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12/02/2004 . Present: Brian J. Aungst Frank Hibbard Hoyt P. Hamilton William C. Jonson Carlen Petersen Also present: William B. Horne II Garry Brumback Pamela K. Akin Cynthia E. Goudeau Patricia O. Sullivan CITY COUNCIL MEETING CITY OF CLEARWATER December 2, 2004 Mayor Vice-Mayor Councilmember Councilmember Councilmember City Manager Assistant City Manager City Attorney City Clerk Board Reporter The Mayor called the meeting to order at 6:00 p.m. at City Hall. The invocation was offered by Pastor Richard A. Jones, of Friendship United Methodist Church. The Mayor led the Pledge of Allegiance. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 4 - Introductions and Awards - None. . 5 . Presentations: 5.1 Diversity Council Awards for 2004 Clearwater Diversity Poster Contest The Diversity Council Awards for the 2004 Clearwater Diversity Poster Contest were presented to Mya Noble and Morgan Phillips from St. Paul's School. 5.2 Certificates to Citizen Academy Graduates Certificates were presented to Citizen Academy graduates. 5.3 We Care Fund Customer Service and Marketing Director Jim Geary encouraged residents to participate in the "We Care Fund," to help residents, in need, cover utility expenses. 6. Approval of Minutes 6.1 City Council - November 18. 2004 Councilmember Jonson moved to approve the minutes of the regular meeting of November 18, 2004, as recorded and submitted in written summation by the City Clerk to each Council member. The motion was duly seconded and carried unanimously. . Council 2004-12-02 1 . . . 7 . Citizens to be Heard re Items Not on the Agenda - None. Public Hearings - Not before 6:00 PM 8 . Administrative public hearings 8.1 Continue until the City Council meetina of January 20, 2005 the applicant's reauest to vacate the north one-half of Dempsev Street (A.K.A. 721 Lakeview Road, VAC 2004-16). Councilmember Hamilton moved to continue Item 8.1 to January 20, 2005. The motion was duly seconded and carried unanimously. 8.2 Approve an amendment to the development aareement between the Beachwalk Resort LLC (fka Clearwater Seashell Resort LLC) and the City of Clearwater, Adopt Resolution #04-35 and approve restructurina of the fundina in Capital Improvement Proiect 315-92267 (Coronado/ S. Gulfview Streetscape) bv replacina the $2 million General Fund Loan with a $2 million loan from the Central Insurance Fund. Planning Director Cyndi Tarapani reviewed the request. 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) recommended approval of the proposed applications for Flexible Development and the Development Agreement on November 16, 2004. When the initial agenda item was approved regarding the additional funding for the Coronado/So 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/So Gulfview is needed prior to that time, the City will need to replace the $2 million in General Fund money in the Coronado/So 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. The City Attorney said the City retains the right to provide beach concession services, such as the rental of beach chairs, cabanas, and umbrellas, as long as those services meet minimum hotel standards. If not, that right will revert back to the Hyatt property. Brain Taub, developer, said his firm now owns the property and all documents with Hyatt are finalized. He read and submitted a letter from Hyatt Development Corporation showing their commitment to the project. He agreed to add language to the development agreement allowing the City to construct a public parking facility on Marina property under certain conditions and supporting staff recommended parking rates reflected in Exhibit 0 of the agreement. Council 2004-12-02 2 . . . Two people spoke with concerns regarding traffic movement on Coronado during Beachwalk construction and whether the retail facility on the beach side of the walkover meets Charter requirements. One person spoke in support of the project. Concern was expressed Hyatt specifications for beach rental equipment at a nearby concession would spoil the beach's unified appearance, and may mislead beach visitors into thinking part of the beach is closed to the public. It was felt the focus should be on consistency in beach operations, not identical equipment. It was indicated the chairs and umbrellas would not feature the hotel's insignia. Discussion ensued regarding the difference between a license and a lease and the beach side of the project's pedestrian bridge. The City Attorney stated a license does not convey property, as a lease does. The City is not transferring any property rights as addressed in the Charter. A license 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. Discussion ensued regarding the length of the license and the City Attorney indicated the 50-year license is very restrictive and was part of the original agreement that preceded Mr. Taub's involvement in the project. In response to a question, Mr. Taub said the life expectancy of the property is more than 30 years. Concern was expressed regarding the size of the sundry area and whether it would include storage. Mr. Taub said the plans for this area have not been finalized but will be restrictive as to what can be there. He said the hotel's concession building would be small, as the bridge's large spiral staircase will cover the majority of the landing. Discussion ensued regarding parking rates and concern was expressed the com parables used should be what the City charges for parking on the beach and not what hotels are charging. Councilmember Hibbard moved to approve an amendment to the development agreement between the Beachwalk Resort LLC (fka Clearwater Seashell Resort L.C.) and the City of Clearwater, 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 motion was duly seconded and carried unanimously. Resolution #04-35 was presented and read by title only. Councilmember Jonson moved to pass and adopt Resolution #04-35 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hibbard, Hamilton, Jonson, Petersen, and Aungst. "Nays": None. 9 - Quasi-judicial public hearings 10 - Second Readings - public hearing Council 2004-12-02 3 . . . 10.1 Adopt Ordinance #7344-04 on second readina. annexina certain real property whose Post Office address is 1705 Thomas Drive in to the corporate limits of the City. and redefinina the boundary lines of the city to include said addition. Ordinance #7344-04 was presented for second reading and read by title only. Councilmember Petersen moved to pass and adopt Ordinance #7344-04 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hamilton, Jonson, Petersen, and Aungst. "Nays": None. Absent: Hibbard. 10.2 Adopt Ordinance #7345-04 on second readino. amendina the future land use plan of the City to desianate the land use for certain real property whose Post Office address is 1705 Thomas Drive. upon annexation into the City of Clearwater. as Residential Low. Ordinance #7345-04 was presented for second reading and read by title only. Councilmember Hamilton moved to pass and adopt Ordinance #7345-04 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hamilton, Jonson, Petersen, and Aungst. "Nays": None. Absent: Hibbard. 10.3 Adopt Ordinance #7346-04 on second readino. amendina the zonina atlas of the City by zonina certain real property whose Post Office address is 1705 Thomas Drive. upon annexation into the City of Clearwater. as Low Medium Density Residential (LMDR). Ordinance #7346-04 was presented for second reading and read by title only. Councilmember Jonson moved to pass and adopt Ordinance #7346-04 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hibbard, Hamilton, Jonson, Petersen, and Aungst. "Nays": None. Council 2004-12-02 4 . . . 10.4 Adopt Ordinance #7366-04 on second readina. providina for the issuance of aas system subordinate revenue obliaation. as subordinate obliaations of the City pursuant to the City's Ordinance #5118-91. to acauire or purchase. directly or indirectlv. aas supply and/or aas production facilities or interest therein: pledaina the net revenues of the system to secure payment of the principal and interest on the subordinate obliaations. providina for the riahts of the subordinate holders of such obliaations: and providina for payment thereof. Ordinance #7366-04 was presented for second reading and read by title only. Councilmember Petersen moved to pass and adopt Ordinance #7366-04 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hibbard, Hamilton, Jonson, Petersen, and Aungst. "Nays": None. 10.5 Adopt Ordinance #7350-04 on second readina, amendina Ordinance #6779-01. which vacated the 60-foot riaht-of-way of Third Street (AKA Third Ave.). bounded on the east by the Westerly riaht-of-way line of Coronado Dr. and bounded on the west by the easterly riaht-of-way line of S. Gulfview Blvd. subiect to special conditions. Ordinance #7350-04 was presented for second reading and read by title only. One person expressed concern regarding gulf access. The City Attorney said the project would dedicate a 10-foot pedestrian access on the southerly edge of the property. The City will discourage the developer from locating garbage cans next to the access. Councilmember Hibbard moved to pass and adopt Ordinance #7350-04 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hibbard, Hamilton, Jonson, Petersen, and Aungst. "Nays": None. 10.6 Adopt Ordinance #7351-04 on second readina, amendina Ordinance #6780-01. which vacated the east 35 feet of the 70-foot riaht-of-way of Gulfview Blvd.. bounded on the north by the westerly extension of a line parallel to and 20 feet north of the northerly lot line of Lots 57 and 104 of L1ovd-White Skinner subdivision, and bounded on the south by the westerly extension of the south lot line of Lot 59. L1oyd-White-Skinner subdivision. subiect to special conditions. Ordinance #7351-04 was presented for second reading and read by title only. Councilmember Jonson moved to pass and adopt Ordinance #7351-04 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hibbard, Hamilton, Jonson, Petersen, and Aungst. "Nays": None. Council 2004-12-02 5 . . . City Manager Reports 11 . Consent Agenda - Approved as submitted. 11.1 Declare the list of vehicles and eauipment surplus to the needs of the City and authorize disposal throuah sale to the hiahest bidder at the Tampa Machinery Auction. Tampa. Florida. 11.2 Approve First Amendment to Aareement and Gas Supply and Transportation Aareement with Peoples Gas System: approve the filina of the Joint Petition for the First Amendment to Aareement with the Florida Public Service Commission: approve the Master Marketina Aareement with TECO Partners. Inc.; approve the Developer Aareement for Natural Gas Distribution Service with Connerton. LLC: authorize the appropriate officials to execute same and authorize the Gas System Manaaina Director to approve future Developer Aareements. 11.3 Approve an aareement between The Florida Commission on Community Service commonly referred to as Volunteer Florida and the City of Clearwater. Florida for cash match fundina of $52.163 for the period January 1. 2005 throuah December 31.2005 for AmeriCorps Clearwater. and approve 12.4 FTE positions. and that the appropriate officials be authorized to execute same. 11.4 Approve the Clearwater Gas System Gas Supply Hedaina Policy as part of the City Council Policies (Finance and Budaet). 11.5 Approve the Pinellas County Combined Voluntary Cooperation And Operational Assistance Mutual Aid Aareement For Law Enforcement Services. and that the appropriate officials be authorized to execute same. 11.6 Approve an Interlocal Aareement with Pinellas County relatina to interaovernmental cooperation for effective post-disaster debris manaaement. debris site monitorina: ratify and confirm piaaybackina the county contract with Phillips and Jordan Inc. (P&J). of Robbinsville. NC. effective September 18. 2004. 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 earninas to proiect 0181-99927 as fundina for continued storm related damaae. repair and CityWide debris clean-up: and that the appropriate officials be authorized to execute same. 11.7 Award a one year contract to Bioloaical Research Associates. of Tampa for Nuisance & Exotic Control & Maintenance on City Lakes. Ponds. Channels and Immediate Adiacent Transitional Areas in the amount of $93.940.00. and authorize the appropriate officials to execute same. 11.8 Approve supplemental work order #2. for Kina Enaineerina Associates. Inc.. to perform additional Enaineerina Desian Services for the "Pumpina Station #15 & #25 - Refurbishment" proiect in the amount of $10.485 for a new work order total of $74.063. and authorize the appropriate officials to execute same. Council 2004-12-02 6 . . . 11.9 Approve the amendment of the Capital Improvement Proaram (CIP) to restructure current Stormwater Utility fundina bY reducina proiect budaets bY $3.049.990 of FY06 revenue bond and $75.000 of stormwater operatina revenues. for a total budaet decrease of $3.124.990. and increasina proiect budaets by $863.000 of arant revenue from the Southwest Florida Water Manaaement District (SWFWMD) and $16.000 of lease purchase revenue for a total budaet increase of $879.000. resultina in a net budaet decrease of $2.245.990. and that the appropriate officials be authorized to execute same. 11.10 Approve Chanae Order NO.1 to Trimax Residuals of Edmonton. Alberta. for the Biosolids Treatment Implementation Diaester Cleanina Contract (o3-0022-UT) increasina 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. 11.11 Appoint Randy Deshazo to the Brownfields Advisory Board as the federal or state aaency or local aovernment involved with the Brownfields remediation process. with a term expirina on December 31.2008. Purchasing 11.12 MIA-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 fundina. 11.13 Southern Sewer Eauipment - 2005 Sterlina L 7501 truck chassis with Vac-Con sewer cleaner body at a cost of $190.114.50 and authorize lease purchase financina. 11.14 Petroleum Traders Corp. - Vehicle fuel. unleaded aasoline and diesel. durina the period December 17. 2004 throuah December 16. 2005 at a cost not to exceed $1.400.000. 11.15 Terra Excavatina Inc. - Increase the City Manaaer's award from $98.000 to $140.000 for emeraency pick UP and removal of storm debris. Council member Hamilton moved to approve the Consent Agenda as submitted and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. 12 - Other Items on City Manager Reports 12.1 Approve amendment to Chapter 33. Section 33.067 of the Code of Ordinances amendina defined areas for no internal combustion motors on Sand Key and pass on first readina 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. Council 2004-12-02 7 . . . 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. Councilmember Hamilton moved to approve an amendment to Chapter 33, Section 33.067 of the Code of Ordinances amending defined areas for no internal combustion motors on Sand Key. The motion was duly seconded and carried unanimously. Ordinance #7352-04 was presented for first reading and read by title only. Council member Jonson moved to pass Ordinance #7352-04 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hibbard, Hamilton, Jonson, and Petersen. "Nays": None. Absent: Aungst 12.2 Adopt Resolution #04-34 approvina PGP Gas Supplv Aareement No. 1 with Florida Gas Utilitv 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. Council 2004-12-02 8 . . . 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. Councilmember Petersen moved to approve 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 motion was duly seconded and carried unanimously. Resolution #04-34 was presented and read by title only. Councilmember Hamilton moved to pass and adopt Resolution #04-34 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hibbard, Hamilton, Jonson, Petersen, and Aungst. "Nays": None. 12.3 Approve the Parsons Water & Infrastructure. Inc. Work Order for Construction EnqineerinQ & Inspection services for the Diqester Refurbishment construction phase of the Biosolids Treatment Implementation proiect in the amount of $477.552. and that the appropriate officials be authorized to execute same. This Digester Refurbishment project provides for the refurbishment of one pre-cleaned anaerobic sludge digester and construction of new and replacement supporting improvements at each of the Marshall Street and Northeast Advanced Wastewater Treatment Plants (AWTPs), following completion of the Digester Cleaning phase of the project. Parsons Water & Infrastructure, Inc. fees for these Construction Engineering and Inspection services for the construction phase of the Digester Refurbishment project are $477,552, including an allowance of up to $50,000 for outside testing laboratory services, and including up to $52,648 for specific allowance items to be consistent with the construction contract. Parsons' price includes all labor and expenses anticipated to be incurred by Parsons for the completion of the CEI (Construction Engineering & Inspection) tasks, on a time and expense basis, based upon the billing rates developed for the current contract with the City. A breakdown of the estimated cost for each task of the scope of services is provided in Attachment B of the Work Order. Should the City require services costing in excess of these anticipated expenses, Parsons shall provide sufficient notice and justification such that additional supplemental funding can be authorized prior to exceeding the established budget. In response to a question, Assistant Engineering Director Glen Bahnick said due to the specialized nature of required work, the City requires an engineer to be on site for the entire length of the project. Councilmember Jonson moved to approve the Parsons Water & Infrastructure, Inc. Work Order for Construction Engineering & Inspection services for the Digester Refurbishment construction phase of the Biosolids Treatment Implementation project in the amount of Council 2004-12-02 9 $477,552, and that the appropriate officials be authorized to execute same. The motion was . duly seconded and carried unanimously. 12.4 Adopt Resolution #04-37 establishinQ the intent to reimburse certain Stormwater proiect costs incurred with proceeds of future tax-exempt financinQ. 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. Councilmember Petersen moved to establish the intent to reimburse certain Stormwater project costs incurred with proceeds of future tax-exempt financing. The motion was duly . seconded and carried unanimously. Resolution #04-37 was presented and read by title only. Council member Hibbard moved to pass and adopt Resolution #04-37 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hibbard, Hamilton, Jonson, Petersen, and Aungst. "Nays": None. 12.5 Pass Ordinance #7321-04 on first readino increasino 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 increasinQ reclaimed water rates by 29.44% effective October 1. 2005. then meterinQ reclaimed water and implementinQ the proposed reclaimed water rates that are proiected to result in a 29.44% increase to the averaQe 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 . Council 2004-12-02 10 . 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. . Discussion ensued regarding the City being proactive in not ignoring infrastructure issues. It was indicated metering reclaimed water would reduce rates for others. Water will continue to be a prominent issue in Florida. In response to a question, Public Utilities Director Council 2004-12-02 11 . . Andy Neff said the proposal would charge a single meter rate per 1,000 gallons of reclaimed water. Discussion ensued regarding Council's visioning process and considering designating water projects for future Penny for Pinellas funding. Councilmember Hibbard moved to increase 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 motion was duly seconded and carried unanimously. Ordinance #7321-04 was presented for first reading and read by title only. Councilmember Hamilton moved to pass Ordinance #7321-04 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hibbard, Hamilton, Jonson, Petersen, and Aungst. "Nays": None. 12.6 IAFF Union neootiations update. Human Resources Director Joe Roseto reported the IAFF (International Association of Fire Fighters) and City have declared an impasse in negotiations and have agreed for the City Council to resolve salary issues related to the first year of the contract. Discussion will be scheduled once proper paperwork is filed. 13 - City Attorney Reports - None. 14 - City Manager Verbal Reports - None. 15 - Council Discussion Items 15.1 Clearwater Hioh School Track Surface Improvements - Hamilton Councilmember Hamilton reported the Springtime Kiwanis Club has requested the City to provide $25,000 in funding toward a state of the art track at Clearwater High School. He said the track will be used by students and residents, will allow the school to host national and state track competitions, and will bring revenues to the City. A question was raised whether the School Board or the County has been approached to contribute to the project and it was indicated the County is not one of the contributors and the School Board has been approached. Staff was requested to provide a list of events the track might attract, whether anyone has experience with the surface being proposed, and a possible funding source. Council 2004-12-02 12 Consensus was to obtain additional information. . 16. Other Council Action Councilmembers Hibbard and Peterson and Mavor Aunast attended today's Christmas tree lighting at the Main Library. Councilmembers Hibbard and Peterson attended yesterday's success breakfast. Councilmembers Hibbard and Hamilton invited residents to attend the Illuminated Holiday Parade on December 10, 2004, and the Island Estates Boat Parade on December 11, 2004. Councilmember Hibbard attended the ribbon cutting for the new Curves on Belcher Road. Councilmember Petersen helped judge Wednesday's cookie bake off at the Farmers Market in front of City Hall. She congratulated the winners and invited residents to the Farmers Market on Wednesdays, through April. Councilmember Jonson hoped sound level standards would be enforced at Sunday's concert, recommended attendance at a program for elected municipal officials, reviewed issues discussed at the recent FLC (Florida League of Cities) legislative conference, and thanked those serving overseas in the armed forces. . Councilmember Hamilton hoped all had a good Thanksgiving, reported tickets are available for the holiday production and concert at Calvary Baptist Church, and recognized the Mayor for his accomplishments. Mavor Aunast said the Turkey Trot was a successful event. 17. Adjourn The meeting adjourned at 8:12 p.m. Attest: ~ (;.,d;L. City C rk . Counci/2004-12-02 13