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08/14/1995 CITY COMMISSION WORK SESSION August 14, 1995 The City Commission of the City of Clearwater met Monday, August 14, 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 William Justice 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. Twelve service awards were presented to City employees. The Commission recessed from 1:11 to 1:23 p.m. to meet as the Community Redevelopment Agency and Trustees of the Employees Pension. IM INFORMATION MANAGEMENT Purchase of 2 high speed laser printers & installation for Utility Building to Dynamic Solutions International, Englewood, CO, for $39,380; authorize lease/purchase through City agreement with Barnett Bank The City's approximately 45,000 utility bills and reminder notices per month are currently printed on two 300-line-per-minute printers installed in July 1990 that also print all utility billing system reports. Despite excellent maintenance, the escalating number of printer breakdowns has resulted in frequent interruption of bill production. The new printers' capability of printing postal bar codes will result in a postage saving of $860 per month. The City will be able to customize bills more easily because the printers use standard single sheet paper stock rather than continuous feed. The printers can duplex. The increased speed will reduce the time spent printing bills from three hours to one hour daily. The Training Technician will spend that time training staff and supporting the Enterprise Network. Two printers are recommended for production speed and redundancy to address the critical importance of bill production. Once the printers are added to the network in the Municipal Services building, they will be available to all users of the Enterprise Network for any large volume reports. A 2,000 sheet paper input bin, additional memory, and a disk to handle charts and graphics have been added. Additional costs include yearly maintenance, paper and consumable supplies. At least one of the two current printers will remain in use to print Utilities reports. Information Services is working with the line printer vendor to determine the best way to continue providing the ability for Utilities to print a box of wide paper per day. Capital Improvement Project 315-94731 Utilities printer replacement includes funding for the lease purchase of these printers. Annual debt service costs of approximately $8,968 are included in the Finance Department/Utility Customer Service Program Fiscal Year 1995/96 recommended operating budget. It was noted many items scheduled for purchase after October 1, 1995, are being ordered now. The City Manager indicated staff will cut a purchase order if the City Commission approves the purchase. Concern was expressed regarding the purchase order should the budget not be approved. The City Manager said an appropriation clause is included in every City contract. EN ENGINEERING Public Hearing - Vacating a portion of North/South alley north of Pierce St., between Ft. Harrison Ave. & Osceola Ave. (Peace Memorial Presbyterian Church, V95-10) The applicant requests to vacate the southerly 146.58 feet of the 28-foot paved north/south alley running north off Pierce Street between S. Ft. Harrison Avenue and Osceola Avenue, platted as Division Street in Block B, John R. Dave Subdivision. The applicant wants to fence off the paved alley to prevent vehicular traffic from endangering children who attend the church’s nursery. The City has an existing natural gas line and sanitary sewer main located in the alley. Engineering Services objects to this vacation since the public uses the alley to reach the Pinellas County Metropolitan Planning Organization and Utilities Department. The County’s utility bill payment drop box is accessed from the alley. City Solid Waste trucks use the alley to access a dumpster between the church school and County building. All other City departments/divisions concerned with this request have reviewed the petition and concur with comments made by Engineering Services. It was questioned if the utility bill drop could be moved and other listed problems resolved. City Engineer Rich Baier said other concerns include adding traffic to Alternate US 19 (Ft. Harrison Avenue). It was questioned if a problem existed regarding the children and if staff could offer any suggestions. Mr. Baier said staff had no suggestions at this time. It was noted the County building guard directs overflow parking to the church lot. In answer to a question regarding Clearwater's liability should a child be struck by a vehicle in the alley, the City Attorney said the City's liability would not be based on the alley's location. It was suggested a solution including adults and a mechanism could be devised. The effect of approving the variance was questioned. Mr. Baier reiterated additional traffic would be funneled onto Alternate US 19. He said internal circulation would have to be provided for access to the garbage dumpsters and pedestrian access would be interrupted. Concern was expressed regarding underground pipes. Mr. Baier indicated a blanket easement would have to be retained. Contract for Hampton Road Widening (Gulf to Bay Blvd. to Drew St.) to R. E. Purcell Construction Co., Inc., Odessa, FL, for $588,473.97 This project proposes the widening of Hampton Road to a standard three lane urban section with connections to Gulf-to-Bay Boulevard (SR 60) and Drew Street. The existing narrow two-lane roadway will be widened to conform with provisions of the Development Order for the development of Park Place. The project includes construction of a stormwater collection system, replacement of the existing 12 inch water main and construction of a stormwater treatment facility on the former Seabolt property. Funding for the project is from impact fees paid by the Park Place developers. An addition to the check list was recommended to include contacting all impacted businesses. Mr. Baier indicated both affected businesses have been contacted. He said the roadway will be maintained according to established traffic standards during construction. He stated the City worked hard to obtain required right-of-way. It was suggested the check list be maintained so the City's project does not unduly interrupt impacted businesses. Memorial Causeway Feasibility Study The City Commission directed staff to initiate a preliminary design of a replacement bridge for the current Memorial Causeway Bridge. The current lanegage and bascule design negatively affect current vehicular demands and economic impacts, resulting in the functional obsolescence of the current bridge. The preliminary design began when the City contracted HDR Engineering, Inc. to aid the City in selecting feasible corridor alignments and evaluating various bridge types by comparing low-level and mid-level bascule spans with fixed span bridges. The report represents hours of data collection, planning and design, two public workshops, and meetings with the Florida Department of Transportation (FDOT), the CRA and Metropolitan Planning Organization (MPO). The City Commission has indicated a preference for the Pierce Boulevard alignment and requested the City Engineer come back with a revenue analysis. Revenue sources such as tolls, bond issues, and State and Federal funding were reviewed and presented. It was indicated Island Estates' residents have voiced opposition to a Project Development & Environmental Study (PD&E) as the study is quite expensive and does not guarantee the bridge will qualify for State or Federal funding. It was noted a PD&E is required to qualify for other State internal funds that may be available. Mr. Baier recommended approval of a PD&E noting if it is not done, the City would "forever close the door" to funding from the State and Federal level. He noted savings of approximately $400,000 to reduce the study to a State Environment Impact Report (SEIR) would be insignificant when compared to what the City could save with funding from other sources. He estimated the preliminary design would take a minimum of a year and would be followed by the permitting process. It was questioned if the cost of bridge construction could qualify for local tourist taxes. Mr. Baier said that may be a source to consider. He indicated the Governor could include a special appropriation in the budget and noted the bridge has regional significance. A listing of all sources of money was requested along with the odds of receiving those funds. Mr. Baier suggested taxes could be increased or a fuel tax could be considered. The City Attorney indicated the State permits the collection of a fuel tax within established limits and with State authority. Mr. Baier suggested a special assessment could be imposed or tax district could be established. He indicated the City could attract funding from other parties including special appropriations, Pinellas County or the Florida Department of Transportation (FDOT). He said impact fees could be used but noted most have been accounted for in the budget. He indicated tolls could be collected and suggested bonds could be issued and a debt service recovered. It was stated the MPO has budgeted its resources through 2000 and only the top five projects may be funded. It was felt Clearwater has little chance of receiving funding from them. It was noted Penny for Pinellas will soon expire and doubts were expressed that its renewal would pass. Pessimism was expressed that the bridge project would attract State or Federal funds. An opinion was offered that it was foolish to spend $400,000 for a PD&E when the odds are against the City attracting additional funds. It was recommended the City establish a toll of $0.25 for City residents and those who work on the beach and $0.50 for non-residents. It was suggested the bridge would earn $4.77-million per year, over $90-million in 20 years, and provide the City with a strong cash flow. It was recommended the City take a loan of $40-million to $45-million through a bond issue and use the proceeds to fund central core redevelopment including the bridge, beach parking garages, cuts in the causeway for improved harbor water flow, removal of all parking meters, a reduction of parking lot rates and construction of a new downtown lake. It was indicated the cost to the user would be modest. It was noted the City Commission also needs to address the expense of maintaining the new bridge. It was questioned if the toll could be continued once bridge construction costs are covered. Concern was expressed that a PD&E may or may not be a good gamble. It was noted FDOT only wants to repair the bridge. Concern was expressed that tolls are not user friendly and would create more problems than they solve. It was suggested other avenues of funding be pursued. The City Manager said staff needs to research if the bond could cover projects besides the bridge. It was suggested ad valorem taxes could be considered. Opposition to that suggestion noted the City's manner of collecting funds has evolved to user fees. It was agreed that none wants to raise taxes. It was proposed that a gas tax may be a viable solution and that a PD&E should be approved. It was noted many do not believe a new bridge is needed. Mr. Baier said no one disputes the bridge is functionally obsolete. He indicated most State funding currently supports replacement of structurally obsolete bridges. Concern was expressed the toll would cost beach residents $185 per year for only one daily trip to the mainland. Mr. Baier indicated staff's analysis focused on a one-way toll. The City Manager indicated the bridge would be paid for in 21 years using one-way tolls. Opposition to one-way tolls was expressed. In answer to a question, Mr. Baier stated the bridge could be operational within four or five years if the City went forward with local funding, paid a premium to expedite the project and no permitting problems occurred. The City Manager suggested if the Penny for Pinellas is renewed, those funds could pay for the bridge and the City could defease its bonds without ever initiating a toll. It was noted further discussion of this issue will occur at Thursday's meeting. CP CENTRAL PERMITTING (Cont'd from 07/20/95) Public Hearing & First Reading Ords. #5741-95 & #5742-95 - Land Use Plan Amendment to Commercial General for property located at 509 Bayview Ave. and 508 Meadow Lark Lane, Town of Bay View a/k/a McMullen Bayview Sub., Blk. 3, part of Lots 1 & 2, and S 1/2 of vacated street abutting N side of lots; and CPD Zoning for property located at 509 Bayview Ave., 508 Meadow Lark Lane, and 3009 Gulf to Bay Blvd., McMullen Bayview Sub., Blk 3, part of Lots 1 & 2 and Bayview City Sub., Lot A, and vacated street r-o-w between Lot A and Lots 1 & 2 of McMullen Bayview Sub.; LUP 0.70 acres m.o.l., Rezoning 1.02 acres m.o.l. (R. Roy Meador, LUP93-43, Z93-54) City Attorney Pam Akin distributed a memorandum regarding her recommendations concerning rezoning hearings and quasi-judicial procedures. She concluded the City's rules should be modified to meet the procedural requirements of current case law concerning rezoning hearings. Ms. Akin said Commissioners could ask questions during any portion of a presentation and of any witness or speaker. She recommended defining an interested party as anyone required to be noticed directly of the pending action (within 200 feet). Ms. Akin further recommended the time permitted under current rules be expanded to give both sides 20 minutes. She noted only the City Commission can interrupt during presentations. A question was raised regarding how the Commission would know is someone was within the 200 foot range and therefore, an interested party. Ms. Akin recommended requiring those wishing to participate be required to notify the City before the hearing. She said the 20 minute time frame she suggested could be divided evenly between the interested parties. It was suggested the proponents present their case following the applicants' presentation. Ms. Akin recommended hearing all the applicants' points at one time to avoid a back and forth process. At the point when witnesses may be questioned, Ms. Akin recommended the questioner be stopped if the question resembles a speech. It was suggested questions be limited to one minute. The City Manager noted attorneys and interested parties will be able to ask questions. Ms. Akin recommended using this procedure for the Meador rezoning because of the known opposition in this case. She said the procedure will permit the petitioner and opposition to present their positions. She indicated she discussed the procedure with the attorney for the petitioner, Harry Cline, and the attorney representing an interested party, John Hubbard. Ms. Akin said no legal definition defines the term "interested party." Concern was expressed that opposition outside the "interested party" perimeter could help finance the "interested party's" legal expenses. Consensus was for questions to be limited to one minute, not be repeated and the opportunity to question would rotate among interested parties. The Commission and staff also would be permitted to ask questions. Consensus was to limit answers to three minutes. Limiting the definition of "interested party" to those with property within 200 feet was questioned regarding the Meador case. The City Attorney said the definition should not be case specific. She noted public comment in opposition would be permitted. Concern was expressed that 200 feet is too small an area. It was noted the majority of cases are not controversial. The City Manager said it would be a problem to identify a group beyond the 200 foot limit because no one beyond that distance is notified. Ms. Akin said if the area of designation for "interested party" was expanded, the time allotted each member of the opposition would be cut. It was suggested the 200 foot limit may be acceptable if a representative can speak for the "interested party." Concern was expressed that opponents be able to use their full time limit even if the applicants do not. The Commission recessed from 2:29 to 3:16 p.m. The City Manager reiterated a representative would have to share the allotted time with other "interested parties." It was felt a time frame should be established. Consensus was to limit presentations, including testimony and exhibits, to twenty minutes, comments to three minutes and rebuttal to five minutes. Consensus was to include a summary by the opposition after rebuttal witnesses are questioned. The City Attorney advised the City Commission to waive their current rules on Thursday and work to establish new rules after that. Senior Planner John Richter distributed a revised page three. The City Manager indicated the City Commission would view a video of the staff presentation made by Central Permitting Director Scott Shuford during Thursday's meeting. In answer to a question, Mr. Richter indicated the proposed development does not violate the City's comprehensive plan. The City Attorney said that is one of the issues the City Commission needs to decide. It was noted a report regarding the possible rezoning of the entire area had not been completed. Concern was expressed the current process for the site plan allows applicants endless changes until the plan is minimally acceptable. It was noted a great deal of staff time is used on some cases for only one paid fee. The City Attorney agreed the process needs clarification but she did not think abuse had occurred. She said by its nature, the site plan process is flexible and can be amended. She recommended the amendment process be more formal. It was suggested the entire process be reviewed to ensure fees paid reflect staff effort. A recommendation was made to permit applicants to come back at least once with a revised site plan. Consensus was to accept the following quasi-judicial procedures for rezoning hearings: 1) Staff states their recommendation and summarizes their reasons for it; 2) Applicants present their case including testimony and exhibits (twenty minutes); 3) Witnesses may be questioned by the City Commission, staff or interested parties. Applicants also may question staff regarding the basis of their recommendation (each question not to exceed one minute; answer not to exceed three minutes); 4) Proponents of the application may speak (three minutes per speaker); 5) Interested party representatives may present their case including testimony, exhibits and witnesses. Interested parties in opposition will have time equal to the applicant. Time will be divided among all interested parties in opposition (twenty minutes); 6) Public comment in opposition (three minutes per speaker); 7) Applicants may call witnesses in rebuttal (five minutes per witness); 8) Rebuttal witnesses may be questioned (each question not to exceed one minute; answer not to exceed three minutes; 9) Conclusions by opposition (five minutes); 10) Conclusions by applicants (five minutes); 11) Discussion and decision by City Commission. Receipt/Referral - LDCA to modify restrictions on vending machine signage (LDCA 95-17) On July 31, 1995, the City Commission directed staff to prepare a Land Development Code amendment that would exempt vending machines from City sign code regulations. Current ordinances treat vending machines as attached signage as part of a comprehensive approach to regulate the appearance of vending machines. This provision has complicated code enforcement efforts and could cause a number of properties to face “double jeopardy” under the sign amortization program. Some properties, in compliance with the 1992 City sign code requirements, would fall out of compliance if required to adhere to vending machine signage requirements adopted in 1993. The ordinance would exempt vending machines from signage requirements but would continue to require them to adhere to setback and other placement requirements as provided in Section 28.10(4) of the City Code. The ordinance needs to be reviewed by the Planning & Zoning and Development Code adjustment Boards. Concern was expressed a merchant could line 50 vending machines along an outside wall. Mr. Richter indicated he would check the code's language and if a problem exists, it will be addressed separately. CM ADMINISTRATION Pension Ordinance Major changes include: 1) establishing the Plan as IRS qualified so employees contribute to the Plan on a pre-tax basis; 2) increasing the employee contribution from 6% to 8%; 3) establishing the City’s minimum contribution at 7% of covered employee salaries; 4) increasing the benefit computation formula from 2.5% for each year of covered service to 2.75% for each year; 5) decreasing the minimum job-connected disability from 75% to 66-2/3% of the employee’s average salary for the last five years of service; 5) establishing a process for reassignment of employees who are disabled to the point they cannot perform their job but who can perform useful, meaningful and available work in another position within the City (including a tier system for police and fire personnel); 7) changing the Pension Advisory Committee from a three-person employee-elected Committee to a seven-person Committee comprised of three employee-elected members, three City Commissioners or Commission appointees, and a seventh non-employee member selected by the other six Committee members; 8) providing that the Pension Trustees are the City Commission and providing for final approval authority by the Trustees; 9) providing an early retirement provision for employees with ten years of covered service who reach 65 years of age; providing employees with optional benefit methods on an actuarially equivalent basis; and 10) eliminating the $300 minimum pension. On June 29, 1995, the spokesperson for the Union coalition indicated they felt the Plan’s language was still being negotiated. The City felt negotiations were complete and mutual discussion was directed at ensuring all concepts agreed to were included in the amended Plan. On July 7, 1995, a draft of the amended Plan was completed. On July 28, 1995, staff met with the Union coalition for further input. Several modifications to the draft proposal were made as a result of that meeting. The City Manager reported nine out of ten staff members, including herself, are affected by changes in this plan. Deputy City Manager Kathy Rice reviewed the proposed changes. She referred to a change regarding staff assigned to hazardous duty who go to another job due to disability. They can retire under rules regarding hazardous duty that allow retirement after 20 years regardless of a person's age. It was noted the level of disability is based on an average of the last five years' base pay. Ms. Rice said the City did not count the 15% premium paid working paramedics as part of their base pay. Ms. Rice said Union representatives had expressed another concern regarding who will make the final decision regarding pension approval. The City Commission thinks the Pension Trustees should make the final decision and Union representatives think the Pension Advisory Committee (PAC) should be granted that responsibility. Ms. Rice reported some changes requested by the City Commission include a reduction in the minimum job-connected disability from 75% to 66 2/3%, the cancellation of benefits for dependent children of disabled workers, and the denial of benefits for pre-existing conditions. She said retirement at age 65 is permitted for those who have completed at least ten years of City service. Human Resources Director Mike Laursen reiterated employees must work 10 years to receive a pension benefit. It was questioned if employees can opt to join the Social Security fund instead. Ms. Rice said only exempt employees or those rejected by the City's doctor have that choice. She said since ADA legislation passed, all who are fit enough to hire have qualified to be part of the City's pension plan. In answer to a question, she reported many applicants for City positions are older than 60 and many have already worked under Social Security for at least ten years. She also indicated employees will contribute 8% of their salary and the City will contribute a minimum of 7% to the pension plan. In reply to a question, Ms. Rice said staff contributions earn 5% simple interest for those who withdraw their contribution upon separation from the City instead of remaining in the plan. Concern was expressed that the City's contribution does not revert to the employee. Ms. Rice noted the pension plan is not made up of individual IRA's. The benefit is defined, not the contribution. The City's contribution is for the benefit of all, not one particular person. Ms. Rice said it was important that all issues are addressed before first reading. The City Attorney indicated the question regarding the pension plan is scheduled to be included on the October ballot. In answer to a question, Ms. Rice said the PAC will make recommendations to the Pension Trustees who will have the final say. Currently, the PAC makes final determination. It was reported the Unions may ask for a continuance of this ordinance because of strong Union opposition. The City Manager said the Unions have met but she had not been advised on the outcome of the meeting. Ms. Rice argued that City management and the Union had earlier negotiated these concepts. In answer to a question, the City Clerk reported a special meeting could be held for the first reading. Concern was expressed regarding the Unions' objections to concepts they negotiated. Res. #95-65 - Approving a new Community Redevelopment Plan for the Community Redevelopment area located in the downtown area of the City A plan with a clear vision for downtown has been developed. Downtown desires to be: the traditional Town Center - a small scale place that meets Clearwater’s needs as the government center, with support commercial and retail use; an entertainment district; a new interior lake and park; and a new residential focus and amenity structure built around Coachman Park. On June 14, 1995, the CRA Board of Trustees unanimously approved the plan with two amendments: 1) the Memorial Causeway Bridge will use the Drew or Pierce street alignment and 2) commercial/entertai ment at Cleveland and Missouri Streets (East End) will be designated mixed-use to allow the zoning and construction of residential, commercial and entertainment projects. On July 18, 1995, the Planning & Zoning Board unanimously endorsed the downtown redevelopment plan. Based on a suggestion, CRA Executive Director Peter Gozza indicated he would make a presentation Thursday night. It was questioned if the City Commission will retain the right to change components of the plan. Mr. Gozza said this plan differs greatly from earlier proposals and includes some catalyst projects. Large blocks of the district will allow many different uses. One land use and one zoning district are planned for the downtown lake. He said the City Commission can amend the plan anytime in the next 20 years. Concern was expressed that no figures were included. It was indicated much of the plan will be market driven. CLK CITY CLERK Direction re Town Meetings The City Clerk requested the City Commission provide direction whether they wished to continue holding Town Meetings in the current format and time frame. It was felt Town Meetings are not productive because few residents attend them. It was suggested that Town Meetings be scheduled to address specific problems. Another suggestion was to expand the "Know your Local Government" show to a live call-in show on C-View 35. It was noted that will work better once the studio is completed. Concern was expressed few residents are aware that Commissioners appear on Channel 9. A suggestion was made to schedule Town Meetings on C-View 35 twice a year, to advertise them well, and to open them to the public for questions. The City Manager indicated the City will have that capability soon. The consensus was to discontinue the four regularly scheduled Town Meetings, to schedule a Town Meeting if a major community issue needs to be addressed and to broadcast a call-in show with the Commissioners once the technology is available. It was recommended that a "Know your Local Government" show be broadcast on C-View 35. It also was suggested the Commission continue appearing on Channel 9's "Know your Local Government." City Manager Verbal Reports The City Manager reported the City needs to renew the franchise with Time Warner Entertainment-Advance/Newhouse. Ms. Rice reported the City is increasing the franchise fee from 3% to 5%. It was questioned if the City can request the cable company not to pass on the increase to residents. Ms. Rice said staff could, but felt the cable company would be obligated to pass on the increase. It was recommended this item be agendaed for Thursday, August 17, 1995. The City Manager stated it had been reported to her that a City employee had indicated to at least one Commissioner that staff had to notify the City Manager within one hour of having contact with Commission members. The City Manager stated no such directive had been issued. She said she did request Department Directors to inform her regarding issues that may be raised. She said she was insulted than an employee would impugn her relationship with each Commissioner. Commission Discussion Items a) Solid Waste Collection Services in unincorporated Pinellas County The City Attorney indicated she had a legal concern regarding if the City can bid on all Solid Waste services. She said the City can bid on recycling services. Concern was expressed regarding expansion of the City's recycling services because of possible market fluctuations. The City Manager said if bidding is possible, the City would enter into an Interlocal Agreement with the other municipality. b) Beach Tower JRG Marketing has proposed a land lease agreement with the City stating: 1) Lessee will erect a 335 foot Willy Buhler 64 passenger Sky Tower with appropriate loading facilities, ticketing and waiting area; 2) Lessee will establish operating hours compatible with existing operating hours of neighboring commercial interests. As demand increases, these hours may be extended; 3) Lessee will provide required workmen's compensation and $10-million single limit liability insurance in full force at all times from initial start of construction, naming the City as additional assureds if desired; 4) Lessee will allow placement of appropriate name or logo copy designed by the City to be affixed to the tower; 5) Lessee will begin engineering studies immediately and construction within 30 days after receipt of all permits applicable; 6) Qualified technicians will inspect the tower daily and maintain its condition and appearance at all times; 7) Lessee will provide a bond for $175,000 to cover disassembly and removal of the tower from City property in event of business failure. This obligation will be at Lessee's expense for one year from date of completion of construction. A one year extension can be negotiated; 8) Lessee will provide $100,000 working capital until cash flow dictates this amount unnecessary; 9) Lessee will provide the required Federal Aviation Agency permit; and 10) Lessee will provide adequate staff, clothed in distinctive logoed clothing and will maintain the entire structure and premises in the highest standard possible. The Lessee will remunerate the City in the following amounts: a) $48,000 per annum minimum guarantee against following percentages, whichever is greater; b) 8% of gross receipts up to $1-million per year gross; c) 12% of gross from $1,000,001 through $5-million per year gross; d) 20% of gross receipts from $5,000,001 and up per year. Five years after the first day of operation, JRG Marketing proposes remuneration as follows: 1) $60,000 per annum minimum guarantee against the following percentages, whichever is greater; a) 10% of gross receipts up to $1-million per year gross; b) 14% of gross from $1,000,001 through $5-million per year gross; and c) 20% of gross receipts from $5,000,001 and up per year. Fifteen years after the first day of operation, JRG Marketing proposes remuneration as follows to remain throughout the lease term: 1) $72,000 per annum minimum guarantee against the following percentages, whichever is greater; a) 13% of gross receipts up to $1-million per year gross; b) 17% of gross from $1,000,001 through $5-million per year gross; and c) 25% of gross receipts from $5,000,001 up per year. Payment will be made quarterly and accompanied by computer printout of the quarter's activity on a daily basis. Initial payment date will be due 90 days after the first day of operation. Lessee will allow the City complete access to its financials upon 72 hours notice. JRG Marketing proposes the City: 1) As Lessor provide a 30 year lease with option to renew predicted upon negotiated upgrades to the tower; 2) As Lessor provide adequate space to erect the tower, loading dock, ticket sales and machine room. (Space needs estimated to be 60 feet of frontage and 80 feet deep). Space to the east of the Coastal Construction Control Line (CCCL), west of the street sidewalk, south of First Street and north of the Adams Mark Hotel; 3) Lessor to provide landscaping to be maintained by Lessee; 4) Lessor will provide at no cost to Lessee five staff parking spaces immediately adjacent to the tower and appropriately marked as such; 5) Lessor will allow Lessee spot promotions on C-View 35 at no cost except production costs of camera ready video tapes; 6) Lessor will provide all required local permits as quickly as possible and will assist Lessee in securing all said permits and a detailed list of required permits will be furnished the Lessee within 10 days after signing the lease; and 7) Lessor will allow sales of tower logoed tee shirts, miniature model towers, post cards, film and sunglasses from this facility. Sales of these items will be factored into tower gross and appropriate percentages paid to the City. No other merchandise will be marketed without the express written consent of the City. The City Manager reported the City Commission's original concern was the establishment of a partnership. She said the new proposition is different and proposes a land lease for a small portion of beach front. She reported the City's 1994 annual income was $77,000 from the pier pavilion and $91,000 from the Hamilton lease that included renting beach umbrellas. It was suggested the tower be erected next to the south pavilion where local business would see increased traffic. Assistant City Manager William Baker suggested locating the tower along Gulf Boulevard where high pedestrian traffic occurs. The tower's parking needs were questioned. Mr. Baker said the City would lose approximately 12 spaces to provide space for the tower and 5 spaces for tower management. The City Manager reported the tower will require a 60 by 80 foot space. Concern was expressed the foundation of the building be sufficient for the structure to withstand hurricane force winds. Mr. Baker said the City's consultants would look at the tower's design, etc. to ensure the City everything was safe regarding the structure's protections against wind and storms. It was questioned if the City would assume any liability for accidents. The City Attorney said the City would have no liability and a $10-million policy will be in place. She said if a major accident occurred, the City probably would be included in the suit as landlord. Mr. Baker presented a video to demonstrate the tower in operation. He said the tower will be all white and will not have a logo on it. No concession stand will be located at the base. He said the gondola is actually an Otis elevator with the same safety features. It was questioned if the renewal of a 30 year lease would need to go to referendum. The City Clerk indicated 30 year leases can be renewed for 30 years without referendum. The projected income to the City was questioned. Mr. Baker estimated the City would earn $164,000 per year for the first five years and $190,000 per year for the next five. It was felt the option to renew a 30 year lease should belong to the City and not the lessee. It was suggested the agreement be for a simple 15% of the gross beginning with dollar one with no minimum. It was recommended that the lease provide an option to extend near the end of the lease. The City Attorney reported a real estate attorney, John Carassas, will join staff on September 18, 1995. She said Bob Barnes is helping draft the lease. She indicated it was necessary to be extremely careful and cover all bases. It was felt the City should not be a partner in the operation. The recommendation for a simple 15% of the gross was felt to be a good suggestion. It was suggested a minimum payment be stipulated. Concern was expressed that a minimal number of parking spaces be lost. It was suggested the tower be treated the same as any other private enterprise with JRG Marketing responsible for obtaining all required permits and meeting all zoning requirements. A recommendation was made for the lease not to exceed five years with renewals. It was suggested that providing landscaping would be acceptable. Hope was expressed that a gift shop would not be necessary. It was recommended JRG Marketing provide a bond to cover the disassembly of the tower. A suggestion was made the term of the lease should be between ten and fifteen years as long as it is a profitable venture for the City. It was felt the proposal would be a positive public/private venture. Mr. Baker said he would try to minimize the loss of parking. It was noted a laser show on top of the tower had been recommended. Mr. Baker indicated JRG Marketing was amenable to providing that. It was recommended that the tower's revenue include antennae earnings. It was felt JRG Marketing may not be able to afford less than a 30 year lease. Concern was expressed that a tower should not be located on the beach. Mr. Baker said the proposed plan is to orient the tower toward the sidewalk on existing asphalt. He said JRG Marketing had proposed a small gift shop offering only souvenirs related to the tower. The majority of the Commission directed staff to proceed with negotiating an agreement to erect a tower on Clearwater beach. c) Downtown Partnership roles It was agreed to discuss these roles at the next Work Session. It was requested that everything already established be listed. CIP Budget The City Manager noted the only parts of the CIP Budget left to discuss are the Enterprise Accounts and Utilities. She recommended discussing these items for an hour at the end of the September 5, 1995 Work Session. She requested Commissioners bring Volume 2. Other Commission Action Commissioner Johnson requested an explanation of Economic Development Director Alan Ferri's memorandum regarding foreign investment trade. The City Manager said Mr. Ferri has been conducting seminars for local businesses regarding how to tap into foreign markets. Ms. Rice stated two experienced loan officers are available for advice. Commissioner Johnson congratulated staff for obtaining the $50,000 front for the Cooper's Point project. Commissioner Johnson noted three City Commissioners have met with Pinellas County Commissioner Steve Seibert regarding the Convention and Visitors' Bureau. He reported he, too, had scheduled a meeting. Commissioner Johnson felt C-View 35 is doing a good job. He did not understand why one individual has direct influence over the operation. He said the station has been in business less than eight months and always receives positive comments. He noted only one individual complains about it. He thanked the C-View staff. The Mayor felt constructive criticism can be helpful. Commissioner Berfield felt that was what the concerned citizen had been trying to do. Commissioner Berfield referred to a letter from the Fireplace Restaurant regarding the Harborview's third floor restaurant. Ms. Rice said the City received their proposal on July 17, 1995. She indicated some of the information in the letter is incorrect. Ms. Rice said she would provide the Commission with copies of that proposal if requested. Commissioner Thomas said he assumed Ms. Rice would report to the Commission the facts of the situation. He recommended continuing negotiations with those who had submitted a timely proposal. Ms. Rice indicated staff had returned calls to the representatives of the Fireplace Restaurant. Commissioner Thomas referred to C-View 35 and questioned the status of the advisory board that was scheduled for creation. Ms. Rice said a charter is being created regarding how they operate. She said the advisory board would be developed after focus groups were surveyed regarding production. Commissioner Berfield questioned what status the board would have. Ms. Rice suggested it begin as a committee and develop into an advisory board. Commissioner Berfield recommended the City Commission appoint members. The Mayor suggested the committee report to City management. Commissioner Berfield recommended the board report to the Commission so the Commission remains informed. The City Manager suggested a start up committee have more casual report requirements. She said staff would recommend some names. Mayor Garvey referred to a letter that included an option to deal with drainage problems near the intersection of Enterprise and Landmark. Commissioner Berfield said she forwarded that information to the City Engineer for comment. Mayor Garvey referred to the previous City Commission discussion regarding an increase in Commission salaries. She indicated she attempted to write a memorandum regarding her support of the issue. She said she would not bring it up again. Adjourn The Commission adjourned at 5:16 p.m.