Loading...
09/15/1997CITY COMMISSION WORK SESSION CITY OF CLEARWATER September 15, 1997 Present: Rita Garvey Mayor/Commissioner J. B. Johnson Vice-Mayor/Commissioner Robert Clark Commissioner Ed Hooper Commissioner Karen Seel Commissioner Michael J. Roberto City Manager Kathy S. Rice Deputy City Manager Bob Keller Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia O. Sullivan Board Reporter The meeting was called to order at 9:00 a.m. at City Hall. Service Awards Seven service awards were presented to City employees. The Commission recessed from 9:06 to 10:27 a.m. to meet in attorney/client session regarding Anne-Marie Cheroke Lindsey as guardian of Paul W. Gilfoyle versus the City and from 10:28 to 10:56 a.m. to meet as the CRA (Community Redevelopment Agency). FN FINANCE Purchase of property, casualty, liability, workers’ compensation, & flood insurance coverage for FY 1997/97, not to exceed $900,000 City Administration, through the Risk Management Division of the Finance Department, recommends the purchase of insurance coverage for FY (fiscal year) 1997/98: 1) Excess Property: a) Layer 1 - $10-million - Westchester Fire - $169,200 premium; b) Layer 2 - $15-million - Royal Surplus - $162,000 premium; c) Layer 3 - N/A; and d) Layer 4 - $45-million - USF&G - $55,000 premium; 2) Miscellaneous Coverage: a) Clearwater Pass Bridge - Royal Surplus - $45,000 premium; b) Crime & Dishonesty - Hartford - $5,439 premium; c) Boiler & Machinery - Kemper - $5,894 premium; d) Marina Operators - Hartford - $12,850 premium; and e) Underground Fuel Tank Liability - Comm. & Ind. - $11,914 premium; 3) Insured Risk - Flood Insurance: a) Civic Center/Library - Bankers - $4,150 premium; b) Waste Water Treatment Plant on Gulf-to-Bay Boulevard - Bankers - $2,591 premium; c) Clearwater Beach Recreation Complex - Bankers - $2,839 premium; d) Marina Offices - Bankers - $3,982 premium; e) Fire Station on Belcher Road - Bankers - $4,703 premium; f) Fire Station on Mandalay Avenue - Bankers - $2,497; g) Clearwater Beach Police Station - Bankers - $692 premium; h) Waste Water Treatment Plant on Harbor Drive - Bankers - $449 premium; and I) Clearwater Sailing Center - Bankers - $690 premium; and 4) Insured Risks - Ranger - $266,494 premium for $5-million coverage, $500,000 deductible: a) Excess Auto; b) Excess General Liability; c) Excess Public Officials; d) Excess Police Professional; and e) Excess Workers Compensation (statutory coverage only). In response to a question regarding Excess Property, Risk Manager Leo Schrader said only 3 layers of coverage currently are available. Hartford Insurance covers excess property. A diminished level of coverage is not proposed. A new policy covers replacement of Clearwater Pass Bridge. In response to a question, Mr. Schrader said Accordia’s premium covers many items. Staff was commended for this proposal. In response to a question, Mr. Schrader said the maximum flood insurance coverage available per building is $500,000. Agreement with First Union Capital Markets Corp. for City’s Financial Advisor On May 5, 1997, Raymond James & Associates signed a 3-year contract to be the City’s financial advisor offering services which included assisting the City in investigating and obtaining capital financing. In July 1997, David Thorton, the City’s main service provider at Raymond James, accepted employment with First Union Capital Markets Corporation. Discussions with Raymond James and First Union regarding future service determined Mr. Thorton’s knowledge of the City and its current debt transactions requires terminating the Raymond James contract and entering into a new contract with First Union. All parties have agreed. On July 23, 1997, the City and First Union entered into an agreement for an amount not to exceed $25,000. If the current Gas System debt transactions are completed, compensation may exceed $25,000 and require contract approval by the Commission. This contract is under the same terms and compensation as the contract approved with Raymond James. The City will issue a RFP (Request For Proposal) for financial advisory firms and select a firm prior to the May 5, 1998, expiration of this First Union contract. Fees paid to First Union are $10,000 plus $0.75/$1,000 per amount of bonds issued and $150/hour for non-bond related services. In response to a question, Finance Director Margie Simmons indicated May 5 is the anniversary date of the original contract. When Mr. Thorton left, Raymond James had no one qualified to replace him. Terms of the First Union contract are the same as the Raymond James’ contract. Banking Services Agreement with Barnett Bank, 3 years commencing 10/01/97, estimated $90,000 annually In reply to a solicitation for proposals, the City received 4 bids: 1) Barnett Bank; 2) Sun Trust Bank; 3) First of America Bank; and 4) Intuition Systems, Inc. Two banks that did not bid indicated they do not offer services which meet City needs or could not compete with Barnett Bank’s rates. The selection committee scored Barnett Bank highest. The City has been pleased with the bank’s service; all problems are quickly and satisfactorily resolved. The City will use new technologies to reduce some banking fees. Contract expenses are charged to a non-budget expense code in the Consolidated Cash Fund. Expenses are deducted from investment earnings prior to the allocation of earnings to the participating funds. Barnett Bank will provide checking accounts, security safekeeping of City investments, coin services, utility payment processing services, overnight investing of account balances, and other services. In response to a question, Cash and Investments Manager Steve Moskun indicated the contract includes a successor clause. The bank’s services are used at City discretion. The City has used Barnett Bank since 1976. In response to a question, Mr. Moskun said interest rates are based on 5-year treasuries. GS GENERAL SERVICES Contract for parts, services, & hardware supplies for City vehicles & equipment, Anderson Auto Parts, Inc., 09/22/97 -09/21/99, with option to renew for 3 additional 1-year periods upon mutual consent, at 2-year estimated cost not to exceed $1,410,000 On May 30, 1997, the City solicited proposals for an on-site parts facility at the General Services Complex, Fleet Maintenance Division. The RFP required: 1) parts operation staff during Fleet operating hours; 2) after-hours parts support as necessary; 3) daily parts support; 4) services and hardware supplies for the City’s approximate 1,350 vehicles; and 5) support the City’s hurricane recovery and emergency operations. On July 7, 1997, the City received 3 proposals: 1) Anderson Auto Parts - Clearwater; 2) Fleet Products -Tampa; and 3) Tropical, Inc. - Clearwater. Proposals were rated for professional experience, availability of experienced staff, and pricing. Anderson Auto Parts has a superior level of experience, immediate availability of a qualified staff, and can provide the required services for an estimated $670,000 for the first year. Fleet Products’ proposal is estimated at $747,500 per year. Tropical’s proposal did not comply with minimum proposal requirements and was rejected. Anderson Auto Parts has 2 stores within 5 miles of the Fleet Maintenance facility and a Pasco County store. Anderson has agreed to purchase the City’s parts inventory at 100% of its current value, and will provide after-hours support and brake servicing equipment at no additional cost. In response to a question, Controller Fred Belzel said staff had done a cost analysis of this need. The City has been outsourcing this service for many years. The City’s current parts inventory is approximately $35,000. In response to a question, Mr. Belzel said the vendor’s service includes maintaining an adequate parts inventory. Addition of MSB (Municipal Services Building) to custodial service contract with Triangle Maintenance Services, 08/01/97 -07/31/98, adding $45,340 increasing total to $111,160 Bids were solicited and a contract was awarded to Triangle Maintenance for custodial services at 12 City facilities, not including the MSB (Municipal Services Building). Respect of Florida, a State contract agency, cleaned the MSB for a 4-month trial period. Continuing Respect’s services is estimated to cost $20,499 more than Triangle for the contract’s length. Triangle Maintenance’s agreement provides adding facilities during the contract period. In response to a question, Mr. Belzel said Triangle’s level of service has been satisfactory. Funds for this service have been budgeted. In response to a question, Deputy City Manager Kathy Rice said Triangle has been instructed to turn off lights. EN ENGINEERING Increase existing contract with Dravo Lime Company for quicklime for Water Pollution Control Division, by estimated $442,080, for total estimated $884,160 The City uses quicklime at its biosolids handling facility to process sludge generated by the City’s AWT (Advance Wastewater Treatment) Facilities. The conservative estimate for the 3-year contract was based on less than 1-year of full-time operation. Additionally, organic loading at the 3 treatment plants has increased, producing an increased quantity of sludge requiring additional lime for processing. The vendor has agreed to hold the original price until the end of the contract. In response to a question, WPC Superintendent Joe Reckenwald said the cost increase is due to the underestimation of actual need. In response to a question, Ms. Rice said the rate study will consider ways to recover this cost. In response to a question, Mr. Reckenwald said the City of Safety Harbor is charged a percentage of the Northwest AWT Plant’s total operation costs based on Safety Harbor’s percentage of usage. Staff will provide additional information regarding this agreement. CM ADMINISTRATION Cooperative Agreement , FDCA, Coastal Management Program, for development of Clearwater Harborwalk Project, total cost $100,000 of which City share for this phase shall not exceed $50,000 Since its inclusion in the Clearwater Beach Blue Ribbon Task Force Report in 1991, the Harborwalk Project has been a component of the Clearwater beach strategic development plan to support economic development efforts on the island’s eastern edge, North of the Memorial Causeway. Project suggestions include: 1) a linear shoreline boardwalk; 2) new marina facilities; 3) commercial docking and seafood processing; and 4) retail stores. Improvements are intended to promote the area as a “working waterfront” and permit increased public access to Clearwater Harbor. In September 1996, Clearwater applied to FDCA (Florida Department of Community Affairs), Coastal Management Program, for funding. The project was estimated to cost $100,000, with the local sponsor responsible for $50,000. Staff recommends a contractor develop a “working waterfront” plan consistent with the area’s environmental and economic development needs. The plan also will serve as a feasibility study for a Harborwalk Project and be incorporated into beach strategic planning. Additional State planning and construction grants may be available upon completion of the feasibility portion of the project. The DCA has provided the City with a cooperative agreement with attachments for endorsements. Concern was expressed the proposed study is too expensive. Assistant City Manager Bob Keller said the feasibility study will be a detailed and complex part of the overall beach development plan. The grant expires on June 30, 1998. In response to a question, Ms. Rice said the $50,000 City match would come from development impact fees. In response to a question, Central Permitting Director Scott Shuford said the proposed seafood processing would be no larger than Frenchy’s current operation. He said a feasibility study regarding a Harborwalk and related environmental issues had not been done previously. The City Manager said the study will tie in with the current review of the entire beach community. FY 1996/97 Third Quarter Review At 3rd quarter, additional revenues to the General Fund are recognized from ad valorem taxes. Third Quarter amendments to expenditures reflect a $500,000 transfer of unappropriated retained earnings of the General Fund to the Special Program project supporting General Fund retirement payouts. Revenues and savings in several operating departments and capital projects provide $107,500 for the 3rd year of contract funding for Ervin’s All-American Youth Club for their FY (fiscal year) 1997/98, $200,000 to establish a capital project for outside review of City codes, and $130,000 to establish a project to produce and distribute a quarterly City newsletter. With approval of these amendments, on October 1, 1997, Unappropriated Retained Earnings of the General Fund will be approximately $7,646,350, approximately 10.5% of the proposed General Fund operating budget for FY 1997/98, and within the City Commission’s 10% reserve policy. The only amendment to the Water and Sewer Fund reflects the $1,326,600 appropriation of unappropriated retained earnings to the capital project, Reclaimed Water Distribution System, approved by the Commission on June 19, 1997. Third quarter amendments to the Gas Fund decrease revenues by $249,170 to reflect changes in anticipated revenues under several categories. Amended revenues are 1% less than projected. Gas Fund expenditures reflect a net reduction of $451,860, primarily due to a decrease in debt service caused by unanticipated delays in the issuance of bonds. These savings will more than offset any decrease in operating revenues. Third quarter amendments to the Solid Waste Fund reflect a $299,000 decrease in collection charges for commercial operations and an offsetting decrease in dump fee expenditures. Third quarter amendments to the Recycling Fund reflect a $35,000 decrease in revenues from the sale of recyclables and an offsetting decrease in inventory purchases. Budget amendments to the Stormwater Fund include a $7,000 appropriation to support City matching funds for the Sustainable Challenge Grant. The only amendment to Harborview Center operations, is the $24,510 appropriation in retained earnings (borrowing from the cash pool) for debt payment on the Boston Concession’s loan which was not included in the Harborview Center Fund’s original budget. The only amendment to the Administrative Services Fund reflects the appropriation of and transfer of retained earnings to the Enterprise Network, as approved by the Commission on September 4, 1997. Amendments to the Capital Improvement Fund total a $4,473,970 net increase. Significant projects previously approved by the Commission include $2,412,000 for Reclaimed Water Distribution, $241,000 for the Municipal Services Complex, and $534,227 for the Sand Key Power Line project. Projects not previously approved include a $90,000 project funded from Police Department operating budget savings for Police Aides for FY 1997/98. Beautification of Gulf-to-Bay Boulevard will be funded with $694,000 of unappropriated Special Development Fund revenues and General Fund savings. A project, funded by $150,000 of unappropriated Special Development Fund revenues, was established to fund Economic Development studies. To meet legal guidelines, a separate fund was established to monitor annual SHIP (State Housing Initiatives Program) proceeds at 3rd quarter. A $40,000 Special Program project was established to start a MPA (Masters of Public Administration) internship program. In response to a question, the City Manager said outside review of City codes will provide a more comprehensive analysis than staff can accomplish. The goal is to present an extensive overhaul of the code within 6 months. Commission input will be requested. In response to a question, Budget Director Tina Wilson said this is the last year of the Ervin’s All-American Youth Club contract. This item is not included in the City’s FY 1997/98 budget. In response to a question, Ms. Wilson will review the $24,510 debt payment on the Boston Concession’s loan and report on the level of unappropriated earnings as of October 1, 1996. In response to a question regarding the Sand Key Power Line project, Ms. Wilson said the fund should have been amended when it was approved in October 1996. It has remained on the book as a bookkeeping entry. She indicated funding for the production and distribution of a City newsletter was identified from savings throughout the General Fund. Staff will bring back additional information regarding the newsletter. Concern was expressed Unappropriated Retained Earnings of the General Fund have been reduced to 10.5%, barely above the City Commission’s 10% reserve policy. Ms. Rice said staff will come back with a report regarding other city’s policies and a staff recommendation. The City Manager said cities create reserves for reasons that can change over time. He recommended revisiting this issue regularly and defining those reasons. It was noted a 10% reserve is maintained in case of a disaster. A request was made for an executive summary of this issue along with copies of minutes covering related discussions. City Manager Verbal Reports Set Strategic Planning Special Work Session A Strategic Planning Special Work Session was scheduled from 9:00 a.m. to 1:00 p.m., on October 6, 1997. The location will be announced. Other Commission Action Commissioner Seel said Clearwater’s per capita debt was rated lowest in a recent article in Tampa Bay Business regarding local governments. She requested an update that includes the Gas bonds. Commissioner Seel questioned when the City will begin developing its legislative package. The City Clerk said a meeting with the City’s lobbyist will be scheduled this month. Commissioner Seel said an article distributed by Organizational and Employee Development Director Pam Skyrme regarding Portland, Oregon, was interesting. Commissioner Seel reported she had picked up a Harborview Center menu when she was in Tampa. Commissioner Johnson said the article on the Sister City program was interesting. Commissioner Johnson questioned if a tunnel had been considered for the US 19N and Drew Street intersection. The City Manager estimated a tunnel would cost 4 times more than an overpass to construct. It was noted tunnels are closed to traffic when problems occur related to the transportation of hazardous materials. Commissioner Johnson recommended addressing parking problems at the Municipal Services Complex. The issue will be addressed at the September 29, 1997, Work Session. Commissioner Johnson suggested the City consider purchasing the St. Petersburg Times property near the Municipal Services Complex. The City Manager recommended addressing that property during discussion of plans for the current City Hall building. Commissioner Johnson requested all projects inherited from previous City Commissions be completed by January 1998. The City Manager said that is a goal. He noted the need for an overall analysis of Municipal Services Complex area parking needs. Commissioner Johnson questioned staff’s response to Vicki Shull’s request for a sidewalk. Engineering is addressing that request. Commissioner Johnson referred to a letter regarding skaters and noted the need to educate the public regarding this issue. Commissioner Johnson said complaints included in the August 30, 1997, letter from a St. Louis visitor are embarrassing. Mayor Garvey questioned if the City could annex any property under the PPC’s (Pinellas Planning Council) recommendations regarding enclave annexation. The City Manager said staff is analyzing the report. Mayor Garvey reported the Taste of Clearwater is scheduled at the Harborview Center on September 25, 1997. Adjourn The meeting adjourned at 11: 50 a.m.