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09/03/2015 City Council Meeting Minutes September 3, 2015 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 o ' Meeting Minutes Thursday, September 3, 2015 6:00 PM Council Chambers City Council Page 1 City of Clearwater City Council Meeting Minutes September 3, 2015 Roll Call Present: 5 - Mayor George N. Cretekos, Councilmember Doreen Hock-DiPolito, Councilmember Bill Jonson, Councilmember Hoyt Hamilton and Vice Mayor Jay E. Polglaze Also Present: William B. Horne 11 —City Manager(Arrived —6:52 p.m.), Jill Silverboard —Assistant City Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, and Nicole Sprague — Official Records and Legislative Services Coordinator To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. 1. Call to Order— Mayor Cretekos The meeting was called to order at 6:00 p.m. at City Hall. 2. Invocation — Pastor Akil Thompson from New Destiny Worship Center 3. Pledge of Allegiance — Vice Mayor Polglaze 4. Special recognitions and Presentations (Proclamations, service awards, or other special recognitions. Presentations by governmental agencies or groups providing formal updates to Council will be limited to ten minutes.) 4.1 End of Session Report— The Honorable Jack Latvala, Florida Senate 4.2 Clearwater Fire and Rescue Department Fire Fighter Appreciation Month Proclamation, September 2015 — Erin Authier, Muscular Dystrophy Associatio; Patrick Conrey and Sean Becker— Clearwater Fire Department. 4.3 First Annual Clearwater Centennial Cup Football Game Mayor Cretekos said tomorrow the first Clearwater Centennial Cup will be held between the Clearwater High School Tornadoes and the Countryside High School Cougars. The winner will be presented with a trophy. Page 2 City of Clearwater City Council Meeting Minutes September 3, 2015 5. Approval of Minutes 5.1 Approve the minutes of the August 20, 2015 City Council Meeting as submitted in written summation by the City Clerk. Councilmember Jonson moved to approve the minutes of the August 20, 2015 City Council Meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 6. Citizens to be heard re items not on the agenda Suzanne Dorn expressed concerns with workplace safety of city employees and urged that funding be included in the proposed budget to address safety concerns. 7. Consent Agenda — Approved as submitted, less Items 7.2, 7.11, and 7.13. 7.1 Approve a placement agreement with Fallbrook Credit Finance, LLC to broker the sale and transfer of ownership of the City of Clearwater's Voluntary Cleanup Tax Credits (VCTC) certificates, approve an Agreement of Sale and Assignment of Florida Voluntary Cleanup Tax Credits for the sale and transfer of ownership of the VCTC certificates to a potential purchaser, and authorize the appropriate officials to execute same. (consent) 7.2 Approve the purchase of excess liability, excess workers compensation, and numerous specialty insurance policies from October 1, 2015 through September 30, 2016 at an amount not to exceed $720,000, and authorize the appropriate officials to execute same. (consent) See Below. 7.3 Approve the Purchase Contract for the city purchase of former railroad right-of-way that bifurcates the Gas Administrative Complex at 400 North Myrtle Ave and 700 Jones St, Clearwater, with an estimated purchase price of$204,000 and total expenditures not to exceed $232,125 including survey services, closing costs and other ancillary expenses, together with all other instruments required for closing; approve the CSX Transportation. Inc. Temporary Right-of-Entry Agreement; and authorize the appropriate officials to execute same. (consent) 7.4 Approve a Consulting Services Agreement and Purchase Order with Black and Veatch Corporation, in the amount of$350,000, for the period September 8, 2015 through August 30, 2020, for an independent audit of Clearwater Gas System's utility operations and authorize the appropriate officials to execute same. (consent) Page 3 City of Clearwater City Council Meeting Minutes September 3, 2015 7.5 Approve acceptance of Department of Justice, Bureau of Justice Assistance (DOJ/BJA) Edward Byrne Memorial Justice Assistance Grant application in the amount of$49,118, for purchase of Taser units and authorize the appropriate officials to execute same. (consent) 7.6 Approve a contract (purchase order) in the amount of$420,199.20 with the Pinellas County Sheriff's Office, Largo, Florida for latent fingerprint, crime scene processing, evidence and property storage and Pinellas Juvenile Assessment Center services, during the one-year contract period commencing October 1, 2015 through September 30, 2016, and authorize the appropriate officials to execute same. (consent) 7.7 Approve an Interlocal Agreement between the Clearwater Community Redevelopment Agency (CRA) and the City of Clearwater to provide CRA funding in Fiscal Year 2015-2016 in the amount of$166,596.78 to underwrite the cost of additional Community Policing services by the Clearwater Police Department in the East Gateway CRA District, pursuant to the East Gateway Five-Year Action Program for fiscal years 2012-2017, and authorize the appropriate officials to execute same. (consent) 7.8 Accept a Drainage Easement conveyed by Instrument Transformers, LLC over a portion of property located at 1907 Calumet Drive, Clearwater. (consent) 7.9 Award a construction contract to Central Florida Contractors, Inc. of Seminole, Florida for the 2015 Sidewalk Construction Project (14-0044-EN) in the amount of $237,644.11, and authorize the appropriate officials to execute same. (consent) 7.10Approve a contract (purchase order) in the amount of$168,000 to TSO Mobile, Inc., Miami, FL for vehicle GPS tracking devices and software services; approve an increase of$54,000 in Purchase Order BR510269, and authorize the appropriate officials to execute same. (consent) 7.1lApprove a continuing contract (Blanket Purchase Order) in the amount of$101,490 for Fiscal Year 2016 with Cayenta, a division of N. Harris Computer Corporation, for support and maintenance related to the Utility Management System, four option years with a maximum 2% increase annually, to extend the term of the agreement through September 30, 2020 at the City's discretion; approve $25, 000 blanket purchase order for Consulting Services from Cayenta, a division of N. Harris Computer Corporation, for support efforts in finding efficiencies to streamline business processes during Fiscal Year 2016; and authorize the appropriate officials to execute same. (consent) See Below. 7.12Approve an amendment to the Private-Public Partnership Service and Access Agreement between the City of Clearwater and Harris Corporation, and authorize the appropriate officials to execute same. (consent) 7.13Appoint John Quattrocki as the alternate member to the Community Development Page 4 City of Clearwater City Council Meeting Minutes September 3, 2015 Board to fill the remainder of an unexpired term through April 30, 2018. (consent) See Below. 7.14Appoint Desaray Dilday to the Sister Cities Advisory Board as the youth member to fill the remainder of an unexpired term through December 31, 2016. (consent) Councilmember Hock-DiPolito moved to approve the Consent Agenda as submitted, less Items 7.2, 7.11, and 7.13, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 7.2Approve the purchase of excess liability, excess workers compensation, and numerous specialty insurance policies from October 1, 2015 through September 30, 2016 at an amount not to exceed $720,000, and authorize the appropriate officials to execute same. (consent) The Risk Management Division of the Finance Department purchases certain excess and specialty insurance policies through the efforts of Arthur J. Gallagher and Company. These policies include an excess liability package through Llyod's of London for coverages including General Liability, Automobile Liability, Employee Benefits Liability, Public Officials Liability Personal Injury Law Enforcement Liability, Marine Operator's Liability, EMS Liability, and Compressed Natural Gas Liability; an excess workers compensation package through Safety National for coverages including Workers Compensation and Employer Liability; and additional excess policies for Third Party Storage Tank Liability, Hull Protection and Indemnity, Cyber Liability and numerous flood policies. Due to the City's favorable loss history, the rates remained unchanged for the package policies, although the premiums for excess Workers Compensation coverage increased due to anticipated increased payrolls as a result of additional budgeted positions. Risk Management is also estimating an increase of 10% for the additional excess policies, and a 20% increase for the various flood policies. This year's renewal reflects an increase of$25,000 (3.6%) over the October 1, 2014 approved budget, and an increase of$53,786 (8.07%) over the actual premiums paid for Fiscal Year 2015. This request allows us to factor in the estimated increases while maintaining our standard contingency of approximately $20,000. APPROPRIATION CODE AND AMOUNT: 0590-07000-545100-519-000-0000 $720,000 Page 5 City of Clearwater City Council Meeting Minutes September 3, 2015 It was stated that the South Beach Pavilion and Pier 60 Concession stand were not included in the detailed list, staff will look into the items. It was stated that the lease holder on the property pays the insurance on the structure. Vice Mayor Polglaze moved to approve the purchase of excess liability, excess workers compensation, and numerous specialty insurance policies from October 1, 2015 through September 30, 2016 at an amount not to exceed $720,000, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 7.11 Approve a continuing contract (Blanket Purchase Order) in the amount of$101,490 for Fiscal Year 2016 with Cayenta, a division of N. Harris Computer Corporation, for support and maintenance related to the Utility Management System, four option years with a maximum 2% increase annually, to extend the term of the agreement through September 30, 2020 at the City's discretion; approve $25, 000 blanket purchase order for Consulting Services from Cayenta, a division of N. Harris Computer Corporation, for support efforts in finding efficiencies to streamline business processes during Fiscal Year 2016; and authorize the appropriate officials to execute same. (consent) Since 1998, Utility Customer Service has used Cayenta's software utility management system to bill a wide range of services for water, sewer, reclaim water, stormwater, solid waste, recycling and gas to over 50,000 customers at approximately $150 million annually. The system is also utilized by other city departments (i.e., Gas, Public Utilities, Solid Waste, and Police). Utility Customer Service recommends that the City continue to use Cayenta's Utility Management System because it is a mission critical system, the software is proprietary and thus supported and maintained by Cayenta and reinvesting in our utility system allows us to keep pace with ever changing demands. The Fiscal Year 2015 BPO amount is $99,500.00. The 2% annual increase for support and maintenance, capped at 2 %, increases the Fiscal Year 2016 costs to $101,490. APPROPRIATION CODE AND AMOUNT: Funds for support and maintenance contract of$101,490 have been budgeted for Fiscal Year 2016 in cost code 0555-09884-546200-519-000-000 (Other Equipment Service and Repair). Funds for the $25,000 professional services have been budgeted for Fiscal Year 2016 in cost code 0555-09887-530100-519-000-0000 (Professional Services). Page 6 City of Clearwater City Council Meeting Minutes September 3, 2015 Support was expressed for including finding efficiencies to streamline business processes in every contract. Councilmember Hamilton moved to approve a continuing contract (Blanket Purchase Order) in the amount of$101,490 for Fiscal Year 2016 with Cayenta, a division of N. Harris Computer Corporation, for support and maintenance related to the Utility Management System, four option years with a maximum 2% increase annually, to extend the term of the agreement through September 30, 2020 at the City's discretion; approve $25, 000 blanket purchase order for Consulting Services from Cayenta, a division of N. Harris Computer Corporation, for support efforts in finding efficiencies to streamline business processes during Fiscal Year 2016; and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 7.13 Appoint John Quattrocki as the alternate member to the Community Development Board to fill the remainder of an unexpired term through April 30, 2018. (consent) APPOINTMENT WORKSHEET BOARD: Community Development Board TERM: 4 years APPOINTED BY: City Council FINANCIAL DISCLOSURE: Yes RESIDENCY REQUIREMENT: City of Clearwater MEMBERS: 7 & 1 alternate CHAIRPERSON: Brian A. Barker MEETING DATES: 3rd Tues., 1:00 p.m. PLACE: Council Chambers APPTS. NEEDED: 1 (alt. member) SPECIAL QUALIFICATIONS: Board shall include members qualified and experienced in the fields of architecture, planning, landscape architecture, engineering, construction, planning & land use law and real estate THE FOLLOWING NAMES ARE BEING SUBMITTED FOR CONSIDERATION TO FILL THE VACANT ALTERNATE SEAT (John Funk)WITH TERM TO EXPIRE 4/30/18: 1. Robert J. Aude - 1719 Brentwood Dr., 33756 -Architect 2. John Quattrocki - 1353 Stewart Blvd., 33764 - Real Estate Broker/Developer Zip codes of current members: 1 at 33759 1 at 33761 1 at 33763 Page 7 City of Clearwater City Council Meeting Minutes September 3, 2015 1 at 33764 3 at 33767 Current Categories: 1 Architect 2 Attorneys 1 Building Contractor 1 Civil Engineer 1 Real Estate Broker 1 Landscape Architect In response to a question, the City Clerk said based on Council's direction during the last CDB appointment to seek individuals in the professional categories, staff did not include applicants who did not meet that criteria. Support was expressed to appoint Mr. Aude, an architect, who lives in a zip code not currently represented. Councilmember Jonson moved to appoint Robert Aude. Motion failed for lack of a second. It was stated that both applicants are qualified to serve on the CDB and that Mr. Quattrocki has served on the Pinellas County Permitting Advisory Committee. Councilmember Hock-DiPolito moved to appoint John Quattrocki as the alternate member to the Community Development Board to fill the remainder of an unexpired term through April 30, 2018. The motion was duly seconded and upon the vote being taken: Ayes:4 - Mayor Cretekos, Vice Mayor Polglaze, Councilmember Hock-DiPolito, and Councilmember Hamilton Nays: 1 - Councilmember Jonson Motion carried. Public Hearings - Not before 6:00 PM 8. Administrative Public Hearings 8.1 Set final millage rate of 5.1550 mills for fiscal year 2015/16 against non-exempt real and personal property within the City of Clearwater and pass Ordinance 8766-15 on first reading. In accordance with Chapter 200 of the Florida Statutes, which defines Page 8 City of Clearwater City Council Meeting Minutes September 3, 2015 requirements for the Determination of Millage and the rules governing Truth in Millage (TRIM) compliance, the City Council must hold two public hearings to adopt a final millage rate for the new fiscal year. The adoption of this ordinance to establish the millage rate and the two related budget ordinances are an integral part of fulfilling these requirements. The City Council set a tentative millage rate of 5.1550 mills on July 16, 2015, which is the rate that appeared on the TRIM bill notices mailed to taxpayers in August. The millage rate of 5.1550 mills represents a 5.78% increase from the rolled back rate of 4.8735 mills. Ordinance 8766-15 is presented in order to adopt the millage rate of 5.1550 mills to support the operating and capital improvement budgets for the 2015/16 fiscal year. Budget Manager Kayleen Kastel presented a PowerPoint presentation. In response to a question, Ms. Kastel said the budget document lists public streets and sidewalks in the Parks and Recreation budget. Councilmember Hamilton moved to set final millage rate of 5.1550 mills for fiscal year 2015/16 against non-exempt real and personal property within the City of Clearwater. The motion was duly seconded and carried unanimously. Ordinance 8766-15 was presented and read in full. Councilmember Jonson moved to pass Ordinance 8766-15 on first reading. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Mayor Cretekos, Councilmember Hock-DiPolito, Councilmember Jonson, Councilmember Hamilton and Vice Mayor Polglaze 8.2 Approve the City of Clearwater Annual Operating Budget for the 2015/16 fiscal year and pass Ordinance 8767-15 on first reading. In accordance with Chapter 200 of the Florida Statutes and the rules governing Truth in Millage (TRIM) compliance, the City Council must hold two public hearings to adopt the budget. The adoption of this ordinance and the related ordinances adopting the 2015/16 millage rate and the Capital Improvement Budget are an integral part of fulfilling these requirements. On June 30, 2015, the City Manager provided the City Council with a Preliminary Annual Operating and Capital Improvement Budget that outlined Page 9 City of Clearwater City Council Meeting Minutes September 3, 2015 estimates of revenues and expenditures for the 2015/16 fiscal year. On July 13, 2015 the City Manager presented the preliminary budget at the work session for Council discussion. The preliminary budget was also presented at the July 16, 2015 council meeting, and at the August 17, 2015 Special Council Meeting for citizen input. After the Preliminary budget was released, management approved a reduction to the Public Utilities expenditure budget to eliminate the cost of five full time equivalent (FTE) positions that were requested in the proposed budget. After completing the Stormwater Rate Study in July 2015, a new rate structure is planned to be effective October 1, 2015 which will reduce the estimated Stormwater Fee revenue included in the proposed budget. Upon Council action at the August 17, 2015 meeting, a donation to the Clearwater Historical Society is being added to the General Fund for fiscal year 2015/16. These are the only changes to the Preliminary Operating Budget at this time. In response to a question, Assistant City Manager Jill Silverboard said funding is provided in each department for safety related and professional competency related training, as well as certifications and licensures the City pays for employees to maintain. Councilmember Hock-DiPolito moved to approve the City of Clearwater Annual Operating Budget for the 2015/16 fiscal year. The motion was duly seconded and carried unanimously. Ordinance 8767-15 was presented and read by title only. Vice Mayor Polglaze moved to pass Ordinance 8767-15 on first reading. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Mayor Cretekos, Councilmember Hock-DiPolito, Councilmember Jonson, Councilmember Hamilton and Vice Mayor Polglaze 8.3 Adopt the Fiscal Year 2015/16 Annual Capital Improvement Budget and establish a six-year plan for the Capital Improvement Program (CIP) and pass Ordinance 8768-15 on first reading. In accordance with Chapter 200 of the Florida Statutes and the rules governing Truth in Millage (TRIM) compliance, the City Council must hold two public hearing to adopt the final budget. The adoption of this ordinance and the related ordinances adopting the 2015/16 millage rate and operating budget are an integral part of fulfilling these requirements. On June 30, 2015, the City Manager provided the City Council with a Preliminary Annual Operating and Capital Improvement Budget that outlined Page 10 City of Clearwater City Council Meeting Minutes September 3, 2015 estimates of revenues and expenditures for the 2015/16 fiscal year. On July 13, 2015 the City Manager presented the preliminary budget at the work session for Council discussion. The preliminary budget was also presented at the July 16, 2015 council meeting, and at the August 17, 2015 Special Council Meeting for citizen input. On August 6, 2015, Council approved adding the Morningside Recreation Center project to the six-year capital plan with funding of$2,580,000 planned from Penny for Pinellas funds in fiscal year 2016/17. At the August 17, 2015 Special Council Meeting, the Council approved adding the Crest Lake Park Renovation project to the six year plan with funding of$250,000 planned from Penny for Pinellas funds in fiscal year 2015/16. These are the only changes to the Preliminary Capital Improvement Budget at this time. Two individuals opposed a Morningside Recreation Center, with one individual urging the City to speak with the neighborhood to ensure a recreation center is wanted and one expressing concerns with traffic, parking, and road conditions. One individual supported a new Morningside Recreation Center. Discussion ensued with concerns expressed regarding the impact the proposed recreation center would have on public safety and vehicular traffic and that the proposed recreation center would increase the total FTE count. Councilmember Hamilton moved to adopt the Fiscal Year 2015/16 Annual Capital Improvement Budget and establish a six-year plan for the Capital Improvement Program (CIP). The motion was duly seconded and upon the voted being taken: Ayes:3 - Mayor Cretekos, Councilmember Hamilton and Vice Mayor Polglaze Nays: 2 - Councilmember Hock-DiPolito and Councilmember Jonson Motion carried. Ordinance 8768-15 was presented and read by title only. Vice Mayor Polglaze moved to pass Ordinance 8768-15 on first reading. The motion was duly seconded and upon roll call, the vote was: Ayes: 3 - Mayor Cretekos, Councilmember Hamilton and Vice Mayor Polglaze Nays: 2 - Councilmember Hock-DiPolito and Councilmember Jonson Motion carried. 8.4 Approve the recommended Penny for Pinellas project list, as revised for Fiscal Years Page 11 City of Clearwater City Council Meeting Minutes September 3, 2015 2015/16 through 2019/20. On March 6, 1997, the City Council adopted Ordinance 6137-97. The ordinance established the requirement for a special hearing prior to adoption of the capital improvement budget to discuss the use of Penny for Pinellas tax, and at any time in which there is any proposed change to the Penny for Pinellas project funding of$500,000 or more. Changes to the Penny for Pinellas projects that meet this criteria in the proposed 2015/16 capital improvement budget and six-year plan include the following: • The Morningside Recreation Center Replacement project has been added to the project list with a budget of$2,580,000. The funding will provide additional funds needed for the construction of a new facility. This funding has been reallocated from Undesignated Future Penny Projects. • The Joe DiMaggio Sports Complex Multipurpose Fields project has been established in the amount of$1,750,000, to provide for construction of multipurpose fields. This funding has been reallocated from the Youth Sports Fields Renovation project. • The Cooper's Point Park Improvements project has been established in the amount of$150,000 to provide for the construction of an observation tower, supporting walking trails, and specific access points to Cooper's Point Park. This funding has been reallocated from the Neighborhood Parks Renovations project. • The Bridge Maintenance & Improvements project has been added to the project list with a budget of$669,000 to provide funds needed for the annual maintenance program to keep the City's bridges inspected. This funding has been reallocated from the City-wide Seawall Replacement project. • The Sid Lickton Batting Tunnels project has been established in the amount of$50,000 to provide for the construction of outdoor batting tunnels to be used by City co-sponsored groups. This funding has been reallocated from the Youth Sports Fields Renovation project. • The Crest Lake Park Improvements project has been established in the amount of$250,000 to provide funding for the conceptual design and permitting necessary for the future construction project. This funding has been reallocated from the Neighborhood Parks Renovation project. • The Youth Sports Fields Renovations project was reduced by $1,843,500 with the funding being reallocated to Joe DiMaggio Page 12 City of Clearwater City Council Meeting Minutes September 3, 2015 Multipurpose Fields in the amount of$1,750,000; Sid Lickton Batting Tunnels in the amount of$50,000 and Countryside Plex Restroom/Concession in the amount of$43,500. • The Neighborhood Parks Renovations project was reduced by $400,000 with the funding being reallocated to Crest Lake Park Improvement project in the amount of$250,000 and Coopers Point Park Improvements in the amount of$150,000. • The City-wide Seawall Replacement project was reduced by $669,000 with the funding being reallocated to Bridge Maintenance & Improvements project. The planned timing for the design and construction of two fire stations has changed as follows: • The Clearwater Beach Fire Station will now be designed and constructed in fiscal years 2016 and 2017. The project budget remains the same at$4,305,560. • The Lakeview Fire Station will now be designed and constructed in fiscal years 2018 and 2019. The project budget remains the same at$4,198,460. In response to questions, Parks and Recreation Director Kevin Dunbar said the proposed Morningside Recreation Center would be staffed by 9 FTEs, the original recreation center was staffed by 3.9 FTEs. Staff anticipates individuals would access the facility from the east and west. Since staff has not designed the facility or determined programming, the projected traffic is not known. The White Paper by staff identified approximately 21,000 sq. ft. to 23,000 sq. ft. for the recreation center, which is similar to the Long Center and Countryside Recreation Center. The Countryside Recreation Center was used as a model to determine staffing needs and operating budget. Mr. Dunbar said it would be realistic to have summer programming at the proposed facility. Concerns were expressed regarding vehicular traffic. One individual questioned if the proposed FTE count for the new facility included staff for the existing pool. Mr. Dunbar said the pool was not included in the proposed FTE count. The 3.9 FTEs for the original recreation center were eliminated when the Department underwent resource reductions. In response to a question, the City Manager said in the event of another economic downturn, staff will discuss with Council regarding realistic closures. Council will determine the closures and budget based on the priorities for the community. During the last economic downturn, Council did not close any recreation centers or libraries. The City tries to recover the costs associated to Page 13 City of Clearwater City Council Meeting Minutes September 3, 2015 run these facilities and subsidizes the costs that cannot be recovered. The City Manager said the recreation center was not built in 2013 because staff did not feel facility operations could be supported based on the revenue projections. Engineering Director Mike Quillen said traffic calming initiative requires 65% of community buy-in. Morningside had the biggest traffic calming project in the city. Ham Boulevard is considered a collector, Martin Luther King, Jr. and Countryside Boulevard are arterial roads. The Countryside Recreation Center is located off a side street, there is no traffic-calming on the street. Citizens are not assessed for traffic calming. It was stated that the neighborhood was promised a new recreation center many years ago and that the facility would offer parents with children another option if summer programming is offered. Councilmember Hamilton moved to approve the recommended Penny for Pinellas project list, as revised for Fiscal Years 2015/16 through 2019/20. The motion was duly seconded and upon the vote being taken: Ayes: 3 - Mayor Cretekos, Councilmember Hamilton and Vice Mayor Polglaze Nays: 2 - Councilmember Hock-DiPolito and Councilmember Jonson Motion carried. 8.5 Approve State Housing Initiatives Partnership (SHIP Program) annual reports for fiscal years 2012-2013, 2013-2014 and 2014-2015. The Florida Legislature enacted the Williams E. Sadowski Affordable Housing Act in 1992. This act created a dedicated revenue source for the state and local housing trust funds. This dedicated revenue source funds state and local housing programs and assisted local governments in meeting the housing needs of its population. The Sadowski Act created the State Housing Initiatives Partnership (SHIP) Program. Through the SHIP Program, Economic Development and Housing has provided funding for the following housing activities: Down payment and closing costs assistance for existing structures, the rehabilitation of owner occupied single-family dwellings, and the acquisition and rehabilitation of existing dwellings, and the construction of new dwelling in the City's target and revitalization areas. For fiscal year 2012-2013, the close out year, the City received $42,274 from the state and $129,794.44 in program income. The department has assisted fifteen families utilizing its approved strategies. The department also uses these SHIP funds and SHIP program income to match federal programs to be able to continue existing housing programs. Page 14 City of Clearwater City Council Meeting Minutes September 3, 2015 All local governments receiving SHIP funds must submit to Florida Housing Finance Corporation their annual reports by September 15 of every year. The annual report provides details of expended funds, encumbered funds and a proposal of any unused funds. The report also provides information on the strategies funded, the number of households served, income category, age, family size, race and data regarding any special needs populations such as homeless persons, persons with disabilities and the elderly. The report is submitted electronically to the State. SHIP funding is important to the City of Clearwater's economy, as evidenced by activities in Fiscal Year 2012-2013 where the City spent$153,590 in SHIP dollars to leverage over $1.3 million in other funds. Councilmember Jonson moved to approve State Housing Initiatives Partnership (SHIP Program) annual reports for fiscal years 2012-2013, 2013-2014 and 2014-2015. The motion was duly seconded and carried unanimously. 9. Second Readings - Public Hearing 9.1 Adopt Ordinance 8750-15 on second reading, annexing certain real property whose post office addresses are 1219 Aloha Lane, 1245 Palm Street, and 1223 Union Street, all in Clearwater, Florida 33755, together with certain abutting right-of-way of Union Street, into the corporate limits of the city and redefining the boundary lines of the city to include said addition. Ordinance 8750-15 was presented and read by title only. Councilmember Hock-DiPolito moved to adopt Ordinance 8750-15 on second and final reading. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Mayor Cretekos, Councilmember Hock-DiPolito, Councilmember Jonson, Councilmember Hamilton and Vice Mayor Polglaze 9.2 Adopt Ordinance 8751-15 on second reading, amending the future land use plan element of the Comprehensive Plan of the city to designate the land use for certain real property whose post office addresses are 1219 Aloha Lane, 1245 Palm Street, and 1223 Union Street, all in Clearwater, Florida 33755, upon annexation into the City of Clearwater as Residential Urban (RU). Ordinance 8751-15 was presented and read by title only. Vice Mayor Polglaze moved to adopt Ordinance 8751-15 on second and Page 15 City of Clearwater City Council Meeting Minutes September 3, 2015 final reading. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Mayor Cretekos, Councilmember Hock-DiPolito, Councilmember Jonson, Councilmember Hamilton and Vice Mayor Polglaze 9.3 Adopt Ordinance 8752-15 on second reading, amending the Zoning Atlas of the city by zoning certain real property whose post office addresses are 1219 Aloha Lane, 1245 Palm Street, and 1223 Union Street, all in Clearwater, Florida 33755, upon annexation into the City of Clearwater as Low Medium Density Residential (LMDR). Ordinance 8752-15 was presented and read by title only. Councilmember Hamilton moved to adopt Ordinance 8752-15 on second and final reading. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Mayor Cretekos, Councilmember Hock-DiPolito, Councilmember Jonson, Councilmember Hamilton and Vice Mayor Polglaze 9.4 Adopt Ordinance 8753-15 on second reading, annexing certain real property whose post office addresses are 2101 Burnice Drive and 2155 Burnice Drive, all in Clearwater, Florida 33764, into the corporate limits of the city and redefining the boundary lines of the city to include said addition. Ordinance 8753-15 was presented and read by title only. Councilmember Jonson moved to adopt Ordinance 8753-15 on second and final reading. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Mayor Cretekos, Councilmember Hock-DiPolito, Councilmember Jonson, Councilmember Hamilton and Vice Mayor Polglaze 9.5 Adopt Ordinance 8754-15 on second reading, amending the future land use plan element of the Comprehensive Plan of the city to designate the land use for certain real property whose post office addresses are 2101 Burnice Drive and 2155 Burnice Drive, all in Clearwater, Florida 33764, upon annexation into the City of Clearwater as Residential Low (RL). Ordinance 8754-15 was presented and read by title only. Councilmember Hock-DiPolito moved to adopt Ordinance 8754-15 on second and final reading. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Mayor Cretekos, Councilmember Hock-DiPolito, Councilmember Jonson, Councilmember Hamilton and Vice Mayor Polglaze Page 16 City of Clearwater City Council Meeting Minutes September 3, 2015 9.6 Adopt Ordinance 8755-15 on second reading, amending the Zoning Atlas of the city by zoning certain real property whose post office addresses are 2101 Burnice Drive and 2155 Burnice Drive, all in Clearwater, Florida 33764, upon annexation into the City of Clearwater as Low Medium Density Residential (LMDR). Ordinance 8755-15 was presented and read by title only. Vice Mayor Polglaze moved to adopt Ordinance 8755-15 on second and final reading. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Mayor Cretekos, Councilmember Hock-DiPolito, Councilmember Jonson, Councilmember Hamilton and Vice Mayor Polglaze 9.7 Adopt Ordinance 8765-15 on second reading, amending the Clearwater Code of Ordinances, Appendix A, Schedule of Fees, Rates and Charges, Section (3)(E) Stormwater Management Utility Rates. Ordinance 8765-15 was presented and read by title only. Councilmember Hamilton moved to adopt Ordinance 8765-15 on second and final reading. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Mayor Cretekos, Councilmember Hock-DiPolito, Councilmember Jonson, Councilmember Hamilton and Vice Mayor Polglaze 10. City Manager Reports 10.1Approve a Subordination of City Utility Interests agreement subordinating a city easement in favor of the State of Florida Department of Transportation, authorize the appropriate officials to execute same, and adopt Resolution 15-20. The State of Florida Department of Transportation (FDOT) is planning a multi-phased project to resurface State Road 60. In support of the project, FDOT has acquired additional right-of-way on the northeast corner of Gulf to Bay Boulevard and Belched Road. FDOT has requested that the City subordinate a platted utility easement located within the new FDOT property interest. FDOT is planning to construct a westbound right turn lane. The platted utility easement will remain in effect, however the City's rights under this easement will be subject to FDOT's rights. In response to questions, Real Estate Services Coordinator Chuck Lane said the mast arm is not being eliminated. There will be a dedicated right turn lane at the northeast corner. Page 17 City of Clearwater City Council Meeting Minutes September 3, 2015 Councilmember Hamilton moved to approve a Subordination of City Utility Interests agreement subordinating a city easement in favor of the State of Florida Department of Transportation, authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. Resolution 15-20 was presented and read by title only. Councilmember Hock-DiPolito moved to adopt Resolution 15-20. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Mayor Cretekos, Councilmember Hock-DiPolito, Councilmember Jonson, Councilmember Hamilton and Vice Mayor Polglaze 10.2Authorize an agreement between the City of Clearwater and the Florida Department of Economic Opportunity to serve as a pilot community to receive complimentary technical assistance in the creation of a coastal vulnerability assessment and adaptation plan, authorize the appropriate officials to execute same and adopt Resolution 15-21. In 2012, the Florida Department of Economic Opportunity (DEO), in partnership with the National Oceanic and Atmospheric Administration, Florida Department of Environmental Protection, Florida Department of Emergency Management, and others, initiated a five-year project to develop and provide guidance and technical assistance to Florida communities for integration of adaptation to potential sea level rise into current planning mechanisms including the local comprehensive plan, local hazard mitigation plan, post-disaster redevelopment plan, economic development plan, strategic plans, and capital improvement plans. DEO has contracted with Dewberry Consultants LLC (Dewberry) to complete two tasks as part of the overall Community Resiliency Initiative. Task 1 includes developing coastal hazard vulnerability analyses and scenarios for three pilot communities. Task 2 is to use those vulnerability analyses and scenarios (Task 1) to complete coastal hazard adaptation plans for each of the three communities. In addition to these major tasks, Dewberry will complete a number of guidance tools, presentation materials, and case studies that clearly identify and explain all the information and resources needed and available to Florida communities for the completion of these same analyses, scenarios and adaptation plans for their own communities. DEO invited the City of Clearwater to be one of the three pilot communities. Participation in the pilot program will present a number of opportunities for the City, including: • Be one of the first communities in the country to undertake an adaptation planning program; • Build the City's capacity to reduce hazard vulnerabilities and rebound Page 18 City of Clearwater City Council Meeting Minutes September 3, 2015 more quickly from coastal flooding events, including sea level rise; • Position the city for future related funding opportunities that may become available; and, • Serve as a resiliency leader for other communities around the state, providing valuable examples and best practices. All of the products and lessons learned from the City's adaptation planning process will be organized into approachable formats for other communities around the state (and nation) to use. The Memorandum of Agreement, Exhibit A of Resolution 15-21, establishes the terms and conditions whereby DEO will provide a contractor to provide consultant services to develop a coastal hazards vulnerability assessment and adaptation plan for the City, and the City agrees to create a local steering committee and to participate in the assessment process and creation of the adaptation plan. Dewberry is contractually obligated to complete the risk and vulnerability analyses for the three pilot communities by the end of June 2016, and must complete the final adaptation plans for the communities by mid-December 2016. Planning and Development Director Michael Delk said staff has confirmed with the Department of Economic Opportunity that the Steering Committee could be composed of 6 to 14 individuals with a range of backgrounds (i.e., staff, advisory board members, elected officials, community stakeholders, or experts). The work completed will be highly technical in nature. Staff will review the final committee composition with council. Regarding transportation analysis, the Committee will focus on the vulnerability of transportation infrastructure. In response to a suggestion, Mr. Delk said staff could reach out to the MPO/PPC Director regarding interest to serve on the Committee. Councilmember Hock-DiPolito moved to authorize an agreement between the City of Clearwater and the Florida Department of Economic Opportunity to serve as a pilot community to receive complimentary technical assistance in the creation of a coastal vulnerability assessment and adaptation plan, authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. Resolution 15-21 was presented and read by title only. Vice Mayor Polglaze moved to adopt Resolution 15-21. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Mayor Cretekos, Councilmember Hock-DiPolito, Councilmember Jonson, Councilmember Hamilton and Vice Mayor Polglaze Page 19 City of Clearwater City Council Meeting Minutes September 3, 2015 10.3Adopt a City Council Policy regarding Brick Streets. At the June 1, 2015 Council Work Session, staff was directed to develop a policy regarding the installation of brick streets within the city. Staff has drafted a policy, which includes the following key points: • Criteria for creation of new brick streets which were previously asphalt, • Criteria for replacing an existing deteriorated brick street with new bricks, • Property owners on existing asphalt streets to be converted to brick will be required to pay the construction cost differential between asphalt and brick through a special assessment, • There will be no cost to property owners on existing deteriorated brick streets to be replaced with new bricks, • Once a request for a new brick street has been made, the City will poll all property owners within the requested area and provide a non-binding estimate of the anticipated cost for each property, and • If the City receives responses indicating that a majority (51%) of the property owners are interested, the City will proceed to implement a special assessment following the procedures in Chapter 27, Clearwater Code of Ordinances, which provides opportunities for public input prior to establishing a final assessment roll. Staff has researched how other municipalities in the area manage brick street requests. A majority of these municipalities do not have a policy regarding creation of new brick streets which were previously asphalt. A motion is needed at the council meeting to direct staff to initiate the process in Harbor Oaks. APPROPRIATION CODE AND AMOUNT: There is no funding associated with this item. Engineering Assistant Director Scott Rice said, since the work session, staff has modified the petition to allow a negative response. A lack of response would be considered a negative response. It was stated that the item before Council tonight is to establish a citywide policy. In response to questions, Assistant City Manager Jill Silverboard said the City does not necessarily repave every 15 years. Staff conducts a street assessment and maintains the condition of the inventory. Engineering Director Mike Quillen said staff does not support providing a credit as it will negatively Page 20 City of Clearwater City Council Meeting Minutes September 3, 2015 impact the budget. Staff assumes maintenance costs for brick streets over a 30-year period would exceed maintenance costs for normal asphalt streets. The City Manager said Council would have to determine any credit provided. The City Attorney said Council would decide on the credit matter at the resolution stage. The final decision on the credit will be made when the assessment is being figured. The credit does not have to be part of the policy. In response to questions, Mr. Quillen said the City of St. Petersburg assesses property owners to remove the asphalt and return to brick. The City of Tampa pays to replace existing brick streets. Both cities emphasize maintaining brick streets. Mr. Rice said there are a few brick streets in Clearwater, there are bricks in the Tuskawilla area and the street next to Frenchy's on the beach. It was suggested that staff research potential grant funds for installing brick streets. It was stated that the City of Largo received an earmark associated with federal economic stimulus funds, the funding initiative is no longer available. In response to questions, Mr. Rice said the proposed policy will not assess a neighborhood that is requesting to replace brick streets. An assessment will occur to a neighborhood petitioning to remove asphalt and install brick streets. The City Attorney said state law requires historic districts to have a majority approval of the property owners. Neighborhoods that are not historic districts do not require a vote. Council may establish the majority percentage required of the property owners. It was suggested that brick streets are a safety and traffic calming application and that credit should be applied for the cost to install the traffic calming. Mr. Quillen said staff has not determined the cost savings associated with traffic calming applications. Staff is not sure how to quantify such savings. Traffic calming applications require 65% property owner support, as well as speed studies and crash data that support the application. Brick streets visually queue drivers to slow down. In response to questions, the City Attorney said approval of the property owners in an historic neighborhood is required because Council is doing an assessment. Council may choose to pay any portion of the assessment. The Council recessed from 8:02 p.m. to 8:10 p.m. Four individuals spoke in support with one requesting that the policy include language for a not to exceed assessment. Page 21 City of Clearwater City Council Meeting Minutes September 3, 2015 One individual suggested that cost of installing the intersection as traffic calming be deducted from the assessment. One individual questioned the process if brick streets are found in Harbor Oaks. In response to questions, the City Manager said traffic circles are not placed at every intersection. The traffic circles are designed to meet the needs of the neighborhood. The City Attorney said typically there will be an option to pay the assessment upfront. The payment can be spread over a period of years, which will be decided by Council at the assessment resolution. The assessment appears on the tax bill and paid annually for the life of the assessment. The community will have ample opportunity to provide feedback on the assessment. Historic neighborhoods would require a vote per property owner. Mr. Quillen said property owners are advised of the square footage of the road in their frontage and the contractor's estimate. Before the final assessment is levied, firm bids from the contractors are received. The City Attorney said the assessment will come before Council for approval two more times. The estimate staff has presented only includes construction of the brick streets. Design costs and interest may also be included in the assessment. Mr. Quillen said borings taken throughout the Harbor Oaks neighborhood showed, except for a few isolated locations, there are no bricks. In response to questions, Mr. Quillen said Council would determine the policy implementation; for instance, if there was one street opposing the bricks next to one street with 100% support, Council would have the final say in the implementation. The City Attorney said there are expenses associated with the installation of brick streets that must be considered and Council may not want to spread the costs over six months. Council would look at a neighborhood, not one small block. Mr. Quillen said in cases where neighborhoods have asphalt and brick streets, the existing brick portion of the policy would apply to the brick streets. Discussion ensued with comments made that the policy will establish a protocol for neighborhoods that want to add brick streets, brick streets provide traffic calming benefits. It was suggested that the policy require a clearer majority supporting the brick streets. Councilmember Hamilton moved to amend the policy to require 65% of the property owners would have to approve. The motion was duly seconded. In response to a question, Mr. Quillen said the cities researched by staff did not provide information on the percentage required by property owners supporting brick streets. Ms. Silverboard said staff would have to research each assessment case. The City Attorney said if the community is not a historic district, there is no state law requiring approval. The assessment is Page 22 City of Clearwater City Council Meeting Minutes September 3, 2015 applied to properties benefitting from the policy, those with existing brick streets will not be assessed. The policy does not apply for neighborhoods that had bricks in the past. Upon the vote being taken, the motion carried unanimously. In response to a concern, the City Attorney said if Council wants a second vote, the proposed policy must be amended. Staff proposed to have the vote at the beginning, when the estimate is not available. Adding a second vote will add to the cost of the process. Council will need to decide how much of the assessment will be supported or modified based on the cost going forward. The City Clerk said the cost for mailing each property owner is $9.21. In response to a question, Mr. Quillen said the estimate is based on prices given by a contractor with brick street installation experience. Staff will be required to obtain a formal bid when the 65% approval is obtained before finalizing the assessment roll. The City Attorney said Council may decide to fund a portion of the assessment at different locations at that time. The first estimate is a preliminary number. The policy may be amended to require a not to exceed assessment amount. Councilmember Hamilton moved to amend the policy to require a second vote if the final assessment exceeds 10% of the preliminary estimate. The motion was duly seconded and carried unanimously. Discussion ensued with concerns regarding policy implementation in neighborhoods where brick streets existed in the past. The City Attorney said the policy, as proposed, does not address streets that were bricks in the past. The policy will classify asphalt paved streets with bricks underneath as existing asphalt. It was suggested that consideration be given to provide a credit for one asphalt application. The City Attorney said amending the policy to address a credit is not needed as Council will decide credits on a case by case basis. In response to questions, Mr. Quillen said the estimate includes the cost for the brick streets, the City would pay for the utilities portion. The petition requirement for existing brick streets was presented in the event some property owners do not want to go back to brick streets. Councilmember Jonson moved to amend the policy, paragraph A on page 1, to require a 50% plus 1 approval for existing brick streets. The motion was duly seconded and carried unanimously. Councilmember Hamilton moved to adopt a City Council Policy regarding Brick Streets, as amended. The motion was duly seconded and carried unanimously. Page 23 City of Clearwater City Council Meeting Minutes September 3, 2015 10.4Authorize the City Manager or designee to negotiate a Lease Agreement with top-ranked firm, Clearwater Beach Seafood, Inc., in response to RFP 20-15 (RFP), to demolish the existing structure located at 37 Causeway Boulevard and construct and operate a new restaurant for a term not to exceed thirty years; approve the Second Amendment to Lease Agreement (current lease agreement) with Clearwater Beach Seafood, Inc. and authorize the appropriate officials to execute same. The City owns the property located at 37 Causeway Boulevard on Clearwater Beach. Clearwater Beach Seafood, Inc. leases the property from the City to operate a restaurant known as Crabby Bills Seafood. The current lease is scheduled to expire on September 30, 2015. Additionally, the existing building is nearing the end of its useful life, but is a significant Marina Enterprise Fund asset due to its location on a highly visible lot adjacent to the Clearwater Beach Marina and Pier 60. Therefore, an RFP for a new lease was released on April 21, 2015. Requirements in the RFP included demolition of the current structure and construction and operation of a new restaurant of the most appropriate type and quality to complement the City's beach redevelopment efforts, as well as provide a commercially advantageous return to the Marina Enterprise Fund. The City received proposals from three development teams: • Clearwater Beach Seafood, Inc.(current leasehold tenant) • 37 Causeway Boulevard, LLC • CC Development, LLC The CC Development, LLC proposal was incomplete and was thus determined to be non-responsive to the RFP. The two remaining proposals were determined to be complete and responsive to the RFP. A Selection Committee made up of the Assistant City Manager for Economic Development; Economic Development and Housing Director; Planning and Development Director; Finance Director; Marine and Aviation Director; and Real Estate Services Coordinator met on June 26, 2015, to evaluate the two development team proposals according to the following evaluation criteria stated in the RFP: 1) Experience in restaurant management and operations 25% 2) Restaurant theme/type/quality 25% 3) Professional expertise/composition of the design and construction team 15% 4) Financials - resources, capital funding, demolition and new building infrastructure 15% 5) Compensation to the City 20% The committee subsequently invited the two teams to make oral presentations Page 24 City of Clearwater City Council Meeting Minutes September 3, 2015 to the Committee on July 22, 2015, to expand upon their written submissions and answer any questions the Committee had concerning the written proposals. Subsequent to the oral presentations, the Committee completed their evaluations and ranking of the two firms. The final ranking is as follows: 1) Clearwater Beach Seafood, Inc. (current leasehold tenant) 2) 37 Causeway Boulevard, LLC While the two firms scored similarly in several categories, they differed notably in restaurant theme/type/quality, demonstrated brand strength in the market, and in the amount of compensation each firm proposed to be paid to the City over the term of the leases proposed. 37 Causeway Boulevard, LLC offered a mix of two restaurant types in its proposal. The proposal described one restaurant as a ground floor tenant with an internationally known brand and the other as a restaurant operated by team members with a polished casual atmosphere and a chef-inspired menu. However, during the verbal presentation, 37 Causeway Boulevard, LLC revealed that its proposed ground-floor tenant had not yet committed to the venture. Subsequent to the verbal presentation, the proposed ground floor tenant provided a Letter of Intent. Committee concerns with this proposal included risk components of the unproven chef-inspired restaurant concept and the lack of a formal agreement with the ground floor tenant. The firm proposed to pay the City a base rent of$120,000 in year one of the lease along with 8% of gross alcohol sales above $10,000 in sales monthly (total year-one estimate of$70,404). Estimated cash return to the City over term of proposed lease: $8,386,203. Clearwater Beach Seafood, Inc. proposes to continue to operate a restaurant under its well-known brand, Crabby Bills. The firm promoted its name recognition among residents and repeat tourists, as well as a history of very positive reviews from customers of this location. Their presentation highlighted their evolving menu, which is continuously updated to meet changing customer demand and their proven brand appeal in the market. They proposed to pay the City a year-one base rent of$136,213. They also proposed to pay the City 9% of alcohol sales above $10,000 monthly (total year-one estimate of $83,086) and 2% of gross food sales above $4,000,000 annually (year one estimate of$4,000). Estimated cash return to the City over term of proposed lease: $10,984,403. The RFP required total redevelopment of the site. Both proposals complied with this requirement and each proposed a new building that would offer indoor and outdoor seating in an attractive building that takes advantage of the spectacular views. Both firms proposed acceptable construction schedules. 37 Causeway Boulevard, LLC proposed a new restaurant opening in December, 2016, and Clearwater Beach Seafood, Inc. proposed an opening in February, 2017. The Selection Committee recommends the Council designate Clearwater Beach Seafood, Inc. as preferred lessee and authorize staff to negotiate a lease for consideration by the Council for the following reasons: Page 25 City of Clearwater City Council Meeting Minutes September 3, 2015 1) An established restaurant operation with proven profitability, market share and likely sustainability in the market over an extended period 2) Innovative, proven established management team with evidenced quality control and continuous product/menu evaluation and improvement to meet market conditions 3) An attractive, modern building design which is consistent with the repositioning of the Beach and the Marina site and a $1.9 million investment in the structure 4) Strong financial position indicating the ability to perform, deliver and sustain the lease and redeveloped property across economic cycles - $1.8 million in escrowed construction funds, with no debt issuance required; $325,000 operating reserve for FF&E: established cash flow projections benchmarked against actual operations, etc. 5) Superior financial return to City, with a projected return of$10,984,403 over term of the lease at proposed lease structure projections While Clearwater Beach Seafood's proposal was deemed most responsive and advantageous to the City, there are several items that the Committee believes need to be vetted more fully during lease negotiations in order to finalize a recommendation of lease award. First, staff would like to discuss with the proposer how to amend their building design to activate and create a retail presence on the street level of the building. Having this critical corner on the Beach lively and interesting for passersby, as well as patrons, would facilitate and move forward the objectives of Beach by Design. The proposers have indicated a desire to support this objective, by adding seating and food service at street level consistent with development and property restrictions. Second, staff would like to discuss and understand, in greater detail, the interior design of the restaurant vis-a-vis the modern, contemporary facade of the exterior building. An evolution of the current Crabby Bill's interior design brand is needed in the new building to keep the product fresh in the market as well as being important to the long-term success of the lease tenancy. Finally, staff would also like to learn more about the firm's future marketing and branding strategy. Crabby Bills is a well established brand with an embedded customer perception as a casual restaurant. However, its menu offerings and pricing strategy at this location suggest a higher-tiered dining experience. Currently, Crabby Bills' customers spend an average of$29 per visit. While the casual restaurant setting is a true fit for beach goers, current development of several high-end hotels on south Clearwater Beach may bring forth a clientele seeking a slightly more upscale dining option. Staff seeks a better understanding of how the management team intends to meet this market evolution. A branding strategy aimed at differentiating this Crabby Bills location from others, including its Beach Walk restaurant, will help to meet this demand and assure the long-term viability/profitability of the tenancy. Staff will address these issues during lease negotiations and incorporate the results in the lease recommendation to Council. Page 26 City of Clearwater City Council Meeting Minutes September 3, 2015 Next Steps: 1) Staff negotiates a lease agreement with Clearwater Beach Seafood, Inc. and presents to Council for approval 2) Clearwater Beach Seafood, Inc. files development application with the City's Planning and Development Department 3) CDB considers site plan; development order is issued 4) Clearwater Beach Seafood, Inc. files for permits 5) Construction commences 6) New restaurant opening It is unlikely that negotiations for a new lease will be complete prior to the expiration of the current lease. The proposed Second Amendment to Lease Agreement with Clearwater Beach Seafood, Inc. will extend the current lease on a month-to-month basis until such time as a new lease is approved by Council or upon thirty days notice of termination by either party. Councilmember Jonson moved to authorize the City Manager or designee to negotiate a Lease Agreement with top-ranked firm, Clearwater Beach Seafood, Inc., in response to RFP 20-15 (RFP), to demolish the existing structure located at 37 Causeway Boulevard and construct and operate a new restaurant for a term not to exceed thirty years; approve the Second Amendment to Lease Agreement (current lease agreement) with Clearwater Beach Seafood, Inc. and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 11. City Attorney Reports — None. 12. Closing comments by Councilmembers (limited to 3 minutes) Councilmember Jonson complimented the Mayor on his letter responses to citizens. Pinellas County will embark on a Project Design and Environment study for Belcher Road and State Road 60. Thirty years ago, Council adopted a new sign code policy that over time removed the portable and large signs along Gulf to Bay Blvd. At a centennial celebration at the Ft. Harrison Hotel, the wife of Chick Corea said they could live anywhere in the world but they choose to live in Clearwater because it is so beautiful. 13. Closing Comments by Mayor Mayor Cretekos reviewed recent and upcoming events and offered condolences to family, co-workers, and friends of Eric Herman, a city employee who recently passed away while on duty. Page 27 City of Clearwater City Council 14. Adjourn Meeting Minutes The meeting adjourned at 9:29 p.m. City of Clearwater September 3, 2015 Mayor City of Clearwater Page 28