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06/14/1999CITY COMMISSION WORK SESSION CITY OF CLEARWATER June 14, 1999 Present: Brian J. Aungst Mayor/Commissioner - departed 5:03 p.m. Ed Hooper Vice-Mayor/Commissioner J. B. Johnson Commissioner Robert Clark Commissioner Ed Hart Commissioner Also Present: Michael J. Roberto City Manager Richard L. Hedrick Deputy City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia Sullivan Board Reporter The meeting was called to order at 1:03 p.m. at City Hall. Service Awards Six service awards were presented to City employees. Chris Hall, Graphic Communications Division, was presented the June 1999 Employee of the Month award. The Commission recessed from 1:11 to 1:13 p.m. to meet as the Pension Trustees. PRESENTATIONS Harborview Update - Dave Nadeau Mich Sauers, GFS (Global Facility Services, Inc.) President, and Dave Nadeau, Harborview Center General Manager, reviewed the Harborview Center's 4-year history. GFS began managing the facility in January 1995. Mr. Nadeau said the center attracts people downtown and convention traffic to the City. Revenues climb annually. From an operating net loss of $416,215 in FY (fiscal year) 1995/96, GFS projects an operating net profit of $30,612 in FY 1998/99. Mr. Nadeau reported 148,784 people had attended the 497 events in FY 1997/98 and estimated the economic impact was $4,571,212. He said the lack of an adjoining hotel is a disadvantage. The facility is developing a video. Mr. Sauers recommended citizens be familiarized with the Center to realize what an asset it is. He said the Center has stimulated the local economy and nurtured and promoted tourism. The City Manager said staff will bring forward an extension to GFS' contract for Commission consideration. The City wants to maintain flexibility when considering future uses for the facility. He complimented the Center's staff. In response to a question, Mr. Sauers said all records related to the Harborview Center belong to the City. The City receives the revenues from Pickles Plus and SteinMart. The City Manager said staff is considering ways to increase citizen interaction with the building. It was stated Harborview Center food and services are excellent. PUR PURCHASING Avanti Company, two gas odorant systems (replacements) for use at North & Northeast Gate Stations, $35,400 (GAS) Contract Connection Inc., purchase & installation of a 10 row, 135' non-elevated bleacher unit to be used at Phillip Jones Park, $48,075 (QOL) R & S Lawn Service, 2nd & Final extension, lawn & landscape maintenance services throughout City, 07/01/99-06/30/00, estimated $30,000 (QOL) Dell Computer, 50 personal computers to be used in all branches of the Library, $50,050; funding to be provided under City's Master Lease-Purchase Agreement (QOL) SPER Chemical Corp., long chain linear polyphosphate for use in water treatment & water pollution control facilities, 06/18/99-06/30/00, estimated $130,000 (PW) Vulcan Chemical Technical, Inc., hydrogen peroxide & odor control service at various waste water pump stations throughout City, 06/18/99-06/30/04, estimated $1,070,000 (PW) In response to a question regarding the Vulcan Chemical Technical purchase, Purchasing Manager George McKibben said the extended contract allows costs related to necessary but expensive equipment to be recouped over a five-year period. BU BUDGET Mid Year Budget Review In the General Fund, at mid-year, anticipated fund revenues and expenditures reflect a $3,046 decrease. Closing the Public Strategies Group contract of approximately $159,000 encumbered against the FY 1997/98 operating budget provides funds: 1) to establish the Strategies for Success program; 2) to offset unanticipated small decreases in General Fund revenues from utility taxes, sales tax collections; and 3) to offset a reimbursement due from Pinellas County in fire tax revenues. Utility tax revenues are being watched for further amendment at third quarter due to slower than anticipated collections. This category nearly mirrors last year's collections for the first 6 months, and are below the anticipated annual 4% increase. The reduction could be due partially to the mild winter. In Vision Funds, mid-year amendments reflect distribution of $65,136: 1) $4,000 - sponsorship of the NARC 2000 conference; 2) $35,000 - services related to the proposed purchase of the Capitol Theater; 3) $24,500 - contract services with Prime Interests related to downtown planning; and 4) $1,636 - contracts for other services. Of the $311,400 allocation for the NCAA concerts, $270,000 has been returned to the General Fund. Approximately $15,000 more will be returned at third quarter after closing the project once all expenditures are accounted. The net allocation of Vision Funds is a net return of $204,864. To date, total distribution of the $750,000 is $358,439. The current balance of Vision Funds available for distribution is $391,561. The amendment to the Water & Sewer Fund reflects an increase to anticipated revenues of approximately $655,300 following adoption of rate increases in October 1998. A $412,620 decrease in anticipated gas fund revenues is a direct result of the warm winter. Mid-year amendments to the Marina Fund for retirement payouts to the previous Harbormaster and a custodial worker total $56,770. These unanticipated expenditures are offset by increased revenues from gas and oil sales due to the mild winter. Fund revenues in the Harborview Center Fund reflect increases in food & beverage sales totaling $131,100 due to increased activity, offset by a $95,640 increase in sales costs tied to increased activities. The $35,460 net amount reduces the contribution for the City's loan pool, and reduces this year's anticipated obligation from $348,800 to approximately $313,340. Regarding Internal Services Funds, garage fund amendments reflect a $346,300 increase due to Y2K compliant and hardware and software maintenance contracts approved by the City Commission on March 18, 1999. Amendments to the Capital Improvement Fund total a net increase of $3,715,872. The City Commission previously approved almost all Capital Improvement budget increases, which include a $9,360,939 increase to the Gateway to the Beach project bringing that total project budget to the $10-million level previously approved by the City Commission and $111,500 for Ray Green Park Expansion. Budgeted expenditures reflect a net decrease of $5,164,000 in gas bond funding for expansion. Amendments to the Special Program Fund total a net increase of $520,606. Significant increases reflect $325,000 in new grant funds for Brownfields projects, $20,000 in grants for Sand Key beach vegetation, $49,900 for the waste tire grant, $56,540 for hazard mitigation, and amendments to other projects reflecting the regular receipt of forfeiture, fines, and donations. Budget Director Tina Wilson reviewed budget changes. In response to a question, she said the increased Marina budget will cover benefits, including accrued sick and vacation leave for the two retired employees. The Harbormaster's retirement had not been budgeted. Anticipated revenues will cover these costs. It was requested the City Manager report to the Commission when services are contracted. ED ECONOMIC DEVELOPMENT Public Hearing - Declare Surplus, R. H. Padgett's Sub., Blk 5, Lots 9-11; approve staff recommendation to limit sale to those who would use the property to enhance commercial development on adjoining properties or those in immediate vicinity The subject parcels, which front Gould Street, approximately 100 feet east of S. Madison Avenue, are subject to a perpetual ingress/egress, drainage and utility easements in favor of IMRglobal. These easements were established in connection with the IMR development and will remain on the property. The City has subsurface, non-exclusive drainage and utility easements on the property, which no longer is needed for municipal public use. The property shall be sold to the party submitting the highest competitive bid above $26,875, as determined by the May 17,1999, appraisal by James Millspaugh, MAI. Staff recommends the City Commission declare the property surplus and limit its sale to the enhancement of commercial development on properties that adjoin or are in the immediate vicinity. In response to a question, the City Manager said the recommendation to limit the purchaser is to stop speculators from obstructing area development. QOL QUALITY OF LIFE ADMINISTRATION Purchase property, Capitol Theater, located at 403 Cleveland St., John R. Davey's Resub., Blk B, west 30'3" of Lot 6 & east ½ of Lot 7; and approve contract with Accento Craft, Inc. for $250,000 plus closing expenses estimated at $2,600 for total estimated $252,600 The Capitol Theater, constructed in 1921, is approximately 8,500 square feet and seats 587. The original design has been largely maintained, although the marquee was destroyed during a storm in the 1960s. The theater is eligible for historic restoration grants if owned by the City. Staff has submitted a $397,000 historic preservation grant application to the Florida Department of State for the FY 2000 funding cycle. On November 28, 1997, James Millspaugh, MAI, appraised the property at $215,000. The Pinellas County Property Appraiser's office assessed the value at $123,100. Consultant Sid McQueen's operating and management study for the theater ascertained it would be used 385 times annually by 20 - 25 community groups. Annual operating costs are estimated at $427,656, with estimated income of $427,716. If management duties are contracted, that fee will be approximately $52,000 annually. Robert Lorelli, an architect who analyzed the structure, recommended also acquiring the abutting Pat Lokey building for approximately $400,000 for public restrooms, lobby, offices, and other amenities to restore the theater to its original seating and provide adequate backstage and fly space. The purchase and renovation of the Lokey building and restoration of the theater is estimated to cost $3.5-million, to be funded by grants and local contributions. The theater will be restored to its original beauty and historical integrity and will be used as a community cultural space by Ruth Eckerd Hall, local performing arts productions, City departments, and other community groups. Quality of Life Administrator Arlita Hallam reviewed the theater's history. Grant money will be used to refurbish the façade, complete roof repairs, make certain the building is structurally sound, and ADA (Americans with Disabilities Act) accessible. To qualify for the grant, the City must own the theater by September 1999. Consultant Sid McQueen said 75 community meetings were held where much interest was expressed in saving the City's history. The theater offers a strong visual presence as an important element of downtown redevelopment. He said a public/private venture is proposed with the City taking the leadership role while the private sector raises funds. He recommended the City contract professional theater management, such as Ruth Eckerd Hall, to plan diverse programming for children and adults. The perception that nearby parking is insufficient needs to be addressed. A study, based on input from more than 70 people, is being prepared. He reviewed proposed design changes including a larger lobby and drop off space on the street. Mr. McQueen estimated the theater will be used more than 300 times annually with a projected operating budget of $430,000 plus management fees. Support groups will create community interaction and generate money. All groups will pay to use the facilities. He recommended the creation of a public/private non-profit entity. He said the theater should be repaired and a clear mission statement be developed before a management contract is negotiated that should include a certification training program. Local non-profit volunteers can reduce operational costs. He recommended the creation of a community subsidy fund and a community-wide advisory board to guide the management to serve the community's needs. Experienced and professional management should operate the facility and raise funds. Robert Lorelei, architect consultant, said the theater can attract 150,000 annually downtown. He reviewed current design shortcomings and advantages of expansion to the abutting Pat Lokey property and alley. He estimated it would cost between $300,000 and $500,000 to bring the structure up to Code without any improvements. He estimated the project, including recommended improvements but not the purchase of the Pat Lokey property, would cost $3,176,000. He said the theater would generate a $9-million annual economic impact downtown. Concern was expressed the proposal would remove the structure from the tax rolls. It was felt the City should first focus on a new Main Library. It was suggested a developer take over the proposed project and taxpayers not be required to cover operating and other expenses. In response to a question, Dr. Hallam said Ms. Lokey has expressed an interest in selling the business and building. The City Manager said this project would take place over a 5-year time period. A church also has expressed interest in purchasing the property. He said once the new bridge is completed in 2003, a series of downtown anchors will be necessary to maintain long term interest. He said similar grant funds may not be available in the future. He said improvements will not be constructed until adequate funds are raised. Ruth Eckerd Hall Executive Director Robert Friedman reviewed available grants for similar projects. He said the facility would enhance Ruth Eckerd Hall's programs. He said these types of projects generate significant money for a community. He discussed successful theater renovations in other downtowns. Dr. Hallam said the theater would not require City support for long. Concern was expressed this window of opportunity not be lost. It was suggested a sale date be determined should the project fail. In response to a question, Assistant Planning Director Cyndi Harden said it is difficult to identify sponsors until the property is owned and the project is underway. In response to a question, Dr. Hallam said fundraising for this project would not interfere with the library's fundraising efforts. The City Manager noted the value art has on a community. The meeting recessed from 3:02 to 3:18 p.m. FD FIRE Fire Fee - Presentation Completion of Phase IIA of the Fire Assessment study is necessary to keep the process on schedule and provide the City with the option of adopting the fire assessment fee for FY 1999/00, but does not obligate implementation. Upon authorization, GSG (Government Services Group), Inc., will: 1) draft necessary home-rule service assessment ordinances; 2) draft implementing resolution; 3) assist in the final rate adoption process of the FY 1999/00 assessment program; and 4) coordinate with City finance officials the program's establishment and collection and accounting procedures. The City Manager said additional budget information is scheduled for presentation on Friday. In response to a question, Fire Chief Rowland Herald reviewed the scope of services included in this next phase of the assessment study. Before a fee could be implemented, the City would have to notice all property owners in the City and allow public hearings and input. The City Commission would have to approve an ordinance and the City would have to mail out the first year's fee notices. The scope of work in the following phase would be the actual issuance of bills. The City Commission will determine the future collection method. Assistant City Manager Rick Hedrick recommended approval of Phase IIA to keep the process moving and to retain the option of implementing the fee this fall. The City Manager said the City will need to implement the fire fee or increase taxes this year. He recommended the City Commission delay a decision regarding this agenda item until after Friday's budget presentation. Concern was expressed citizens may view this fee as double taxation. The City Manager said if the fee is approved he will recommended a reduction in the millage rate. It was recommended the process not be rushed and consideration of the fee be delayed a year to allow adequate time for review and input. Consensus was to delay decision on this item until a Special Meeting on June 18, 1999. FN FINANCE Res. #99-18 - Providing for sale of not to exceed $35 million Housing Revenue Bonds (BEF, Inc. Project), Series 1999 (regarding The Oaks)(FN) BEF, Inc., an exempt organization, will use Housing Revenue Bonds (BEF, Inc. project), Series 1999, in an amount not to exceed $35-million to acquire and redevelop the Oak Cove building. Another developer will acquire the Oak Bluff building simultaneously to provide market rate housing downtown. BEF, Inc. intends to renovate the Oak Cove building to care for senior citizens, offering independent and assisted living, and nursing care. BEF, Inc. intends to relocate all Oak Bluff tenants to the Oak Cove building once it is renovated. The Oak Bluff building then will be renovated. The Oak Bluff building will become subject to ad valorem taxes, while the Oak Cove building will remain exempt from such taxes. BEF, Inc. has requested the City issue a series of tax exempt and taxable bonds to finance the acquisition and rehabilitation of the Oak Cove building. The City will be a conduit issuer of bonds for BEF, Inc. to finance a portion of this project. This action will allow a portion of the bonds to be tax exempt, providing lower interest rates. The City's bond counsel, financial advisor, Financial Services Administrator, and City Attorney are reviewing the bonds and project to determine the legality and feasibility of the City's participation. Section 11 of this resolution provides for the bonds not to be issued if any financial, legal, or tax issue remains unresolved. BEF, Inc. will pay all expenses and costs associated with this project. The City will not incur any expense or liability by issuing these bonds. Ziegler’s selection as underwriter was based on the firm’s expertise on this type of project. These bonds will be sold through negotiated sales to institutional investors only. This resolution authorizes the City Manager and Financial Services Administrator to award the sale of the bonds. In response to a question, Financial Services Administrator Margie Simmons said both buildings currently are nursing homes and are exempt from taxation. Only Oak Cove will remain a nursing home. The City will have no liability or expense related to issuance of the bonds. Bob Reid, bond advisor, said bond proceeds will be used to pay off prior debt on the Oak Cove Building and to renovate the structure. A separate group is purchasing the other building. No City revenues or tax powers may be pledged for the bonds. The City's only obligation is to assign trustees for the benefit of the bondholders at closing. The City Manager said this project will provide 250 of the 1,000 residential units needed downtown. IT INFORMATION TECHNOLOGY Contract to Oxford Solutions, Peoplesoft Human Resource Management System consulting services, 06/18/99-12/31/99, estimated $425,000 In 1996, staff began implementation of the PeopleSoft HRMS (Human Resources Management System). After a period of parallel process, the PeopleSoft payroll system was brought up in July 1998. The City receives ongoing software support from PeopleSoft through purchase of a yearly maintenance agreement, which entitles the City to telephone support, new versions of the software, software corrections to problems, and data tables necessary to run year-end processing. PeopleSoft limits support to the last 2 versions of the software, requiring customers to maintain a recent version. Support of the current version ends in September 1999. The core group of staff responsible for implementation of the PeopleSoft system resigned from the City to accept jobs with consulting companies due to their expertise with PeopleSoft implementation. The City was left without experienced staff to perform this upgrade in-house as anticipated. It is customary for PeopleSoft HRMS users without a complete compliment of seasoned support staff to use a consulting partner. The City issued a RFP (Request for Proposals) to seek firms experienced in PeopleSoft upgrade procedures. Staff selected Oxford Solutions as the firm most able to assist the City. Oxford Solutions is familiar with the upgrade procedures, has staff available to perform the upgrade, and can document and certify the upgrade to PeopleSoft specifications. In response to a question, Acting Information Technology Director Patrick Cook said the system had crashed last week after staff loaded the weekly PeopleSoft update. Oxford Solutions was contracted and resolved the problems related to data misalignment. Concern was expressed regarding the contract's high cost. The tax updates are necessary for the City to meet payroll. General Support Services Administrator Bill Horne said the City will lose software support in September if the system is not upgraded during the current fiscal year. The cost of the upgrades has already been funded. The City Manager reviewed the complexity of the system and the need for technical skill. In response to a question, Mr. Cook indicated staff salaries for this type of skill is expensive. A team of at least five technicians will be necessary. In response to a question, the City Manager said the work cannot be done remotely. In response to a concern, Mr. Horne said the employees who resigned left typical municipal salaries for much higher pay. It was noted the City Commission had approved the software with the assurance that staff had sufficient expertise to implement and maintain the system. In response to a question, Mr. Horne said the City's reliance on outside help will lessen. Mr. Cook said the next software upgrade will occur in two years. It was suggested the City consider outsourcing payroll duties. Ms. Simmons said the number of City unions complicates the payroll procedure. The City Manager said staff will consider other organizational options in the future. A request was made for an accounting of the number of work hours covered by this contract. Contract to PC University Distributor, Inc., computer equipment, estimated $74,500 and Wareforce, Inc., software, estimated $126,014, Microsoft Office upgrade, total estimated $200,514 Purchase of equipment and software will permit those without the current version of Microsoft Office to be upgraded to the version on newer City computers. The upgrade will extend the useful life of computer equipment at the Municipal Services Building, City Hall, Police, General Support Services, and Water Pollution Control. Purchase of the Microsoft Office Suite upgrade will permit approximately half of the City's computers to be upgraded to the new Office 2000 product at no additional cost after sufficient industry testing is completed. A project needs to be established for future standard upgrades of software and computer equipment replacement. Future programs will be performed in a single engagement, instead of aggregate projects. In response to a question, the City Manager said the City does not intend to upgrade to Office 2000 at this time. The dual licenses being purchased will permit the upgrade when the City is ready. In response to a question, the City Manager said it is hard to retain staff as the computer field is highly competitive. Mr. Cook said staff will install the upgrades. PR PARKS AND RECREATION Provide direction to staff regarding Clearwater Country Club Golf Course Since 1937, CCC (Clearwater Country Club) has leased the City-owned 96-acre golf course. The current lease expires in May 2002. CCC, which owns 5.6 acres in the center of the golf course, wishes to replace their 1951 era club house with a $2.3-million club house. Of 696 member households, 65% live in Clearwater. The March 9, 1999, referendum question to permit renewal of the lease beyond the 60-year limit was defeated. Staff has met with CCC members and proposes: Option 1) Commission directs the next scheduled referendum to consider removing the 60-year limitation on all leases and grant the Commission the right to negotiate the most favorable terms. If approved, the City would negotiate a mutually-favorable financial package for the golf course lease beyond 2002; Option 2) Commission directs the next scheduled referendum to consider releasing only the CCC golf course lease from the 60-year charter restriction; Option 3) City issues an RFP effective in 2002, when the CCC lease expires. CCC could plan its future and permit the award recipient to plan around the CCC clubhouse; and Option 4) City operates the golf course to provide an additional revenue stream for the general fund. CCC has suggested a 5th option, which allows the club to reorganize as a new entity and negotiate a new lease agreement. A study, to be completed next month, is reviewing current conditions at City golf courses, performing a market analysis, and providing options and recommendations regarding golf course operation in the City. Commissioner Clark recused himself due to his business relationship with Clearwater Country Club. Concern was expressed the City had limited leases to 60 years. It was recommended a RFP (Request for Proposals) be released. It was noted as CCC owns some of the land, it is unlikely another entity would bid. John Bailey, of CCC, said without the country club's 6 acres of property, the City's property is too small for a golf course. He said CCC members will have to approve any course of action the club takes. The City Attorney said nothing hinders CCC from reorganizing as a new entity. Dr. Hallam said the study will present other options for consideration. PW PUBLIC WORKS Work Order to Wade-Trim, Inc. to provide design services for Acacia Roundabout, for $37,441.72 This workorder includes design of a roundabout, associated landscaping and entry feature to be located on Clearwater Beach at Acacia and Mandalay. The project will provide traffic calming; a safe, pleasant environment for pedestrians and bicyclists; a safe U-turn for those not wishing to enter the residential district; and an aesthetic demarcation of the transition from the tourist/commercial district to the residential district. The Clearwater Beach Association will provide $3,000 toward design and construction. Public Works Administrator Rich Baier said the residents have participated in planning the project, which is supported by the majority of the community. In response to a question, he said the roundabout will be built within the existing right-of-way. The cost of the project will not be determined until a design is complete. In response to a question, Mr. Baier said staff is considering a solution to drainage problems farther north where water collects during high tide. He will present a rough estimate of the project's cost on Thursday. The project will be funded as a capital project for major intersection improvement. He will report on plans for the Hercules/Cleveland intersection. Mandalay Streetscape The City Manager said a series of discussions have occurred with the residential and commercial sectors. New options proposed are: 1) four 10-foot lanes, 4-foot wide landscaping median, two 14-foot sidewalks, 8-foot wide parallel parking on west side and 2) four 10-foot lanes, 10-foot wide landscaping median large enough for palm trees and a pedestrian refuge, two 15-foot sidewalks, no on-street parking. He said a parking program can maximize parking on side streets. The project would take 26 months from design through construction. He suggested working with local interest groups and publishing a local newsletter. He estimated the 3-block project will cost more than $3.5-million. The project will continue the look from the roundabout. Utilities will be buried. He recommended a 10-foot median will improve pedestrian safety. Local businesses surveyed by the Greater Clearwater Chamber of Commerce did not object to the removal of on-street parking if a parking garage is constructed at Pelican Walk. In response to a question, the City Manager said the west side of the street was chosen for the on-street parking option due to its proximity to the beach and the higher revenue those spaces produce. In response to a question, Mr. Baier said the proposal would narrow each lane by 3 inches and help with traffic calming issues. He said landscaping in the median also will slow traffic. He recommended speeds be limited to 20 mph or lower. It was suggested an odd speed limit, such as 18 mph, be considered. A pedestrian signal in front of the Hilton is planned as part of the roundabout. Other signals are being considered. Concern was expressed regarding higher traffic speeds north of this project. It was recommended the medians be designed to restrict where pedestrians can cross. In response to a question, Mr. Baier said the Hilton entrance is being redesigned. Concern was expressed the property is losing its direct access to Causeway traffic. Mr. Baier said a left turn lane requires approximately 100 feet for transition. A turn lane could affect issues related to pedestrian safety. In response to a question, Mr. Baier recommended pedestrians retain access to 7-feet of the sidewalks' width. It was noted some cities require sidewalk cafes to offset outside seating into the restaurant when remodeling occurs. CLK CITY CLERK Florida League of Cities Voting Delegate for conference 8/19-21/99 Consensus was to appoint Commissioner Hart as the City's voting delegate to the August Florida League of Cities conference. OTHER CITY ATTORNEY ITEMS The City Attorney requested an attorney/client session regarding Timm versus the City be scheduled for June 18, 1999, at 8:45 a.m. Consensus was to so schedule. City Manager Verbal Reports Discussion ensued regarding the conflict in August with meetings of the City Commission and Florida League of Cities. The schedule was not changed. Adjourn The meeting adjourned at 5:32 p.m.