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06/18/2012 WORK SESSION MEETING MINUTES CITY OF CLEARWATER June 18, 2012 Present: Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember Jay E. Polglaze. Also Present: William B. Horne II - City Manager, Jill S. Silverboard - Assistant City Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, and Nicole Sprague - Official Records and Legislative Services Coordinator. To provide continuity for research, items are agenda order although not necessarily discussed in that order. The meeting was called to order at 1:00 p.m. at City Hall. 1. Presentations — Given. 1.1 Service Awards Four service awards were presented to city employees. The Council recessed from 9:06 a.m. to 9:20 a.m. to meet as the Pension Trustees. 2. Office of Management and Budget 2.1 Amend the City's fiscal year 2011/12 Operating and Capital Improvement Budgets at midyear and pass Ordinances 8341-12 and 8342-12 on first reading. The fiscal year 2011/12 Operating and Capital Improvement Budgets were adopted in September 2011 by Ordinances 8285-11 and 8286-11. Section 2.521 of the City's Code of Ordinances requires the City Manager to prepare a quarterly report detailing income, expenditure estimates, collections, the explanation of significant variances, as well as the financial status of all capital improvement projects. Budget Director Tina Wilson said the General Fund revenues and expenditure amendments reflect a net increase of$1,524,003. The major reason for the overall Work Session 2012-06-18 1 General Fund expenditure increase is the appropriation of General Fund retained earnings of$1,251,220 at midyear, which includes the $838,000 for the RNC Police Overtime project and $246,000 for the RNC Fire project. The estimated General Fund reserves at midyear are approximately $21.2 million, or 19.4% of the current year's General Fund budget, exceeding council's reserve policy by $11.9 million. Midyear amendments to the Marine Fund reflect a net decrease of$94,290 primarily related to a reduction of$80,000 in Cost of Goods Sold due to lower than expected fuel sales. Midyear budget amendments to the Administrative Services Fund reflect an increase of $105,000, which represents an allocation of Administrative Services Fund to establish and fund the Citywide Camera System project as approved by Council on May 3, 2012. In response to questions, Parks and Recreation Director Kevin Dunbar said the Clearwater for Youth Foundation was awarded $100,000 in grant funding by the National Football League for the North Greenwood Athletic Fields. Staff is coordinating the groundbreaking ceremony with the Tampa Bay Buccaneers. Ms. Wilson said Clearwater is not the only municipality with a franchise and utility tax. 3. Financial Services 3.1 Approve settlement of a liability claim for payment of$75,000 and authorize the appropriate officials to execute same. (consent) On June 12, 2010, the claimant requested to ride along with a Police Department officer via the City's citizen ride-along program. The officer was dispatched to a hit and run on a pedestrian call. A third party vehicle failed to yield at a stop sign. The officer swerved off the road and hit several trees and an apartment building stairway. The cruiser suffered $11,156 in damages. The claimant suffered injuries and underwent medical treatment including surgery. The claimant's medical bills total $194,484.82. The claim can be settled for a payment of$75,000.00 in exchange for a release of all claims against the City and the City's driver. The City's limit of liability as provided by Section 768.28, Florida Statutes is $100,000 per claim or a total of$200,000 for all claims. The City's Risk Management Division and City's Claims Committee recommend approval of this settlement. Funding for the payment of this settlement is available in the budget for claims expense in the Central Insurance Fund. 4. Human Resources 4.1 Amend and restate Division 3 of Article V of Chapter 2 of the Clearwater Code of Work Session 2012-06-18 2 Ordinances; adopting a revised City of Clearwater Employee Pension Plan effective January 1, 2013; provide for a referendum question to appear on the ballot for the November 6, 2012 General Election and Pass Ordinance 8333-12 on first reading. In 2010, the City Council directed staff to explore changes to the current Employee Pension Plan benefits with the goal of reducing the City's cost while maintaining appropriate benefit levels that would continue to provide a viable pension benefit and maintain the City's ability to recruit and retain a quality workforce. Proposed Pension Plan changes were collectively bargained by the City with each of its three Union's; Communications Workers of America, Fraternal Order of Police, and International Association of Firefighters. The agreed upon changes were ratified by each bargaining unit and subsequently approved by City Council in January of 2012, with the expectation of presenting the changes to the citizens of Clearwater through a public referendum as required by the current ordinance. The proposed ordinance restatement would include the following provisions: • All Employees (Hazardous and Non-Hazardous) who are vested in the Plan and separate from employment with the City prior to the effective date of the restated ordinance would be eligible upon retirement to receive the same pension benefits currently in effect. • All current employees (Hazardous and Non-Hazardous) who remain employed and employees who are hired as of or after the effective date of the restated ordinance would be eligible upon retirement to receive a portion of the retirement benefit as a one-time lump sum payment equivalent to 10%, 20% or 30% of the actuarial value of the earned benefit with a corresponding reduction in the monthly benefit thereafter; would be eligible to return to work with the City as a full time employee (other than as a Police Officer or Firefighter) following retirement and to participate in Social Security but not in the Pension Plan; and would be eligible for their beneficiary to be permitted to choose any benefit payment option should the employee pass away prior to retirement. • All other benefits for current employees (Hazardous and Non-Hazardous) who are eligible to retire prior to the effective date of the restated ordinance would remain the same. • Current Non-Hazardous duty employees who are not eligible to retire as of the effective date of the restated ordinance and remain employed with the City and Non-Hazardous duty employees hired on or after the effective date of the restated ordinance would be subject to the following changes in the current pension benefits upon retirement- 1. The normal form of benefit would be a life annuity with a reduction in the monthly pension benefit amount if a different form of benefit is elected. Work Session 2012-06-18 3 2. Overtime and additional pays earned for years of service after the effective date of the restated ordinance would not be included in the pension calculation upon retirement. 3. The annual 1.5% COLA would be delayed for five years after the date of retirement on all pensionable earnings for years of service after the effective date of the restated ordinance. 4. The job connected disability benefit would be reduced to 42% of salary. • Non-Hazardous duty employees hired on or after the effective date of the restated ordinance would also be subject to a change in the current pension multiplier from 2.75% to 2.0%; a change in the retirement eligibility age requirement from age 55 to age 60; and a change in the retirement eligibility years of service requirement from 20 years of service to 25 years of service. • Current Hazardous duty employees who are not eligible to retire as of the effective date of the restated ordinance and remain employed with the City and Hazardous duty employees hired on or after the effective date of the restated ordinance would be subject to the following changes in the current pension benefits upon retirement- 1. The employee Pension contribution would be increased from 8% to 10% of covered salary. 2. The annual 1.5% COLA would be eliminated on all pensionable earnings for years of service after the effective date of the restated ordinance. These proposed pension benefit changes have been estimated by the City's actuary to save the City approximately $4.5 Million in the first year after implementation and approximately $400 Million over the next 30 years. An Actuary Impact Statement has been completed and the proposed changes have been reviewed and approved by the Plan Attorney's, Klausner and Kaufman, PA; and the Benefits Administrator, State of Florida Division of Retirements. If the referendum is approved, the cost associated with the City contribution will be based on the annual actuarial analysis and will be included in subsequent budgets. Staff was directed to provide a strikethrough and underline version of the proposed ordinance. In response to questions, the City Attorney said the City may make factual statements of what the pension changes are and will do. Florida statutes restrict the use of city funds to take a position on the matter. As elected officials, councilmembers may take a position and express their opinion. Human Resources Director Joe Roseto said the educational campaign includes informational mailers for city-registered voters. Work Session 2012-06-18 4 5. Information Technology 5.1 Award a contract (purchase order) to KRONOS Inc., Chelmsford, MA, in the amount of$250,000 for the purchase and installation of Workforce Timekeeper Software and Hardware to upgrade time and attendance management of hourly employees across all city departments, in accordance with Section 2.5640)(d), Code of Ordinances - Other Governmental Bid (GSA Contract); approve a transfer from retained earnings of the Administrative Services Fund in the amount of$185,000; and authorize the appropriate officials to execute same. consent The City of Clearwater employs over 1200 hourly employees in 18 different business operations/departments, reporting to more than 55 City facilities. The management of these hourly employees and their schedules is a significant undertaking that is executed manually with paper time cards. The proposed system (KRONOS) will use biometric technology and manage employee attendance electronically. The system will eliminate paper time cards, record modifications to time and attendance data, and allow contract criteria to be programmed into the system, thus greatly reducing the time and effort currently used for payroll preparation. Ongoing annual maintenance for the system is approximately 22% ($56,156) of total cost of hardware and software, and will be budgeted in the Information Technology budget and charged back to the using departments based upon employee counts. The Public Utilities Department will fund $65,000 for a prorated share of this system, which will include time clocks at 11 locations and 200 licenses. This $65,000 will be funded from operating codes 421-01345 ($56,000) and 419-02090 ($9,000). The remaining balance, $185,000 will be funded from unallocated retained earnings of the Administrative Services Fund. A third quarter budget amendment will establish capital project 315-94874-519, City Enterprise Timekeeping System, with the transfer of$185,000 from the Administrative Services Fund. In response to questions, Information Technology Director Dan Mayer said biometric technology converts palm prints or retina scans to a numeric code, which acts as a password. The city will be using fingerprints. Field technicians will be able to use the telephonic component to log-in or log-out. Biometric technology does not allow buddy punching. 6. Marine and Aviation 6.1 Authorize the adoption of Supplemental Joint Participation Agreement (JPA) Work Session 2012-06-18 5 Number 1 between the City of Clearwater and the State of Florida Department of Transportation (FDOT) amending contract AQJ28 to include additional work under the JPA, such as, the completion of groundwater cleanup, the purchase and installation of an automated weather operating system (AWOS), and the purchase of a portable fueling trailer, auxiliary power unit, and aircraft tug; authorize the appropriate officials to execute same and adopt Resolution 12-11. The Florida Department of Transportation (FDOT) authorized $1.5 million dollars in aviation funding to install the appropriate lighting, markings, and a Precision Approach Path Indicator (PAPI) System to the Clearwater Airpark runway, extend the runway to the north to improve safety, and to repair the taxiway via JPA contract AQJ28. The Council authorized the appropriate officials to execute same and adopted Resolution 12-04 on February 2, 2012. Supplemental JPA Number 1 amends the JPA to include additional work within the scope of the original contract. The additional work includes the completion of groundwater cleanup, which would include field-testing of monitoring wells, lab sampling and report production, the purchase and installation of an automated weather operating system (AWOS), consultant fees, engineering of the site preparation, construction of a pad, electrical installation, and the application process. The purchase of a portable fueling trailer to move Jet A fuel to aircraft, the purchase of an auxiliary power unit to assist aircraft powering up and the purchase of an aircraft tug to safely move aircraft in and around the airport is also included. Adoption of this Supplemental Joint Participation Agreement Number 1 will not increase the total cost of the JPA. 7. Parks and Recreation 7.1 Approve a three-year Revocable License Agreement from July 1, 2012 to June 30, 2015 between the City of Clearwater and SK8 of Mind, Inc., to provide for the operation and management of the pro shop at the Ross Norton Extreme Park located at 1426 S. Martin Luther King Jr. Avenue and authorize the appropriate officials to execute same. (consent) On May 5, 2005, the Council approved entering into a similar agreement with 688 Skateshop Inc, to provide for the operation and management of a pro shop at Ross Norton. At that time, an RFP was issued with only two proposals and staff recommended the agreement with 688 Skateshop, Inc. 688 Skateshop Inc. has successfully provided service to the facility for the past Work Session 2012-06-18 6 seven years. During that time they have reorganized doing business under the name of SK8 of Mind, Inc. Services to be included at the pro shop include retail sales of skateboarding, BMX and roller blade equipment, rentals, lessons, tournaments, etc. Under this License Agreement the City will provide a space for SK8 of Mind, Inc. to conduct said business and services. The City will receive 10% of gross revenue during the term of the agreement estimated to be approximately $4,500 per year. Staff is recommending approval of the Revocable License Agreement between SK8 of Mind, Inc. and the City for three years from July 1, 2012 to June 30, 2015 with the option to renew for two additional three-year terms. 7.2 Amend numerous sections of Chapter 22 of the City of Clearwater Code of Ordinances relating to Parks, Beaches, and Recreation and pass Ordinance 8340-12 on first reading. On February 3, 2005, the City Council approved Ordinance 7376-05 amending Section 22.24 by adding the hours of operation for each City park in the Code of Ordinances; requiring at least one prominently posted sign be installed at each park stating the hours of operation; and providing an exception to the closing hours which would allow a permit to be issued by the Department or the City Manager. From time to time Section 22.24 of the Code of Ordinances needs to be reviewed and updated to reflect accurately any changes that may have occurred since the last amendment. The last update was on October 20, 20117 approving Ordinance 8293-11, which amended park hours and eliminated properties no longer used as a park. In the interest of the public health, safety and welfare, and for the preservation of public property, staff is recommending that the Ordinance be amended as follows: Section 22.24 Authority to regulate beaches, park property, and the Courtney Campbell Recreation Area: Modifying park hours for various parks or portions thereof. Fifty-three (53) parks are closed from sunset to sunrise, nine (9) from 9:00 p.m. to 6:00 a.m. and ten (10) from 10:00 p.m. to 6:00 a.m. Section 22.28 Protection and preservation of property: Limiting bathing to recreation facilities specifically set aside for such purpose. Section 22.37 Use of Restrooms and Other Park Structures: Eliminating references to bathhouses. Work Session 2012-06-18 7 Section 22.38 Camping: Prohibiting camping on any public beach or park property except by special event permit. Section 22.40. Domestic animals: Providing for an exception to the regulation of animals on public beaches and park property to allow for the training and use of service animals in accordance with State and Federal regulations. Section 22.59. Possession of alcoholic beverages: Replacing a reference to Clearwater Executive Golf Course with The Landings Golf Club and replacing a reference to City Commission with City Council. Section 22.86. Appeal of Denial: Replacing all references to City Commission with City Council. Section 22.91. Procedural Requirements; Certain Use Provisions Not Applicable. Replacing references to reserved sections of the Code of Ordinances with appropriate references to the Clearwater Community Development Code. The amending of this Ordinance will provide for a tool that can be used by City law enforcement officers to more effectively patrol City parks and enforce the rules and regulations at each park. 8. Solid Waste/General Support Services 8.1 Approve a Contract (Blanket Purchase Order) to Fleet Products of Tampa, FL in the amount of$220,000 for the purchase of replacement vehicle parts used by all City Departments during the contract period June 21, 2012 through June 20, 2013, in accordance with Sec. 2.564(1)(d), Code of Ordinances, City of Tampa Bid 41081810 and 41020612 and authorize the appropriate officials to execute same. (consent) This blanket purchase order will be used to purchase automotive light duty and heavy-duty parts for all City vehicles. The Tampa bids were issued for automotive light duty parts (41081810) and heavy-duty parts (41020612). 9. Engineering 9.1 Approve a lease amendment between the City of Clearwater and PV-JK Clearwater Beach, LLC to correct a typographical error regarding the amount of Work Session 2012-06-18 8 the security deposit and to reflect a change in ownership and authorize the appropriate officials to execute same. (consent) • The original lease agreement for 35 temporary parking spaces at 400 East Shore Drive commenced June 21, 2007 between the City of Clearwater and Cote[ Inc., LLC. • The conditions of the original lease stipulated the City pay a security deposit in the amount of$2,800 - paid by the City on June 22, 2007. • In April 2009, the property transferred from Cotel Inc., LLC to C.L.E.M. Hospitality, LLC and the new Lessor acknowledged receiving the $2,800 transferred security deposit. • On September 9, 2009, the City renewed the lease agreement with C.L.E.M. Hospitality, LLC. and all conditions were to remain the same with the exception of the term, changed from a fixed term to a month-to-month basis. • On April 5, 2012, C.L.E.M. Hospitality, LLC asked the City to confirm the security deposit amount of$2,800 and not $8,000 as (mis)stated in paragraph 5 of the 2009 lease agreement. • Records in the Ross financial system do not show a payment of$8,000 for a security deposit was ever paid by the City to C.L.E.M. Hospitality, LLC. · PV-JK Clearwater Beach, LLC took ownership of the property at 400 East Shore Drive on April 10, 2012. • All other terms and conditions of this agreement remain the same. 9.2 Approve the rescinding of Ordinance 7650-06 which vacated a utility easement and alley in the 1900 block of Edgewater Drive, more particularly described therein; and pass Ordinance 8339-12 (formally Ordinance 8328) on first reading and withdraw Ordinance 8328-12. City Council passed and adopted Ordinance 7650-06 on July 20, 2006, vacating a utility easement and alley in the 1900 block of Edgewater Drive. The ordinance was adopted subject to certain conditions that were never satisfied and the allotted time for the satisfaction of these conditions has expired. The ordinance expressly states that if conditions are not met within the allotted time, "this ordinance will thereafter be null and void in all respects as though never adopted." In the interest of leaving a clear chain of title to real property, staff recommends approval of a corrective ordinance. Ordinance 8339-12 will rescind Ordinance 7650-06 leaving no uncertainty that the vacation of the alley and utility easement described therein it is null and void. 9.3 Accept a General Utilities Easement conveyed by the property owner of 21311 U.S. Highway 19 North, Clearwater, over a twenty-foot wide strip of land fronting the south side of Drew Street. (consent) Work Session 2012-06-18 9 Planned improvements to the commercial property located at 21311 U.S. Highway 19 North were approved by the Community Development Board on October 18, 2011, under Case FLD2011-07024. The City will take ownership of drainage facilities installed within the easement area by the property owner following the completion of construction. The owner, Brown-19, LLC, has agreed to donate an easement to the City for this purpose. With respect to developing the planned improvements, the only need for the easement is for the installation and maintenance of drainage facilities, however, the easement corridor may be useful for other City utilities. At the City's request, the property owner has agreed to allow the easement to be used as a general utility corridor providing for the installation and maintenance of any type of City utilities. 9.4 Accept a Water Main Easement conveyed to the City by Progress Energy Florida, Inc. over property addressed at 2497 Gulf to Bay Boulevard, Clearwater, for water transmission in support of RO Plant 2. (consent) In 1994, the City conveyed fee title to property located at 2497 Gulf to Bay Boulevard to Progress Energy for assemblage with Progress Energy's adjacent power transmission corridor. The property is approximately 1,157 square feet and contains a sixteen-inch ductile iron pipe used by the City for water transmission. The parcel bisects an existing easement that also contains portions of the existing pipe. In support of the City's planned operation of RO Plant 2, the City is proposing to install an eight-inch PVC pipe for additional water transmission. At the City's request, Progress Energy has agreed to donate a Water Main Easement over the parcel for the City's installation of the proposed pipe as well as the perpetual right to maintain and reconstruct as necessary both pipes within the easement. 10. Planning 10.1 Approve an amendment to the Public Schools Interlocal Agreement between the City of Clearwater, Florida and the School Board of Pinellas County, Florida, and the Municipalities within Pinellas County that contain public schools, deleting language related to school concurrence and authorize the appropriate officials to execute same. (consent) During the 2011 Legislative session, the Legislature passed the Community Planning Act, which revised statutory requirements regarding the implementation of school concurrency, making it optional and no longer mandatory. The School Planning Workgroup, which is a multi-jurisdictional group consisting of local Work Session 2012-06-18 10 government planners and School District staff, met to review the Legislative changes and options, and subsequently recommended to the Pinellas Schools Collaborative that school concurrency be discontinued. The Pinellas Schools Collaborative, which is established by the Public Schools Interlocal Agreement and consists of elected representatives from the School Board and from each Workgroup member's respective jurisdiction, agreed with the School Planning Workgroup recommendation to eliminate school concurrency. This elimination necessitates an amendment of the existing Public Schools Interlocal Agreement, which removes all the language relating to school concurrency and its implementation. All Parties to the Agreement will adopt the Agreement by the end of July and it will go to the Pinellas County Board of County Commissioners for final approval in August. The municipalities within Pinellas County that contain public schools, besides the City of Clearwater, and are party to the agreement include Dunedin, Gulfport, Largo, Madeira Beach, Oldsmar, Pinellas Park, Safety Harbor, Seminole, St. Petersburg, St. Pete Beach, and Tarpon Springs. Amendments to the Comprehensive Plan and Community Development Code, which remove school concurrency, will be forthcoming at August and October City Council meetings. The Planning and Development Department recommends approval of the Public Schools Interlocal Agreement. In response to questions, Planner Catherine Lee said staff will be coming back to remove the school concurrency provisions from the comprehensive plan and community development code. Staff will continue to work with the Pinellas County School Board, as well as the Pinellas County School Collaborative and School Planning Workgroup, even though the school concurrency requirement is no longer in effect. 10.2 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) 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, specifically calling for density bonuses and parking reductions. In December 2008, the Clearwater City Council approved amendments to the Clearwater Comprehensive Plan that included an objective and policies relating to affordable housing incentives. This proposed amendment to the Community Development Code implements that objective and policies. Proposed Ordinance 8313-12 includes the following amendments: Work Session 2012-06-18 11 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-income affordable 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 for approval. At the City Council meeting on May 3, 2012, this item was tabled for further revision. The desired language describing how to measure the distance from a transit stop has been incorporated in the proposed ordinance. 10.3 Approve amendments to the Community Development Code revising Section 3- 909, Outdoor cafes located within public rights)-of-way, and pass Ordinance 8331-12 on first reading. The Community Development Code currently addresses sidewalk cafes located within public right(s)-of-way specifically as they apply to properties within the Clearwater Downtown Redevelopment Plan area and the Tourist District on Clearwater Beach. A number of restaurants within the Tourist District on Work Session 2012-06-18 12 Clearwater Beach along Beach Walk are oriented with their primary facades opening onto public rights-of-way located within the Open Space/Recreation District. With the completion of Beach Walk a number of requests have been made for the provision of outdoor cafes on Beach Walk. These outdoor cafes would necessarily be located within the Open Space/Recreation District. Outdoor cafes and the serving of alcohol are currently not permitted within the Open Space/Recreation District. Proposed Ordinance 8331-12 includes the following amendments to address this issue: • Delineate a specific area within the Open Space/Recreation District and Beach Walk where outdoor cafes are permitted; • Provide specifications for the dimensions and locations for outdoor cafes within the Open Space/Recreation District and Beach Walk; • Provide a requirement that requests for all outdoor cafes regardless of location are accompanied by drawings indicating the location of the cafes; and the extent of alcoholic beverage sales; • Provide for allowing alcohol beverages to be served in conjunction with legally permitted outdoor cafes and • Provide for the revocation of any permitted outdoor cafes should the cafes not meet the City's or public's best interest or any other reason. The Community Development Board (CDB) will review the proposed amendment at its meeting on June 19, 2012. The Planning and Development Department will report the recommendation of the CDB at the City Council Meeting. The City Attorney said the city would have to sign-off on any extension of the alcohol permit into the right-of-way. It was suggested that a 6-month sunset provision for outdoor cafes along Beach Walk be included in the proposed ordinance. The sunset provision would allow staff to review the code compliance by the establishment. The City Attorney said a sunset provision automatically terminates; creating a level of uncertainty for the establishment. 11. City Manager 11.1 Approve a Contract for Purchase of Real Property between Ruth Eckerd Hall, Inc. and the City of Clearwater for the City's purchase of real property at 409 Cleveland Street, Clearwater, with a purchase price at market value as determined by the average of two independent appraisals; and authorize appropriate officials to execute same, together with all other instruments required to affect closing. (consent) The subject property is located at 409 Cleveland Street and is leased for use as Work Session 2012-06-18 13 a retail establishment. The parcel is approximately 1,638 square feet and is located east of, and contiguous with, the City-owned Capitol Theatre. The Property is improved with a single-story commercial structure containing 1,573 square feet. The subject property is located at 409 Cleveland Street and is leased for use as a retail establishment. The parcel is approximately 1,638 square feet and is located east of, and contiguous with, the City-owned Capitol Theatre. The property is improved with a single-story commercial structure containing 1,573 square feet. Ruth Eckerd Hall, Inc. is currently under contract to purchase the property from the current owners for a purchase price of$550,000. Under the contract, Ruth Eckerd Hall, Inc. has a due diligence period ending on June 24, 2012 within which it may terminate the contract. The contract expressly states that the Seller will give possession at closing without any tenants. City staff has negotiated to then purchase the property from Ruth Eckerd Hall, Inc. at a purchase price equal to market value. Market value will be derived by calculating the average of two independent appraisals. The appraisal reports will be available for discussion during the City Council Work Session on June 18, 2012. Market value is expected to be less than the purchase price stipulated in the Ruth Eckerd Hall, Inc. purchase contract. The intended use of the property is to facilitate the renovation and enhanced functionality of the Capitol Theatre. Following the City's acquisition of the property, if approved, City staff will prepare a long-term lease and operating agreement between the City and Ruth Eckerd Hall, Inc. for use of the property in support of Theatre operations. Funding for the purchase will be provided from capital project 315-93623, Capital Theatre. 12. Official Records and Legislative Services 12.1 Appoint Paul J. Kelley to the Marine Advisory Board to fill the remainder of the unexpired term until March 31, 2013. There was consensus to appoint Mr. Kelley. Staff was directed to place Item 12.1 on the Consent Agenda. 12.2 Appoint one member to the Neighborhood and Affordable Housing Advisory Board (NAHAB) as the Residential Home Building Industry representative with term to expire June 30, 2016. Work Session 2012-06-18 14 There was consensus to appoint Michael Potts. Staff was directed to place Item 12.2 on the Consent Agenda. 12.3 Appoint FLC Delegate There was consensus to appoint Councilmember Bill Jonson as the Clearwater voting delegate. 13. Legal 13.1 Adopt Ordinance 8338-12 on second reading, providing for a referendum at a special city election to be held in conjunction with the general Federal, State and County election to be held on November 6, 2012, providing for authorization for City Council to grant economic development ad valorem tax exemptions if the ballot question is approved. 13.2 Approve adding violations of Chapter 22, Code of Ordinances, to the ordinance violations that are punishable by a fine of up to $500, imprisonment for not more than 60 days, or both a fine and imprisonment and pass Ordinance 8344-12 on first reading. Chapter 22 regulates the use of parks within the city. Section 1.12 of the Clearwater Code of Ordinances sets out those ordinance violations that are arrestable violations and are punishable by fine, imprisonment, or both. Adding Chapter 22 to the ordinances that are so punishable would allow police officers to arrest violators of this section. 14. City Manager Verbal Reports — None. 15. Council Discussion Items 15.1 No Item 15.2 Mayors Against Illegal Guns Mayors Against Illegal Guns is dedicated to making America's cities safer by cracking down on illegal guns. The Coalition is requesting mayors across the nation to join. Staff was directed to provide information regarding cost to participate in the initiative. Work Session 2012-06-18 15 16. Closing Comments by Mayor— None. 17. Adjourn The meeting was adjourned at 10:55 a.m. Work Session 2012-06-18 16