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06/12/1995 CITY COMMISSION WORK SESSION June 12, 1995 The City Commission of the City of Clearwater met Monday, June 12, 1995, at City Hall with the following members present: Rita Garvey Mayor/Commissioner Sue A. Berfield Vice-Mayor/Commissioner Fred A. Thomas Commissioner J. B. Johnson Commissioner Also present: Elizabeth M. Deptula City Manager William C. Baker Assistant City Manager Kathy S. Rice Deputy City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia Sullivan Board Reporter The meeting was called to order at 1:00 p.m. Service Awards Three service awards were presented to City employees. The Commission recessed at 1:06 p.m. to meet as Pension Trustees and the Community Redevelopment Agency and reconvened at 1:50 p.m. GAS GAS SYSTEM The agenda item regarding a contract to install polyethylene gas mains in Pasco County has been pulled. GS GENERAL SERVICES Contract for custodial services to Tri-Angle Maintenance Services, St. Petersburg, FL, for the period 07/15/95 -07/14/96, at an estimated $71,357.28 In March 1995, bids were solicited for custodial services at the following facilities: City Hall; City Hall Annex; General Services Complex; Gas Services; Gas Sales Office; Public Works Complex; Marina building; Purchasing Division; Sailing Center; and the Marshall Street Water Pollution Control Plant offices. For custodial purposes, these facilities total 134,177 square feet. The City reserves the right to add or delete square footage to this contract as may be required. When the new construction projects are completed, the custodial services contract will be re-evaluated. Concern was expressed that the cost for these services had increased substantially. The City Manager said the contract includes costs for a portion of fiscal year 1994/95. Costs are difficult to compare as buildings are added and deleted throughout the year. General Services Director, Bill Baird, said he would provide square foot costs before Thursday’s meeting. The City Manager pointed out that staff will be added in lieu of the Libraries, Police Department and Solid Waste Complex being included in this contract. IA INTERNAL AUDIT Second Reading Ord. #5757-95 - Granting to GTE Florida Inc. permission to occupy municipal streets & rights-of-way in the City, as a means of providing telecommunication services; prescribing terms & conditions accompanying the grant of franchise; and prescribing penalties for the violation of its provisions; providing for severability of provisions GTE of Florida, Inc. has agreed to abide by the terms of Franchise Ordinance #5757-95. The Franchise Highlights are: 1) The Franchise term is for ten years; 2) The ordinance does not include a non competition clause. The City could provide local telephone service and compete with GTE during the Franchise period; 3) Franchise fees for local service are limited by F.S. 337.401(3) to 1% of local recurring revenue. Included in the ordinance is a “favored nation's clause” which stipulates that in the event either a larger percentage or broader base is permitted, the City will be entitled to the additional revenue; 4) Any sale or transfer of GTE of Florida, Inc. must be approved by the City Commission; 5) Penalties for non performance and/or poor service of the franchisee are stipulated; 6) Required City permits, notification to the City before working in the right-of-way, etc. are stipulated; 7) A provision requiring GTE to reimburse the City for audit costs is stipulated in the ordinance; 8) GTE has agreed to have underground over 90% of all of their telecommunication facilities; 9) GTE must obtain the City’s permission to provide Wireless Communication services (PCS system through the use of the public right-of-way.) The City Attorney is working on ordinances that address wireless communications and private facilities installed by companies for their own use; 10) The required provision for the option to purchase GTE facilities is included in the Franchise ordinance; 11) As verified by a field inspection of all traffic signal poles throughout the City, there is no longer a joint use of facilities. As a result, the joint facilities' agreement previously approved on February 2, 1995 by the City Commission will not be executed; and 12) The City has settled the revenue audit with GTE and received $415,000. Currently, the City is auditing AT&T for the 7% public service tax on intrastate long distance calls. The City Manager indicated the difference between the ordinance approved on first reading and this version is the recision of the joint facilities' agreement. Concern was expressed that the City not be disadvantaged. Internal Audit Director Dan Katsiyiannis said the City was aggressive in negotiation. GTE had not realized the City had proposed to use GTE’s duct work, etc. for City communication and competition. An audit indicated the City does not use much of GTE’s equipment. The contract will not allow the City to use GTE facilities free of charge for the City’s benefit. Mr. Katsiyiannis said if GTE wishes to provide cable services in the City, which is allowed by law, they will have to negotiate a franchise agreement with Clearwater. Concern was expressed regarding the term “not withhold unreasonable.” The City Attorney indicated that language is defined in case law. Commissioner Thomas requested a copy of the definition. Concern was expressed the City maintains a tickler file to remind staff when leases need to be addressed. Deputy City Manager Kathy Rice indicated the City Clerk has a contract lease tracking program. It was suggested that all departments establish tickler files for contract renewals. The City Manager said most department directors already accept that responsibility. Problems occurred with contracts outside the responsibility of specific departments. Staff will make special efforts in this area. MR MARINE Direction requested re proposed Marina Building Rental Policy As directed by the City Commission, staff has reviewed the current Marina Building Rental Policy. On April 11, 1995, the Marine Advisory Board approved the proposed policy. Building tenants had the opportunity to comment on the current and proposed policies. The gift shop owner requested remaining with a five-year lease agreement. Staff proposes to negotiate leases based on the rate and mix of tenant services. Staff suggests a rental rate range from $9/square foot to $12/square foot for second floor rooms and from $12/square foot to $18/square foot for first floor rooms. Current building tenants will receive the first opportunity to rent vacant space. Staff recommends continuing the policy of negotiating the lease with the tenant and considering the tenant’s record during the ending lease period. The City Manager and Harbormaster will review and approve the business assigned to the space. Staff recommends adopting an ordinance to allow the City Manager to approve and execute lease agreement renewals for three year periods. Current building tenants would have the option of a City Manager approved three year lease or a five-year lease approved by the City Commission. Staff recommends continuing with a percentage of gross sales with the leases for the marina gift shop and restaurant. Other Marina businesses that sell merchandise will have either a percentage of gross sales or yearly Consumer Price Index (CPI) increase added to their Lease Agreement. Staff recommends eliminating the requirement that all for-profit tenants provide either three years of audited statements or a guaranty letter for the full amount of the lease. With the City Manager’s ability to approve three year leases, little or no vacant space should occur in the building. Marina building tenants will continue to pay for improvements, maintenance, taxes, insurance and utilities in the rented space. First floor tenants also will continue to provide plate glass insurance with their policy. Each new lease will require a one month security deposit. The rental space will be used only for the purposes identified in the lease agreement and there will be no “automatic extension” of the term of the lease. Marina building tenants, their employees and customers will continue to pay for parking at the Marina. Concern was expressed that leases are not revocable if the space is not occupied. Harbormaster Bill Held said the lease states the merchant must be in business each day of the lease. He said staff has given some leeway to a new tenant and indicated the business will be in operation this week. Consensus was to allow the City Manager to renew three-year leases for current tenants. Mr. Held said language will be added to the standard lease regarding how soon tenants must begin operations. Concern was expressed that conflicts of interest could arise if all leases do not go out to bid. The City Manager said staff completes periodic market analysis and recommended negotiating leases instead of bidding them. She noted no bids were received on one recently offered space. The majority of the Commission agreed the City Manager and Harbormaster should have the option to bid or negotiate leases. Concern was expressed regarding how the City Manager and Harbormaster review and determine the appropriateness of a potential tenant. It was recommended that staff issue a statement outlining the appropriate tenant mix for the marina. Consensus was to not require three-years of audited financial statements before a lease is approved. It was noted that a financial statement would still be required. Consensus was to continue requiring a personal guarantee. Sixth Amendment to Clearwater Ferry Service, Inc. License & Agreement to provide pedestrian ferry service between Clearwater Beach & Sand Key while the Clearwater Pass Bridge is closed to vehicular traffic, at an estimated $80,000 This amendment to the Clearwater Ferry Service, Inc. License and Agreement will provide temporary free pedestrian ferry service between Clearwater Municipal Marina and the Community Sailing Center of Sand Key while the Clearwater Pass Bridge is closed to vehicular traffic. The bridge is expected to close for approximately 80 days starting August 10, 1995. The ferry service, free to citizens and tourists, will operate daily from 8:00 a.m. until 10:00 p.m. The Clearwater Ferry Service, Inc. will have backup boats available to ensure reliable ferry service. Each boat will be operated by a US Coast Guard certified captain and a fully trained mate. The ferry service will be fully insured, as required by the City, and will purchase fuel from the Clearwater Municipal Marina. Ferry service disruption caused by Acts of God will be considered “down time” and will not be charged to the City. Jolly Trolley trips will be coordinated at Clearwater Marina when the ferry service is operating. Citizens and tourists can park at the Sailing Center and use the ferry service. The Jolly Trolley will not serve Sand Key during the bridge’s closure. Under terms of this amendment, the Clearwater Ferry Service, Inc., will be paid $965 per day for the ferry service: 1) boats; 2) crew; 3) fuel; 4) maintenance; and 5) insurance. Upon learning of the contractor’s date of completion and discontinuance of the temporary ferry service, the City will inform the Clearwater Ferry Service, Inc. immediately. Funding for the ferry service for an estimated $80,000 will be provided by a third quarter budget amendment appropriating $80,000 from Bridge Revenue. Support for the proposal was questioned. It was noted the original plan included Jolley Trolley service on Sand Key to not overburden the limited number of parking spaces at the Sailing Center. Concern was expressed that the plan was not worth $80,000. A suggestion was made to impose a charge of $0.25 or $0.50 for the ferry ride. Assistant City Manager William Baker said neither the City nor Jolley Trolley staffs think service will be needed on Sand Key. An agreement was reached with the Radisson to use the northern part of their parking lot should the Sailing Center lot fill. Part of the Sheraton lot will also be available. It was noted residents on the south end of Sand Key will probably drive south and around the detour. Other Sand Key residents will drive their cars to the ferry. The hotels have vans to transport guests to the ferry. The Jolley Trolley would have overtime expenses to operate a trolley on Sand Key coordinated with the ferry’s hourly schedule. EN ENGINEERING C.O.#1 to 1995 Sidewalk Contract to MTM Contractors, Inc., Pinellas Park, FL, increasing the amount by $51,047.50 for a new total of $240,677.50, and approve a time extension of 30 days The purpose of Change Order #1 is to reduce flooding that reaches depths up to 12 inches during storms at the Eastland Blvd./Landmark Drive intersection. Stormwater drainage collects there from several acres of the surrounding Northwood Estates subdivision instead of being conveyed to existing stormwater retention areas west of Landmark Drive. Eastland Blvd. often closes for extended periods due to flooding. Concern was expressed that this would not solve the entire problem which the City caused. It was suggested the City dig out the ditch and stormwater retention area. City Engineer Rich Baier reported the City held two public meetings regarding this problem. In this area, Clearwater does not own the land but has easements. In the past, the City allowed the homeowners to install pipe and fill in the ditches. He indicated several homeowners do not want the ditch reopened or pond expanded including one with a structure illegally built in the easement. He said the consensus of the neighborhood was that the City has more pressing issues to address. Concern was expressed that flooding will move from one area to another. The Commission recessed from 3:05 to 3:20 p.m. Mr. Baker noted the retention pond and ditch were originally constructed by the developer in the 1970's. Because of algae problems in the shallow ditch, the City allowed pipes to be installed which created a loss of detention. He said it would be best to have water overflow into Mullet Creek instead of ponding in the intersection. Mr. Baier presented a plan to reclaim the retention pond’s capability of 50,000 cubic feet. Gabions will allow lateral water migration. Xeriscaping will be installed to relieve maintenance demands on owners. He noted the pond was designed to meet the needs of original development. New developments now also convey water. The planned pond will be five feet deep and 35 feet wide. Mr. Baier stated most of the property owners who expressed opinions said they did not want the pond reconstructed. Concern was expressed that the pond now floods consistently. Mr. Baier said the curbing plan will shed water away from the intersection to sheet across Enterprise to Mullet Creek. He said extending Landmark Drive will alleviate some flooding as the ability to store a larger volume of water occurs. He said when staff proposed the retention pond project, residents objected adamantly. It was noted the City’s easements would permit a ditch 50 to 75 feet wide and no homeowners want their backyards dug up. Mr. Baier suggested the sidewalk construction be the first step of a two-step solution. It was suggested that a total solution be realized. Mr. Baier recommended the project as presented but referred to resident opposition. Concern was expressed regarding flooding on Deer Run. Mr. Baier noted no habitable areas there flood. He said this project will help that flooding concern. Mr. Baker noted the design will carry most storms, but not all. Concern was expressed that Mullet Creek could handle added stormwater. Mr. Baier said that should not be an increased problem. He noted the Landmark extension will improve drainage. A video of the area was presented. Consensus was for staff to come back with a plan and the cost of a project that will address the entire drainage problems in this area. SW SOLID WASTE Joint Participation Agreement with FDOT to provide 50% reimbursable funding for the construction of 3 new hangars on Clearwater Airpark The Florida Department of Transportation (FDOT) has agreed to provide 50% reimbursable funding for the construction of three new hangars at Clearwater Airpark. The City must pay for the project, estimated to cost $600,000, to provide funding on a timely basis. FDOT has programmed incremental funding providing $75,000 in the State’s Fiscal Year (FY) 1994/95 and $100,000 in FY 1995/96. FDOT will endeavor to shift $125,000 into the FY 1995/96 budget to cover the balance of the construction funds required should FDOT funding not be in place by the desired construction date, hangars will be constructed in increments as funding is available. By the time the Florida Department of Environmental Protection (FDEP) permitting is accomplished, sufficient time should have elapsed to permit FDOT to provide their half of the project funding. Concern was expressed that Clearwater should not have to spend City money for the hangars and wait years for State reimbursement. Robert Brumback, Director of Solid Waste, said the State will reimburse the money when the construction meets State satisfaction. He stated money from other projects may be available to provide all funds immediately. He noted if the money is not reimbursed immediately, it can be borrowed from the central fund. CP CENTRAL PERMITTING Public Hearing & First Reading Ord. #5841-95 - Amending Ch. 29, relating to occupational licenses; (re tax structure and appendix A, Fees, Rates & Charges) Res. #95-52 - dissolving the Equity Study Commission On June 2, 1994, the City Commission adopted Resolution #94-11, establishing the Occupational License Equity Study Commission to study the City’s occupational license tax classification system and rate structure. Florida State Statute 205.0535 requires municipalities to reclassify businesses, professions, and occupations and establish new rate structures by October 1, 1995. The Equity Study Commission concentrated their efforts in two areas: 1) to determine and correct inequities in the current fee structure, with associated increases and decreases in fees, within the thresholds required by State Law and 2) to streamline and reorganize the fee structure. The fee structure was streamlined and reorganized. Fees were adjusted as allowed by State law. The annual revenue generated from the amended fees is estimated to be $1,490,743, a 9.6% increase above the $1,359,719.30 collected last fiscal year. Staff created a directory as a guide in determining business categories. Legal staff recommends moving the occupational license fee structure from Chapter 29 to Appendix A, Fees, Rates and Charges. Associated housekeeping changes are included in the ordinance. The resolution dissolves the committee now that their assignment has been completed and includes language thanking the Occupational License Equity Study Commission for their hard work. It was recommended that the resolution not be addressed until the ordinance is passed on second reading. The City Attorney indicated no conflict of interest exists for the Commission because the proposals are across the board. Concern was expressed that the fee schedule charges massage therapists $55 each and the massage establishment only $25. Sandra Glatthorn, Central Permitting Manager, indicated the committee did their best to make fees more equitable based on an old listing of occupation licenses. She noted massage therapists are licensed while repair mechanics are not. She agreed some inconsistencies exist but indicated changes would be difficult to accomplish before the October 1 deadline as each business in a category would first have to be interviewed to determine that the total increase would remain below 10%. Questions were raised regarding the rates proposed for insurance agents and companies. The City Attorney noted the rates can be increased by 5% in two years. She expressed high respect for the job performed by the committee. She indicated the task was not easy. OTHER CITY ATTORNEY ITEMS The City Attorney indicated an additional item will be added to Thursday’s agenda regarding Fisherman’s Wharf. She said they wish to enter into an agreement to be held harmless regarding the contamination on the property. She said the agreement will resolve the issue with the property owner. Business damages still must be addressed. City Manager Verbal Reports Florida League of Cities Convention The City Manager indicated the Florida League of Cities has scheduled their annual convention in Orlando from August 17-19, 1995 in Orlando. She noted a conflict with the August 17, 1995 Commission meeting. She requested Commissioners advise of plans to attend the convention. Trim millage meeting The City Manager noted the Trim millage must be reported to Pinellas County by July 12, 1995. A meeting to address Trim millage was scheduled for July 12, 1995 at 12:00 noon. Beach issues meeting A meeting to address Beach issues was scheduled for July 26, 1995 at 7:00 p.m. in Chambers. Beach Tower Mr. Baker distributed a simplified financial plan for a proposed beach tower. He proposed the City borrow $1-million to purchase part of the tower and become partners with Mr. Grogan. The partnership would borrow $750,000 to refurbish the tower. The loans would be paid from the partnership’s profits. He presented three possible scenarios with ridership averaging between 1,000 and 3,000 daily. With an average daily ridership of 2,000, Mr. Baker estimated a total gross income of $1.68-million would result in an annual income to the City of $602,500 after debt service and operating expenses. Additional income could come from leasing the City’s land to the tower. He said the key to a successful tower is a high pedestrian location. The tower would not compete with other beach businesses. He suggested tower income could be used to produce 10-minute nightly tourist related laser shows. He said money would need to be spent to x-ray the tower and for Post Buckley, the City’s Engineer of Record, to provide an opinion. Concern was expressed that the proposal is a gamble. It was suggested the proposal should not be a City venture and the City should not be partners with Mr. Grogan. It was suggested the only viable location for the tower would be on the bend on S Gulfview Blvd. It was noted the City may not have to invest money up front if it is willing to accept a lower annual return. It was suggested that income could be generated from sharing rental fees on the tower for antennae. Concern was expressed that the City not enter into risk ventures. It was suggested the City should not be considering a $1-million loan for the proposal when the City has many other needs. It was noted the ridership numbers may be inflated as estimates of interest may be unrealistic and rain days were not considered. Concern was expressed that a 350-foot tower is not appropriate for Clearwater beach. In response to a question, Mr. Baker estimated Adam’s Mark Hotel is 100 feet tall. It was noted area residents had stated they did not want a tower in the proposed location. It was suggested that the tower’s owner, Mr. Grogan, purchase land and erect his tower. As interest in the tower was divided equally, no further action will occur until a fifth commissioner is appointed. Nominees for City Commissioner vacancy It was requested the Commissioner’s nominees be sent to the Commission again. Consensus was that citizens wishing to nominate themselves must submit their intent in writing to the City Clerk before 6:00 p.m., June 13, 1995. Only those who have been nominated by the Commission or who have personally submitted their names will be placed on the list. Florida Power Franchise Ms. Rice said due to upcoming deregulation, major suppliers will be able to wheel transmission of electricity and distribute it. She predicted the face of power franchises will change. She reported staff is requesting a great deal of information from Florida Power. She said the City is willing to discuss a 15-year franchise that can be reopened every five years. Florida Power and the City are working closely together. Ms. Rice noted concern regarding Florida Power’s rates in comparison to other parts of the country. She said the City is also concerned that Florida Power maintain an office in Clearwater. Staff is looking at additional revenues by expanding the base and not by increasing the franchise fee. The Commission recessed from 5:19 to 5:23 p.m. Cable Franchise Ms. Rice said the cable franchise must be completed by the end of August 1995. She said Time Warner has indicated they will meet City demands if they can pass that expense on to cable customers. She said some requests were included in the original agreement and their expenses should not be “passed through.” She said the proposed agreement is for 10 years with renewals. The franchise fee will increase from 3% to 4% to 5%. She said the City and Time Warner are very close on most issues. She noted Time Warner wants to compete with other future cable providers such as telephone companies. The City is continuing to audit Time Warner to verify the true level of their revenues. She noted Time Warner has retained most of Vision Cable’s staff. In response to a question, Ms. Rice said she did not know if telephone companies must go through the same franchise negotiation because the law is new. If the City has the right to negotiate, the new GTE franchise agreement states a separate agreement will be negotiated for cable. Ms. Rice reported the City has a Request for Qualifications (RFQ) out for installation of a fiber optic system. Time Warner has indicated they may submit a bid. Ms. Rice said the organization that gets the fiber optic system in the ground first wins. She said it would be an impractical and expensive redundancy for two companies to lay fiber optic systems. She said citizens would realize real savings if the City owns the fiber optic system. Ms. Rice noted local telephone service soon will be deregulated and savings could approach 25%. Concern was expressed that the City is requesting taxes on the credit Florida Power provides for their management load program when a recent court decision ruled a franchise fee can only be charged on the amount of money collected. In response to a question, Ms. Rice indicated other cities have their own electrical system. She did not think City analysis will suggest Clearwater take over the City’s power needs but proper rates will be revealed. Ms. Rice said staff is reviewing if the cable company owes the City franchise fees based on cable advertising. The City Attorney said she will provide the Commission with an outside legal opinion draft regarding this. Other Commission Action Commissioner Johnson questioned the purpose of the Federal Railroad administration. It was explained that the administration is involved with Maglev magnetic transportation, the latest high speed technology. A Request for Proposal (RFP) has been issued in Florida for a high speed rail corridor. Commissioner Johnson questioned the request made in a recent letter from the National Conference of Christians and Jews. The letter requested permission to take money not spent on the first campaign and roll it over for the next campaign. The City Manager authorized the request. Commissioner Johnson referred to a letter from Mr. Transmission regarding a bid to provide the City with services. The City Attorney will forward the Commission a copy of her response. Commissioner Berfield questioned if a notation should be made that Work Session minutes are not approved by the Commission. The City Attorney said such notation is not required based on Commission rules. Commissioner Berfield submitted to the City Manager a formal complaint she had received at home regarding the Police Department. Commissioner Thomas referred to a letter from David Campbell listing a series of recommendations to improve C-View 35. Commissioner Thomas requested staff expedite some suggested improvements. Commissioner Thomas referred to a request from the owners of the Marina restaurant who wish to sell packaged alcoholic beverages. He requested an explanation regarding why this request has been denied. Mayor Garvey referred to recent criticism regarding C-View 35. She noted staff submitted a report regarding complaints. After reviewing the report, the Mayor said she felt the City has the right kind of people running the program. The City Manager said staff has been trying hard to make improvements. The Mayor said the station has come a long way considering the size of the staff. Adjourn The meeting adjourned at 5:49 p.m.