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08/22/2002CITY COMMISSION MEETING CITY OF CLEARWATER August 22, 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 Patricia O. Sullivan Board Reporter The Mayor called the meeting to order at 6:00 p.m. at City Hall. The invocation was offered by Deacon Grevenites, St. Brendan’s Catholic Church. 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 One service award was presented to a City employee. ITEM #4 – Introductions, Awards, and Presentations a) 2002 Legislative Wrap-up: Representative Frank Farkas - Chairman Pinellas County Legislative Delegation and Representative John Carassas Representative John Carassas reviewed legislative issues addressed this year. The Mayor presented him with a plaque in appreciation of work done during 2002 legislative session. Representative Frank Farkas addressed the Commission. The Mayor presented him with a plaque in appreciation for his service as Chair of the Pinellas County Legislative Delegation. b) Graduation of Citywide Leadership Group Graduates of the Citywide Leadership Program were recognized and presented plaques. c) Pinellas County Library Cooperative Grants Library Director John Szabo presented two checks to the City Commission from the Pinellas County Library Cooperative, representing grants: 1) $100,000 - construction of new North Greenwood Library; and 2) $100,000 - construction of new Main Library. ITEM #5 - Approval of Minutes Commissioner Hibbard moved to approve the minutes of the regular meeting of August 8, 2002, as submitted in written summation by the City Clerk to each board member. The motion was duly seconded and carried unanimously. ITEM #6 - Citizens to be heard re items not on the Agenda – None. PUBLIC HEARINGS Item #7 - Declare as surplus for the purpose of offering for sale and advertising for net bid amount of not less than $70,000, Harvey Park Subdivision, Block B, Lots 1 through 12 inclusive to the highest bidder meeting certain criteria. PW The City owned property located at HARVEY PARK Subdivision was purchased in 1997. The desire was to eventually develop the property for affordable housing purposes. The property is currently zoned commercial and will need to be rezoned to residential. The City is planning on starting this process within the next month. This process will take approximately four to six months. If the rezoning process is still underway when the property is transferred to the subsequent owner, the City will list the new owner on the rezoning application as a co-applicant. It is anticipated that approximately 4-6 residential infill lots will be derived as a result of the rezoning. The City has developed criteria so that we can be assured that whatever entity bids on the property it will be developed for our intended purposes. The criteria allows the City to offer the property to those organizations that have the capacity and experience to develop the property for affordable housing purposes. The minimum bid amount is supported by a May 1, 2002 appraisal performed by James Millspaugh, MAI, valuing the subject property in that amount. Commissioner Hamilton moved to declare as surplus for the purpose of offering for sale and advertising for net bid amount of not less than $70,000, HARVEY PARK SUB., Block B, Lots 1 through 12 inclusive, to the highest bidder meeting the following criteria: Bidder shall be a development team having a minimum of 10 years development experience in affordable single-family residential infill housing; bidder shall be a non-profit corporation in good standing specializing in housing construction; bidder shall develop the property for single family residential home ownership; bidder shall screen potential homebuyers to ensure they are eligible for State and Federal assistance if such funding will be used by the bidder; bidder shall guarantee that the maximum sales price for each completed residential dwelling shall not exceed $120,000; and, if State and Federal funds are used in the project, bidder must commence construction by not later than March 1, 2003 and guarantee to complete the project by not later than March 1, 2005. The motion was duly seconded and carried unanimously. Item #8 - Not a public hearing - Update regarding Beach Parking At the July 18, 2002 Commission meeting, the Administration was directed to continue due diligence and negotiations on the three proposals for North and South Beach parking presented to the Commission. Pelican Walk Site Directly following the July 18 Commission meeting, staff ordered a detailed parking demand analysis for the North Beach area. Chance Management Advisors, the firm that conducted the feasibility study for the Pelican Walk garage, will begin data collection work on August 16 through 19. The firm will gather information again over the Labor Day holiday weekend (the peak period). The City should receive a draft report by September 30, 2002. Staff met with Mr. Anastasopoulos, the owner of the Pelican Walk shopping center and parking lot, and his attorney on July 23, 2002 to discuss two issues: 1) The length of time the owner is willing to hold our position on the property while the City conducts its due diligence on the project including receiving updated parking demand figures and discussing bond preparations and 2) The alternatives available for dealing with the 101 parking spaces associated with the existing Pelican Walk retail. Subsequent to this meeting, staff met with bond counsel to discuss the funding options associated with the proposed garage. Marriott Seashell Interim Parking Lot The “Marriott Seashell” developers submitted their site plan and proposal to the City to develop a temporary surface parking lot consisting of 155 spaces on their current site. The amendment to the Development Agreement, which includes site plan approval for the interim surface parking lot, will go before the Community Development Board on August 20, 2002. This item is also a Commission Agenda Item and is described in more detail in the cover memorandum and Planning staff report. After the Commission meeting, staff met with the developer to refine the terms of the deal to reflect the concerns expressed by the Commission related to the current City rights of way that may be vacated and the value of the units from the Resort Unit Bonus Pool. Staff negotiated the following terms to the Amendment to the Development Agreement: 1) The interim surface parking lot will be leased to the City for $2,500 per space per year, paid on a monthly basis ($31,667/month), and supported by 152 out of 155 spaces proposed and 2) The agreement obligates the City to purchase the property at fair market value of up to $6,000,000, determined by an appraisal, if construction of the resort hotel does not commence by March 1, 2006. Specifically, the terms of the appraisal will reflect the higher of (1) the highest and best use of the property at the time of appraisal; or (2) the value of the property with the existing buildings which include 65 units at the time of execution of the development agreement. This method of appraising the property does not include the value added to the project by the bonus pool (185 units) or the rights of way belonging to the City (Third Street and the 35 feet of South Gulfview) at this time. Two appraisers, retained by the City, will conduct the appraisals. In the event that the appraisals differ by more than 20%, a third appraiser will select among the two appraisals the one that most accurately reflects the fair market value of the property. Howell’s South Beach Proposal In response to the Commission’s directive, Dr. Howell submitted two proposals for consideration for a parking solution on South Beach. Dr. Howell met with Staff on August 9, 2002 to discuss the points of the two proposals. In both proposals, the City would purchase the land assembled by the developer and construct a surface parking lot. Both proposals include detailed financial figures (see attached) in which the City uses tax-exempt bonds to pay for the purchase of the land and construction of the surface parking lot. Lastly, both proposals indicate a positive cash flow in the first year given full parking demand based on average revenues currently being generated on the Beach. The first proposal encompasses approximately 99,000 square feet between Hamden and Coronado (see attached for map and financial description). The property is bounded on the north near Brightwater (excludes the property owner on Brightwater), extends south along Coronado and Hamden to Bayside Drive, and includes the vacation of Fifth Street. The total land purchase price for this property is $8,624,950. Excluding the 13,200 square feet of the Fifth Street right of way, the purchase price is estimated at $100 per square foot. Dr. Howell estimates that the property can support approximately 275 surface parking spaces. At $3,000 per space per year, the parking lot can generate $825,000 in revenue that can cover operating and maintenance expenses estimated at $821,934. Cash flow to the City in the first year is therefore $3,065. The second proposal encompasses approximately 73,000 square feet on the southern block between Hamden and Coronado (see attached for map and financial description). The property is bounded by Fifth Street to the north, includes half of the Fifth Street right of way, and extends southward to the intersection of Hamden and Coronado excluding one property owner on Coronado. The total land purchase price for this property is $6,206,950. Excluding the 6,600 square feet of half of the Fifth Street right of way, the purchase price is estimated at $93 per square foot. Dr. Howell estimates that the property can support approximately 206 surface parking spaces. At $3,000 per space per year, the parking lot can generate $618,000 in revenue that can cover operating and maintenance expenses ($500 per space) estimated at $604,680. Cash flow to the City in the first year is therefore $13,320. Recommendation Pelican Walk Site Administration will continue negotiating with the Pelican Walk owner in order to develop a contract to purchase the property. Staff will also update the demand analysis and develop funding alternatives to bring back to the City Commission for approval. Seashell Site Administration recommends the approval of the interim parking lot and development agreement amendment for the Seashell site. The City Commission will review this action as a separate agenda item associated with the development agreement amendment. Howell Site(s) Dr. Howell has submitted two additional alternatives that are less costly than previous proposals, but still would require “up front” expenditure of approximately $8.6 million or $6.2 million, respectively. Concerns exist regarding the demand (and associated revenues) for parking in this area, particularly if Beach Walk is not funded or if the Seashell interim parking or Seashell long term parking is developed. Administration recommends continued negotiation with Dr. Howell regarding this area to determine if alternatives can be defined that would both reduce the City’s front end costs and provide more confidence regarding the revenue potential of this area. In response to a question, Assistant Director of Community Redevelopment Geri Campos reviewed the boundaries of the proposals. In response to a question, Assistant City Manager Ralph Stone said it was unlikely staff would support Dr. Howell’s proposal, which included half of the right-of-way. Item #9 - Review and approve of an amendment to the Development Agreement between the Clearwater Seashell Resort LC and the City of Clearwater which provides for the interim use of the property as a public parking lot; extends the time frames for both the hotel project and interim project; provides lease terms for the parking lot; adds a provision requiring the City to purchase the property under certain conditions; authorizes staff to establish a new capital improvement project to purchase the site for up to $6 million; and approves an interfund loan of $2 million from the Central Insurance Fund and $2 million from the General Fund and commits $2 million of the retained earnings of the Parking Fund to total $6 million of the estimated project cost. PLD The subject site is 1.63 acres located on both the north and south sides of Third Street, between South Gulfview Boulevard and Coronado Avenue. It is located within the catalytic project area defined by Beach by Design and is a priority candidate for redevelopment on Clearwater Beach. The Community Development Board (CDB) approved a site plan for this site on February 20, 2001, which included a 250-room, full-service, resort hotel with 750-space parking garage (350 spaces for the hotel and 400 spaces open to the public). The Board also reviewed and recommended approval of a Development Agreement between the City and developer, at the same meeting. The original Development Agreement, adopted by the City Commission on March 1, 2001, includes the following major developer commitments: 1) construction of improvements and participation in the financing of South Gulfview Boulevard to create Beach Walk (between First Street and the South Beach pavilion; 2) dedication of 10 feet of right-of-way along Coronado Drive; and 3) availability of 400 parking spaces in the private garage for public use. Construction of the hotel has yet to commence, because of unexpected litigation and a negative economic climate (due in part to acts of terrorism). The applicant submitted a request to extend the time frames for development and to allow an interim project until the resort hotel is constructed. At its July 18, 2002 meeting, the Commission directed Staff to proceed with discussions with the applicant on the interim use of the site subject to modification of the Development Agreement. The major changes to the Development Agreement include the following: 1) Project Time Extension: The agreement proposes to extend the time period for compliance with the street vacation ordinance for 18 months to March, 2006. The agreement also proposes to extend the time for commencing construction on the hotel project by 4 years from March, 2002 to March, 2006; 2) Interim Project Use: The site may be used for an interim period (until March 2006) as a 155-space surface parking lot, until a resort hotel is built on the property; 3) Construction Period: The parking lot must be built within 12 months of Development Agreement and site plan approval; and 4) Lease Terms: The terms provide that the “turn key” lot will be constructed by the developer and leased to the City for $2,500 per space per year. This will be paid on a monthly basis ($31,667/month). The lease cost is based on a total of 152 spaces. Estimated operating costs for the first year are $85,310 or $533 per space. A projection of the parking fund’s net profit was distributed. In response to a question, Assistant Planning Director Lisa Fierce said the agreement indicates the City Commission will consider extending the resort pool. The City Attorney said a separate action by the City Commission would be necessary. Assistant City Manager Ralph Stone said the developer has not been able to take advantage of the resort pool due to negative economic impacts, which have affected the resort sector. Staff will recommend extending the resort pool by 12 to 18 months. Four people spoke in opposition to the proposal. Richard Gehring, representing Clearwater Seashell Resort, spoke in support of Beach Walk and of his commitment to developing the resort. He said a walkway will provide pedestrian access across the site. It was stated razing the motel properties and constructing a parking lot will increase beach parking and decrease competition for other hoteliers. Mr. Stone said the proposal includes at least 155 new spaces. Construction of Beach Walk requires elimination of 270 beach front parking spaces. The Beach Walk project also will add between 50 and 70 spaces on the road, along with drop zones. Parking lots at the Adams Mark Hotel and Pier 60 will remain. The Seashell Resort agreement requires construction of 400 public parking spaces and payment of half the costs related construction of Beach Walk. Concern was expressed funds set aside for this item will impact City obligations to the Jolley Trolley and lifeguards. Concern was expressed the $6-million reserve could be better applied to City priorities, such as beach infrastructure. It was indicated the City will provide signage for beach-bound pedestrians. In response to a question, Mr. Stone said a $500,000 federal grant will cover costs to design Beach Walk, which should be completed within a year. An additional federal appropriation has been requested for construction cost. Mr. Stone said 3rd Street will not be vacated until this resort hotel is constructed. Mr. Stone said two parties have indicated a willingness to assume the City’s position in the buyout. In response to a question, Ms. Fierce said a 10-foot walkway will cross the parking lot and provide egress on the east and west sides. The lot will be fenced to direct drivers to the pay station. It was stated although funds are being allotted for this project, they will not necessarily be spent. Commissioner Gray moved to approve an amendment to the Development Agreement between the Clearwater Seashell Resort LC and the City of Clearwater which provides for the interim use of the property as a public parking lot; extends the time frames for both the hotel project and interim project; provides lease terms for the parking lot; adds a provision requiring the City to purchase the property under certain conditions; authorizes staff to establish a new capital improvement project to purchase the site for up to $6 million; and approves an interfund loan of $2 million from the Central Insurance Fund and $2 million from the General Fund and commits $2 million of the retained earnings of the Parking Fund to total $6 million of the estimated project cost and the appropriate officials be authorized to execute same. The motion was duly seconded. Commissioners Gray, Hamilton, Hibbard, and Mayor Aungst voted “Aye”; Commissioner Jonson voted “Nay.” Motion carried. Item #10 - Public Hearing & First Reading Ord #7001-02, #7002-02 - Land Use Plan Amendment and Rezoning for property at 3021 State Road 590 (Lot 2, South Oak Fashion Square in Section 09, Township 29 South, Range 16 East) (Bayridge Apartments, LLC/Advent Realty Ltd. Partnership) LUZ 2002-05004 PLD This site is located on the south side of State Route 590, approximately 725 feet west of McMullen Booth Road. The subject site is approximately 10.05 acres in area and is currently developed with six (6) three-story structures housing 222 multi-family residential units and one (1) structure utilized as an office/pool house. The purpose of the land use plan amendment and rezoning is to bring an existing use into conformity with the Community Development Code. When the property was developed in 1990, it had a land use plan designation of Industrial Limited (IL) and was zoned Industrial Planned Development (IPD), which considered the use to be conforming. The (IPD) zoning designation was reclassified to the Industrial, Research, Technology (IRT) District when the new Community Development Code was adopted in 1999. The IRT zoning district does not permit multi-family dwellings, therefore, the existing Bayridge Apartments complex is a legal non-conforming use. The applicant is proposing to amend the Future Land Use Plan designation of this property from the Industrial Limited (IL) category to the Residential High (RH) category. Additionally, a zoning atlas amendment is requested to rezone this property from Industrial, Research, Technology (IRT) District to the Medium High Density Residential (MHDR) District to render this site conforming. The Planning Department determined that the proposed land use plan amendment and rezoning applications are consistent with the standards specified in the Community Development Code: The proposed land use plan amendment and rezoning application are consistent with the Comprehensive Plan. The potential range of uses and the specific proposed use are compatible with the surrounding area. Sufficient public facilities are available to serve the property. The applications will not have an adverse impact on the natural environment. Department of Community Affairs approval is required prior to second reading of the Ordinances. Commissioner Hibbard moved to approve a Land Use Plan Amendment from Industrial Limited (IL) to Residential High (RH), and a Zoning Atlas Amendment from Industrial, Research, Technology (IRT) to Medium High Density Residential (MHDR) for property located at 3021 State Route 590 (Lot 2 South Oaks Fashion Square in Section 09, Township 29 South, Range 16 East). The motion was duly seconded and carried unanimously. The City Attorney presented Ordinance #7001-02 for first reading and read it by title only. Commissioner Hamilton moved to pass Ordinance #7001-02 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. The City Attorney presented Ordinance #7002-02 for first reading and read it by title only. Commissioner Jonson moved to pass Ordinance #7002-02 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. Item #11 - Public Hearing & First Reading Ord #7006-02 - Rezoning of property at 1214 Franklin Circle (Lot 5, Block J, Hibiscus Garden in Section 15, Township 29 South, Range 15 East) (Alpina Investment, Inc.) REZ 2002-05002 PLD The subject property is located 750 feet south of Cleveland Street and 300 feet east of Missouri Avenue. This site is approximately 0.176 acres in area and is currently developed with an unfinished single-family structure. The purpose of the zoning change is to bring an existing use into conformity with the Community Development Code. When initial development began on the property in 1998, it was zoned Office Limited (OL) and the development was conforming. The OL zoning designation was reclassified to the Office (O) District when the new Community Development Code was adopted in 1999. The Office zoning district does not permit single-family dwellings outside of a mixed-use district, therefore, the existing facility is a legal non-conforming use. Currently, the subject site has a Future Land Use Plan designation of Residential/Office General. The proposed Medium Density Residential (MDR) zoning district is consistent with this plan category. This district permits 15 dwelling units per acre and the site density is compliant. The Planning Department determined that the proposed rezoning is consistent with the following standards specified in the Community Development Code: 1) The proposed rezoning application is consistent with the Comprehensive Plan; 2) The proposed rezoning provides consistency between the City’s zoning map and Future Land Use Map; 3) There will be no adverse impacts on public facilities and their level of service; 4) The district boundaries are appropriately drawn with regard to locations and classifications of streets, ownership lines, existing improvements and the natural environment; and 5) The potential range of uses and the specific proposed use are compatible with the surrounding area. The Community Development Board reviewed this proposed rezoning at its regularly scheduled meeting of March 19, 2002 and unanimously recommended approval. In response to a question, Long Range Planning Manager Gina Clayton said the property owner plans to complete construction of the single-family residence on site. Commissioner Hibbard moved to approve a Zoning Atlas Amendment from Office (O) District to Medium Density Residential (MDR) District for property located at 1214 Franklin Circle (Lot 5, Block J, Hibiscus Garden in Section 15, Township 29 South, Range 15 East) and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. The City Attorney presented Ordinance #7006-02 for first reading and read it by title only. Commissioner Hamilton moved to pass Ordinance #7006-02 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. The Commission recessed from 7:27 to 7:38 p.m. Public Hearing - Second Reading Ordinances It was noted Item #13 needed to be acted on prior to Item #12. Item #13 - Ord #6981-02 approve text amendments to the Community Development Code to establish the Neighborhood Conservation Overlay District for Island Estates. The City Attorney presented Ordinance #6981-02 for second reading and read it by title only. Seven people spoke in opposition. Three people spoke in support. Discussion ensued regarding proposed changes. It was stated when the current Code was adopted, residents were promised the opportunity to establish NCODs to preserve neighborhood character. It was noted 7 of the 13 recommendations are included in the current code. It was felt the results should stand, as the process was established. The City Commission has agreed to review the district next year. Commissioner Hibbard moved to pass and adopt Ordinance #6981-02 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hamilton, Jonson, and Hibbard. "Nays": Gray and Aungst. Ordinance adopted. Item #12 - Ord #6980-02 approve a Zoning Atlas Amendment for the Island Estates Neighborhood by applying the Island Estates Neighborhood Conservation Overlay District as an Overlay District in addition to the existing Low Medium Density Residential District, Medium Density Residential District, Medium High Density Residential District, High Density Residential District, Institutional District, and Commercial District for the Island Estates neighborhood. The City Attorney presented Ordinance #6980-02 for second reading and read it by title only. Commissioner Jonson moved to pass and adopt Ordinance #6980-02 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hamilton, Jonson, and Hibbard. "Nays": Gray and Aungst. Ordinance adopted. Item #14 - Ord #6999-02 amending Chapter 21, repealing Section 21.04 of the Code of Ordinances regarding fortunetellers, etc. The City Attorney presented Ordinance #6999-02 for second reading and read it by title only. Commissioner Hamilton moved to pass and adopt Ordinance #6999-02 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 #15 - Ord #7007-02 - approve adding paragraph (11) to Chapter 33, Section 33.067 of the Code of Ordinance adding a new designated slow down minimum wake zone off Windward Island on Island Estates. The City Attorney presented Ordinance #7007-02 for second reading and read it by title only. Commissioner Jonson moved to pass and adopt Ordinance #7007-02 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 #16 - Ord #7016-02 amending Ordinance 6675-01 related to City of Clearwater Revenue Bonds to be issued for the Community Sports Complex in order to provide for the use of certain revenues of the City to pay a portion of the bond debt service requirements. The City Attorney presented Ordinance #7016-02 for second reading and read it by title only. Commissioner Gray moved to pass and adopt Ordinance #7016-02 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 #17 - Ord #7017-02, amending Neighborhood and Affordable Housing Advisory Board ordinance to reduce the number of members serving on the board, reduce the number of members necessary for a quorum, and making other clarifying revisions. The City Attorney presented Ordinance #7017-02 for second reading and read it by title only. Commissioner Hamilton moved to pass and adopt Ordinance #7017-02 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, and Aungst. "Nays": None. Absent: Hibbard. CITY MANAGER REPORTS CONSENT AGENDA (Items #18-32) – Approved as submitted. Consent Agenda items require no formal public hearing and are subject to approval by a single motion. However, any City Commissioner or the City Manager may remove an item from the Consent Agenda for discussion and individual vote. ITEM #18 - Approval of Purchases (& Declaration of Surplus) per Purchasing Memorandum: 1) Purchase high service pumps, transfer pumps, variable frequency drives and pump barrels from Hudson Pump Co. for $182,725. 2) Service contract with Mastec North America Inc. for installation of gas mains, service lines and taps during the contract period of October 1, 2002 through September 30, 2003 for $796,685. 3) Service contract with Mastec North American Inc. for installation of underground exterior housepiping during the contract period of October 1, 2002 through September 30, 2003 for $158,500. 4) Purchase of an upgrade storage area network from Integrated Mass Storage Systems for $60,134. 5) Service contract with Angelo's Aggregate Materials for disposal of materials suitable for recycling, construction/demolition and yard waste during the contract period of September 20, 2002 through September 30, 2003 for $600,000. 6) Purchase ZABOCS Models ZB-500 and ZB-5200 biological odor control systems from US Filter for $94,500. ITEM #19 - Award a contract for "Improvements to Clearwater Airpark, Runway and Taxiway 16/34" (01-0050-AP) to Kloote Contracting, Inc. of Palm Harbor, Florida for the sum of $401,408.29 which is the lowest responsible bid received in accordance with the plans and specifications. MR In response to a question, Marine & Aviation Director Bill Morris said the project, part of the Airpark’s Master Plan, will increase the physical length of the runway without increasing its legal length. The jet that recently landed at the Airpark was overweight and cited. The FAA determines where jets can land. ITEM #20 - Approve a lease agreement between RSGN, Inc., a Florida Corporation, as Lessor, and the City of Clearwater, as the Lessee, for the premises located at 1217A N. Ft. Harrison Ave., Clearwater, FL for a period of three years commencing on October 1, 2002 and terminating on September 30, 2005, at an annual rental of $8,400. PD ITEM #21 - Approve acceptance of FY 2002 Local Law Enforcement Block Grant (LLEBG) funding for two years in the amount of $203,782 from the U.S. Department of Justice/Bureau of Justice Assistance. PD ITEM #22 - Approve the transfer of $26,936.46 received from Clearwater Housing Authority for payment in lieu of taxes to the Clearwater Homeless Intervention Project, Inc. (CHIP). PD ITEM #23 - Approve a lease agreement between the Clearwater Housing Authority, known as the Lessor and the City of Clearwater as Lessee, for the premises located at 2931 Sandlewood Drive, Clearwater, Florida, for a term of one year commencing August 1, 2002 and terminating on July 31, 2003. PD ITEM #24 - Approve a contract with Central Florida Used Auto Parts, Inc., a Florida corporation, to purchase a portion of Section 3, Township 29 South, Range 15 East, as more particularly described in said contract, for $750,000 plus $60,000 to reimburse Seller for pre-contract environmental site assessment expenses, up to $4,800 to fund 50% share of 2002 ad valorem taxes, plus estimated boundary survey and closing expenses of $3,750 for total estimated acquisition and transaction costs of $818,550. PW ITEM #25 - Approve a contract with Wallace Wade and Earnestine U. Wade, to purchase a portion of their fee estate and certain temporary and perpetual easement rights in Pine Brook Unit No. 2, Block E, Lot 4, for $10,100 plus estimated survey costs, title insurance fees and closing costs of $1,500, for a total acquisition amount not to exceed $11,600. PW ITEM #26 - Approve a contract with Annie Birt, to purchase a portion of her fee estate and certain temporary and perpetual easement rights in Pine Brook Unit No. 2, Block E, Lot 5, for $10,100 plus estimated survey costs, title insurance fees and closing costs of $1,500, for a total acquisition amount not to exceed $11,600. PW ITEM #27 - Approve a contract with Robert E. and Sara J. King, to purchase Pine Brook Unit No. 2, Block E, Lot 1, for $100,000 plus estimated survey costs, title insurance fees and closing costs of $1,800, for a total acquisition amount not to exceed $101,800. PW ITEM #28 - Approve a work order to Parsons Engineering Science, Inc., an Engineer of Record, to provide engineering design and permitting services for the Palmetto Street Sediment Sump for the sum of $71,044. PW ITEM #29 - Approve a work order for engineering design of the North Greenwood Traffic Calming Design and Construction Administration Services (02-0055-EN) to Wade Trim in the amount of $184,721.96. PW ITEM #30 - Award a contract for the Grandview Terrace Traffic Calming and Stormwater Improvements (99-0023-EN) to MTM Contractor, Inc. in the amount of $618,566.75, which is the lowest responsible bid received in accordance with plans and specifications. PW ITEM #31 - Approve the final plat for "BELLE HARBOR" located at the northeast corner of Baymont St. and Mandalay Ave. on Clearwater Beach. PW ITEM #32 - Approve release of consent of sale restriction on property known as Atrium building and retaining certain restrictions on the transfer of the property. CA Commissioner Jonson 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 Resolution No. 02-43 providing for the sale of not to exceed $15.5 million Revenue Bonds, to fund a Community Sports Complex. FN Ordinance 6675-01 was adopted on January 18, 2001, Ordinance 6854-01 was adopted on September 6, 2001, and Ordinance 7016-02 is scheduled to be adopted on August 22, 2002, all of which authorize the issuance of Revenue Bonds to finance a Community Sports Complex. The principal and interest on these bonds are to be paid from payments to be received from the State of Florida and Pinellas County. The State of Florida has agreed to pay $500,000 per year ($41,666.67 per month) for 30 years and Pinellas County has agreed to pay $587,650 per year ($48,970.83 per month) for 20 years. Both entities began making payments 3/1/01. We are holding those payments in anticipation of issuing these bonds. In order to satisfy concerns of the bond insurance company, Attachment E to this resolution is a Debt Service Agreement between the City and MBIA Insurance Corporation which commits the City to pay the debt service on the bonds, whether or not agreed upon payments have been received from the State of Florida and Pinellas County. Due to the complexity of this bond issue, this resolution authorizes a negotiated sale of these bonds, rather than a competitive sale. Staff feels that this is in the best interest of the City. The firm of UBS Paine Weber has been selected to be senior managing underwriter since they were the low bidder on the City’s last competitively bid bonds (2002 Water and Sewer Bonds). The firm of Salomon Smith Barney has been selected to be the co-manager on this deal since they were the low bidder on the previous competitively bid bonds (2001 Sales Tax Revenue Bonds). This resolution authorizes the City Manager and Finance Director to award the sale of the bonds. Only the amount of bonds will be issued that can be supported by the payments expected from the State of Florida and Pinellas County (under the respective agreements), plus any expected interest earnings on such payments. Finance Director Margie Simmons reviewed a change to permitted investments of funds received by the State and County prior to the funds being submitted to the paying agent for payment to the bondholders. Changes to Section 13 of the resolution further restricts permitted investments and eliminates any possibility of market loss on the investments in the short time period that the funds are held prior to disbursement. This does not change interest assumptions. The bond company is not comfortable with market risks and wants the funds in a money market. Commissioner Hamilton moved to approve providing for the sale of not to exceed $15.5 million Revenue Bonds, to fund a Community Sports Complex, as amended, and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. The City Attorney presented Resolution #02-43 and read it by title only. Commissioner Gray moved to pass and adopt Resolution #02-43 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. ITEM #34 - Approve the State of Florida Department of Transportation contract renewal for sweeping State roadways, and adopt Resolution No. 02-39 PW The maintenance agreement between the Florida Department of Transportation and the City of Clearwater will expire on October 2, 2002. The contract has an annual renewal option for the continued sweeping of 23 miles of various state roadways in 26 cycles. The City of Clearwater Legal Staff has coordinated the scope of services with the FDOT representative. Renewal is subject to the same terms and conditions of the original agreement. FDOT Standard Agency Format requires conformance with the Manual of Uniform Traffic Control Devices (MUTCD). The Public Services Department has the necessary equipment to conform to the MUTCD, i.e.… a shadow truck with an attenuator and arrow board. FDOT compensation for services is based on miles of sweeping completed, currently estimated at $13,306.54 but not to exceed $25,116 annually (at $43 per mile). Operating costs to provide these services are approximately $25 per mile. Commissioner Jonson moved to approve the State of Florida Department of Transportation contract renewal for sweeping State roadways as outlined in the "Scope of Services," and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. The City Attorney presented Resolution #02-39 and read it by title only. Commissioner Hibbard moved to pass and adopt Resolution #02-39 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. ITEM #35 - Approve an agreement with the Florida Department of Transportation transferring ownership of Ft. Harrison Avenue/Drew Street from the State highway system to the City roadway system and transferring ownership of Myrtle Avenue from the City roadway system to the State highway system, and adopting Resolution No. 02-35. PW The limits of Ft. Harrison Avenue to be transferred are from Belleair Road on the south to Myrtle Avenue on the north. The limits of Drew Street to be transferred are from Ft. Harrison Avenue to Myrtle Avenue. The limits of Myrtle Avenue to be transferred are from Chestnut Street on the south to Ft. Harrison Avenue on the north. Once the transfer is complete Myrtle Avenue would become designated as Alternate US 19. The transfer would become effective once improvements are made to both roadways; Ft. Harrison Avenue improvements scheduled from October of 2002 to October of 2004. The Myrtle Avenue improvements would be done between the spring of 2003 and the fall of 2004. In response to a question, City Engineer Mike Quillen said the project will begin in Largo and proceed north. Commissioner Hamilton moved to approve an agreement with the Florida Department of Transportation transferring ownership of Ft. Harrison Avenue/Drew Street from the state highway system to the city roadway system and transferring ownership of Myrtle Avenue from the city roadway system to the state highway system, and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. The City Attorney presented Resolution #02-35 and read it by title only. Commissioner Jonson moved to pass and adopt Resolution #02-35 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. ITEM #36 - Adopt Res. 02-42 authorizing the subordination of an existing water line easement on the west side of US 19/SR 55, just south of SR 60, to the Florida Department of Transportation (FDOT), and approve a subordination agreement with FDOT. PW The Florida Department of Transportation has requested a subordination of utility interest from the City for an existing water line easement along US 19/SR 55, on the former Lubys Restaurant property just south of SR 60. The FDOT requests that the City adopt a resolution to initiate the agreement process. The parcel of interest will be used to facilitate transportation improvements along US 19 as part of the Whitney Road to SR 60 interchange project, and is in the best interest of the City. The City has water facilities within this easement, and will retain the right to use this land for these facilities providing they are in accordance with FDOT’s current minimum standards as outlined in the Utility Accommodation Manual. FDOT will pay to relocate the water line, if determined necessary. Commissioner Gray moved to authorize the subordination of an existing water line easement on the west side of US 19/SR 55, just south of SR 60, to the Florida Department of Transportation (FDOT), and approve a subordination agreement with FDOT, and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. The City Attorney presented Resolution #02-42 and read it by title only. Commissioner Hamilton moved to pass and adopt Resolution #02-42 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: "Ayes": Gray, Hamilton, Jonson, Hibbard, and Aungst. "Nays": None. ITEM #37- Other Pending Matters – None. CITY ATTORNEY REPORTS ITEM #38 - Other City Attorney Items – None. ITEM #39 – City Manager Verbal Reports a) Cabana Club Update Development Services Director Jeff Kronschnabl relayed the history of Code violations at the Cabana Club and presented before and after photographs. Repairs to the exterior of the structure are 90% complete. The owners have agreed to repair all items on the City punch list within 30 days. He recommended the City retain escrow money until the project is completed. Dick Rubin, representating Sand Key, said the owners have kept their word to repair the structure. Regarding the structure’s future, he said the Sand Key Civic Association had indicated a preference for a restaurant, open to the public. Richard Wilhelm and Sam Downing, representing the property owners, reported work should be completed within 10 days. They complimented the City’s professional staff. It was requested staff be flexible and, if possible, expedite permitting necessary for the project’s next step. ITEM #40 - Other Commission Action Commissioner Hibbard, Commissioner Gray, and Commissioner Jonson today attended the grand opening of the downtown Publix, a welcome addition. Commissioner Hibbard said today he had attended the groundbreaking for Mediterranean Village, a 100-townhome development downtown. Commissioner Hibbard said he had attended a Pinellas County Safety Counsel meeting and accepted an award on behalf of the City for the roundabout project at Acacia Circle. Officer Kinchen also was presented an award for work on a successful seat belt program at Clearwater High School. Commissioner Gray and Commissioner Hamilton said the FLC (Florida League of Cities) meetings had been educational and offered an opportunity to interact with other elected officials. Commissioner Gray said she had attended a meeting in Jackson Hole, WY as a guest of the Gas Department on behalf of the Mayor, where CGS Managing Director Chuck Warrington was installed as Chair of the American Public Gas Association. Commissioner Jonson said limiting C-View programming to broadcasting meetings may save $80,000 annually, not a million as some citizens have suggested. He felt independent productions, such as Blueline CPD, are valuable to residents. Commissioner Jonson recommended a small grant program for neighborhoods be established, offering matching funds. Commissioner Jonson requested information regarding the City’s return on investment for the Tampa Bay Partnership. Commissioner Jonson congratulated the City Manager and staff for completion of the Code Compliance Program for City properties. Commissioner Jonson thanked Florida Power for straightening its light poles on the Memorial Causeway. Commissioner Jonson thanked Peoples Bank for locating its street address on its freestanding sign. Commissioner Jonson, Commissioner Hamilton, and Mayor Aungst offered Darold Brink get well wishes and offered thoughts and prayers to him and Carolyn. Commissioner Hamilton wished residents a Happy Labor Day holiday. Mayor Aungst reported the Suncoast Safety Council, Inc. had awarded the City first place in the Community Safety Division. Mayor Aungst said Commission participation on C-View programs provides information to the community and is not self-serving. He said special programming is an important adjunct to the broadcast of meetings. Mayor Aungst said he had attended a Tampa Bay Leaders Command Update and luncheon at MacDill Air Force Base by invitation of General Holland. Mayor Aungst offered condolences to Duke Tieman on the passing of his mother. Mayor Aungst said he had attended the retirement reception for USF (University of South Florida) Dean Heller. ITEM #41 - Adjournment The meeting adjourned at 9:44 p.m.