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09/12/1994 CITY COMMISSION MEETING September 12, 1994 The City Commission of the City of Clearwater met in regular session at City Hall, Monday, September 12, 1994 at 1:16 p.m., with the following members present: Rita Garvey Mayor/Commissioner Fred A. Thomas Vice-Mayor/Commissioner Richard Fitzgerald Commissioner Sue A. Berfield Commissioner Arthur X. Deegan, II Commissioner Also present: Elizabeth M. Deptula City Manager Kathy S. Rice Deputy City Manager William C. Baker Assistant City Manager Alan Zimmet Interim City Attorney (departed at 1:56 p.m.) P. Richard Hull Assistant City Attorney (arrived at 2:04 p.m.) Cynthia E. Goudeau City Clerk The Mayor called the meeting to order and led the Pledge of Allegiance. The invocation was offered by William C. Baker, Assistant City Manager. In order to provide continuity for research, the items will be listed in agenda order although not necessarily discussed in that order. ITEM #3 - Service Awards Seven service awards were presented to City employees. ITEM #4 - Interim City Attorney Report a) Ord. #5691-94 - charter amendments Interim City Attorney Alan Zimmet requested the City Commission review the proposed charter amendments prior to a vote on Thursday, September 15, 1994. Commissioner Fitzgerald expressed concerns the referendum questions were not clear. Mr. Zimmet recommended reviewing each question as a separate issue as there are three questions amending Section 2.01 (d). Commissioner Fitzgerald expressed concerns that citizens, wishing to reach an informed decision, will review the City Charter Section for a rational reason for the changes and not find any. Mr. Zimmet suggested the City could provide the voters information, without taking a position. He said the items were separated in case citizens chose to vote for one change to Section 2.01 (d) and against another. Commissioner Thomas requested the City Manager be directed to put together information to explain the referendum questions. Commissioner Fitzgerald agreed the voters should have access to clear and concise information. Mr. Zimmet noted any problems arising from the vote can be rectified at the March election. Commissioner Fitzgerald expressed concerns that the proposed referendum question regarding donating and leasing property did not make it clear the maximum length of a lease and renewal was a total of 60 years, with or without a referendum. Commissioner Deegan noted there are requests for long term leases, some as long as 90 years, during negotiations, and providing for longer leases through referendum makes this option available. Commissioner Thomas felt 60 years was more than long term. Majority agreement was that leases should never be more than 60 years total, initial term and renewal(s). Closed door sessions Mr. Zimmet requested two closed door attorney sessions regarding City versus Church of Scientology Flag Service Organization, Inc. and City versus Pick Kwik Food Stores, Inc. and Nostimo, Inc. A session regarding Pick Kwik was scheduled for Thursday, September 15, 1994, at 4:00 p.m. followed by a session regarding Scientology at 4:30 p.m. The Commission recessed from 1:55 to 1:59 p.m. to meet as the Pension Trustees. ITEM #5 - Approval of Minutes It was noted the City Clerk had distributed some corrections. Commissioner Berfield referred to page 3 and questioned if consensus regarding term limits was unanimous. The City Clerk indicated when discussion began, one member requested it be included in March but, in the end, all five agreed to include it on the November ballot. Commissioner Berfield moved to approve the minutes of the regular meeting of August 29, 1994, as corrected by the City Clerk. The motion was duly seconded and carried unanimously. ITEM #6 - Presentations a) Historic Preservation Board - Annual Report Janet McNutt thanked the Commission for the opportunity to present the Historic Preservation Board's Annual Report. She reported the Board's activities included supporting the installation of Harbor Oaks on the National Register, identifying the Kravas building parking lot site, and a rehabilitation review of the Harrison House. Mayor Garvey thanked Ms. McNutt and the Board for their time and efforts. b) Memorial Causeway mangroves Tom Miller, Assistant Director/Public Works/Environmental, reported the City Commission had requested staff to respond to public concerns regarding mangroves along Edgewater Drive and the Memorial Causeway. He indicated the Parks & Recreation Department, by request of the City Commission, removed the Brazilian pepper trees from the causeway and trimmed the sea grapes so motorists can see the water views under these plants. Mr. Miller indicated staff is monitoring all changes made at the State level regarding mangroves. He reported local governments are not permitted to adopt rules other than those of the State. He noted a change has been made regarding the required mitigation ratio. Mr. Miller said staff has analyzed Memorial Causeway's vistas from the motorist's level. He stated most mangroves on the causeway's eastern end are 17 to 20 feet high. Those closer to the beach are shorter. The causeway is surrounded by an aquatic preserve and State law forbids any changes to the biological integrity of aquatic preserves. State law permits the annual removal of the top 25% of mangroves as long as they are not trimmed below seven feet. As this type of trimming would not improve motorists' vistas, he suggested raising them could allow views of the water. Mr. Miller indicated after the Environmental Advisory Committee (EAC) was advised of this plan, they issued a statement reconfirming the importance of mangroves and promoting the maintenance of mangroves in their natural state. Mr. Miller stated the proposed bridge's height will permit better views of the area. He also suggested a lower speed limit would permit visitors a better chance to see the beautiful vistas. The Mayor noted if cold weather follows a trimming, there could be problems with freezing and loss of mangroves. Commissioner Thomas stated mangroves appear to die in a freeze but do come back. He questioned if State law permits clearing out dead plants and thereby creating a view. Mr. Miller replied dead wood can be removed but a lag time is required before removal of mangroves to be certain they are dead. Commissioner Thomas noted there were no mangroves on the causeway's south side. He questioned if the City could develop a program to plant mangroves on the spoil island south of the causeway. Mr. Miller indicated the island has achieved equilibrium with the plants it will support. Commissioner Thomas questioned if the City could establish a program to enlarge the island. Mr. Miller stated the City could, but the island is close to navigable water. He reported staff has completed mangrove plantings in public areas such as Stevenson's Creek and Tampa Bay. Commissioner Thomas noted huge areas of Clearwater Harbor are not navigable. He requested staff come back with recommendations of alternate locations for mangrove plantings. Mayor Garvey referred to the uninterrupted views south of the causeway and questioned why additional vistas were necessary. Commissioner Thomas stated he was satisfied with the existing views. His original concern was clearing out the influx of Brazilian pepper trees on the causeway. Commissioner Berfield questioned if the causeway loses mangroves when the new bridge is built, if the City would have to mitigate that action. Mr. Miller indicated mitigation would be required and stormwater treatment also would need to be addressed. Commissioner Berfield suggested the island could be used for some of that mitigation. The majority agreed there be no trimming of the mangroves on the Memorial Causeway. ITEM #7 - Citizens to be heard re items not on the Agenda - None. CITY MANAGER REPORTS CONSENT AGENDA (Items #8-22) - Approved as submitted less Items 10, 11, 19, & 21. ITEM #8 - Declare personal property (18 vehicles) surplus to City needs and authorize disposal through Tampa Machinery Auction, Tampa, FL (AS) ITEM #9 - Ratify/Confirm emergency purchase by City Manager of Novell Netware software upgrades for 11 Local Area Networks from InaCom Information Systems, Tampa, FL, for $18,128 (AS) ITEM #10 - See page 5. ITEM #11 - See page 6. ITEM #12 - Contract for burglar & fire alarm service & monitoring at 44 City facilities to The Maire Co., Clearwater, FL, for the period 10/01/94- 09/30/97, for $59,400 (GS) ITEM #13 - Contract for cellular telephone service to GTE Mobilnet, Clearwater, FL, for the period 10/01/94- 09/30/97, at an estimated $150,000 (GS) ITEM #14 - Extension of contract for mental health/substance abuse coverage with Professional Psychological Services (PPS), Clearwater, FL, for the period 01/01/95- 12/31/95, at an estimated $156,083 (HR) ITEM #15 - Contract for non-contributory life insurance plan for full-time City employees & eligible retirees to Business Men's Assurance Life (BMA), Kansas City, MO, for the period 01/01/95- 12/31/95, at an estimated $10,300 (HR) ITEM #16 - Contract for basic term life insurance for SAMP employees to Business Men's Assurance Life (BMA), Kansas City, MO, for the period 01/01/95- 12/31/97, at an estimated $20,000 (HR) ITEM #17 - Contract for statutory life insurance policy for Police & Fire personnel to ITT Hartford, Hartford, CT, for the period 01/01/95- 12/31/97, at an estimated $6,220 (HR) ITEM #18 - Purchase of 50 Smith & Wesson 9mm double action pistols from Standard Law Enforcement Co., Longwood, FL, for $21,597 (PD) ITEM #19 - See page 8. ITEM #20 - Contract to develop final project design & permit application re Edgewater Drive Shoreline Restoration to Coastal Environmental Inc., St. Petersburg, FL, for $14,950 (PW) ITEM #21 - See page 10. ITEM #22 - Joint Project Agreement with Pinellas County for utility installation by roadway contractor for the Betty Lane Bridge Replacement at Stevenson's Creek for an estimated $361,425.75 (PW) Commissioner Berfield referred to Item #9 and questioned if this purchase would upgrade the network to utilize version 3.X versus 2.X. The Deputy City Manager indicated it would. Commissioner Deegan moved to approve the Consent Agenda as submitted less Items 10, 11, 19, & 21 and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. OTHER ITEMS ON CITY MANAGER REPORT ITEM #10 - Contract for routine service & repair of vehicle transmissions with Suncoast Industries, Inc., d/b/a Aamco Transmissions, Clearwater, FL, for the period 10/01/94- 09/30/97, at an estimated not to exceed $120,000 ($40,000 annually) (GS) Bids were solicited and received for the routine service and repair of vehicle transmissions for sedans and trucks including replacement of transmission fluid and filters and any necessary transmission adjustments. Contracting these services ensures the maintenance will be performed on schedule at a competitive price. The current contract is split between Suncoast Industries, Inc. (Aamco) for large truck vehicles, and Mr. Transmission for sedans and small trucks. Suncoast Industries, Inc. has been very responsive to the City's needs, and the City has enjoyed a good working relationship with this firm. Mr. Transmission protested this solicitation's bid specifications prior to the bid opening. On advice from the City's Legal staff, bids were opened. Suncoast Industries, Inc. submitted the only responsible bid. Mr. Transmission was not responsive to the bid specifications omitting from its bid package: 1) a list of ASE certified mechanics including individual qualifications and years of experience; 2) a list of shop equipment; 3) a statement of the respondent's ability to work on the types of vehicles; 4) a financial statement for the most recent year; 5) the availability of exchange units; and 6) a listing of similar contracts held with other governmental entities and private firms. The bid received was analyzed and estimates were calculated for the number of routine service and transmission repairs in a 12-month period; it is estimated this service shall not exceed $40,000 per year or $120,000 for the three-year contract. Unit prices will remain the same during the contract's term. Deputy City Manager Kathy Rice reported after Mr. Transmission protested the bid specifications, they were reviewed and found to be accurate. The bid was opened following this review. Mr. Transmission did not submit all of the required documents and staff recommended the contract be awarded to Aamco. Commissioner Thomas questioned if the City had responded to the letter Mr. Transmission sent to the Commission. Ms. Rice indicated staff did not address all of the points included in that letter. She said Assistant City Attorney Hull is handling the bid protest. Commissioner Thomas noted the letter indicated a great difference of opinion and requested Mr. Transmission's letter be answered paragraph by paragraph before the Commission approves the contract. He requested the item be continued so staff could answer the charges. Mayor Garvey noted staff had followed the established procedure for a bid protest. Ms. Rice agreed Mr. Transmission's correspondence with the City Commission was outside the protest procedure. Mr. Hull stated this item could not discussed in a closed session because there was no pending litigation. Mayor Garvey questioned if there was a threat of a lawsuit. Mr. Hull indicated not overtly, but Mr. Transmission has an attorney and has requested documents which the City has supplied. The Mayor suggested the attorneys talk to each other. Commissioner Deegan agreed to a need for answers to the questions raised in Mr. Transmission's letter prior to awarding the contract. Commissioner Thomas moved to continue this item until staff supplies answers to questions posed in Mr. Transmission's letter to the City Commission. The motion was duly seconded. Commissioner Thomas expressed concerns with awarding a multiple year contract. Upon the vote being taken, the motion carried unanimously. ITEM #11 - Contract for contracted-operated Parts Store for Fleet Maintenance to The Parts House, Inc., St. Petersburg, FL, for the period 10/01/94- 09/30/99, at an estimated not to exceed $800,000 per year (GS) Bids were solicited and received for a contract requiring the vendor to supply vehicle parts and personnel at the Fleet Maintenance Division. The City's current contractor, Anderson Auto Parks, Inc., failed to submit a bid. The only bid submitted for this solicitation, from The Parts House, Inc's., was compared to the existing contract to ensure competitive cost estimates. Costs and contractual obligations were found to be identical except the proposed contract provides the City with an average 53% discount off listed parts compared with the existing contract's average 48% discount. Since 1979, the City's contractual arrangement with private parts companies has been beneficial and cost-effective. The third-party parts operation eliminated four City positions and associated expenses. This contract allows Fleet Maintenance to utilize the private vendor's inventory, purchasing power and warehouse space. Therefore, Fleet Maintenance does not have to purchase inventory, pay interest, expand the size of the parts room, or absorb an estimated 30% parts obsolescence cost. The private parts contractor has made available invaluable training assistance to Fleet Maintenance personnel, generally at no cost. Updated technical training keeps mechanics apprised of rapidly-changing technologies in the automotive and equipment industries. Bill Baird, General Services Director, indicated the costs for parts were separated into three areas: 1) standard list items; 2) items not on the list; and 3) special order parts. Commissioner Thomas stated the price list is easily changed rendering the discount meaningless. He expressed concerns that a five-year contract would leave the City exposed to abuse. He suggested the contract allow an audit of the vendor's true costs before a percentage discount is established. Mayor Garvey noted the contract permits the City to audit the vendor. Mr. Baird indicated staff pursued a longer contract to negotiate a better percentage rate. He stated the vendor cannot use in-house price lists but must maintain the manufacturers' parts lists. Price changes, which must be initiated by the manufacturer, are available for staff perusal any time. He agreed the manufacturer may offer rebates to the contractor. He said the City is concentrating on the price lists and monitoring the discount. Commissioner Thomas stated many things can be negotiated in a long term contract. He did not oppose long term contracts but opposed not getting the best deal for the City. He requested continuing this item for 30 days or limiting the contract to one year. Commissioner Deegan reviewed the training, storage, and staff reduction benefits of the five year contract. He opposed reducing the contract's length and associated benefits. Assistant City Manager William Baker stated when the City negotiates contracts, the proposals reflect the vendors' ability to submit a bid that reflects anticipated rebates and their proficiency at lowering expenses. Commissioner Thomas agreed the public sector cannot be as flexible as the private sector in negotiations. Commissioner Thomas expressed concerns that only one bid was submitted after 14 were solicited. Mr. Baird indicated he had hoped the longer terms would attract additional bidders. He reported the existing contractor misread the due date on the cover sheet. The City Manager indicated staff advised that contractor the City could not consider a tardy bid. She spoke in favor of this innovative approach to supplying parts. Commissioner Thomas questioned if the City Manager was comfortable that this represented the best deal for the City. Ms. Deptula stated, given the public process, this was the best deal. Commissioner Thomas moved to approve the contracted-operated parts store for Fleet Maintenance to The Parts House, Inc., for the period 10/01/94- 09/30/99, at an estimated not to exceed $800,000 per year. The motion was duly seconded and carried unanimously. The City Commission recessed from 2:59 to 3:12 p.m. ITEM #19 - License Agreement with New World Communications of Tampa, Inc. (WTVT Channel 13) for a radio receiver & related equipment for the purpose of monitoring Clearwater Police Department radio dispatch transmissions for the benefit of their TV news production operation (PD) Due to the technology inherent in 800 mHz trunked radio, radio transmissions are not easily monitored with traditional, "over-the-counter" equipment. Since the City installed its 800 mHz trunked system in 1989, various news media organizations have shown sporadic interest in leasing City equipment to monitor police dispatches. In 1990, the City Commission awarded a license agreement to the St. Petersburg Times leasing two radio receivers. New World Communications of Tampa, Inc., owner of WTVT television, Channel 13, has requested leasing one desktop radio receiver and power supply under a similar agreement. Under the proposal, New World Communications will be required to pay the City an initial license fee of $20, an equipment fee of $2,444.50 (equal to the City's purchase cost of the leased equipment), plus an annual maintenance fee of $180 per year per unit. These fees ensure the City incurs no costs in the execution of the agreement. The City shall maintain ownership of the equipment and will perform all equipment maintenance. The equipment will have no transmission capability and will be modified to receive only the Police Department's primary dispatch channels and not tactical, investigative, or supervisory channels. Over the past four years, the City has not experienced any problems regarding the agreement with the St. Petersburg Times. Commissioner Thomas stated the Commission needs to debate if providing the media with police communications is correct policy. He noted it is virtually impossible for the public to use scanners to eavesdrop on police equipment and said security is extremely important. Chief of Police Sid Klein indicated he had sent a September 1, 1994 memorandum to the Commission outlining his position in detail. He reported the agreement with the St. Petersburg Times has not resulted in any operational or security problems. He stated it was a convenience for the Police Department not having to field questions regarding the media's numerous requests. Chief Klein recommended approval of this item. He said the Department has a good relationship with the St. Petersburg Times and noted this is only the second request for equipment. Commissioner Deegan noted this equipment is only available to full time news organizations. He indicated his agreement with present policy. Commissioner Fitzgerald questioned why Commissioner Thomas feels it is wrong for the media to have access to this information when the Police Chief indicated there were no operational problems and security mechanisms were in place. Commissioner Thomas expressed concerns with equipment tampering expanding the number of available channels. He requested assurances that "whiz kids" would be unable to alter the equipment's capabilities. Commissioner Fitzgerald noted this was not a particular problem and stated the City wants the media to be informed. He reiterated the Chief's motive to reduce telephone calls that tie up Department personnel and expressed concern there was no demonstration of a problem that needed solving. Commissioner Thomas stated he was concerned with long term ramifications. Commissioner Deegan felt Chief Klein's memorandum was helpful and satisfied his concerns. Mayor Garvey agreed. Commissioner Thomas reiterated the issue is knowing, with absolute certainty, that the equipment cannot be tampered with and is secure. Chief Klein indicated the radios are limited to major access channel and cannot be altered. Commissioner Thomas expressed concerns with the safety of Police Officers. Chief Klein replied he would not recommend the agreement if he had concerns. Commissioner Berfield questioned if the City has the right to terminate the agreement. Chief Klein indicated there were no time limitations. Commissioner Deegan questioned if this agreement was the same as the contract with the St. Petersburg Times. Chief Klein said it was the same. Commissioner Deegan questioned the City's cost to provide this service. He felt it cost more than the $20 fee to process the license. He questioned if the City would recover their total costs. Mayor Garvey noted the equipment fee is more than $2,000 and the annual maintenance fee is $180 per year. Commissioner Deegan referred to the License Agreement, Section 4(d), last sentence. He stated if the Licensee loses or destroys the equipment, they should pay the replacement cost whether or not the equipment is replaced. Chief Klein noted the Licensee pays for the equipment up front. He agreed the phrase, "before the equipment will be replaced," could be deleted from the Agreement. Commissioner Fitzgerald questioned why the $20 license fee needed to be reexamined. He noted the City is doing itself a favor by providing this equipment and objected to initiating a big study to determine a higher licensing fee. He noted the limited number of these licenses issued by the City. Commissioner Thomas questioned the City's cost to execute this agreement. The City Manager indicated she did not know. Chief Klein stated the agreement is exactly the same as the one issued the St. Petersburg Times in 1990. Commissioner Deegan expressed concerns that all City costs were not covered. Commissioner Thomas recommended increasing the license fee to $200. Commissioner Deegan concurred. Commissioner Fitzgerald felt it was inappropriate to arbitrarily establish a high fee. Commissioner Thomas moved to increase the license fee to $200. Commissioner Deegan indicated he preferred first receiving a cost estimate from the City Manager. The Mayor recommended the City Manager put together a presentation on the license and maintenance fees for Thursday, September 15, 1994. The City Manager requested this item be pulled until Thursday. ITEM #21 - Renewal of contract for parking attendant services at the Pier 60 and S. Gulfview parking lots with Republic Parking Systems, Chattanooga, TN, for the period 10/01/94- 09/30/95, for $260,610 (PW) Attendant parking began at the Pier 60 lot in April 1990, and at the two S Gulfview lots in March 1993. On August 24, 1993, bids were received to provide attendant services at these three lots. Republic Parking Systems was awarded the contract that included two one-year renewal options. Republic Parking Systems agreed to extend the existing contract at the same amount for the first one-year renewal. Since the operation's inception, the City has received some citizen complaints and encountered procedural difficulties with attendants. Republic Parking Systems has been very responsive in addressing these issues. When the contract was re-bid last year, specifications included an on-site manager for direct operational oversight. This person has served as the liaison to the City's Parking System and has proactively taken steps to resolve procedural problems as instructed by City staff. The level of service has improved significantly and has warranted staff's recommendation for renewal of the contract. Commissioner Thomas reported a desire to do away with Beach parking fees was expressed at a recent emergency meeting of the Clearwater Beach Association. He said the merchants indicated they would be willing to pay the costs. Mayor Garvey observed they could not begin to repay the more than $1 million annual parking revenues that would be lost. Tracey Bruch, Parking Facilities Manager, reported the proposed contract has a 30 day termination clause. Commissioner Thomas indicated he wanted the Clearwater representatives to be informed of the size of beach parking revenues and what that revenue means to the City. Commissioner Thomas moved to approve the renewal of the contract for parking attendant services at the Pier 60 and S Gulfview parking lots with Republic Parking Systems. The motion was duly seconded and carried unanimously. ITEM #23 - Contract for health insurance to Prudential Healthcare System of Tampa Bay, Tampa, FL, for the period 01/01/95- 12/31/95, at an estimated $3,358,877 (HR) Under City Commission direction, the City's insurance consultant, Wittner & Company, prepared a request for proposal for the health insurance contract. Wittner & Company worked closely with the Insurance Committee, composed of representatives of the four unions representing City's employees (CWA, FOP (Sergeants and Lieutenants), FOP #10, and IAFF), representatives from the Human Resources Department, Payroll and Finance Divisions of the Administrative Services Department, and the City Manager's Department. Cigna's renewal rate included a 15% increase plus an additional $450,000 for deficit recovery. The final recommendations from the committee are: 1) Award health insurance to Prudential Health Care System under a fully-insured funding arrangement. Prudential represents the best overall combination of quality and geographic distribution of networks, price to benefit ratio, the ability to provide quality customer service and support, reference checks, and rate caps for second and third year renewals; 2) Continue the contribution of premium for individual coverage; 3) Continue the contribution subsidy for dependent coverage for the HMO option ($23.49 per month for calendar year 1995); and 4) Continue the employee's dual coverage where the City pays single coverage for one employee and the single coverage amount for the second employee towards dependent coverage. The second employee is listed as a dependent. The City budgets $2,600 per full-time employee per year. The maximum cost per employee for Prudential is $2,161.44; $100.44 per employee per year is used to fund mental health/substance abuse coverage. The disposition of any remaining funds will be determined at the conclusion of contract negotiations. Deputy City Manager Rice noted the Insurance Committee has been very successful during the last three years in containing costs. She stated the Committee, knowing a change from Cigna would require 60% of City employees to change doctors, released a Request for Proposal (RFP). Based on bids received, the Committee unanimously recommended Prudential Health Care System. Commissioner Thomas questioned the size of the co-pay. Ms. Rice indicated it was $15. Commissioner Thomas expressed concerns that Cigna lost $1 million last year servicing the City. He questioned if anything in the union contracts covered medical insurance abuse. Ms. Rice said no. She indicated personnel can be disciplined for abusing their sick leave. The City Manager stated personnel can be disciplined for filing fraudulent claims for personal gain. Commissioner Thomas felt the City's health insurance coverage is out of control and needs to be controlled. Commissioner Thomas questioned the cost of prescriptions. Ms. Rice indicated the co-pay is $5 for generic medicine and $10 for name brand. Commissioner Thomas questioned if staff had the ability to see from where Cigna's great loss came. Tom Richarme, of Wittner & Company, requested Commissioner Thomas define the terms "use" and "abuse" and suggested "abuse" was a deliberate misuse. Commissioner Thomas noted Cigna's estimate of costs was 25% short. He stated there must be a reason the numbers are as high as they are. Mr. Richarme reported the City provided information on the past three years to all respondents to the RFP. He noted there have been several large claims over the last few years. He said Cigna's study of claims indicated City employees have generally been sicker than normal. Ms. Rice reported staff analyzed the claims and found no pattern. Mr. Richarme explained the managed care concept designates the primary physician as gatekeeper to more expensive care. Commissioner Thomas requested staff review the impact if the co-pay was increased to $20 and prescriptions were increased to $10 and $15. Mr. Richarme indicated the RFP included an invitation for bidders to propose higher co-pay limits. Commissioner Thomas questioned if there was a significant decrease on premiums if the cost of the co-pays was increased. Mr. Richarme replied the Committee had not reviewed co-pays higher than $15. Commissioner Thomas questioned the family rate listed for Prudential Health Care System. Mr. Richarme stated the $180 for single coverage is included in the $439.06 dependent rate. Commissioner Thomas questioned if the policy can be canceled in 30 days. Mr. Richarme stated it could be. Commissioner Thomas noted that would allow the City to review this matter again next year. Commissioner Berfield questioned if the City had higher than normal use figures. She noted Cigna encourages annual physicals and well care visits. Mr. Richarme indicated the theory of managed care is preventive primary care. He agreed it could account for some of the high use. Commissioner Berfield noted some physicians are on both Cigna's and Prudential Health Care's list. She questioned if personnel with those physicians could maintain their same doctors. Mr. Richarme indicated some physicians at Cigna medical centers are employed by Cigna to only care for Cigna patients. Mr. Richarme commended the Insurance Committee for their work. Commissioner Deegan complimented the Committee and Mr. Richarme for their hard work. As a footnote, he noted Humana, while not having a contract with Morton Plant Hospital, does have a contract with Clearwater Community Hospital. Mayor Garvey also complimented the Committee. Commissioner Thomas moved to approve the contract for health insurance with Prudential Healthcare System of Tampa Bay for the period 01/01/95 to 12/31/95 at an estimated cost of $3,358,877. The motion was duly seconded and carried unanimously. ITEM #24 - Purchase of flood insurance coverages for specific City owned property for FY 1994/95, at an amount not to exceed $35,000 (AS) Arthur J. Gallagher is the broker for the City's flood insurance program. Premiums are paid directly to the insurance companies by separate check for each insured property. Regardless of the insurance company issuing coverage, premiums are the same. The City has not experienced any problems with the companies and Risk Management recommends renewal. The City is obligated to purchase first dollar flood insurance coverage on these properties. The City Administration, through Risk Management, recommends renewal of the following flood insurance policies: Policy Period 11/12/94 -11/12/95, Bankers Insurance for the Beach Civic Center/Library for an estimated $2,975; Waste Treatment Center on Gulf to Bay Blvd. for an estimated $1,181; Clearwater Beach Recreation Center for an estimated $2,492; and the Marina offices for an estimated $1,181; Policy Period 01/31/95- 01/31/96, Bankers Insurance for the Fire Station at 1700 N. Belcher Road for an estimated $3,787; Policy Period 06/12/95- 06/12/96, Bankers Insurance for the Fire Station at 534 Mandalay for an estimated $2,830; and the Beach Police Station for an estimated $627; Policy Period 09/28/94 -9/28/95, South Carolina Insurance for the Waste Water Treatment Plant on Harbor Drive for an estimated $6,794; and Policy Period 08/03/94 -08/03/95, Bankers Insurance for the Clearwater Sailing Center for an estimated $7,256. An estimate of annual renewal rates for flood insurance coverage on these buildings totals $29,123. Leo Schrader, Risk Manager, presented an overview of the City's flood insurance needs. He noted the recommended expenditure is higher than the total premiums due to his need to cover additional properties as they may be purchased throughout the year. Commissioner Thomas questioned the high rate for the Sailing Center even though it is elevated and built to standards. Mr. Schrader indicated there may be an elevation problem there. Commissioner Thomas questioned if the City could self-insure any properties and questioned the flooding history during the last 20 years. Mr. Schrader indicated in his six years on staff there have been no losses or damage due to flooding. The City Manager indicated the City is obligated to purchase first dollar flood insurance coverage in order to qualify for federal replacement money in case of a disaster. Commissioner Thomas questioned if the City purchases the minimum level of insurance, would it qualify for federal funding. Mr. Schrader indicated it would. Commissioner Berfield questioned the problem with the Sailing Center's elevation. Mr. Schrader stated when it was constructed, it was not built high enough above sea level. Commissioner Berfield questioned if it was built to standards. Mayor Garvey requested staff gather details regarding the Sailing Center and forward them to the Commission. Commissioner Fitzgerald moved to purchase flood insurance coverages for specific City owned property as indicated above for FY 1994/95, at an amount not to exceed $35,000. The motion was duly seconded and carried unanimously. ITEM #25 - Purchase of excess Auto/General Liability/Workers' Compensation insurance coverage for FY 1994/95, for $283,118 (AS) The City Administration, through Risk Management, recommends the City Commission purchase a Package Policy from Ranger Insurance through the insurance broker, Acordia, for Excess Auto/ Excess General Liability/ Excess Workers' Compensation Coverage ($5 million) for Fiscal Year 1994/95. Although the City covers excess Workers' Compensation insurance, the City does not have excess Auto or excess General Liability policies. The package program proposed offers a wide range of coverages including the increased costs of medical treatments and technologies, that may be incurred as a result of such claims. This bid, submitted in response to the City's Request for Proposal for Liability/ Workers' Compensation Insurance, represents the only combined proposal received. Risk Management staff believes purchasing this combined package is in the City's best interest. Coverage is for 10/01/94- 09/30/95. Leo Schrader, Risk Manager, reported the City has not carried excess general liability insurance for many years due to its high cost. He stated current policy covering excess Workers' Compensation through the Florida League of Cities has been increased substantially. He said new proposals were requested. Staff recommends purchasing coverage through Ranger Insurance. Mr. Schrader indicated it is significant that the City is picking up valuable liability coverage. He reported Pinellas County has had this same package for the past three years. Commissioner Deegan moved to purchase excess Auto/General Liability/Workers' Compensation insurance coverage for FY 1994/95, for $283,118 from Ranger Insurance. The motion was duly seconded and carried unanimously. ITEM #26 - Purchase/renewal of property & casualty insurance for FY 1994/95, at an amount not to exceed $418,000 (AS) The City Administration, through Risk Management, recommends the City purchase/renew its Property and Casualty Insurance Coverage for FY 1994/95 as follows: 1) Renewal of excess property coverage (Layer 1, 10 mil) through Westchester Fire for a premium of $152,430; 2) New coverage of excess property coverage (Layer 2, 40 mil) through Hartford Fire, Royal Surplus and Mr. Airy and renewal coverage through Fireman's Fund for a premium of $200,216; 3) New coverage of excess property coverage (Layer 3, 20 mil) through Fireman's Fund and Zurich for a premium of $30,038; 4) Crime & Dishonesty renewal through Hartford for a premium of $6,863; 5) Boiler & Machinery renewal through Kemper for a premium of $6,271; and 6) Marina Operators renewal through Hartford for a premium of $12,775. The City's Insurance Broker, Arthur J. Gallagher, requested quotes from 54 companies relating to property excess insurance. The proposed excess property rates of $408,593 represent the lowest rates received by Risk Management for this coverage. Based on the low amount of renewal premium quoted and Mr. Gallagher's knowledge of the marketplace, Mr. Gallagher did not request quotes for the Crime & Dishonesty, Boiler & Machinery and Marina Operators policies. The City has not experienced any problems with the companies recommended by staff. The City's Risk Management staff has reviewed the coverages, rates, and firms recommended and concurs with Mr. Gallagher's recommendation to renew and/or purchase new policies as listed. All property risks are covered at levels and rates, which taken together, represent an optimum property and casualty insurance program. Recommended purchases are for the one year period, 10/01/94- 09/30/95. Leo Schrader, Risk Manager, reported the insurance market has not yet recovered from Hurricane Andrew. He noted these purchases are made through Arthur J Gallagher and the renewal represents an increase of less than $5,000. Commissioner Thomas moved to approve the purchase/renewal of property & casualty insurance for FY 1994/95, at an amount not to exceed $418,000. The motion was duly seconded and carried unanimously. Commissioner Deegan noted only $2 million was left in the Central Insurance Fund. He questioned how the funds would be restored. Ms. Deptula indicated by billing and charges to other departments. Commissioner Deegan questioned if these costs were included in next fiscal year's budget allocations. Ms. Deptula indicated they were. ITEM #27 - Contract for purchase of real property on Clearwater Harbor, lying west of Pierce Blvd. and south of Pierce 100 Condominium, commonly known as the "Norman Bie" property from First Federal/Osceola for $175,000 and related costs estimated at $4,211 for an estimated total of $179,211 (PW) In March 1992, First Federal/Osceola acquired the "Norman Bie" property in a mortgage foreclosure. On March 9, 1993, Baynard Appraisal Co., St. Petersburg, valued the property's fee simple interest at $480,000, projecting 46 residential units as permittable on the site. For ad valorem tax purposes, the Pinellas County Property Appraiser currently estimates the property's value at $190,700. Until recently, the property was listed with and offered for sale by Auction Associates, Inc. of Orlando for $490,000. This unique site, adjacent to and overlooking Clearwater Harbor, contains approximately 1.16 acres of upland and 8.44 acres of submerged lands. In addition to unobstructed views of Clearwater Harbor, the site provides the City with an opportunity to implement innovative stormwater treatment of the discharge from a major outfall for Downtown Clearwater, in conjunction with restoration of the shoreline for habitat enhancement. The submerged lands also may allow greater opportunity for development of an intertidal wetland community. The purchase and development of this property, although standing alone, would complement development of the envisioned Downtown lake project. Additional estimated expenses include: 1) $1,200 for a Phase I commercial environmental site assessment; 2) $3,000 for a boundary and topographical survey; and 3) $11 for closing costs. If the seller is able to provide copies of a previous survey, survey costs would be reduced. Ms. Rice stated the City's interest in the property began two years ago when Commissioner Berfield pointed out the property was in bankruptcy. Mayor Garvey agreed the Commission discussed the property for years but its asking price had been much too high. Ms. Rice indicated the property is not completely undevelopable. Commissioner Deegan noted the cover memorandum for this item states this is an excellent piece of property for City opportunities. He stated, though the intended use may be part of a larger program, he has not seen the larger program and questioned how the property would specifically be used for the total stormwater management program. He questioned what risk there would be to delay this purchase. Ms. Rice indicated the risk was that another may purchase the property and develop it. Mayor Garvey felt the price was excellent. Commissioner Thomas questioned if the City has a plan to construct stormwater treatment on the site. Tom Miller, Assistant Director/Public Works/Environmental, said staff has developed a conceptual plan for a Downtown lake program but is waiting for the completion of the Downtown Development Plan before proceeding. He stated the concept is to sheet flow water across the Bie property rather than through an outfall point. Commissioner Thomas questioned if there was a value to water filtering down the bluff through normal seepage. Mr. Miller stated there were many details to review. Commissioner Thomas questioned the value of the property and how it could be developed by the private sector. Assistant City Manager William Baker stated Mr. Bie had developed a site plan for 14 - 23 units that obeyed every rule but was not feasible financially. Commissioner Thomas noted Mr. Bie's long period of ownership would have resulted in a low cost factor which means it would be less feasible for a new owner. Mr. Baker felt environmentalists would oppose construction on the site no matter what was proposed. Commissioner Thomas moved to approve the contract to purchase real property on Clearwater Harbor, lying west of Pierce Blvd. and south of Pierce 100 Condominium, commonly known as the "Norman Bie" property aka M&Bs 24/06, 24/03, and 24/05 in Section 16/29/15, from First Federal/Osceola for $175,000 and related costs estimated at $4,211 for an estimated total of $179,211. The motion was duly seconded. Upon the vote being taken, Commissioners Berfield, Fitzgerald, and Thomas and Mayor Garvey voted "Aye;" Commissioner Deegan voted "Nay." Motion carried. ITEM #28 - Contract for purchase of real property known as 1010 Engman Street, from Alfred S. and Annie R. Bridges for $14,000 and related costs estimated at $5,460 for an estimated total of $19,460 (PW) In September 1988, the N Greenwood Economic Task Force, Clearwater Neighborhood Housing Services and the Neighborhood Re-Investment Corporation developed the N Greenwood Commercial District General Development Plan to revitalize the N Greenwood business district, including the development of a parking lot in the vicinity of Palm Bluff or LaSalle Street. When the City Commission adopted the Penny for Pinellas interlocal agreement in 1989, $300,000 was earmarked for the revitalization program. On January 6, 1994, the City Commission approved the purchase of three lots immediately adjacent to the east of the subject property for inclusion in the proposed N Greenwood parking lot. Mr. Bridges was not willing to sell the subject property at that time but is now willing to sell it for the appraised value of $14,000 determined for the City on September 29, 1993, by Candler-Sawyer & Associates. On May 13, 1994, the Commission approved the 10-year lease of a portion of the Christ Temple Church property at 1304 N Greenwood linking the City's N Greenwood Sub-Station with the Bridges' property. Purchase of the subject property completes the assemblage as originally planned for the N Greenwood parking lot that will be owned, operated, and constructed by the City of Clearwater and will be free of charge. Additional estimated expenses include: 1) $700 for environmental and asbestos surveys; 2) $1,500 for asbestos removal (if necessary); 3) $3,250 for demolition; and 4) $10 for transaction closing costs. Commissioner Deegan moved to approve the contract to purchase the southern 100 feet of Lot 5, Blk C, C E Jackson's subdivision, located at 1010 Engman Street, from Alfred S. and Annie R. Bridges for $14,000 and related costs estimated at $5,460 for an estimated total of $19,460. The motion was duly seconded and carried unanimously. ITEM #29 - Award Sale of $8,110,000 Gas System Revenue Bonds, Series 1994A to Prudential Securities who submitted the best bid in accordance with the terms of the Notice of Bond Sale (AS) Gas System Revenue Bonds, Series 1994A, for not exceeding $8.25 million will accommodate the first three years capital expenditure budget, FY 1993/96, for the Pinellas County portion of the Clearwater Gas System (CGS) Strategic Plan. Since the proceeds of this issue will only be used in Pinellas County, no validation was required. This issue was advertised for competitive public sale scheduled for 12:00 noon on September 12, 1994. Margie Simmons, Finance Director, reported Prudential Securities was the high bidder, at 6.2452%. She stated 19 of the 29 firms contacted regarding a direct sale had expressed mild interest, but none bid. Commissioner Thomas questioned the rate of return consumers will receive. David Thorton of Raymond James & Associates, Inc., indicated some bonds would mature in 11 years at a 6% interest rates. He stated serial bonds 2017 - 2020 would have 6% coupons with an original price of 99.75% for 2017, 99.5% for 2018, 99.25% for 2019, and 99% for 2020. He stated the interest rates on bonds maturing in 2024 would be 6.1%. Commissioner Thomas questioned if investors would receive a 6% return. Mr. Thorton stated the rate varies according to maturity from 6% to 6.13%. Commissioner Thomas noted the City is paying 6.2452% interest plus fees. Mr. Thorton indicated the underwriters' cost is included in the 6.2452%. Commissioner Thomas questioned the City's true cost and asked if the rate includes the bond counsel fee or Raymond James' charges. It was indicated they were not. Commissioner Thomas questioned the City's true cost. Mr. Thorton estimated the cost at 6.4% but indicated the numbers would have to be calculated to establish an accurate figure. Commissioner Thomas noted consumers will be receiving 6%. Mr. Thorton indicated the average was 6.1%. Commissioner Thomas compared the consumer's true rate of return with what the City is paying in interest and indicated the City can determine a savings to citizens if the City sells bonds directly to investors. Mr. Thorton stated he could provide that number at a later date. The City Manager stated the operational costs avoided by marketing bonds through a securities company needs to be part of the equation. Commissioner Thomas moved to award the sale of $8,110,000 Gas System Revenue Bonds, Series 1994A to Prudential Securities. The motion was duly seconded and carried unanimously. The Assistant City Attorney presented Resolution # 94-79 and read it by title only. Commissioner Thomas moved to pass and adopt Resolution # 94-79 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: "Ayes": Fitzgerald, Berfield, Deegan, Thomas and Garvey. "Nays": None. Commissioner Thomas questioned the savings as the bonds were issued in a competitive bid versus a negotiated one. Commissioner Thomas questioned the savings. Mr. Thorton estimated the savings at 5 basis points, or approximately $40,000. ITEM #30 - Long Center Board of Directors - 1 appointment (CLK) Commissioner Berfield moved to appoint William Chisholm. The motion was duly seconded and carried unanimously. ITEM #31 - Center Foundation Board of Trustees - 1 appointment (CLK) Commissioner Thomas moved to continue this item. The motion was duly seconded. Mayor Garvey requested the two individuals on the list for the Board of Directors be asked if they would be interested in serving on the Board of Trustees. Commissioner Deegan noted that substantial contributions to the Center are expected from members of this board. He requested the City Clerk follow-up on this matter for he felt the City's representative should not be pressed for a contribution. The City Clerk indicated Emanuel Falouzis, the City's other representative, has resigned and the Commission will need to make two appointments. Upon the vote being taken, the motion carried unanimously. ITEM #32 - Other Pending Matters a) Contract to demolish the unsafe structure at 630 Drew Street (Old Ice House) to Howard Jimmie's Demolition, for $21,800 (CP) The Interim City Attorney reported Mr. Schoeller's attorney faxed him a copy of a lawsuit he is filing to seek an injunction against the City from proceeding with the demolition. Mr. Zimmet expressed concerns with awarding a binding contract in face of a pending injunction hearing. He recommended delaying a decision on this item until Thursday, September 15, 1994. Commissioner Berfield questioned if the contract could be awarded with the understanding it was based on the outcome of the lawsuit. Mr. Zimmet stated he would review the bid documents and clarify this to the Commission on Thursday. Commissioner Thomas questioned if the City has been officially served with a lawsuit. Mr. Zimmet indicated only a faxed copy had been received. Commissioner Thomas requested Mr. Zimmet advise the City on Thursday if it can issue the demolition contract pending the outcome of litigation. Mr. Zimmet stated he would ask the bidder to hold the bid and position the City to award a contract. Commissioner Thomas moved to continue the awarding of a contract to demolish the Old Ice House until Thursday, September 15, 1994. The motion was duly seconded and carried unanimously. CITY ATTORNEY REPORTS ITEM #33 - Other City Attorney Items - None. ITEM #34 - City Manager Verbal Reports a) Set meeting to discuss concerns of Clearwater beach business community Ms. Deptula reported she attended a meeting of representatives of the beach business community who requested the Commission postpone scheduling a meeting date until the group has a chance to meet again and set an agenda. Property Maps The City Manager reported the City's Engineering division can now print City property maps. The seven grids record all City owned property. Each copy takes 20 minutes to run. She questioned if each Commissioner wanted a set of the maps. Consensus was one set being available in the City Manager's office will be sufficient. Beach Tower RFP Video Community Outreach presented the video prepared to accompany the RFP for the beach tower project. The City Manager acknowledged staff's professional workmanship and Florida Power for providing the helicopter for filming. Vision Cable The City Manager reported Vision Cable's parent company, Newhouse Broadcasting Corporation, has signed an agreement with Time Warner Cable and Advance Publications to create a new joint venture cable operation to be called Time Warner Entertainment-Advance/Newhouse. Ms. Deptula said Time Warner will be a 2/3's owner. She was unsure how this agreement will affect the City's current negotiations with Vision Cable regarding renewal of Clearwater's cable franchise contract with Vision. ITEM #35 - Commission Discussion Items a) Town Meeting Format Mayor Garvey stated these Town Meetings have provided informal opportunities for citizens to ask questions and make comments. Commissioner Deegan felt people will not attend unless there is a perceived benefit. He recommended the meetings should have a brief agenda including information on particular issues of interest to the area in which a meeting is to be held as well as city-wide. Commissioner Fitzgerald agreed, rather than just asking if there are any questions, a prepared presentation of items of importance will trigger audience responses. Mayor Garvey recommended limiting the opening presentation to 15 minutes. Commissioner Fitzgerald agreed it was important to limit the meeting to 7:30 to 9:00 p.m. Mayor Garvey suggested discussing projects included in the budget. Commissioner Deegan noted the presentations do not have to be limited to printed words but also could include videos. He agreed 15 minutes should be the limit. The City Manager said staff could be available 30 minutes before the meeting to provide information. She suggested two to three weeks prior to a meeting, it be decided what to cover and which staff should attend. Commissioner Thomas recommended contacting citizens on postcards via direct mail. He felt the agenda should include old business in addition to an open session. The City Manager said staff will incorporate these ideas in the next meeting, scheduled for October 27, 1994 at the Martin Luther King Center and see how they work. b) Mayor Feaster's request of County re Solid Waste The City Manager referenced Largo Mayor Feaster's letter expressing concerns about enclave residents depositing trash in Largo's city receptacles. She encouraged support of his recommendation to mandate all County residents contract for trash removal. Mayor Garvey suggested establishing solid waste service districts in the County to broaden the City's solid waste enterprise. The Mayor will send a letter supporting Solid Waste Service Districts. ITEM #36 - Other Commission Action Commissioner Deegan stated Beach hotels are renting parking spaces when Beach parking lots are full. He reported one hotel business, tagged by the Community Response Team for not having a license, went to Central Permitting to obtain one and was advised the City did not issue them anymore. The hotel owner's attorney expressed an opinion that the hotel's license includes the ability to rent rooms, the lobby, and parking spaces. The City Manager stated she would investigate the ability of hotels, etc. to rent their parking lots and provide a report to the Commission. Commissioner Berfield did not feel this should be limited to hotels. Commissioner Deegan requested recycling of telephone directories and status reports regarding the Pavilion on the beach be added to the tracking list. Commissioner Deegan referred to minutes from the Environment Advisory Committee's (EAC) August 11, 1994, meeting which noted Mr. Foley's report regarding water reuse was to be copied to the Commission. He noted he has not received this and requested it be copied. Commissioner Deegan questioned a memo from Tom Miller to the EAC Chair regarding Sunshine Law requirements for a one-member subcommittee. The City Clerk reported Mr. Miller asked her if an EAC member, appointed as a subcommittee, asks a citizen to be a part of that subcommittee and to assist in developing a proposal or recommendation to the EAC, if meetings of the subcommittee are subject to the Sunshine Law. She advised him they were. Commissioner Deegan felt there was a need to minimize bureaucracy. He questioned if the EAC stopped referring to members as official subcommittees if the problem would end. The City Clerk agreed if no subcommittees were designated, the Sunshine Law would not apply. Commissioner Thomas did not believe the City Clerk should give legal opinions regarding the Sunshine Law. It was indicated the City Clerk was using a City Attorney's opinion. The Assistant City Attorney stated he will review this opinion. Commissioner Deegan referred to Mr. Baker's reply to Ms. Harding's concerns regarding bus stops on Cleveland Street. He noted the Commission had given staff direction to contact PSTA but the letter referred only to a previous discussion. He requested staff contact PSTA again regarding Route 80 stops at Osceola and Ft. Harrison. Commissioner Fitzgerald distributed three film commission documents the Mayor's Council is to consider at its next meeting. He reported these standardized forms are for production permits. Ms. Rice indicated the Council is asking all cities to follow the same procedure though rates may differ. She stated the documents should be similar to the model established by the City and said the Legal Department will review them. Commissioner Fitzgerald reported U S Immigration officials addressed the Tampa Bay Regional Planning Council (TBRPC) regarding refugee issues. He indicated after the 1980 situation, when Cuban immigrants were released from camps around the country, most returned to Florida, with three to five percent settling in Tampa Bay. He stated economic development issues were discussed including trade and tourism. He felt the Commission needs to consider and plan for a possible influx of refugees. Commissioner Fitzgerald noted an article in Nation's Weekly concerning a court decision regarding video dial tone not being subject to franchise agreements. Ms. Rice indicated she is working with the Florida League of Cities and plans to address this in the upcoming legislative package. Commissioner Thomas reported the Courtney Campbell corridor has been added as an alternate route for the high-speed rail system. Commissioner Thomas reported the proposed Sunset Point overpass project includes an overpass in the vicinity of the Dimmitt property where there is no cross street. He felt it was time to rethink the 15-year old plans for the US 19N corridor. He noted many businesses along the highway have suffered because of construction and the road's realignment. Commissioner Thomas reported he will attend tomorrow's County public hearing on the water rate increase. He requested the Commission oppose the County water rate increase until it has been adequately justified. Mr. Baker felt this justification would be forthcoming at the County public hearing on September 13, 1994. The City Manager indicated staff would attend and inform the Commission on September 15, 1994 of what was presented. It was agreed the Commission would respond if necessary. ITEM #37 - Adjournment The meeting adjourned at 5:39 p.m.