01/16/2007
CITY COUNCIL SPECIAL MEETING MINUTES
CITY OF CLEARWATER
January 16, 2007
Present: Frank Hibbard Mayor
Carlen Petersen Vice-Mayor
William C. Jonson Councilmember
John Doran Councilmember
J.B. Johnson Councilmember
Also present: William B. Horne II City Manager
Garry Brumback Assistant City Manager
Rod Irwin Assistant City Manager
Pamela K. Akin City Attorney
Cynthia E. Goudeau City Clerk
Rosemarie Call Management Analyst
The Mayor called the meeting to order at 8:00 a.m. at City Hall.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
4 – Other Council Action
4.1 Approve the City Manager recommended rental rates for the downtown boat slips beginning
in 2009 at $15.50/foot/month and $2/foot/day and the proposed method for awarding these slips
by blind lottery with priority given to City of Clearwater residents
The City of Clearwater has experienced a loss of wetslips and drystacks due to private
redevelopment. The Pinellas County Boating Access Task Force documented a loss of 341
wetslips and 960 drystack racks in Pinellas County from 1996 to 2005. The City Marina waiting
list has been capped and demand for boat slips continues to grow. The Downtown Plan
contemplates and encourages boat slips, docks and promenades on the waterfront, and
provision for such facilities is consistent with said Plan as well as the City of Clearwater's
Comprehensive Plan.
Pursuant to direction from the City Council, a feasibility study was conducted and the
results were presented at the July 18, 2006 Council meeting. A referendum election is planned
for March 13, 2007, to amend the Charter to allow for the building and maintenance of such
amenities.
Major assumptions used in the feasibility study include: 1) Although the City has applied
for approximately $1.2 million in grants, these grants have not been awarded, so the City has
assumed that no grants are received; 2) The Downtown Development Board contributes
$50,000/year for 10 years. They have already agreed to this contribution; 3) The Community
Redevelopment Agency contributes $500,000; 4) Bonds are issued to fund the balance needed
to construct the boat slips. The borrowing would be for 20 years, with one year of capitalized
interest and no principal in the first year (year of construction), and level debt service for the
remaining 19 years. The interest rate assumed is 1% above the current rate; 5) Anticipated
costs were obtained from City Marina staff based upon experiences with the existing Marina.
Council Special 2007-01-16 1
2006 costs for personnel were increased at 4.2%/year, and other operating and maintenance
costs were increase at 3%/year. Repair and maintenance costs were increased once the bonds
are retired (year 20) to provide for renewal and replacement of the facility; 6) The cost of
constructing the boat slips is $11 million which was obtained from three separate sources for
2006 costs and inflated up to 2008 construction costs at 7% per year. The construction
estimates include a 15% contingency; and 7) Based upon these assumptions, the project will
operate at a profit.
In addition to setting the proposed rates, staff proposes setting a process for allocating
these slips. Staff proposes awarding the slips by blind lottery with priority given to City of
Clearwater residents. The current website has an online form where individuals can register
their interest in a boat slip. At the point in time when the referendum has passed, and the
construction contract has been awarded, the City will contact all parties who have registered
their interest as well as advertise to the public that applications will be accepted. Once the time
period for applications has expired, it is proposed that a blind lottery be used, with first priority
given to residents of the City of Clearwater. Staff will be bringing forward more specific rules for
conducting the lottery and allocating slips in the future.
Public Communications Director Doug Matthews reviewed presentation and renderings
to be used in the public information campaign.
Assistant City Manager Rod Irwin reviewed the rationale behind proposed rates. The
City worked with ATM (Advanced Technology Management) to project slip rental rates for
permanent and transient slips. A TM recommends retaining the rate until the City is certain it
has saturation. It was stated that the proposed cash flow is attainable and the project will
enhance activities at the downtown waterfront every day of the year.
In response to questions, Marine & Aviation Director Bill Morris said the City will begin
taking reservations for transient vessels. The EAB (Environment Advisory Board) unanimously
supported the project. Finance Director Margie Simmons said net income can be appropriated
for any purpose. Repairs and maintenance are included in the operating cost. There will be no
charge for day visitors, unless they dock at transient slips.
Council member Jonson moved to approve the City Manager re"commended rental rates
for the downtown boat slips beginning in 2009 at $15.50/fooVmonth and $2/fooVday. The
motion was duly seconded and carried unanimously.
Councilmember Doran moved to approve the proposed method for awarding these slips
by blind lottery with priority given to City of Clearwater residents. The motion was duly
seconded and carried unanimously.
6 - Adjourn - The meeting adjourned at 8:28 a.m.
5~F~
Mayor
City of Clearwater
Council Special 2007-01-16
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