06/13/2005CITY COUNCIL WORKSESSION MINUTES
CITY OF CLEARWATER
June 13, 2005
Present: William C. Jonson Vice-Mayor
Hoyt P. Hamilton Councilmember
Carlen Petersen Councilmember
John Doran Councilmember
Absent: Frank Hibbard Mayor
Also present: 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 1:00 p.m. at City Hall.
To provide continuity for research, items are in agenda order although not necessarily discussed in that order.
Presentations
Service Awards
Seven services awards were presented to City employees.
Glenn N. Daniel, Public Utilities, was presented the June 25, 2005, Employee of the Month award.
Certificates for completion of Supervisory Training
Certificates were presented to staff who successfully completed supervisory program training.
The Council recessed from 1:16 p.m. to 1:19 p.m. to meet as the Pension Trustees.
Budget Office
Pass on first reading Ordinances #7464-05 and #7465-05, amending the City's fiscal year 2004/05 Operating and Capital Improvement Budgets at mid-year.
Budget Director Tina Wilson reviewed the request. The FY (Fiscal Year) 2004/05 operating and capital improvement budgets were adopted in September 2004 by Ordinances #7338-04 and #7339-04.
Section 2.521 of the City's Code of Ordinances requires that the City Manager prepare a quarterly report, detailing income and expenditure estimates, collections, explaining significant
variances, as well as the financial status of all active capital improvement projects.
The Mid Year Budget Review, in accordance with the City Code of Ordinances, is based on six months of activity (October, 2004 through March, 2005) in this fiscal year. The report comments
on major variances, as well as documents all proposed amendments.
Significant Fund amendments are outlined:
General Fund
General Fund revenues and expenditure amendments reflect a net increase of $1,980,690.
The major reasons for the overall General Fund expenditure increase include the appropriation of prior year retained earnings as follows: $1,085,180 for the Fire Department for IAFF
(International Association of Fire Fighters) contract initiatives, retirement and severance payouts; $428,820 for shutters for Police Headquarters; $46,260 for legal assistance with
contract negotiations, $114,980 to fund positions of architect, two fire inspectors, and a construction inspector in Planning and Development Services, and $11,390 for purchase of emergency
generators.
In addition, the Police and Fire Departments, Parks and Recreation, and Public Works administration all reflect proposed budget increases totaling $339,010 for expenditures directly
related to hurricanes Jeanne, Frances, and Charley that were funded in the current budget year. All of these expenditures are offset by a revenue reimbursement from FEMA (Federal Emergency
Management Authority).
All of the above amendments have been approved previously by the Council, with the exception of the Fire retirement and severance payouts, and budget increases due to hurricanes.
General Fund Reserves
To ensure adequate reserves, the City Council’s policy reflects that General Fund unappropriated retained earnings of 8.5% of the City’s budgeted General Fund expenditures must be maintained
as a reserve to guard against future emergencies.
With the closing of the year-end 2004 books, and the allocation of reserves noted above, estimated General Fund reserves at mid year are approximately $11.1 million, or 10.8% of the
current year’s General Fund budget, exceeding City reserve policy by almost $2.4 million.
Significant amendments to other City Operating Funds are noted:
Stormwater Fund
Stormwater amendments include the accrual of $376,780 if needed to fund the legal settlement with Pinellas County School Board, which is offset with the allocation of Stormwater Retained
earnings. This accrual had been accounted for in the recent rate study. In additional, expenditure amendments include approximately $135,000 for contractual services for the stormwater
portion on maintenance costs for lake and pond projects. Both of these amendments were accounted for in the recent rate study.
Gas Fund
Budget amendments to the Gas Fund total $4.8 million due to the increase cost of fuel, and the increase is offset by a budget amendment recognizing increased gas sales.
Solid Waste Fund
Amendments to Solid Waste Fund expenditures total $380,830, and primarily reflect budget increases to personnel, garage services, and dump fees as a direct result of the hurricane season.
The amendments are offset by a reimbursement from FEMA as well as an increase in other collection revenue.
Recycling Fund
Recycling amendments reflect a $92,640 increase primarily due to increased recycling activity and higher than anticipated fuel prices. This increase is offset by a revenue increase
in the sale of recyclables. In addition, grant revenue from Pinellas County is recognized in the amount of $58,690 to fund a Special Program project on a reimbursable basis to support
and expand the recycling program and recycling education efforts.
Marine & Aviation Fund
Mid-year amendments reflect higher than anticipated expenditures, primarily for gas and oil costs in the amount of $200,000. These cost increases are offset by a like increase in sales
revenues from fuel sales.
Parking Fund
Parking Fund amendments at mid-year reflect an increase of $220,000 to recognize the cost of collection processing from Pinellas County and a transfer of $125,000 to the General Fund
representing anticipated parking fine revenues in excess of enforcement/collection expenditures. The budget increase is offset by increases in parking fine revenues. In addition, the
Parking Fund recognizes the return of $1.4 million from the capital improvement fund with the closing of the Pelican Walk Parking Garage project.
General Services Fund
The General Services Fund budget recognizes an increase of $28,180 for costs directly tied to the operations of the “projects crew” providing services to specific projects. These costs
are offset by like revenue provided for the cost of services. In addition, the Fund recognizes the reimbursement of more than $13,000 of revenue from FEMA representing the reimbursement
for hurricane expenditures last fall.
Garage Fund
The Garage Fund budget recognizes an increase of $120,000 for the purchase of fuel and parts that have exceeded anticipated budgeted costs. The increase in fuel and parts is offset
by revenues passing back these costs to the user departments.
Central Insurance Fund
Budget amendments in the Central Insurance Fund reflect the return of the $1.1 million transferred earlier in the year to the Special Program Fund to provide funding for storm related
damage and repair. The City has been reimbursed from FEMA for expenditures related to last summer’s hurricane season, and these funds can now be returned to the Central Insurance Fund.
Capital Improvement Fund
The amendments to the Capital Improvement Fund total a net budget increase of $1,736,856. The majority of this increase is directly impacted by several projects previously approved
by the Council including $1.9 million allocated to the Joe DiMaggio land purchase, $428,818 for hurricane shutters for the Police Headquarters, and $400,000 for landscape projects at
Courtney Campbell Causeway and Drew and US 19.
In addition, $1.4 million is returned to the Parking Fund from the Pelican Walk Parking Garage project, which will be closed.
The report reflects one new project not previously approved by the Council. The report establishes a project for the “Document & Agenda Management Replacement” at a budget of $180,363
to replace the current agenda management system. The project is funded entirely by savings in the Official Records and Legislative Services operating budget and project savings in other
capital improvement projects.
A second proposed project increase not previously approved by the Council reflects a budget increase of $318,280 in 2006 bond revenues in the Sanitary Sewer R&R project which brings
this project in line with the rate study analysis recently presented to the Council.
Capital improvement project budget increases previously approved by the City Council: 1) Police Hurricane Shutters - $428,818, approved March 17, 2005; 2) Courtney Campbell Causeway
Landscape Improvements - $150,000, approved April 21, 2005; 3) Drew St & US 19 Overpass Landscape Improvements - $250,000, approved January 20, 2005; 4) Joe DiMaggio Land Purchase -
$1,950,050, approved April 21, 2005; 5) Ross Norton Complex - $52,000, approved April 7, 2005; and 6) Stevenson Creek Implementation Projects - $167,780, approved April 7, 2005.
Special Program Fund
The Special Program Fund reflects a net budget increase of $2,700,448 recognizing over $1.7 million in FEMA reimbursements for emergency expenditures tied to last year’s hurricane season,
$115,500 in grant proceeds from the Juvenile Welfare Board, $535,000 in Special Events funding, and more than $129,000 from police fines and court proceeds to support public safety programs.
Budget Director Tina Wilson reviewed the amendments.
In response to questions, Finance Director Margie Simmons said the City has received all but one small reimbursement from FEMA. Ms. Wilson said staff is budgeting for increased fuel
costs next year and is making related changes to this year’s budget.
A question was raised regarding the recycling fund and Solid Waste/General Services Director Bob Brumback said since the State stopped providing routine recycling grant funds, Pinellas
County has begun to allocate resources to restore some of those funds.
In response to a question, City Clerk Cyndie Goudeau said the current agenda management system and FYI are being replaced.
Ms. Wilson said remaining SR 60 beautification funds will be transferred to another project. Revenues from fines and forfeitures have decreased. As the County has increased the percentage
it retains from ticket fines for court funding, staff is reviewing the feasibility of processing tickets in-house.
Engineering
Approve 3 additional full-time positions (Survey crew).
In an effort to provide additional funds for CIP construction projects, the Public Works Administration (PWA) Engineering Department has determined that project cost savings can be realized
by establishing an additional survey crew. Recent PWA Engineer of Record (EOR) work orders have shown that most land surveying tasks and duties can be performed more economically by
City staff surveyors than by EOR surveying/engineering firms. Inasmuch as consultant survey crews cost from $1,200 to $1,500 per day, it is estimated that cost savings of approximately
40% can be achieved on many projects through the use of a City survey crews.
The addition of this crew will cost approximately $121,000 annually including all City benefits. The initial equipment cost is approximately $50,000, which includes a Chevrolet Suburban
vehicle and various precise land surveying instruments and equipment. The estimated operating cost breakdown for 2005 is $18,200 and for 2006 is $120,980: 1) Personnel 2005 - $12,600,
2006 - $101,900; 2) Uniforms, cell phones, supplies 2005 - $820, 2006 - $ 1,780; 3) Miscellaneous equipment & tools 2005 - $1,500; 4) $750 - $5,000 Machinery & Equipment 2005 - $1,000;
5) Internal Service Charges 2005 - $280, 2006 - $2,200; and 6) L/P debt service 2005 - $2,000, 2006 - $15,100.
Several upcoming CIP projects over the next six years have projected consultant surveying costs of over $500,000 each year. The most recent Water & Sewer and Stormwater Utility rate
studies have projected approximately $95,664,000 of CIP construction projects in the next three years with estimated EOR survey costs of $2,070,000. It is conservatively estimated that
this survey work can be performed by City forces at a rate of 60% of outsourced EOR surveyors, resulting in up to $828,000 savings.
In response to a concern, Assistant Engineering Director Glen Bahnick said attrition could reduce future staff levels.
Planning
Approve the Annexation, Land Use Plan Amendment from the Residential Suburban (RS) (City and County) category to the Residential Low (RL) and Institutional (I) category, Zoning Atlas
Amendment from the A-E, Agricultural Estate District (County) and Low Density Residential (LDR) District (City of Clearwater) to the Low Medium Density Residential (LMDR) and Institutional
(I) Districts (City) for property located at 3280/3290 McMullen-Booth Road.
The City Attorney reported the developers requested this item be continued due to a pending lawsuit. In response to a question, she indicated Ashland Heights is being made part of
the development agreement.
Consensus was to continue the item to a date uncertain.
City Manager
Review revised Vision Statement and Elements, and provide direction regarding Proposed Locations and Schedule for Community Visioning Meetings.
On March 2, March 18, and April 8, 2005, the City Council held a series of meetings to revise the City's 20-year vision statement and associated vision priorities. Eleven priorities
were identified, with two additional priorities (Communication, Economic Vitality, and Reinvestment) added following the series of meetings.
The Council agreed that the next step in the process would be a series of public meetings to gain community input and direction on the proposed changes. City Manager Intern Erin Keefe,
Public Communications, and Neighborhood Services have compiled a list of proposed locations for the community meetings, based on proximity to neighborhoods, geographic and logical boundaries:
1) Clearwater Beach Recreation Complex; 2) North Greenwood Recreation Complex; 3) Main Library; 4) Ross Norton Recreation & Aquatic Complex; 5) The Long Center; 6) Morningside Recreation
Complex; 7) Wood Valley Boys & Girls Club; and Countryside Recreation Center.
Because of time considerations (Citizens Academy, Council Meetings) it is recommended that these meetings take place every Tuesday, beginning in September, with a goal of compiling results
and presenting a final vision document by the end of calendar year 2005.
Ms. Keefe reviewed recommendations for additions to the Vision Statement and reviewed the proposed schedule of public meetings. It was recommended that “attainable workforce housing”
be added to statement.
Approve the Interlocal Agreement with Pinellas County to extend the Local Option Gas Tax for an additional ten (10) years for the period of September 1, 2007 through August 31, 2017.
Purpose: The Local Option Gas Tax is used for local transportation problems and for other transportation related expenditures that are critical for building comprehensive roadway networks
by local governments. Projects such as the Drew Street widening and Traffic Calming are partially funded out of the Gas Tax revenue.
History: Pinellas County originally adopted a four cent per gallon gas tax to be effective from September 1, 1985, through August 31, 1995. Effective September 1, 1987, Pinellas County
raised the four cent tax to six cents and extended the collection period from September 1, 1995, through August 31, 1997. The County then extended the six-cent gas tax for an additional
period of ten years, from September 1, 1997, through August 31, 2007.
New Interlocal Agreement: The existing six-cent Local Option Gas Tax Agreement will sunset August 31, 2007. The Pinellas County Board of County Commissioners is recommending extension
of the agreement for an additional 10 years through 2017. In this new agreement, the municipal share has been increased from 25% to 40%. Therefore, Clearwater’s portion has increased
from 4.17% to 6.72% of municipal share.
It was noted this request is for an extension, not an increase in gas tax.
City Attorney
Adopt Ordinance #7445-05 on second reading, amending the Community Development Code; amending Article 6, Nonconformity Provisions, Section 6-109.B, Termination of Status as a Nonconformity;
providing that upon reconstruction of structures, which are nonconforming with respect to density, such reconstruction must retain the current use.
As tourism is the leading economic industry in the City of Clearwater, City leaders became concerned about the conversion of beach hotel properties to condominiums, thus adversely impacting
the tourist industry. Several of these conversions have used the Termination of Status as a nonconformity provision in the Community Development Code (Section 6-109.B) to reconstruct
nonconforming density. On April 21, 2005, the City Council directed the Planning Department to revise this ordinance to deter these conversions. The proposed revision will clarify
that the reconstruction of nonconforming density can only occur if there is no change in use. For example, a hotel use could be converted to a new hotel use or a condominium use could
be converted to a new condominium use, but a hotel use could not be converted to a new condominium use.
Staff is requesting a continuance due to the published date for the meeting being incorrect.
The City Attorney said continuing this item will not affect the effective date to submit applications even though it will precede the adoption date of the ordinance.
Other Council Action
Councilmember Hamilton recommended incentives be developed to encourage the redevelopment of small hotel properties, including increasing density and heights, and encouraging land assembly.
Assistant City Manager Garry Brumback said staff is reviewing options.
Councilmember Doran referenced a letter from Senator Nelson and a newspaper article regarding the proposal to lift the moratorium on drilling in the Eastern Planning area of the Gulf
of Mexico. This item to be discussed Thursday.
Councilmember Jonson commented on remarks made at an Old Florida District public meeting regarding taking away property rights and reviewed the history of zoning in that area.
Adjourn
The Work Session adjourned at 2:33 p.m.