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04/01/2002CITY COMMISSION WORK SESSION CITY OF CLEARWATER April 1, 2002 Present: Brian J. Aungst Mayor/Commissioner – departed 1:09 p.m. Whitney Gray Commissioner Hoyt P. Hamilton Commissioner William C. Jonson Commissioner Frank Hibbard Commissioner Also present: William B. Horne II City Manager Garry Brumback Assistant City Manager Ralph Stone Assistant City Manager – departed 11:48 a.m. Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia O. Sullivan Board Reporter The meeting was called to order at 9:15 a.m. at City Hall. PUR PURCHASING 1) Purchase four (4) Flygt pumps for $82,649 from E K Phelps & Company. (PU/WPC) 2) Purchase contract renewal for gas materials-meters & regulators during contract period May 2, 2002 through April 30, 2003 of 2001 bid for $150,000 from M T Deason Company, Inc. (CGS) 3) Purchase to replace five (5) 2002 Toro Z Master riding mowers with attachments and three (3) 2002 Toro 328D Groundsmaster riding mowers for $82,378.47 from Wesco Turf Supply. (GSS/FLEET) 4) Service contract Cellular digital packet data service during the contract period March 1, 2002 through March 31, 2004 for $120,000 from Alltel. (PD) 5) Service contract relocation of library furniture and materials for $67,500 from Professional Movers, Inc. (LIB) In response to a question regarding Item #1, Purchasing Director George McKibben said Florida has only one vendor. The pumps are the best available. In response to a question regarding Item #4, Police Chief Sid Klein said the item is for cellular transmission of data via modem. DS DEVELOPMENT SERVICES First reading Ord #6918-02, revising Appendix A, 5% increase in Occupational License Fees, Code of Ordinances. In 1995, under guidelines set up in State Statute 205.013, et seq. as amended by a law signed into effect in 1993, the City Commission adopted an ordinance that restructured and increased the City’s Occupational License fees. The Commission appointed an Equity Study Commission, which reviewed the City’s Occupational License fee and made recommendation. Staff put those recommendations into an ordinance and the City Commission adopted the ordinance. Florida State Statute 205.0535 allows municipalities to increase their Occupational License fee tax rates by up to 5% every other year after the City’s 1995 ordinance reclassified and revised the rate structure. Approval requires a majority, plus one vote of the governing body. The first 5% increase was adopted in 1997, two years after the ordinance was adopted. Fees were last increased by 5% on February 3, 2000. This item and associated ordinance accomplishes this task again, meeting the two-year provision. New rates will be effective on April 18, 2002. For FY (fiscal year) 2000/01, the Development Services Department processed 9,000 occupational licenses with associated revenue of $1,804,880. This 5% increase will generate approximately $95,000 of additional revenue. In response to a question, Development Services Director Jeff Kronschnabl said the majority of the licenses cost less than $2,000. Concern was expressed that there was inequity in the way service providers are licensed versus those businesses carrying inventory. The City Attorney said the City cannot change the rate structure unless the State Legislature permits another equity committee. In response to a question, Assistant City Manager Garry Brumback said the timing of the increase will allow staff to develop their budgets. In response to a question, Assistant City Manager Ralph Stone said the increase, at 2.5% annually, is reasonable. FN FINANCE Approve the use of a City bank account, with signature authority to HDR Engineering in the amount of $5,000 for the day to day operations of Friendly Village of Kapok Mobile Home Park upon purchase of the park by the City. The City will be responsible for day to day operations of Friendly Village of Kapok Mobile Home Park immediately upon purchase of the property. HDR Engineering has been contracted to act as the City’s agent in managing day-to-day operations, to include collecting rent payments and paying maintenance expenses. The Finance Department recommends opening a City bank account in the amount of $5,000, with signature authority to HDR Engineering. The account will be titled “City of Clearwater DBA Friendly Village of Kapok Mobile Home Park”. HDR Engineering, as the City’s agent, will deposit rent checks and pay bills for the park operations from this account. Any monies in excess of $5,000 will be transferred automatically on a daily basis from the account into the City’s general operating account by BankofAmerica. Staff will have on-line access to this account and will monitor activity on a daily basis. In response to a question, Finance Assistant Director Jay Ravins said if this item is not approved, the City will have to deposit all rent checks and issue all checks related to administering the Mobile Home Park. In response to a question, City Engineer Mike Quillen said all residents will be moved within 13 months of closing. Mr. Brumback said collected rents will not cover City administrative costs. Authority to settle the worker's compensation claim of Claimant, Alan Mazurowski in its entirety to include medical, indemnity and attorney fees for the sum of $135,000. On July 27, 1987, Claimant Alan Mazurowski, a Sign and Marker Technician for the City, sustained a knee injury at work that is the basis of his pending WC (workers compensation) claim. As a consequence of the knee injury, Mr. Mazurowski underwent multiple knee surgeries and now has made a claim for permanent total disability. The City dismissed the Claimant on September 22, 1992, and the Claimant has remained essentially unemployed since that time. The City has a WC excess insurance policy applicable to this loss. If this request for authority to settle is approved by the City Commission and paid by the City, the excess insurance carrier, Safety National Casualty Corporation, will reimburse the City the entire settlement amount of $125,000. The claimant is not receiving a City of Clearwater pension. The City’s Claims committee, the Risk Management Division, Gallagher Bassett Services, Inc., the City third party administrator on this old runoff claim, and the City’s outside counsel, Mark Hungate of the law firm of Fowler White recommend settlement of this claim as being in the City’s best interest. In response to a question, Risk Management Specialist Jon Marcin said the City’s excess carrier had negotiated the potential settlement. Workers Compensation medical records are confidential. This request is not for a City Pension. Authorize lease purchase of capital items that cost $50,000 and under without a separate authorization from the City Commission as long as they meet the lease purchase requirements, purchasing standards, and are approved in the budget. On September 7, 2000, the City Commission adopted Resolution #00-32, which approved Bank of America Leasing and Capital as the City’s lease purchase provider. The agenda cover sheet stated that the City Commission would approve each specific item lease purchased. Staff requests that the City Commission approve only items over $50,000, which reflects the City’s current purchasing procedure. Items $50,000 and under that meet City lease purchase requirements would be lease purchased without a separate City Commission authorization. This change will make lease purchase approval levels consistent with the new purchasing levels and expedite the purchasing process. In response to a question, Fiscal Director Margie Simmons said the next report on lease purchase items will be issued in six months. CGS CLEARWATER GAS SYSTEM First Reading Ord # 6984-02 approving new gas utility rates to become effective for all billings on or after May 1, 2002. Staff recommends changes to the CGS (Clearwater Gas System) Fees, Rates and Charges section of Appendix A of the City’s Code to become effective for all billings rendered on or after May 1, 2002. Current CGS gas rates and service charges have been effective since March 1, 1999. The primary intent of recommended revisions is to increase certain “Propane (LP) gas service rates” and “Other miscellaneous gas charges” for ancillary services to reflect increases in labor and service costs to remain competitive. The secondary intent provides clarification and minor editing of current rate ordinance language. This recommendation is cost-based and responsive to competitive challenges expected in the foreseeable future. The rates reflect a fair allocation of expenses to appropriate customer classes. Proposed rates will provide a more equitable structure to ensure CGS growth potential while providing an adequate return to the City, which helps offset ad valorem tax rates. It was noted the increase is less than 1%. The Commission complimented CGS for generating revenues for the City. GSS GENERAL SUPPORT SERVICES Award contract to Heavy Duty Lift & Equipment, Inc. in Buford, GA. for the purchase of two(2) surface mounted 75,000 pound capacity Omar Vega 340 portable lifts at a cost of $121,000 and authorize financing under the City's Master Lease/Purchase Financing Agreement, in accordance with Sec. 2.564(1)(d), City of Saint Petersburg bid #7511. Lifts are needed to facilitate repairs and improve productivity for work on heavy trucks in the City Garage facility. These lifts will reduce labor by approximately one hour ($50) for all Preventive Maintenance (PM’s) and undercarriage repairs. The two shops will save at least 2 hours per day or $27,000 per year. These lifts will increase safety under the vehicles by removing all jacks and jack stands currently used to raise vehicles. Mechanics will be able to walk under vehicles for repairs, instead of rolling on creepers in very tight areas. Exposure to injury will be reduced. Funding for the anticipated debt service costs of $950 and related installation of electric and compressed air lines estimated at $600 will be funded from savings within budgeted fuel costs in the Garage Fund. In response to a question, Fleet Administrative Coordinator Joe Arrien estimated the City had saved $144,000 on its fuel budget, as of February 2002. Solid Waste & General Services Director Bob Brumback said acquisition of the lifts was changed to lease/purchase to save money. Staff is working to upgrade the shop rather than outsource work. Staff will report on the life span of the lifts. MR MARINE AND AVIATION Authorization to institute legal action against a private slip tenant, LeBron Free at Island Estates slip #140, to recover past due rent and remove boat from slip. On July 22, 1996, staff sent LeBron Free a letter, reminding him he was two months late on his rent. On November 27, 1996, staff sent another letter, advising him he was three months late. On April 22, 1997, staff sent Mr. Free a revocation letter, after being four months in arrears. Mr. Free was granted an audience with the former Harbormaster on May 6, 1997. Mr. Free paid his rent through May 1997, was given another chance, and agreed not to pay late again or his docking permit would be revoked. In 1998, staff overlooked several occasions when Mr. Free paid after the fifteenth of the month, until November 20, 1998, when staff sent him another late notice letter. In 1999 and 2000, 12 of 24 payments were late. Staff did a slip rent investigation and copied all receipts to show how his paying late had resulted in his not knowing for which months he was paying. Staff’s October 5, 2000 letter notified Mr. Free that he should consider that his final warning. In the July 20, 2001 letter, staff informed Mr. Free that his docking permit had been terminated as of July 31, 2001, for paying rent late in April, May, June, and July. Mr. Free requested additional time to make arrangements to move the boat, telling staff he was having difficulty coordinating arrangements for transport necessary to move the 41-foot sailing yacht out of the water and onto a truck. Staff offered to do it for him but the offer was not accepted. Mr. Free asked if a prospective buyer could rent the slip if he purchased the boat. Staff agreed but Mr. Free was unable to consummate the deal. Mr. Free asked that staff not charge him the daily transient rate for August. Staff agreed. Mr. Free also paid the private monthly rate of $182.06, for September instead of the daily transient rate, which would have been $1,427.97 per month. In spite of additional written notices, Mr. Free has not moved his boat and has accumulated $5,760.99 in dock fees for November 2001 through February 2002, on the daily transient dock rate of $1.05 per foot per day. Staff informed Mr. Free by letter on January 18, 2002, informing him that legal action would be taken if payment was not received by January 25, 2002. Payment has not been received. In response to a question, Marine and Aviation Director Bill Morris said Mr. Free is a City resident. While the bottom of the boat needs cleaning, it is not a hazard. He said no local marinas want the boat with its owner’s history of lack of payment. PD POLICE Res. #02-21 authorizing the Mayor, on behalf of the Clearwater Police Department, to execute the "Tampa Bay Regional Domestic Security Task Force Combined Voluntary Cooperation and Operational Assistance Mutual Aid Agreement and Memorandum of Understanding" allowing voluntary cooperation and assistance of a routine law enforcement nature across jurisdictional lines and operational assistance by and among participating law enforcement agencies within the State of Florida to promote domestic security. Chapter 23, Florida Statutes authorizes mutual aid agreements between law enforcement agencies for rendering voluntary assistance of a routine law enforcement nature to one another across jurisdictional lines and providing operational assistance. The agreement’s principal goal is to protect Florida’s public safety and security, and prosecute successfully criminal violators who threaten or endanger safety and security in Florida or elsewhere. The agreement joins agencies to form a task force with principal operations within the Florida Department of Law Enforcement Tampa Bay operational region. Task force agencies agree to use applicable State and Federal laws to investigate and prosecute criminal cases, and to pursue appropriate civil actions against those involved in criminal acts who are, or are related to, terrorism in or otherwise affecting Florida. The task force will promote responsible sharing of anti-terrorism intelligence and investigative information gathered in Florida with Federal terrorism task forces and with State and local law enforcement. Each agency joining the task force may request and render law enforcement assistance to other agencies, to include but not necessarily be limited to, terrorist attacks, conspiracies or solicitations related to terrorism, terrorism-related law enforcement emergencies, aircraft disasters, fires, and incidents requiring utilization of specialized units such as bomb disposal units or special weapons and tactics units for operational assistance. Task force duties will include, but not be limited to, collecting and disseminating terrorist-related intelligence and investigative information, participating in emergency responses to terrorist incidents, identifying and seizing terrorist-related assets that are subject to forfeiture, and improving Florida’s ability to detect and prevent potential terrorist threats. Chapter 23, Florida Statutes authorizes mutual aid agreements between law enforcement agencies for rendering voluntary assistance of a routine law enforcement nature to one another across jurisdictional lines and providing operational assistance. The agreement’s principal goal is to protect Florida’s public safety and security, and prosecute successfully criminal violators who threaten or endanger safety and security in Florida or elsewhere. The agreement joins agencies to form a task force with principal operations within the Florida Department of Law Enforcement Tampa Bay operational region. Task force agencies agree to use applicable State and Federal laws to investigate and prosecute criminal cases, and to pursue appropriate civil actions against those involved in criminal acts who are, or are related to, terrorism in or otherwise affecting Florida. The task force will promote responsible sharing of anti-terrorism intelligence and investigative information gathered in Florida with Federal terrorism task forces and with State and local law enforcement. Each agency joining the task force may request and render law enforcement assistance to other agencies, to include but not necessarily be limited to, terrorist attacks, conspiracies or solicitations related to terrorism, terrorism-related law enforcement emergencies, aircraft disasters, fires, and incidents requiring utilization of specialized units such as bomb disposal units or special weapons and tactics units for operational assistance. Task force duties will include, but not be limited to, collecting and disseminating terrorist-related intelligence and investigative information, participating in emergency responses to terrorist incidents, identifying and seizing terrorist-related assets that are subject to forfeiture, and improving Florida’s ability to detect and prevent potential terrorist threats. In response to a question, Police Chief Klein said there is no cost to the City associated with this item, which is specific to incidents of terrorism and not related to the separate Statewide Mutual Aid Agreement. PR PARKS AND RECREATION Approve the expenditure of $90,000 from Recreation Facility Impact Fees for the construction of a dog park at Crest Lake Park. The City has had numerous requests from residents to construct a dog park in Clearwater. Staff has considered several locations for a citywide dog park and recommends Crest Lake Park. Staff has met with Skycrest residents and polled residents living near Crest Lake Park. The majority of residents support construction of a dog park in the current location of the playground. The playground will be relocated to a more central location, closer to the restrooms for more convenient use by parents and children. Recent surveys and public meetings regarding the Parks and Recreation Master Plan indicate dog parks are needed in Clearwater. Pinellas County plans to install dog parks in several of their parks, which can be used by City residents. Staff recommends locating the dog park in the SW corner of the park. The dog park will have three fenced areas for different sized dogs, dog poop stations, an irrigation system, landscaping to screen the park from the road and residents, benches, water fountains for people and dogs, signs, trash cans and other park amenities. Construction will be completed by the fall of 2002. In response to a question, Parks & Recreation Director Kevin Dunbar said dog owners will be responsible for clean up. The irrigation system will minimize odors. In response to a question, the City Attorney said the City will have no more liability for dog bites than in a normal park. It was recommended a disclaimer sign remind patrons they enter at their own risk. The City Manager said the City will clean the park if dog owners are negligent. It was hoped grass will be maintained in the dog park. In response to a suggestion that another dog park be opened in Countryside, Mr. Dunbar said staff is waiting for the County to firm its plans for north County. In response to concerns, Mr. Dunbar said to help parents, the playground is being moved closer to the rest room, which is locked at 7:00 p.m. Approve a contract to purchase real property legally described as Lot 1, The Clearwater Collection Second Replat, according to the plat thereof, Public Records of Pinellas County, Florida, commonly known as 21870 U.S. Highway 19, from Home Depot U.S.A. for $3,925,000, authorize acceptance of the deed. The City plans to construct a Community Sports Complex that will host Philadelphia Phillies spring training and other City special events, and has evaluated sites. Initially, the complex was to be located on property acquired from St. Petersburg College until geo-technical tests indicated cavities and voids in the underlying limestone, which would increase construction costs significantly. That consideration along with concerns of nearby residents and landfill issues led the City and Phillies to agree mutually to seek another location. The property known as the Home Depot site, in the Clearwater Collection Shopping Center, was considered immediately as an alternative location due to its increased visibility, access to US 19N, and its location directly behind the Carpenter Training Complex. A property appraisal, performed by Suncoast Appraisers on January 30, 2002, valued the subject property at $3,152,000. A second appraisal, performed by James Millspaugh & Associates, Inc. on February 5, 2002, valued the subject property at $3,350,000. Both appraisals considered the overpass to be constructed on US 19N at Drew Street. Staff believes the parcel’s value to the proposed project justifies the purchase price as provided in the subject contract. Closing of this purchase is anticipated on or about August 30, 2002. Funding for the $3,925,000 purchase: 1) $1.7-million - potential additional bonding proceeds above previous estimates; 2) $1.5-million - reduction in City’s participation of the capital portion of this project, agreed by the Phillies; 3) $475,000 - remaining in capital project; and 4) $250,000 - City site work now included in construction scope. The City and Home Depot have agreed to a contract provision that allows for $75,000 of the purchase price to be held in escrow and returned to the City with interest, when presented with evidence of the purchase of $250,000 in miscellaneous materials from Home Depot in conjunction with construction of the stadium. This provision results in a final purchase price of $3,850,000 for the Home Depot property. The Phillies have agreed to facilitate this provision and assist the City in obtaining the lower purchase price from Home Depot. This issue will be addressed formally with the Phillies in the upcoming amendment to the Development Agreement. The amount of proceeds from the bond issue depends on the bond market. Should the bonds not yield the anticipated proceeds after deducting issuance cost, the Parks and Recreation Department will bring forward an agenda item requesting supplemental funding from another source. In response to a question, the City Attorney said the City’s list of appraisers is a result of the RFP (Request for Proposal) process. In response to a question, Mr. Dunbar said the County’s appraisal does not reflect construction of the Drew Street overpass. In response to a question, he said $1-million in recreation open space impact fees has been designated to address soccer needs. No concerns were raised by the Phase One environmental investigation. In response to a question, Ms. Simmons said for the past year, the City has received monthly payments from the County and State for the project. She felt comfortable regarding funding, stating bond rates are lower now. In response to a question, Mr. Dunbar said parts of Carpenter Field previously were used as a land fill, but anticipated no problems with the location. In response to a question, the City Manager said the City must purchase this property before proceeding with the Phillies stadium agreement. It was noted the City can abandon this agreement if the Phillies agreement falls apart. It was stated the City will own the $35-million stadium in 30 years, at the end of the bonding period. The Phillies contribution to the City was reviewed. In response to a question, Mr. Dunbar said with proper maintenance, the stadium can have a long life. PLD PLANNING Discussion regarding Proposed Code Amendments. On February 21, 2002, the City Commission reviewed proposed amendments to the Community Development Code and deferred action until additional information could be provided regarding portable storage units and the length of time they would be allowed to be placed on property during emergency repairs, signs at elevated intersections, and vending machines. The City Commission also requested a comparison of the 1992, 1999, and proposed changes to the sign ordinance, as well as a listing of comments received from citizens and board members during the public input process. Planning Director Cyndi Tarapani said the CDB (Community Development Board) had discussed proposed code amendments during two public hearings and has scheduled a work shop related to signs. Staff proposes permitting storage units to be placed on property during emergency repairs for 15 days, with a 15-day extension if needed. Staff proposes permitting properties along elevated intersections to have signs that are 14 feet above the highest point of the road, regardless of where the business is located along the elevated roadway. Regarding vending machines, staff recommends limiting the amount of signage allowed on the front of vending machines to 35% of the front of the machine, including the selection buttons. In response to a question, Ms. Tarapani said staff has not discussed this issue with storage unit businesses. Staff will do the education process following approval. The intent is to limit the time portable units are in a home’s front yard. In response to a concern, the City Manager said the Code approaches the dumpster industry differently. Concern was expressed 30 days may not be enough time for a resident to address an emergency. In response to a question, Ms. Tarapani said the definition of an emergency defaults to Webster’s Dictionary. Concern was expressed the proposal establishes a double standard for portable units and dumpsters. Additional information was requested regarding if recommended time period was adequate. Concern was expressed the Code contains a discrepancy regarding the protection of specimen tree stands. Ms. Tarapani said not all trees in stands are specimens. It was suggested a stand of trees on the Clearwater Mall property could be preserved. Staff will provide photographs of a specimen tree stand on the Connelly property. In response to a question, the City Attorney said it would not be appropriate for Commissioners to participate in discussions at CDB meetings. She recommended they share their concerns at City Commission meetings or work sessions. It was recommended the City’s sign Code be the same as the County’s by basing signage on the length of a building’s façade rather than the façade’s total square footage. A worksheet was distributed with suggestions. Ms. Tarapani recommended attached signage relate to the size of a building, and not to its distance from a road. It was felt signage should reflect how much of a structure a business occupies. PW PUBLIC WORKS Presentation - Water Demand Management with Disinfection. Water Superintendent Steve Soltau reviewed the City’s water demand management. Rainfall amounts have diminished since 1997 while water consumption has increased. The City is producing less water and purchasing more from the County. Per capita water usage is below SWFWMD (Southwest Florida Water Management District) limits. The City issued 144 warnings for improper watering between October 2001 and March 2002. Beginning May 1, 2002, the City is changing its disinfection method. The goal is to provide a high-quality, safe supply and meet changing drinking water regulations. Changes relate to Tampa Bay Water changing drinking water sources, new EPA (Environment Protection Agency) regulations, and regulations addressing allowable levels of disinfection byproducts. Benefits of the change will meet new regulations, be safe, is the least expensive option, and provides longer lasting protection. Florida communities using chloramination disinfection include Dade, Broward and several west coast counties. Impacts will result in a slight taste and odor difference, possible temporary “dirty” water complaints, and increased flushing of City water mains. Health community concerns require chlorine and chloramines be removed from water used for kidney dialysis. Fish and aquarium concerns are similar. All aquatic life is affected. Businesses have been informed. Water conditioning agents can be purchased. Related information is available on the City’s web site, in a consumer brochure, in Sunshine Lines, on pet store posters, through the Clearwater Coalition of Homeowners, and in collaboration with Tampa Bay Water and Pinellas County with television, radio, and newspaper advertisements, news coverage, and via a toll-free Hot Line. The related budget for Reservoirs 2 and 3 is $1.4-million and $8.2-million for Reservoir 1, including the water treatment plant. The costs are included in the rate study and the Public Utilities budget request. Public Utilities Director Andy Neff said the City is buying more water from the County while its wells are down for rehabilitation. In response to a question, Mr. Soltau said 2,500 low flow toilets have been installed in the City since August 1, 2002. He hoped residents will not notice the difference with City water after the system is flushed. Approve Work Order for $132,840 to Tampa Bay Engineering, Inc. (TBE) to conduct site assessment and remediation activities at the "Former Clearwater Seafood" site located at 37 Causeway Boulevard. In 1981, petroleum contamination was discovered during removal of underground storage tanks at the Clearwater Seafood Restaurant property, a former retail service station. The State completed a Contamination Assessment in 1995, just prior to the termination of the State’s reimbursement program. At that time, the estimate of $375,000 prevented the City from completing site remediation, and the site was placed on a State list to await future funding opportunities. This City-owned property, at the northwest corner of the Clearwater Marina, is leased currently to Clearwater Seafood, dba Crabby Bills Restaurant. In June 1999, the City hired TBE (Tampa Bay Engineering, Inc.), a State Approved Contractor, to conduct an assessment and submit an application to FDEP (Florida Department of Environmental Protection) PAC (Pre-approved Advance Cleanup) program. The PAC program awards State funds to assist with remediation of petroleum-contaminated sites. Based on laboratory results obtained during the PAC assessment, site remediation was estimated at $324,000, and is expected to take approximately 5 years. In October 1999, the City was awarded funding based upon our proposal to pay $132,840, 41% of the clean-up costs, with FDEP paying $191,160, 59% of the clean-up costs. On February 3, 2000 the Commission approved the PAC Agreement with FDEP, committing the City’s cost share of $132,840 for clean-up. In response to a question, Mr. Quillen said Brownfields funds cannot be used as the site is not in a Brownfields area. CLK CITY CLERK Appoint Commission members as representatives on the Regional and Miscellaneous Boards. Consensus was to appoint representatives: 1) Tampa Bay Regional Planning Council – Commissioner Jonson; 2) Suncoast League of Municipalities Board of Directors – Commissioner Jonson; 3) Performing Arts Center & Theater Board of Directors – Mayor Aungst; 4) Mayor’s Council of Pinellas County – Mayor Aungst; 5) Chi Chi Rodriguez Youth Foundation Board of Directors – Commissioner Hamilton; 6) Jolley Trolley Transportation of Clearwater, Inc. Board of Directors – Commissioner Hamilton; 7) Clearwater Homeless Intervention Project Board of Directors – Commissioner Gray; 8) Tampa Bay Partnership Board of Governors – Mayor Aungst; 9) Tampa Bay Partnership Policy Board – Commissioner Gray; 10) Tampa Bay Estuary Policy Board – Commissioner Jonson; 10) Sister Cities Committee – Commissioner Gray; 11) Emergency Medical Services Advisory Council – Mayor Aungst - term expires May 2003; 12) Pinellas WorkNet Board – Mayor Aungst - term expires September 30, 2002; 13) St. Petersburg/Clearwater Area Economic Development Council – Commissioner Hibbard – term expires October 2002; 14) Pinellas Planning Council – Commissioner Hamilton - term expires December 31, 2002; 15) Pinellas Suncoast Transit Authority – Commissioner Jonson - term expires September 30, 2003; 16) Metropolitan Planning Organization – Commissioner Gray - term expires September 12, 2005; 17) Pension Advisory Committee – Commissioner Hibbard – term expires April 4, 2004, Commissioner Hamilton – term expires April 4, 2004, Commissioner Gray – term expires – April 4, 2003; 18) Long Center Board of Directors – Commissioner Hibbard - term expires September 30, 2003; 19) CRA (Community Redevelopment Trustees) to Downtown Development Board ex-officio – Commissioner Hamilton and Commissioner Gray; and 20) CRA Trustee to Main Street Joint Venture – Commissioner Jonson. CRA appointments will be approved at the next CRA meeting. Scheduling initial Budget Workshop Consensus was to schedule on April 17, 2002 at 1:00 p.m. CA LEGAL DEPARTMENT Other City Attorney Items Authorize City Officials to execute and deliver a Termination and Release of Reverter regarding potential City of Clearwater (the "City") interest in the Oak Cove and Oak Bluff buildings. In April 1989, the City participated, as a secondary lender, in a pool loan program sponsored by the City of Gulf Breeze, Florida (Sponsor), which was funded with the proceeds of the Sponsor’s $100-million Local Government Loan Program Floating Rate Demand Revenue Bonds, Series, Series 1985C (Gulf Breeze Bonds). A portion of the proceeds of the gulf Breeze Bonds was loaned to the City, who through a Series C Secondary Loan Agreement dated as of April 1, 1989, (Secondary Loan Agreement) loaned such proceeds to two Florida not-for-profit corporations, namely Oaks of Clearwater, Inc. and Baptist Estates of Florida, Inc. Pursuant to the terms of the Secondary Loan Agreement, the City made a loan to Oaks of Clearwater, Inc. and Baptist Estates of Florida, Inc. in the initial aggregate principal amount of $27,275,000, with each loan represented by separate notes secured by FHA (Federal Housing Administration) insured mortgages. The loan to the Oaks of Clearwater, Inc. was referred to in the Secondary Loan Agreement as the “Mortgage Loan” and the loan to Baptist Estates of Florida, Inc. was referred to as the “Nursing Home Loan.” As part of the consideration for such loans, the Secondary Loan Agreement granted to the city the right to require the transfer and conveyance of the refinanced projects, consisting of the Oak Cove and Oak bluff buildings to the City. As a condition to this transfer, the City would first have to pay the applicable “purchase option price,” which equaled the principal and interest then due and accrued on the Gulf Breeze Bonds allocable to the loan, the Mortgage Loan, the Nursing Home Loan, and any amounts due under the letter of credit agreements securing the Gulf Breeze Bonds. The Oak Cove and Oak Bluff buildings each were subject to a condominium regime wherein the second floor of each building was owned by Baptist Estates of Florida, Inc. and operated as a licensed skilled nursing home facility and the remaining floors in each building were owned by the Oaks of Clearwater, Inc., who operated such floors as an assisted living facility. In June 1991, the Circuit court for Pinellas County in Case No. 89-19429-07, issued an Order declaring that the properties owned by Baptist Estates of Florida, Inc. and Oaks of Clearwater, Inc., namely the Oak Cove and Oak Bluff buildings, were not subject to ad valorem taxation since these properties were deemed to have been acquired and held by Baptist Estates of Florida, Inc. and Oaks of Clearwater, Inc. on behalf of the City in accordance with an agreement, by which the properties would revert to the City. Although the Court may have misconstrued the terms of the agreement in reaching its conclusions, the agreement referred to by the Court in its Order was the Secondary Loan Agreement. In the early 1990s, the Mortgage Loan and Nursing Home Loan went into default and since such loans were insured through FHA and GNMA (Government National Mortgage Association), the principal and accrued interest on the loans were prepaid with proceeds of the GNMA mortgage insurance to the Trustee for the Gulf Breeze Bonds. As a result, the Gulf Breeze Bonds relating to the City’s loan pursuant to the Secondary Loan Agreement were paid and redeemed in the early 1990s. Notwithstanding the payment of the gulf Breeze bonds, the underlying FHA insured mortgages remained outstanding and unpaid. Through the mid 1990s, the City and its counsel cooperated with FHA in various attempts to work out the loan defaults. Unfortunately, such work out programs were not successful. In the late 1990s, FHA sold the underlying Mortgage Loan and Nursing Home Loan and their corresponding mortgages within a pool of other FHA insured defaulted loans in an auction sale to Beale Bank, Dallas, Texas. In 1998 and 1999, the City participated with BEF, Inc., the successor by merger to both Oaks of Clearwater, Inc. and Baptist Estates of Florida, Inc., in its efforts to refinance the Oak Cove and Oak Bluff buildings and satisfy the underlying FHA mortgages now owned by Beale Bank. The tax-exempt refinancing efforts ceased at the end of 1999, but BEF and its financial advisors continued to seek a conventional refinancing throughout 2000 and 2001. These efforts resulted in a sale of the Oak Cove building to the Church of Scientology in late December 2001. As part of that sales transaction, BEF and Beale Bank first consolidated the Mortgage Loan and Nursing Home Loan into a single consolidated mortgage loan, and then bifurcated that mortgage into two mortgages, one secured by the Oak Bluff building, which is still owned by BEF, and one secured by the Oak Cove building, which then was sold to Scientology. As part of the sale of the Oak Cove building, the buyer paid off and satisfied the restated consolidated mortgage debt to Beale Bank, which encumbered the Oak Cove building. In conjunction with the sale of the Oak Cove building to the Church of Scientology, the BEF consolidated mortgage note to Beale Bank again was restated, resulting in a $10-million first mortgage note to Beale Bank with a $25-million second mortgage note to a private individual. The reverter rights granted by the Secondary Loan Agreement to the City entitled the City to acquire ownership of the properties owned by BEF upon payment in full of the original outstanding FHA insured mortgage debt. Since the FHA insured mortgage debt has been in defa8ult since the early 1990s, it has continued to accrue interest, which generally has remained unpaid over the years, resulting in a total debt on these properties far in excess of their fair market value. With the sale of the Oak Cove building to Scientology and a release and satisfaction of the FHA mortgage note in conjunction with such sale, the City’s rights to exercise its reverter in relationship to the Oak Cove building effectively terminated in December 2001. However, a cloud on the title may still exist as a result of the final judgment entered in 1991 by the Circuit Court in Pinellas County. The City’s reversionary rights to the Oak Bluff building may or may not remain viable and enforceable following the various restatements of the original FHA mortgage. Even if such reverter rights currently exist, the cost of exercising that right, at a minimum of $35-million, far exceeds the appraised value of the oak Bluff building. Although the City does not have a current appraisal on the Oak bluff building, the appraisals done in 1999 in conjunction with the refinancing reflected an approximate range in fair market value of the Oak Bluff building of between $7-million and $12-million. To remove a potential cloud on the titles to both the Oak Cove and Oak Bluff buildings, and to remove the final vestiges of the City’s involvement with these properties, it is necessary to terminate and release any remaining rights to the City to cause a reversion of either building to City ownership. Authorizing the execution and delivery of the Termination and Release of Reverter would remove completely the City’s involvement in the two buildings. Although the Oak Cove building has been placed back on the tax rolls as a result of the sale to Scientology and satisfaction of the underlying mortgages, it is uncertain whether the Oak Bluff building remains exempt from local ad valorem taxation. Removing the City’s right of reverter would eliminate the historical basis for exemption of that property from the ad valorem tax rolls. The City Attorney reported the City’s bond counsel has recommended this action. In response to a question, she said the properties recently changed hands. The bonds defaulted several years ago. Staff will report on the properties’ purchase price. In response to a question, the City Attorney said the City is not interested in negotiating the purchase of the properties. The reverter must be executed for the properties to return to the tax rolls. Nursing home floors would remain tax exempt if used for that purpose. Consensus was to pull this item from the Aril 4, 2002, agenda and to schedule it for the April 18, 2002, meeting. Commission Discussion Items Courtney Campbell Causeway Traffic Light (Jonson) Commissioner Jonson said Clearwater Christian College has requested FDOT (Florida Department of Transportation) do a traffic study to justify a traffic signal at its access point to SR 60. The Police Chief has recommended limiting traffic to the beach to right-in, right-out. The City Attorney said according to the City’s agreement with FDOT, Clearwater must keep the beach open between dawn and 11:00 p.m. Public Works Administrator Mahshid Arasteh said FDOT requires all traffic signals to meet a warranty study. While college traffic alone does not meet a signal warrant, one might be warranted if the college and beach accesses were aligned across from each other. She estimated moving the beach entrance would cost $80,000. It was suggested beach traffic could be routed to exit at the pollution control plant. Staff will meet with school representative tomorrow. The City Manager said the school is unwilling to pay for the study. Concern was expressed signal lights further east are at intersections with less traffic. Ms. Arasteh estimated it would cost $7,500 for a consultant to look at options for addressing this concern. Consensus was to proceed. State Billboard Legislation (Jonson) Commissioner Jonson said the FLC (Florida League of Cities) has requested the City send a letter to the Governor requesting he veto the billboard and the police prescription legislations and recommended a letter be prepared for the Mayor’s signature. It was noted the billboard legislation contains an exception for Pinellas County and Clearwater, which is favorable to the City. It was stated the FLC has recommended the bill be vetoed as it does not protect other cities. Concern was expressed the City not alienate the City’s legislative delegation, who supported the City’s exemption. The City Attorney said if Granite State wins its suit against the City to strike Clearwater’s sign code, the exemption in the legislation would no longer protect the City. Concern was expressed the proposed legislation would affect negatively many large cities in the State. It was felt other cities would not fault Clearwater for remaining silent on the issue, considering the City’s exception in the legislation. In response to a comment, City Clerk Cyndie Goudeau said the City had hired a lobbyist to include language in the bill that exempted Clearwater. The majority opposed sending a letter to the Governor requesting he veto the Billboard Legislation. The prescription bill provides that should a police officer contract heart and/or lung disease, it will be presumed to be job-connected. Consensus was to send a letter to the Governor requesting he veto this bill. Other Commission Action Jonson questioned the status of the Courtney Campbell Causeway scenic highway document. The City Manager said it has been signed. Jonson presented a photograph of a specimen tree stand. Gray indicated the MPO’s proposal regarding transportation impact fees would be discussed Thursday night. Gray reported donations for Pinellas Cares, 211, will be collected at City Hall through Saturday, April 6, 2002. Adjourn The meeting adjourned at 1:11 p.m.