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11/29/2004CITY COUNCIL WORK SESSION CITY OF CLEARWATER November 29, 2004 Present: Brian J. Aungst Mayor Frank Hibbard Vice-Mayor Hoyt P. Hamilton Councilmember William C. Jonson Councilmember Carlen Petersen Councilmember Also present: William B. Horne II City Manager Garry Brumback Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia O. Sullivan Board Reporter The Mayor called the meeting to order at 9:00 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. PRESENTATIONS Certificates for completion of Supervisory Training The Mayor presented certificates to staff that completed the training. Bi-monthly Team Award The Mayor presented the Bi-monthly Team Award to Clearwater Gas System staff. The City Council recessed from 9:07 to 9:45 a.m. to meet as the Community Redevelopment Agency. PURCHASING 1) M/A-COM Private Radio Systems - 30 D28MPX Mobile Provoice Orion 806-870MHZ, 35W radios, accessories and installation kits and D2CP5S Control Unit Systems with accessories at a cost of $118,237.50 and authorize lease purchase funding. 2) Southern Sewer Equipment - 2005 Sterling L7501 truck chassis with Vac-Con sewer cleaner body at a cost of $190,114.50 and authorize lease purchase financing. 3) Petroleum Traders Corp. - Vehicle fuel, unleaded gasoline and diesel, during the period December 17, 2004 through December 16, 2005 at a cost not to exceed $1,400,000. 4) Terra Excavating Inc. - Increase the City Manager's award from $98,000 to $140,000 for emergency pick up and removal of storm debris. In response to a question regarding Item 2, Public Utilities Director Andy Neff said this vehicle replaces one purchased in 1998. In response to a question regarding Item 3, Purchasing Manger George McKibben said under the contract, the City pays the Port of Tampa price, plus a delivery fee. Solid Waste/General Services Assistant Director Rick Carnley said fuel prices are adjusted three times per week. Last year, due to rising costs, the City spent its annual fuel budget within nine months. In response to a question regarding Item 1, Mr. McKibben said the new digital radio systems would be installed in new police cruisers and replacements. FINANCE Adopt Resolution #04-37 establishing the intent to reimburse certain Stormwater project costs incurred with proceeds of future tax-exempt financing. The Stormwater rate study was completed and resulted in the City Council approving an 8% rate increase in FY (Fiscal Year) 2006 and annual rate increases of 3% per year for FY 2007 through FY 2009. These rate increases are sufficient to provide for operations, capital projects, and debt service on bonds. The rate study identified a need for approximately $34.4 million in capital projects from FY 2005 through FY 2009, with bonds to be issued in FY 2006 of approximately $7,223,302 and in FY 2008 of approximately $10,542,926 to fund a portion of the needed capital improvements. The FY 2006 bond issue is expected to partially finance the following projects: 1) Stevenson Creek Estuary Restoration for a projected amount of $5,324,710 and 2) Alligator Creek Drainage Improvements for a projected amount of $1,898,590. The date of issuance will be determined at a later date based on market conditions. The Stormwater Fund will be incurring expenses on these projects prior to the issuance of the bonds. This reimbursement resolution will allow for the City to be reimbursed from the Bond proceeds. In response to a question, Finance Director Margie Simmons said the City groups two years of projects together and issues bonds when projects begin. IRS (Internal Revenue Service) requirements have to be met regarding when the funds can be used. GAS SYSTEM Approve First Amendment to Agreement and Gas Supply and Transportation Agreement with Peoples Gas System; approve the filing of the Joint Petition for the First Amendment to Agreement with the Florida Public Service Commission; approve the Master Marketing Agreement with TECO Partners, Inc.; approve the Developer Agreement for Natural Gas Distribution Service with Connerton, L.L.C.; authorize the appropriate officials to execute same and authorize the Gas System Managing Director to approve future Developer Agreements. Over the past several months, Clearwater Gas System (CGS) has worked with Peoples Gas System (PGS) on acquiring new territory in eastern Pasco County to serve gas to several new residential projects. This territorial agreement will allow for CGS to serve two separate developments, called Connerton & Bexley Ranch, located in Pasco County, as well as several future developing areas, which are projected to include the construction of approximately 20,000 new residential homes and associated commercial development over the next 10-15 years. This land currently is located in the PGS service territory. However, PGS has informed CGS that it will not be able to serve these developments due to capital financial constraints. Therefore, CGS has proposed to serve these developments by amending our existing Territorial Agreement, as filed with the Florida Public Service Commission (FPSC), to reflect a new system boundary to include the Connerton & Bexley Ranch developments, as well as some adjacent properties and access corridors. Once approved, the First Amendment to Agreement will establish approximately 40 square-miles of new service territory for CGS, which will be located between State Roads 52 and 54, east of the Suncoast Parkway and west of Ehren Cut-off (which is located just west of I-75). In order to compensate PGS for the loss in territory, the City also will need to enter into a Gas Supply and Transportation Agreement, which requires CGS to use Peoples’ backbone distribution system on State Roads 52 and 54 and their gas supply to serve the customers located east of the Suncoast Parkway. This will require two master meter sets by PGS and the gas supply service will be billed to CGS on a monthly basis. A separate Master Marketing Agreement will need to be executed with TECO Partners in order to compensate them for the marketing assistance they provided to secure the Connerton & Bexley developments and support CGS’s future marketing needs in this eastern Pasco County territory. CGS has calculated the feasibility for the Connerton & Bexley developments and both satisfy the seven-year payback requirement. In addition, a separate rate ordinance will be brought forward to the Council to provide for the recovery of the additional gas supply transportation costs from PGS for the new CGS territory east of the Suncoast Parkway. A Developer Agreement with Connerton, L.L.C. is required to establish gas service within the Connerton development. It also is requested that the Gas System Managing Director be authorized to execute future Developer Agreements. CGS (Clearwater Gas System) Managing Director Chuck Warrington said the expansion would add 55 square-miles to CGS territory. He estimated 20,000 residences will be constructed in this territory within 20 years and the number of CGS customers will double. In response to a question, Mr. Warrington said Peoples Gas System territory surrounds CGS in Pasco County. CGS will present a strategic plan update in January. CGS desires to extend the pipeline with existing funds and cash flow. He anticipated the agreement to serve the Bexley housing development would be finalized within a month. TECO has not given up its rights to the entire nearby area. While the Connerton housing development plans to open model homes in March, CGS cannot install the necessary five miles of pipeline by that time. TECO has agreed to rotate tanker trucks to provide gas to the development until the CGS pipeline to the subdivision is completed by July 2006, at an estimated cost of $750,000. TECO will bill the City for gas at its large industrial customer rate via meters installed on SR 52 and SR 54. CGS eventually plans to loop its line around the developments and provide backup capability in case of interruption. Rates are protected by the PSC (Public Services Commission) and CGS’ rights to sell gas to these areas are protected for perpetuity. In response to a concern that TECO is walking away from a beneficial market, Mr. Warrington said TECO’s gas division is not well funded and has determined this one-third payback is better than nothing. In response to a question, he said the total benefit of the completed project to the City would be determined in the Strategic Plan. Adopt Resolution #04-34 approving PGP Gas Supply Agreement No. 1 with Florida Gas Utility and necessary documents to accomplish same and authorize the appropriate officials to execute same. The purpose of this item is to approve an agreement with FGU (Florida Gas Utility), which will allow Clearwater to participate in the purchase of long-term natural gas supplies from FGU, which are projected to be at a discounted price relative to the future gas market. FGU currently is working on executing a Gas Production Sharing Agreement with Public Gas Partners, Inc. (PGP), a Georgia non-profit corporation, which is the parent company that will initially consist of eight (8) intergovernmental agencies serving about 130 public gas systems, such as Clearwater Gas, throughout the Southeastern United States. The Gas Production Sharing Agreement will be executed by FGU no later than November 2004. The objective of PGP is to acquire and have a working interest in a multitude of gas wells selected throughout the United States. Once the gas wells are obtained by PGP and flowing gas, FGU then will issue debt in the form of bonds to pay for associated costs to produce and deliver the gas from the wells, to the transmission pipelines, and then to Clearwater Gas System (CGS), as well as other FGU members, in proportion to CGS’ subscribed nominated quantities. On August 23, 2004, FGU’s Board of Directors adopted Resolution #2004-02, which authorizes FGU to approve the Articles & Bylaws of PGP and execute the Gas Production Sharing Agreement with PGP. The Gas Production Sharing Agreement obligates FGU to participate in the acquisition of gas wells acquired by PGP. In turn, FGU contracts out the gas supply from PGP to its members and other contracting municipal agencies. In response to a question, Mr. Warrington said should one party fail, each member utility is required to purchase 25% more gas than subscribed for. MARINE & AVIATION Approve amendment to Chapter 33, Section 33.067 of the Code of Ordinances amending defined areas for no internal combustion motors on Sand Key and pass on first reading Ordinance #7352-04. The City Council passed Ordinance #6878-01 creating a slow speed minimum wake zone, south of Clearwater Pass along Sand Key Beach, adjacent to the Clearwater Community Sailing Center wake zone on November 1, 2001. The State approved the zone and buoys that were installed, delineating the zone, in May 2002. Concerns have grown for the safety of swimmers, fishermen, and sailing class students at the Clearwater Community Sailing Center and on the adjacent beach, due to power driven boats. Staff feels converting the existing slow speed minimum wake zone to a more restrictive non combustion engine zone, will minimize accidents, while allowing existing uses of the Sailing Center and adjacent beach. A stipulation of the State for use of their submerged land to build the Sailing Center docks is that no motorized vessels be permitted use of the facility. An exception to this rule is the chase boats, which accompanies students taking sailing lessons, for their safety. This amendment essentially would extend this restriction to the adjacent beach and keep combustion engine boats further away from inexperienced sailors, swimmers, and fishermen, while providing enforcement authority an ordinance to keep them out of the zone. Initially, the zone will be marked with buoys. In response to a question, Marine & Aviation Director Bill Morris said the MAB (Marina Advisory Board) supports the amendment. Other Sand Key areas are being reviewed for similar protections. The majority of waterways have minimum wake zones. The County will fund and install new markers related to this ordinance. Residents should contact the Marina regarding damaged markers. POLICE Approve an agreement between The Florida Commission on Community Service, commonly referred to as Volunteer Florida and the City of Clearwater, Florida for cash match funding of $52,163 for the period January 1, 2005 through December 31, 2005 for AmeriCorps Clearwater, and approve 12.4 FTE positions, and that the appropriate officials be authorized to execute same. In 2005, the Clearwater Police Department will replace St. Petersburg College as the lead agency and grantee of the AmeriCorps Pinellas Program. Funding cuts rendered smaller programs with the St. Petersburg Police Department and Pinellas County Sheriff’s Office ineffective, resulting in closure of those programs. AmeriCorps Clearwater is designed to foster citizen responsibility, build neighborhood unity, and provide educational opportunities. Each AmeriCorps member provides 1,700 hours annually to promote a safer and friendlier place to live and visit and also serve as a conduit for getting information out to those residents and visitors who are most affected by ongoing changes in the City. The Clearwater Police Department will benefit from the members’ assistance with community policing efforts and the opportunity to mentor and mold the police officers of the future. Fourteen full-time AmeriCorps members and one AmeriCorps Program Coordinator will be assigned to the Clearwater Police Department. AmeriCorps members are considered volunteers who receive a living allowance/stipend of $10,200 per year. The incumbent program manager, currently an employee of St. Petersburg College, will become a City employee with the title “AmeriCorps Program Coordinator.” There is no obligation to keep these positions beyond the grant period. A continuation funding request and application was submitted to The Corporation for National and Community Service for Federal Assistance in the amount of $171,504, and was approved. The Resource Management Committee has reviewed and approved this item. In response to a question, Police Chief Sid Klein said AmeriCorps volunteers have assisted SROs (Student Resource Officers) for Crime Watch duties at City high schools. They also provide safety patrols on the Pinellas Trail and essential help during special events. SOLID WASTE/GENERAL SERVICES Approve an Interlocal Agreement with Pinellas County relating to intergovernmental cooperation for effective post-disaster debris management, debris site monitoring; ratify and confirm piggybacking the county contract with Phillips and Jordan Inc. (P&J), of Robbinsville, NC, effective 9/18/04, for debris removal, reduction, and disposal; ratify and confirm an increase in the P&J contract for additional storm services for $337,000 or a not to exceed total of $400,000; authorize the appropriation of an additional $600,000 from the Central Insurance Fund retained earnings to project 0181-99927 as funding for continued storm related damage, repair and City-wide debris clean-up; and that the appropriate officials be authorized to execute same. In the wake of Hurricane Frances, Pinellas County activated its debris management plan and related contracts for debris management and debris site monitoring. Upon reviewing the County contract with Phillips and Jordan, Inc. (P&J), Solid Waste/General Services (SW/GS) discovered the County contract was much more economical than the contract Clearwater had with Grubbs, Inc. The Legal Department determined Clearwater was not obligated to activate the Grubbs contract. SW/GS then requested, and was granted, emergency approval to piggyback the County contract for debris removal and disposal. The Legal Department then gave Grubbs notice of termination. P&J, who has an excellent record working with FEMA, upon request, committed to provide Clearwater the same type assistance as was provided for in the County contract at the same terms and conditions. P&J also assisted in establishing procedures that would facilitate accountability and FEMA (Federal Emergency Management Authority) reimbursement. The County contract subsequently has been amended twice. Once to include operation of a burn site using air curtain burning and the second to approve open burning when the quantity of debris became too large for air curtain burning. Clearwater will be expected to pay its proportionate share of unreimbursed operating cost for burn site operation. These costs should be minimal compared to normal disposal costs. During September 2004, an emergency purchase order was issued for $60,000 to fund debris removal by P&J for hurricane Frances. In October, P&J continued to remove and burn considerable storm debris from Clearwater for an additional $337,000. On October 21, the Council approved a transfer of $500,000 from the Central Insurance Fund retained earnings to fund the initial costs of storm clean up. At that time, it was unknown what the cost would be. At this time, staff is requesting an additional $600,000. Once the FEMA reimbursement has been received, the department will return these funds to the Central Insurance Fund. This additional appropriation will be processed as a first quarter, FY (Fiscal Year) 2004/05 budget amendment. In response to a question, Ms. Simmons reported the City has spent $0.5-million on debris management. Solid Waste/General Services Director Bob Brumback said the burn site operation saved the City significant money. A total cost has not been determined. The City will pay approximately 5% of post-disaster debris management expenses, sharing costs with FEMA and the State. PUBLIC COMMUNICATIONS Public Engagement Report Public Communications Director Doug Matthews reviewed the following: 1) youth engagement; 2) Town Hall meetings; 3) technology enhancements; 4) public notification systems; 5) 311/Emergency alert systems; and 6) Downtown/beach communication and proposed timelines. Downtown strategies have two tracts: 1) streetscape communications to include printed materials on all aspects of Downtown revitalization, convene a stakeholders’ meeting, and integrate with existing Main Street strategy and 2) voter consent issues to include printed materials on all aspects of Downtown revitalization, conduct series of focus groups throughout the City to define core issues/solutions and prioritize aspects of the plan, develop a timeline /schedule for presentations, have redevelopment conversations in February 2005 with Citizen Academy graduates, and include issues in April 2005 Citywide survey. Council roles related to initiatives need to be defined. Beach communications will begin with a December 6, 2004, stakeholder meeting with developer representatives, resident groups/associations, the CVB (Convention & Visitors Bureau), Chambers of Commerce, then a Town Hall Meeting will be scheduled for January 2005, followed by redevelopment conversations with Citizen Academy graduates in February 2005. In response to a question, Mr. Matthews said while the scope of the proposed communication plan was broadened to consider the entire picture, it continues to be cognizant that communications related to Downtown and beach issues must remain up to date. The City Manager said it is important the plan address all Council member concerns and provide a full view of what they feel needs to be done before it is trimmed and detailed. In response to a question, Mr. Matthews said beach issues would include Beachwalk and changes to Coronado Drive. It was suggested Town Meetings only be scheduled to address specific issues. In reference to the Citizen Engagement Report, concern was expressed its general and specific solutions were mixed with needs, and it was recommended that the plan list priorities and related strategies. The City Manager said the plan will impact staff and requested input regarding Council communication priorities so that resources can be allocated effectively. Discussion ensued with recommendations the Council prioritize strategies they support. Concerns were expressed actions, such as the pending sale of Calvary Baptist Church, will dictate communication priorities and that many projects will occur simultaneously. Discussion ensued regarding priorities, to include Downtown Streetscape, Downtown revitalization, and Beachwalk, with a suggestion that Beach Walk communication efforts be paramount as that project begins before Downtown redevelopment and streetscaping efforts. Support was expressed for including youth engagement as a priority. ENGINEERING Beachwalk 60% design Public Works Administrator Mahshid Arasteh said Beachwalk construction would begin in April 2005. Project design began in November 2002. Work on construction documents is underway. The design project included extensive public involvement including three charettes, an on-site workshop, and numerous meetings with property owners and developers. The next stakeholders’ meeting is scheduled for December 6, 2004. Additional public involvement is planned for a public meeting in January 2005. Richard Claybrooke, of PBS&J, reviewed proposed design elements. In response to a question, he said his firm has worked with Hyatt architects regarding the beach landing of that project’s bridge, however, the City is responsible for the Sundial plaza in front of the hotel property. Six passenger drops-offs are planned along Beachwalk, with each allowing two to three vehicles to be stacked. Congressman Bill Young’s efforts to obtain funding for the project were applauded. Concern was expressed water features close to the sand would be problematic and require ongoing maintenance. Discussion ensued with a recommendation the fountains be removed from the plan. In response to a question, Mr. Claybrooke said during the next phase of the design process, permits will be obtained and amenities, such as lighting and seating, will be determined. It was recommended the design be cognizant of inherent problems related to skateboarders. Some modifications still can be made at the 90% mark. Ms. Arasteh said by then, plans will be finalized regarding the location of utilities, which will be underground. The developer has not designed the concession area, planned adjacent to the bridge’s landing on the beach. Discussion ensued in regard to the sidewalks between the end of Beachwalk and Clearwater Pass Bridge and Ms. Arasteh said the City’s comprehensive resurfacing program would address this area following construction of Beachwalk. Mr. Claybrooke said the Beachwalk project construction budget remains at $15-million, which includes a contingency. The designs are ready for review and include locations for sculptures, which will be chosen during the 90%-100% design phase. The choice of plant materials surrounding the gateway sign will be based on safety concerns. The construction of bumpouts on Coronado is being delayed to provide maximum vehicular capacity on that road during Beachwalk construction, when Gulfview is closed. It was recommended the plan be reviewed to provide some parking for businesses, which will lose back-out parking. The City Manager said the proposed configuration of Coronado is part of the City’s original commitment with the stakeholders. In response to a question, Ms. Arasteh said some back-out parking located on private property would remain. Once back-out parking is removed from the public right-of-way, the City will try and accommodate driveways for Coronado businesses. Reducing the number of lanes to three will slow traffic. In response to a concern, Ms. Arasteh said delivery issues are separate from parking. Award a one year contract to Biological Research Associates, of Tampa for Nuisance & Exotic Control & Maintenance on City Lakes, Ponds, Channels and Immediate Adjacent Transitional Areas in the amount of $93,940, and authorize the appropriate officials to execute same. A request for proposal and Quotes RFP #04-0057-EN was issued on October 6, 2004, for the Nuisance and Exotic Vegetation Control and Maintenance of City Lakes, Ponds, Channels, Gabion Structures, and Immediately Adjacent Transitional Areas. The work scope called for the control of nuisance and exotic species, which impede water flow and/or diminish the habitat value of 28 specified lakes, ponds, channels, gabion structures and immediately adjacent transitional areas. The scope also required that the treatment controls adhere to environmentally acceptable best management practices, and that monthly and an annual report be provided to the City summarizing all activities and proposing recommendations for the following year. Two proposals were received and evaluated based on qualifications and reasonableness of proposed costs. Biological Research Associates provided the most reasonable proposal. The cost for the annual contract is anticipated to be $85,400, with a 10% contingency, for a total contract price not to exceed $93,940. In response to questions, Environmental Manager Terry Finch said the City has had prior experience with Biological Research Associates and staff checks before paying related invoices. Mr. Quillen reported the City had terminated the last contract early because of activity concerns. PUBLIC UTILITIES Pass Ordinance #7321-04 on first reading increasing domestic, lawn water, and wastewater collection utility rates by 7% effective October 1, 2005, with subsequent 6% increases to be effective October 1, 2006, October 1, 2007 and October 1, 2008 and increasing reclaimed water rates by 29.44% effective October 1, 2005, then metering reclaimed water and implementing the proposed reclaimed water rates that are projected to result in a 29.44% increase to the average reclaimed water customer effective October 1, 2006 followed by a 6% increase to those reclaimed water rates effective October 1, 2007, and October 1, 2008. The utility rate increase is needed to provide funding to maintain compliance with debt service coverage requirements supporting the continuation of capital improvement projects needed to sustain the City's utility infrastructure. Infrastructure improvements are needed to maintain compliance with federal regulations concerning water supply and treatment and the wastewater collection system, maintain reliability of the water pollution control facilities due to age of the infrastructure, and to expand the reclaimed water system. Master Plans have been completed for all of the systems in Public Utilities and the capital improvements program has been revised to meet future infrastructure needs. The last rate increase, effective March 1, 2001, provided a series of 7% increases over a 5-year period applicable to water and wastewater rates only. The last rate increase in this approval became effective October 1, 2004. These rates will remain in effect as approved. Burton & Associates has completed a water, wastewater, and reclaimed water utility rate study to cover 5 years of operations. The current study covers the period FY 2005 through FY 2009 and recommends increasing the existing reclaimed water rates in FY 2006, then adopting a new reclaimed water rate structure to be implemented when the City is able to meter reclaimed water, projected to be FY 2007. This would allow for improved equity between reclaimed water customers and water and wastewater customers, since reclaimed water rates have not been increased since 1998, whereas regular increases have been implemented to the water and wastewater rates. This study recommends increasing reclaimed water rates by 29.44% in FY 2006, implementing new reclaimed water rates in FY 2007 that would result in an increase of 29.44% to the average reclaimed water customer, and applying subsequent 6% per year reclaimed water rate increases thereafter (FY 2008 and FY 2009), thus aligning those reclaimed water rate increases with the annual water and wastewater rate increases. By doing so, the overall water and wastewater rate increases from FY 2006 through FY 2009 could be reduced to 6% annually instead of 7%, if the proposed reclaimed water rates are not implemented. Metering of reclaimed water and raising the reclaimed water rates as proposed, lowers the rate of increase to all water and wastewater customers, allows the reclaimed water system to become more self-sufficient over time, provides the possibility of retaining 50% SWFWMD (Southwest Florida Water Management District) grant reimbursements on reclaimed water capital projects, and allows more customers to be connected to the reclaimed water system over time, due to increased demand management. Also factored into the rate study are continued wholesale potable water purchases from Pinellas County at their suggested increased rates. These rates increase from the present $2.30/1,000 gallons to $3.18/1,000 gallons over the timeframe of the study. The last two years reflect information from the County indicating 7% per year wholesale potable water rate increases, due to the County’s proposed blending plant, following 3 years of 10% annual increases. Included in the ordinance changes are user fee schedule changes to align the cost of providing particular services with actual expenses. Some fees were added, some were raised, and some were lowered, based on current costs. A rate restructuring study also is currently underway by Burton & Associates reviewing the water and wastewater rate structures, increasing domestic, lawn water, and wastewater collection utility rates by 7% effective October 1, 2005, with subsequent 6% increases to be effective October 1, 2006, October 1, 2007, and October 1, 2008. In response to a question, the City Manager said he had discussed this proposed increase with the media, but no related stories have been published. PUBLIC SERVICES Approve Change Order No. 1 to Trimax Residuals of Edmonton, Alberta, for the Biosolids Treatment Implementation Digester Cleaning Contract (03-0022-UT) increasing the contract amount by $518,731.91, for a new contract total of $998,508.55 ,and approve a time extension of 90 days for the completion of this work and authorize the appropriate officials to execute same. The City Council previously approved this contract on October 21, 2004, in the amount of $479,776.64. On November 1, 2004, the City and Trimax representatives negotiated and agreed to the value and conditions of Change Order No. 1, which is predicated on revisions to the project criteria by the City in order to facilitate the economical cleaning of the Marshall Street digester. These revisions improve the logistics for the cleaning of the Marshall Street digester and enable Trimax to recalculate and reduce the cost of this project from the original competitive bid. The scope of work for this change order is the same as for the Northeast Plant. The contract time for the Marshall Street Digester shall be 90 days. Trimax requests those unused contract days from the Northeast digester project be allowed to supplement the Marshall Street digester project schedule before liquidated damages are applied, as the original contract allowed 180 days for both digesters. In response to a question, Building Construction Manager Perry Lopez said no additional changes are planned. PLANNING Approve an amendment to the development agreement between the Beachwalk Resort LLC (fka Clearwater Seashell Resort L.C.) and the City of Clearwater, Adopt Resolution #04-35 and approve restructuring of the funding in Capital Improvement Project 315-92267 (Coronado/S. Gulfview Streetscape) by replacing the $2 million General Fund Loan with a $2 million loan from the Central Insurance Fund. The subject site is 1.63 acres and is located at 201 and 301 South Gulfview Boulevard and 230, 300, and 304 Coronado Drive. The CDB (Community Development Board) is scheduled recommended approval of the proposed applications for Flexible Development and Development Agreement on November 16, 2004. When the initial agenda item was approved regarding the additional funding for the Coronado/S. Gulfview Streetscape, it was contingent upon the commencement of this development and anticipated the elimination of the City's responsibility to purchase the property from the developer (for $6 million) if the developer failed to commence construction by March 6, 2006. The elimination of this requirement would have released $6 million worth of funding, $2 million of that being General Fund. Since this $2 million in General Fund money will not be able to be released until March 6, 2006 and the funding for Coronado/S. Gulfview is needed prior to that time, the City will need to replace the $2 million in General Fund money in the Coronado/S. Gulfview project with $2 million in Central Insurance Fund loan until such time as the requirement to purchase the property has been eliminated (March 7, 2006). At that time, a budget amendment will be made to return the Central Insurance Fund money and replace it with General Fund money. The funding for this project will be put in place upon the developer moving forward on their project and depositing the appropriate funds with the City of Clearwater. A quarterly amendment will be processed to reflect the budget at that time. Planning Director Cyndi Tarapani reviewed changes to the development agreement and reported the CDB (Community Development Board) approved site plan amendments, which added residential units, and recommended approval of the development agreement. The hotel has permission to sell sundries from the landing of the bridge. Discussion ensued in regard to hotel parking rates vs. public parking rates and it was indicated hotel rates are higher than charged by publicly owned garages. The developer proposes to provide public parking in a privately-owned garage. Concern was expressed the public will demand more affordable parking rates. It was recommended the Marina property be excluded from the area where the agreement prohibits the City from constructing a parking garage for a period of time. In response to a question, it was indicated the developer had not submitted photograph simulations of the project. Discussion ensued in regard to the difference between a lease and a license, and it was indicated a license does not convey property as a lease does. A detailed license agreement will permit the hotel exclusive use of the landing to sell non-alcoholic beverages, packaged snacks, and beach sundries and provide towels to hotel guests. In response to a question, it was indicated he City would own the entire walkway. ADJOURN The meeting adjourned at 12:58 p.m.