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09/20/2012 CITY COUNCIL MEETING MINUTES CITY OF CLEARWATER September 20, 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, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, and Nicole Sprague - Official Records and Legislative Services Coordinator. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 1. Call to Order— Mayor George N. Cretekos The meeting was called to order at 6:00 p.m. at City Hall. 2. Invocation — Father Tom Madden from St. Cecelia Catholic Church 3. Pledge of Allegiance — Councilmember Doreen Hock- iPolito 4. Presentations — Given. 4.1 Service Awards Two service awards were presented to city employees. 5. Approval of Minutes 5.1 Approve the minutes of the September 6, 2012 City Council Meeting as submitted in written summation by the City Clerk. Councilmember Bill Jonson moved to approve the minutes of the September 6, 2012 City Council Meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. Council 2012-09-20 1 6. Citizens to be Heard re Items Not on the Agenda Katherine Graves said a pothole in Clearwater damaged her vehicle. Public Hearings - Not before 6:00 PM 7. Administrative Public Hearings 7.1 Adopt Ordinance 8355-12 on second reading, declaring the Millage Rate to be levied for the Fiscal Year beginning October 1, 2012 and ending September 30, 2013, for operating purposes including the funding of pensions, debt service, and road maintenance for capital improvement expenditures at 5.155 mills, which constitutes a 1.60% decrease from the rolled back rate of 5.2387 mills. Budget Director Tina Wilson provided a PowerPoint presentation. Ordinance 8355-12 was presented and read in full. Councilmember Doreen Hock- DiPolito moved to adopt Ordinance 8355-12 on second and final reading. The motion was duly seconded and upon roll call, the vote was: 'Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember Jay E. Polglaze. "Nays None. 7.2 Adopt Ordinance 8356-12 on second reading, adopting an Operating Budget for the Fiscal Year beginning October 1, 2012, and ending September 30, 2013, authorizing the City Manager to issue such instructions that are necessary to achieve and accomplish the service programs so authorized; authorizing the City Manager to transfer monies and programs among the departments and activities within any fund as provided by Chapter 2 of the Clearwater Code of Ordinances. Ordinance 8356-12 was presented and read by title only. Councilmember Jay Polglaze moved to adopt Ordinance 8356-12 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember Jay E. Polglaze. Council 2012-09-20 2 "Nays None. 7.3 Adopt Ordinance 8357-12 on second reading, adopting the Capital Improvement Program Budget for the Fiscal Year beginning October 1, 2012 and ending September 30, 2013, approving the Six-Year Capital Improvement Program which shall be reevaluated at the beginning of each fiscal year; authorizing the City Manager to issue such instructions that are necessary to achieve and accomplish the capital improvements so authorized; authorizing the City Manager to transfer money between projects in the Capital Improvement Program; appropriating the available and anticipated resources for the projects identified. Ordinance 8357-12 was presented and read by title only. Councilmember Bill Jonson moved to adopt Ordinance 8357-12 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember Jay E. Polglaze. "Nays None. 7.4 Approve the vacation of the 17-foot alley Iying south of Lot 7 and the west 41.34 feet of Lot 6, Block B; approve the vacation of the 28-foot alley lying West of Lots 21, 22, and 23 of Block B, these properties described in the plat titled John R. Davey, Et. Al. Resubdivisiom and pass Ordinance 8363-12 on first reading (VAC2012-02 Capitol Theatre). The plan to renovate the Capitol Theatre includes expanding the Theatre's footprint southward into the existing 17-foot wide alley. Accordingly, staff recommends the vacation of the westernmost 89.34 ft. of the affected right-of- way. The project includes the realignment of the right-of-way utilizing Pinellas County-owned property immediately south of the vacated alley. This right-of-way realignment will provide for continued traffic flow and the relocation of utilities as necessary. The design of the road will require modification of two parking lots owned by Pinellas County. The parking lot modification will provide for a "no net loss" of County parking spaces. The proposed parking lot design includes a second vacation of the northernmost 150 feet of the 28-foot wide alley currently located between the two County parking lots. There are several City-owned and private utilities that will be affected by the two vacations. Where practicable and cost-effective, utilities will remain in their current locations via easements as necessary. Others will be relocated to the realigned Council 2012-09-20 3 road to be constructed. Ordinance 8363-12 is contingent upon the following conditions- 1) The City will retain a utility easement over the 28-foot alley for continued use of facilities owned by the City, Knology and Progress Energy. 2) Pinellas County will grant an easement to the City over the northern portion of its property for use as a public right-of-way and as a utility corridor for public and private utilities. 3) City and private utilities will be relocated as necessary at no cost to the respective private utility providers. Under the Theatre renovation project, there is an option to include a vault for the existing Progress Energy transmission line to be incorporated into the building addition. If so, the City will grant an easement to Progress Energy for this purpose. The alternative option is to relocate the line to the realigned right-of-way. 4) Pinellas County shall convey all right, title and interest to the 17-foot alley to the City. Following the satisfaction of all conditions, construction for the above-mentioned parking lot renovation will commence. Councilmember Jay Polglaze moved to approve the vacation of the 17-foot alley lying south of Lot 7 and the west 41.34 feet of Lot 6, Block B; approve the vacation of the 28- foot alley lying West of Lots 21, 22, and 23 of Block B, these properties described in the plat titled John R. Davey, Et. AI. Resubdivision. The motion was duly seconded and carried unanimously. Ordinance 8363-12 was presented and read by title only. Vice Mayor Paul Gibson moved to pass Ordinance 8363-12 on first reading. The motion was duly seconded and upon roll call, the vote was: 'Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember Jay E. Polglaze. "Nays None. 7.5 Request to remove the historic designation of the Capitol Theatre located at 405 Cleveland Street [consisting of the East of Lot 7, plus 30 ft. and 3 in. of Lot 6, John R. Daveys Resub of Block B (per Plat Book H-1, Page 87, Public Records of Hillsborough County, Florida, of which Pinellas County was formerly a part)1. Council 2012-09-20 4 Staff recommends denying Ordinance 8358-12 on first reading. (HIS2012- 00001) This application involves property known as the Capitol Theatre located on the south side of Cleveland Street, one property east of Osceola Avenue in Downtown Clearwater. The Capitol Theatre opened in 1921 and was designed by Lester Avery and owned by John S. Taylor, son of one the area's earliest homesteaders. The building is an excellent example of the elaborate Mediterranean Revival style and is unique to Cleveland Street. The City of Clearwater entered into a partnership with Ruth Eckerd Hall, Inc. regarding the purchase, rehabilitation, operation and maintenance of this property. It is one of two properties designated locally as historic through provisions contained within the Community Development Code. On December 3, 2009, City Council approved Ordinance 8119-09, designating the Capitol Theatre as historic, finding that the building qualified for the classification of"excellent," based on the standards for designation outlined in the Community Development Code Section 4-607.F.2 and 3: The property is associated with events that made a significant contribution to the board pattern of the City; The property is associated with the lives of persons significant in history; and The property possesses distinctive characteristics of a type, period or method of construction. Preliminary renderings for the restoration of the Clearwater Evening Sun Building and Capitol Theater were submitted with the application for historic designation, demonstrating Ruth Eckerd Hall, Inc.'s intent to renovate the exterior of the building consistent with its defining historic elements/features, which would have been consistent with the Secretary of the Interior's Standards for Rehabilitation, the Downtown Clearwater Redevelopment Plan Design Guidelines, and Community Development Code Section 3-1003 Certificates of appropriateness. Since receiving the historic designation, Ruth Eckerd Hall, Inc. has modified their plans for renovation of the Capitol Theater and adjacent Clearwater Evening Sun Building, and has requested that the historic designation be removed. New plans for the facade are designed to incorporate the Clearwater Evening Sun Building seamlessly into the exterior design of the Capitol Theater, which would materially alter this designated historic property. Instead of pursuing a certificate of appropriateness from the Community Development Board to materially alter a historic property as outlined in the Community Development Code, Ruth Eckerd Hall, Inc. is requesting that the historic designation of this building be removed. Council 2012-09-20 5 The Community Development Code states, "The removal of the historic designation from a property or district shall follow the same procedures as were used for its designation." The Code, however, does not include different criteria to be considered when a request is received to remove a historic designation. T he Clearwater Comprehensive Plan and Downtown Clearwater Redevelopment Plan support historic preservation and economic development. The Community Development Board reviewed the proposed amendment at their meeting on September 18, 2012 and recommended denial of request to remove the historic designation. If Council chooses to remove the historic designation of the Capitol Theatre, then Council would need to pass Ordinance 8358-12 on first reading. Ruth Eckerd Hall Board of Directors Chair Joshua Magidson said the historical designation request was made with the anticipation that the project would be eligible for the national registry and historic preservation grants; neither occurred. It was noted that local historian Michael Sanders supports removing the historical designation given the current plans to include the Lokey Building and Blue Dahlia to the Theater's footprint. Architect Steve Fowler reviewed current plans for renovating the Capitol Theater, which includes expanding the theater's original fagade to the Lokey Building and Blue Dahlia. Mr. Fowler said the historic designation will not allow this fagade expansion beyond the Capitol Theater and hence the reason for removing the historic designation. One individual spoke in opposition. Councilmember Jay Polglaze moved to approve request to remove the historic designation of the Capitol Theatre located at 405 Cleveland Street [consisting of the East of Lot 7, plus 30 ft. and 3 in. of Lot 6, John R. Daveys Resub of Block B (per Plat Book H-1, Page 87, Public Records of Hillsborough County, Florida, of which Pinellas County was formerly a part)]. The motion was duly seconded and carried unanimously. Ordinance 8358-12 was presented and read by title only. Vice Mayor Paul Gibson moved to pass Ordinance 8358-12 on first reading. The motion was duly seconded and upon roll call, the vote was: 'Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember Jay E. Polglaze. "Nays None. Council 2012-09-20 6 7.6 Request to remove the historic designation of the Clearwater Evening Sun Building located at 401 Cleveland Street [consisting of the West of Lot 7, John R. Daveys Resub of Block B (per Plat Book H-1, Page 87, Public Records of Hillsborough County, Florida, of which Pinellas County was formerly a part)1. Staff recommends denying Ordinance 8359-12 on first reading. (HIS2012- 00002) This application involves property known as the Clearwater Evening Sun Building located on the southeast corner of Cleveland Street and Osceola Avenue. The building was constructed in 1914 by Willis B. Powell and housed one of Clearwater's first newspapers. It is a two-story brick structure with decorative brickwork and is an outstanding example of commercial Masonry Vernacular. The City of Clearwater entered into a partnership with Ruth Eckerd Hall, Inc. regarding the purchase, rehabilitation, operation and maintenance of this property. It is one of two properties designated locally as historic through provisions contained within the Community Development Code. On December 3, 2009, City Council approved Ordinance 8118-09, designating the Clearwater Evening Sun Building as historic, finding that the building qualified for the classification of"excellent," based on the standards for designation outlined in the Community Development Code Section 4-607.F.2 and 3: The property is associated with events that made a significant contribution to the board pattern of the City; The property is associated with the lives of persons significant in history; and The property possesses distinctive characteristics of a type, period or method of construction. Preliminary renderings for the restoration of the Clearwater Evening Sun Building and Capitol Theater were submitted with the application for historic designation, demonstrating Ruth Eckerd Hall, Inc.'s intent to renovate the exterior of the building consistent with its defining historic elements/features, which would have been consistent with the Secretary of the Interior's Standards for Rehabilitation, the Downtown Clearwater Redevelopment Plan Design Guidelines, and Community Development Code Section 3-1003 Certificates of appropriateness. Since receiving the historic designation, Ruth Eckerd Hall, Inc. has modified their plans for renovation of the Clearwater Evening Sun Building and adjacent Capitol Theater, and has requested that the historic designation be removed. New plans Council 2012-09-20 7 for the facade are designed to incorporate the Clearwater Evening Sun Building seamlessly into the exterior design of the Capitol Theater, which would materially alter this designated historic property. Instead of pursuing a certificate of appropriateness from the Community Development Board to materially alter a historic property as outlined in the Community Development Code, Ruth Eckerd Hall, Inc. is requesting that the historic designation of this building be removed. The Community Development Code states, "The removal of the historic designation from a property or district shall follow the same procedures as were used for its designation." The Code, however, does not include different criteria to be considered when a request is received to remove a historic designation. The Clearwater Comprehensive Plan and Downtown Clearwater Redevelopment Plan support historic preservation and economic development. The Community Development Board reviewed the proposed amendment at their meeting on September 18, 2012 and recommended denial of request to remove the historic designation. If Council chooses to remove the historic designation of the Clearwater Evening Sun Building, then Council would need to pass Ordinance 8359-12 on first reading. One individual spoke in opposition and one individual spoke in support. Councilmember Bill Jonson moved to approve request to remove the historic designation of the Clearwater Evening Sun Building located at 401 Cleveland Street [consisting of the West of Lot 7, John R. Daveys Resub of Block B (per Plat Book H-1, Page 87, Public Records of Hillsborough County, Florida, of which Pinellas County was formerly a part)]. The motion was duly seconded and carried unanimously. Ordinance 8359-12 was presented and read by title only. Councilmember Doreen Hock-DiPolito moved to pass Ordinance 8359-12 on first reading. The motion was duly seconded and upon roll call, the vote was: 'Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember Jay E. Polglaze. "Nays None. 8. Second Readings - Public Hearing 8.1 Adopt Ordinance 8332-12 on second reading, vacating that certain portion of Council 2012-09-20 8 land lying east of and adjacent to Block 2, Map or Plat entitled Bay View City Subdivision as recorded in Plat Book 9, Page 43 of the Public Records of Pinellas County, Florida, and vacating that certain 15-foot drainage and utility easement being 71/2 feet each side of the original centerline of vacated Kentucky Avenue lying south of Lots 6 and 7, Block 2, and north of Lots 4 and 5, Block 3, Bay View City Subdivision, according to the map or plat thereof as recorded in Plat Book 9, Page 43 of the Public Records of Pinellas County, Florida, and amending Ordinance 8169-10, which vacated a portion of land lying east of Lot 5, Block 2, Bay View City Subdivision inaccurately. Ordinance 8332-12 was presented and read by title only. Councilmember Doreen Hock-DiPolito moved to adopt Ordinance 8332-12 on second and final reading. The motion was duly seconded and upon roll call, the vote was: 'Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember Jay E. Polglaze. "Nays None. 9. Consent Agenda — Approved as submitted, less Item 9.4. 9.1 Accept grant from Communities Putting Prevention to Work (CPPW), in an amount not to exceed $20,000, for the purchase of equipment and marketing materials for the Clearwater Gateway Farmers Market, and authorize the appropriate officials to execute same. (consent) 9.2 Declare list of vehicle and equipment surplus to the needs of the City: authorize disposal through sale to the highest bidder at the Tampa Machinery Auction, Tampa, Florida, and authorize the appropriate officials to execute same. consent 9.3 Authorize the City Attorney to retain outside Legal Counsel on behalf of Clearwater Gas System for the period of October 1, 2012 through September 30, 2017, and authorize the appropriate officials to execute same. (consent) 9.4 Approve the First Amendment to the Project Agreement between the City and Phillies Florida, LLC, approving Project modifications to address environmental concerns and minimum flood plain elevations; increasing the City funding for the project from $2,900,000 to $3,250,000 from unappropriated retained earnings and authorize the appropriate officials to execute same. (consent) Council 2012-09-20 9 See below. 9.5 Approve a three-year Agreement between the American Red Cross and the City of Clearwater to provide training in first aid care, emergency response, swim instruction and lifeguarding for City employees and members of the public and authorize the appropriate officials to execute same. (consent) 9.6 Approve a funding source change of$200.000 from Projected Grants to General Funds for Capital Improvement Project (CIP 315-93625). Pier 60 Park Repair and Improvements, and approve a first quarter amendment to transfer $200.000 from General Fund Reserves to this project. (consent) 9.7 Approve First Amendment to Agreement between the School Board of Pinellas County. Florida (Board) and the City of Clearwater (City) providing for the joint use of facilities retroactively to January 1. 2012 through December 31. 2016 and authorize the appropriate officials to execute same. (consent) 9.8 Approve a 1-year agreement with the Junior League of Clearwater-Dunedin. Inc. (JLCD). Eckerd Youth Alternatives. Inc. (EYA) and Camelot Community Care. Inc. (CCC) and the City, from October 1. 2012 to September 30. 2013, to provide programming to serve young people and families in the foster care system at the Ross Norton Recreation and Aquatic Complex and authorize the appropriate officials to execute same. (consent) 9.9 Approve a contract in the amount of$473.263.50 with the Pinellas County Sheriff's Office, Largo. Florida for latent fingerprint, crime scene processing services, evidence and property storage and Pinellas Juvenile Assessment Center services, during the one-year contract period commencing October 1. 2012 through September 30. 2013, and authorize the appropriate officials to execute same. (consent) 9.10 Approve the renewal of a Software Support Agreement for the TriTech System, in the amount of$162.672.56, for a 12-month period beginning October 1. 2012 and ending September 30. 2013, and authorize the appropriate officials to execute same. (consent) 9.11 Approve Change Order 4 to Central Florida Contractors. Inc. of Seminole. Florida for the 2011 Sidewalk Contract 01-0012-EN) in the amount of $400.000.00, for a new contract total of$1.025.169.00: approve a time extension of 180 days to allow for completion of the additional work and authorize the appropriate officials to execute same. (consent) Council 2012-09-20 10 9.12 Approve Legal Services Agreement between the City of Clearwater and Baker and Hostetler LLP, to serve as legal counsel on Environmental matters for a three-year period, in the amount of$150,000.00 and authorize the appropriate officials to execute same. (consent) 9.13 Reappoint Councilmember Bill Jonson to the Pinellas Suncoast Transit Authority for a three year term starting October 1, 2012 and expiring on September 30, 2015. (consent) 9.14 Appoint Lynn F. Sumerson to the Environmental Advisory Board with term to expire September 30, 2016. (consent) 9.15 Approve the Mayor's appointment of John Doran to the Clearwater Housing Authority Board with term to expire September 30, 2016. (consent) Councilmember Doreen Hock-DiPolito moved to approve the Consent Agenda as submitted, less Item 9.4, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 9.4 Approve the First Amendment to the Project Agreement between the City and Phillies Florida, LLC, approving Project modifications to address environmental concerns and minimum flood plain elevations; increasing the City funding for the project from $2,900,000 to $3,250,000 from unappropriated retained earnings and authorize the appropriate officials to execute same. (consent) On December 1, 2011, the Council approved the Fourth Amendment to Sports Facility Use Agreement between the City of Clearwater (City) and Phillies Florida LLC (Phillies); a Project Agreement between the City and Phillies to make certain improvements at Carpenter Complex and Bright House Networks Field (Project) in accordance to the Carpenter Complex Use Agreement and the Bright House Networks Field Use Agreement and approve funding the project for$2,900,000 from unappropriated retained earnings. Since that time, the planning, development, permitting and construction of the project has moved forward. In the permitting phase, it was discovered that methane gas was present on the site. DEP (Department of Environmental Protection) has approved a gas vapor intrusion detection and mitigation system to be installed in the Training Building portion of the Project. The project had not anticipated this cost since methane had not previously been detected on the site. In order to keep the project on schedule, the investigation, design work and estimates to construct the gas system were completed and permitted at a cost of $115,000. The City is responsible for environmental matters arising on the site in Council 2012-09-20 11 accordance with the Carpenter Complex and Bright House Field Use Agreements. In addition, the original elevation of the new training facility was established at 23 feet, which is 1 foot higher than the 100-year flood plain elevation of 22 feet, and was an acceptable elevation from an engineering and design perspective. However, in June of 2012, Tropical Storm Debby impacted the subject site such that several rooms at Bright House Network Fields, the maintenance building at Carpenter, and 70% of Carpenter Field including the location for the new training facility were flooded. In accordance with both the Carpenter Complex and Bright House Field Use Agreements, the City is responsible for the repair and rebuilding of the subject facilities should such facilities be destroyed by flood or other similar cause. Therefore, City staff and its consultants recommend that the new building be elevated to 25.5 feet to preserve the City's asset and minimize the possibility of future damage and the related extensive costs the City would be obligated to pay. The city will pay up to $235,000 to elevate the building the additional 2.5 feet and any cost above this amount will be covered by the Phillies. Staff is recommending that the City's contribution to the project be increased from $2.9 million to $3,250,000 to cover costs of the gas mitigation system ($115,000) and up to $235,000 to increase the floor elevation of the building by 2.5 feet. Funding for the project will come from unappropriated retained earnings and will be transferred into the project at third quarter. The Phillies have been managing the project and will be responsible for any project cost overrun above the City's $3,250,000 contribution. If approved, a third quarter budget amendment to project 315-93628, Carpenter Complex/Bright House Field Improvements in the amount of$350,000 from General Fund unappropriated retained earnings will be made. With the approval of this agenda item, General Fund reserves will be approximately $20.3 million, with reserves of $10.7 million over the current reserve policy. One other change to the agreement deals with the use of the 3,420 sq. ft. building north of the Clubhouse. The original proposal was to convert this structure into two additional indoor batting tunnels, however the Phillies have since requested that this building be used as a maintenance storage facility. The Phillies will also assume the maintenance and replacement costs for the air conditioning of this space. One individual spoke in opposition and one individual spoke in support. In response to a question, Parks and Recreation Director Kevin Dunbar said the City owns the stadium, training building, clubhouse and fields. The Phillies/Threshers contribute $9 million annually in the Clearwater economy to purchase goods and services. The economic impact of Spring Training is estimated at $100 million. Council 2012-09-20 12 Councilmember Jay Polglaze moved to approve the First Amendment to the Project Agreement between the City and Phillies Florida, LLC, approving Project modifications to address environmental concerns and minimum flood plain elevations; increasing the City funding for the project from $2,900,000 to $3,250,000 from unappropriated retained earnings and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. City Manager Reports 10. Other Items on City Manager Reports 10.1 Amend the City's fiscal year 2011/12 Operating and Capital Improvement Budgets at third quarter and pass Ordinances 8361-12 and 8362-12 on first reading. The fiscal year 2011/12 Operating and Capital Improvement Budgets were adopted in September 2011 by Ordinances 8285-11 and 8286-11. Section 2.521 of the City' Code of Ordinances requires the City Manager to prepare a quarterly report detailing income, expenditure estimates, collections, the explanation of significant variances, as well as the financial status of all capital improvement projects. Vice Mayor Paul Gibson moved to amend the City's fiscal year 2011/12 Operating and Capital Improvement Budgets at third quarter. The motion was duly seconded and carried unanimously. Ordinance 8361-12 was presented and read by title only. Councilmember Bill Jonson moved to pass Ordinance 8361-12 on first reading. The motion was duly seconded and upon roll call, the vote was: 'Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember Jay E. Polglaze. "Nays None. Ordinance 8362-12 was presented and read by title only. Councilmember Doreen Hock-DiPolito moved to pass Ordinance 8362-12 on first reading. The motion was duly seconded and upon roll call, the vote was: Council 2012-09-20 13 'Ayes": Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember Jay E. Polglaze. "Nays": None. 10.2 Approve the Capitol Theatre Operating Agreement between the City of Clearwater and Ruth Eckerd Hall, Inc., authorize advance of$ 4,412,209 from Central Insurance Fund reserves to Capital Proiect 315-93623 to complete funding of the project as delineated in the First Amended Memorandum of Agreement between the Parties, and the provisions of this Operating Agreement, and authorize the appropriate officials to execute same. In 2006, Ruth Eckerd Hall requested an appropriation in Penny for Pinellas (Penny) III funds for a $4 million improvement to the Education center at the Marcia Hoffman Institute at Ruth Eckerd Hall. Subsequently, in 2008 the City of Clearwater and Ruth Eckerd Hall, Inc., entered into a Memorandum of Understanding (MOU) concerning the acquisition, renovation, operation, maintenance and temporary utilization of the properties known as the Capitol Theatre and the Lokey Building (403 and 401 Cleveland Street). It was anticipated that the subject properties would be incorporated into an expanded and renovated Capitol Theatre to be owned by the City and operated by Ruth Eckerd Hall, Inc. Due largely to the economic crisis which beset the nation later in 2008, followed by a transition in leadership at Ruth Eckerd Hall, the opportunity to move forward with a contemplated fund raising campaign by Ruth Eckerd Hall was interrupted and the purposes of the MOU and the Penny III project were largely unrealized. The City purchased the 403 and 401 properties and the theater is being operated on a temporary basis by Ruth Eckerd Hall. Other provisions of the MOU have remained dormant. Under the leadership of a new President/CEO of Ruth Eckerd Hall, a new capital and renovation strategy has been developed involving both the Capitol Theatre and Ruth Eckerd Hall per se. Ruth Eckerd Hall wishes to move forward during the next several years with renovation of both facilities under a redesigned and expanded concept. This led to a renegotiation of both the MOU and the relative participation of the parties in the Capitol Theatre project and the Penny III appropriation, in order to more efficiently and effectively facilitate successful completion of the two facility renovations and capital funding. Key provisions of the Operating Agreement are: Council 2012-09-20 14 30-year term of Agreement; Ruth Eckerd Hall assumes full responsibility for operation, maintenance and capital repairs to the facility; A $3 million Reserve Fund is to be established, to be funded entirely by Ruth Eckerd Hall, and to be used to insure no operational, maintenance or capital contributions by the City; The adequacy of the Reserve Fund total will be reviewed and adjusted, as appropriate, at least every five years; Ruth Eckerd Hall will initially contribute $1 million to the Reserve Fund upon completion of construction; $500, 000 each of the next two years; and, 100,000 each of the next 10 years to reach the $3 million requirement; at the end of the 30-year period, any funds remaining after satisfying the terms of the Agreement will be returned to Ruth Eckerd Hall; Ruth Eckerd Hall will submit to the City Manager for approval, annually, the following materials to assure operation and maintenance of the facility in a manner comparable to similar performance venues: a proposed operating budget, management plan, marketing plan, capital maintenance schedule, capital improvement plan and staffing plan; Ruth Eckerd Hall agrees to a minimum annual performance schedule of 100 performances, of which at least 75 shall be self-produced events; The City shall have access to the facility for governmental purposes, based upon availability, and at reduced and/or no cost as prescribed in the Agreement; Ruth Eckerd Hall shall have sole administrative and artistic control of their 100 events. In order to fully fund the City commitment to the project, and the acquisition of the 409 Cleveland Street project, advance of$4,412,209 from Central Insurance Fund reserves is necessary. $4,000,000 of this advance will be returned to the Fund when Penny for Pinellas III appropriations designated for the Capitol Theatre and Ruth Eckerd Hall are available. This is contingent on $500,000 of monies currently designated for Ruth Eckerd Hall being re-designated for Capitol Theater at a future date. A City Project Funding Summary delineates the status of the City commitment (Attachment A). The City's total obligation to fund renovation and construction costs per se remains at $7,112,209.Staff recommends approval of the Operating Agreement and the Central Insurance Fund advance. The City Attorney reviewed the agreement details. In response to questions, the City Attorney said Ruth Eckerd Hall has agreed to a 10- year projection of planned capitol improvements to the facility, including projected funding sources. Ruth Eckerd Hall has requested to use the parking area in front of City Council 2012-09-20 15 Hall; the City has approved the request when the parking area is not used for city business or during city-sponsored events held at Coachman Park. One individual spoke in support. Councilmember Jay Polglaze moved to approve the Capitol Theatre Operating Agreement between the City of Clearwater and Ruth Eckerd Hall, Inc., authorize advance of$ 4,412,209 from Central Insurance Fund reserves to Capital Project 315- 93623 to complete funding of the project as delineated in the First Amended Memorandum of Agreement between the Parties, and the provisions of this Operating Agreement, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 10.3 Amend the Clearwater Code of Ordinances, Division 7 - Section 2.194, updating the meeting frequency of the Library Advisory Board to quarterly and pass Ordinance 8360-12 on first reading. The Library Advisory Board (Board) has been meeting quarterly since January 2008 due staffing reductions. Ordinance 8360-12 amends the Code of Ordinances, Section 2.194, to reflect the current meeting frequency. Prior to 2008, the Board met monthly from September through May. Councilmember Bill Jonson moved to amend the Clearwater Code of Ordinances, Division 7 - Section 2.194, updating the meeting frequency of the Library Advisory Board to quarterly. The motion was duly seconded and carried unanimously. Ordinance 8360-12 was presented and read by title only. Vice Mayor Paul Gibson moved to pass Ordinance 8360-12 on first reading. The motion was duly seconded and upon roll call, the vote was: 'Ayes Mayor George N. Cretekos, Vice Mayor Paul Gibson, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, and Councilmember Jay E. Polglaze. "Nays None. Miscellaneous Reports and Items 11. City Manager Verbal Reports — None. 12. Closing Comments by Mayor Council 2012-09-20 16 Mayor George N. Cretekos reviewed recent and upcoming events. 13. Adjourn The meeting was adjourned at 7:26 p.m. ffc kf Mayor Attest City of Clearwater Of THE / City Clerk sty �,:-� `t + Council 2012-09-20 17