06/13/2006
CITY COUNCIL WORKSESSION MINUTES
CITY OF CLEARWATER
June 13, 2006
Present: Frank Hibbard Mayor
Carlen Petersen Vice-Mayor
William C. Jonson Councilmember
John Doran Councilmember
Absent: Hoyt P. Hamilton Councilmember
Also present: William B. Horne II City Manager
Garry Brumback Assistant City Manager
Pamela K. Akin City Attorney
Cynthia E. Goudeau City Clerk
Brenda Moses Board Reporter
The Mayor called the meeting to order at 1:30 p.m. at City Hall.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
Presentations
Service Awards
One service award was presented to a City employee.
Recognize graduates of Supervisory Training Program
Graduates of the City’s Supervisory Training Program were congratulated for completing
the course.
The Council recessed from 1:31 to 1:38 p.m. to meet as the Pension Trustees.
Gas System
Adopt Resolution 06-38 approving the Gas Supply Agreement 2 with Florida Gas Utility and
necessary documents to accomplish same.
The purpose of this agenda item is to approve a gas supply agreement with Florida Gas
Utility (FGU) allowing Clearwater to participate in the Gas Supply Acquisition Project 2 (GSAP
2), which consists of pre-purchasing a 20-year supply of natural gas at a discounted price
relative to the daily gas market. Once all the participating FGU members sign the GSAP 2
agreements, FGU will execute a 20-year Prepaid Gas Purchase agreement with UBS AG, then
issue debt in the form of tax-exempt bonds to pay for the gas supply. Clearwater’s participation
share in GSAP 2 is estimated at 15%. This translates to approximately 30% of Clearwater’s
customer supply requirements, which includes a 4% annual growth factor over the 20-year
period. The GSAP 2 agreement is another purchasing mechanism to better control the supply
and cost of gas in a rising energy market. Currently daily gas prices are averaging $7 per million
Btu (MMBtu). Anticipated savings will be approximately 40 - 45 cents per MMBtu lower than the
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daily market, which translates to approximately $8 million in savings over the life of the contract.
These savings will be passed on to our customers through our Purchased Gas Adjustment
(PGA) rate on our customer’s monthly bill. FGU is a not for profit joint action agency made up of
23 Florida Cities including Clearwater. It’s anticipated that 14 members of FGU will participate
in GSAP 2. Clearwater currently has an All Requirements Agreement with FGU that was signed
on 2/15/02. The All Requirements Agreement obligates Clearwater to purchase 100% of our
gas supply through FGU. The GSAP 2 agreement will be a supplement to the All Requirements
Agreement.
In response to questions, Managing Director of Clearwater Gas System Chuck
Warrington said in the event of a default, FGU would pursue collection. Even in default or
bankruptcy restructuring, the offending city would have to provide gas to their customers. It was
remarked that if the gas is not paid for, there is no default as it would be an insolvency issue.
Marine and Aviation
Approve Resolution 06-36 authorizing the Marine & Aviation Department to act as Project
Manager for the Florida Fish and Wildlife Conservation Commission (FWC) Boating
Infrastructure Grant Program on behalf of the City of Clearwater.
Item was pulled by staff as State is requiring changes.
Planning
Review Draft Evaluation and Appraisal Report and Provide Direction. (WSO)
The State of Florida mandates that all local governments review and update their
Comprehensive Plans based on their review every seven (7) years. The Planning Department
has been working with a consultant and a Citizen Advisory Committee (CAC) for the past year
on the conduct of the City of Clearwater’s Evaluation and Appraisal Report of it’s
Comprehensive Plan. The Draft was developed following nine (9) meetings with the CAC, and
nearly 30 meetings with representatives from the surrounding jurisdictions, Pinellas County, the
Department of Community Affairs (DCA), and other state agencies, and staff from nearly all City
departments including Engineering, Traffic, Public Utilities, Parks and Recreation, Police, Fire
and Economic Development. The Community Development Board reviewed the draft EAR at its
regularly scheduled meeting on May 16, 2006, and unanimously recommended approval.
In response to questions, Planning Manager Steven Brown said the last population
review was done in 1997. He said the intent of the transportation concurrency exception areas
is to focus growth in specific areas with incentives and provide mechanisms to deal with
concurrency in a broader sense such as by providing alternative transportation mode. Planning
Director Michael Delk said some cities look at transportation zones as a tool to facilitate urban
infill and redevelopment while discouraging sprawl. It was remarked that the beach does not
have adequate transportation at peak times. Mr. Delk said there are more concurrency
opportunities on US19, Gulf-to-Bay Boulevard, and corridors with opportunities for economic
development or infill, not at the beach or Downtown.
Discussion ensued.
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Mr. Delk said as this is a draft, staff will continue to analyze these recommendations and
meet individually with Councilmembers before adopted in September.
Official Records and Legislative Services
Appoint a voting delegate to the Florida League of Cities' Annual Conference, August 10-12,
2006.
Consensus was to appoint Councilmember Jonson to represent Clearwater.
Legal
The City Attorney requested a one-hour Attorney Client Session re Stowell V. City.
Consensus was to schedule the session as 12:30 p.m. on July 31, 2006.
Council Discussion Items
Jolley Trolley Support
The City Manager said staff is entering into negotiations with the Jolley Trolley and
reported feedback from the community indicates the Jolley Trolley should take on more of a
tourist apporach.
Parks & Recreation Director Kevin Dunbar reviewed history of the Jolley Trolley and
current contract. Mr. Dunbar said the Jolley Trolley is requesting Council to consider a five-year
agreement and to increase its subsidy to offset fuel costs. Although a previous Commission
had expected them to become self-sustaining, the Jolley Trolley feels they have done all they
can to increase revenues and will never be in a position to stop receiving City subsidies, as their
existence is contingent upon that support. They also propose to increase their fares. Staff has
discussed the possibility of the Jolley Trolley reaching out to tourist-based businesses, however
they do not feel it viable.
Discussion ensued. In response to questions, Mr. Dunbar said he was unsure if the
charters cover associated expenses. The Jolley Trolley routes are imposed by PSTA. He said
he has not asked them what changes they would make if those limitations were removed.
It was suggested the City determine if their level of service is one the City can continue
to support to the level being asked for by the Jolley Trolley before a final decision is made to
continue the subsidy.
13. Other Council Action
Mayor Elected President of Pinellas County Mayors’ Council
Mayor Hibbard reported he was elected President of the Pinellas County Mayors’
Council. He requested administrative support from the Official Records and Legislative
Services Department.
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Councilmembers reported on events in which they participated and reviewed upcoming
events.
Mayor Hibbard expressed concern regarding legislative efforts at federal level affecting
franchise agreements.
Councilmember Jonson provided councilmembers with handouts regarding SLC
(Suncoast League of Cities) Annual Conference and St. Petersburg’s Bus Rapid Transit. He
commented that Clearwater and one other City do not go through a formal approval process of
Work Session minutes and suggested formal approval be considered. He wants to draft a letter
to thank Representative Bill Young for removing language out of the emergency appropriations
bill.
14. Adjourn
The meeting adjourned at 4:12 p.m.
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