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05/30/2006 CITY COUNCIL WORKSESSION MINUTES CITY OF CLEARWATER May 30, 2006 Present: Frank Hibbard Mayor Carlen Petersen Vice-Mayor Hoyt P. Hamilton Councilmember William C. Jonson Councilmember John Doran Councilmember Also present: William B. Horne II City Manager – departed at 5:01 p.m. Garry Brumback Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Brenda Moses Board Reporter The Mayor called the meeting to order at 1:30 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Presentations Hurricane Aftermath - Art Shand Arthur Shand of Aude, Shand, & Williams, Inc., reviewed the aftermath of Hurricane Katrina in New Orleans and along the Mississippi Gulf Coast. It was stated that it is critical that residents create a personal hurricane plan. The meeting recessed from 1:55 to 2:29 p.m. to meet as the Pension Trustees. Office of Management and Budget Approve the City Manager's recommended Penny for Pinellas (1% Optional Infrastructure Sales Tax) Project List for the ten-year period of 2010 through 2020. The City Manager reported the City’s list of Penny for Pinellas 3 projects is due to the County by August 1, 2006. The Board of County Commissioners will vote on the issue on August 15, 2006. He recommended scheduling a special meeting to finalize today’s discussion. The City’s public communication plan will begin in the fall, with the vote to extend the Penny for Pinellas currently scheduled for March 2007. Assistant City Manager Garry Brumback said projects on the list are properly and adequately resourced. The list focuses on redevelopment and renovation, not new facilities that require additional resources for maintenance and operations. Only the Penny for Pinellas portion of the cost is listed. Projects that can be funded by other sources are not listed. In response to a comment, Mr. Brumback said visitors, as well as residents, pay the Penny for Pinellas tax. Consensus was to schedule a public meeting prior to August 1, 2006, to gather resident input. Council Work Session 2006-05-30 1 Budget Director Tina Wilson reviewed staff’s recommendations. In spring 2007, Pinellas County voters will be asked to approve an extension of the "Penny for Pinellas" optional infrastructure sales tax for a ten-year period, from the year 2010 through 2020. The City Manager recommends a list that represents those projects that best meet the City's needs and take into account the City Council's vision for the community. The recommended list includes City projects totaling $130,910,180, leaving an unallocated reserve of $7,944,820. More than 35% of the funds come from tourists, seasonal residents and non-property owners. It is equitable, as everyone pays their fair share of preserving, protecting, and improving our community. Necessities, such as groceries and medicines, are not taxed. Only the first $5,000 of any single purchase (such as a car) is taxed. According to Pinellas County estimate, the City of Clearwater will receive approximately $138,855,000 of proceeds over the third ten-year period beginning in the year 2010. The City Manager’s list of recommended projects for infrastructure projects during the next ten-year cycle, 2010 to 2020, is detailed below. All of these projects support the City Council’s adopted vision for the City of Clearwater and total $130,910,180: 1) Police Equipment Shelter - $2,833,250; 2) Police Homicide Vehicle - $150,000; 3) Clearwater Beach Station Fire Renovation - $4,147,910; 4) Lakeview Fire Station Renovation - $4,755,560; 5) Countryside Fire Station Renovation - $4,648,460; 6) Downtown Streetscaping - $25,000,000; 7) Highland Ave Widening - Union St to Sunset Point Road - $2,500,000; 8) Bayshore Blvd Realignment North of Drew Street - $2,500,000; 9) Downtown Parking - $6,250,000; 10) Coachman Park Redevelopment - $5,000,000; 11) Youth Sports Fields Renovations & Improvements - $7,000,000; 12) Neighborhood Parks Renovations & Improvements - $5,000,000; 13) Recreation Trails - $3,000,000; 14) Countryside Family Aquatics Center Development - $2,500,000; 15) Municipal Marina Parking Garage - $12,500,000; 16) City-wide Seawall Replacement - $1,250,000; 17) Countryside Branch Library Expansion & Renovation - $6,250,000; 18) East Branch Library Expansion & Renovation - $6,250,000; 19) Library Technology - $1,250,000; 20) New City Hall & Parking Garage - $25,000,000; and 21) City-wide Wireless Mesh - $3,125,000. In response to questions, Police Chief Sid Klein stated the equipment shelter would be hardened and secure, ideally located near Police Department headquarters. The structure potentially could be part of a new EOC (Emergency Operations Center). It was suggested that the Police and Fire departments work to collocate some facilities. Police Chief Klein said the command vehicle, used for homicide vehicular accidents and special events, would cost approximately $150,000 to replace. Staff will provide information on the number of traffic homicides investigated. As Fire Department projects are for reconstruction, not renovation, it was recommended they be listed as such. Staff will report on the cost difference between renovating and reconstructing the subject fire stations. As proposed, the structures will be constructed to withstand category 3 hurricanes, as increased hardening is significantly more expensive. The new structures will have a 40-year life expectancy. Discussion ensured and concerns were expressed the proposed Cleveland Street Streetscaping funding represents 20% of expected Penny for Pinellas funds. It was stated that staff’s proposal invests 47% of anticipated Penny for Pinellas funds in the downtown. Council Work Session 2006-05-30 2 Consensus was for the project to remain on the Penny for Pinellas 3 list but at a reduced amount. Public Works Administrator Mahshid Arasteh said the entire length of Highland Avenue would be widened to three lanes. In response to a question, Ms. Arasteh reported that staff is talking with the City of Safety Harbor to contribute to the Bayshore Boulevard project, which is located partly in that city. It was noted Approximately 300 spaces are planned for Downtown Parking. In response to a question, Parks & Recreation Director Kevin Dunbar said the number of additional staff that will be needed for Coachman Park Redevelopment is an estimate. Mr. Dunbar said new rest rooms are needed for the youth sports fields. The orientation of the fields and parking issues will be addressed. Renovations also are planned for the Joe DiMaggio complex. Mr. Dunbar said the proposed neighborhood parks renovations and improvements could help the City take better advantage of FRDAP grants. In the next 10 to 15 years, staff hopes to develop two new parks in the western quadrant of the City. Mr. Dunbar said the project would replace playground equipment with equipment that meets new standards. Mr. Dunbar said Penny 3 money would be used to match grants for recreation trails. Mr. Dunbar reported that Countryside is the only area of the City without an aquatics center. He anticipated that user fees also will cover maintenance and staffing costs. Ms. Arasteh suggested this 450-space parking project could be developed as a public/private partnership at the Municipal Marina. Discussion ensued regarding locations for a beach parking garage. Consensus was to title the project Beach Parking Garage and not tie it to one location. Ms. Arasteh said no other dedicated funds can be used for seawall construction. Library Director Barbara Pickell said the Countryside and East libraries are the City’s oldest facilities, with matching floor plans and similar problems. Countryside is the busiest library in the City. Technology is necessary to avoid increasing staff. Proposed costs do not include technology upgrades. Consideration of joining the East Library with a St. Petersburg College facility would not lower City construction or maintenance costs. The City Manager said the idea seems to work elsewhere as the public is provided access to college collections, while students have access to City materials but a final decision has not been made. A new City Hall will be needed before 2020. As proposed, the associated parking garage would have 384 parking spaces, with 200 of them public. The proposal does not assign any value to the sale of the current site. Council Work Session 2006-05-30 3 Information Technology Director Dan Mayer said the wireless mesh could be public/private or completely private. Significant technological changes are anticipated during the next decade. The City may provide an incentive for initial installation costs to cover the entire City. He anticipates the service will be commercially run and operated. It was recommended that the Penny for Pinellas 3 list include projects a senior center, traffic calming, other infrastructure elements, and money for Ruth Eckerd Hall. Ms. Wilson said traffic-calming projects are budgeted at $800,000 annually through 2012. City Engineer Mike Quillen said all promised traffic-calming projects would be completed by that time. Consensus was traffic-calming be included. In response to a question, Mr. Dunbar reported Ruth Eckerd Hall requested $4 million, mostly for parking, and to expand its education program. Consensus was to include some funding for Ruth Eckerd Hall. Staff is moving forward with a needs assessment for a senior center. Discussion ensued and it was noted there is a trend away from centralized facilities. Consensus was to include funding but to use a term other than “center.” In response to a suggestion that water quality projects be included, Ms. Arasteh said use of Penny for Pinellas funds would result in little change to necessary rate increases for individual residences. Ms. Wilson reported other sources are available for these projects. The City Council recessed from 5:01 to 5:11 p.m. Consensus was to schedule an off site public meeting on Penny for Pinellas 3 projects for June 28, 2006, at 6:30 p.m. A public budget meeting also will be scheduled. Parks and Recreation Approve first amendment template agreement to be used with various radio stations that use City venues for their musical and entertainment productions and authorize the City Manager or his designee to execute same. Over the past two months, staff has approached the City Council to approve two “First Amendment to Radio Station Agreements” for “Wildsplash” and for “Smooth Jazz.” These amendments were needed in order to cover several key concerns regarding the events. For the long-term operation of events, staff is proposing that a standard amendment be approved so that all of the City requirements are being met. Several of the key issues addressed in the amendment are as follows: 1) Adherence to City Sound Policy and need to complete the festival by a certain time; 2) A limit to the number of tickets to be sold for the event. (This varies with type of concert and venue, however it is limited to 12,500 at all Coachman Park events.); 3) No lewd, indecent, or obscene conduct or language shall be allowed in activities or events presented by the radio representatives, which include encouraging illegal drug usage and the use of obscene words. A $2,500 per occurrence fine shall be placed on the radio station for the use of the “F” word; 4) Clarification that the City is in control of the venue and may enter into any structure or interrupt or terminate the event if necessary; 5) Clarification of Ticketmaster sales; 6) Sales Tax responsibilities both for the City Council Work Session 2006-05-30 4 and the radio station. The City Manager or his designee shall execute future amendments using the approved template. Consensus was to broaden the definition of the “F” word to include all derivations. Concern was expressed that the City cannot hold acts accountable to the City’s sound policy if one is not available in writing. Additional information regarding the sound policy was requested. Engineering Award a construction contract to Westra Construction Corporation, of Palmetto, Florida for the Nitrate Recycle Improvements Project (05-0023-UT) in the amount of $1,774,300 which is the lowest responsible bid received in accordance with plans and specifications and authorize the appropriate officials to execute same. The Nitrate Recycle Improvements Project was identified as one of the Capital Improvements Projects recommended in the Water Pollution Control Facilities Infrastructure Assessment and Capital Improvements Implementation Plan, completed by Jones, Edmunds & Associates in October of 2004. The proposed modifications to the nitrate recycle systems at the Marshall Street and Northeast Advanced Pollution Control Facilities (APCFs) are intended to improve the efficiency of biological nitrogen removal at both APCFs. By redirecting the nitrate recycle flows to the existing fermentation tanks, the wastewater treatment process will become more efficient. Further, based on biological modeling of the treatment plants performed during the WPC Master Plan, these modifications will allow the treatment plants to better achieve effluent levels of total-nitrogen less than the permitted limits under virtually all flow scenarios. This proactive measure will better assure regulatory compliance with the plants operating permits and reclaim the design capacity of the plants in preparation for anticipated increases in flow over the next twenty years. It is anticipated that construction will be accomplished in 300 days, starting 30 days after notice to proceed and being complete prior to the end of April 2007. Jones, Edmunds & Associates, an engineer of record with the City was responsible for the design of the improvements. The final engineer’s estimate was $1,133,000. Westra’s low bid was 56% over this value, leading the City, JEA, and Westra to review the technical aspects of the scope of work in an effort to determine if the construction would meet the intent of the design. There were two primary reasons for the high cost. The first was that the contractor determined that to install some components a larger crane would be needed for a longer duration than anticipated by the design consultant. The second reason was that the contractor is required to assume the risk of keeping the treatment plant in operation while the treatment tanks are being replaced. This requires them to coordinate the plant operations schedule and staff activities. After a review of alternatives, it is Jones Edmunds recommendation that the City proceed with award to Westra. City staff concurs with this decision. Resolution 04-36 was passed on December 16,2004, establishing the City’s intent to reimburse certain project costs incurred with future tax-exempt financing. The projects identified with 2006 revenue bonds as a funding source were included in the project list associated with Resolution 04-36. In response to a question, Engineering Manager Rob Fahey said staff has confidence in Jones, Edmunds & Associates. A significant percentage of the cost covers materials and equipment. Other bids were higher. Council Work Session 2006-05-30 5 Pass Ordinance 7649-06 on first reading increasing the residential and commercial Stormwater Utility rate to $9.91 per Equivalent Residential Unit (ERU) beginning 10/01/2006, to $10.50 per ERU beginning 10/01/2007, to $11.13 per ERU beginning 10/01/2008, to $11.80 per ERU beginning 10/01/2009 and to $12.51 per ERU beginning 10/01/2010. The Stormwater Utility was established effective 1991. On August 6, 1998, Ordinance 6309-98 was passed increasing Stormwater Utility rates from $4.00 per ERU (Equivalent Residential Unit) beginning October 1, 2998, to $4.73 beginning October 1, 2002. Between 1998 and 2001, staff completed watershed management plans for all major watersheds in the City. These plans identified numerous residences and businesses subject to flooding in a 100-year storm event. These were combined with a list of flood prone residences compiled based on staff knowledge and citizen complaints.· Based on this information, it was apparent that the existing stormwater utility rates would not be sufficient to address these flood problems in a timely manner, while also providing for necessary maintenance of the existing stormwater infrastructure. · Consequently, on November 15, 2001, Ordinance 6855-04 was passed increasing stormwater utility rates from $6.13 per ERU beginning October 1, 2001 to $9.35 beginning October 1, 2005. ·Due to the rate increases adopted in 2001, several significant flood control and water quality projects have been completed or are underway, including: Prospect Lake Park; Myrtle Avenue Road and Drainage Improvements; Kapok Wetland & Floodplain Restoration; Glen Oaks; North Beach Drainage; Lake Bellevue and Repair & Replacement Projects. The City’s utility rate consultant, Burton and Associates, has completed a revenue sufficiency and financial forecast analysis following the completion of third year of operations under the rates approved in 2001. At that time, due to operational savings and additional grant funds received, this analysis showed that only minimal rate adjustments were necessary through the year 2009. On August 5, 2004, the Council approved a series of 3% rate increases to be effective October 1, 2006, ($9.63), October 1, 2007 ($9.92) and October 1, 2008 ($10.22) with no recommended change to the previously approved rates of $8.65 and $9.35 effective October 1, 2004 and October 1, 2005 respectively. · Since 2004, significant increases in project materials and labor costs have occurred due to shortages caused by exceptional construction needs in China and the reconstruction effects of Hurricane Katrina and others. Due to these increases, the expected cost of the Stormwater Utility projects was reviewed and it was determined that an across the board increase of 25% was needed in addition to 5% estimated inflationary increases each year thereafter. Burton and Associates has just completed a rate study update incorporating the estimated increase in project costs. As a result of the study findings, staff is requesting 6% rate increases to replace the previously approved 3% increases to be effective October 1, 2006 ($9.91), October 1, 2007 ($10.50) and October 1, 2008 ($11.13) and additional 6% increases to be effective October 1, 2009 ($11.80) and October 1, 2010 ($12.51). · Certain areas of the Stormwater Utility operating budgets have experienced significant increases in insurances and pension contribution requirements. Pension cost increases due to actuarial studies have been 38%, 18%, and 35% for FY (Fiscal Year) 2004 to FY2005, FY2005 to FY2006 and projected FY2006 to FY2007, respectively. Increases for the same periods for workers compensation insurance have been 15%, 134% and 57%, for property insurance, (28%), 32% and 29% and for major medical insurance, 29%, 8% and 2%. The total amount of Council Work Session 2006-05-30 6 these four operating costs were $401,000 for 2004, $492,000 for 2005, with the budget for 2006 at $599,000, and the projected budget for 2007 at $727,000. In addition to funding for continuing approved projects, staff recommends the following new projects for Council funding approval: Stormwater Facilities Maintenance and two lease purchase projects, TV Truck and Camera in FY2010 and a VACCON Sewer Cleaner in FY2011. ·Individual projects will be presented to the Council for development approval. ·Two additional positions are included in the rate study and the requested rate increases. The positions requested are Public Service Techs I in FY2010 and III in FY2011. The Public Service Tech III would be filled through promotions from within the City. ·The additional equipment and positions will increase estimated operating costs in FY2010, FY2011 and FY2012 by $89,000, $201,000 and $204,000 respectively. In response to a question, Assistant Engineering Director Al Carrier said the EAB (Environment Advisory Board) had not reviewed this request. Staff will provide a comparison to other communities’ rates. Mr. Carrier reported approving these rates will fund 75% of planned projects. The additional ones will be delayed until funding is available. At some point he City will be in a maintenance mode. In response to a question, Mr. Carrier said these proposed projects will remove residents from the flood plain and clean stormwater before it is discharged into Clearwater Harbor and Tampa Bay. Legal Pass Ordinance 7633-06 on first reading, creating Chapter 29, Article VI, Tax Deferral for Recreational and Commercial Working Waterfront Properties; implementing Chapter 197.303 et. seq., Florida Statutes (2005); allowing for ad valorem tax deferrals for recreational and commercial waterfront properties; providing definitions; establishing guidelines for qualification; providing for appeals; providing penalties for willfully filing incorrect information and providing for distribution of payments. The City of Clearwater is empowered under Chapter 197.303-197.3047, Florida Statutes (2005) to enact ordinances to allow for ad valorem tax deferrals for recreational and commercial working waterfront properties. The Florida Committee on Community Affairs in their Report of Working Waterfronts Number 2005-122, found that a diversified waterfront industry, both commercial and recreational, is an important component of the economy of the State of Florida. The Committee found in their report that each year, public boat ramps create 25,000 jobs statewide and generate $128 million in state and local tax revenue. The Committee found an increase in the purchasing of traditional working waterfront property and converting them to private and residential use, which serves to both reduce the number of traditional working waterfront properties available for traditional public use as well as increase the value of nearby working waterfront properties. This increase in property value results in higher property taxes, causing the working waterfront property to decrease in profitability, increasing the pressure to convert the property to a private or residential use. The public has lost access to recreational working waterfronts because of the development for private marina and residential uses, and there are several impediments to developing new recreational or commercial access to state waterways, including the cost to develop and governmental approval needed for such developments. The loss of commercial and recreational waterfront properties may have long-term negative effects on both the state Council Work Session 2006-05-30 7 and local economies. The tax deferral program is a means of alleviating the economic pressure on the recreational and commercial waterfront properties. The City Attorney said when the ordinance was drafted, the deferral period was determined to be up to 10 years. Interest accrues and compounds during the entire period. While the deferral period could be longer, the State statute limits the amount of debt. The only area that does not qualify is the downtown CRA (Community Redevelopment Agency). Working waterfront includes hotels and motels but not resort condominiums. The properties must be waterfront and water oriented. The City Attorney felt 10 years is reasonable. Participants must apply for the deferral every year. The County tax collector cannot automate this program until next year and has requested that the City defer its implementation until FY 2007. City Manager Verbal Report Yacht Basin Dock Permitting Marine & Aviation Director Bill Morris said staff is evaluating options regarding the permitting of the yacht basin dock. He estimated a maximum of 54 slips could be constructed. The Sand Pearl is willing, at their risk, to pay for the permitting process. The City Attorney said staff will bring forward modifications to the agreement if necessary. Consensus was to allow the permitting to proceed. Council Discussion Items Gulfview Boulevard Improvement Project The Mayor reported that County Commissioner Stewart indicated the County is considering the undergrounding of utilities and enhancement of Gulfview Boulevard. He said the City would qualify for reimbursement of some of the money it had spent to construct these improvements. It was suggested the reimbursement be used to enhance Sand Key as Sand Key property owners had paid for the undergrounding of their utilities. Discussion ensued regarding which areas of the beach should be included. Consensus was for the City to request the roadway all the way to the Acacia roundabout be included. Other Council Action Councilmember Jonson expressed concern that commercial insurance rates are increasing more rapidly than homeowner policies; suggested the City adopt east coast policy requiring fencing around construction projects to feature some type of embellishment; reported that Aspen’s affordable housing policy requires two affordable housing units to be constructed elsewhere for each high-end unit built. Adjourn The meeting adjourned at 6:44 p.m. Council Work Session 2006-05-30 8