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07/18/2002CITY COMMISSION MEETING CITY OF CLEARWATER July 18, 2002 Present: Brian J. Aungst Mayor/Commissioner Whitney Gray Vice-Mayor/Commissioner Hoyt P. Hamilton Commissioner William C. Jonson Commissioner Frank Hibbard Commissioner Also present: William B. Horne II City Manager Garry Brumback Assistant City Manager Ralph Stone 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 6:01 p.m. at City Hall. Pastor John Lloyd of Countryside Christian Center offered the invocation. The Mayor led the Pledge of Allegiance. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. ITEM #3 – Service Awards – None. ITEM #4 - Introductions and Awards – None. ITEM #5 – Presentations Neighborhood awards for the Quarter The Mayor presented the Neighborhood of the Quarter award to the Windsor Park Neighborhood. The Mayor presented the Home of the Quarter award to Ms. Judith Westfall at 1176 Jackson Road; George and Janis Valone at 1174 Jackson Road; Peter and Liz Gemelas, at 116 South Duncan Avenue; and Mary Daniel at 1750 Palmetto Street. A "Signed by the Artists" Tour of Turtles book Dennis Kellenberger, Executive Director of the Clearwater Marine Aquarium and Jay Goulde, Tampa Bay Tour of Turtles Project Director, presented posters signed by Silas Beach to each Commissioner, and a Tour of Turtles Book signed by all the participating artists to the Commission. The Mayor announced applications are being accepted for the Citizen’s Academy. ITEM #6 - Approval of Minutes - Regular Meeting 6/20/02; Visioning Sessions 5/6/02 and 5/28/02; Attorney-Client Closed Session 06/17/02. Commissioner Jonson moved to approve the minutes of the regular meeting of June 20, 2002, Visioning Session of May 6, 2002, and Attorney Client Closed session of June 17, 2002 as submitted in written summation by the City Clerk to each Commissioner, and that the minutes of the May 28, 2002, Visioning Session be approved with the following amendment: page 3, paragraph 3 to read: “Discussion ensued regarding the City’s customers. The following list of customers was presented for review: resident citizen of Clearwater, temporary residents, vacation visitors, nonresident property owners, “day trippers,” enclave residents, nonresident business employees, Pinellas County government, Pinellas County School system, and governmental units of Pinellas and Tampa Bay. After a suggestion, there was consensus agreement to add to this list the additional category of “business owners who do not reside in the City.” The motion was duly seconded and carried unanimously. Item #7 - Citizens to be heard re items not on the Agenda John Doran said if all the Fire Task Force’s recommendations were implemented, it would cost 20 cents a person per day. John Lee expressed sympathy to families of those that lost lives at Dolphin Cove fire. He questioned if the firefighters have the best equipment available. Katie Gobline requested staffing be increased to 4 persons per fire engine. Jim Carino said the City has added only one firefighter per shift since 1984, while calls and responsibilities have increased significantly. He also acknowledged the firefighters who were at the Dolphin Cove fire. Mack Seagal said his best friend lived in Dolphin Cove. He expressed support for Clearwater firefighters and complimented their professionalism. Fred Meyer expressed concern regarding Pension Plan negotiations. He said disability pension reforms are needed. David Bryan acknowledged the people who died at Dolphin Cove. He read quotes from the St. Petersburg Times, which he believed led firefighters to request legal representation in the fire investigation. Steven Sarnoff expressed concern regarding failed Pension Plan negotiations and reorganization of work groups responsible for hydrant maintenance. He said the administration and union have to work together and trust each other. George Krause said he was a member of the Fire Task Force. He requested the City carryout the Fire Task Force’s recommendations. Brent Bronson said the City should comply with the Fire Task Force’s recommendations, especially with regard to increased staffing. It was remarked that the City cares about their employees, including firefighters. The City has done more in the last 4 years for the Police and Fire Departments than in the previous 25 years. Concern was expressed that quotes were taken out of context. PUBLIC HEARINGS ITEM #8 - Public Hearing - Approve the modification of the City of Clearwater's Fiscal Year 2001-2002 Consolidated Action Plan transferring $110,000 of Community Development Block Grant funds from "Lead Based Paint Abatement" to "Public Facilities" to assist with the acquisition of the property located at 1045 N. Martin Luther King Avenue (f/k/a N. Greenwood Avenue). Also, approve the transfer of $15,000 from unrestricted funds to Public Facilities. Approve the modification of Clearwater Neighborhood Housing Services FY01-02 Subrecipient Agreement increasing the amount by $125,000. Approve the satisfaction of the City of Clearwater Economic Development loans totaling $45,100 associated with the property located at 1045 N. Martin Luther King Avenue. (ED) In furthering our progress in the revitalization of the North Greenwood Area this activity/acquisition will be conducive to the City’s efforts. Clearwater Neighborhood Housing Services (CNHS) approached the City in April of this year for assistance to acquire the property at 1045 N. Martin Luther King Avenue in order to use the facility as a possible day-care/multi-use facility. The property’s current use is a restaurant and bar (MacCabee’s Restaurant). CNHS and Bank of America Community Development Corporation are currently in the process of rehabilitating the North Greenwood Apartments. The total costs on N. Greenwood Apartments rehabilitation are $14 million dollars. The property to be acquired is located at 1045 N. Martin Luther King Ave. and is located at the northwest corner of Greenwood Apartments. This proposed project, combined with the new Aquatic Center, Library, N. Martin Luther King corridor enhancements, and the other redevelopment efforts in and around the North Greenwood Area represents a strategic investment for the City. The contract price on the property is $125,000. The appraised value of the subject property is $110,000. As a condition of sale the owner has stipulated that all City of Clearwater Economic Development loans currently on the property must be satisfied. The City Economic Development loans currently total $45,100 and were issued with the use of Community Development Block Grant (CDBG) funds in 1996 & 1997. The City’s assistance to CNHS for the acquisition will be in the form of a deferred payment loan for the first three years and then at the end of three years if CNHS has improved the property and/or secured tenants the loan will be converted into a thirty (30) year 0% interest loan with annual payments. CNHS FY01-02 Agreement with the City will be amended to increase the amount by $125,000 and revise the Scope of Services. The City applied last summer for a Lead Hazard Control Grant from the U.S. Department of Housing and Urban Development (HUD) but was unsuccessful. As a requirement of the grant we were required to allocate $100,000 in matching CDBG funds. The City also allocated an additional $101,405 in Lead Based Paint abatement for mitigating lead removal in homes that we rehabilitate should lead be present. To date this fiscal year we have only expended about $2,500 on lead testing and training. Since we were unsuccessful in obtaining this grant, transferring the $110,000 to Public Facilities and Improvements category will not impact our ability to address lead based paint issues from now until the end of our current fiscal year should they arise. We have recently applied again for the Lead Hazard Control Grant and have allocated $100,000 in CDBG funds for FY02-03. If we are successful in obtaining this grant and are in need of additional funds for lead based paint abatement during the next fiscal year, we will transfer funds from our rehabilitation category to lead based paint abatement. The additional $15,000 for the acquisition will come from unrestricted funds that the Housing Division has available. It was remarked that the rehabilitation results are dramatic and provide critical mass for redevelopment of North Greenwood. Mr. Carroll was complimented for his efforts. Commissioner Jonson moved to approve the modification of the City of Clearwater’s Fiscal Year 2001-2002 Consolidated Action Plan transferring $110,000 of Community Development Block Grant funds from “Lead Based Paint Abatement” to “Public Facilities” to assist with the acquisition of the property at 1045 N. Martin Luther King Avenue (f/k/a N. Greenwood Avenue), approve the transfer of $15,000 from unrestricted funds to Public Facilities, approve the modification of Clearwater Neighborhood Housing Services FY01-02 Subrecipient Agreement increasing the amount by $125,000, and approve the satisfaction of the City of Clearwater Economic Development loans totaling $45,100 associated with the property at 1045 N. Martin Luther King Avenue, and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. Public Hearing - Second Reading Ordinances ITEM #9 - Ord #6931-02 – Amending Ordinance No. 6378-99 to authorize additional stormwater system revenue bonds, Series (to be determined) of the City of Clearwater, Florida, to be issued in one or more series over one or more years, to correct certain definitions therein and to revise other covenants and agreements in connection therewith; and providing an effective date. The City Attorney presented Ordinance #6931-02 for second reading and read it by title only. Commissioner Gray moved to pass and adopt Ordinance #6931-02 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. ITEM #10 - Ord #6977-02 - Annexation of properties at 2301 Chautauqua Avenue (M&B 24/03, 24/04, 31/01 and Lot 4, Block 38, Unit 1, Section A Chautauqua "On the Lake" Section 32-28S-16E) (Lawrence H Dimmitt III & Larry H Dimmitt Jr, Trustee) ANX 02-02-04, LUZ 02-02-03 The City Attorney presented Ordinance #6977-02 for second reading and read it by title only. Commissioner Hibbard moved to pass and adopt Ordinance #6977-02 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. ITEM #11 - Ord #6995-02 – Amending the operating budget for the fiscal year ending September 30, 2002 to reflect increases and decreases in revenues and expenditures for the general fund, special development fund, special program fund, local housing assistance trust fund, water & sewer fund, stormwater fund, gas fund, solid waste fund, recycling fund, parking fund, as provided herein; providing an effective date. The City Attorney presented Ordinance #6995-02 for second reading and read it by title only. Commissioner Hamilton moved to pass and adopt Ordinance #6995-02 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. ITEM #12 - Ord #6996-02 – Amending the Capital Improvement Budget for the fiscal year ending September 30, 2002, to reflect a net increase of $17,126,574 providing an effective date. The City Attorney presented Ordinance #6996-02 for second reading and read it by title only. Commissioner Jonson moved to pass and adopt Ordinance #6996-02 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. ITEM #13 - Ord #6997-02 – Amending Community Development Code - Sections 3-1802, 3-1803, 3-1805, 3-1806, 3-1807 & 8-102 re temporary signs, changeable copy signs and use of comprehensive sign program in the Downtown & Tourist Districts. The City Attorney presented Ordinance #6997-02 for second reading and read it by title only. Two persons spoke in favor of allowing sandwich boards in the Tourist District. Long Range Planning Manager Gina Clayton said staff would draft an ordinance for Commission consideration regarding sandwich boards in the Tourist District, however, it would take several months. Discussion ensued and it was felt that these amendments should be addressed while staff prepares the ordinance for the Tourist District. Commissioner Gray moved to pass and adopt Ordinance #6997-02 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. ITEM #14 - Ord #6998-02 – Amending Community Development Code – Sections 4-202, 4-207, 4-302, 4-404, 4-501, 4-504 & 4-505 re permitting procedures, review of applications, appeal procedures, Community Development Board appeals; and providing an effective date. The City Attorney presented Ordinance #6998-02 for second reading and read it by title only. Commissioner Hibbard moved to pass and adopt Ordinance #6998-02 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. CITY MANAGER REPORTS CONSENT AGENDA (Items #15-32) - – Approved as submitted. ITEM #15 - Approval of Purchases (& Declaration of Surplus) per Purchasing Memorandum: 1) Purchase custodial services and supplies during the contract period: August 1, 2002 through July 31, 2003; Black Tie Janitorial Services, $125,856. 2) Declare surplus and authorize disposal of vehicles and equipment. ITEM #16 - Request for authority to settle the workers' compensation claim of Claimant, Robert Noonan, in its entirety to include medical, indemnity and attorney fees for the sum of $55,750. (FN) ITEM #17 - Approve the addition of one full-time equivalent (FTE) position for a custodial worker at the Marina. (MR) ITEM #18 - Approve a management agreement for the City owned property known as the Clearwater Community Sailing Center at 1001 Gulf Blvd to be managed by the Clearwater Community Sailing Association, Inc. as the facility manager for an initial period of 3 years, with 2 additional 3 year terms with an annual rent of $12,000 per year in the first year, and $12,000 per year plus 20% of all income after taxes in subsequent years. The base rent of $12,000 will increase 5% for each subsequent 3-year term. (MR) ITEM #19 - Approve the Second Amendment of Professional Management Services Agreement between Globe Facilities Limited Partnership dba Global Spectrum (Globe) and the City of Clearwater (City) for a five (5) year term concluding on September 30, 2007. (PR) ITEM #20 - Approve the Third Amendment of Concession Management Agreement between Globe Facilities Limited Partnership dba Global Spectrum (Globe), Boston Concession Group, Inc. (Boston) and the City of Clearwater (City) for a five (5) year term concluding on September 30, 2007. (PR) ITEM #21 - Approve the final plat for "Clearwater Retail" located at the southwest corner of Missouri Avenue and Druid Road. (PW) ITEM #22 - Approve construction authorization for the new Main Library to Turner Construction Company, 500 N. Westshore Blvd., Tampa, Florida in an amount not to exceed $2,736,078. (LIB) ITEM #23 - Approve Change Order No. 5 to Keystone Excavators, Inc. of Oldsmar, Florida for the 2001 Sidewalk/Curb Replacement Contract (01-0021-EN), which increases the contract amount by $334,720.50, and adds 60 days to the time of the contract. The new contract total is $1,282.350.20. (PW) ITEM #24 - Approve Change Order No. 1 to Keystone Excavators, Inc. of Oldsmar, Florida for the Mandalay Ave/Papaya St/San Marco Reconstruction (99-0098-EN), which increases the contract amount by $935,243.53, and adds 90 days to the time of the contract. The new contract total is $2,682,243.53. (PW) ITEM #25 - Approve Change Order No. 6 for the N. Greenwood Reclaimed Water & Corridor Enhancements Project (01-0029-EN) to Steve's Excavating & Paving, Inc. of Clearwater, Florida increasing the contract amount by $149,642.12 for a new contract total of $2,431,284.09. (PW) ITEM #26 - Joint Participation Agreement between the City of Clearwater, Pinellas County and the First Baptist Church of Clearwater, Inc. to implement an Amendment to the Countywide Future Land Use Plan for First Baptist Church of Clearwater located at the southwest corner of McMullen-Booth Road and Drew Street (LUZ 00-05-05) (PLD) ITEM #27 - Approve a five (5) year Management Agreement between the City and the Clearwater Regional Chamber of Commerce for the Beach Visitor Information Center for the period of August 1, 2002 through July 31, 2007 at an estimated cost of $248,600, with no more than $221,385 in funding and $27,215 in in-kind contributions, subject to final budget approval. (ED) ITEM #28 - Beautification Committee – Appoint Dagmar Ortiz (CL) ITEM #29 - Enterprise Zone Development Agency – Re-Appoint Cheryl Wade to local finance or insurance entity category. (CL) ITEM #30 - Community Relations Board – Appoint Candace Gardner and Melissa Ann Horwitz (CL) ITEM #31 - Approve starting August 5, 2002 Work Session at 8:30 a.m. ITEM #32 - Authorize settlement of Farewell v. City of Clearwater, Case No. 01-8401-Cl-20, for payment by City of $42,500 in exchange for full releases from plaintiffs and dismissal of action with prejudice. Commissioner Hamilton moved to approve the Consent Agenda as submitted 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 #33 - Adopt a tentative millage rate of 5.753 mills for fiscal year 2002/03 and set Public Hearings on the Budget for September 5, 2002 and September 19, 2002 to be held no earlier than 6:00 p.m. (BU) In accordance with the TRIM Bill process it is necessary for the City Commission to adopt a tentative millage rate prior to finalizing and adopting the Budget. The tentative millage rate will be included in the TRIM Bill notices sent to taxpayers in early August and cannot be increased without special mailing. The City Manager’s recommended millage rate of 5.753 mills is an increase of .2498 mills over the current rate of 5.5032 mills, an increase of 4.5%. Under the recommended rate of 5.753 mills, the City tax bill for an individual Clearwater homeowner with an approximate average Clearwater home value of $91,740, qualifying for the $25,000 homestead exemption, would be $383.96. The impact of the recommended rate over the current millage rate is $16.68 of this total (an average of $1.39/month). Budget Director Tina Wilson reviewed: 1) General Fund revenues, expenditures, and retained earnings; 2) proposed budget; 3) financial impacts; 4) new General Fund positions; 5) millage history; 6) millage rate effect on average homeowner; and 7) budget meeting schedule. Five persons spoke in favor of the millage rate increase and stated they did not want City services cut. One person spoke stating he was not totally against the millage rate increase, but felt there are still areas the City can address to cut costs. It was remarked that the Commission and administration would continue to challenge staff to find potential cost savings without degrading City services. Public input is welcome. The public was encouraged to attend the budget meetings being scheduled. It was remarked this tentative millage rate proposal is a not-to-exceed number. In response to a question, Ms. Wilson said Clearwater only receives 25% of the ad valorem dollars collected annually. The County and the School Board receive significantly higher amounts. Commissioner Hibbard moved to adopt a tentative millage rate of 5.753 mills for fiscal year 2002/03 and set Public Hearings on the budget for September 5, 2002, and September 19, 2002. The City Manager requested dates for additional budget meetings. Ms. Goudeau suggested specific dates when the Harborview Center can be booked. The City Manager requested meeting dates be discussed regarding the Commission travel budget, Police presentation, and Enterprise Operation presentation. It was requested these items be combined into one meeting and scheduled in August as early as possible. ITEM #34 - Adopt Resolution #02-38 and approve and accept an Interlocal Agreement/Franchise with the City of Belleair Bluffs in order to provide natural gas service to the citizens of Belleair Bluffs. On June 17, 2002, the City of Belleair Bluffs Commission approved the Interlocal Agreement with the City of Clearwater, which provides a franchise for the Clearwater Gas System to provide natural gas service in Belleair Bluffs. The Clearwater Gas System has provided service within the City of Belleair Bluffs for at least the past 20 years under one prior 20-year franchise. The Interlocal Agreement provides the City of Clearwater an additional 15-year non-exclusive right to continue to construct, operate and maintain all facilities necessary to supply natural gas to the City of Belleair Bluffs. The Interlocal Agreement provides for a 6% franchise fee to be paid by the consumers of natural gas within the City of Belleair Bluffs. Commissioner Jonson moved to approve and accept an Interlocal Agreement/Franchise with the City of Belleair Bluffs in order to provide natural gas service to the citizens of Belleair Bluffs, and the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. The City Attorney presented Resolution #02-38 and read it by title only. Commissioner Gray moved to pass and adopt Resolution #02-38 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: “Ayes”: Gray, Jonson, Hibbard, and Aungst. “Nays”: None. Absent: Hamilton. Motion carried. The meeting recessed from 7:59 to 8:16 p.m. ITEM #35 - Direct staff to: 1) Proceed with the Pelican Walk Garage site, including negotiating with the owner of the site to purchase the property, subject to an updated demand analysis; and 2) Proceed with the "Interim Use" for the Marriott Seashell resort site as a temporary surface parking lot for 150-160 spaces subject to modification of the Development Agreement with Clearwater Seashell Resort, LLC. (ED) At the December 18, 2001, Commission meeting, the Administration was directed to report back to the City Commission in 180 days regarding a Beach parking strategy. The following summarizes progress to date: North Beach The City requested a detailed financial feasibility study as well as appraisals to assist the City in its assessment of financial alternatives in constructing a Pelican Walk garage. The study, conducted by Urbitran/Chance Management Advisors, indicates that the 450-space Pelican Walk garage is financially feasible given four conditions: (1) a 30-year amortization rate; (2) pre-cast, pre-stressed construction technique; (3) pay-on-foot revenue collection system; and, (4) a $1,000,000 write down from the City’s Parking System. The total development cost for constructing the Pelican Walk garage by the City is estimated at $7.7 million with land cost estimated at $1 million. Tax exempt revenue bonds will need to be issued to cover the development costs of the garage. The annual cost including debt service and operating cost would be $781,241 for the first year. Alternatively, a private developer has presented a proposal to the City to build the Pelican Walk garage on a lease term. The rent for years 1-5 is $550,000, increasing every 5 years. The annual cost to lease and operate the garage would be $807,850 for the first year. Hilton Hotel has expressed an interest in discussing development options at their location, including the possibility of additional parking facilities. South Beach The “Marriott Seashell” developers have proposed a temporary surface parking lot for 150-160 spaces on their current site. In order to preserve the development opportunity of the site as a resort hotel and to potentially move forward with the Beach Walk project, the developer would lease to the City the parking lot. The Marriott Seashell proposal is to lease the lot to the City for $3,000 a year per space. Further, the City would purchase the land at fair market value (up to $6,000,000) if construction of a resort does not begin by March 1, 2006. Estimated operating costs for the parking lot for the first year is $85,310. A second developer has proposed three parking options for a 92,400 square feet site between Hamden and Coronado approximately between Brightwater on the north and slightly south of Fifth Street to the south. The City would vacate Fifth Street. The three options include: (1) outright purchase by the City for $12,000,000, the seller to retain all development rights; (2) City purchases the land for $11,000,000 with a requirement that the City declare the property surplus and put it out to bid after one year, for a 1,450-space parking garage with 45,000 square feet of retail on ground floor; or (3) a 30-year lease to the City for 261-331 public spaces at a per year lease cost of $1,046,500 with a 3% increase annually. Developer has option to construct a 1,450-space garage between the second and fourth year of the lease. The City received a $500,000 federal grant to proceed with the design of Beach Walk. The City has retained the firm of Post, Buckley, Schuh and Jernigan to prepare the design drawings and construction specifications for Beach Walk. The firm has drafted a detailed scope of work that has been submitted to the City for review. The design phase is estimated to be complete in June 2003. Howard Howell, developer, presented three options to the City for replacement parking spaces on south beach. He rescinded the three options described in the North and South Beach Parking Strategy Report and presented a revised proposal to the City on July 15, 2002. Mr. Howell has assembled approximately 92,400 square feet of land on the southern portion of Hamden and Coronado bounded by Brightwater on the north, vacating Fifth Street (13,200 square feet of right-of-way), and a small portion of the block south of Fifth Street. The revised proposal has three components: 1) City purchases the property for $10,000,000; 2) as part of the transaction, the developer retains $500,000 as the fee for assembling the property and one half (50%) of the development rights associated with the property; and 3) City demolishes the structures on the property, and constructs a 261-space surface parking lot, vacating Fifth Street between Hamden and Coronado and incorporating the vacated street with the purchased property. The revenue collected from these spaces could be used to cover debt service for the bond issue as well as maintenance and construction costs. City staff met on July 16 to discuss the revised proposal and review the financial feasibility and assumptions embedded in the proposal. The following information reflects staff’s assessment of this option detailing the advantages and disadvantages of the proposal. Staff is concerned that the revenue generated by the 261 parking spaces $652,000) is not sufficient to cover the debt service for the bond issue ($775,000) and maintenance of the surface lot ($139,113) based on a 5% interest rate over 30 years. In addition to the issue of significant up front costs, the City would need an updated demand analysis for the south beach parking area to determine if there is sufficient demand for parking at this site and two appraisals. Staff is concerned that demand at this site is questionable if Beach Walk is not constructed. Staff met with Mr. Howell on July 16 and discussed their concerns and assessment of their revised proposal, and their recommendation to the Commission. While Mr. Howell’s proposal responded to the Commission’s charge in December 2001 to assemble land for a temporary parking lot between Hamden and Coronado, the land cost associated with the property ($126 per square foot) is much higher than the City anticipated ($60 - $80 per square foot). Given the City’s desire to find an affordable solution to parking on south beach that will allow us to proceed with the construction of Beach Walk, staff is recommending that the City proceed with the “interim use” of the Marriott Seashell site as an interim surface parking lot. Summary of Howell’s Financial Proposal Land Cost $10,000,000 Construction $ 679,400 Cost to Issue Bonds (est.) $ 700,000 Total Bond Amount $11,379,400 Debt Service (30 yrs, 5%) $ 775,000 Maintenance ($533/space) $ 139,113 Yearly Cost to Operate $ 914,113 Revenue (261 X $2500) $ 652,500 Cash Flow in First Year $ - 261,613 Alternative South Beach Parking Proposal (Revised) Dr. Howell presented three options to the City for replacement parking spaces on south beach. He rescinded the three options described in the North and South Beach Parking Strategy Report and presented a revised proposal to the City on July 15, 2002. The developer has assembled approximately 92,400 square feet of land on the southern portion of Hamden and Coronado bounded by Brightwater on the north, vacating Fifth Street (13,200 square feet of right-of-way), and a small portion of the block south of Fifth Street. The proposal has three components: 1) City purchases the property for $10,000,000; 2) as part of the transaction, the developer retains $500,000 as the fee for assembling the property and one half (50%) of the development rights associated with the property; and 3) City demolishes the structures on the property and constructs a 261-space surface parking lot, vacating Fifth Street between Hamden and Coronado and incorporating the vacated street with the purchased property. The revenue collected from these spaces could be used to cover debt service, maintenance, and construction costs. Analysis Advantages (City Purchase $10,000,000) Site supports 261 surface parking spaces that can generate roughly $652,500 in yearly revenue (261 x $2500 per space) City acquires approximately 92,400 square feet for potential future parking garage development Clears site of small, motel and retail establishments Adds to overall inventory of parking spaces on the beach if Beach Walk is not constructed in the short term Can serve as replacement parking spaces for the construction of Beach Walk Disadvantages Requires the City to commit to a bond issue of over $11 million for surface parking Requires the City to demolish existing structures and construct surface lot (estimated cost of $679,400) Revenue from 261 surface parking spaces ($652,500) will not be sufficient to cover debt service for the bond issue ($775,000) and maintenance of the surface lot ($139,113) based on a 5% interest rate over 30 years Site is not centrally located or contiguous to current resort redevelopment options Developer retains 50% of development rights of the property Demand for parking at the site is questionable if Beach Walk is not constructed If the City constructs more than 300 spaces at this site, it will require an amendment to the Seashell Development Agreement because this site is within a ¼ mile radius of the Seashell parking facility Ed Armstrong, representative for Dr. Howell, said his client is requesting that staff continue a dialog with Dr. Howell. He said his client needs more time for refine his proposal. Bill Kimpton, said the Marriott Seashell proposal started as a counter to the Pier 60 Plus parking facility. In 2001 the City and Mr. Kimpton’s group executed a development agreement for a resort. He is obtaining funding from a local financial institution to pay for and consolidate the site. He said this proposal keeps opportunities for a resort alive and provides an interim parking solution at no up-front costs to the City, except for parking meters. He said if the appraisal on the site exceeds $6 million and his client cannot produce the product by March of 2006, the City would have a consolidated development site on the Gulf at no more than $6 million. Condolences were extended to Mr. Kimpton regarding the loss of his mother. Mr. Anastopoulos said he would like to continue to work with staff. One person spoke in support of the proposal. Two people spoke in favor of the proposed Pelican Walk parking garage, but against the Marriott Seashell parking garage. One person requested the City keep in mind the City needs a parking structure, not surface parking. Discussion ensued with agreement that additional parking and the ability to replace parking removed by Beach Walk are needed. Concerns were expressed that too many questions remain regarding the South Beach options. Some expressed reluctance to commit Penny for Pinellas funds. Concern was also expressed regarding the appraisal of the Marriott Seashell site including land and unit pool allocations provided by the City through the development agreement. In response to a question, Mr. Stone said the ability of parking revenue to cover the debt cost of the Marriott Seashell parking garage would depend on the amount of debt. The net revenue per space plus the cost to purchase the property is nearly equal to the anticipated revenue. Finance Director Margie Simmons said Penny for Pinellas funds could be used for infrastructure; however, it cannot be used to buy property and re-sell it to a developer. Ms. Simmons reviewed several funding options and did not recommend moving forward without one. It was suggested the City continue to negotiate with developers regarding south beach proposals. Mr. Stone said appraisals and a demand study would be required for both south beach proposals. Mr. Horne requested clear guidance from the Commission. It was felt that Pelican Walk is a priority as that proposal is further along in the process. Further negotiations with the Marriott Seashell and Dr. Howell are needed. Concern was expressed that funding guarantees should not be made with Penny for Pinellas dollars. It was remarked that appraisals should not include the value of City vacated rights-of-way or the pool allocation. Richard Gehring, Marriott Seashell Resort, said the development rights they were granted were the result of many limitations, approvals, etc. that were agreed upon. He said they would continue to work with the City. Commissioner Gray moved to amend the agenda item to include a third condition, which is to proceed in the same manner with Dr. Howell’s proposal. The motion was duly seconded and carried unanimously. Commissioner Gray moved to direct staff to 1) proceed with the Pelican Walk garage site, including negotiating with the owner of the site to purchase the property, subject to an updated demand analysis, 2) proceed with negotiations for the “Interim Use”: for the Marriott Seashell resort site as a temporary surface parking lot for 150-160 spaces subject to modification of the Development Agreement with Clearwater Seashell Resort, LLC, and 3) proceed to negotiate with Dr. Howell regarding his proposal. The motion was duly seconded and carried unanimously. ITEM #36 - Other Pending Matters – None. CITY ATTORNEY REPORTS Resolutions First Readings ITEM #37 - Other City Attorney Items – None. ITEM #38 - City Manager Verbal Reports – None. ITEM #39 - Commission Discussion Items a. December 2002 and January 2003 Meeting Schedule Consensus was to finalize the schedule at the next meeting. ITEM #40 - Other Commission Action Commissioner Hibbard said he heard the July 4 celebration in Coachman Park was wonderful. He congratulated the Police Department for winning the Law Enforcement Challenge for traffic control. He thanked Commissioner Gray for forwarding correspondence from exchange students and teachers in Nagano, Japan. Commissioner Gray said the exchange students in Nagano, Japan are having a great time. She is proud of the rehabilitation that is being done of the North Greenwood Apartments. Commissioner Jonson expressed concern and appreciation for speedy recovery of firefighters injured at Dolphin Cove, and sympathy for families that lost loved ones. He said firefighters are true heroes. He saluted Isay Gulley and the Bank of America for their efforts on the North Greenwood Apartments. He said the City Manager agreed to try to find some dollars to strengthen the building at Ross Norton. He said things seem to be going well with construction in the City. Commissioner Hamilton urged everyone to observe the speed limit signs in the area of the causeway construction detour. He said Happy Birthday to his father who is 70 today. Mayor Aungst was pleased to be part of the June 27 Tall Ships festivities with Mayors Baker and Greco. He said the July 3 and 4 Clearwater Celebrates America in Coachman Park was an outstanding schedule of entertainment and fireworks. He thanked Kevin Dunbar, Terry Schmidt and the Parks and Recreation employees and volunteers, Police & Fire, and Ameri-Corp. volunteers for safety, and Public Works and Solid Waste for their clean up duties. July 26 is Phillies Appreciation Night at Jack Russell Stadium for City employees. He said July 31 is the Greenwood Apartments ribbon cutting. He and his wife spent the last few days in Gainesville for their son’s college orientation. He is looking forward to more budget discussions. He extended his condolences to Barbara Sheen Todd on the passing of her husband Tom Todd, Pinellas County School Board Member. A Celebration of Life memorial will be held for Rex Clark on August 3 at 1:00 p.m. at the East Library. He received a letter from Joanne Cavanaugh of the Ultimar thanking staff for their efforts with parking. Bill Horne reminded citizens to apply for the Clearwater 101 Citizens Academy, an 8-week course to learn all about the City. Classes begin in mid September and will be held on Tuesday nights at 6:30 p.m. Applications are due by July 26. ITEM #41 - Adjournment The meeting adjourned at 10:08 p.m.