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02/29/2016 Council Work Session Meeting Minutes February 29, 2016 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 m w Wes: ' e Meeting Minutes Monday, February 29, 2016 1 :00 PM Council Chambers Council Work Session Page 1 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 Roll Call Present 5 - Mayor George N. Cretekos, Councilmember Doreen Hock-DiPolito, Councilmember Hoyt Hamilton, Councilmember Bill Jonson, and Vice Mayor Jay E. Polglaze Also Present: William B. Horne 11 — City Manager, Jill S. Silverboard —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 recess from 1:01 p.m. to 1:52 p.m. to meet as the Community Redevelopment Agency. 2. Presentations — None. 3. Economic Development and Housing 3.1 Endorse the application for Project Atlas and commit the City of Clearwater to provide local financial support (Local Match) of ten percent of the eligible tax refund upon certification by the State of Florida Department of Economic Opportunity (DEO) and adopt Resolution 16-03. The Florida Legislature created Florida Statute, Section s.288.106 to encourage the growth of Florida's high-wage, value-added employment. This program is commonly known as the Qualified Target Industry Tax Refund Program (QTI Program). This law authorizes Enterprise Florida, Inc. to accept, review and recommend applications for consideration by DEO for tax refunds to qualified target industry businesses. Pursuant to Florida Statute, Sections s.288.075 and s.288.106, the applicant requests certain information, including the name of the company, remain confidential until such time as is required under statute or desired by the applicant. Project Atlas is the alias name of the applicant company. This Resolution provides a commitment of the City to support the QTI Program, which provides a performance-based incentive. The incentive is negotiated in advance of Project Atlas commitment to expand its operations in Page 2 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 the City of Clearwater. It does not guarantee payment until such time as the terms of the contract made between DEO and Project Atlas are met, subject to limitations described below. QTI Program Description The QTI Program works as an inducement to encourage companies to locate or expand in Florida. In accordance with the QTI Program eligibility criteria, no commitment to expand in Florida has been made at this time. The incentive may not exceed that which is requested in the application. As required by the QTI Program, the Project Atlas expansion will increase the Company's employment in Florida by greater than ten percent and, as evidenced by staff's economic impact analysis the proposed new jobs will make a significant economic contribution to the area economy. Description of Project Project Atlas is seeking State, County and City inducement to expand operations and to create additional jobs in the City of Clearwater. The Company projects to add 12 jobs over one year beginning in 2016. Project Atlas job creation schedule is as follows: PhaseNumber of net new full-time equivalent Florida jobs created in the business unitDate by which jobs will be created 1 12 12/31/2016 Total 12 Below are the types of jobs expected to be created by this manufacturing company: Business Unit Activities6 Digit NAICS Code(s)Project FunctionAnnualized Wage Electronic Manufacturing 334419 67% $43,750 Management/Admin Support 561110 33% $64,500 Average Wage 100% $49,340.00 Average wages of all new jobs created by Project Atlas is to be no less than $49,340, which is 115% of the Statewide Annual Average Wage as published by Enterprise Florida on January 1, 2015. QTI Program Request & Local Match Commitment The requested tax refund is to be paid to the applicant each state fiscal year (July 1- June 30) for a period of four years. If approved by DEO, Pinellas County and the City of Clearwater, the applicant will receive a refund for each new job created in the City of Clearwater. The QTI Program allows for a refund of eligible taxes paid that will equal a maximum of$3,000 per new job created Page 3 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 and $2,000 for the DEO High Impact Sector Bonus. Eighty percent of this award is provided by the State of Florida, with a Local Match of ten percent from the City of Clearwater and ten percent from Pinellas County. Therefore, the maximum Local City of Clearwater Match award per new job created is $1,500 for a total Local Match of$6,000. Payment Schedule Disbursement of the Local Match is spread over a period of four years. Twenty-five percent of the Local Match is paid out over a four-year period for each phase in which the jobs are created. The schedule is as follows: PHASE#JOBSELIGIBLE AWARD MAX OF 25%/YRFY1 6-17FY1 7-18 FY18-19 FY19-20 1 12 $60,000 $1,500 $1,500 $1,500 $1,500 $1,500 TOTAL 12 $60,000 $1,500 $1,500 $1,500 $1,500 The payment schedule is subject to the applicant continuing to meet all eligibility criteria which is verified each year by the DEO, the City of Clearwater and Pinellas County. Upon verification, the DEO requests the Local Match disbursement check from the City up to the maximum yearly allowed amount. The DEO then provides the disbursement to the applicant. Conditions of Limitation & Termination During the term of the agreement, the Local Match may be lowered under the following conditions: • If in any year the applicant does not achieve the job creation schedule but achieves at least eighty percent of the required new jobs, the company will receive a pro-rated refund less five percent penalty of the schedule award amount for that year. • If the total of the eligible taxes paid by the company is less than the maximum eligible refund amount awarded, the Local Match will be reduced on a pro-rated basis. The refunded amount will not exceed the amount of eligible taxes paid by the company. The Local Match may be eliminated under the following conditions: • If job creation falls below 80% of the required jobs, the company will not receive a refund and will be terminated from the program. • If the average wage falls below$49,340, the company will not receive a refund and will be terminated from the program. Page 4 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 APPROPRIATION CODE AND AMOUNT: The Fiscal Year 2016-2017 funding is currently available in special program 181-99846, Economic Development- QTI. Future year funding will need to be allocated during the City's annual budget process. Staff was directed to provide a list of the manufacturing facilities in Clearwater. In response to questions, Economic Development and Housing Assistant Director Denise Sanderson said Instrument Transformers was the previous project under the same program. Project Atlas is a long-standing business that is expanding. Economic Development and Housing Director Geri Campos Lopez said the items before Council is a result of the Department's business retention program, staff meets with prospective businesses to discuss potential options. 3.2 Endorse the application for Project Sweetooth and commit the City of Clearwater to provide local financial support (Local Match) of ten percent of the eligible tax refund upon certification by the State of Florida Department of Economic Opportunity (DEO) and adopt Resolution 16-01. The Florida Legislature created Florida Statute, Section s.288.106 to encourage the growth of Florida's high-wage, value-added employment. This program is commonly known as the Qualified Target Industry Tax Refund Program (QTI Program). This law authorizes Enterprise Florida, Inc. to accept, review and recommend applications for consideration by DEO for tax refunds to qualified target industry businesses. Pursuant to Florida Statute, Sections s.288.075 and s.288.106, the applicant requests certain information, including the name of the company, remain confidential until such time as is required under statute or desired by the applicant. Project Sweetooth is the alias name of the applicant company. This Resolution provides a commitment of the City to support the QTI Program, which provides a performance-based incentive. The incentive is negotiated in advance of Project Sweetooth's commitment to expand its operations in the City of Clearwater. It does not guarantee payment until such time as the terms of the contract made between DEO and Project Sweetooth are met, subject to limitations described below. QTI Program Description The QTI Program works as an inducement to encourage companies to locate or expand in Florida. In accordance with the QTI Program eligibility criteria, no Page 5 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 commitment to expand in Florida has been made at this time. The incentive may not exceed that which is requested in the application. As required by the QTI Program, the Project Sweetooth's expansion will increase the Company's employment in Florida by greater than 10% percent and, as evidenced by staff's economic impact analysis the proposed new jobs will make a significant economic contribution to the area economy. Description of Project Project Sweetooth is seeking State, County and City inducement to expand operations and to create additional jobs in the City of Clearwater. The Company projects to add 12 jobs in one year to be created by December 31, 2016. Project Sweetooth job creation schedule is as follows: PhaseNumber of net new full-time equivalent Florida jobs created in the business unitDate by which jobs will be created 1 12 12/31/2016 Total 12 Below are the types of jobs expected to be created by this manufacturing company: Business Unit Activities6 Digit NAICS Code(s)Project FunctionAnnualized Wage Manufacturing 311930 50% $35,000 HQ Administration 551114 50% $72,500 Average Wage 100% $53,750 Average wages of all new jobs created by Project Sweetooth is to be no less than $49,340, which is 115% of the Statewide Annual Average Wage as published by Enterprise Florida effective January 1, 2015. QTI Program Request & Local Match Commitment The requested tax refund is to be paid to the applicant each state fiscal year (July 1- June 30) for a period of four years. If approved by DEO, Pinellas County and the City of Clearwater, the applicant will receive a refund for each new job created in the City of Clearwater. The QTI Program allows for a refund of eligible taxes paid that will equal a maximum of$3,000 per new job created plus $2,000 per new job for DEO High Impact Sector Bonus. Eighty percent, $48,000, of this $60,000 award is provided by the State of Florida, with a Local Match of ten percent from the City of Clearwater and ten percent from Pinellas County. Therefore, the maximum Local Match award per new job created is $6,000 for City Local Match of$6,000 and $6,000 for Pinellas County Local Match. Payment Schedule of Local Match Page 6 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 Twenty-five percent of the Local Match is paid out over a four-year period for each phase in which the jobs are created. The schedule is as follows: PHASE#JOBSELIGIBLE AWARD MAX OF 25%/YRFY1 6-17FY1 7-18 FY18-19 FY19-20 1 12 $6,000 $1,500 $1,500 $1,500 $1.500 $1,500 TOTAL $1,500 $1,500 $1,500 $1,500 The payment schedule is subject to the applicant continuing to meet all eligibility criteria which is verified each year by the DEO, the City of Clearwater and Pinellas County. Upon verification, the DEO requests the Local Match disbursement check from the City up to the maximum yearly allowed amount. The DEO then provides the disbursement to the applicant. Conditions of Limitation & Termination During the term of the agreement, the Local Match may be lowered under the following conditions: • If in any year the applicant does not achieve the job creation schedule but achieves at least eighty percent of the required new jobs, the company will receive a pro-rated refund less five percent penalty of the schedule award amount for that year. • If the total of the eligible taxes paid by the company is less than the maximum eligible refund amount awarded, the Local Match will be reduced on a pro-rated basis. The refunded amount will not exceed the amount of eligible taxes paid by the company. The Local Match may be eliminated under the following conditions: • If job creation falls below 80% of the required jobs, the company will not receive a refund and will be terminated from the program. • If the average wage falls below$49,340, the company will not receive a refund and will be terminated from the program. APPROPRIATION CODE AND AMOUNT: The Fiscal Year 2016-17 funding is currently available in special program 181-99846, Economic Development- QTI. Future year funding will be allocated during the City's annual budget process. 3.3 Amend the Business Maintenance and Continued Performance Agreement with Instrument Transformers, Inc. and authorize the appropriate officials to execute same. Page 7 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 (consent) The Business Maintenance and Continued Performance Agreement (BMCPA) with Instrument Transformers, Inc. was approved by Council on March 10, 2014. The First Amendment to the BMCPA provides changes in the exemption period to Tax Year 2016 through Tax Year 2025 and the term to be in force through December 31, 2026. 3.4 Amend the Economic Development Ad Valorem Tax Exemption for Instrument Transformers, Inc. and pass Ordinance 8882-16 on first reading. Ordinance 8524-13 was passed on second reading on December 19, 2013, approving an Economic Development Ad Valorem Tax Exemption (ED AVTE) for Instrument Transformers, Inc. for Tax Year 2014 through Tax Year 2023. Ordinance 8882-16 amends the exemption period to Tax Year 2016 through Tax Year 2025 and amends the sunset date to end of Calendar Year 2026 allowing the company to receive the maximum value of the exemption following completion of the project in November 2015. 4. Finance 4.1 Approve the purchase of excess property insurance, including Boiler and Machinery and Terrorism coverages, from April 1, 2016 to April 1, 2017, at the level of insurance provided for in this agenda item, at an amount not to exceed $1,600,000; approve locking in the property rate of$0.247878 per $100 of values for an additional year, through April 1, 2018; and authorize the appropriate officials to execute same. (consent) The Risk Management Division of the Finance Department requested Arthur J. Gallagher and Co. (Florida) to obtain quotes for the property insurance program expiring April 1, 2016. Per the quotes obtained, Risk Management is recommending that the City continue with its current coverage of a $60 million wind limit with a maximum out-of-pocket deductible for hurricane damage and flood loss of$5 million and a $60 million flood limit. The self-insured retention (SIR) would remain at$100,000 per occurrence, with a 5% SIR for named storms up to the maximum deductible of$5 million. This $5 million deductible is a strong feature of this program due to the current soft market, available beginning with last year's renewal. The City currently has a stand-alone policy through Zurich that it first obtained in April 2012 to insure three city bridges, Sand Key Bridge, Mandalay Channel pedestrian bridge and the McMullen Booth pedestrian overpass. The bridge Page 8 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 policy has a self-insured retention (SIR) of$100,000 per occurrence, with a $500,000 SIR for named storms, and provides an additional $47 million of aggregate windstorm/flood/terrorism capacity that would otherwise be applied to the $60 million limit for the City's property insurance program. Zurich provided a three-year rate guarantee in April 2012 that they extended for an additional two years, through April 1, 2017. City staff will seek to either extend or replace the bridge program when it expires. The proposed renewal program includes Terrorism - Property and Liability coverage limits at$25 million for property damage and $10 million for liability. The program also provides Nuclear, Biological, Chemical & Radioactive Terrorism coverage with limits of$3 million. The renewal program also provides a total-limit increase from $50 million to $100 million for Equipment Breakdown coverage. Improvements were made to the property program sub-limits, which include the following: • Errors & Omissions - Increased from $2 million to $10 million • Mold, Fungus, Wet or Dry Rot - Increased from $500,000 to $1 million • Expediting Expense - Increased from $1 million to $5 million • Extra Expense - Increased from $5 million to $25 million • Miscellaneous Unnamed Locations - Increased from $2.5 million to $5 million • Reduced Minimum Deductibles for Named Wind and Flood - From $500,000 to $100,000 In addition, an option was provided to the City to lock in the proposed property rate for the 2017-2018 policy term. The property rate provided this year is the lowest property rate the City has seen since prior to the 2005 hurricane season. Total premiums in the first year of the two-year program are estimated to be $1,550,838.31. This represents a decrease of$187,394.16 (10.8%) from last year's program cost. Staff recommends adding a contingency bringing first year program cost to a not-to-exceed amount of$1,600,000. This program, combined with the abovementioned bridge program, represents a premium rate of$0.238 per$100 of values. The rate for the property program alone (not including bridges, terrorism and boiler & machinery) is $0.247878 per $100 of values (Property Rate). In past years, the City has negotiated this rate annually; however, at this time, the City has the option to lock the Property Rate for an additional year (through April 1, 2018). The Risk Management Division recommends locking in at this rate for the additional year to take advantage of this historically low rate. The Risk Management Division will be required to resubmit the City's statement of values prior to the second year of the program. While the rate will remain the same in the program's second year, the total premium may increase due to property acquisition, new construction, replacement-value increases, etc. The additional year with the locked Property Rate is subject to certain contingencies including the following: Page 9 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 the City's loss ratio will be required to be less than 40%, have no material changes in exposures, and the carrier must not have any loss or material change of their treaty reinsurance in order to maintain the same rate for the 2017 renewal. Risk Management believes that the recommended coverages will continue to cover the City's property risks at levels and rates which, when taken together as a whole, represent a reasonable insurance program for the City. APPROPRIATION CODE AND AMOUNT: Funds are available in cost code 590-07000-545100-519-000 to fund this expenditure. In response to a question, Arthur J. Gallagher Representative said if the insurance rate increases, the City's rate will remain flat during the 2-year term. 4.2 Approve blanket purchase orders (contracts) for clothing purchases and uniform rentals to DesignLab and Cintas, respectively, for the annual amounts and renewal terms cited, and authorize the appropriate officials to execute same. (consent) With the branding rollout and new logo introduction, departments are preparing to order clothing items. Purchasing has identified existing contracts available to piggyback that will result in cost savings to the City. City Code 2.564 Exceptions to Bid and Quotation Procedures, Item (d) provides for the utilization of cooperative purchasing contracts previously awarded by other governmental entities. Over the past few months, Public Utilities Director David Porter has researched and determined that rental uniforms are better suited for approximately 160 field employees who are routinely exposed to bio-hazard materials during their work. These workers will switch to rental uniforms and no longer wear home the clothing exposed to contamination during the work day. Three welders will be provided with flame resistant coveralls as well. Additionally, Building and Maintenance Superintendent Tom Wojtkiw has identified eight electrical trade employees including the supervisor who will be provided rental flame resistant garments. Purchasing requests Council authorization to utilize Pinellas County contract 123-006-B (expires August 2017) with Design Lab for clothing purchases such as button-down oxfords, polo shirts, light outerwear, high-visibility Personal Protective Equipment (PPE), and similar items; and the U.S. Communities contract 12-JLH-011 C (three-year commitment) with Cintas for rental uniforms including flame resistant garments. This request includes items for Page 10 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 Police Communications, but does not include Police and Fire crew uniforms. Departments have Fiscal Year 15/16 funds for routine replacement of uniforms and clothing items. On January 21, 2016, Council approved a Branding Roll-Out Special Program 181-98602 with a budget of$400,000 for funding clothing (non-routine in nature) and signage replacement. This authorization request for routine and non-routine clothing replacements is for an annual total not to exceed $250,000; and rental uniforms for an annual total not to exceed $100,000 with a three-year rental commitment, subject to appropriation of funds. APPROPRIATION CODE AND AMOUNT: Funding for approximately $256,000 of this contract has been included in the individual department's fiscal year 2016 budget. The remaining funding for non-routine uniform purchases due to the branding roll-out is available in special program 181-98602, Branding Roll-Out. 5. Parks and Recreation 5.1 Ratify and confirm the City Manager's approval of a purchase order (ST 112567) to Young Money Touring Inc. of Santa Monica, CA for $110,000 in order to secure a contract for the performance by Lil Wayne at Wild Splash to be held in Coachman Park on March 5, 2016. (consent) The City entered into a partnership agreement with Beasley Media Group (BMG) to produce "Wild Splash" on March 5, 2016. One of the provisions of the agreement is for the City to pay for the performers and BMG to reimburse the City with proceeds from the event. This has never been a problem in the past as the City has always been reimbursed for all costs of the concert as well as making a profit to be used for other special events in the City. Most of the performance contracts are less than $100,000, not needing Council approval. However, the contract negotiated and agreed to by the BMG with Young Money Touring Inc. (YMT) for the services of"Lil Wayne" was $110,000 thus requiring Council approval. In order to secure the contract and send the required retainer fee of$55,000 to YMT the City Manager approved the purchase order. In response to questions, Parks and Recreation Director Kevin Dunbar said Wild Splash in a high profile event. The City is reimbursed through ticket sales. The event has been sold out. Staff was directed to take Item 5.1 off the Consent Agenda. Page 11 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 5.2 Approve a purchase order (contract) to Construction Manager at Risk, Keystone Excavators, Inc., of Oldsmar, Florida in the amount of$230,039.98, which includes a 10% contingency, for site work and construction of a parking lot associated with Veteran's War Memorial at Crest Lake Park and authorize the appropriate officials to execute same. (consent) On July 16, 2015, the City Council approved establishing a Capital Improvement Project entitled Crest Lake Park Veteran's War Memorial (CIP 315-93647) for the construction of Phase I of a war memorial in accordance with a MOU (Memorandum of Understanding) between the City and the Tampa Bay Veterans Alliance (TBVA). Approved funding for Phase I came from $250,000 from general fund reserves and $150,000 of funds raised by TBVA which were in escrow for the project. On November 5, 2015 the City Council approved a Partnership and Funding Agreement (agreement) between the City of Clearwater and TBVA for the purpose of funding and constructing a Veterans War Memorial at Crest Lake Park. Staff and representatives from TBVA have agreed to a plan and design for the memorial and permits with SWFMD (Southwest Florida Water Management District) and the City have been approved to begin construction. A construction fence has been installed on the southeast corner of the park in anticipation of beginning the construction activities. This purchase order is for the construction of a 16-space asphalt parking lot to accommodate visitors to the memorial as well as providing the necessary site work to construct retention ponds and prepare the grade so that Phase I of the memorial can be constructed by others. Items which have already been purchased for the memorial include brick pavers, military medallions and light bollards, total approximately $32,000. Items still to be purchased include masonry blocks, wall caps, flag poles and lights; and installation of concrete walks, brick pavers and electrical service. If approved, Keystone Excavators will begin site work and construction on March 10. All construction on the memorial will be completed prior to the dedication of the memorial scheduled for Memorial Day, May 30, 2016. Keystone Excavators was selected under the Request for Qualifications process based on qualifications, experience on similar projects, staff experience and availability, and knowledge of City standards. Keystone has been the selected low bidder on many past city projects of similar scope and the City was pleased with their performance. APPROPRIATION CODE AND AMOUNT: Page 12 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 Funds are available in Capital Improvement Project 315-93647, Crest Lake Park Veterans War Memorial to fund the purchase order. In response to questions, Parks and Recreation Director Kevin Dunbar said site work will include the plaza and parking lot. Everything inside the fenced area will be leveled and regarded, including the burms. Mr. Dunbar said there are pine trees located in the immediate area. The dedication is scheduled for Memorial Day. 6. Engineering 6.1 Approve the First Amendment for Term Extension for the Countywide ATMS/ ITS Traffic Signal Interlocal Agreement and authorize the appropriate officials to execute same. (consent) Authorize the City Manager to execute the First Amendment for Term Extension for the Countywide ATMS / ITS Traffic Signal Interlocal Agreement between Pinellas County and the City of Clearwater dated March 2, 2006. On March 2, 2006, City Council approved the Countywide ATMS / ITS Traffic Signal Interlocal Agreement between Pinellas County and the City of Clearwater with an effective period of ten years with subsequent ten year renewals, unless terminated or canceled as provided therein. The County and the City entered into this Interlocal Agreement on May 18, 2006. The ATMS / ITS Interlocal Agreement defines the roles and responsibilities specific to the funding, construction, operation and maintenance of the ATMS / ITS systems within the City of Clearwater. Pinellas County and the City of Clearwater have determined that centralizing transportation management functions on major arterial roads throughout the City, in accordance with the Metropolitan Planning Organization's adopted ITS plan, will provide for increased safety and efficiency of the countywide roadway network. To accomplish this, the City transferred traffic control jurisdiction and operation of roadways to Pinellas County as the ATMS / ITS equipment is installed. The County will continue to be responsible for funding relative to implementation and operation of new and existing ATMS / ITS corridors throughout the City. The City's Traffic Operations Division will continue to maintain the traffic signalization equipment on existing and new ATMS / ITS corridors within the City, and continue to be reimbursed by the County for said maintenance. This action would authorize the City Manager to execute the first renewal of the Page 13 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 ATMS / ITS Interlocal Agreement for another ten (10) years, providing the Pinellas County Administrator does the same. In response to questions, Traffic Operations Manager Paul Bertels said CSX owns the railroad tracks and have federal authority to maintain and install devices on their timeline. The City and the Florida Department of Transportation did encourage them to complete the project prior to Spring Break. Mr. Bertels said adaptive control traffic signal coordination takes each intersection and optimizes its efficiency to shorten the overall trip on that corridor, even when the driver is stopped at every other light. In-sync has been installed on from Belcher Road to Island Estates, it will be installed on Coachman Road to Damascus Road as the construction on US Hwy 19 is completed. 6.2 Approve a work order to Engineer of Record (EOR) King Engineering Associates, Inc. in the amount of$427,200 for Kapok Terrace - Sanitary Sewer Expansion Project (15-0036-UT) and approve amendment 1 with Florida Department of Environmental Protection (FDEP) for the increased amount of$250,000 for the construction of sanitary sewer expansion program; and authorize the appropriate officials to execute same. (consent) This Agenda Item provides for updated planning, design services, and permitting for the construction of new sanitary sewer system to connect areas that are currently served by septic tanks as identified in The City's Sewer System Expansion Feasibility Study of 2012. This project will target the Kapok Terrace area - the next area on the priority list. The new system will connect approximately 135 properties to City's sanitary system. This project also includes various stormwater and sidewalk improvements inside the Kapok Terrace area. The design phase is anticipated to be completed by March 2017, followed up by the construction phase currently anticipated to be from July 2017 through November 2018. King Engineering Associates, Inc. is one of the City's EOR, and this work order was negotiated in accordance with the Consultants Competitive Negotiations Act. FDEP agreement LP52090 was approved in the amount of$250,000 for the construction of sanitary sewer expansion program in Fiscal Year 2014 Page 14 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 - 2015. Amendment 1 is to increase the agreement by the amount of $250,000 for the same program in Fiscal Year 2015 - 2016. The total amount of this agreement is $500,000 and there is no cost associated with accepting the amendment. APPROPRIATION CODE AND AMOUNT: 0315-96630-561300-535-000-0000 $377,641 0315-96124-561200-539-000-0000 $ 44,379 0315-92277-561200-541-000-0000 $ 5,180 A first quarter budget amendment will increase budget only of Capital Improvement Program (CIP) project 0315-96630, Sanitary Sewer Extension, by $500,000 for FDEP grant funding for FY14/15 and FY15/16 which provides funding. A first quarter amendment will transfer$500,000 from Facilities Upgrade project 0315-96654 to Sanitary Sewer Expansion project 0315-96630. Sufficient funding is available in Capital Improvement Program projects in amounts of$377,641 from 0315-96630, Sanitary Sewer Extension, $44,379 from 0315-96124, Storm Pipe System Improvements, and $5,180 from 0315-92277, Streets & Sidewalks for total funding of$427,200 to fund the work order. In response to questions, Engineering Assistant Director Scott Rice said Kapok Park is located to the west of the subject area. The owner for a property located in the middle of the map will be able to sign an agreement to annex. 7. Planning 7.1 Accept the annual report on the status of development agreements. (WSO) Community Development Code Section 4-606.J states that the city manager shall review all lands within the city subject to a development agreement at least once every 12 months to determine if there has been demonstrated good-faith compliance with the terms of the development agreement. Staff has provided a memorandum that includes a list of the Development Agreement applications (DVAs) and Hotel Density Reserve Development Agreements (HDAs) entered into by the City and a status of the agreement and associated project, if applicable. Page 15 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 8. Marine & Aviation 8.1 Approve the Fourth Amendment to the lease agreement dated September 17, 2012 by and between the City of Clearwater, Florida (Lessor) and the Marina Cantina, LLC, (Lessee),and authorize the appropriate officials to execute same. (consent) This amendment addresses interior and exterior space rent, the names assigned to first floor restaurant spaces and amends and finalizes completion date for each space. The City of Clearwater entered into an agreement with the Marina Cantina, LLC on September 17, 2012. This lease was amended with a First Amendment on June 19, 2013 to modify the terms and conditions resulting from the hold over tenants of the former gift shop, which affected the square footage of the Lease Agreement with the lessee as the lessee took over and gained that former gift shop square footage. This lease was amended with a Second Amendment on October 5, 2015 to take into account a brief construction delay caused by improvements that were not initially contemplated in the initial lease agreement. The Second Amendment provided an extension of the completion date by three months to have the restaurant open by January 1, 2016. This lease was amended by a Third Amendment on November 20, 2015. The third amendment provided the documentation and instrument for the lessee's costs ($409,606.49) to be brought forward for reimbursement by the Lessor. These were for unforeseen costs for emergency repairs, exterior and common space glass, doors, and fire rated drop ceilings along with costs not budgeted for bringing the entire building to a uniform appearance and in compliance with current building codes. This Fourth Amendment will amend the following paragraphs of the Marina Cantina, LLC lease: Paragraph 4 is replaced in its entirety and defines the Premises use by business names and services as follows: 1) a full service restaurant with full liquor bar, bar service, and outdoor seating referred to as "Marina Cantina", (2) a full service restaurant with full liquor bar, bar service, and outdoor seating referred to as "Salt Cracker"; (3) and a pizza restaurant with outdoor seating referred to as `Roundabout Pizza." The "Roundabout Pizza" spaces may also be used as a prep kitchen for Marina Cantina and Salt Cracker. Roundabout Pizza may also be used for deliveries and storage of items necessary to conduct the permissible business activities. Unauthorized use of the Premises Page 16 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 will constitute an event of default. Paragraph 5(a), subparagraphs (c) through (h) and Q) are replaced in their entirety due to updated square footage calculations of both interior and exterior space. Amend paragraph 5 to adjust the eventual interior square footage to 10,141 square feet and outdoor/patio square footage to 15,578 square feet. Amend paragraph 5a to include "Salt Cracker" and "Roundabout Pizza" in the percentage of alcohol sales owed to the City. The percentage of alcohol sales remittance shall be made along with the Lessee's payment of the monthly rent. Amend paragraph 5c "iii" to add increased interior square footage and increase the dollar calculations proportionately commencing the date of the Certificate of Occupancy. Amend paragraphs 5d - 5h to reflect the increased square footage to 10,141 square feet with the payments to be calculated based on the amended interior square footage number. Amend paragraph 5j to bring the deposit amount up to the new rate of $7605.75 to secure faithful performance of the Lessee's obligations. Paragraphs 15 (f) (4) and (5) have been added to address lease violation and abandonment clauses, default and termination provisions. Paragraph 16 has been amended to extend the restaurants opening dates to April 1, 2016, for Marina Cantina and Salt Cracker defined spaces and Labor day 2016 for the Roundabout Pizza restaurant. In response to questions, Marine and Aviation Director Bill Morris said the Salt Cracker Restaurant will be located in the space previously occupied by the gift shop; Roundabout Pizza will be located on the east end of the building (previously the entrance to the post office). The restrooms and elevator will be on the third floor and the bar on the second floor account for the additional square footage. 9. Official Records and Legislative Services 9.1 Appoint one member to the Nuisance Abatement Board with term to expire February 28, 2020. Page 17 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 APPOINTMENT WORKSHEET BOARD: Nuisance Abatement Board TERM: 4 years FINANCIAL DISCLOSURE: Yes APPOINTED BY: City Council RESIDENCY REQUIREMENT: City of Clearwater MEMBERS: 7 APPTS. NEEDED: 1 Purpose: The Nuisance Abatement Board will be composed of seven city residents who will conduct hearings on public nuisance cases associated with prostitution and drug-related activities on known properties throughout the City. THE FOLLOWING BOARD MEMBER HAS RESIGNED AND NOW REQUIRES REPLACEMENT BY A NEW APPOINTEE: Richard (Dick) L. Ruben - 1430 Gulf Blvd. #501, 33767 - Retired/Business Original appointment: 8/20/15 Resigned: 2/4/16 THE NAMES BELOW ARE BEING SUBMITTED FOR CONSIDERATION TO FILL THE ABOVE VACANCY: 1. Gary H. Baker - 55 Rogers Street#402, 33756 -Attorney 2. Greg A. Brown - 1279 Bermuda St., 33755 - Production Assistant 3. Jeffrey E. Feeley - 3301 San Domingo St., 33759 - Real Estate Investor 4. Carole Hayes - 2087 Edgewater Dr., Unit G., 33755 - Retired/BS Education 5. Mary Ann Lane - 3030 Homestead Ct., 33759 - Clinical Social Worker 6. Kevin R. T. Laughlin - 1237 Rose Road, 33759 - Industrial Safety Training 7. Susan Oliveto - 100 Waverly Way#303, 33756 - English Teacher/Librarian 8. James Strobusch - 31 Island Way#807, 33767 - Retired/HR Management 9. Michelle Thomann-Ramirez - 10 S. Keystone Dr., 33755 -Art Educator/Artist Zip codes of current members: 4 at 33755 2 at 33756 Current Categories: Attorney HR Analyst Restaurant Owner Retired Business Management Page 18 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 Retired/Management Retired Teacher There was consensus to appoint Mr. Laughlin. Staff was directed to place Item 9.1 on the Consent Agenda. 10. Legal 10.1Amend Section 27.06, Code of Ordinances, to extend the installment payment period for special assessments from not more than ten years to not more than twenty years, and pass Ordinance 8845-16 on first reading. The Council recessed from 2:51 p.m. to 2:56 p.m. 10.2Adopt Ordinance 8821-16 on second reading, annexing certain real properties whose post office addresses are 2118, 2142 and 2166 Bell Cheer Drive, Clearwater, Florida 33764 into the corporate limits of the city and redefining the boundary lines of the city to include said addition. 10.3Adopt Ordinance 8822-16 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 properties whose post office addresses are 2118, 2142 and 2166 Bell Cheer Drive, Clearwater, Florida 33764, upon annexation into the City of Clearwater, as Residential Low (RL). 10.4Adopt Ordinance 8823-16 on second reading, amending the Zoning Atlas of the city by zoning certain real properties whose post office addresses are 2118, 2142 and 2166 Bell Cheer Drive, Clearwater, Florida 33764, upon annexation into the City of Clearwater as Low Medium Density Residential (LMDR). 11. City Manager Verbal Reports 11.1Clearwater Beach Marina Parking Plan - Eric Wilson, Parking Manager and Mike Quillen, Engineering Director The City Manager said Parking Manager Eric Wilson would provide a summarized presentation of the proposal addressing the parking needs at the Clearwater marina. Staff has met with the Clearwater Marina Association and Page 19 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 worked through a proposal that is supported by all involved. Mr. Wilson will also be providing information and requesting guidance on the proposed parking pass fee structure. Mr. Wilson said city staff from different departments met to come up with possible solutions. 110 marina tenants were sent surveys and 40% responded. Staff conducted a meet and greet in November to discuss the options with tenants who were not able to participate in the survey. Questions focused on what the tenants need to operate their businesses. There are many aspects of the marina that affect parking including recreational boaters, fishing boat businesses, party boats, dinner cruises, restaurants, as well as the beach which is located 200 yards away. Possible solutions to help with the parking gridlock include creating a parking permit office, eliminate or greatly reduce the amount of employees that utilize the marina lot, create signage that helps direct people to park in appropriate lots, and facilitate a contracted valet service. Currently, police aides are stationed in the marina lot to educate visitors as to who is allowed to park there and re-route beach goers to other lots, they also alert parking enforcement to violations. Mr. Wilson said people are event driven and do not think of parking until they reach their destination. They ignore signs or take the risk of receiving a parking citation and paying a penalty. A parking permit office would offer a more efficient, centralized, and streamlined approach to the parking permits that are currently sold at participating businesses. It has been discovered that some businesses sell permits for other activities on the beach. A valet service is something that can be modified as time goes on if needed. Staff anticipates that valet service would be used for the large party boats, restaurants, and dinner cruise boat participants. Staff met with a consultant and Mr. Chavez of Baystar regarding his proposal for long term and short term valet parking lots within the marina lot. The valet would determine which lot would be used based on the activity the customer is participating in. The service would come at a cost to the customer. Research has indicated that the cost for this type of service ranges between $1,000 and$3,000 a day. Valet would stack the cars in rows versus using the parking spots as they are currently striped. Staff recommends having this type of service in the afternoon, when the lot is busiest(i.e., when people arrive for all day fishing trips, when people arrive for dinner cruises, when people go to the restaurants). Mr. Wilson said people who come to the beach for dinner typically stay up to 2.5 hours. Customers could also utilize the meter spaces with a permit if they chose not to use the valet parking. In response to questions, Mr. Wilson said the City and the valet company would work together on removable signage. It will take up to 8 weeks for a contractor to remove the islands in the parking lot, resurface, and restripe the lot for valet purposes. The lot could still be used during valet off times. Mr. Wilson explained that the permit office would instruct visitors on where they Page 20 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 could park and it would depend on how long they would be parked. If a visitor arrived at 10:00 a.m. for a 3-hour dolphin tour and the valet started at 12:00 p.m., the permit office would instruct the visitor to not park in the valet section. The City hired Walker Consultant to look at the plan from a valet perspective, which will be completed next week. In regards to stacking the vehicles, the City Manager said the lot would not get the car density if a valet system was not used. Marina Business Owner Frank Chivas spoke in support of a valet system for the lot and expressed concern regarding the hours of operation. He supported an all day valet service would be appropriate. Discussion ensued with consensus to give patrons a 30-minute parking credit. There was also consensus to look at adding additional parking and to continue to study the situation. Double Eagle Vice President Chad Haggert spoke in support of a valet system and said there is a bigger issue with parking cars for afternoon trips than for morning trips. Mr. Wilson reviewed current parking rates and the plan to increase the rates over the next two years, the current rates are old and the rates will be staggered over the next two years to bring them up to date. Increasing the rates will help offset the marina parking maintenance. The City Manager said the City has subsidized the parking for the marina and there is a reason the rates are not higher than they are. There has been pushback from marina tenants as they believe increasing the cost of parking will affect their businesses. Discussion ensued regarding the amount of the meter and parking pass rates with consensus to increase the annual parking pass from $200 to $225 and the monthly parking pass from $26 to $30. The City Manager said the topic would be brought back to discuss any increases for 2018. The Council recessed from 4:45 p.m. to 4:50 p.m. 11.2Tourist Development Council funding request for Ruth Eckerd Hall Parks and Recreation Director Kevin Dunbar said staff has received a request from Ruth Eckerd Hall (REH) to submit an grant application for TDC funding on REH's behalf. The City Manager said council direction is needed regarding the request. In response to questions, Administrative Support Manager Felicia Donnelly Page 21 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 said the grant constraints require lease periods to be at least 20 years, REH leases the facility from the City, which only has 15 years remaining. The City must apply for the TDC grant since there is less than 20 years remaining on the current lease agreement. REH is requesting $5 million ($1 million per year for five years). Mr. Dunbar said there may be city projects the City may want to submit under the same grant program. The Mayor said the TDC is not accepting applications currently but are positioning themselves so they are ready to move forward once the funding availability is established. The City Attorney said she would have to look at the previous lease agreements to determine total lease period, as there are current charter restrictions on lease periods. There was consensus to support the request. 12. City Attorney Verbal Reports The City Attorney said she will be presenting an agreement with Clearwater Ferry at the council meeting. 13. Council Discussion Item 13.1 Policy Regarding Infrastructure Work that May Impact Traffic - Councilmember Hamilton AND 13.2Spring Break - Councilmember Hamilton Councilmember Hamilton said historically the Spring Break season has been March through April but really begins in mid February. He said policy for staff should entail any requests for major project that impact major roadways should not be conducted February through April unless absolutely necessary. He suggested these projects should be completed prior to February. In response to questions, the City Manager said the Police Department and other staff have used the March through April timeframe to establish the Spring Break period. Councilmember Hamilton expressed concerns with the recent CSX railroad work impacting traffic to the beach. Parks and Recreation Director Kevin Dunbar said the Department's special events and activities occur Labor Day through March. If the suggested policy change is approved by Council, staff will try to work with other agencies to institutionalize the Page 22 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 project completion deadline. The City Manager said staff can only control city work. No action taken. 13.3Positive discussion on transportation alternatives - Councilmember Jonson Councilmember Jonson complimented the Mayor for his leadership during the special council meeting. Council was able to go through the agenda while problem solving and seeking alternatives. He thanked Councilmember Hamilton for bringing his experience at the beach to the conversation. 13.4Resolution supporting establishing a maintenance budget partnership to enable Florida Department of Transportation installed landscaping within the right-of-way at overpasses on US 19 - Councilmember Jonson Councilmember Jonson requested consideration to pursue landscaping within the right-of-way at the overpasses on US Hwy. 19. Discussion ensued with comments made that the request has been presented to Council previously and not supported by Council, the current landscaping is sufficient and that the decorative panels act as a landscape. It was stated that the decorative panels were installed at the City's request. A concern was expressed that the City would be required to maintain the landscaping. Support was expressed for low maintenance xeriscaping. It was stated that enhanced landscaping would support the City's new bright and beautiful brand. In response to questions, Parks and Recreation Director Kevin Dunbar said the estimated cost to landscape four corners of a street is $5,000. The big issue is picking up the trash. The Department contracts the landscape maintenance work. Mr. Dunbar said the Department maintains over 600 properties. 14. New Business (items not on the agenda may be brought up asking they be Page 23 City of Clearwater Council Work Session Meeting Minutes February 29, 2016 scheduled for subsequent meetings or work sessions in accordance with Rule 1, Paragraph 2). Councilmember Hock-DiPolito said she sent an email to the City Manager requesting a presentations for the Bike Share Program, automated vehicles transportation, and Echelon Group regarding cable propelled elevated transit at a future council meeting. The Mayor requested that a presentation by individuals who have approached the City re the gondola proposal also be scheduled. 15. Closing Comments by Mayor The Mayor congratulated Vice Mayor Polglaze on the birth of his first grandchild. 16. Adjourn The meeting adjourned at 5:36 p.m. Page 24 City of Clearwater