10/02/2006
CITY COUNCIL WORKSESSION MINUTES
CITY OF CLEARWATER
October 2, 2006
Present: Frank Hibbard Mayor
Hoyt P. Hamilton Councilmember
William C. Jonson Councilmember
John Doran Councilmember
Absent: Carlen Petersen Vice-Mayor
Also present: William B. Horne II City Manager
Garry Brumback Assistant City Manager
Rod Irwin Assistant City Manager
Pamela K. Akin City Attorney
Cynthia E. Goudeau City Clerk
Rosemarie Call Management Analyst
The Mayor called the meeting to order at 1:43 p.m. at City Hall, following a meeting of
the CRA (Community Redevelopment Agency).
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
Financial Services
Ratify and confirm the City Manager's decision to purchase $10 million of property insurance, for
the period beginning 10/1/06 and ending 3/31/07 for a not to exceed cost of $690,000, leaving
$10 million of our property self-insured above the first $20 million of coverage. (consent)
The Risk Management Division of the Finance Department purchases certain insurance
coverage for the City. This insurance is purchased through the efforts of three brokers: 1)
Acordia Southeast; 2) Insurance & Risk Management Services (IRMS); and 3) Arthur J.
Gallagher & Co. (Florida).
Due to the volatile property insurance market and unavailability of timely quotes, Risk
Management recommended and City administration approved, the purchase of property
insurance for the period October 1, 2006 to March 31, 2007. The current excess property
program is a layered program and is on a per occurrence basis. Several layers become due on
October 1, 2006, but the bulk of the coverage is in place until April 2007. Property insurance
has increased significantly in the last year, while capacity (availability) of insurance in the
Southeast has decreased. Due to the difficult insurance market, Risk Management is
recommending self-insuring additional layers of insurance (totaling $10 million) and keeping the
City’s $500,000 self-insured retention. These newly purchased layers of insurance are for a six-
month term so that the total property insurance program will renew on April 1, 2007.
To summarize our current property insurance coverage - The first $500,000 is self
insured by the City. The next $10 million ($500,000 - $10.5 million) is covered by Lexington
Insurance Company and expires on April 1, 2007. The next $10 million ($10.5 million to $20.5
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million), the City is purchasing at this time for a 6-month time period (October 1, 2006 to March
31, 2007) at a cost of approximately $690,000. The next $5 million ($20.5 - $25.5 million), the
City is self-insured. Of the next $15 million ($25.5 - $40.5 million), $10 million is covered by
Traders and Pacific through April 1, 2007 and the City is self insured for $5 million. The next
$10 million ($40.5 - $50.5 million) is covered by Landmark Insurance through April 1, 2007. The
final layer ($50.5 - $409 million) is insured through Landmark Insurance through April 1, 2007.
The budget for FY 2007 included approximately $4.6 million for property insurance
premiums. The majority of this budget will be used for the City’s total property insurance
renewal on April 1, 2007. In reviewing available reserves in the Central Insurance Fund, there
is a total of approximately $19 million including general insurance reserves (75% of GASB
liability-per council policy) of $7.6 million, health insurance premium stabilization reserves of
$3.9 million (per council policy), base reserves (8.5% of next year’s budget-per Council policy)
of $1.9 million, and excess reserves of $5.6 million. It is Risk Management’s goal to secure
property insurance that renews on April 1 for all layers in subsequent years.
In response to questions, Finance Director Margie Simmons said this request is for
approximately $690,000 for property insurance, should adjustments be needed during the year.
Losses between $25.5 million and $40.5 million would be prorated.
Parks and Recreation
Approve a one-year funding agreement, in the amount of $281,220 between Jolley Trolley
Transportation of Clearwater Inc. and the City of Clearwater for the operation of transportation
and trolley services on Clearwater Beach, Island Estates, Sand Key and services from
Clearwater Beach to Downtown Clearwater and authoorize the appropriate officials to execute
same. (consent)
Jolley Trolley Transportation of Clearwater Inc. (Jolley Trolley) has been operating trolley
service along the City’s beach communities and downtown for thirteen years. The current one-
year funding agreement expired on September 30, 2006. Current funding supports
approximately 54% of the trolley overall budget with the remaining 46% coming from fares,
rentals, and advertisements. Specifically the funding is for: 1) Trolley service between
Clearwater Beach and Sand Key; 2) Trolley service between Clearwater Beach, Island Estates
and Downtown Clearwater; and 3) Trolley vehicle maintenance and office space rent.
Funding during the annual term of the current agreement totals $281,220, which is
supported through the general fund ($231,220) and the CRA (Community Redevelopment
Agency) ($50,000). The new proposed agreement includes a provision requiring the Trolley to
provide monthly ridership information, and that the Trolley will develop a strategic plan for the
inclusion as a tourism enhancement for both the beach and downtown and present a report to
the City Council in the Summer of 2007. The Parks and Recreation Department will continue to
administer compliance of the agreement.
The City Manager reported that Parks & Recreation Department Director Kevin Dunbar
will monitor and manage this agreement. The Economic Development Department will be
responsible for future agreements and the trolley’s role in City tourism.
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Official Records and Legislative Services
Appoint and Reappoint members to the Municipal Code Enforcement Board with the term
expiring on October 31, 2009.
Consensus was to amend the item to reappoint Richard Avichouser (Realtor category)
and to appoint Ronald V. Daniels (Realtor category) and David Campbell and place item on
consent agenda.
Council Discussion Items
FY 2008 Budget Strategy
Discussion ensued regarding the makeup, scope, and timeframe for the Budget Task
Force. Budget Director Tina Wilson reviewed issues related to the previous Budget Review
Committee and Fiscal Review Committee.
Discussion ensued regarding proposed legislative changes related to property tax
issues. Concern was expressed that the City needs to prepare for falling property values so
that shocks do not occur.
Consensus was for staff to draft a mission and purpose statement for a Budget Task
Force but to delay a citizen survey and focus groups.
February 1, 2007 Council Meeting
Due to a conflict with the Chamber of Commerce annual meeting, Consensus was to
reschedule the February 1, 2007 City Council meeting to Wednesday, January 31, 2006.
Other Council Action
Councilmember Jonson spoke in support of the employee injured by a chemical leak,
stated the citizen survey continues to rank growth and transportation as the greatest issues
facing the City.
12. Adjourn
The meeting adjourned at 3:32 p.m.
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