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08/31/2015 Council Work Session Meeting Minutes August 31, 2015 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 e d s w r' �mu Meeting Minutes Monday, August 31, 2015 1 :00 PM Council Chambers Council Work Session Page 1 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 Roll Call Present 4 - Mayor George N. Cretekos, Councilmember Doreen Hock-DiPolito (Arrived 1:06 p.m.), Councilmember Hoyt Hamilton, and Vice Mayor Jay E. Polglaze Absent1 - Councilmember Bill Jonson Also Present: William B. Horne II, City Manager, Assistant City Manager, Jill S. 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 1:00 p.m. at City Hall. The Council recessed from I.00p.m. to 1:47 p.m. to meet as the Community Redevelopment Agency. 2. Presentations — None. 3. Office of Management and Budget 3.1 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 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 Page 2 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 mills to support the operating and capital improvement budgets for the 2015/16 fiscal year. 3.2 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 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, Budget Manager Kayleen Kastel said the grant for the Clearwater Historical Society was itemized in the Council budget as a contribution to other agencies. 3.3 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 Page 3 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 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 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. 3.4 Approve the recommended Penny for Pinellas project list, as revised for Fiscal Years 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 Page 4 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 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 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 Page 5 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 same at$4,198,460. 4. Economic Development and Housing 4.1 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) The City of Clearwater Invitation to Bid 61-15 for brokerage services was issued in July 2015 for the sale of the City of Clearwater Brownfields Voluntary Cleanup Tax Credits (VCTC) totaling $273,975.35. To maximize the City's return on investment, Fallbrook Credit Finance, LLC (the Broker) was deemed to have provided the most responsive bid and was selected for exclusive brokerage services of VCTC certificates as detailed in the Invitation to Bid. After evaluation of the bids was completed, the City of Orlando verified excellent service provided by the Broker for the sale of VCTC certificates. Transferable tax credits are priced with a cents-per-dollar of credit purchase price. Fallbrook Credit Finance, LLC (the Broker) guarantees no less than $0.88 per dollar of each credit and includes all brokerage service fees. The City possesses tax credit certificates in the amount of$273,975.35. Based upon the bid presented by the Broker, the City of Clearwater will receive $241,098.31. The Broker's services include, but are not limited to: Securing client purchase of the VCTC certificates; drafting of all legal documents including purchase agreement (Agreement of Sale and Assignment of Florida Voluntary Cleanup Tax Credits) between certificate Buyer and City of Clearwater; Placement Agreement between the City of Clearwater and Broker; the filing of the required transfer documents and forms with the State of Florida; and management of the transfer of funds from the Buyer to the City. Council approval is also requested for an Agreement of Sale and Assignment of Florida Voluntary Cleanup Tax Credits, which shall be executed by the City Manager or designee at the time a purchaser has been identified and secured, setting forth the terms under which the City and said potential purchaser will effectuate the transfer of the VCTC certificates. 4.2 Approve State Housing Initiatives Partnership (SHIP Program) annual reports for fiscal years 2012-2013, 2013-2014 and 2014-2015. Page 6 City of Clearwater Council Work Session Meeting Minutes August 31, 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. 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. 5. Finance 5.1 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) The Risk Management Division of the Finance Department purchases certain excess and specialty insurance policies through the efforts of Arthur J. Page 7 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 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 In response to questions, Assistant Finance Director Monica Mitchell said Risk Management evaluates the policies. The policies before Council are for flood. The policies are not renewed all at once, staff will look at each policy as they are due for renewal. Ms. Mitchell said the item before Council is to approve the total budget for the flood policies. Assistant City Manager Jill Silverboard said Council reduced the total liability coverage and picked up flood insurance on some facilities that were not previously covered. 6. Gas System 6.1 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 Page 8 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 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) The subject property is owned by CSX Transportation, Inc. and was previously used as railroad right-of-way. The land is currently vacant and is no longer needed by CSX. The acquisition will combine two tracts of city-owned land of approximately 4.1 and 1.6 acres resulting in a single tract of approximately 6.2 acres. The purchase price is $9.00/sq. ft.; the subject parcel is approximately 22,651 sq. ft. for an estimated purchase price of approximately $204,000. However, the total purchase price will be adjusted based on a boundary survey to be obtained by the City. Additional expenses include erecting a fence along the boundary shared with CSX's active railroad line. The land acquisition will allow Clearwater Gas System (CGS) to change the parking layout, add/move material storage and improve security of entire complex. It will allow CGS Propane tanker trucks to park closer to the fuel tanks, which are located on the 700 Jones St. parcel. Currently these large trucks must drive around the block, via Myrtle Ave., to enter the fueling yard. With the new property they will be able to re-fuel without having to leave the gas complex. The City obtained an independent appraisal performed by James Millspaugh and Associates, Inc. The appraiser valued the property at $7.50/sq. ft. or $170,000 with a valuation date of April 6, 2015. CSX reviewed the appraisal and responded with its opinion of value at$11.00/sq. ft. CSX and City staff negotiated a purchase price of$9.00/SF if closing occurs on or before December 1, 2015. If closing occurs after December 1 due to a delay by the City, then the purchase price shall be $11.00/sq. ft. The proposed CSX Transportation, Inc. Temporary Right-of-Entry Agreement will allow the City and its contractors the right to access the property to perform due diligence associated with the property acquisition. APPROPRIATION CODE AND AMOUNT: A third quarter budget amendment will increase cost code 0-423-02064-560100-532 (Land Purchased - Municipal Use) by $232,125 to fund this purchase. This increase is offset by Gas Fund operating revenues. Acquisition Costs: Purchase price $204,000 Page 9 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 + 10% variation due to survey results $20,400 Closing costs including title insurance $1,775 Survey services $2,950 Ancillary expenses $3,000 TOTAL $232,125 6.2 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) Black and Veatch will conduct an audit of Clearwater Gas System's (CGS) existing documentation and utility processes. Primary areas of review will be Compliance/regulatory-based documentation (i.e., FL Public Service Commission mandated items), Management/organizational structure, Engineering operations and utility-owned infrastructure. The scope of work will be performed in two phases, where Phase I will be a high-level assessment of each individual area and Phase 11 will consist of more detailed work to fill any gaps and ensure regulatory compliance in existing methodologies and work processes. Phase I work is estimated to start in September 2015 and continue through January 2016. Phase 11 work will begin January 2016 and continue through August 2020. The budget for both Phases is $300,000; however, expenses are not included in this amount. A detailed report, at the end of both Phase I and 11, will be generated that summarizes Black and Veatch's findings. Black and Veatch was selected based on their Request for Proposal (RFP 30-15) submittal. APPROPRIATION CODE AND AMOUNT: Funds are budgeted and available in cost code 0-423-02179-530100-532-000-0000 (Other Gas Regulatory) to fund this project. In response to a question, Gas Operations Manager Brian Langille said three respondents submitted proposals. 7. Police Department Page 10 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 7.1 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) On June 18, 2015, the Clearwater Police Department (CPD) was granted approval by City Council to apply for a $49,118 allocation under the federal Justice Assistance Grant (JAG) program to purchase 38 new Taser units. That grant has been officially awarded and CPD now seeks approval to accept it. In 2003, CPD purchased 176 Model M26 Tasers for officers in the Patrol Division. This was followed up in 2004 with the purchase of 46 Model X26 Tasers for the Criminal Investigations Division. In 2010, CPD purchased 193 Model X26 Tasers to replace the outdated/discontinued M26 Tasers that were acquired in 2003. The M26 Tasers were traded in for the updated Model X26 version and an extended 4-year warranty was also purchased. Since the initial purchases in 2003, normal wear and tear and operational malfunctions have occurred that necessitated repairs. The minimum cost to repair an out-of-warranty, repairable unit is $225.00. Many of the malfunctioning units are irreparable and cannot be used. As a result, CPD's Taser inventory is reaching critical levels. As the existing Taser units age, exponentially more are malfunctioning, creating officer safety and liability problems. Taser International has phased out and no longer manufactures the X26 model. Taser will also be phasing out all repair service on this model. Taser International has replaced the X26 model with the new Model X26P, which incorporates the latest technology. The X26P frame is similar to the X26 frame and is only slightly larger. The difference will require a holster specifically designed for the X26P, which is included in the price quoted below. The X26P also requires an updated (300 more activations than current battery) battery pack, also included in the unit cost. The design and operation of each weapon is nearly identical (comparable size and weight) and will require no additional training. The X26P also has enhanced diagnostics software, charge metering (consistent level of electrical charge) as well as advanced safety features. The X26P provides an audible alert and will shut off the discharge cycle at 5 seconds even if the trigger is continuously depressed. In order to keep up with the new and improved technology and continue to use tools that emphasize less lethal force, CPD must begin to replace all of its Tasers. The JAG grant offers the opportunity to replace 38 of the needed Tasers, battery packs, holsters and warranties with $49,118 in grant funding. Page 11 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 In addition to costs listed above, one Data port Download kit would be required at the cost of$164.75. This will be purchased using Department funds and is a one-time expense that will be charged to Budget Code 1155-550400. Special program 181-99213, 2015 JAG/Taser Grant, will be established to account for the grant expenditures. There is no mandatory match for this grant. There will be no direct adverse impact to the Police Department operating budget. APPROPRIATION CODE AND AMOUNT: A third quarter budget amendment will establish special program 181-99213, 2015 JAG/Taser Grant, to account for the grant expenditures. In addition to costs for Tasers and related equipment as noted, one Data port Download kit would be required at a one-time expense of$164.75. This will be purchased using Police Department operating funds and charged to budget code: 01155-550400-000. In response to questions, Clearwater Police Chief Daniel Slaughter said the entire taser inventory must be replaced. An agenda item for purchasing additional tasers will be coming before Council soon and will address the entire department. The tasers are used on individuals who actively fight or resist the police officer. 7.2 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) The Pinellas County Sheriff's Office (PCSO) and the Clearwater Police Department (CPD) began annual contractual agreement for services in January 1994. The agreements covered latent fingerprint examination, property/evidence storage, and crime scene processing services and a share of security costs at the Pinellas Juvenile Assessment Center (PJAC). The total cost of the proposed agreement for Fiscal Year 2015/2016 is $420,199.20, reflecting a 3.45% increase in costs and adjustments in crime scene processing calls and PJAC bookings. Page 12 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 The proposed contractual agreement reflects the following breakout of costs: Fingerprint Services - 1,080 cases @ $78.04 each, totaling $84,283.20; Forensic Science Services (Crime Scene Processing) - 950 cases @ $212.28 each, totaling $201,666; Evidence, Property Service and Storage - 9,000 items @ $10.95 each, totaling $98,550; Pinellas Juvenile Assessment Center (PJAC) - 425 bookings @ $84.00 each, totaling $35,700. Requests for services in excess of the number of contractual calls will be invoiced separately. Additionally, at the end of the contract, any funds remaining from unused calls for service will be refunded to the City. Funding for this contractual agreement is available in the Police Department's fiscal year 2015/2016 operating budget, 010-01155-530300-521-000. APPROPRIATION CODE AND AMOUNT: Funding for this contractual agreement is available in the Police Department's fiscal year 2015/2016 operating budget, 010-01155-530300-521-000. USE OF RESERVE FUNDS: N/A 7.3 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) On October 15, 2012, the CRA approved the East Gateway District Five-Year Action Program for Fiscal Year 2012-2017. The Action Program responded to public input on the issues of drug dealing, prostitution and street crime by including an action item for the continuation of increased police presence and crime reduction within the East Gateway District. An allowable funding source of this action item is the use of CRA Tax Increment Financing (TIF) funds. Florida Statutes allows for the use of TIF funds for community policing innovations in Community Redevelopment Areas. The CRA and Clearwater Police Department have reached an agreement on a proposed scope of services and terms as delineated in the Interlocal Agreement. Included in the scope is the delineation of specific, measurable Page 13 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 crime reduction targets by which to monitor the success of the initiative as well as providing clear language required by statute assuring that the resources are applied to the CRA/East Gateway area. Funding will be from the CRA East Gateway Project account (388-94849). APPROPRIATION CODE AND AMOUNT: Funds in the amount of$166,596.78 are available in account 388-94849, CRA East Gateway Project, to fund this contract. USE OF RESERVE FUNDS: N/A 8. Engineering 8.1 Accept a Drainage Easement conveyed by Instrument Transformers, LLC over a portion of property located at 1907 Calumet Drive, Clearwater. (consent) Instrument Transformers, LLC is near completion of a project to expand its facilities located at 1907 Calumet Street, Clearwater. The project includes modifications to the existing drainage system traversing the property. Pinellas County had previously maintained this drainage system; however, the property has recently been annexed into the city. The proposed easement will allow the City's Stormwater Division to take over this responsibility. 8.2 Approve two Subordination of City Utility Interests agreements, subordinating city easements 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 (SR) 60. In support of the project, FDOT has acquired easements for the construction and maintenance of improvements at two SR 60 intersections. FDOT has requested that the City subordinate two existing city easements located within the new FDOT easements. One of the city easements is for right-of-way purposes on the northwest corner of Arcturas Avenue and Gulf to Bay Boulevard; FDOT is planning to install a new traffic signal at this location. The other city easement is platted utility easement on the northeast corner of Belcher Road and Gulf to Bay Boulevard where FDOT is planning to construct a westbound right turn lane. The city easements will remain in effect, however the City's rights under these Page 14 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 easements will be subject to FDOT's rights. In response to a question, Real Estate Services Coordinator Chuck Lane said FDOT will replace the mast arm. The project is expected to begin this time next year. 8.3 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) This contract is for the construction of sidewalks in a portion of the East Gateway area of Clearwater and includes new sidewalk adjacent to Rollen Road near Sandy Lane Elementary School. Improvements will be made to make these sidewalks fully accessible. The City of Clearwater's Engineering Department will be providing construction inspection. The City received five bids and Central Florida Contractors, Inc. was the lowest responsible bidder in the amount of$237,644.11. Construction duration is 150 days and is anticipated to be completed in Spring 2016. APPROPRIATION CODE AND AMOUNT: 0315-92339-563700-541-000-0000 $224,766.30 0315-92277-563700-541-000-0000 $ 12,877.81 Funds are available in capital improvement program projects in amounts of $224,766.30 from 315-92339, New Sidewalks and $12,877.81, Streets and Sidewalks, to fund this contract. 8.4 Adopt a City Council Policy regarding Brick Streets. (consent) 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 Page 15 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 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. APPROPRIATION CODE AND AMOUNT: There is no funding associated with this item. In response to questions, Engineering Assistant Director Scott Rice said the item before Council does not include a credit for the life expectancy of bricks. Assistant City Manager Jill Silverboard said staff did not calculate the credit because the City would incur 100% of the initial cost to install the bricks. Engineering Director Mike Quillen said traffic calming projects require 65% approval of the property owners. Staff has amended the percentage requirement in the policy. Discussion ensued with comments made that the life expectancy of bricks is greater than asphalt and that property owners are not assessed for traffic calming projects. Concerns were expressed that the City cannot front load the cost for installing bricks and that the 51% approval may be too low. The City Attorney said that Council may define the percentage approval requirement. Florida Statutes require historic districts to have majority approval of the property owners. If the neighborhood was not a historic district, a vote would not be required. The policy before Council would be citywide. In response to questions, Mr. Rice said that a storm water/water/sewer utility work will be coordinated with the brick request for Harbor Oaks. Mr. Quillen said staff has requested an amendment to the grant funding agreement with the Southwest Water Management District to extend the time period but it has not yet been approved. The City will contact the property owners via certified letters and provide a 30-day response time. Page 16 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 In response to a comment, the City Attorney said staffs research of the Harbor Oaks Historic District indicated there were no brick streets previously. Staff was directed to take the item off the Consent Agenda. 9. Planning 9.1 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 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 more quickly from coastal flooding events, including sea level rise; • Position the city for future related funding opportunities that may become available; and, Page 17 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 • 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. In response to questions, Planner Manger Lauren Matzke said staff will help coordinate the steering committee meetings and review recommendations to ensure they address local needs and concerns. Staff has not discussed steering committee membership makeup with the DEO. Staff was directed to ask the DEO regarding how much effort will be placed on economic opportunities related to transportation. The Council recessed from 2:56 p.m. to 3:00 p.m. 10. Marine & Aviation 10.1Authorize 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. (consent) 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. Page 18 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 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 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 Page 19 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 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: 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 Page 20 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 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. 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. Page 21 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 In response to questions, Marine and Aviation Director Bill Morris said the selection committee was concerned with one proposal, the committee felt it would not feel expensive. The current tenant conducted an extensive review of what sells and revamps the menu to what customers want. Assistant City Manager Rod Irwin said Clearwater Beach is evolving but Clearwater Beach Seafood has an established clientele. The lease agreement will come back to Council for approval. Staff was directed to take the item off the Consent Agenda. 11. Information Technology 11.1Approve 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) The City has used TSO Mobile, Inc. as a vehicle GPS solution for the past 8 years. Recent increases in the number of unit installations (additional 120 units in last year), combined with changes in purchasing from `by department annually' to `enterprise-wide annually' will necessitate a rebid of these services this coming year. The City currently has 432 GPS units in use across 11 different field operations. The contract is a one-year agreement during which time a Request for Proposal will be issued and a service provider selected for a new 3-5 year contract (TSO Mobile will be eligible to bid). GPS tracking allows managers of field operations to improve efficiencies in the deployment of field resources and personnel as well as response to critical needs and emergencies. Due to new fleet vehicle installations in May through June, an additional $54,000 is needed in the current fiscal year Purchase Order BR510269, for a revised total of$144,000. APPROPRIATION CODE AND AMOUNT: Page 22 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 Funds are budgeted in the Information Technology operating budget. In response to a question, the City Manager said the devices will allow a more efficient management of field workers. 12. Customer Service 12.1Approve 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). 13. Solid Waste Page 23 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 13.1Approve 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) Harris Corporation and Sprintcom have requested an amendment to the Private-Public Partnership Service and Access Agreement between the City of Clearwater and Harris Corporation. The Private-Public Partnership Agreements authorizes Harris Corporation to maintain, advertise, and lease tower space to private agencies on the City's behalf. Revenue from leasing activities is shared between the City of Clearwater and Harris Corporation. The amendment to this agreement allows for direct negotiations between the City and Sprintcom Inc should the agreement between Sprintcom and Harris Corporation be terminated. The agreement is valid through Sep 30, 2022. 14. Official Records and Legislative Services 14.1Appoint an alternate member to the Community Development Board to fill the remainder of an unexpired term through April 30, 2018. There was consensus to appoint John Quattrocki. 14.2Appoint 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) 15. Legal 15.1Adopt 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. 15.2Adopt 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). 15.3Adopt 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). Page 24 City of Clearwater Council Work Session Meeting Minutes August 31, 2015 15.4Adopt 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. 15.5Adopt 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). 15.6Adopt 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). 15.7Adopt 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. 16. City Manager Verbal Reports — None. 17. City Attorney Verbal Reports — None. 18. New Business (items not on the agenda may be brought up asking they be scheduled for subsequent meetings or work sessions in accordance with Rule 1, Paragraph 2). Councilmember Hock-DiPolito said building contents needs to be considered when renewing and reviewing insurance policies. In response to a question Assistant City Manager Jill Silverboard said it was not known if the City's flood insurance policy for the Visitor Center on Clearwater Beach covered contents. 19. Closing Comments by Mayor — None. 20. Adjourn The meeting adjourned at 3:25 p.m. Page 25 City of Clearwater