect�v� aate. Vendar sh��l make payments to: City of �learw���r, Parks and I�e�re�ti�r� ��pa�tm�nt P.U. �Qx 4748 Cle�rwater, �� 33i58-474� Atter�tion: A�#min�st�ative Suppart M�nag�r °�6.i1 �FINAh1CIAL F�EPt3RT� t� �.'lt�s�ifi�:�l - C �,�7fic����ti��l '[�.'0 F'ull-Serrrice Ve�ad�ng F�r�ar�cial Reports: Vendor sh�ll prfl��de the City wit� �n a�nual audi�ed sale� re�ort deta�l�ng the tc�tal sal�s p€�r r�c�nt� �enera�ed f�orru al! v��dirrc� muachi��s at eacl� I�catic�r�. �his repc�rt is du� t�irty [30} c4ays af�er each ar�nua� annaver�ary c�� t�e Effec�iv� [7ate. �equir�d r�:pc��ks shail be i� a�cordan�e vvith general[�y �ccepied �ccc��rn#i�g pr�ncipCes and b� �ttested to �y a Cert��ied Pub9ic Accnunta��. '��.2 C�irect ��r°�hase Repor�: V�r�dor alsc� sh���l prouide the City with an �nnual auditc�d D�rect Purchase �.�pc�rf �or adl di�ec# �ur���ses. This report sha�l �eta�l s�les �ctiv�ty p�r f�crlity and ��r cancessionai��e and �� ag�regate tofial. 5ales �ct�vity s��ll be further f�raiter� �io�+vr� by ea�h product itern. This repc+rt is c��ue thi�ty �3Q) c�ays after each �nn��l ar�niv�er��ry t�� �h� �ffe��iv� D�t�. Reguiced r�par�s sha�l be i� accord�nce with gener�liy ac��ptec� accou�ting pri�ciples and be att�sted to by a���tified Pu�Ric Ac���nt��t. lf t�e Gity daes r�ot receive said reports wifhin tf�e specified �im� frame, t��: City shall notify the V�ndor in wr�tir��. ff accepta�{e reparts a�e nat rec�iu�d by ��e Ci�y withir� 3� days Qf the v�+ritt�n ��iificat�an, f�ilure t❑ �ravide said re�a�ts sh�ll be consod�red a r�ateri�l �reach a� t�i� Agr��m�nt, res�iting irr ter�rtination rights by �h� n�nW #�rsa�hir�g F�a�y as provided far her��n. 17.0 FINANCIAL REG[JR�S Ver�dor shall create ar�d r�asntain c4mplete and �ccu�at� fi�t�ncaal and accauntin� records �� v�ndir�g t�a�s�acti�ns fc�r ea�h �nac4�ine in �ccnrdance with acc�pted ind�stt`y s�and�r�ds, and wili #�eep such financia� rec4r�s far a per�ad of � years aft�r the clos� c�f eac� year's operatia�n, unless the requirer�er�ts of t��s I�greern�nt ar a� audit h�ve na� be�:n re�c�lved, in whiCh cas� said records shall 1�� mair�taine�# �sntil resol�tic�n. ��c�rds mu�t be r�ade av�ilabl� in accardance wi�h app�icable law, i�cludi�g Ch�p��� � 19, Fl�rida S�atutes. 18.� �6►AXES � m � E�ch F'�rky is r�spr��sibl� t� remit feder�l, stat� a�' �oc�l �axes, �s it {�ertairas �a � mts r�spective �usiness and property. City s�all nc�t assess comrnor� area rn mair��enanc� fees, reaf prt�p�rty taxes c�r other cha�c��s bas�d an Ve�dor's occupa�ion Qf t�� space aliocated ta ven�ing machir��s. ,� , * City sha�l have th� r��h�, in its a�sal�at� c�fscr�tior�, tQ requ6re the remaval of 1�'er�dor's per�annel �t any level �ssi�n�cf tc� the p��forr�arrce c�f �he services provided ur�d�r this agr��r�et��. C�i#y s�al� prr�v�de vwri#t�n notice to Vendor c�f i�s request far remav�B c�f Vendar's p�rsonn�l; w#�ich notice will became� ef�ective ��c�n r�cei�t. Such ,�ersonnef shall �e prQrr�pt�'y remraved firom p��form�rtg serv�ces ur�d�r t�is agr�ement at no cas� nr ex��nse to City. 1(1 ��I<ititil�llC� - � UIi�Itl�Ylllil� 2�.� REQUIRED MEETIi�#�S Ve�t�or and Gity �e,�resent�tives shal� meet a�nual�y, and at se�ch �ther tirnes as m�y %e a�r��d u{�or�, ta plan ant� coc�rdin�te services provided under this Agr��ment wath the �rrtent to en��anc� sales i� a mann�� to in�rease process e��c�encies, anc# imprave c€�rnmur�ic�t�c�r� and c�sstom�r s�rvice. 2'I .� LAWS� PERIVyI�'S. �EC ULAT�41�� 2'1.`1 Lo��r�s�s: Ve�dc�r shai! r�btatn all n�c�ssary IFCe��es �r p���r�its fcar its �rc�per p�rfornnanc� �f this Ag�ee�ent and shali pe�farr� in �c��ardanc� with ��plicabi�: federal, st�te �nd lo�a� laws, �egul�tit�n, order��nces c�r cc�des in for�e whe�e lfend�r ns providing it� servic�s an� se�lAr�g i�s products. Vendor is r�s�aor�si�l� for its own applic�bf� faxes, includhng payroLll t�xes, and misc�:llaneous overh�ad ex�e�ses. 21.� Cha�ye in L.aw ar Regula�ivrt: If at �ny time duri�g the Term of thi� Agreement �ither Flarida, feci�ral 4aw, or IQCaI I�w ar r�g���tion is revised t� m�terially I�mi� the b�ver�ge #y�es, hc�urs c�� operation, �ar le�catic�n of vendi�r� m�chine� or� City ��o�erty, Ver�dc�r sh��ll act ir� canformance with s�ch revis�d law e�r regta��tion, �r�d City s�a�l not �� resp�n�ib�� fo� �ny lo�t profits which m�y result there from and w�ll ther� have t�� a�tion as �ts sc��e r�m�dy, Vend�r m�y terrr�inate �his A�reem�nt �r�d Cety s�all �i} aikDw V�nc�or ta r��rier�� any �c��i�m�nt, (ii} ��y to Venda� the u��arned prc�r��ed pa�k�or� of preRpaid L6c��sin� �'ayrr�ent �� c�t�er upfro�t fundirtg, 6f any. �1.3 Car�plwance with laws: Ve�de�r shall, at its �wn �ast and expens�, c�mply with all statutes, c�rdir�ances, cec��ulatior�s �r�d r�quirer�ents c�f �I�1 gover�m��t�� e�titi�s, inci€�ding federal, state and faca9, re€ating �o �t� act��ns ur�der this Agreem�:nt whe���r s�ch st��utes, ordir�ar�c�s, r�gufatia�s �nd requirerrr�r�ts are nr�w in #arce or h�r�i�a#ter er�acted or wheth�r or �c�t �n �he � ��nterr�pl�ti�n af th� Pa�t�es. � � �2.� INDEMl�fFlCATI+I��N rn Venc�or shall �rot�ct, ir�demn�fy, d�fend and s�ve and hold harmiess the City, i�s officers, a�ficiafs, at�t�rneys, emplayees, �g�n�s and memk�ers af its gov�rr�inr� bQdy from �nd ac�ainst �ny �t�d all �iak�ility, loss, damages. (tnc9uding puni�ive d�rr�ag�s), c�airrr, s��tlemer��, p�yment, expenses, �nterest, awa�d, judgment, c�iminution �f v�Mue, fir�e: �ee, �en�lty, or oth�r �osts �ir��V'uci�ng with��� �imitatic�r�, ��sts and fees r�f �it�gation of ever� nature} ar�sing o�t o� or in Cor�nectic�r� uvith 11er��iar`s negliger�ce c�r ne��igent perio��rtane� or actio�� p�arsu�nf tc� f#-��s ��r�ement, c�r ifs f��lure to �om�fy wi�h arry o� its c�blig��io�s cantained in this Agre�me�t., exeept to t�� �xt�nt suc� i�oss or c�amage was �aused by the n�gligen� o� wififul rr�isconduc� af t�� �ity. Notw�ths�ar�c��ng anythir�g cant�ir�ed herei� �a �h� cc�r�trary, thas indemni�icatica� prc�Wisior� s�al! r�t�t b� cor€s�r�red as a 19 C'1�z55i11Lc! - C��3t�liliential waiv�er af any immunity #a whic� City Es �ntit�ed or the extent e�f ar�y iim�t�tic�r� af I�abiiity tt� pu�suant tn � 7�8.28, Fl�r�da �t�tutes. �urthermQre, t��� prc+vi�i��t is r�ot ir�tend�d io nc�r shal� be inter�ret�d as limiting or i� ar�y way affectir�g any ciefi��rse City may have ur�der ���8.28, Florida Statut�s or �s �c�nsent to be �ued by third �a�tie�. AI� inde�rrrsifi�ation pr�vis€c�r�s contair�ed un tFtis Agre�mer�t shalf survive ��rmir�atian ar expir�t�c�n �f this Agreemer�t. 23.Q iNS4JRAN�E Insurance �rec�uir�ments musf be �n �[ac� �ri�r ta prc�gr�m s�ar#-u�. 23.1 Liabi�ity Irtsur�nce Tf�e applic�r�� s€�a16 furnish, pay f�ar, arrd mair��ai� d�r�ng tk�e life of the cor�tract wit� #h�� City the fo�l�winc� ���ability ca�ve��ge: � C��rme�cial G�r�eral �.i�bi�ity I�su�`��ce an an "r�cc�rr�nce" b�sis i� ar� arnc�unt nat i�ss than �1,D��,��4 per accr�rence Bt�dily kr�jury Lia�il�ty �r�d Property ��mage Liabilsty. s'V�iorkers' Cnmperrsation Insurance �pplica�l� t� its employees, ii ar�y, �or statutory c�verag�: �imits in cr�m�pliance v+rith �lor�da �aws. ��ersanal Property lns�r��ce is r�comrr�er�de� fc�r all str�actur�s anc! contents. 1� Vendar choc�s�s t� not c�btain Personal Pro��rty lns�rarrc�, Ve�acit�r urtt�erstands and agrees th�a the City is not res�aar�s�bl� for r�piacement c�f such pro�e�y and cant��ts at any c�f its �acilities, 23.2 Ad�i�tianal �r��ured The City is t� t�e specific�lly ir�cluded �s �n additi�raal insurec� ar� the comrrrerci�l � ge�eral li�bility policy described above. � � 23.3 �usir�ess Autornvb�I� Li�bilrty Insur�nc� rn Ir�s�rar�c� in the am�unt crf at �east $1,�J��,Q�[�, combin�:d ��ngle limit, p�ovic�ir�g �odAly I�jury Lia�iii�y �nd Pr��erty C�amac�e Lia�ility. 23.4 �lvti�e o# Cancell�tior� vr R�estrictivr� llendc�r shail end��va�- �� pravide the Gity with thirty (3�} day notice of c�ncellati�n or r�ateri�i �re��iification, 23.5 �ertifica�es o� InsurancelCertified Copi�s af �ol�cies l�' C'1a55ili�ci - C'croiali��cntial fihe appl�ca�� shal� provide tf�e Ci�y with a certif�cate t�r ���tificates c�f ir�surar�ce sh��v�ng t�e exi�tence �f ��e c�v�r�ge t�r� co�tr�ct i�itiatian and then �nnuaEly. The appl�car�i will r�aEnt�in this c�verage wit�t � current ce�kificafi� or certifica��s of insurance thraug�c�ut th� �erm stated ir� th� �rap��al. 'V'Uh��r sp�cif�l��lly r�q�ested by the Gsty ir� wri�ir�g; the applicant will �rovide the C�#y w�th c�r�efi�d �apies af all �o�icies o� �nsurance as requmred a�ov�, New certificates si��fl be provided to th�e C�iy wh��ever any p�dicy is renewed, t�r obtai�ed from Qt�er ins�r�rs. T'�e address w�uere suc� cert�ficates shalV ka� s��� Q� de�ivered is as fc�ilc�ws: City af Cl��n�vater Attention: Administ�ative S�pport Nlanager, �arks and F�ec�eatior� Depa�trr�ent P.C7. Q�x 4748 Clearwater. ��. 33�58-4?�8 �4.0 11�NCit3R'S �AIL�1R� �'f� F�RQVI�iE S�R`VIC�� C?R PR�?C;UCTS �4.'I Vert�eiar's �epresen��tion af I�erfvrena�c�: �ity �eq�ir�s t�e P�rrnFtted �evera�e Pr�d�scts and services identified �rr�der this Agree�ner�t be s�p�lied tc� City i� a�irnely ar�d accurate ma��a�r. ��ty has e��ere� intc� this Ag�eem�nt v�r��k� 1lendar b�cause Vendor }�as repres�nted th�i it can m��t City's tirn�-�elat�d s�rvice and prc�duct specEficat�s�� r�e�ds. 24.2 Q�ptair� flt#�er �ervices: Ve�dc�r rec�ag�i��s and acknowledg�s that th� City has �ntered in�to this Agr��ment �in �eii�r�cc: on its #imely �erForr�ance �e�eunde�, therefa��, Vendor's failure tg deliver f�errni���d ��:verage Prodtacts �� pe�forrr� any ofi the s�rvic�s req�aared, �s c�e�e�-�nir��d in the City's sole discretic�n, shal� eanstit�te a rrcateriaf breach far whic� �he City rr�ay �bt�in s�bstitut� pra�€�ct � ar servic�s without pur�a�it of iegal interpr�t�tson �r disposition c�f t�is Agreem�nt, � �s pr�v��d�d frar b�low. � �' 24.3 �r�satisfac�vey �erfarnnan+�e: Uns�tisfactory per��rma�rce may inc4ude bu� nat be limited tc�: latelr�on-deliueri�s; fail�r� #a re�air ver�dir�g machin�s a� pr�mised; par��al d��i��ries th�� are not cured within �hirty days; �l�livery �f virrac�r�. praducts; �elivery �f �ana�r�harized substi�ut�d pr�ducts r�ot meeting t�e specific�ti�ar�s ider�ti�ied in �hi� Agreement; ir�carrect prici�g; fail��e t� pr�v�ide r�v�r�u� r�pt��ts as Sp�cified ir� the Agreement; or �nvt�icing �rc��lems. Failure ta ��r�c�rc�n shall constitut� a m�f�rial breach hereund�r ft�r w�ich eit�er Par�y �nay avai6 itseif ic� reme�iies sei fort#� herefn �� othennrise �vailabl� a� I�w or in equity. 2��4 �ure i�vtic�: Befor� City r�°�ay rr��l�� an arrangement ta o�ta�n substa�u�e �erv�ces or �errnitted B��ver�ge Prc�ducts from �n��her �rc�vid�r, City sf�a�l gi�+e Vendor €inaf writtera nati�ica�ic�n to perfc�rm withir� five �5j days ("Cur� Natice"). i; C`1�i5�itiLcl - ('c���li����7ti�il INith� rec�.ard specifically ic� items tha4 ar� o�f e�f stoc�, t}�e Cur� �Jc�tsc� shall alGnw llend�� a minEmum fl€ ten (�fl) days tc� resolve an� issues r�lated to that proble�n. 24.5 ���er Remedi�s; f� either Panty m���r��Ily breac��s ��ris Agreement �y fa��l6ng to ��r�orrn it� serv3ces as callec! for u�der t�is d�c�re�ment, such P�rty may, in additi4n to a�y o�her r�medy �v�alable, �I�:c� tc� immedi�k��y termin�te ihe �c�ntr�ct aft�r writt�� r�o�ific�tiar� ta perfc�rr� within fhirty (30} days. 25.� fnt�r�ti�na�iy �e�t biank. 26.f� G'�f�ERAL PR�ViS1�7N5 26.'i A�th�rity o# the A�iraa�inistrative ��ppc+rt IVlanager af Parks �n+d R�cre�tivr� �epartment: The City i��s the ��nal apprc�v�� ir� all m�tters relatir�g �r� c�r aff��ting th�e Scape �� Cc�ntract. Exc�pt �s expressly specifi�ci in the ,�greem�nt, the Ad�iniskrativ� �uppc�rt I'��r�ager may exercise ��y �owers, rig�ts vr priv�leges that have be�n Ia�vfuVly c#eiegated by th� Gity. Nq�hir�g i� the Agreer��nt shali �� c�nsira��d to bir�d the City f�r �cts �f �ts emp'�ay�€�s; inc�udir�g ihe �4drrr�nistrative Suppar� Manager of Parks a�d R��reatio� C7epartr���t t��t exeeed th� €��lec�a�ia� of City. Zf.2 �ity's T�chnical Repr�sentaii�r�: �h� Aalmir�istrative Support �anag�r af Pa��s a�d R�c��a�ian ae�artmer�t a�so wil� act �s the technical repres�nt���ve far �II technical as�ect� reiated tc� �he per�c�rma�ce c�f the Agre�ment. Vendor shal! make such oraf fl� wr�tt�n repar�s t� th� P�dministrative 5up�art Manag�r of Parks �nd Recreation Q�p�r�mera� as may b� r�questecf by the City r�r �s speeified in t#�e Agreeme�t. �,I1 cc�rres�ondence reg�rdin� this Agreement �nd reiated cor�tractual �natiers sha[I k�� �ddr�ssed tQ th�.AdministratiVe Support Manager �f �arks �n� '�ecreati�n D�pa�trrtent at the ��dress prc�vsd�:d her�i�. �fi,3 Inde�perrdent �an#ractor: Each F'�rty is �ctinc� �� an i��epender�t � corrtractQr and emp9�yer. i�r�t��rtg herein shalG be int�r�ar�2eci to c�eate c�r be � c€��strued ta cre�te a part��rshfp, ja�r�k ven�ur�, or agency rel�ti�r�ship between � any t�f the parties, ar�d no Party shall h��u� the authc�rity to bir�d the o�h�er i� any rn respect. 26.4 1'+l�ti��s: Fc�rm�l notic�s, dema�ds, �nd cc�mmunicatiqr� �o k�e giv�n �e�eunder by �i�her Pa�ty shal� b� in writ�ng and shal( be deliv�r�d in p�:rson, by U.S. rn�i1, overr�ight deliv�ry, f�x or �lectrc�ni�al�y, and s�ail f�e d��m�d r�ceived as of fhe date �� verifia�l� �i�liv�ry. "Ve�i���b1e de�ivet�y„ of �lectra�ic �r�nsmiss�on sh�l� ra�ean email `"��lev�ry sta�us �otcfica�i��s" c�r fax "trar�smitt�l confi�ma�ian reparts," or th�ir �quiv�ier�ts, Said nc�tices sh�ll be d�Ai�re��d �c�: C1TY: Cify �f Clearw���r, Parks and ��creati�n Qept. �,,c�m�nistrative �up�ort M��ager 1-� C'1�i55ili��i - [.�t�i�di���i�ti�al 1 Q[� S. My�tle �1ve. C���rwat�r, FL 33755 Coca-Cnla �istrict Sales Manage� On Prem��e 2954 Gar�dy Bl�d St P�t�r�burg, FL 33i�� �fi.5 ��n�ur��e�ne�ts. Each �arty �hall r�ot issu� a�y press re�'ease �r ma�.e any anr�nuncemen� with resp��t to this Agre�m�nt without the pri9� wrstte�r con�ent of the qt�er F'arty. Despit� th� pr�viou� �enter�c� o� thi� 5ectic�n, ��ch P�rty is entitled fo ma�te any disc�as�res r�qu�re�k by I�w. 2�r.6 Am�ndments: Th� pa�tie� may am�nd this Agreem�r�t i� s�ch �r�end�ent is in v�rritir�c�, if t�e w�iting id�nti�ies �tsel� as an am�nc�me�� tc� this agreement �n� �s sign�d by bc�th P�r�i�� �o t�e Agreement. 2fi.� Wai�►ers: 2�.7.1 Effect �# Fail�re, �elay ar Cd�rs� af Qe�ling. No fai4ur� or delay in exercising any rtght or r�r��dy �r in requiring the s�tisfacfiv� �f any cc�nditi�� ur�der t�rs Agre��rtent, and n� act, omissian �r c�ur�e of deali�r� f���rnreer� �h� Parties shail ap�r�te �s � uvaive� or estc�pp�l of any ric�f�t, rern�dy c�r cor�ditic�n. 2G.7.2 Each Wa�ver fvr a Spe�ific Purpasei A waiv�r mad� an nne occ�siort is effective c�r�ly ir� th�� instance and c�nly f�r thc purpose sta��c�. A waiuer c�nc€: �iven �s �at to be c�n�tr��d as a waiv�r c�� �ny f�ature c��casiar� ar ac�a�n�t any at�er ��rson, � •����rabilit�. !f �ny pro�visio� �af th�s Agree�nent is determined ta be � inv�fi�, �Ilegal or un�nfc�rce�ble, the re�aining �rc�visions �f t�is � agreem�n� remai�t i� fu61 fr�r�e, �f the essen�ial terms a�d ca�di#ians of ih�s rn �greemer�t f�r each Party rern��n valid, bind�r�e�, and er�f�rceah�e. � Nrl�rger: This Agreemen� and €ts Exhi�xts cc�nstiiu�e the final Agreemenk bet�re�r� the Parti�s. If is t�e com�let� and exclus�ve expressir�n o� iP�e �'arties' Agreement on ti�e �natters �ont�ir��d irr this Agreement. AIC �rior aa�d contem�or�rtec�us n�ggtiations arr� agreer��nts betvu��en th� P�rt�es c�r� �he m�tt�rs �antained i�r this Agreerne�t are expressly merged i�t� and su��rs�ded by this Agre�ment. �`h� pravisions e�f t�is Agreemer�t may �ot �e explat�ne�, supp��m�nted c�r q�talifiec! throt�gh ewidence �f trade �s�ge �r a priar course af de�lings. I� entering int4 thi� Agr��m�nt, neither Pa�y has reli�d u�aar� any stat�ment, rep�esentation, v�r�rrar�ty �� �gre�m�n� af ih� athe� Party, exc�pt �or t�e��e expre�sly c�nt��ned ir� t�is 1� C�I�.�ssidie�l - ['ni�ticl�:��ti��l A,g�e�rru�nt. T�ere ��e no cc�r��itic�ns �rec�d��t to the e�f�ctiv�ness af thi� Agreement, oth��r �h�n any express�y ��at�ci in this Agreern�nt. • Forc� (Vlaje�ar�: "Fc�rcc Majeure Event" me��s ar�y a�t or �v�nt, wh�i��r far�seer� c�r �nfar�se�n, t�at meets �11 three of t�re ��Ile�uving te�ts: {�} The aCt or e�rent prevents � par�y (the "I�c��t�e�farmi�g Pa�ky"j, in whole ar in p�srt, �rom (i) �erfQrrriir�g its c��ligatians under th6s agr��ment; �ii} satisfyi�g any c��t�itians ta ff�e ablig�tic�ns af the �r�her party (t�e "�'erf�rm�ing Par�y�„} under th�s �gre�ment, (iii) c�� frus�rates the �urpos� �af this agre�m�r�t; �k�} ��e act �r �ven� is k��yar�d the r��sonable �ontrc�l o� and' r�c�t the �au�t af th� NQnper��rm�ng Pa�ty. �c} T�te N�nperforrr�ir�g Party has been unable to avoid car ov��c�m� the act �r ev�€�t �y t�e exercis�; Qf due di�iger�ce. �iespi�e th� �re�edir�g ��finition r�f a Force 1'��jecrre Ev��i, a� �Qrce 1t+'Jal�ure Ever�t ex�lut��s �cc�namic �ardship� chang�s �n �nar�e� conditio�s, and insufficiency af f�nds. =� Sus¢aension of Perfarr�an�e. �f a�orc�e J4�ajeure Event occur�, �he I�an�e�fiorming P��y is excused fram �i} what�ver perfc�r�nanc� is pre�ented �y th� �c�rce J�lajeur� �vent t�a t�e ext�s�t prev�nted; anc� �ii} s�tisfying whatever co�ditiaras preceder�t tc� t�e Perfc�rm�r�g Party's oblig�tia�s th�t car��r�ot be sa�as�i�d, tc� t�t€� �xten� they cannot k�e s�tisfied, D�s�ite the prec�din� se���:ne�, a�e�r�e ,Ma��eur� Event dr��s �ot excuse �r�y c�btigatian by eit�er th� PerFc�rming �'arty r�r ��e N�npe�f�rrnir�g Party to m�ke any payme�� r�:quir�d u��ler thRS agr�:ement; �rovid�� however; that r�a �aym�nt neeci be �nad� if ca�res�c�r�dir�g perfc�r�n�nce i� nc�t r€�ndered �r a relev�rtt cc�nefrttion is nc�t fulfilled b�c�us� of a Fnrce !'�'�jeure �+verrt. .; �esu�pt�c�n of Perfc�rrr�ranc�.'�I'Uhen ��e f���p�r#arming P�r�y is abie to (�� resume per�orm�nce c�f it� �k�lig�iians u�der ti�is agreem��t, a� �6i) satisfy th�e cancfifwons p�ecede�t t4 th�: Pe�forming � Party's ab��igatiQns, it shal� immedi�rte�y g�v�e ��e'P�rfc�rming Pa�y wr�tten natic� �o that ef�ect a�td shaBl �esume perfo�m�r�c�: und�r � �his agre�ernen� n9 �ater than two wa�-ki�g days a��er th� nr��i��: is deli�ered, �� E�clus��� Remedy. The �e€ie� offered k�y �his Force N}ajer�r�e prauisk4C1 I5 �hE f?xCILISIV� �`E'.Il"i�.'Ci]f c�V�llc`3�I� �fl t�lE P�IC]11�E'E`�C7i"d'illfiC� P�rty wifh r�sp�ct ta a Forc� Majeure Ev�nt. 2�.�3 Assigr�men# and Uele�atian: 26.8.1 �c� A�signrnerr��. Neither Party r��y encu�nber, a�sigr�, �r c�th€�rvwise trar�sfer this Agreement pr any� right c�r �interest in thi� A�reement, wh�ther in vv#�ol� or ira ��r�; w�thQ�t the priar written co�sent of th� other Party. i (� �L�I���sili�.:� - {_�cai��lic�t��tia� C�ue tc� t�e ur�it�ue nature �f t�is A�r��rne�t ar�d t�ae limi#�d equiva�ent paie�tiaf substitut� par�ies, any assigr�met�t c�f t�is Agreement w��hout th� express, writt�n cons�nt �� the other P�rty shall rend�r �his Agre�m��t null �r�d uoid in its en��rety. AI� assignrner�ts of �r�ghts �r� prohibited t�nd�r �I�is s�t�section, vvh��h�� �hey �re vol�r��ary a� invt�l�r�tary, by m��ger, con�oi€dat�an, dissafutic�n, op��`atiar� �f I�w or any r�t%er m�nner. Fc�r p+�rposes t�f tE�i� S�ctior�, (i) a"����ng� of c�r�trol" is de�med an assigr�r�rent o� ric�. i�ts; �nd {�i) "rn�rg��"' r�fers� �� �ny m�rg�r in �,r�ic� � Parky partici�ates, r�gardi�ss of w�efh�r �t i� �f�e surv�vi€�g c�r disappearing cc�rpr�ratian. 2fi.8,21Vo Delegations. f�eit�er Par�y may delec�at� any pe�f�rmance urac#�er th�s �,greement� 26.8,3 Ram�#icatians vf P�r�art�d �Is�it�rtrr�enfi v� �elegativn. Any purpr�rted assignm�nt caf righfs ar deleg�t€t�n �f performance ir� �violatian a� �h�s Section is vc�id. * 1`hir� F�arty B�ne#ic�ari�s. This Agreem�ent c��es r��t �nd is nc�t i�tended tr� confer �ny rig#�ts or remedies �port a�y perst�n ath��` ti�an the signatardes. Captior�s: ih� descripti�� h��dings of fhe �rti�les, sectiar�s and �ubsections �f this agreem�nt are for cflnver�ier�c� r�r�ly, dr� rtnt c4nstit�te � p�rt o� thi� Ac�reemen�, ar�� do r�ot ��ect �f�is A�reement's car��tructiar� or �r�t�r�r�tatit�n. £��uerrain� Law: The [�ws o� �he Stat� af Flori�a �withc�ut gi�ing effect to its c�nfiict of �aws pri�ciples) g�vern ail matter� ��i�ing �u�t �f or relatbng to this A�gre�ment a�d �h� �ra�rosac�ions it cc�ntem�late�, incl�dinc�, witt��ut limi�a�iran, its i��erpr�tati�n, constructi�n, perforrr��nce, anci ��forc�m�nt. 1�1! t�rms, coue�n��mts and condi�ior�s �i this Agr��me�f s6�atl inure ta the b�n�fit of an� b� �inding r�� �he F'asrti�s �nd the�r succes�nrs and �ssigns. This s��tifln � shal'I nat �e dee�med a w�i�e� af �ny cflnditiQns ag�inst �s�ignme�� her�inb�fore � s�t fQrth, � �' 26�8.5 Phc�t�gr��hy. The City has th� right, for its own purpc�se�, or may c�r��t ��rrnits ��r �ersons flr carparatians engage� in t�e pra�uGt€o� af s�ili c�r mation p�ctures, te9evisiar� �r�grarns, �dve�tising, anc4 r�lated activities, to take pha�og�aphs or rr�atic�n picf�ar�s of Ve�dar's �cti�riti�s, ver�di�g mac�i�es, signs, and �the� eq�ipmet�� i�statllec� and lor operated �y V�nc�o� p�ars�ar�t to this ,�1�re�me�t, prt�vid�d C�ty abtair�s lle�dar's �ri�r ap�raval, wh�ch shafl rrot be unre�sc��ably v�rithh�ld. �low�ev�e�, Cify sh�Dl nc�t �ae req�ired to �ay V�ndc�r cc�rr�pensatic�n for such a�tiv�ties. 2fi.8.6 �l��t�di��l��ure�f�re�s Rel��s�s. Each P�r�y �ha�l can�ult with t�e c�tf�er Par�y ��td ab�air� such ParYy's �ri�r wr�#t�n ap��oval befare issuing any press re���ses ar ath�rwise ma�ir�g public statemer�ts with respect to t�r�s Ptgreement �r �he transactians c�nt�r��f�ted h�reby. 17 �'la�,� l ic�� � C�}t� l i�lci�iial 2i.� TERMI�VATI[�I�J A D�fault s(�aIR �� deer���# t€� have occ�arr��f if: �} V+�rudQr fails to m�ake any p�ymen� ,�rovic�ed far her�ir�; b} �ither I�ar�y fa�ls te� cure �ts def���t in the ��rForr�€anc� c�r abs�rv���� any cc�ve�an�, co�►di�ians, �err� c�r �r�vision c�f f�is Agreemer�t after writte� n�tic� of said d'efauR� �nd s�ac� defau9t continue� far a p�rfod of sixty (��} �'�ys or such ather ��riod as specifi��fly ��t forth here�n, whi�heuet' is �hort�r; c�r cj either Party defa�its in the pe�farmar�ce r�r �bserva�ee of �ny rraaterial �t�venar��, canditia�a, #erm ar pravisian a�# ihis ,Agreerm�nt and such de�ault �s ntii ��rable, the nc�r�-�ieiauitir�g Party c�nnat be rnade w�ale by monet�ry darnag�s, �nd th� d�fault evidences a wiClf+�tl �r negligent dfs�egard k�y th� defa��ti�g Parfy; d) eit�ter Pa�ty b�c�m�s ins�lvertt thr�au�� t�t� petit��n t�r fi�ing e�f �ar�kruptcy, ins�Iv�ncy, reorgani�atir�� or the appai�tirnent af a re�ei�er c�r tr�st�e of all t�r s�bsta�ti�fly a�l of said Party's �ssets a�d wi�hi� �r�e hundred �we�ty ('�20} t�ays of ��cl� �i1'i�g, said P�r�y fails tc� �ecur� � dise�ar�� Qf ��ch petitior� o� di�rniss�l' af sucf� proceed�n�s. l�ft�r the accurrence �f a Def�ult, the na�-d�fae�iting Party s���l have �i�e ri�i�t to giv� the defa�ktir�g Pa�ty nc�ti�� of its i�c�tentit�n ta t�rmi��te t��s Agre�mer�t. Up�� i�e �ffec��ve d�te of 5�ch terminati�n, �which sha41 r�ot �e le�s �h�n t�n {'� 0) days affer gir�ing s€�ch natic�) the Term c�f �his Agreement sh�l4 enc�. Wiihin �hRr�y �3{3} c�ays a#t�r th�s Ag�eement is t�rrr�ina�ed, frar any reasor�, 1Jendnr sh�ll remc�ve �II v€;�din� rma��ine�, and o�h�r �q�ip�nent ��d sig�s t�at Vend�r irastalied andlflr operated ,�ursuar�t to �hi� Agr�er�ent . Shau�d Vendar fail to remove a!I ve�nciing ma�t�ines, equipmer�t a�rd signs; the Gity �nay remc�ve� the s�rne, store for pick �p �� Venc�c�r fc�r a period of sixty (6�) days �t VendQr's expense. The P�rti�s reserv� all rights a�d remedies as may b� p�avide� by law. � m � �lotwit�st�r�dir�g any c�ther �rc�visi�r� he�ei� �o the contrary, t�e Gity rnay � ier�°t�nat� t6�is 11gr�er�er��, w�thou� c�use, f�r any mur�icipal purp�se as d�termirr�d by �its �ity Cauncil at a d�ly adve�tised pubGc he�rira9 �}� giving one I�undred ei�hty (1$D) �lays wr�tt�n nt�tic� to Venc��r and Ci�y �hall (i) aElow Venar t� r�tr�eve ��y Equ€pment, and tii) �ay ica Sott.ler the unear��d �rorate� �or�ion �f �re-paid �ic��sing Payment ar otfi�er upfrc�ra� f�nd�ng, if any+- 28.Q SC�1dER�I�GN I�tll!��1NITY l�otl�ing ir� th�s ��re�m�nt shaEl waive or dimir�ish tt�e C�ty°s s�Ver�:i�� imr�unity. Nnthing �r� t�is Agr€:ernent shafl exten� the Gity's lia�ility �ey�nd the iimits �sta�lished in Sectiar� �68.28 �I�r�da Sta��ttes Dr any t�f t�e I�a�il�ty lirroits s�t f��fh ir� Florida Stat��es. �Jr�thir�g �erein si�alf be �or�strued �s ��at�sent by �ith�r Party l� $.��tl�tilll�.tl - �. tllll]I�Llllltl� t� be sued f�y thir�l parties i� any m�tter arisinc� out �f this �tgr��r�r�t�t. There ar� �o thi�d party �i�neficia�i�s pu�sua�t ta this Agreemer�t. I� W�T�i�SS WHEFt�+C�F, the p�rfi�s hav�e exec�at�d this Agreerr�en� the day and y�ar first a�c�v� wri�ten, CC)Cd�-G�LA REFR.ESHII���JTS 1�5A, IEVC. �,� ---- � � - __ f. � --' � �� By. i - - �--� .� , .��- � � L 4. 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'� � � � � a,�'',, RtAAw cI] .� � � � �'�"�'� � � � � � � � � Q ,+.°�'. .� � � G R �, �,+ � � � � � � `'� � lf7 � � ,-1 � � N �l N � � � � � Z � � � `� `� � � � � H � w � � 3 � � C.� c� � c� ,"-� ��' ;��-- � �—, � � cU � � � 'r.i c � .�. � F-, � � � C n C? ~ C � 's � ����� � � �� �_���Uc��' � � y� � P' �`�,, � � - G �, � °' � '' C7 � � � p � � � � � � � � � ���� �� � � � `�' c.� A, � p N � � � � � v ,� � � .� 1 S : (} � � [�° �` � �i � � CI] �e � � � a � � � � � r� � �� � � � � � �_: Cy � Q � C] � � � M � .-� r-r C� .-i ts? ���� r-,��� � ; �� � � �:.��� � b � � � ' CV .-e ,---r R E;' � , � � � ��i � �y F+I �. .� � s, � � � � �' ���� �i � �. fl � � � , ,� �,, �- �� � � �� •� �.� � � � � � (�D � � � ExtrYbit B Curren# List a#' 1�'Iachi�e Lacatior�s # Name Address 1 BEA�CH P(�C}L 51 BAY E5P�4r'�iAf�E 2 BEACH REC 69 SAY ESPLANAD� � $�A�H REC 69 BAY ESPLANA�]E 4 Carpenter Field �51(]Id Caachman Rd - 5 CITY HALL 1I� QSCEQLA AVE 5 fs � CITY HALL �12 �SC�[7LA �IVE 5 7 Cf�Y cJF CLEARWATER 9af} iV€ARTI�1 L KING 1� AVE $ CLEARINF4i�R P�1�L#� E�iBRARY �0{} �SCEQLA AVE N - - 9 Cour�tryside Co�rnun�ty Par�C 264� Saba� S�arir�gs Drive la Countryside Corrrm�s�ity P�rk �64D 5aba� Springs �rirre 11 �c�untryside Rec Center 264fl Sa�ai Springs Dr-iVe 12 Crsuntrysic#e Rec C�nter �64fl 5a�al 5prings Drive 13 �EPfi O� SOt� D WSTE 17a1 H�R�ULES AVE � 14 EAST F[}LLi�TIC7fV CNT �141 GULF TQ 6AY BLVC3 15 FIRE & RESCCJE Af]MN fi1{7 FRANICLIN SY' 16 FI�tE A3VC� RESCUE ' 371G �ELCHER RD EV 17 FLE�T MAINT 390Q GRAN[7 AVE i8 �LEET N#AINT 15D[? GfiAND AV� 19 GA5 SYSTEM 40p M'YRTLE AVE N 24 L�NG CEf�+�TER 15Q1 B�LCHE#2 #iD N 2� LCl#WG CEhPT��R 15a1 BEILCHER F#D IU 22 Nf�ris�a Fuel Dp�lc 23 I'u'tGMULLE� T�Mi� CC}MP �i][7Q �C7EN1fILLE �1VE 24 MCMULi.EN T�{VN CC?MP -- �04Q E�ENlIILLE AVE Z5 MCMUI.��N i�NN �C1M€' 1Q(]Q ED�N1fILL� AVE 26 MC}CCA51N LAKE PARft 27.50 PAR#t �`RAiL LIN 27 tV1L7RIVfi�tGSI�E REC 240� HARrIi' �LVt7 2$ MQRNiNG51�E 'REC Z40t3 HAR�t �3�,V�7 29 t�ARK 8e REC MAlNT 507 VII�E AVE 3� PAIiK & REC NIA1hlT 510 PEN�ISY�IAANIA AV� 31 F'ARKS & R�C 1f] BAY ESPLA�1lAD� 32 Pi�� 6�] __ IQ Pier 6[l dr 33 pier 6Q �D Pier 6a dr 34 PC7LICE DEi?� 645 PlER�E ST 35 P[?LICE p�P� 645 PIERCE ST 36 PC}LICE 5UE3 Sl'ATI�lW 285� MCMULLEN BC)C7T�i RD 3T PC3LfCE SUBSTA�'IC]N �$51 N i111CMULLEN B(]OTH R�} 3$ fV1l�NI�IPAL SV� BLQG 10d MY�tTLE AVE S 39 flUBitlC U�IUI'I�S 155� ARCTtJRAS AVE N 4� PUB�,IC Wt7RK5 �.650 ARC7YJfiAS AV� �J 41 PUBLIC W{]RKS 1650 FIRCTUiiAS AVE N 42 Rt3S5 N{�'RT4ht Pp()L �426 MARTIN LUTHER KIIVG �R AV 43 Rt7SS �J{3RTC3�1 REC C�NT�R Z426 GREEiVWC]C7D AV� � 44 SQLI � W,A57E XR�#NSFER 5T�TIDN �.pOS C]LO C4ACHMAN f�Q hJ 45 WASrE WATEF� TI�EAT 1605 HA�tF�C71� qR 4b WASTE WATER TREAThI# I605 HAftBOR �!i T�ERMINATIQN, RELEASE ANCi IN�E�VI�J�7Y AGR�EMENT l`HIS TERMINATIC3N, RELEASE ANa INDEM{VIT'Y AGREEMENT ("Terr�in�tiQn Agreement"} is r�rade as �f the day of 201 �.�y CITY' OF CLEARWATER, a Municipal Corporati�n af the State of �lorida, having an address af P. Q. Bc�x 4748, Clearwater, Florida 33i58-4748, ATTEfJTVQN Qirector, Parks and Recreatifl� ('"City'"J, Coca- Cala R�freshments U�A, Inc.. ("CCR"j (previo�sly knowr� as �oca-Cola Enterprises, Inc., ("�CC�"j} Fl�rid� Division, 104 T�rnp� C�a�cs Bl�rd., 5uft� 3�C1, Tampa, Florida and Ta�rpon Springs Coca-�ol� Bottling B�ttler �`T�r�aan Sprangs"}, a corpor�ti�n (e�ch may b� individu�lly referr�d to herein a� "Party" t�r collec�avely as the 'Parti�;s"). A# afl tim�s herein. GCR ar,d ��r�on 5prir�g� are referred to cca�iectively as `Bvftler". WIThIESSEYH Wf-�EF�EAS, CCR and T�rpon Springs �flintly and severalVy ent�red ir�to that �ertain BEIIERAGE A�REEM�NT BETWEEN THE CITY, CC�CF�-CC39�A REFF2ESHM�NTS IJSA, EI�C., AND TARPQhI SPRINGS COGA-Ct�AL 8Q7TL11VG C(7MPA�14' with the Ci#y, elated J�ne 1, 20(31, to �staEalish a bever�ge marketin� ab'lian�e and for the sale of beverages and th� sponsorship of amenities and imprav�emen#s �"A,greem�nt"); and 41VHEREAS, the Agreement �et fc�rth certain ct�rrespc�nding b�r�ef�ts a�d obligatic�n� af th� Rarties including, amo�g other t�ing5, ti�e paym�nt of commissians and incentive reverrues in consideratian fpr exclusive r�tarketing and sales rights; ancf "�'F-�EREA�, #i�� Agreeme�t Term was ten (10} y�ars frnm its incep#ior�, with a carryover pravisian for purposes of the reccanciQiati�n of mor�etary commissions earned v�rsus monetary camrr�iss�ans paid based on the Agreemer�t perFo�mance terms and conditions; a�d WHER�AS, tf�e Par�ies herei�y agree that a compRete reconciliation ofi cQmmfssions patd based an commissians earned has occurred, the Term ❑f the Agreement is therefflre t�rmin�ted, and the Parties wish tr� mernorialize fulfillm�nt of Ge�rtain corresponding duties and abligatior�s th�ereunder. � E�C)W, THEREFQIRE, in consider�tior� of the cnutual cavenants hercinafter set farth and � c�fk��r �ood and valuable consideration, tl�e receipk and suffie�ency vf which ar� h�reby � acknowledged, the par#ies hereto agr�e as foll�ws: rn 1. Recitals. Tf�� foregoing recitals are #r�e an�# carrect anef are incarporated h�rein by refer�nce. 2. Termination af Agreement. The Agreement shalf terminate effective as +af 'l2:01 a.rr�., E�stern Standard �ime, nn , 2Q1 �("Terminatir�n Late"} as if �h� Terminati�n D�t€� were set iarfih �n the Agreernent as the expiration date mf the term af the Agreement. Except as �xpressly set fflrth in this Termination Agr�ement, nQne of the P�rties shall have any obfigatians or liabili#y under the Agreement after �he Termiraation pat�. hJotwithstanding the foregoing, all of the ind�mnity obfigatians af the BQttler �ontained in the Agreement ("Bottier �ndemntfications"} sha1� remain in full fcrrce and eff�e�t, shaff survive the �ermination of �he Agreement, and s#�all c�ntinu� to beneftt the City after the Termination aate. 3. A�reement 4hligations. The Parties shail p�rf€�rm and fulfill al! af th� Agreem�nt obii��tions and cav�n�nts required to k�e perfarmed car observe� by each Party up ta and includir�g tf�e Term�nation Date, including, but not limited tt�, the paymer�t of all mbnies payable under the Agreement t�rough #he Terrnination Date. 4. Est�ppel. Each Parky h�reby certifies and acknowledges ta the c�ther that, as af the dake of khe rr�utual ex��ut�on of #his T��rninaiaon Agreem�nt: �a} r�eith�;r Party is in defau�� in any respect under the Agreement; {b} ne�ther Party �as any defenses to its e�laligations u�der the Agreer�ent; and (c) r�eit�er i�arty has any vff�ets against rnonies due. The Parti�s each acknawledge ar�d agree that the representations herein se# forth �on�titute material considerati�n ta the parties in enterir�g int� this Termir�ation Agre�en�ent, such representations are b�ing made by �a�h P�rty for p�rpc�ses of inducing the at�er party to �nter �nto this Termination Agreement, and each party is relying on su�h representatians En entering into this T�rmination Agreement. 5. No Tra�sfer. �ach P�r�y represents and warrants tl�at it has r�nt, �oluntarily ar by aperation of I�w, �ffectuat�d or allawec! an as�ignr�er�t, transf�r or other encumbrar�ce of all or any part c�f its int�rest ir� the Agreem�nt. �ach Party represer�ts �nd warr�r�ts ta ea�h Qther th�t ther� are no Clairr�s (as hereir��fter d�fine�f} against it in any w�y arising or r�sulting from ar in cannectian with the Agr�em�n#, and that ther� is nQ Claim; agreemen# or other matter that wouid preclude c�r restrict the t�rmina#ic�n �f the Agreemer�t prr�vided for here�ander or oth�x-wis� aduersely affect this Terrninati�n Agreement or the enf�arceability thereaf. Each Party �gre�s #a protec#, defend, indemnify and hofd the other parky harmless from and against any and all Clair�s in any way arising or res�d�ing from or in Gvnnec#ion with or related to a�reach of any of the representations and w�rra�ties contained in #his Seeti4n. �. Ma I�emoua� of Vending Machines and �quipm�nt Sirnultaneous to the Termination Date, the su�cessor in intet��st tv the �ottl�r wil� enter into a new agreement to fulfill beverage sal�s and s��plies ta City, ar�d therefare, B�ttler°s vending machi�n�s and equiprnent will rem�in c�n Gify praper�y as su�h may exis# as Qf the Termination Date in ord�r to service Ci#y ur�der the new agre�ment. 7. Release. Each Party and their r�spective a�filiated crampanies, ag�nts, servants, er�ployees, p�rtner�; sharehc�ide�s, m�t��aers, predecessors, repres�ntati�es, offECers, dir�ctors, � successors and assigns (collectively and sev�rally, the "�1ff�Eiated Entitkes"} do hereby r�l�ase � and forever discharge the c�ther Parfies for and from any ar�d all Clair�s it n�ay hau�e againsi sakd � Par�y far any claim arisirrg fram or related to #he paym�nt f�r, earning af, calculatian o#, flr rn r�cc�rd keeping of cammi5siflns, incentive �evenues, or generaily, ar�y other comper�sation for performance under the �Igreement (each a"Refeased Cl�it�"). The Parties and th�d� respectiae Affiliafed Er�tities here�sy cov�nant and �gree tc� fQrever for��ar from alleging, asserkin�, %ringing, comm�ncing, instituting, main#aining, �ros�cuting �r othervwise p�arsuing agair�st the other Parties, �ny f��l�ased �laini. 6nc�emnitnrs and their resp�e�tiue Affili�ted �ntities further agree that t�ds rek�as� m�y be pleaded by the ather Parties as a full and comp9ete defense to any Releas�d Ciairrr �hat may b� allegec�, asserted, bro�agh#, car�menced, institui�d; maintained, prcasecuted or ofherwise pursued agains# that Par#y. 8. �efauit, In the event that any party ta this Terr�ination Agreement shall institute any acti�,n or �aroceet�ing against any o#her party Qut of or b�sed +�p�rn th{s Terminatit�n Agr�emen#, or f�y r�asan �f an� default hereunder, t�e prevailing pa�ty in such act�an or procee�ling shall be entiti�d to recflver from th� o#h�r pa�€y aPP cr�s#s af sue� a�ticrn or prviceeding. including reasonable attorneys' ar�d paralegals' fees at �il trial and appellat� le�eis and in k�ankrupfcy. 2 � m � � rn 9. Represeratativn�. Ea�h party represer�ts tn the o#h�rs thaf it has full pawer and ��tho�ity tc� �xecut� �his T�rmination Agreement.. 10. Nvtices, ,Any natice that is sent or gi��n unc�er the terrr�s of this Terr�inat�on Ac�r�er��nt shall k�e sen� to the ad�fress first s�t forth abc���. Any natice g9ven by Unit�d States mail shall �� cfeemecf s� gi�en on th� second b�.tsi�ess day after the same is de{�c�sit�d in the Un�tec� �f�tes m�il r�gistered or eertified matter, addressed as a�aave provadeci, wi�h postage ther�on fully prepai�f. Any r�o#ice tha# as given by �nother rrreth�� shall be d��med to be delivered upr�n receip� by the Party to whorn the same is giv�n. T�re Rarties may fram tirr�e to time ncrti�y fhe other of ehanges regarding wF�er� natices should k�� sent k�y sending natificat�on �f �uch char�ges p�,irsuant ta this p�r�graph_ 11. �Vliscellane+ous, This Terrx��nation Agreer�ent may be executed in any rtumber of counfierparts. all Qf which, taket� together, shafl constitute one and t�� s�me instrumen#. �t shall nat �e necessary+ when mal��ng prpvf of this Termina#ion Agreem�nt tt� prflduce coun#erparts with original signatures, it �eang agreed that phatacppies crf signatures c�r signatur�s received by facsimile tra�nsmissdc�n shall h�ve the s�me �ffeet as original signatures. This T�r�ination Agreerr��nt and the terms and provisians hEreo� shall inure ta the b�nefit of ��d �e binding upc�n the heirs, successars and �ssig�s of th� parties. TP�is 1°ermir�ati�n Agreemenk shall b� cQnstrued and enforced in a�cordanc� w�th the I�ws pf the 5tate o# Flflrida. This Ternninatior� Agreernent m�y npt be amended except in writing signed by bo#h par�ies. If any of the prav+sions of this Termination Agreemen�, or the application ti�ereof ta ar�y per�on or circurnstance, shall, ta any extent, be inva{id ar uner�forceahle, the �emainder �fi this Terminaiian Agreement or th� circumstances �ther than thnse as ta whnm Qr which it is held ir�vad�d or ur�enforc�;aEale shall n�t be afF�cted thereby; and every pr�vision of this TerminatiQn Agr�err�er�t shatl be valid and enforc�able tfl the fullest exten# perrrsitted by law. 1N WITREESS INHEREQF, the parties have ex�cuted This Terminatior� Agreem�nt as vf Ehe d�te first written afao�e. WITNES�: Coca-Co�a Refreshr�ents USA, Inc. a Gorparatior� of the State pf Floricla: By:__- -�-� �i-�' 6`�2{ �� r,` c�— Print IVame: Title: f-1�'c��' �� �FJ ,r`� ���,��c� [City Signature Page Fc,llows] � Gnuntersi�ned: Gec�rg� N. Greieko� hllayar Approv�d as t4 farm: La�ura Lipowski Mahany Assistant City Attorney � m � � rn CITY �F CLEARWATER, F�C3RIDA � Willi�m B. F�orne, �i#y Mao�ager Af�est: Rosemarie Call City Clerk Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Approve submission of Department of Justice, Bureau of Justice Assistance (DOJBJA) Edward Byrne Memorial Justice Assistance Grant application in the amouni of $60,658 and an additional .75 Full Time Equivalent Position. (consent) SUMMARY: On April 5, 2012, Clearwater Police Department (CPD) was granted approval by the City's Resource Management Committee to utilize a$60,658 allocation under the federal Justice Assistance Grant (JAG) program to continue its successful Report Review Team Program. The Program was launched last year with funding from the department's 2011 JAG grant. The Report Review Team (RRT) Program was created as a means to increase supervisar efficiency within the police department. The RRT Program removes the burden of report review from first line supervisors. Implementation of the RRT Program has resulted in efficiencies for our field supervisors by allowing them to focus on evaluation and supervision of field personnel, employee coaching, community problem solving, and reaching other department goals. The smaller review team has also allowed for greater accountability and consistency in the final work product. The current RRT Program consists of three part—time non—sworn employees and operates under the super�isory umbrella of the Crime Analysis Unit. The team reviews, approves, and disseminates all police reports generated within the Patrol Division and by Police Service Technicians to ensure that the reports meet the minimum standards set forth by the department. Additionally, the team is responsible for the tracking of reports to ensure a timely review and to provide feedback to patrol supervisors if corrective action is necessary. The RRT Program currently consists of three grant—£�nded, part—time employees who supplement an existng part—time position within the Crime Analysis Unit. The three grant funded employees were funded by the 2011 JAG grant. The 2012 JAG grant will fund the salary and benefits of L43 full--time equivalent (FTE) report reviewer positions. This is based on a maXimum of 90 hours per week to be shared among three employees for a total of 2,967 hours annually. Based on the Pay Plan and using an hourly wage of $18.9949, salary costs are estimated at $56,358, with benefit costs for social security at $4,311. The total estimated cost is $60,669, which is $ll more than the grant award. Any difference between the grant award and the actual expenditures of the RRT Program will be funded from the Investigative Cost Recovery project. An additional part—time person will be added for tlis next phase of the program, and will be funded from Investigative Cost Recovery funding. Also, any difference in the hours between the Fiscal Year 2011 and Fiscal Year 2012 grant will also be funded from Investigative Cost Recovery funding. The additional person is equivalent to .75 FTE. For these additions, using an hourly wage of $18.9949, salary costs are estimated at $42,416, with beneiit costs for social security at $3,245. The total estimated cost is $45,660, all of which will be funded with Investigative Cost Recovery funding. Cover Memo The total cost of the program will be $106,330 with $60,658 being funded with the Justice Assistance (DOJ/BJA) Edward Byrne Memorial Justice Assistance Grant and the remaining $45,672 funded with Investigative��b�t��covery funding. This figure includes the $11 over the grant award that is referenced above. The Fiscal Year 2011 grant funded 1.75 FTE's. The Fiscal Year 2012 grant only funds 1.43 of those FTE's. The difference of .32 FTE's will be funded with Investigative Cost Recovery revenue. In addition, a fourth position, ar.75 FTE's has been added to the program in Fiscal Year 2012. The program will have a total of 2.5 FTE's. There is no mandatory match for this grant. The $45,672 from the Investigative Cost Recovery fund will be reflected in the grant budget as a voluntary match. There is no retention requirement associated with this grant and the additional positions will be eliminated when grant funding expires. There will be no direct adverse impact to the Police Department annual operating budget nor is there a required match. Should the RRT Program continue to be successful, it is proposed that subsequent years be funded through the same grant or the Investigative Cost Recovery project. Type: Other Current Year Budget?: None Budget Adjustment Comments: Current Year Cost: Not to Exceed: For Fiscal Year: Appropriation Code 181-99329 $60,658.00 2012 to Amount $45,672.00 Budget Adjustment: Annual Operating Cost: Total Cost: Appropriation Comment Voluntary Maich None $106,330.00 $106,330.00 Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo Item # 7 Pa�f� i ��f� ? ,4�P�L[C'ATI(7N Ff)� ?. �]ATE SC!E31�n1'I`[ l:l) .��}�plic�rlt Iderititi��� rF.DF�.RAL ����I:�TANC:E ' l. �f��'t'I� [7I� SC�F3"��15�][)�1 j. D�1TE REC'EIVE:.I) B�" 5ttite. i'�E�plitatic»� Ic��ntifier� STATr :'�p}�lication Nnn�Con:�tructi�i�� _ 4. De1'7�E ���:C'E�:I�'1=,1) E3�r' lacdcral Id�rltiticz� ilL,DrRE`�,L .�"1Clf�:'�1C'1' �.�LPPLIC'�'1NT I]�:F{�R]��1�11�IC]N LE�aI Na�Yl� ()r4�aniz�ttic�tl4i� l_:��it C:ity o[�C1e:G�t���°at�r, I�lnri�i�1 1'c�lice Ue�?�zrtm��lt Adc�ress N�ime an�i telel.�h�,ne nuii��-�er ��f tl�e �}�t-sn�1 tr� be cc7ntac:t�ei E�i� �',�7. [3c�:i 474$ i7��lters in�°al� in�. rhis Clcat-�atLr, }�lc�ri��a ����plic��tion � �75$-=�748 �S�:IYlIlt-l', .��3I1�� �7�!7� �?�)�-�i��' (�. EMPI�C)YI:R ID�hTIFIC'!1TI[�I� NLT11'I131;It ��'Il�) 7. "I�YP�: (3I�' .�YP1.IC.�,N'l� 5�-fi{�t][�?�9 Mtrnici��al 8. TYPL (7F f1PI'LIC�ITI[)N �. �I�,MI: {)F ��1:13i:Ii.4f, 11C;EI�C�• N ew° i3itr�ati c�f .itsstice Astiistaalce ] 0. C'A"1`r1I:()G U1-� ��I:I)I?K�,L D[�ME�TIC' �"�.SSIS�[�f�NC'I�� 11. I�F�C I�II'�l'i�''E� �CI�I�LE: f)I� E^yPPLIC:::�NT'S PIZ(.�.TEC'T NtIMIi�R: l Cj.7 �8 CI�1)A EUIh�'AI�4) I3�''IZNI_: MT'Nt[]RIl'1L JUSTICE Re��i�rt ��r•z��� Team Pro�r��tn TITL�: .ASSISTt"�NCE CiI�AN'I� 1'R(7[iFtAT��[ ?[)1? 1?. ARI;A� AFI;I:C'"i�I:D L�Y PR[7.iEC'T Cit��° c�f C`l� �r���t�t��- i?, i'ItC)I'(751�.!) I'F��).91.:C:T 1=�. C{11��GI2.I�_S�I{}N:'1L St4n•i D�ie: t7ct��ber O1, ?�)1 1 I�IS�I��_IC'��1"� O�' Lrld D�1e. Se�t�rl���r i�, 2{)l � a. Ap�lic�rrt b. Prc�ject E��L�7�,? }�I.14) l ti. I',S"��I1��E'ITLU Ft;�NI}IN[i 1 C�. 1:� AI'1'I.[C'ft"1�1[)N Fed�ral �fif),(,SK �l;B.fE�T T(-) lt�'V�E�' E3Y' ST:'4TE I���C`i''-l�lt�`E [)RDI��1� :-1p��lic<lnt �;�lti,f�7? 1? �7� �'R(�[.'1�ti5:? �tatc �[� �'ru�,fr�znt ll�is noi l�eezi selectecl l.c�cal $0 `" l�} tit�tc f.nr rc��i��� I�tt���:,!?`�r�t�ts.��j�.u�dc�j.�oi�l�ttlseSte.rnal,`a��plicatic�e�fZe��ie��.dc�'?�irii�t—�;�es �}!'�i?� 1? I3�1i'_�: � 0� � �_}t�]� C `}�[) P��c��ran� Iii�c�me `�0 17. I4 [ l Il�: .F'1I'F'�..1[:`��NT UELI�I�(;�)[1�:�J�� {?�� ��N�' PL'DL•:R:�1I: I7E13'� �' �1 [}�[�AI. �il fl(},; ;il � �� i�, T'C) �HE BEST OF M�' KN(}�v1�'[..]?T7frT ;�1I�I) �3LLI1;�1-`, ;'�[�1. [)A'1'A �l�i "1 I[i�; :11'PLIC"!�T1U�N YI�I;,�P�'I,IC'.�'�TIC)]'*�i �1RL TRiiE..ANI) C'C}i��l�C`"T. THE DQCt1tvIE.N�� C[.!�4 F31-:1�.1� [)1.1I.Y nl! 1 i lL)IZI�I-�[) �3Y CT(}V�'1�NI�1C► BE)UY [:)�' '[�1 il�� A.PI'I:IC.�LNT I'�NI) THE :"1€'i'L�C�'1]`�'1° VG�'II,I_ C'()]1��'L,�''v�'ITH TH� 1�TT'ACl ll�i] ,a�:�URANC'rS II� TI-[E AS�I��I�ANC�1; 14 I�1�()l_i[RT�I). � Clase Window � ti � E a� � litt���:"4r��ilts.nj��,us�loj.�,a�l�msi��terr��il a}?�?ii�:��tioa�I�eaie��.�lc�:'prii�t=ties �'S,�?{}1'? Program Narr�ti��e P�u6l�irr ldc'nlrfic�rtic�►t: inn'?(�1(],�?O] 1, kl�� C"learw4�ater F'c7licc I]c;�ai°trneni (CPD) irn�rlc��ler�ted a Re��c�rt Reti°ie�,� .l�ea��z (R1�T} Pil�t Pro�r�irn as an �ltea'nati��e it} licld sup�:rvisnrs revie��i�l� i��:��c�rt�. �[�he; pro�ram has �een s� �uccess#ul t17at C1ear��.ate:r ��c��,�;� �eeks in ��tili�c ?[3�? 1E�G fiinds t« er�har�cc �nd etpaa�� tlte tcart� 1��� c}ne mcmher at�r� contirlue the �rc�i�rarzt #t�r �rit�ther year. Traditic�nally, the poliue c�eparti�zent's re�,ort re��ie��� p1-c�cess h�ic� be�un at t]�e #ir�t line su��ep-��is��r4• ie��el, i��itl� al1 r�tfense_ inciderlt, 5u���lerti�nt, �i1�i crash repot�is beitt� revi��� eci ancl a}?�?r«�'ed at t4�is le��el. �epe�rts «°erc. 'the7� sei�t te� "C:ase Mana�est�ent.'' s� hc:re a secnnci re��i��� w� as ��one tc�r di�s�n�ii�atiotl purposes. I�lis ��ractice wc�rk�c� 4��e11 f���- n�ei»� years. �uC as the dcpa3-t»Z�:�tt's ti su�erviseary span ��f ����tr«1 increased, t}7�: sttst�inability �f tt�is practiee t4'as Ysi•c�u�,�it i�1tc� c�tiestic�al. � E "i�he rer�uctio� c�f supen-isory' personneI ���ithin t}�� departnlent lt��s created a dr�t�iatie cliaz��e in � s�aan nf contrt�l rs3tit��, ps�rcic�il�rl�� ���itliin il�e Patrol I)ivisit���. It� soine ca5es, }�atrnl tcanas laave a su�er�•is�r t� nffi�er ratic� �s �li�,�P7 tis 1:1�}. �E�h4 t1��a��ia��; c�f tearl�s �nd tl�e ct�tl5��lid�tion c7f �� oi°klc�ac�s �tas �zlsc3 �,l�c�,d an ae�ditic�nal h��rd�:n �nt� s�»3�e c�f 1k7e s�.i��n•i5nr5. "[ lz4re is nc7 i��Gesticm that the impae.t c�I'tl�ese chan�ws hae� � ne��iit e�ffec;t ot� su�rervis���•y �v4�ilabilit�� tn tield �ersonnel, iimelti• re�°ie��� �i` repc7rts, a��d sti�r�.t`r�isc�rs� �3�71I1i!' t(} Ci1Si1T�: CilIlSl5tZI7C�� ii� re�ort C�lt7�i�� . piC7'�'tC�lil� 3 C�Lle�lld.1' i��]UI`t !11 � i1PilC�ti' 171c1T1I1�I' i5 Ofe [7�]'�iT770L1111 lII1�lClI'l�I1Cf'. l[) ����. AC�L'�1t3C?tic�ll�', police departrnent re}��rts are trequei�tl� s�.ihj�:ct tn puk�lic. pc�litica�, anci judicial s�rutiny. I'ric�r t�7 t�ie iin}�lem�ntatiotl c�f ttie RFt�I�, the de�artanent reliet� nn tirsi li��e st�per4 isc�rti }�er�nrztic.l t�? etisure �7ualit} control. It� ihe �ast, pEitr�rl su�er�°isors re�•ie��ed appd-n�irn3te�� -��.Of�f) rep�c�rts per year. Assui�lin�� eaeh report rcc�t�irt;d I5 tnintiites of �upc:t-vis��' titiZe to re��ic�� a�zd appro�-e. tllis e�uatec� to Eipprnximatelti° 2- � h��urs that a sed��erw isc�r s�e�1t eac}a day a'ev't�rw'ing reports. A rc��iel� o�� inci�i�nt t'e�art� in ?Q 1(} indi�:ate� a 1c�w4 repc�t-t rejcction rate amon�st t�ie r�lajcrric�;` of tic;ld st�pe�'ti ise�i-s. Thi� �tt•c����l� s�ig�^ested tH1ai titanr c�i� t�ie tie�arkment"s t'epoa•is �iez-e nc�t suhj�;ct ica ri�c�re�us re�'iew c�r scrtdtiil�' anci tl�at th� trac�itional ��ractic�: ��f� revietii in� pc7lice ��eporis w r�s ciot tl3e m�st c:ftiLient use af su�ervisnr}� titZle atid ciic� �lc�t �i�stir� a��uality r��c�rk �rc7c�uct T��e F.'eport Rer�ie��� Tean1 E'ilnt Pr���r�m �was iz�l�l�tr►e:nt�d utilizin�� ?[}l 1,IAC� fut�ds and ser�•�:� a� a m�a�ls t�� increase su��rti�isnr efficizzicti s�it�iin �1ze ��c�lice �e�artr�iet�t. 1"l�c R.I�T Pii��t Pr���iam heis k�c�t� e�it'eme��� sucecsstiil it1 remc���iti� il�c burdea� o#'re��cart revit�� frc�r31 ttrst lii��e supe.r��isors �nd l���s r�si�lted in ei�#iciencies 1:c}r c�titr tield s€��ren�isnr� by allow�in� then� to fc�cus c�n evalt�ation ���d su�er�,�isit�n c�f �iel� ��ersonnel, �:rn��lo4'ee ct�acllii7S��, Lt]177171L1i11��% �7I'C1fJ1�T11 5[3IL'1I7�. ��tid �eaehin�= nthc�r de�at'ta1le��t �o�ils. T�le smaller revie��� �eat�a ltas also all�����ed ti�r �re�ter accntlntability and c�nsistencr in the tii��zl ���c�rk ��r��duet. Praject Sarfr2►tr�rr��: The enhar�ced RRT Prcis�rat�l ��ill cansist of`�i intal c�# ti�-� ��f�rt-tinle, nt�r�-st��E�t�� ei�����4}yees and �t��ill �per�te �u�det� tite su�ei-� isol-�- �in�brella c�l� tlle C`ri�ne ,-'���alr`sis �!nit. 'l�hc team c�ii�rer�tl� i� �c�m��rised «#' canc cxistiti� pai�t ti1��e eta�plo��ee ai�c� thrLC J.�,Cr �rant-lu�ided e��1pl�,��ees. C�lear���tcr pro�st�se4 ��le �����itic�t� ��f ��nG r�1c7a•e additi��nal ea�Y��lo�•ee tc� he fi�nde�i thi-cati�h t�1e �rant, u5ii�g he�th f�det'al anc� lr�c�l T�t�atcl� fun�{ir�� brii��it�g il��. toial n�unY�er ��f� ��e��c7ri ret ie���ei-s t�s �i�e. �`17e teatn E�ill c��niinii�: tn r�ti�i�:«. a��rc�t�e, atld �isse�aiina�c all p�licc� �-e��c3rts ��i��a'�ked ��itl�in tl�e Patrnl Ui4�i�ion ai�cl by Pc�lic�: Scn'ice �1��.�:��x�ieiatts lo ei�s��re th�it t�le repc�rts n�eet t�te i3�ainin�un� stan�i�rds �ei ft�rth �� the d�partment. ad�iti�nal�4�, tl�e team ��ill l�e res��ansihle f�r the trackii�� c�f rept���ts to e�nsure a tlinel� r�vie«� ai�c1 �Src���idc fe;�dback to p�atr�.�l su�er� iscrrs if` cr�rr�ctive actici�i is i�ece:ssar��. The F'olice �e�artment ���ill c��r�lin�E t❑ em��loy thc thre:c crc�€lrtio���rl paxrt-ti��ie re� ier�ers c�hc� �rc. cut'rei�tl�t tundecl ur}�er t11c 20] i JAG ��railt, 11 i`nui-tl� part-tin�� re;vie��,-cr ��-ill he hi�`ed. .�,ll fc�ur }��sitit�ns ���il] Ue ti�ndec� us�r�� "?(]12 .fr'��i ft�nds and local t7�atch. Tliese four �-e��c�rt rev�c��cr ti c�5itic�ns ��ill su a le:ment tlte e.r:islin� ait time nsitic�n �t�itl�iz� ti�e C"�'itr�e ,�.i�al��sis �init tt�r a � � ,� 1}?' P.._ � � , � t«tal c�f itve te�m i�iembers. � � Tlie iZRT ��ill �c�nsist of �l �ra��trf�mc�G�i �niplc�G•ees. ����rkiii4� {i���i-oximat�l� ?�? i�ot�rs pc�• ti���k, for one �•ea��. fnr a t�tal ��t� �.?4]Cl hratiirs. �1'he l�c�lirlti' rate ���ill hu $➢8,�9�9. 2.�1��7 of�tl�e �.?L7U annual h��urs will be iunde�i ti�°itl� f�cieral fiur��is in tlie �iznot�ni c�f $56, �58. ?,? �; l�c�urs � ill be fu��c�cc.� frc�tm the C'l�:ar�°ate�- Paiice Departir��r�t�� [i1l�cstzgative �ecc�G�err� F�dri� (IRFj l�r �i tr�tal ��f� $�2,� 16. Sc�cial �ecurity f�-i�i�e beneiits ��ill be �aid Fc�r a11 intir �r�tnt-1-utZde� empl��r�'ees at a rate c�f 7.{�5°'0 i`t�r ?,�367 hnurs ic�r a tc�tal of $�,_i l 1. S��tial Sec�arit�• for the r€triaii�i�z� 2,? i� h�aua'� ��ill be p�ic� fr�m tl�� IRr in the amaunt c7t� $�?5(�. I3udget I]e�tail Worksheet A. Ners�nnel — C�ist each positi�i� h�• title ailci flame ��#� e�nplu��ee. if availalilc. ��i��« the tii�rival s�las�� t�ate ai�d t�le �}er�et�ta�e �f�timc tn �e dc��c�tc�i tn t}le }�rc�;cct. Cr�m}��nsatic��� ��aid l��r �:z�1p1c���ccs cn�a��:c� it� �rant acti�;•iiie5 i�ius� be cc}�isist�nt ti��ith that �Said �t�r s'tt�zilai- �cjr�: �iitllin ihe appl�ca�7[ e�r•gani�atio�i. �I <iinelI'c�siti ��a� Rept�z-� Re�•i�:���•er S�la�� Cc3m�er�satican 4 persnr�s x?� lic�tjrs per �,�eek � ti? r.� eel�s � �? Ci[l l�c�urs �irar�t f�ilid���: ".'��7 hours x $18.���?��) �er lu���r = ��G. }�K Lncrrl irrrrtch: 2,233 frnc�rs x�18.9949 per Ire�rrr = $�12,d11 d C'ost ��b, ��� ti � E a� � 42,416 T+UT,�L �98,77� B. Fringe Benefits — F'ring� �ie»chts �hc�ulL-i hc hastci c}ra actual knc�4�n c��sts c�r an c:stahlishce� fc�rrnsila. Fri���e k�eneiits are i:oa- the j�er�otZn�l �ist�d it� ��ud��t cate��nry (a) and c�ill� f`�r lhe p�:i•centa�e nf time de��c�ted tn tl�e �roj�;et. ` :�:am�'Pc�siti«n Re�c�a't Revie�rer I3��telits Cc�tnt�utation Cirant fu���cd: Scici�il 5�ct�rity r�i:' 7.fi�% lor �.9�;7 lzc�urs = `��. � ] l Lc�ccrl rr�rrtcli: Sc�ci�r! �ecuritl� �u; 7.6:i "� fo� .�,�33 frt�urs = �3,�95 $11 rrdditio�ral h�rie�tS L"JtflY��fl fU Irtcrrl rrrrrtell rxs tlre r�ctrrcrf tvta# clr�!!ar anrvrrirts ��=ilf e�c•eett tlre ba-ajrt a►vrrrrl rr�rc�aryrt c�f .�60,658 C`c�st 4.3 L) (] 3,256 T[�Tr�L �?,5�6 C. Tra►°el — Itcn�i�c Travel c��Strlses c�t prc�.ject �er5on�i�l L��� pur�ose (e.�.. stafl'tc� tt'4�atai�i�. t�elc� inter�ieti��s, ad4�isary group �neetin��. etc.). :4licz��� tlle b��sis c�fc;c�rn�irtatior� {e.�., si� pec�ple to ;-cia} trainin� �tt ��: airfar�:, �� l�d�;i�7��. �X suhsiste�3te}. 6ci tr�ir�in�.: ��rojects, tra4�el and meals �nr trainees sh�uld �e listed separ�tel�+. Shc�r� tlle nui�7ber c�l�irai��ees anc�l tbc uriit cc�sts invc�lveci. �cienii#ti- tt�e Ic�tati��n t7l�tra��el, if k1�cz��n. Ir�cii�ate sc�tirc� c�fTr��s•el Policies ��}���lie�i. 1'�p�lie�ziit E�i' F���eral Trati�el Regulatinti�. se �1' T�-aw�el 1]�:stinariozi Ittr�� C`�����?ut�tic�n Cost �1�U�[��L -�- ll. E�ui�ment � List nc�r1-e:�penc��ihfe itetx�s tl�at ar� tc� lae ��urchased. Nc�ricx��enda�a�c c:��tiipment is tat�gi�le prc�p�rtti� hati�ir�g a usc�ti�l li�e ofn�ore thai� t��o �'ears at�d a�� accluisiCi��n cc�si c�f�$S.�7UU c�r �nare per uni�. (Nc�te: C)r�,ani�at�c�ii"s c�GVn ca}�ittili�3tint� p�7lic�' ma�� be u�ed fc�r iteirls c€�stii�� I�ss than :��,0[]{)). E:x��ndable iteins shoul�� bc in�:lttc�c:a eithez- ii� ihe '`����a}�lies" e�ttc�s�ry c�r it� the "[)iher.' c:ate��c�rt ..�1ppIicar�ts �l�nuld ana�ti ze the cc�st henetits of purchasin� it�n�s �=ersus leasizl� � equipment, especiallti �ai�h-cc�rs[ items anii those suhjc�t to rap��l tecltnical �d����ces. Itented c�r iea�� e�uipment costs sh«uld ��e �isted i�� �he "['c�ntractual" cateS:,'c�ry. E,��lain hc�« t�1e. �;�lui�3n3ent is E n�.Ge:ssat�� for 4he sucLess nftF�� prci,jec.t, .�l.ttac�� �i nai-r���ive deserihing thc; �irc�curen��z�t methi�c� tc� k�� used. Itcrn C'nn��titatit�n Cc�st TC1T:�L -0- E;. �uppli�s — List %t�ms �� t�•}ae (c�tiicc su��plies, pc�sta�e, trainin��' n�,aili-ials. cop?;in� }?aper. anc� cxpencia�le itc.ins ccastin� less tha�1 �5,()(}U, suc1� as �c���ks, l�anc�-hcld ��p� �'ec oz'�ers), anc� sl7c�w� the basis ic�r ct�m}�utatit�n. {:?�Ic�te: L�r�aniz�tinta's c�r�n capitalizatioa� ��«li�:t' t1�ati� re «se�i fe�r itetns castii�� less than `b5.{.)(}(]?. GenerE�ll�, s�ip��l�es inLlude G�tat� tnaterials that are expenc�ahle c�z- c�i�ts�ii2�ec� dua•in� the ct���rse c�i� the �rr�je:ct. F.. Su��pl�� [tc���s Cczr�lp�it�iic�t� Cc�st 'T('IiAI.. -V- F. Construetion —:hs a rule, cc»zstt�uctzotl cc��i5 are nc7i allc���ah1�. [n wc�me cas�s, tnin��i• re���zii-s ��r ren��4ations ina�' be alloi�ak?l�. Cons�ilt ���ith the ��rc�graaz� c�ffice t?ef�re b��c��etin� ft�r�c�s in thi� c�tc«c�n�. Y�irpnse Descri��tic�a� ��1 4�'ork Cc�st TC}TAL Ci. Cp11511I�&rii'SICOIlI't'elCtS - I1�L�SL'�tC t?a�1C'.tI7�1' r��I711��1i11 ti j(?I'I17z�7, «Cil�C17 I�Pi7CU1'LtZ1�I1� P011l:i� c3r tklc �=ederal r'lcqttisition i�e�ulatic�ns at•� f«llt�.��ec�. C'n��:rt�ltct�tt f'c�es�: �'t�r e�ich �nnsultat7t ent�r ih� natne, ii� �no�� n: scr�•icG io l�e I�r��� ii�ed: }ZC�t�rlv ��z� €�ail�` fee (S-hc��ir dav}; ai�d estia�late�j tim� c}i� tkle prc�je�t. C«nsuliant tees in e:xcess of $?�() ��r ci reqtAire aaditi�nal justit�i��t�an an p�'inr �Yp�rc�r�al l��r ().iF'. I�iatt�� r�#` Cc�alsultarit Sct�,�ice Prc��°ided C'c�r�lputatic��� �'c�st S��6totcr! �-0- C:'r�r�.s°rrlF�rnt f::t��c�tz.sc�,s.` L�st all expc�lscs to bc p�id fr���n tl�e �rant ta thc inc�r� id�ial ennstiltar�ts in additio�� i�� their fees (e.�., travcl, mi:als. ]c��lgin�, etc.).. It�m L�ca[i€�n C: t�rn�utati��n C' � E Serbt�trxl '��- ['r3ntf�c-tcts: Prca4 ide a desc:ription c�f thc pr�duct nr serr ice tc} t�e ��rc�curec� h�• �c��itract ar�d an e;stimate �f the cc�st. Appiical�ts are e��cou�-a��d t�� �rom«te 1'ree a�ici o�en coriipetitio�� i�1 �� arding cntttrarts. IL separate justific�itiz��� must be �rc�t�i�iec� ior so�e sourc� ccantracts in e�ctss c�f S�1 ��(�,O[)U. Itern C'c�st 5'erhtr�ta! -0- T[]T�►L-il- H. Dther Costs — Lisi �terns �e.�.. rent, re�r����L�rti�n, tele�hnnc,.j��utc�rial or secua`it�� ser� ices, ai�d 1T14`�511�cit1�'� [lT' CC}Tlflt�l'.T1�1a� ��U11C�ti} �y lllc1j01" t1'�7f: �i]C�I i�1L' 2?'t1SIS i7� ��1� C:CIIT1FJEilt�tic3iY. Fn�- e:��r�pie. prc�t idc: tl�c sc�uare ft��ta�;e at7c� the �.e�st ���r s���iare ft�c�i ic7r r�rit, an�� p�-t��°ici� a�nont�ll�;� realt�.l cc�st and h�w tn�nv months tc� rent. Descri�tic�n Cc�tnpt�tati[�n Cnst TUT�L -[}- I. Indirect ��osts — tti�iii'e�i ca�cs are all����t�i ��nl�� if ttle ap��lic��nt has a 4�ec�erall�� apg�ro4'ec� ir�dircct ���st rate. !'� co�y «f�th� rate; a��pi•c�r�l (a lii�l� e:�ecutc�l, i�c:�otiatzd agreeinent} must he �ttacl�eel. I1' the applica�lt dnes not �1ave ar� eip�i-c�v�c� rate, oale ca�i be t-e����estcd h�' cc�tztactit�� tlYe ap��lict�i�t�s cngnicant Fec�era� agGi-�cy. ��hicil «ill i-evieu� al! dc�c�it��entatio�Y �tt� ap�rc7s�e �� ratc ����' the appli�t�rit ar�anizatit�n. or if�the �a��}�licaz�t's accc��zitiin� sl��tem permits. ct�sts t�1ar ��e E�ll�c€itec� in t�ic c�irect cc�st cate�orae�, [��:s�riptic�n C' T+[)TAL C nst ti � E a� � J. I3ud�et SummarS' —�'h�n rc7u �Ya� e c��m��l�ted tt�c �i�dget ��,c��-I�sk7ec�t. t�•ans�:�r t��e t«tals far cach �.ate�ory to th� spaces be�c��. C'nnlp�ite: ihe tc�tal di�•eci c��sts and the totezl �rcrject cc�s�s. lr�dirt�t�: tl�e ail�r�unt taf �eder�l funds r�c�ur.sted �i3�i tl�e amc�unt c�f� n���-[��cderal #iands t11at l�; ill s���pc�trt C���. prc.�ject. Buc��ei Cate�c�i-� �1,. Pers��nel B. ra•ii��e Ben�tits C. "l�ravel I3. E�ui�ment F.. Stipplics F. C'ansirt�ctic�r� Ci. �'o��s�iltat�ts,�Co�ltr�cts H. C)ther :'1inc�unt $E)8,77�1 �7,Sj6 `b-[1- `�-Cl- �-(]- �-(�- �-0- �-0� "l�c�tal i]ij•ect [:r��sts �106,33� I. In�iirect Cc��ts �-[l- T(]TAL PRrUJECT CC3S"I'4 �1�(,33f1 h'��i�r�l I�4c�uest I'� c�n-Fec�eral l�eq �icst S6U,658 54�,(a72 ti � � � Work Session Council Chambers — City Hall Meeting Date:4/30/2012 SUBJECT / RECOMMENDATION: 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 May 1, 2012 through Apri130, 2013, in accordance with Sec. 2.56(1)(d), Code of Ordinances - other governmental bid, and authorize the appropriate officials to execute same. (consent) SUMMARY: This Blanket Purchase Order is a piggyback of the Florida State Contract 863-000-10-1. This contra�overs the period April 1, 2011 through March 30, 2012. The State of Florida extended the contract for 30 days through April 30, 2012. The State of Florida agreed to a one�ear renewa] of this contract with the vendor making the effective date May 1, 2012 through April 30, 2013. This contract covers the purchase of several different sizes of tires for use on all city vehicles. Type: Purchase Current Year Budget?: Yes Budget Adjustment Comments: Current Year Cost: $360,000 Not to Exceed: $380,000 For Fiscal Year: 3/1/2011 to 2/29/2012 Appropriation Code Amount 566-06611-550700-519-000 $380,000 Budget Adjustment: Annual Operating Cost: Total Cost: Appropriation Comment BPO None $360,000 Bid Required?: No Bid Number: Other Bid / Contract: Florida State Contract Bid Exceptions: None #863-000-10-1 Review 1) Financial Services 2) Office of Management and Budget 3) Legal 4) Clerk 5) Assistant City Manager 6) City Approval: Manager 7) Clerk Cover Memo Item # 8 Work Session Council Chambers — City Hall Meeting Date:4/30/2012 SUBJECT / RECOMMENDATION: Approve a Contract (Blanket Purchase Order) to Honeywell International Inc. — Building Solutions of Clicago, IL for an amount not to exceed $140,000 for the quarterly Maintenance Fees for the period May 1, 2012 through April 30, 2013, per the contracts dated Nov. 17, 2008 and April 28, 2010 and authorize the appropriate officials to execute same. (consent) SUMMARY: The City of Clearwater signed two contracts with Honeywell Building Solutions to retrofit various buildings with energy saving devices under the State of Florida Energy Savings Contract 973-320-08� These contracts included provisions for guaranteed savings under the Performance Contracting specifications. The first contract was signed on Nov. 17, 2008. Several lighting changes and air conditioning unit replacements were coinpleted at the Long Center. Also, a dehumidi�er system was installed in the pool area to remove high humidity and chlorine particles from the area to create a better environment and protect the steel structure from rust and deterioration. This contract term is 20 years. The guaranteed savings for the 20 years is $4,964,669. The second contract was signed on April 28, 2010. This contract included lighting changes, air conditioning replacements and automated HVAC controls in various City owned buildings and pool pump replacements at the Long Center. This contract term is 15 years. The guaranteed savings for the 15 years is $6,119,618. The contracts required Honeywell to maintain all the systems installed for the term of the contract. This Blanket Purchase Order covers the maintenance and audit costs for one year. Type: Operating Expenditure Current Year Budget?: Yes Budget Adjustment Comments: Current Year Cost: Not to Exceed: For Fiscal Year: Appropriation Code 565-06531-530300-519-000 Bid Required?: $128,861 $140,000 4/1/20ll to 3/31/2012 Amount $140,000 No Budget Adjustment: Annual Operating Cost: Total Cost: Appropriation Comment Other Contractual Services Bid Number: None $128,861 Other Bid / Contract: Bid Exceptions: None Review 1) Financial Services 2) Off'ice of Management and Budget 3) Lega14) Clerk 5) Assistant City Manager 6) City Approval: Manager 7) Clerk Cover Memo Item # 9 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Approve a proposal by Construction Manager at Risk Biltmore Construction Co., Inc. of Belleair, Florida, in the amount of $281,540.04 for the rehabilitation of three vehicular bridges in the City of Clearwater, which includes all labor and material costs to complete the rehabilitation, and authorize the appropriate officials to execute same. (consent) SUMMARY: The City of Clearwater Engineering Department initiated this routine maintenance project to prevent further erosion and deterioration of bridges as identified in January 2011 FDOT (Florida Department of Transportation) Bridge Inspection Reparts. Maintenance and aesthetic worlc will be performed on the Clearwater Pass Bridge and the fender system in the boating channel below. The other bridges are on Fairwood Avenue over Alligator Creek and on Overbrook Avenue over Stevenson's Creek. Biltmore Construction proposes to perform the bridge rehabilitation under the Construction Manager at Risk contract in the amount of $281,540.04. Construction, Engineering, and Inspection (CEI) services during the construction period will be completed by the City's Engineering Department, which includes regular on—site construction inspection, engineering assistance with onsite observations and interpretations, review of shop drawings, attending meetings, and responding to contractor questions. The contract period for construction is 150 consecutive calendar days estimated to start in June 2012 and finish in November 2012. The Engineering Department shall own and maintain, in conjunction with the Parks and Recreation Department, the proposed improvements included in this contract. Sufficient budget and revenue are available in the Capital Improvement Program project 0315-92274, Bridge Main and Improvements. Type: Capital expenditure Current Year Budget?: Yes Budget Adjustment Comments: See summary Current Year Cost: Not to Exceed: For Fiscal Year: Appropriation Code $281,540.04 $281,540.04 2011 to 2012 Amount Budget Adjustment: Annual Operating Cost: Total Cost: Appropriation Comment l►� $281,540.04 0315-92274-563800-541— $281,540.04 See summary 000-0000 Review 1) Office of Management and Budget 2) Legal 3) Purchasing 4) Legal 5) Clerk 6) Assistant City Manager 7) City Approval: Manager 8) Clerk Cover Memo Item # 10 �. BILTMORE C 0 N S T R U C T V 0 N ApriE 09, 2012 Mr. Kelly O'Brien City of Clearwater Engineering Department P.O. Box 4748 Clearwater, FL 33758-4748 Re: Sand Key , Overbrook Avenue and Fairwood Avenue Bridges Bridge Maintenance Proposal Revised Dear Mr. O'Brien: I�ECEIv ED �PR 11 zo�2 �(tj, ��,�>;��f ClearN,ater erir,�2 Del>arh�oN„� As per your request, subject to the Clarifications and Qualifications listed herein, the total cost to provide the bridge maintenance services as outlined below is as follows: DESCRIPTION AIV90UlVT Cost of Work Sand Key Bridge $ 128,616.95 Overbrook Ave. Bridge $ 10,942.24 Faarwood Ave. Bridge $ 38,564.50 Erosion Control/Containment $ 4,800.00 Contingency 20 % of total above $ 182,923.69 $ 36,584.74 Subtotal Base Proposal $ 219,508.43 Add Alternates 2-10 $ 51,693.01 Contingency ore Alternates $ 10,338.60 Total Proposal with alternates $ 281,540.04 1055 Ponce de Leon Boulevard Belleair. Flarada 33756 . 727-585-2084 . Fax 727-585-2088 0 � � E a� � J. Parker to K. 0'Brien April 09, 2012 Page 2 of 6 Clarifications and Qualifications Owner and Construction Manager / Contractor agree no#withstanding any other covenant that, due to the special nature of this project, the Construction Manager / Contractor undertakes this work subject to the following specoal conditions, terms, and understandings: 1. Scope of Work Sand Kev Brid�e Provide all materials and labor required to complete otems 1 through 5; 7 through 18 on the Bidders Proposal Sheet (attached), and add alternates as approved by The City's project manager listed below. 1. Repair 2' X 1'-5" X 3/4" spalled concrete on underside of utility box (element 12) 2. Clean 8 expansion joints of debris at abutment 1, pier 4,7,10,13,16,19 and abutment 22 (element 300). Including MOT, removal of debris by mechanica9 means, final cBean with compressed air. 3. Re-fasten pull box covers or install new covers at West side of the left ens'sde 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. �.5. 16. barrier in spans 1, 5, 9 and 11 (element 331). Rernove �.0" X 5" X 4 1/2" over pour of concrete at top of bearn pedestal 15-7, pier 16 (element 310). Re-fasten top of east access ladder at pier 11 (element 563). NIC Remove spalled concrete at top of pier caps 10, 11, 13, 15 and 16, 9 locations totaV (element 234). Replace 15 walkway planks at North and South fenders (element 387). Replace 9ower wales at East end of South fender, .8 MBFM (element 387) of treated wood timber as per FDOT Section 955. Repair delaminated concrete at top of seventh battered pile from the West end of the South fender, third battered pile from the East end on the North fender and the first battered pile from the East end of the North pile (element 387). Repair broken cable wraps, fractured stringer and walkway planks at interface of panels 15 and 16 of the South fender and repair spalled and delaminated concrete at pile clusters 2 and 4 from the East end and the West end of parael 16 (element 387). Repair delaminated concrete at the top of the knee wall retaining rip-rap at the East end of abutment 22, approximately 4'-6" X 8" (element 396). Repair delaminated concrete at South bulkhead cap approximately 30' X 1' and spalls 14' X 10" X 2" (elernent 290). Clean, repair /seal South bulkhead sheet pi9ing ( element 290). Repair/replace 19 existing light fixtures along East side of structure (Inspection note DGDO). Prepare surface and instal! 5135 lineal ft of 8" thermoplastic white edge line. 0 � � E a� � J. Parker to K. O'Brien April 09, 2012 Page 3 of 6 Overbrook Avenue Brid�e 17. Remove arad replace existing wood timber retaining wall at Northwest corner of bridge with new SG-625 vinyl sheet piling as per attached product daia sheets, approxomately 14 9ineal feet and new concrete tie-backs (element 476). Fairwood Avenue Brid�e 18. Clean (sand blast), prime with Sherwin Williams Fast Clad Zinc HS Primer, and coat with Sherwin Williarns Targuard Coal Tar Epoxy Coating approximately 221 0 lineal feet of existing steel sheet pilong. An allowance of $2,000.00 is included to � repair steel sheet piling as needed. Repa'srs include removal of bad areas, � cleaning and welding new steel patches. � 19. EROSION CONTROL— No degradation of water quality, increased turbidity of the water, and/or discharge of any foreign material into the water shall be permitted. Containments shall be designed and used to collect wash water, abrasives, debris, coating materials, and other project related materials from entering the water through spills, releases or deposition frorn airborne materials/overspray. Containment plan shall be approved bv the En�ineer prior to start of work. Once the containment is set up, it will be inspected in place and approved by City staff prior to start of work. These containments must be adequately maintained for the duration of the work. No staging shall occur within erosion-prone areas adjacent to the waterways. Any rr�aterial to be stockpiled for rnore than 24 hours shall be protected by appropriate erosion control devices. �ust control measures are required as necessary to prevent the surface and air transport of dust from any construction activity performed under this contract. When cuttong thru corecrete, care should be exercised to prevent dust from becommng air borne. The Contractor must use an engineered control such as the use a wet saw or dust collector. No separate item for dust control measures is inc9uded for payment in this Contract. The Contractor shall consider the cost of any dust control measures that is necessary for the proper construction of the project. Contractor shall be responsible for the requirements of turbidity barriers per FDOT standards Add Alternates Overbrook Avenue Bridge Alt 02 Bridge Railing — Clean and repaor minor cracks and spalls existing balusters with new to match existin� Alt 03 Concrete Culvert Repairs — Seal asphalt cracks with hot tar roadwav on both rails. Replace 4 reaair. Reqair construction $ 1,138.31 $ 6,323.97 J. Parker to K. 0°Brien April 09, 2012 Page 4 of 6 joints with NP1 Caulking. Repair spalled and honeycombed areas with �ASF 1060 and Euclid Redline Patch Materials. Alt 04 Concrete Wall Repaors — $ 4,196.82 Repair spalled areas and open joints. Install additional anchor supports for utility pipes. Alt 05 Channel Repairs — $ 15,970.90 Scour hole at SE corner along South wall, approximately 14' X 5' X 4'-6" with grout. Repair eroded bank areas. Tota9 all Add Alternates Overbrook $ 27,630.00 Fairwood Avenue Bri Alt 06 Concrete deck — Repair all asphalt cracks in roadway and shoulder with hot pour joint sealer, repair existing curb damage. Alt 07 Clean and reseal exasting expansion joints, 99 lineal feet. Alt 08 Repair all spalled concrete at open girders Alt 09 Repaar all concrete spalls and cracks at columns. Alt 10 Repair approach s@ab undermaned areas. Total all Add Alternates Fairwood $ 8,667.28 $ 7,633.46 $ 3,679.89 $ 2,069.94 $ 2,012.44 $ 24,063.01 1) Time of performance — Construction Manager will endeavor to Substantially Complete the Scope of the Work in one hundred twenty calendar days (120) from the receipt of the Notice to Proceed arad all requored permits. Final comp9etion will be thirty (30) calendar days after Substantial Completion. Sand Key Bridge may have a separate Notice to Proceed date as required to avoid holiday/event traffic. 2) No liquidated damages are in effect for this project. 3) No permitting is anticipated as the work is considered maintenance. 4) The Construction Manager sha91 observe the Owner's guidelines for project security at all times. No watchman service is included in this Proposal. 5) Due to the nature of this work, �uilders Risk/property insurance cannot be provided. 6) Use of contingency funds must be approved in writing by The City's project manager or appointed representative. 7) No temporary trailer facilities are anticipated or included. We do include temporary toilets for workers at Sand Key Bridge only. � � E a� � J. Parker to K. 0'Brien April 09, 2012 Page 5 of 6 8) Testing and surveying 5ervices are not included unless encluded above. 9) The Cuty reserves the right to accept and/or reject subcontractors. 10) Warranties and Guarantees: Biltmore Constructiora Co.. Inc. to the Owner Bil�more Constructaon Co., Inc. warrants to the Owner that the materials and workmanship furnished under this Contract will be of good quality and new unless otherwise required or � permitted by the Construction/Contract Documents, that the Work will be free from defects � not inherent in the quality required or permitted, and that the Work will coraforrr� with the � requirements of the Construction/Contract Documents. Work not conformong to these requirements, may be considered defective. Biltmore Construction Co., Inc.'s warcanty excludes remedy for darr�age or defect caused by insufficient maintenance, improper operation, acts of god/nature, vandalism or normal wear and tear under normal usage. �he term and duration of this express warranty is one (1) year from the Date of Substantial Cornpletion. The provisions herein shall not prevent the Owner from proceeding directly against the manufacturer and/or installer for such longer period of time as allowed by state statute. Installer / Subcontractor Warraraties and Guarantees The Subcontractor shall warrant to the Owner and to Bi6trnore Construction Co., Inc. that all workmanship and materia9s are free from defects in installation. The express warranty/guarantee shall be consistent with the d�arations stipulated in the Construction/Contract Documents, customarily one 1 year from the Date of Substantial Completion. Notwithstanding anything to the contrary, neither Biltmore Construction Co., Inc., nor its surety, nor the Subcontractor shall have any joint/several liability relating to, nor shall they be obligated to underwrite, or in any way becorr�e g�oarantor(s) of any manufacturer's warranty/guaranty or product to the Owner. The Owner shall be provided with the "standard" rraanufacturer's warranty, and it shall satisfy the requirements under the Construction/Contrac� Documents relating thereto. Manufacturer's Express Warranties / Guarantees Biltmore Construction Co., Inc. shall collect and transmit to the Owner any and all standard manuiacturer's warranties and standard manufacturer's guarantees specified in the Construction/Contract Documents. The obligation and liability of Biltmore Corestruction Co., lnc. and/or its surety is limited to the collection and proper transmettal of #hese warranties and guarantees to the Owner. J. Parker to K. O'Brien Aprul 09, 2012 Page 6 of 6 Existin� Warranty/Guarantee: Notification to any previous or existing guarantor to maintain any pre-existing warranty is not included. 11) This proposal is based upon tF�e performance under the existing Continuing Area Contract for The City of Clearwater dated February 28, 2011. AEI work shall adhere to Florida Departmen� of Transportation (FDOT) Roadway Design Standards and FDOT Bridge Maintenance and Repair Handbook (Latest Editions) and The City of Clearwater Contract Specifications (as applicable). Additional cost as a result of corraplying with The City's 0 Contract Specifications will be reimbursed to the CM from contingency funds. � � 12) Notwithstanding anything to the contrary, the Owner specifically acknow9edges and agrees � that the Construc�ion Manager (Contractor) operates on a pay-when-paid basis with its subcontractors, and nothing contained herein or elsewhere shall be unterpreted to require the Construc�ion Manager and/or its Surety to remit any payment (including final payrr�ent) to subcontractors prior to the receipt of payment (including final) from the Owner. Please contact us if you have any questions. Very truly yours, � ,-� � > �-. ` ��...a - Jeff Parker�� Vice Presi�nt �� � J P/gb 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 2012 Bridge Rehabilitation Sand Key Bridge Repair spalled area at utility box LS Rernove dirt and debris from 8 expansior� joints LS Replace pull box covers LS Remove overpouc frorn beam pedestaV LS Secure ladder at pier 11 LS Repair broken suppor� post ior clearance flood 9i� LS Remove spalled cor�crete from pier caps LS Replace 15 walkway planks LS RepVace lower wales LS Repair delamination of pile tops LS Repair broken cable wraps LS Repair kneewall de9amanation LS Repair delamenation of South bulkhead cap LS Clean and seal horazontal cracks at S. Bulkhead LS Replace 19 light fixtures LS Install 5135 If of thermoplastic white edge line LS Total Sand Key Bridge Overbrook Ave. 17 Replace tember retainang wall and replace with LS sheet piling Alt 2 Alt 3 Alt 4 AVt 5 18 Alt 6 Alt 7 AVt 8 Alt 9 Alt 10 19 20 Replace (4) ballusters, repair cracks on rail LS Concrete culvert repairs LS Concreie wall repairs LS Channel repairs LS Total Overbrook Ave Fairwood Ave. Clean and coat 221 If of existing sheet piling LF Concrete deck repair LS Clean and reseal expansior� joints LS Repair spalsed concrete at girders LS Repair spalls and crack at colurr�n LS Repair undermined approach slab LS Total Fairwood Ave Subtotal lines 1-17 Erosion Control/Containment Contingency C� 20 % LS Total Lines 1-18 Subtotal Alternates 1-10 Alt 11 20% Corotingency Alternates (ii required) LS Total Alternates 1 - 11 Subtotal Proposal Contingency Total Proposal Total Proposal Total 1 $ 3,535.75 $ 3,535.75 1 $12,750.12 $ 12,750.12 1 $ 746.44 $ 746.44 1 $ 3,435.75 $ 3,435.75 1 $ 646.45 $ 646.45 1 $ - $ - 1 $ 3,185.75 $ 3,185.75 1 $ 2,092.87 $ 2,092.87 1 $18,128.74 $ 18,128.74 1 $ 6,871.50 $ 6,871.50 1 $12,950.12 $ 12,950.12 1 $ 8,117.93 $ 8,117.93 1 $10,857.24 $ 10,857.24 1 $ 7,121.50 $ 7,121.50 1 $26,393.11 $ 26,393.11 1 $11,783.68 $ 11,783.68 $ 128,616.95 1 $ 10,942.24 $ 10,942.24 1 $ �,138.31 $ 1,138.31 1 $ 6,323.97 $ 6,323.97 1 $ 4,196.82 $ 4,196.82 1 $ 15,970.90 $ 15,970.90 $ 38,572.24 221.00 $ 174.50 1 $ 8,667.28 1 $ 7,633.46 1 $ 3,679.89 1 $ 2,069.94 1 $ 2,012.44 $ 38,564.50 $ 8,667.28 $ 7,633.46 $ 3,679.89 $ 2,069.94 $ 2,012.44 $ 62,627.51 $ 178,123.69 $ 4,800.00 $ 4,800.00 1 $ 36,584.74 $ 36,584.74 $ 219,508.43 $ 51,693.01 1 $10,338.60 $ 10,338.60 $ 62,031.61 $ 234,616.70 $ 46,923.34 $ 281,540.04 $ 281,540.04 0 � � � N � Attachment number 2 \nPage 1 z Clearwater U Prepared by: Engineering Oepartment Geagraphic Technology Divisian 100 S. Myrtle Ave, Clearwater, FL 33756 Ph:�727)562A750,Fax:�727�526-4755 www. My C I earwater.com Clearwater Pass Bridge Rehabilitation Map Gen By: CRM I Reviewed By: TM I Date: 3/27/2012 I Grid #: 285A I S-T-R: 3-29S-15E N W E i#1 Scale: N.T.S. Attachment number 3 \nPage 1 z Clearwater U Prepared by: Engineering Oepartment Geagraphic Technology Divisian 100 S. Myrtle Ave, Clearwater, FL 33756 Ph:�727)562A750,Fax:�727�526-4755 www. My C I earwater.com Fairwood Ave. Bridge Maintenance Map Gen By: CRM I Reviewed By: TM I Date: 3/27/2012 I Grid #: 2826 I S-T-R: 8-29S-16E N W E i#1 Scale: N.T.S. SEDEEVA ST Attachment number 4 \nPage 1 ' IVA ST ; , . •�__ . � � • -- � . .. . � . . . • .. �: ' h. SEDEEVA CIR j�-' . . .-•, . i-�.; . -"- . ' :-._.._..-- -- . _ _. �_'. . ... , �� •• •� P° ° ' . 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Q o= � � J� `� � � �� w \ Q FAIRMONT ST �� � z Y � w BECKETT ST w � �¢ Z NOKOMIS ST o � � J �Q IROQUOIS ST _ � � �O OSAG E ST � z �-� JMOHAWK ST i t.-�� �� �- +� PACHE TRL i � +14 �' i � ❑ > �� Q —/ ;' � �.�� �,. � � - -' w���'. °�� w , • • � � � � Il �ReRp• - °�. ��:= :r� �I 'i� ~a�q�i M :i � / � .,�`'��:., � � —' � `1��;` �� � — } MA� HALL S�T J� Q' � GRANT ST z z � � GRANT ST 0 r ¢ Q �I `J Q � CARLTON ST � CARLTON ST �- Z z Clearwater U Prepared by: Engineering Oepartment Geagraphic Technology Divisian 100 S. Myrtle Ave, Clearwater, FL 33756 Ph:�727)562A750,Fax:�727�526-4755 www. My C I earwater.com - ::�-�Adf��';BfR. ,i �.ct.�• . •� :I ~ i� . , L��� ,/ ` ; � � _i E ° � _�N �' �� 'R . �� ,,k � � ,� . .., 4 �,�.-� i g'�.,,� �1• t � ; >`i f\ � Overbrook Ave. Bridge Rehabilitation Map Gen By: CRM I Reviewed By: TM I Date: 3/27/2012 I Grid #: 260A I S-T-R: 3-29S-15E N W E i#1 Scale: N.T.S. Work Session Council Chambers — City Hall Meeting Date:4/30/2012 SUBJECT / RECOMMENDATION: Approve the Cooperative Funding Agreement between Southwest Florida Water Management District (SWFWMD) and the City of Clearwater for the gabion projeci on the Jeffords Streei Channel in Stevenson Creek in the amount of $600,000 and auihorize the appropriate officials to execute same. (consent) SUMMARY: This project will stabilize the banks and channel bottom of a portion of Stevenson Creek, which will protect from erosion, provide an unobstructed flow area and protect structures adjacent to the bank. The Cooperative Funding Agreement between the Southwest Florida Water Management District (SWFWMD) and the City of Clearwater for the gabion project on the Jeffords Street Channel in Stevenson Creek includes SWFWMD providing a maximum of $600,000 and a City match of $600,000. The construction documents for this project are being prepared by City staff and the Project will come back to Council for a bid to be awarded to a contractor for construction. Midyear amendments will establish a Capital Improvement Program (CIP) project 0315-96181, Jeffords St�eet Channel, with $600,000 of budget, only, of Other Governmental Revenue and a transfer of $600,000 from 0315-96169, Stevenson Creek, for total funding the amount of $1,200,000. Type: Current Year Budget?: Budget Adjustment Comments: See summary Current Year Cost: Not to Exceed: For Fiscal Year: Other No Budget Adjustment: to Annual Operating Cost: Total Cost: Yes Review Approval: 1) Office of Management and Budget 2) Lega13) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo Item # 11 AGREEM€NT NU. C�C7PERATII/E (�UNDING A�GREE�v1ENT BETW��f� THE SOUTHWEST FL�4RIDA WATER MANAGEMENT D[STRICT AND CITY OF CLEARWATER �a� STORMWATER IMPR01/EMENTS — FLO�D PROTECTION JEF�'QRDS STREET CHANf�EL (N356) THIS CO�PERATIVE FLINDING AGREEMENT is made and entered into by and between the SOIJTHW�S7 FLQRIDA WATER MANAG'EMENT DIST'RICT, a public corporation of th� State of Florida„ whose address is 2379 Broad Street, Brooksville, Fiorida 34604-6899� her�inafter referred to as the "DISTRICT," �nd the GITY flF CLEARWATER, a municipa� corporation ofi the State of Florida, whose address is 112 Qsceola Avenue South, Clearwate� Florida 33756, hereiraafter referred to as the "CITY." W ITIVESSETH: WHEREAS, the CITY proposed a project to the DISTRICT for fun�ing cansideration Under the CIiSTRICT'S coop�rative funding progra�n; and WE�EREAS, the project cansists of impfementatian of Best Managem�nt Practices, including design, permitting arad construGtion, +rvithin the City of Clearwater watershed be�ween Jeffards Str��t and Lotus Path, hereinafter referred to as the "PROJECT"`, and WI�EREA�, the DISTRIGT cons�ders the PRQJECT worthwhile and desires fo assist the CITY in funding ihe PROJECT. �IC3W THEREFORE, fhe DISTRICT and tn� CIiY, in cansideration of �he m�atual terms, cnvenants and conditions set forkh h�rein, agree as follows: PROJECT MANAG�R AND NOTICES. Each party hereby designates the emp�oyee set forth below as its respective Project Mana�er. Praject Managers will assist with PROJECT coardinat�on and will be each party's prime contact persor�. Nofices and reports wili be sent to the atter�t�on of each p�rty's Project Manager by U.S. mail, postage paid, �y nati�nally rec�gnized overnight cour6er, or personally ta the parties' addresses as set forth in the flrt�troc�uctory paragraph of this Agreement. Natice is effective upon receipi. Project Manager for t�e DISTRICT: Gearge Fries, P.E. Project Manage� for the �ITY: Ken Sides, P.E. Any changes to the abo�e representatives ar addresses must be pro�vided ta the other party in writing. P�ge 1 af 9 1.1 The DISTRICT"S Project Manager is hereby autharized to approve requests ta �xtend a PaOJECT task de�d[ine set forth in this Agreerment. Such appraval must be in writi�g, explain the reason far the extension and be signed by the Project Mar�a�er �md his or her Department Directc�r, or Deputy Executi�� Directar ifi the Departmert� Director is the Project Manager. The DISTRICT'S Project IVlanager �s not author�zed to approve a�y time extension which will r�sult in an increased cost to the DISTRICT or wt�ich wi[I exceed the �x�iration date set forth in Para�raph 7, Contract Period. 1.2 The QISTRICT"S Praject Manager is aufhorized to adjust a line item amount of the Project Budget contained in the Prc�ject Plan s�t for�h in Exhibit "B" or, if applicable, the refined budget as set farth in Subparagraph 3.2 below. The authoriza�ion m�st k�e in writing, explain t�e r�ason for the adjustment, and be signec� by the Project Manager, his ar her Department !Director and Deputy Executiv�e ❑irector. Th� QISTRICT"S Project Manager is not authorized to make changes to the Scope Work and is not auti�arized to apprave any increase in the amounts set f�r�h in th� fundir�g sectior� ofi this Agreement. � 2. SCQPE OF UVORK. Upon receipt of written notice to proceed fram the ��iSTRICT, the CITY wi11 perform the services necessary to complete the PROJECT in accordance wikh the Spe�ial Project Terms and Conditions set forth in Exhibit "A° and the CITY'S Praject Plan set farth in Exhibit "B." Any changes to. this Scope of Work and associa�ed cost�, excepi as provided herein, must be m�rtually agreed to in a formal written amendment approved by the DIS�RICT and �he C!1TY prior to beinc� performed by the CITY, subject to the provisions af Paragraph 3, Fuu�ding. The CITY w�ll b� solely respartsible for managing the PROJECT, including t�e hiring and sraperv�sing af any consultants or cantractors it engages in arder to campl�te the PROJ�CT. The parties agree that �ime is af the �ssence �n the performance of each o�ligation under this Agreement. 3. FUNQiNG. Th� parties anticipate that the tatal cost c�f the PR�.lEGT will be One Million Twa Hundred Thausand Dollars ($1,200,000}. The DISTRICT agrees ta �und PRCJJECT costs up to 5ix Hundred T`housa�d Dollars ($6Q0,000} and wil� have no obligation to pay any eosts beyo�d this maximum amount. The CITY agrees to pravid� all remaining funds n�cessary for fhe satisfactary campletion of the PROJECT. The CITY wil! be the lead party ta this Agreemer�t and pay PROJECT co�ts prior to requestin� reimbursement from t�e DISTRICT. 3.1 Any federal, state, local or grant monies received by the CITY far �his PROJECT will be applied to equally reduce each party'� share of PROJECT costs. �"he CITY wiEl provide the DISTRICT with v+rritten documentatson detailing its a1locatPOn of any such funds a�propriated for this PR�JECT. 9n th� ev�nt the DISTRICT provides funding for the PROJEGT in excess of the �ISTRICT'S share after a9i federal, state, local and grant moni�s have been applied as se# fc,rth herein, CITY will pramptly refund such overpaid am�ounts to the DISTRICT. 3.2 The DISTRICT will reimburse the CITY for the DISTRICT'S share of the PROJECT costs in accardance with the Praject Budget cantained in the Project Plar� set forth Page � of 9 in Exhibit "'B." The CITY may contracf with consu[tant{s), contractor(s) or �oth in acc�rdance with th� Special Project 7erms and Conditions set forth 9n Exhibit °A." Upon writter� DISTRICT approval, the bUdget amounts for the work set farth in such contract(s} will refine the amounts set forth in the Proj�ci Budget and be incarporated herein by reference. The DISTRICT will reimburs� the CITY for 50 percenfi of all alCowabie costs in each DISTRICT approved invoice received firom the CITY, but at no point in time will the DISTF�ICT'S expenditure amount under this Agreement exceed expenditures made by the CITY. Payment will be rr�ade to the CITY uvithin farty-five (45} days ofi receipt of an invoice with ad�quate sup�arting documentation to satisfy auditing purposes. Invoices will be submitted to the DISTRICT every two (2) months electronically at invoices a(�4WaterMat#ers.or�, or at the fc�lfowing address: � Accounts Payable Section � Southwest Florida Water Management District *� Post Of�ice Box 1't 66 � BroaksWille, Flvrida 34605-116� � In addition to sending an origin�l invoice ta #he C71STF�ICT'S �lccounts Payable Section as required above, capies of invoices may alsc� b� s�ubmitted to fhe DISTRICT'S Project Manager in �order to expedit� the review process. �ailure of th� CITY to submit in�oices to the DISTRiCT in the manner provided herein will relieve the DISTRICT of its obligation to pay v+rithin �he a#orementioned timeframe. 3.3 Any traved expenses which may be authorized under this Agre�ment will be paid in accordance with Section 112.061, F.S., as m�y be amended frorr� time ta time. 3.4 The DISTC�ICT wifl not reimburse the CITY for any purpose not specifically identified in P�ragraph 2, Scope af Work. 3.5 Surcharges added to third party in�oices are not considered an a�iawable cost under this Agreement. 3.6 The G+ISTRICT wifl have no o�li�ation and will not reimburs�e the CITY far any costs under this Agreement until construction af the PRaJECT has comrrienced, 3.7 Each GITY in�+oice must include the foliowEng certificatian, ar�d the CITY hereby delegates autho�ity by wirkue of this Agreement tQ i�s Pro�ect Manager to af�irm said certiiication: "I hereby c�rtify that the costs requested far reimbursement and the CITY'S matchin� funds, as r�pre�er�te�l in ihis invoice, are directly r�lated to the performance under the Stormwater fmprovements — Flood Protec#ion Jeffords Street Chanr�el (N356) agreement betwe�en the Southwest �larida Water Management District and the City of Clearwater (Agreement No. ), are a9lQwabl�, allacabfe, proper{y documented, and are in accardance with the approved project budget. The CITY has been a��ocated a total af $_ in federal, state, local or c�rant monies for this PROJECT. $_ has P�ge3of9 been allocated to this invoice, reducing the DISTRIGT'S and CITY`S share to � ,� 3.8 The DISTRICT'S performance and payment p�rsuant to this Agreernent are contingenf �apon the DIST�ICT'S Governing Baard appropriating fumds in its approved budge� for the P'ROJECT in each Fiscal Year of this Agreemeni. The CITY recc�gnizes that the DISTRICT has approved $�25,000 for the PRQJECT through Fiscal Year 2�12. 4. GQMPLETIO�I DATES, The CITY wil�l commence the PROJECT by April 1, 2f}'!2, will complete the PROJECT by Septemb�r 30, 2(}14 and wi�! otherwise meet the rnilestor�es established in this Agreement, as may be extended by the DISTRICT in accordance with Paragraph 1 a� this Agreement. In tl�e even� of hurricanes, tornados, floods, acts of God, acts of war, or other such catastrophes, or ather r�°ian-made em�rgencies such a� labor strikes ar riots, which are beyond the confral of the CITY, the CITY'S obli�ations � meet fhe time f�rarnes provided on this Agreement will be suspended for the period time the condition continues ta exist. During such suspen�sion, this Agreem€;nt wi�t remain in e�Fect. The suspensior� of tl�e GITY'S abligations pra�ided for ic� this proWision will be the CITY'S sol� remedy for the delays set for�h herein� 5. FAILURE TO COMPLETE PROJECT. The CITY will r�pay the DISTRICT all funds the DISTRIGT paid to the CITY under this Agreement, if: a) the CITY fails to cornplete t�e PROJECT in accorc�ance with Paragraph 4 of this Agreement; b} the aI�TRICT determines, in its sole discretian and judgment, that the CITY has failed to maintain scheduled pragress of the PROJEGT thereby endanger�ng the timely perforrnance af this Agreement; or c) the CITY fails to apprapriate sufficient funds to complete the PROJEGT. The CITX will f�e obligatec� to pay attorneys' fees and costs incurr�d by the DISTRIGT, including appeals, as a result of CITY'S failure to repay the DISTRICT in accordance with this Paragraph. 6. OPERATION AND MAINTENANCE. After construcfion is completed, the CITY will flperate and rnaintain the PR�.l�ECT for a minimum af twe�ty {20} years, in s�ch a manner that the resource benefits as described in the Project Plan are achieved. In the event the PROJECT �s nat operated and maintained in accordar�ce with these requirements, the C�TY will pay to the DISTRICT an early termination fee. The fee wi11 be five percent (5%) of total �ISTRICT monies cantributed to the PROJECT far each year or a firact�on thereaf for early termination of the PRQJECT. The CITY will be obligated to pay attorneys' fees and costs incurred by the DISTR�CT, incBuding appeals, �s a r�sult of CITY'S failure to repay the I�ISTRICT in accordance with this Paragraph. The rights and remedies in this provision are in addiiion to any other rights anc� remedies provided by law c�r t�is Agreeme�t. 7. CONTRACT f'ERIOD. This Agreem�nt v►iill be �fifectiv� upon exec�tiar� by the parties and wi{I remain in effect through Decernber 31, 2014, or upon satisfactory compietion of th� PROJECT and su�sequent reimbursement to t�e CITY, whichev�r �ccurs first, unless amended in wriiing by the parties. The CITY will not be eligible for reimk�ursement for any vuork that is eommenc�d, or �cos�s that are incurred, prior to the effective ctate of this Agreement. Page 4 of 9 8. PR�JECT RECORDS AND DOCUMENTS. Each party, upan request, wiil permit the ather party ta examir�e or audit all PROJECT related records and d�euments during ar fQflowing com�letion of the PROJECT, Payments made to GITY under this Agreement will be reduced for amounts fourud to be not allowable under this Agreemen� by an audit. Th� CITY will refund to the DISTRICT all s�ch disallovued p�yments. 6f an audit is �ndertaken by either par#y, all required records will be maintained until the audit has been completed and all questions arisi�g from it are resolved. Each par�y wil� maintain all such recnrds and documenfs for at least three (3) years fvllowing complet�on of the PROJECT, EacY� pa�ty will allow public access to PR�JECT documents and materials made vr receiv�d by either party in accordance with the Public Records Act, Chapter � 19, F.S. Shoufd either party assert ar�y exem�tion to the requirements c�f Ghapter 119, F.S., the burder� of establis�ing such exemption, by way of injunctive ar o#her relief as pro�ided by law, will be upon the asserting party. � � 9. REPaRTS. The CITY will provide the DI�iRICT witl� copies ai any and all repart � mod�ls, studies, maps or ather dacuments resulting fror� the PRD�ECT. �, � 10. LIABILlTY. Each party hereto agrees to defend, indemnify and hald the oth�r harmless, to the extent aRlnwed under Section 7�8.28, F.S., fro� all �laims, loss, damage and expense, including atforneys' fe�s and cos#s and attorneys' fees and costs an appeal, arising from t�e negligent acts or omissions of the indemnifying par�y's afficers, emp9oyees, contractors �nd agents related tc� its perFarmance under this Agreement. The indemnified pariy will haue the right ta approve counsel s�lected f�y the indemnifying par-ty. This provision does not constitute a waiver of either par�y's souereign immunity or extend �ither party's liability beyond the limits estab�ished in Section i68.28, F,S. Additior�ally, this provision wi9{ nat be construed to impose cantractual liability on either �arty for underiying tort claims as described above beyond the limits spec�fied in Section 768.28, F.S. 11. DEFAULT. Either pa�ty may terminate this Agreement upor� the ather party's failure to comply with any term or condition of this Agr�em�nt, including the failure to meet specific milesfanes established in this Agreement, as lar�g as i�e terminating party is not in default of any term or condition of this Agreement at the time of termination. In addition to the above, the DISTRICT may terminate this Agreement if, in its sole discretion and f�rdgment, it de#ermines that the GITY has failed to maintain schedul�d progress of the PROJEGT thereby endangering the timely performance t�f fhe '�RC7JECT. To effect fierminatian, the terminating party wi11 pr�vide the defaul�ing party with a wriften '"bVotice of Termination°" stating its intent to termir�ate an� describing all terms and cond�tians with which the defaulting party has failed to comply. If the defaulting party has not remedied its default within thi�ky (3Q) days after receiving the Notice of Terminatiorn, this Agreement will automatically terminate. If a defaulk cannot reasonably be cured in thirty {30) days, then the thirty {3fl) days may be extended at the non-defaulting party's discrefion, if th� d�faulting �arty is pursuing a cure of the default with reasonable dilige�ce. The rights and remedies in this prouision are in �dditian to any ather rights and remedies provided by law or tf�is Agreement. 12. RELEASE OF IiVFORMATI�N. The parties agree n�t to initiate any oral ar written media interviews or issue press releases on or about �he PR,OJECT withaut providing advance notices or copies to the other party. This pravision v�+ill not be construed as Page 5 of 9 �re�enting fhe parti�s fram complying rrvith the public records disclasure laws set forth in Ch�pter 119, F.S. �3. DISTRICT RECOGNITION. The CITY will recognize DISTRfCT func�ing in any repo�ts, models, studies, maps or other d�cuments resulting fr�om this Agreemer�t, and the form of said recognition will be subject to DISTRICT approval. If construction is inv�oiwed, fhe CITY will �ravide signage at fhe PRC7JECT site that recognizes funding for thEs PROJEGT prav�`rded by the QISTRICT. All signage musfi meet with �ISTRICT written approvai as to form, content and focation, and must be ir� aeeordance with local sEgn ordinances. �4. PERMITS AND REAL PROPERTY Rf�GHTS. The GITY must obtain a!I permits, lacal government appra�als and all real praperty rights necessary to complete the PROJE�T prior to commencing any construction inwc�lveci in the PRC3JECT. The DISTRICT wi�F have no obligation to reimburse the CITY for any costs under this Agreement u�til th� CITY has obtained such permits and praperky rights necessary �v undertak� th PROJECT. � '15. LAW +COMPLIANCE. Each party will eomply with all applicable federal, state and local laws, rules, regulations and g�idelines, including #hc�s� of the DISTRICT, r�lated to performance u�der this Agreerr�ent. If the PROJECT in�ofves design services, the CITY'S professianal designers and the DISTRICT'S regulation and prajects staff will meet regularly during the PRC3JECT design to discuss ways af ensuring that the fi�al design for the proposed PROJECI° technically complies with a!I applicable DISTRICT rules and regulations, however, the QISTRICT undertakes no duty to ensure compliance with such r�les and r�gulations. 16. DIVERSITY IN Cq�1TRACTING AND SUBCO�JTRACTiN!G. The DIST�RICT is committed ta supplier diversity in th� perfflrmanc� c�� all cantracts associated with DISTRIGT coopera��ve funding �rojects. The DISTRIC`C requires the GITY to make good faith effor�s to encourage the participation af minority awned and woman owned and small business enterprises, bath as prim�; contrac�ors and subcontra�tars, in the perFormance of �his Agreement, in accordance with applicabfe [aws. 16.1 If requested, the DISTRICT will assist the CITY by sharing information to help the coa�aeraior in ensuring that minority owr�e�1 and woman owned and small businesses are afford�d an opportunity to participate in the perFarmance of this Agreement. 1fi.2 The �IT�' agrees to provid� the DISTRiCT with a repart indicating all car�tractors and subcontraetors wha perfarmed vvork in associatia� with the �ROJ�CT, th� amount spent with each car�fractar ar subcont�-�ctar, and to the extent such information is knawn, whether each contractc�r ar subcontractar was a minority owned or worx�an awned or small business enterprise. If na� minority owned or woman awned or small business enterprises were Usee( in the performa�nce of this Agreement, th�n the repart shall so indicate. The MinoritylWome� Owned and Small Business Utilization Report form is attached as Exhibit "C." The repor� is required �pon final com�letion af the PRC�JECT priar �o final payment, or within thirty (30) days of the execution 4f any amendment that increases PROJECT Page 6 of 9 funding, for informatian up ta the date of the amendment and prior ta the disbursement of any additional f�ands by the QISTRICT. 17. ASSIGNMENT. Ex�cepf as otherwise provided in this Agreement, no pa�ty may assign any of i�s rights or delegate any of its obliga�ions under this A,greemen�, including any flperation or maintenance duties related to the PRC}JEGT, without the priar written consent of the other party. Any attempted assignment in vialation of this provision is �oid. 18. SUBCQ�ITRACT��S. Nathing in this Agreement will be cQnstruecf to create, or be impli�d ta create, any relationshi� between the DISTRICT and any subcantractor of the CITY. 19. THIRD PARTY BENEFIGIARIES. Nathing in this Agreecnent wi[I be constrUed tfl benef� any person ar entity not a party to this Agreement. *� E a� 20. LOBBYING PROHIBITIDN. Purs�ant to Section 216.347, F.S,, th� CITY is h�r��y prohibited from �using funds provid�d by this Agreemen� for the purpose of lob�ying the Legis[ature, the ��udicial branch ar a state agency. 21. PUBLIC ENTITY CRIMES. Pursuant to Subsections 287.133(2) and (3}, F.S., a person or affiliate whQ has beer� placed on the convicted vendar list fallowing a convic�ion far a public entity crime may not submit a b�d, propasal, or reply ort a contract to provide any goods or ser�ices t� a public entity; may not submit a bid, proposal, or reply on a cantract with a public entity for the construction or repair of a public buulding or public work; may not submit bids, proposals, or replies an leases of real proper�y to a public enti�y; may not be awarded ar perform work as a contractor, supplier, subcontractor, or cansulfant under a contracf with any �ublic entity; and may not transa�ct b�siness v+rith any pub{ic entity in excess of the threshnld amount pravided in Section 28i.017, F.S., for Category Tw€�, far a period af 36 manths following the date of being placed on the convicted vendor list. The CITY agrees to include this pravision in all �ubcontracts �ssued as a result af this Agreement. 22. DISGRIMINA,TI��I, Pursuant to Subsection 287.134(�}{a), F.S., an entity or affiliate wha has beer� plac�d on the discriminatory vendor list rr�ay nat s�br►-�it a bid, proposal, or reply an a cor�tract to provide any goods or services to a public entity; may not submit a bid, proposal, or reply on a cantract with a public entity for the constructian or repair of a public building or public wark; may not submit bids, praposals, or replies on �eases o� rea! praperty to a public entity; may r�ot be awarded or perfcarm work as a c�r�tractor, suppli�r, subcontractor, or consulfant under a contract with any public entity� and may not transact b�siness with any pubfic entity. The CITY �grees to include this provisian in all subcontracts issued as a result o� this Agreement. 23, GOVER�111�G LAW. All aspects of this Agreement are go�erned by Flrarida faw and �enue will be in Hernanda County, Florida. 24. SURVIVAL. The provisions of this Agreement that require perfarmanc� after the expiration or termination of this Agr�ement will remain in force notw�thstar�ding the Page 7 of 9 expiration or termination of this Agreement including S�u�paragraph 3.1 and Paragraphs �, �, and 10. 25. ENTIRE AGREEMENT. This Agreement and the attached exhibits listed below constifufe the entire agreemerrt between the parties and, u�nless othenrvise provided herein, may be amendecf on[y in writing, signecf 3�y all parties to this Agreement. 26. D4CUMENTS. The following documents are atta�hed and mad� a part �f this Agreement. In the event of a coruflict of cantract terminoCogy, priority will first be given to the language in the body of this Agre�ment, t�en to Exhibit "A," then to Exhibi� "B," and tnen to Exhibit "C." Exhibit'"A" Special Project T�rms and Conditions � Exhibit '°B" CITY'S Project Plan � Exhibit "'C' Minori�ylWomen Owned and Small Business Utilization Report Farm *� E a� � The remainder of th�s page infentionally Ceft bla�k. Page 8 of 9 IN WITNESS WHERE�}F, the parties hereta, or their lawful representatives, have executed this Agreement on the day and year set farth next to the�r signatures belaw. SOUTHW�ST FLQRI�A WATER MA�JAGEMENT DISTRICT By: Executive Direc#or Date CfTY OF CLEARWATER : = Frank V. Hibbard, Mayor William B. Horne, City �VVianager Approved as to form: Leslie K. Qc�ugalk-Sides Ass�stant City Attorney Date Date Attest Rosemarie Call Ci#y Clerk COOPERATIVE FUNDING AGREEMENT SETWEEN THE SQUTNWEST FLORf�A INATER iNANAGEM�NT DISTRICT AND CITY OF CLEARWATER FOR STQRMWATER IMPftOV�MEEVTS — FLQOD PRC?TEC71ClN JEFF�RDS STREES CHANNEL (N356) Page 9 of 9 !�]S'T2EC'C APPROVAL I;VI"I IALS I3Ai� L�GAL � a�rL RISK MGIVIT }1 R CONTRACTS ��2 l� �: .i- i ��-- ll£P"f DIKECI'OEt �!%?,f s � 1]EPilTY EXFG D]R �� - ti GOVER%fIAI(i BOARD �� ,;,: �'. . � � � E a� � AGREEMEN� �JO. EXH'IBfT "A" SPECIAL PROJEGT TEaMS AND CONDITIQ�JS 1. C4NTRACTfNG WITH GQNSULTAN� AN� CC3NTRACTOF2. The CITY may engage the services of a cansultant(s), hereinafter referred ta as the "CONSULTANT," and a contr�ctor(s), hereinafter refierred ta as the "CONTRACTOR," to perform the services in accordance with the CITY'S �'raje�t Plan previously submitted to the DISTRICT and attached as Exhibit "B." The CITY will b� responsible for administering the contracts with tF�e CONSULTAfJT and CON�°RACYOF�. 2. APPROVAL �F CONSTRUCTION BID DOCUMEfJTS. The CITY must obtain fih� DISTRfCT'S written approval of all construction bid dacuments prior to bein advertised or Qthervvise solicited. �he DESTRICT wi06 not unreasonably withhald it� approval. The DISTRfCT'S approval of the cQnstruction bid documents da�s nc� cor�stitute a r�presentatian or warranty that the DISTRICT has uerified the architectur�l, eng�raeering, rnechanical, electrical, flr other compor�ents of the construction �o�uments, or that such docUments are in compliance with UISTRICT rules and regulat�ons ar any aiher applicable ruEes, regulatians, or laws. The DISTRICT'S a�prc�val will not constit�te a waiver of the CITY'S obl�gation to assure that the design profes�ior�al perForms according to the standards of hi� or her prafession. The CITY will require the design professional to warrant that the construction docum�nts are adequate for bidding �nd �onstrue�ion af the PROJECT. 3. DISTRICT PARTICIPATI�N lN SELECTING CQN�ULTANT ANQ REVIEW OF CITY'S SELECTION OF CONTRACTOR. As applica�le, upon notifying the CITY'S Project Manager, the DISTRICT will have the option of participating as an evaluator in the CITY'S process for �e�eeting the CONSULTANT. The CITY will provide th� DISTRICT with a tabulation �f �QNTRACTOR bids and a recommendation to award. The CITY must obtain the DISTRICT"� approval of the sele�ted C�NT�AC��R prior to proceeding with construction of the PRQJECT and the DISTRICT will not r�nreasanably withhold its approval. 4. APPROVAL OF CONTRACTS. The CITY must obtain the DISTRICT'S prit�r written appro�al of any contracts entered i�rto with its CONSULTANTS and C�NTRACT�RS. The DISTF�IGT w�ll not unreasonabEy withhold its appraval. , The �emainder of this page ir�tentianalfy le#t blank. Exhibit "A" Page 1 of 1 AGREEMENT N0. E�HiBET ��B�" PROPOSEQ PROJECT PLAN Praiect Description This PR�JECT is to perform t�e ]mplementation af Best Management Practices (BMPs) element of the District's Watershed Ma�agement Program (WMP) withon the City of Glearwater wat�rshed. irr�pfementation of BMPs includes the following tasks: design, d�velopment of construction docum�nts, construction permitting, land acquisitian, bidding and contractor selection, construction af the BMPs and construction er�gineering and � inspection. The wafersh+ed covers an area o� a�proximately 0,� sq�are mife� �nd is locate� i�r the City of Clearwater in Pinellas Co�anty. The PROJECT will remo�e existing deteriorate� gabic�ns and replace them with coated wire galaions. The rem�o�al Qf the existing deteriorate gabions and replacement with caated wire gabions will reduce erosion in the channel, wi�t improve wat�r quality, decrease flaoding and protect structures adjac�nt to the �hanneL The req�uested fund5 will be used toward desigr�, permitting and construction services �tecessary tQ complete the improvements to the channel between Jeffords Street and Loius Path within th� CITY. Project Ta�ks Key tasks to be perFormed �y the �ITY: 1. Sel�ct and hire a CONSULTANT to eomplete the design, permitting, preparation of cantract documents, and to provide engineering and inspection services during constru ction. 2. Attend one meeting with #he DISTRI�T priar to begi�ning t�he PROJECT to discuss the approach, sch�dule and budget. 3. Bid, sel�;ct, and hire a CONTP�ACTOR to complete the construction in accordance with the appro�ed bid document�. 4. Provide the DISTR9CT with one copy of a summary of the cQnst�u�tion quality assurance data, canstruction record drawings and per�nit related subrnittals. 5. Monitor alf phases af construc�ion by means of sunrey, abservatior�s, and m�terials testing to give reasonable ass�rance that the constructian wark wiil be perFormed in accordance with the approved plar�s and specifications set forth in the DESTRICT approved contracf between the CITX and the C��JTRACTQF�. Proiect Delir►erables The City will provide the D9STRICT with the fo9lowEng: • Specificatior�s and Bidding Dacuments + Constructian Plans • Bid Tabulatiar� • Copy of Nc+fic�-To-Proceed to CONTRACT�R �xhibit "s" Pa�e 1 of 2 � Copy of Gontract with GONS�JLTANT and C�NTRACTOR • Construction Record Drawings • Mi�or�ty Utilizatian Report Proiect E3udqet �r_�.�:� Qesign Construction I�s�ect�on Co�nstruction Total Proiect Schedule TAS K ClTY � 125,OU0 � � o,ao� 465 O[}fl $ 6fl0,OQfl Sel�ct GONSULTANZ Design and Permitting Complete Bidding and CONTRA,CTOR 5election Commence Cortstructian Complete Constructi�n DISTRICT $ 125,QOfl $ 10,000 465 000 $ 60Q,OOfl 1�7G'�r� April 1, 2012 Apri1 1, 2013 June 30, 2Q13 Septemb�r 3�, 2Q13 S�ptember 30, 2014 The remainder �f this page intentionally left blank. Exhibit "B" Page 2 of 2 TOTAL. $ 250,400 � Zo,oao $ 930,aoo � $1,2�fl,a�0 � E a� � 0 Z F— � Lla � W W � � Q U � m 2 W � � � � w � Z � H Q N J � � � � W z CfJ � m J � � � d z Q d W Z � O W � Q � � H �^'� V z � � � � � p� �O L � .� � � — � � L � j '� N •� � M � � � t!� +� �t ❑ L +� � � X cll Q% r � r � � � (� � Cp C ,'� � � 'L3 R � r� � `~ Lf� � � � �oQi L c � Q o '� L O �� � C�[3 O � � � !� C.) L � ,� � � � ,G O N � ".Q � � � � � a�.-� Cl? � �E(� � L y--� � a e O ��U � a ° c -� ,� � � � U > � N � � � L � � � •� � Q � � o •� � O � � � ' C7 v� � � � Q C L � C (] ` � O C � ._ � � � � � Q .� � � LI) p O � � O � � cl) � � � ,� }, c6 � � U � � N O G'y ,� � �O N •� � ,� � � � � � Q z w � � Q � z •--� Z Z � o I � AMERiCAN WOMAN N � �m � � NATIVE AMERICAN � � � w � _ � � ASIANIHAWAIIAN AMERICAN � w W � � Z HISPANIC AMERICAN !JJ � of] z � AFRICAN AMERICAdJ U tI} W 0 � AMERICAN WOMAN � w m �, m NATIVE AMERICAN _ � � o W ASIAN/HAWRI[AN AMERICAN CL' �' C7 � W HISPANIC AMERfGAN � U Q C3 � AFRICAN AMERIC.AN Z � Z � � SAAALL BUSINE55 2 � ,� Q section 2sa.7o3{1) F.s. w � Z lL — � � u� a m � rloN-Mir�oRrrv Z v t7 � � z � fl � � � ¢ O H �� ¢ N � J � — � � � U rI� �� HQ �U O� � � H pz E � @ � z o �O � � p�, Z C� � � � �o 'Q ., U Q � I� � � E N �--� t77 � � C [� N (� z C d � � (� ❑ � � � � � Attachment number 2 \nPage 1 LL Leqend N � Clearwater Jeffords Street �Channel ImprovementArea � W E Channel Improvements � Parcel Boundary Item # 1 Prepared by: Engineering Department Geograph ic Tech nology Divisio n S 100 S. MyrNe Ave, Clearwater, FL 33756 Ph: (727�562-4750, Fan: (727�526-4755 Map Gen By: CD Reviewed By: ES Date: 11/24/2010 Grid #: 296B S-T-R: 15-29-15 Scale: N.T.S. www.MyC learwater.com Countersigned: George N. Cretekos Mayor Approved as to form: Leslie K. Dougall-Sides Assistant City Attorney Attachment number 3 \nPage 1 CITY OF CLEARWATER, FLORIDA : William B. Horne II City Manager Attest: Rosemarie Call City Clerk Item # 11 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Award a new contract (purchase order) to Xylem, Inc. of Apopka, Florida in the amount of $375,000.00 for Flygt Pumps, replacement parts and factory authorized service far the contract period of May 3, 2012 to Apri130, 2014, and authorize the appropriate officials to execute sarr�e. (consent) SUMMARY: Flygt pumps are standardized in the city wastewater facilities for lift stations, submerged internal recycle and backwash pumping applications due to reliability of the pumps and to facilitate operational and maintenance efficiency. Standardization of pumping equipment reduces redesign/retrofit of the piping systems and overall down time, which is critical to maintaining the required 100% regulatory FDEP (Florida Department of Environmental Protection) permit compliance at each facility at all times. Standardization also reduces the required stocking of parts and replacement pumps, and the cost of maintenance operations. Xylem, Inc. (formerly ITT Water and Wastewater, Florida LLC) of Apopka, Florida is the sole source vendor for Flygt pumps, replacement parts and factory authorized service in Florida east of the Apalachicola River. Public Utilities staff has negotiated with Xylem, Inc. to honor the Hillsborough County Public Utilities' BPO discount from the most recent manufacturer's published price list on pumps, parts and labor. Sole source purchase of these pumps, parts and services meet all requirements of Section 2.564 (1)(b) Code of Ordinances. The City's current contract is for $325,000.00, which was approved by Council on November 16, 2010, for the period November 16, 2010 to October 31, 2012. Due to a higher demand for repairs and replacements than originally projected, the current balance of $91,178.87 (with the anticipation of a pending invoice for $45,650.00 for a new Internal Recycle Pump), requires renewal at this time to assure adequate ability to address emergency repairs. The projected contract amount is based on anticipation of pumps and/or pump stations being repaired and refurbishment of stations in-house, due to known upcoming projects aid historic usage rates. Sufficient budget is available in the Water and Sewer Utility Fund, Water Reclamation Facility operating cost center 0421- 01351-550400-535-000-0000 to fund $49,364.69 of th�eiscal Year 2011/2012 cost and is planned in the budget request to be brought forward for Fiscal Year 2012/2013 in the amount of $118,998.32, and in Fiscal Year 2013/2014 the amount of $69,306.71, and in the Maintenance operating cost center 0421-01347-550400-535-000-0000 to fund $28,��0 of the Fiscal Year 2011/2012 cost and is planned in the budget request to be brought forward for Fiscal Year 2012/2013 in the amount of $68,759.59,and in Fiscal Year 2013/2014 the amount of $40,046.79. Type: Operating Expenditure Current Year Budget?: Yes Budget Adjustment Comments: Current Year Cost: Not to Exceed: For Fiscal Year: Appropriation Code 0421-01351-550400-535— $ 77,888.59 FY2012 to FY2014 Amount 49,364.69 Budget Adjustment: Annual Operating Cost: Total Cost: Appropriation Comment FY11/12 None $ 375,000.00 Cover Memo Item # 12 000-0000 0421-01351-550400-535— 000-0000 0421-01351-550400-535— 000-0000 0421-01347-550400-535— 000-0000 0421-01347-550400-535— 000-0000 Bid Required?: Other Bid / Contract: 118,998.32 69,306.71 28,523.90 108,806.38 No Hillsborough County FY12/13 FY13/14 FY11/12 FY12/13 and FY13/14 Bid Number: Sole Bid Exceptions: Source Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Purchasing 5) Clerk 6) Assistant City Manager 7) Clerlc Cover Memo Item # 12 � � L�t's 5ol�re Water April 5, 2012 City Of Clearwater Subject: FLYGT PRODUCTS — SALES & SERVICE Attachment number 1 \nPage 1 XYLEM INC. — FLYGT PRODUCTS 2152 Sprint Blvd. Apopka Florida 32703 Phone: 407-880-2900 • Fax: 407-880-2962 Please be advised the Xylem, Inc. the only authorized vendor for Flygt Products and is the only authorized service repair and warranty organization in the State of Florida; (East of the Apalachicola River). Their staff is properly trained to provide you the best service available. Thank you for your interest in Flygt Products. Do not hesitate to call me if you have any auestions regarding distribution or any other matter. Very truly yours, XYLEM, INC. Join ��ent *Flygt Products include submersible pumps, mixers, valves, M&C products, Syracuse safe hatch access covers and control panels. *Xylem Water Solutions is piggy backing off Hillsborough County's BPO, & City Of Clearwater is entitled to all discounts, terms & conditions as indicated on Hillsborough County's BPO. FLY�i'rT Item # 12 H��.L���F��UC�H ����IT'� � � �ry_ N �!I � <. ����� ��... P��Pt3SAL FfJR: PC�RCHAS� U� .FLY�T PUlV1PS A�1D � �UMP REPLA�EME�T P�RTS PUBLlC UTlL1TtES D�PA�iTMENT 1�11�TER� RES�URC�E D11IlSiON S�lBMITTEi� B�: �TT iIVAT�R & �1�TA�TE 1l1/ATER, Fi.4Rip,�, LLC � N � � � N � P[1�iPDSE: The pur� nf this pro� is fa desarr�e #he r�{uiremenis t� the H�(s�r�tt �aunty Pu�li� U#1C�les €3e�ar�rrrer:t-Vifater Resourcet t?ivi3[�n iar the pi�rchase �f Flygt OE� Aumps xnd i'urs� Repla�ern�ni P�ttfs. 2. kVAtLASti.iTY�EF13t�i31{st���vu�aaiafthis.6o�tai#anisCO1'�tft�itupDr��vaiia6flltyc3ffunCf'x�g.Fulihermcr�, chi�lt�g ihe cor►traai �eriod, ii �rn#ing ta � a8 or part c1f iha aurrd re�l�ng �#his snlicih�t�an b�cotnes smava.i�abEa, itte'Couniy reser��s ihe �t ta Eanni�3ta s�ch cor�act.�' praviding � VeridoC no I�ss ��an �uvaM�-fiar �) Ptourswrrit6en nottce. Ttte Calnty sha�#� the #ii�al�autf�ariiyy as � 4he d�rsnin�tFa� afavaiiabilty �f fuElf�t��, '�:E G�iN3�1 �IEB5 �O i4�1R1b11[56'f#f�d i/�6F �OI 2R� 8U�71'�EC} �OLiG�S (N' S�R��CES�FqVid� �3i1QT Ib t�ie Vend4�'s re�pt of ihe atot�aid �ermis�affon notice. 3 F�I�IiRETS? PEFtFOliMs 1; du�f�� ihe ierm of�is r�ontract; the VendarlContra�ors�rquld ret�se ofa4hetw�e N iad to pet[orm any Df its �hfi�ati�ns under ih� cCtttrBC� �1ie Cour�Ey rBSBrvea the Figh1 ko, , � . � a Ob#ain the goads or s�ces f�om a�c4�er Venda�/Co�ira�er; an�fvr � b. Termirrate #t�e �arftr�� andlor � c. 8usget�d�s�atil� lte�c�r fr3t�t bi�ding an H�isborough Cauniy procuremen#� #rr a peria# ofup #0,24 "= rr�nths arxi7a� d. pursue any �ci afl�other r�fedi�s avalla6�e tn. iha Cc�unty. . 4. �1��4�„�!?, cc�n�v��nrc�• Mi�elsarough Cou�tty reserve� the rig�t to tarminatti #h� corrtract fr► who(a-or � pari, ix�t the con��tie�Ga of ihe Co�rfty. Alonfica�n of tetminakiort -shaA }� proviEied iR �alfifi�g �c�rSifi�i �ly, isst�ed #ry Flrraiicial 5er�r� (�curer��nt). 5. PAY�i' S�H�#tLE: As esfa►�ished by�lo�d� �fat�ia �18..74 {2?. f�1'men# iur ihe �urclt�ge or lease af �aods and s�+�es s!� be mede u� �ty�-Fnrs i45) c�ys �tter ifi1e� d�s a� �ato�r invokse is pr.�sen�d frsr payrnentto t�ie'BL}CC.Accoun%►g i]�pac�net;t, Ciarlc o#t#�e�lrct�k C,�u�t, as�n�t tr� ihe �ard c�Gotkety Commissir,�rs and � Ckdef Dishs�rs�tner�t �r. t# payrt�st fs rin# �e w�ttn €h� �me sp�ed b}r (a�t, +�beres# aVtF' b� paid #¢ �ie venalor trt acc:�dan� wit� F(crida Statute 248 :4 {4�. - . �r. �Ef�fiSION �R�M TFl� S�?�Ci�,'[�Afi#0�19: 7t�g �gparat� 5i#�nce af this s�ecjtic�ion an$ any adderi�um regarding ars�r dda3fs i�r the omiseit�n irarn the s�ficatton of a-de#a1led desc�sp�iorr con�s�g ar�Y p8irrt shaiE �e reg�dad as ir�arti�g thai ¢niy ihe� bast oamrneraial practir� are � preb•a7, a3�d itaat anty �na8et€�ts �nd workmansAip of tt�e fir�t qt�af�Ty are �S be �used. Ali �n'�erpre�3ions of ti�is speclfica�iase stiaH be mad� �pen the b�s#s oi #h�'�r�err��it. 7: �. F Htl. e E�ti �dU � �TIN PRUI3iBl7'�#7:7he�r;ttcr�hafl En r�a►�ray uss ariy statements, wttethar wr�Eten or a�a�, c�ade by the C�4y's emplay�s ta mar;ce#. se!!, p�o4e or highfrgi�E the vandae andior tFre vpndars produ�E(s) andtor ac�vioe(s) unlsss aut�iorized ta r�sa, in v�itfng. bY the Co�nty Admf�is#ratof +�t hislhar d��. in.adci�orX. ttte vendo€ st3a�! nat use suE�cfiv� vr pe�ixeci int�ii�ire#atiort�,.escen-if iactual, �e�arr#freg the County's apinian �f #F�: venda�'s C,zfiarnaara�. d,i�oduct(s) andlor sarvte�(s), in �ny ci��er►i, ar�ief�, pubfi.raiicrs.or pr�s r�l�se designed tn marF;�#, prorr�fa o� higi�[fg�t t!� ver�or andlot•fhe vendors �nxfu�E(s) encElor s�rvlr.e[s�; This �ic�es n�# prev�ni � v�or irorn i�e�udir�'th� cautl#��c+t114s.c�fent tfsts andFor 1ts�rig af us1�g tr,e cor�,iy a� ��+afeeem:e. TdiMC�N'!3�lCTti�tC� i?iiI)V%S�Qt�FS• e. COt�ETR�4CT �RM: i"�S ixid w�if be� 6� efFecx for a,�i�4�k Yearperfoei �endir�g an i� fastday of �e �raaE manth) ftcm ffie date oi awarcl, or iroan ex8i��on af th9 c�rr�r�t aw�rd, nr approuai oi` pasi-aarard raqe��r�is, �rhich�ver �s fa�ar. b. '�O'�AI. CO�CT AVIi,4RD: �orbudgetary asxi other �asor�s, ihe tot�1 arnount �ar�ard �sr th�s Corr4acE wifl b� e'sfa�sl�ed at S2AO�:��fl.�o, �: E3f+DERf�iG: "I"i�e Coun�y shaf[ � a Bl�nicet Purc#7ase Order (�D) ic� cov� anysupp�s ors�rvites to be ivrn�she� under this Ce�#ract. Th� using de�a�xer�fs w�f t�ien issae Rs�ase Purchasa QF�s (FOs) a�a�nsi t�e B�O a� an �s-neede�t bas�s. The V���ar sha�l deuver QNLI� upon r�csipt oF a R�LEASE P�. 3uGh f}FYlei'S 5�12(� � ISSiiBd an{y dur�ng the Contracf i`erm. f�taSiCE O� AW . By su���tfig t�fs propos�ai� ine Ven�ar declar�s ihey un�ecstend and agree i�i� R+�P�4 &���s, pt+arisions, ter.ma enci �orui'�iorr� �i sar#�s, shatl b�caome a valid con#raci heiween Hii�sborough Cou�i}r and the unds��gned a�on notsEe af aw�rd by ihe iss�ce a` a�urchase Orcfsr by Htllsborcwgh Gc►wraiy. 90. �A� QF i1�1.1'i1�RY� i�ivery of.in s�€ pa�ts & producfs w� � mad� walt3�in 5 s after recei of a �'uEd'+ ea.�rd�: Non-�sin�icec parts � proc[e� that require deC�€ery frorn the. facbry in �den wou[d t� i�{wec� fa f D s aad tuvts�nreeks via ai� ireight. �teigh#sitali be F.fl. B. d�sbna�art � L�e sh�p tuarldress reques#�d by #he order#fag CcwMy depattment The Gonf�actcr sP�� be resparrsible #ar al[� fi+efg�rt charges. 1�3. At? N TRATIV� tNCRE�S� IN AWA#t� ithlT: Y�iiha�t fnvailda#�ng�f�se Rgrzement, th� Caunty th r��b ifs I}Irecfor af Finalnciel Servlc�s, �esenres^�erigfi# tq aE any ffrne ac 1'r� �irri� #a ircna� enier in#o chang� orde!s t`fh� curttufaEiv� tata; ofwhich sfia�l not sxc.�st S25,O�f}.t10�, Fot addf�nw deietions, or revis�s in tise ��ds ar �1 services t� be �ndared under #his Rg�m�T►t. Urtoe tha �25,OOO.i30 cap �� �ached, &p athgr artdltians, � d�tefioms; or re�o�s to lhecontrad shali baat tl�e saie �iscre�on of Fii[ls�orou9h Gourt�', and �ay be su6Jeci � �ta aparoval by the gaarii af �ounty�Cvrn�nis�ianers. In th�e casa c�f �l�ipf�-�errn ccmi�ac�, t�is.provision st►alI � aPP�Y ���Y ,a eacli t� � � i2. C�P'�[dNAE� PRDY(Slfii� FOR t?TliER AGE�iC1E�':. t�nla5s athen�w"sse stipulat�d by #hQ h�dcler, 'the bidder agre�es Fotnake ava�'�hle f�altgo�►e�rttr�nt�get�cies, cf�parimsnts, anc[�u[�ir�pat�ties t�ie bki pfice,s submifted �n accor�artr� v�+ith said #� terrns and cone+'�Ic�rrs ih2refn. 5tivu�[ arnr said gQ�rernrnentat �:r�fity c�sire to buy uni�t tE?is �trrs�sat. i dEPa Pumps and Pt�mp �aits II Shop Eabos €a#� �'ART G PR�?P�S�iL SECT1fJN �re p°�r�t �%> di�r,outtt froan most recerti rran�Fac�urer's� pubifsit� price t�st ffl Pfa�a a#Propasgr. �Tf VU�er &. �icsrida LLC. (TYE�tl �P�ir+te�; �m, Corpara�io�, �usin�s of tnd�iauat} IV Dur ioca7 (to Tart�, Flafida) bus�ess adct� �: 2�s2 � 61vd. FE. 3. 1f Fer�eraE i.�. i�umt�•_.r; �3515895�_ VI Q�r primary� 6c�iness at�dress is: , . _ �amr�ss above , „ .,_�. ,_. ,� Vfl 4ur p��t twsiness phan� nur�ber is {� 88�-2�E#0 � iX 4ur pt'esetYt e-mad �1dre,ss i� --- " -,�E��q°n! ._. ,. ._. ,_.__. At�tPse prassnt �me vw� unQarstand ali requ�emar�f�•arfd sE�t� it+a� as a Pr4pessr +iue w�il crs�piy wi[f3 ail th� st��s�ians �cf�ded in fhs piv#�asat pa�lcage- it�e abvu�arr�es Prq�r a�trrr� anc[ d�ctares: ('�}- ihat i�e Pro�sar ��fi�rvful age a�td � �a.ather persarr, f�m�sr cofparafion has aray interest i� ti'iis i�roposal uf in itie ccxl�fa�t (3ropased tc� bs �rltereti {;�t�. {2} That �is: Rmpasal. ls rttade wiEEi4ut any u�cfersiandlr�q, agr.eemen!. nr ca�ec#ion �+iih ari� o�r p�rsnn, f€rm ar corparsti�n and. �� a�l resp�cts feir a�d �uithout evllusiorr ar 5 aud. f� 'ibaf �s Pr�oser is not in arrec��s tu Ftilfsbofo�rgh.�oun�y upan da�t ar contraet �,-�d Es nat a deiaulter� as su�etyor ath�rwis� e�ot� anY obi��'Gan %Nillaharoc[gh Cot,nty. ��f ) Tiiai no ot3i�r ar empt�yae cx �arson sh�ose s�l�ry is �yabi� !n whq�e p� tn �art from the cdnr�t� T�asury is siraEl be or �rr�e tn#er�s`�ed, d€r��r or i�rdir�cilp, s�;ty ar a#�e�xise in th€� propo�at; th the �rfc�rmance qf fhe Cnr�� in the s�p�lies, materi� ��iRrrtent, and uvork ar [abor to w}�ia�r they re[af� or fn any Fcr#�on of t�a prof[t� t(t�'eaf. PrOposer � �yr: I 0�€ZeCf ralg{]�tUfe - � �rr`_.1 � . _ , / C .�( ic10�# 1 � Pruits� 3dame 4f 3igner �.6�oNAL �t�trar�6�,L -- � i�te trf S;grar �_. P,�apr�vsd sa to eor.n ar�a J.agal e����i�=: �rx ��se�a�Y Sya Asais�ant �puv�y �ttornay � "' fr - zaJ� Date Sig N � � N � Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Approve amendments to the Community Development Code providing density and parking incentives for affordable housing developinents, and pass Ordinance 8313-12 on first reading. (TA2012-01001) SUMMARY: The City's Evaluation and Appraisal Report, which was released in August 2006, indicated a need to create specific policies in the Clea�vater Comprehensive Plan to incentivize affordable housing, specifically calling for density bonuses and parking reductions. In December 2008, the Clearwater City Council approved amendments to the Clear-water Comprehensive Plan that included an objective and policies relating to affardable housing incentives. This proposed amendment to the Community Development Code implements that objective and policies. Proposed Ordinance 8313-12 includes the following anendments: . Clarifies that the densities contained in the Clearwater Comprehensive Plan can be exceeded under the new affordable housing density provisions. . Sets forth the review and approval process for granting the affordable housing density bonus. . Establishes a density bonus and sets forth how it is calculated, differentiating between mixed�ncome affardable housing developments and other affordable housing developments. . Sets forth standards that apply to all affordable housing developments that are granted the density bonus, including compatibility criteria, design criteria and green building criteria. . Sets forth criteria for a required covenant to maintain affordability, which address both owner-occupied units and rental units. . Sets forth the standards for approval for the affordable housing parking incentive, which allows a reduction in required parking spaces provided the criteria are met. . Clarifies that affordable housing developments receiving the density bonus will be reviewed as a Level Two application. . Sets forth definitions for: affordable housing unit; dwelling, affordable housing bonus density; and dwelling, reserved affordable housing. The Community Development Board (CDB) reviewed the proposed amendment at its meeting on April 17, 2012 and unanimously recommended the amendment far approval. Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo Item # 13 Attachment number 1 \nPage 1 ORDINANCE NO. 8313-12 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, MAKING AMENDMENTS TO THE COMMUNITY DEVELOPMENT CODE; BY AMENDING SECTION 3-902 TO CLARIFY EXCEPTIONS FOR GRANTING INCREASED DENSITY; BY AMENDING SECTION 3-920, AFFORDABLE HOUSING PARKING REQUIREMENTS, BY RENAMING THE SECTION TO AFFORDABLE HOUSING INCENTIVES, BY ADDING AN AFFORDABLE HOUSING DENSITY BONUS AND PARKING INCENTIVES AND ASSOCIATED QUALIFYING CRITERIA; BY AMENDING SECTION 4-401 TO ESTABLISH AFFORDABLE HOUSING DEVELOPMENTS AS A LEVEL TWO APPROVAL; AND BY AMENDING ARTICLE 8, DEFINITIONS AND RULES OF CONSTRUCTION, SECTION 8-102, DEFINITIONS, BY ADDING DEFINITIONS FOR AFFORDABLE HOUSING UNIT, DWELLING, AFFORDABLE HOUSING BONUS DENSITY, AND DWELLING, RESERVED AFFORDABLE HOUSING; CERTIFYING CONSISTENCY WITH THE CITY'S COMPREHENSIVE PLAN AND PROPER ADVERTISEMENT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, it is necessary to amend the Community Development Code for consistency with the Comprehensive Plan, and WHEREAS, it is necessary to amend the Community Development Code to implement affordable housing goals, objectives and policies of the Comprehensive Plan, including Objective C.1.9 and Policies C.1.9.1, C.1.9.2 and C.1.9.3, and WHEREAS, it is a goal of the City to provide quality affordable housing to the citizens of Clearwater, and WHEREAS, the City desires to support the affordable housing incentives that are included in the Economic Development and Housing Department's Local Housing Incentives Strategy, Consolidated Planning Document and SHIP Local Housing Assistance Plan (LHAP), and WHEREAS, the City desires to incentivize the construction of mixed-income affordable housing developments, and WHEREAS, it is necessary to amend the Community Development Code for consistency with the Rules of the Countywide Plan, and WHEREAS, the City desires to amend the Community Development Code to enhance its review procedures for level one and level two approvals in an effort to ensure that projects will be consistently well-designed throughout the city, now therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Ordinance No. ��� �213 Attachment number 1 \nPage 2 Section 1. That Article 3, Development Standards, Division 9, General Appiicability Standards, Section 3-902, Comprehensive plan densities/intensities, of the Community Development Code, be, and the same is hereby amended to read as follows: Section 3-902. Comprehensive plan densities/intensities. A. Notwithstanding any provision in Article 2 of this Community Development Code, no application for development approval shall be granted for any development which exceeds the densities and intensities for that development in the comprehensive plan1 except applications for development approvals that include affordable housinq bonus density dwelling units mav be granted pursuant to standards set forth in Section 3-920. Section 2. That Article 3, Development Standards, Division 9, General Applicability Standards, Section 3-920, Affordable housing parking requirements, of the Community Development Code, be, and the same is hereby amended to read as follows: Section 3-920. Affordable housing incentives ^°r'-;^^ r°�.,;r°.,,°^*�. A. Affordable housinq density dwellinq units. 1. City review and approval process. a. Citv approval procedures. Such approval shall be considered a Level Two (flexible development) approval in accordance with the provisions of Article 4 Division 4 of the Community Development Code. The use of the density bonus as provided within this section shal� not be considered a land use plan amendment. b. Pre-application conference required. Prior to submitting an application for development review of a proposal that includes affordable housinq bonus density dwellinq units, the applicant shall meet with the Citv's Economic Development and Housing Department Director for the purpose of determininq that the proposed development meets the definition of "affordable housinq unit" and to discuss affordable housing requirements as required � the City's Economic Development and Housing Department. The required pre-application conference shall occur no more than six (6) months prior to application for development review. The application for development review shall include a letter from the City's Economic Development and Housinq Department verifyinq that the development meets the criteria above. 2. Coastal Storm Area. No affordable housinq bonus density projects mav be located in the Coastal Storm Area. 3. Densitv bonus. a. Mixed-income affordable housinq developments. Mixed-income affordable housing developments contain a maximum of twenty- five (25) percent affordable housinq units, the remainder beinq market-rate housinq units. The percentaqe of bonus units awarded is based on the percentaqe of affordable housinp units provided, as shown in the table below: Item # 13 2 Ordinance No. 8313-12 Attachment number 1 \nPage 3 Percentage Affordable Bonus Densitv Housing Dwelling Units Awarded Provided 15% 25% 25% 50% For example: An applicant has a 1-acre site with a future land use classification of Residential Medium (RM) (15 units per acre). The applicant proposes that twentv-five (25) percent of the units will be affordable housinq, therefore the density bonus awarded to the development will be fifty (50) percent. This example is calculated below: Maximum Base Number of Units 15 Permitted Maximum Number of Units awarded 15 x.50 = 7.5 bv Densitv Bonus Maximum Total Number of Units (1) 15 + 7.5 = 22.5 = 22 Minimum Number of Reserved 22.5 x.25 = 5.6=6 Affordable Housinq Units(2) �1) When the determination of the maximum total number of units allowed in the development results in a fractional dwellinq unit, the number shall be rounded down to the nearest whole number� this is the allowable density of the development. (2) The number of reserved affordable housing units is based on the total number of units to be built on the site, includinq those awarded through the bonus. For the purpose of calculatinq the minimum number of reserved affordable housinq units, when the maximum total number of units calculation results in a fraction, the fiqure shall not be rounded up or down. When the determination of the minimum number of reserved affordable housinq units in the development results in a fractional dwelling unit, any fraction less than one-half unit shall be rounded down to the nearest whole number and any fraction of one-half unit or more shall be rounded up. b. Other affordable housinq developments. Other affordable housinq developments contain more than twenty-five (25) percent affordable housinq units. The percentaqe of bonus units awarded shall be twentv (20) percent. For example: An applicant has a 1-acre site with a future land use classification of Residential Medium (RM) (15 units per acre). The applicant proposes that seventv-five (75) percent of the units will be affordable housing, therefore a twenty (20) percent bonus densitv is awarded. This example is calculated below: Item # 13 Ordinance No. 8313-12 Attachment number 1 \nPage 4 Maximum Base Number of Units 15 Permitted Maximum Number of Units awarded by 15 x.20 = 3 Densitv Bonus (1) Maximum Total Number of Units 15 + 3= 18 (1) When the calculation results in a fraction, the number shall be rounded down to the nearest whole number. c. Standards. In addition to the provisions for attached dwellinqs set forth in Article II, the followinq standards shall be met: � Compatibility criteria. (a.) The project shall be consistent with existing special area plans, if any. (b.) Proportionality and scale of the proposed development shall be consistent with the community character of the immediate vicinity of the parcel proposed for development. (c.) The overall aesthetics of the proposed development shall be compatible with or an improvement to the communitv character as determined by the Community Development Coordinator. (d.) The scale and coveraqe of the proposed development shall be compatible with adjacent properties. If the overall bulk is larger than the surroundinq buildinqs, the bulk mav be reduced with the help of desiqn elements such as step backs and setbacks as illustrated below. Existing Surrounding Buildings Proposed Development Existing Surrounding Buildings Prohibited- In this illustration, a big box building without step backs is not compatible with surroundings. Item # 13 4 Ordinance No. 8313-12 Attachment number 1 \nPage 5 Existing Proposed Development Existing Surrounding Buildings Surrounding Buildings Permitted- In this illustration, step backs ensure neighborhood compatibility and reduce bulkiness. ii.) Desiqn criteria. (a.l The reserved affordable housina dwellina units shall be mixed with, and not clustered together or seqreqated in any way from, market-rate units in the development. (b.) Building materials and finishes of the interior and exterior of the affordable housinq dwellinq units shall be consistent with market-rate units in the development. (c.) The architectural features of the buildings and each of the affordable housinq dwellinq units shall be equivalent to market-rate buildings and units in the development. (d.) All buildinq facades, includinq fenestrations, in a development shall have a unified architectural treatment. (e.) The horizontal plane of a buildinq mav continue uninterrupted for no more than fiftv linear feet (50'). The vertical plane of a building may continue uninterrupted for no more than ten feet (10'). The vertical plane interruptions mav include but are not limited to awnings, arcades, balconies, niches, projections, etc. Prohibited Item # 13 Ordinance No. 8313-12 Attachment number 1 \nPage 6 �---- i ------= r��"-_ �_� 17' I � ----___- i f_ 1 �' � I��I ---- ��� I i` � '1 1� I ' I � 1 ----------- ' 1__ � _.� {f..d� yp� _ -----i ��.. " _ '_. __ '_- I S�J � " -_'______ I, . Permitted (f.� There shall be no more than six (6) units in anv contiquous qroupinq of townhouse or multiplex units. No more than two (2) abutting attached units shall have uniform roof lines or the same setback. Variations in setback of buildinq faces shall be at least three feet (3'). (a.l The minimum size for the affordable housina dwellinq units shall be 400 sq. ft. for efficiency units, 550 sq. ft. for one bedroom units and 750 sq. ft. for two bedroom units. An additional 200 sq. ft. shall be provided for each additional bedroom in units with more than two bedrooms. The number and size of bedrooms for the affordable units shall reflect the same proportion as the market-rate units. For example, if a proiect contains 50% one (1) bedroom units and 50% two (2) bedroom units, then the set aside affordable units shall reflect these percentaqes. The bedroom size(sl of the affordable units shall be the same as the bedroom size(s) of the market-rate units. iii.� Green buildinq criteria. The followinq criteria shall be met for all dwellinq units in the development (where this Code conflicts with provisions in the most recent Florida Buildinq Code, the more stringent regulation shall apply): (a.) At least fifty (50) percent of required plant materials shall be those which are native to Central Florida, considered Florida-friendly plant materials, requirinq minimal amounts of water, fertilizers and pesticides, and which are recommended in the Plant Guide of the Southwest Florida Water Management District. (b.) Water conservinq plumbinq fixtures with the followinq maximums shall be installed: 1.6 qallons per flush (gpf) toilets, 2.0 gallons per minute (gpm) showerheads and 1.0 qallons per minute (qpm) faucet aerators. (c.) If appliances are provided, thev shall be ENERGY STAR labeled appliances if available. Item # 13 Ordinance No. 8313-12 Attachment number 1 \nPage 7 (d.) Compact fluorescent (CFL) bulbs or light emitting diode (LED) bulbs for all ambient (household) liqhtinq shall be installed. (e.) Roofing requirements: (i.) Roofing materials shall have a Solar Reflectance Index (SRI) equal to or qreater than 78 for low-sloped roofs (<_2:12) or 29 for steep-sloped roofs (>2.12) for a minimum of seventv-five (75) percent of the roof surFace; or (ii.) Vegetated roofs shall cover a minimum of fiftv (50) percent of the total proiect roof area. Anv combination of SRI comaliant and vegetated roof may be used, provided thev collectively cover seventy-five (75) percent of the total development roof area. 4. Required covenants to maintain affordabilitv. a. Owner-occupied units. i.l Covenant. Prior to obtainina a buildina aermit. the applicant shall deliver to the Community Development Coordinator a restrictive covenant, duly executed by the owner of the parcel(s), in a form approved by the City Attorney, that shall address income restrictions, homebuyer or tenant qualifications, long-term affordability, and any other a_pplicable restrictions and qualifications pertaininq to the development and the reserved affordable housing units. The covenant shall be recorded in the Public Records of Pinellas Countv, Florida before it is delivered to the Communitv Development Coordinator. This covenant shall run with the land and shall be binding on the assiqns, heirs and successors of the applicant. Reserved affordable housing units that are provided under this section shall remain as affordable housing for a minimum of twentv (20) years from the date of initial owner occupancy for ownership affordable housing units. ii.) Sale or lease. No lease or sale shall be executed for anv reserved affordable housinq unit that is owner-occupied until the property owner(s) has submitted the required documentation for the household income for the proposed owner or occupant to the Citv's Economic Development and Housing Department for verification that it meets the applicable affordable housinq requirements. Rental units. i.) Covenant. Prior to obtaining a buildinq permit, the applicant shall deliver to the Community Development Coordinator a restrictive covenant, duly executed by the owner of the parcel(s), in a Item # 13 Ordinance No. 8313-12 Attachment number 1 \nPage 8 form approved bv the City Attornev, that shall address income restrictions, homebuver or tenant gualifications, lonq-term affordability, and any other applicable restrictions and qualifications pertaining to the development and the reserved affordable housinq units. The covenant shall be recorded in the Pubiic Records of Pinellas County, Florida before it is delivered to the Communitv Development Coordinator. This covenant shall run with the land and shall be bindinq on the assiqns, heirs and successors of the applicant. Reserved affordable housinq units that are provided under this section shall remain as affordable housinq for a minimum of thirty (30�years from the date of initial occupancv for renta� affordable housinq units. ii.) Annual reports. Prior to June 1St of each year, the property owner(s) or authorized property manaqer of any reserved rental affordable housing dwelling unit shall submit to the Citv's Economic Development and Housinq Department Director an annual report for the preceding calendar year, in a format as approved bv the City, in order for the City to verifv that the tenants meet the income requirements for the reserved rental affordable housing dwelling units and that other stipulations in the covenant are beinq met. B. Affordable housing parking incentive. T"-�rr�i�-i�� eOff-street parking rpai�r��,�4 fnr �ffnrrl�hlo hni icirirr i ini4c���T�����'��i��I�r��a�� .�.� � �,.,,,,,,,,,,,. no.,��,,.,.,,or+ �.,,� u,,,,�,,,n flnr»rFmnn4 may be reduced to one and one half (1.5� parking spaces, or less per unit, �^ °^„ �^^�^^ ���+.,,.+ ��ihoro ro�„�on+,�� „�o� �ro nor,,,;++o,� provided the site with affordable housing units is located within 1,000 feet of a transit stop and subiect to the followinq: 1. The parking requirement may be reduced to between one and one half (1.5) and one (1) space per unit if the affordable housing units are desiqnated for senior citizens or disabled persons. 2. In the case of attached dwellinqs, if parkinq is proposed next to the buildinq, a buffer that includes a four (4) foot sidewalk and a five (5) foot landscaped area shall be provided between the buildinq and parkinq as illustrated below. Building Landscaped� � Area Sidewalk Item # 13 Ordinance No. 8313-12 Attachment number 1 \nPage 9 Section 3. That Article 4, Development Review and Other Procedures, Division 4, Permitted Uses: Level Two, Section 4-401, Purpose and applicability, of the Community Development Code, be, and the same is hereby amended to read as follows: This division establishes the approval required to commence development of a use in a zoning district which is identified in that district as requiring a Level Two approval and affordable housinq developments pursuant to Section 3-920. Section 4. That Article 8, Definitions and Rules of Construction, Section 8-102, Definitions, of the Community Development Code, be, and the same is hereby amended to read as follows: ****� Affordable housina unit means anv residential dwelli owned bv a household with a household income of one hundred unit leased or rcent (120%) or less of the adjusted area median family income for Pinellas County, Florida, as determined bv the U.S. Department of Housing and Urban Development (HUD). The rental rates for leased Workforce Affordable Housinq Units, as defined in Charter Section 2.01(d)(5)(i), shall not exceed the rates published bv the Florida Housinq Finance Corporation for annual "Maximum Rents bv Number of Bedroom Unit" for the Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area (MSA). For non-rental units, the sales price mav not exceed ninetv percent (90%) of the averaqe area price for the Tampa- St. Petersburg-Clearwater MSA, as established by the annual revenue procedure which provides issuers of qualified mortqaqe bonds, as defined in Section 143(a) of the internal Revenue Code, and issuers of mortqaqe credit certificates, as defined in Section 25(c) of the Internal Revenue Code, with the nationwide averaqe purchase price for the residences located in the United States. ***** Dwellinp, affordable housinq bonus densitv means the additional dwellinq unit(s) that is%are permitted on a site as an incentive for the construction of affordable housing pursuant to this code. ***** Dwelling, reserved affordable housing means the dwelling unit(s) required to be reserved as affordable housinq in a development as a result of approved affordable housina bonus densitv dwellina units. *********** Section 5. Amendments to the Community Development Code of the City of Clearwater (as originally adopted by Ordinance No. 6348-99 and subsequently amended) are hereby adopted to read as set forth in this Ordinance. Item # 13 9 Ordinance No. 8313-12 Attachment number 1 \nPage 1� Section 6. The City of Clearwater does hereby certify that the amendments contained herein, as well as the provisions of this Ordinance, are consistent with and in conformance with the City's Comprehensive Plan. Section 7. Should any part or provision of this Ordinance be declared by a court of competent jurisdiction to be invalid, the same shall not affect the validity of the Ordinance as a whole, or any part thereof other than the part declared to be invalid. Section 8. Notice of the proposed enactment of this Ordinance has been properly advertised in a newspaper of general circulation in accordance with applicable law. Section 9. This ordinance shall take effect immediately upon adoption. PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED Approved as to form: George N. Cretekos Mayor Attest: Leslie K. Dougall-Sides Rosemarie Call Assistant City Attorney City Clerk Item # 13 10 Ordinance No. 8313-12 CDB Meeting Date; Case Number: Ordinance Number: Agenda Item: REOUEST: Attachment number 2 \nPage 1 April 17, 2012 TA2012-01001 8313-12 F_1 CITY OF CLEARWATER PLANNING & DEVELOPMENT DEPARTMENT STAFF REPORT Amendments to the Community Development Code — Ordinance No. 8313-12 INITIATED BY: The City of Clearwater Planning & Development Department BACKGROUND: In the early and mid 2000s the Florida housing market experienced a significant boom cycle tbat increased housing costs. This particularly impacted affordable housing as land costs became too high in communities without an ample supply of vacant land, such as Clearwater. The City's Evaluation and Appraisal Report, which was released in August 2006, indicated a need to create specific policies in the Clearwater Comprehensive Plan to incentivize affordable housing, speciiically calling for density bonuses and parking reductions. In December 2008 the Clearwater City Council approved amendments to the Cleanvater Comprehensive Plan that included an objective and policies relating to affordable housing incentives. This proposed amendment to the Community Development Code implements that objective andpolicies. ANALYSIS: Modern development practices have led to housing stratification by income. This is an important issue as certain neighborhoods and communities become burdened by a disproportionate share of lower income households. The proposed ordinance includes amendments that establish density bonuses for projects containing affordable housing and criteria for such bonuses and revises the existing parking reduction incentive for affordable housing developments. The proposed ordinance incentivizes mixed-income affordable housing, which are developments that contain a maximum of 25 percent affordable housing, the remainder being market rate units. Under the proposed ardinance, these mixed-income developments will receive a larger density bonus than affordable housing developments that contain more than 25 percent affordable housing units. Proposed Ordinance No. 8313-12 includes the following amendments: 1. Clarifies that the densities contained in the Clear-water Comprehensive Plan can be exceeded under the new affordable housing density provisions (see page 2 of the proposed ordinance). Community Development Board— April 17, 2012 �te171 # � 3 TA2012-01001 — Page 1 Attachment number 2 \nPage 2 2. Sets forth the review and approval process for granting the affordable housing density bonus (see page 2 of the proposed ordinance). Approval will be a Level Two approval process, which means granting of the density bonus requires a hearing before the Community Development Board. Priar to submitting an application for development that requests the density bonus the applicant must meet with the Director of the City's Economic Development and Housing Department to ensure the proposal meets the requisite definitions and thresholds. This early communication will benefit both the applicant and the City. 3. Establishes a density bonus and sets forth how it is calculated, differentiating between mixed-income affordable housing developments and other affordable housing developments (see pages 2-4 of proposed ordinance). Mixed-income affordable housing developments will be awarded a 25 percent density bonus if 15 percent of the dwelling units are reserved as affordable and a 50 percent density bonus if up to 25 percent of the dwelling units are affordable. Other affardable housing developments that contain more than 25 percent affardable housing units will be awarded a 20 percent density bonus, provided they meet the criteria of the section. 4. Sets forth standards that apply to all affordable housing developments that are granted the density bonus, including compatibility criteria, design criteria and green building criteria (see pages 4-7 of proposed ordinance). The compatibility criteria ensure developments are not out of character with the surrounding neighborhood. For example, the proportionality and scale of buildings have to be consistent with those in the immediate area. The design criteria ensure a higher aesthetic level is achieved. For example, the number of contiguous townhouse or multiplex units is limited and vertical plane interruptions (e.g., awnings, balconies) every ten feet are required. The green building criteria ensure units remain affordable over time by reducing utility costs. 5. Sets forth criteria for the required covenant to maintain affordability, which address both owner-occupied units and rental units (see pages 7-8 of proposed ordinance). 6. Sets forth the standards for approval for the affordable housing parking incentive, which allows a reduction in required parking spaces provided the criteria are met (see page 8 of proposed ordinance). Required parking may be reduced if the site is located within 1,000 feet of a transit stop and if the affordable housing units are designated for senior citizens or disabled persons. Senior citizens and disabled persons have a decreased need for parking spaces, when compared with households that contain families, which typically have multiple eligible auto drivers. Community Development Board— April 17, 2012 �te171 # � 3 TA2012-01001 — Page 2 Attachment number 2 \nPage 3 7. Clarifies that affordable housing developments receiving the density bonus will be reviewed as a Level Two application (see page 9 of proposed ordinance). 8. Sets forth definitions for: affordable housing unit; dwelling, affordable housing bonus density; and dwelling, reserved affordable housing (see page 9 of proposed ordinance). CRITERIA FOR TEXT AMENDMENTS: Community Development Code Section 4-601 sets forth the procedures and criteria for reviewing text amendments. All text amendments must comply with the following. 1. The proposed amendment is consistent with and furthers the goals, policies and objectives of the Comprehensive Plan. A review of the Clearwater Comprehensive Plan identified the following Objectives and Policies which will be furthered by the proposed Code amendments: Objective A.6.9 Decrease energy consumption, use more renewable energy and reduce the impact of the built environment on the natural environment. The green building criteria in the proposed ordinance are designed to decrease energy consumption over the life of the project. Policy C.1.1.5 The City of Clearwater shall continue to provide information, incentives, and technical assistance to the private sector in order to achieve housing production that meets the needs of very low, low, and moderate households. Providing the density bonus incentive and reduced parking incentive will aid the private sector in making affordable housing developments economically feasible. Objective C.1.2 Objective for Affordable Housing - The City of Clearwater shall continue to provide assistance and incentives for the development of housing that is affordable to very low, low, and moderate income households, including those with special needs, consistent with the level of growth in these income categories. Both the density bonus and parking reduction are incentives that the City is offering to affordable housing developments. Policy C.1.2.5 Define Affordable Housing as any residential dwelling unit leased or owned by a household with a household income of one hundred twenty percent (120%) or less of the adjusted area median family incoine for Pinellas County, Florida, as determined by the U.S. Department of Community Development Board— April 17, 2012 �te171 # � 3 TA2012-01001 — Page 3 Attachment number 2 \nPage 4 Housing and Urban Development (HUD). The rental rates for leased Workforce Affordable Housing Units shall not exceed the rates published by the Florida Housing Finance Corporation far annual "Maximum Rents by Number of Bedroom Unit" for the Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area (MSA). For non-rental units, the sales price may not exceed ninety percent (90%) of the average area price for the Tampa- St. Petersburg-Clearwater MSA, as established by the annual revenue procedure which provides issuers of qualiiied mortgage bonds, as defined in Section 143(a) of the internal Revenue Code, and issuers of mortgage credit certiiicates, as defined in Section 25(c) of the Internal Revenue Code, with the nationwide average purchase price for the residences located in the United States. The deiinition for affordable housing unit in the proposed ordinance is consistent with this policy (see page 9 of the proposed ordinance). Objective C.1.9 The City of Clearwater shall be proactive in incentivizing the construction of affordable housing. Providing the density bonus and reduced parking will incentivize the construction of affordable housing, particularly units in mixed-income developments. Policy C.1.9.1 The City will provide density bonuses for affordable housing developments that demonstrate that a minimum of 15% of the total units are reserved as affardable housing units. Such bonuses shall not eXCeed 50% of the density permitted by the Future Land Use Map and shall not include properties located in the Coastal Storm Area. The density bonus shall be established by ordinance in the Community Development Code. The proposed ordinance implements this policy (see pages 2-4 of the proposed ordinance). Policy C.1.9.2 Allow flexibility with regard to setbacks and off-street parking to accommodate density bonuses associated with affordable housing developments provided the project design does not detract from the established or emerging character of the immediate vicinity. The proposed ordinance will provide flexibility to off-street parking, if the criteria are met (see page 8 of the proposed ordinance). Policy C.1.9.3 Allow flexibility with regard to off-street parking for projects containing affordable housing units located within 1000 feet of a transit stop. The proposed ordinance implements this policy (see page 8 of the proposed ardinance). Objective C.1.10 Recognizing that sustainable building techniques contribute to keeping housing units affordable over the long term by reducing energy Community Development Board— April 17, 2012 �te171 # � 3 TA2012-01001 — Page 4 Attachment number 2 \nPage 5 consumption, lowering utility bills and decreasing maintenance costs, the City of Clearwater will promote the use of green housing construction and renovation and rehabilitation techniques. The proposed ordinance contains green building criteria that must be met to receive the density bonus (see pages 6-7 of the proposed ordinance). These criteria reduce energy consumption and ensure that utility costs remain affordable over time. 2. The proposed amendment furthers the purposes of the Community Development Code and other City ordinances and actions designed to implement the Plan. The proposed text amendment will further the purposes of the Community Development Code in that it will be consistent with the following purposes set forth in Section 1-103. It is the purpose of this Development Code to implement the Comprehensive Plan of the city; to promote the health, safety, general welfare and quality of life in the city; to guide the orderly growth and development of the city; to establish rules of procedure for land development approvals; to enhance the character of the city and the preservation of neighborhoods; and to enhance the quality of life of all residents and property owners of the city. (CDC Section 1-103.A). The proposed amendment implements many objectives and policies of the Comprehensive Plan as outlined in the analysis above. It is the purpose of this Community Development Code to create value for the citizens of the City of Clearwater by ensuring that development and redevelopment will not have a negative impact on the value of surrounding properties and wherever practicable promoting development and redevelopment which will enhance the value of surrounding properties (CDC Section 1-103.B.2). It is further the purpose of this Development Code to protect the character and the social and economic stability of all parts of the city through the establishment of reasonable standards which encourage the orderly and beneficial development of land within the city (CDCSection 1-103.E.2). The compatibility criteria, design criteria and preference of mixed-income affordable housing developments aims to ensure high quality affordable housing that is located throughout the City and not concentrated in specific neighborhoods. UU..:_ ._\1 :__ IU_U �I-_ �► The proposed amendments to the Community Development Code are consistent with and will further the goals of the Cleanvater Comprehensive Plan and the purposes of the Community Development Code. Based upon the above, the Planning and Development Department recommends APPROVAL of Ordinance No. 8313-12 that amends the Community Development Code. Community Development Board— April 17, 2012 �te171 # � 3 TA2012-01001 — Page 5 Attachment number 2 \nPage 6 Prepared by Planning and Development Department Staf£ Catherine Lee, Planner III ATTACHMENT: ❑ OrdinanceNo.8313-L2 S: IPlanning DepartrnentlCommunity Development Code12012 Code AmendmentslTA2012-01001 - HousinglStaff'ReportlTA2012-07001 CDB Staff Report.doc Community Development Board— April 17, 2012 �te171 # � 3 TA2012-01001 — Page 6 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Disband the Clearwater Greenprint Steering Committee. (consent) SUMMARY: Meeting Date:4/30/2012 The Steering Committee has completed their work and provided staff with their recommendations on sustainability in Clearwater, which was approved by Resolution 11-5 on December 14, 2011. Review Approval: 1) Clerk Cover Memo Item # 14 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Oppose the relocation of Family Court from downtown Clearwater to the Criminal Justice Center and pass Resolution 12-10. SUMMARY: Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo Item # 15 Attachment number 1 \nPage 1 RESOLUTION NO. 12-10 A RESOLUTION OF THE CITY OF CLEARWATER, FLORIDA, OPPOSING THE PLAN TO RELOCATE FAMILY COURT FROM DOWNTOWN CLEARWATER TO THE CRIMINAL JUSTICE CENTER; PROVIDING AN EFFECTIVE DATE. WHEREAS, many family court attorneys have offices located in and around downtown Clearwater for ease of access to Family Court for their clients; and WHEREAS, relocation of Family Court to the Criminal Justice Center will have a negative economic impact on the downtown Clearwater area, affecting both the tax rolls of the city and the county; and WHEREAS, it is the belief of the City of Clearwater that the Criminal Justice Center does not have the capacity nor the surrounding infrastructure to accommodate the consolidation of the Family Courts located in Clearwater and St. Petersburg; and WHEREAS, Family Court is part of the Civil Court system, which is located at the courthouse in Clearwater; and WHEREAS, it is the belief of the City of Clearwater that family law cases should not be grouped with criminal crimes because of the impact on couples and their children; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The City Council of the City of Clearwater does hereby oppose the relocation of Family Court from downtown Clearwater to the Criminal Justice Center. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this day of , 2012. George N. Cretekos Mayor Approved as to form: Attest: Pamela K. Akin City Attorney Rosemarie Call City Clerk Item # 15 Resolution No.11-12 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Adopt Ordinance 8316-12 on second reading, amendingthe future land use plan element of the Comprehensive Plan of the city to change the land use for certain real property whose post office address is 3043 and 3047 Cleveland Street from Residential Urban (RU) to Institutional (I). SUMMARY: Review Approval: Cover Memo Item # 16 Attachment number 1 \nPage 1 ORDINANCE NO. 8316-12 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, AMENDING THE FUTURE LAND USE PLAN ELEMENT OF THE COMPREHENSIVE PLAN OF THE CITY, TO CHANGE THE LAND USE DESIGNATION FOR CERTAIN REAL PROPERTY LOCATED'/4 MILE SOUTH OF DREW STREET ON WEST SIDE OF MCMULLEN BOOTH ROAD, CONSISTING OF THE EAST 115 FEET OF THE NORTH 142.0 FEET OF THE SOUTH '/z OF THE SOUTHWEST '/4 OF THE NORTHWEST '/4 OF THE NORTHWEST '/4 OF SECTION 16, TOWNSHIP 29 SOUTH, RANGE 16 EAST, PINELLAS COUNTY, FLORIDA, LESS THE SOUTH 32 FEET THEREOF, AND LESS THE NORTH 20 FEET THEREOF AND THE WEST 86.05 FEET OF THE NORTH 110 FEET OF THE SOUTH HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 16, TOWNSHIP 29 SOUTH, RANGE 16 EAST, PUBLIC RECORDS OF PINELLAS COUNTY, FLORIDA. LESS THE NORTH 20 FEET THEREOF CONVEYED TO THE CITY OF CLEARWATER BY WARRANTY DEED RECORDED APRIL10, 1970 IN O.R. BOOK 3308, PAGE 517, PUBLIC RECORDS OF PINELLAS COUNTY, FLORIDA, WHOSE POST OFFICE ADDRESS IS 3043 AND 3047 CLEVELAND STREET; FROM RESIDENTIAL URBAN (RU), TO INSTITUTIONAL (I); PROVIDING AN EFFECTIVE DATE. WHEREAS, the amendment to the future land use plan element of the comprehensive plan of the City as set forth in this ordinance is found to be reasonable, proper and appropriate, and is consistent with the City's comprehensive plan; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The future land use plan element of the comprehensive plan of the City of Clearwater is amended by designating the land use category for the hereinafter described property as follows: Property See Exhibit "A" (LUP2012-01001) Land Use Cateqory From: Residential Urban (RU) To: Institutional (I) The map attached as Exhibit "B" is hereby incorporated by reference. Section 2. The City Council does hereby certify that this ordinance is consistent with the City's comprehensive plan. Item # 16 Ordinance No. 8316-12 Attachment number 1 \nPage 2 Section 3. This ordinance shall take effect immediately upon adoption, subject to the approval of the land use designation by the Pinellas County Board of County Commissioners, and subject to a determination by the State of Florida, as appropriate, of compliance with the applicable requirements of the Local Government Comprehensive Planning and Land Development Regulation Act, pursuant to § 163.3189, Florida Statutes. The Community Development Coordinator is authorized to transmit to the Pinellas County Planning Council an application to amend the Countywide Plan in order to achieve consistency with the Future Land Use Plan Element of the City's Comprehensive Plan as amended by this ordinance. PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED Approved as to form: George N. Cretekos Mayor Attest: Leslie K. Dougall-Sides Rosemarie Call Assistant City Attorney City Clerk Item # 16 Ordinance No. 8316-12 Attachment number 2 \nPage 1 EXHIBIT "A" Legal Description for Properties located generally at 3043 Cleveland Street and 3047 Cleveland Street Parcel I.D. No. 16/29/16/00000/220/1300 The East 115 feet of the North 142.0 feet of the South % of the Southwest % of the Northwest % of the Northwest % of Section 16, Township 29 South, Range 16 East, Pinellas County, Florida, LESS the South 32 feet thereof, and LESS the North 20 feet thereof. Parcel I.D. No. 16/29/16/00000/220/1500 The West 86.05 feet of the North 110 feet of the South half of the Southeast Quarter of the Northwest Quarter of the Northwest Quarter of Section 16. Township 29 South, Range 16 East, Public Records of Pinellas County, Florida, LESS the North 20 feet thereof conveyed to the City of Clearwater by Warranty Deed recorded April 10, 1970 in O.R. Book 3308, Page 517, Public Records of Pinellas County, Florida. Item # 16 � I��1'{ w � 91S M � M h� N RFH '2$ " � F �' 2o M :��� I � 2of � .--s'r -- � zoo Attachment number 3 \nPage 1 .. �.-r, .� '...� •�. RIOL � � � '�' - z z '�•' ' ii7 - • F. •uyy:� . �.. .'n . r�. :,�• ' ' . . � N c6`] M s,�,'.•� G � � � M FI (`] ° ': �_;. � � � OD CT O '� t . `� O � ' � F N �`l fi o q <y M �5 Q . :.�.� � M q "� M . '��� . � ��r� i1 . ,�_� � .�' �f f9 '•.0 7� w�T� . . � , '� Cdk�� �, . o `' � � �:.-; . :-� �,���:: ' -� :•� +r^...�^u^. O O O O p F N M M M M �M " M � . � • � O i23 RLAII � � �' � � �:� �:': � � g}' ,� �, �, �. M .m ;`� ,_� �.� � �, 'm-.t' r;' M F>' zor_ _. _ . : . . .. - - - - Future Lan d Use M ap Owners: �irst Baptist Church of Clearwater, a/k/a Case: Ca�va Ba tist Site: 3043 Cleveland Street & Properfy 3047 Cleveland Street Size(Acres}: LUP2012-01001 REZ2012-01001 0.4 � Land Use Zoning P f N: � 6-29-16-00000-220- i 300 From : R U LMD R i 6-29- ] G-40000-220- i 500 To: I � Atlas Page: 292A EXH3BIT "B" C:IDocuments and Settingslellen.ayolLocal SettingslTemporary Litemet FileslContent.0utlooklS29T[X6V1LUP2012-01001 RE�I� # � 6 OIOD I Future Land Use Map.doc Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Adopt Ordinance 8317-12 on second reading, amendingthe Zoning Atlas of the city by rezoning certain real property whose post office address is 3043 and 3047 Cleveland Street from Low Medium Density Residential (LMDR) to Institutional (I). SUMMARY: Review Approval: Cover Memo Item # 17 Attachment number 1 \nPage 1 ORDINANCE NO. 8317-12 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, AMENDING THE ZONING ATLAS OF THE CITY BY REZONING CERTAIN PROPERTY LOCATED '/4 MILE SOUTH OF DREW STREET ON WEST SIDE OF MCMULLEN BOOTH ROAD, CONSISTING OF THE EAST 115 FEET OF THE NORTH 142.0 FEET OF THE SOUTH '/2 OF THE SOUTHWEST '/4 OF THE NORTHWEST '/4 OF THE NORTHWEST '/4 OF SECTION 16, TOWNSHIP 29 SOUTH, RANGE 16 EAST, PINELLAS COUNTY, FLORIDA, LESS THE SOUTH 32 FEET THEREOF, AND LESS THE NORTH 20 FEET THEREOF AND THE WEST 86.05 FEET OF THE NORTH 110 FEET OF THE SOUTH HA�F OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 16, TOWNSHIP 29 SOUTH, RANGE 16 EAST, PUBLIC RECORDS OF PINELLAS COUNTY, FLORIDA. LESS THE NORTH 20 FEET THEREOF CONVEYED TO THE CITY OF CLEARWATER BY WARRANTY DEED RECORDED APRIL10, 1970 IN O.R. BOOK 3308, PAGE 517, PUBLIC RECORDS OF PINELLAS COUNTY, FLORIDA, WHOSE POST OFFICE ADDRESS IS 3043 AND 3047 CLEVELAND STREET; FROM LOW MEDIUM DENSITY RESIDENTIAL (LMDR) TO INSTITUTIONAL (I) PROVIDING AN EFFECTIVE DATE. WHEREAS, the amendment to the zoning atlas of the City as set forth in this ordinance is found to be reasonable, proper and appropriate, and is consistent with the City's Comprehensive Plan; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The following described property in Clearwater, Florida, is hereby rezoned, and the zoning atlas of the City is amended as follows: Property See Exhibit "A" Zoninq District From: Low Medium Density Residential (LMDR) (REZ2012-01001) To: Institutional (I) The map attached as Exhibit "B" is hereby incorporated by reference. Section 2. The City Engineer is directed to revise the zoning atlas of the City in accordance with the foregoing amendment. Section 3. This ordinance shall take effect immediately upon adoption, subject to the approval of the land use designation set forth in Ordinance 8316-12 by the Pinellas County Board of County Commissioners, and subject to a determination by the State of Florida, as appropriate, of compliance with the applicable requirements of the Local Government Comprehensive Planning and Land Development Regulation Act, pursuant to §163.3189, Florida Statutes. Item # 17 Ordinance No. 8317-12 PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED Approved as to form: George N. Cretekos Mayor Attest: Leslie K. Dougall-Sides Rosemarie Call Assistant City Attorney City Clerk Attachment number 1 \nPage 2 Item # 17 Ordinance No. 8317-12 Attachment number 2 \nPage 1 EXHIBIT "A" Legal Description for Properties located generally at 3043 Cleveland Street and 3047 Cleveland Street Parcel I.D. No. 16/29/16/00000/220/1300 The East 115 feet of the North 142.0 feet of the South % of the Southwest % of the Northwest % of the Northwest % of Section 16, Township 29 South, Range 16 East, Pinellas County, Florida, LESS the South 32 feet thereof, and LESS the North 20 feet thereof. Parcel I.D. No. 16/29/16/00000/220/1500 The West 86.05 feet of the North 110 feet of the South half of the Southeast Quarter of the Northwest Quarter of the Northwest Quarter of Section 16. Township 29 South, Range 16 East, Public Records of Pinellas County, Florida, LESS the North 20 feet thereof conveyed to the City of Clearwater by Warranty Deed recorded April 10, 1970 in O.R. Book 3308, Page 517, Public Records of Pinellas County, Florida. Item # 17 Attachment number 3 \nPage 1 EXHIBIT "B" }� � C;1Docaments and Settings1e11en.ayolLocal SettingslTemporary Internet FileslContent.0utlooklS29TIX6VILUP2012-01001 RE��6'�1- # � 7 01001 Zoning Map.doc Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Discuss allowing golf carts in Clearwater Beach and Island Estates (WSO) SUMMARY: Review Approval: Meeting Date:4/30/2012 Cover Memo Item # 18 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: City Manager Verbal Reports SUMMARY: Review Approval: Meeting Date:4/30/2012 Cover Memo Item # 19 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: End of Session Report - Rep. Hooper SUMMARY: Review Approval: Meeting Date:4/30/2012 Cover Memo Item # 20 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Florida League of Cities Legislative Appreciation Award SUMMARY: Review Approval: Meeting Date:4/30/2012 Cover Memo Item # 21 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Safe Boating Week Proclamation May 19th - 25th SUMMARY: Review Approval: Meeting Date:4/30/2012 Cover Memo Item # 22 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Meeting Date:4/30/2012 Older Americans Month Proclamation - recipient is Beverly Burton, ADRC Director from the Area Agency on Aging SUMMARY: Review Approval: Cover Memo Item # 23 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Youth Sports Awards SUMMARY: Review Approval: Meeting Date:4/30/2012 Cover Memo Item # 24 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: The Mayors Cup Game SUMMARY: Review Approval: Meeting Date:4/30/2012 Cover Memo Item # 25 Work Session Council Chambers — City Hall SUBJECT / RECOMMENDATION: Parks and Recreation Advisory Board Presentation - Ray Shaw SUMMARY: Review Approval: Meeting Date:4/30/2012 Cover Memo Item # 26