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06/15/2020 Council Work Session Meeting Minutes June 15, 2020 City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 m Meeting Minutes Monday, June 15, 2020 9:00 AM Main Library - Council Chambers Council Work Session Page 1 City of Clearwater Council Work Session Meeting Minutes June 15, 2020 Roll Call Present 5 - Mayor Frank Hibbard, Vice Mayor David Allbritton, Councilmember Hoyt Hamilton, Councilmember Kathleen Beckman, and Councilmember Mark Bunker 1. Call to Order— Mayor Hibbard The meeting was called to order at 9:06 a.m. in Council Chambers at the Main Library. 2. Presentations — Given. 2.1 June Service Awards Two service awards were presented to city employees. The council recessed from 9:06 a.m. to 9:35 a.m. to meet as the CRA and Pension Trustees. 3. Office of Management and Budget 3.1 Amend the City's fiscal year 2019/20 operating and capital improvement budgets at mid year and pass Ordinances 9394-20 and 9395-20 on first reading. The fiscal year 2019/20 operating and capital improvement budgets were adopted in September 2019 by ordinances 9323-19 and 9324-19. Section 2.521 of the City's Code of Ordinances requires the City Manager to prepare a quarterly report detailing income, expenditure estimates, collections, the explanation of significant variances, as well as the financial status of all capital improvement projects. In response to question, Budget Manager Kayleen Kastel said Clearwater Gas System has already transferred the dividend payment, if Council does not approve CGS's request CGS's report later in the agenda formalizes the process. If Council does not approve CGS'request to transfer back $250,000, staff would amend this item. The property sales identified on page 3 were sold to the CRA and approved on may 13, 2019,properties included: 115 S. Martin Luther King, Jr. Avenue, the southwest corner of Cleveland Street and Dr. Martin Luther King, Jr. Avenue, southwest corner of Prospect Avenue and Park Street and the old Fire Station 45. Any expenditures or savings related to COVID-19 would be captured at third quarter. She said the lease purchase proceeds are actual funds spent for Page 2 City of Clearwater Council Work Session Meeting Minutes June 15, 2020 items purchased on short-term financing. In response to a concern, the City Manager said staff work out pay plan for individuals who cannot pay their utility bills. Staff will come to Council if non-payment due to COVID-19 creates a difficult situation. 4. Gas System 4.1 Accept Clearwater Gas System (CGS) Fiscal Year 19/20 Dividend to the City General Fund and request a transfer back of$250,000 to the CGS Operating Fund to provide additional funds for the Clearwater Neighborhood Expansion Program (CNEP). (consent) By City Council policy, CGS commits to pay an Annual Dividend of at minimum $1,700,000 to the City's General Fund. After the City books close for the year, the Gas System calculates the Annual Adjusted Dividend payment to return '/2 of its annual Net Income less debt service interest as a dividend to the City in the following year. CGS' financial performance for Fiscal Year 18/19 exceeded its plan; therefore, CGS will actually pay a Fiscal Year 19/20 dividend of $4,277,329, an increase of$2,577,329 above the minimum annual dividend payment to the City, which is an increase of$1,777,329 above the original Fiscal Year 19/20 budget of$2,500,000. Also, the Council has approved in past years to re-direct a portion of the CGS excess Dividend payments, when this is available, back to the CGS to accomplish certain citizen-beneficial services, in this case namely the Clearwater Neighborhoods Expansion Program (CNEP). As of March 31, 2020, the City has invested $1,557,845 in this program to provide gas mains and services into Countryside, Coachman Ridge, and a number of up to 300-foot extensions throughout the City amounting to 19.6 miles of gas main and servicing 536 citizen accounts. During the 19 years of this CNEP Program, we have actually expended $1,448,166 (93.0% of the allocated funding) and have only $109,679 (7.0% of the allocated funding) remaining available to invest in new gas mains and services for our Clearwater citizens. The last CNEP funding was $200,000 in March 2012. CGS is recommending that the City Council approve the allocation of$250,000 of the added CGS Dividend payment back to CGS to add to the CNEP funding and perpetuate this program to benefit Clearwater citizens by making clean and economical natural gas available to their homes. This will still leave remaining unexpected Council Dividend funds of$1,527,329. CGS Executive Director Chuck Warrington provided a PowerPoint presentation. In response to questions, Mr. Warrington said CGS expands service to Page 3 City of Clearwater Council Work Session Meeting Minutes June 15, 2020 customers based on a feasibility payback, CGS is requesting the $250,000 payback because the expansion went beyond the normal feasibility payback. The City Manager said as CGS sees the expansion opportunity in Pasco County, from a business perspective, it will cost more to expand service within city limits since Clearwater is built out, some of the payback money can be directed to assist expanding CGS service within Clearwater neighborhoods that do not have the service. A concern was expressed that CGS is burning fossil fuel to provide a service and that the requested payback should not be approved given the expected shortfall related to COVID-19. It was stated that the electricity one received at home is generally produced by burning natural gas. It was suggested that staff provide information regarding how much gas is used at power plants and how much is lost in transmission. Staff was directed to take the Item of the Consent Agenda. 4.2 Approve an increase to Purchase Order No. 19000957 with Chesapeake Utilities Corp d/b/a Marlin Gas Services, LLC, in the amount of$115,000, to provide portable natural gas service and authorize the appropriate officials to execute same. (consent) Marlin Gas Services provides portable compressed natural gas (CNG) tanks to serve customer locations that currently do not have a permanent gas main installed. Since March 2019, Clearwater Gas System (CGS) has utilized Marlin CNG tankers to serve the Del Webb subdivision as this residential neighborhood is currently not connected to our distribution system. The original purchase order was approved in March 2019 at $40,000. The City Manager approved an increase of$60,000 in August 2019. Subsequently, the City Council approved an increase of$140,000 in September 2019. The reason for this next increase is to serve the following items: • Continue to provide portable CNG to the Del Webb subdivision. CGS still needs to extend our distribution main approximately one mile, along Tower Rd (aka Bud Bexley Parkway), to serve the Del Webb community. Other utility contractors working on Tower Road have prevented CGS from installing our gas distribution lines to the entrance of the subdivision. Therefore, we have experienced delays installing our distribution main. The goal is to have the permanent gas line extended to the Del Webb subdivision by October 2020. • To provide emergency CNG backup services for the US Highway 41 road widening project in Pasco County. CGS has a one-way feed of gas Page 4 City of Clearwater Council Work Session Meeting Minutes June 15, 2020 supply that serves approximately 1,800 customers downstream of a future road construction project along US Hwy 41,just south of State Road 52. If a contractor hit's our gas line, we may potentially loose gas pressure, resulting in the loss of all customers downstream of the hit. If this happens, it will require gas technicians to manually shut-off of each meter account and re-initiate services once the repair is made and line pressure is restored. • Funds available for any future emergency portable gas requirements within the CGS Distribution system. With this increase, the new PO total will be $355,000. APPROPRIATION CODE AND AMOUNT: Funds are budgeted and available in 4232078-531300 In response to questions, Gas System Assistant Director Brian Langille said the contractors currently constructing Tower Road are in the way which delays CGS installation work. 5. Parks and Recreation 5.1 Award a Purchase Order to Chongqing Arlau Civic Equipment Manufacturing Co. Ltd. for outdoor site furnishings in the not-to-exceed annual amount of$250,000 with two one-year extension options at the City's discretion and authorize the appropriate officials to execute same. (consent) The Procurement Division issued Invitation to Bid #20-20, Outdoor Site Furnishings, on March 17, 2020. The bid closed on April 29, 2020 and the City received six responses. After review of each submittal, it was determined that Chongqing was the lowest most responsive bidder in accordance with the bid specifications. This purchase order will allow the Parks & Recreation Department to purchase outdoor site furnishings, including picnic tables, park benches, bike racks, trash receptacles, bollards and drink rails, for City properties and parks. The outdoor site furnishings are constructed of 316 stainless steel, specially coated for Florida's harsh salt air and humid environment, and they will last for several decades with minimal maintenance (primarily painting). Parks utilizes an inventory program to manage the replacement and refurbishment of site furnishings. A capital improvement program has been in place for over 35 years to repair and replace worn out furnishings. APPROPRIATION CODE AND AMOUNT: Page 5 City of Clearwater Council Work Session Meeting Minutes June 15, 2020 Funding for this contract may come from a variety of capital improvement projects. However, the primary source will be from "Park Amenity Purchase and Replacement" (CIP 315-93635). 5.2 Authorize an agreement between the City of Clearwater and the Bureau of Business Enterprise (BBE), Division of Blind Services, for a three-year period, with an option to renew for one additional three-year period, to provide employees and city facility patrons with snack vending services and authorize the appropriate officials to execute same. (consent) BBE, Division of Blind Services, has provided snack vending services at City facilities and recreation centers for the past three years. The current contract with BBE expired on August 31, 2019. The vending services are provided as a convenience for city employees, visitors to city facilities, and recreation center patrons. This item was previously taken to Council and approved on October 5, 2019. However, since then, the state made changes to the agreement which necessitated this new agreement. The City has been operating month to month with the vendor since August 31, 2019. The agreement does not change the substance and intent of the previously approved agreement. The primary changes made by the state deal with correcting verbiage regarding the relationship with the third-party vendor and BBE. Staff is recommending approval of this agreement for a period of three years, with an option to renew for an additional three-year period. 6. Engineering 6.1 Approve Engineer of Record (EOR) Work Order to McKim and Creed, Inc., in the amount of$148,614 for Lift Station 25 Force Main Replacement (20-0017-UT), and authorize the appropriate officials to execute same. (consent) The City of Clearwater owns and operates Lift Station 25 and its associated 12-inch force main located along Countryside Boulevard. There are three other city owned lift stations and one private lift station that manifold into the 12-inch force main. This force main recently experienced two failures: one at its eastern end in February, and a second occurred in May, closer to the lift station at an air Page 6 City of Clearwater Council Work Session Meeting Minutes June 15, 2020 release valve (ARV) that failed to operate. This project includes an assessment of the entire length of force main to identify its overall condition. Based on the results, the EOR will recommend if additional repairs are needed, such as lining the pipe, performing point repairs at specific locations, installing additional ARVs, or full replacement of the force main. The City of Clearwater Public Utilities Department is responsible for owning, operating, and maintaining the sanitary sewer collection system. APPROPRIATION CODE AND AMOUNT: 3217321-561300-96686 $148,614 Funds are available in Capital Improvement Project 96686, Pump Station Replacement, to fund the work order. 6.2 Approve Utility Work by Highway Contractor Agreement (UWHCA) between the Florida Department of Transportation (FDOT) and the City of Clearwater for the FDOT Utility Relocation at US 19 and Harn Blvd Project (20-0007-UT) and authorize the appropriate officials to execute same and adopt Resolution 20-29. FDOT is planning to construct a pedestrian overpass at the intersection of US19 and Harn Boulevard. The project includes constructing retaining walls used to support pedestrian ramps on the west and east sides of US19. The City has 8-in. and 4-in. reclaimed water mains on both sides of US19 that conflict with these retaining walls and require relocation. May 21, 2020, FDOT approved the City's request to enter a UWHCA to relocate the reclaimed mains that conflict with the proposed FDOT construction. This agreement allows FDOT to fund the City's relocation costs, estimated at $256,300, and include the work in an FDOT procured and managed contract. The proposed relocation work is within a City easement in FDOT ROW. 6.3 Approve a purchase order to Parkmobile of Atlanta, Ga, for reimbursement of transaction fees for mobile parking in an amount not to exceed $221,060 from July 9, 2020 through January 31, 2023, pursuant to Clearwater Code of Ordinances Section 2.564 (1)(d), other Governmental Contracts, and authorize the appropriate officials to execute same. (consent) May 7, 2015, City Council approved a Parking Service Agreement for pay-by-cell technology between the City of Clearwater and Parkmobile. That contract is due to expire July 8, 2020 and the Parking System recommends a piggyback off of the Miami Beach Contract in the form of a rider agreement with modifications to continue with the terms of the City of Clearwater Parking System's initial contract, due to expire July 8, 2020. Page 7 City of Clearwater Council Work Session Meeting Minutes June 15, 2020 For use of the mobile parking service, an end user fee of$0.35 per transaction is charged to the end user. Parkmobile accepts traditional credit card payments (Visa, MasterCard, Discover and AMEX) from customers (End User) and all transaction revenue is paid to the Parking Division, including the transaction fee which the City reimburses to Parkmobile. During the period of August 2015 thru April 2020, the City of Clearwater Parking Division recorded 540,080 total transactions made thru Parkmobile App. Usage has increased over the contract period and is expected to continue to rise. Estimated transaction numbers are based on actual 2019 data for the initial period plus an estimated 20% annual increase for the following years. The initial period of the ridership agreement is for seven months, July 9, 2020 thru January 31, 2021. The estimated transaction fees per period are calculated as follows: Year 1 (7 months) - 130,000 transactions @ $.35 each = $45,500 Year 2 -228,000 transactions @ $.35 each = $79,800 Year 3 -273,600 transactions @ $.35 each = $95,760 TOTAL 3-year reimbursements to Parkmobile = $221,060 APPROPRIATION CODE AND AMOUNT: 0435-01333-530300-545-000-0000 $221,060 Funds are available in 0435-01333-530300, Parking System Contractual Services in the amount of$45,500 in Fiscal Year 2020 and will be budgeted at the indicated amount per year in Fiscal Year 2021 through Fiscal Year 2023 for total funding in the amount of$221,060 In response to questions, Interim Parking Manager Sue Tellier said each transaction is charged $0.35, except for Clearwater residents who register with Parkmobile. The contract before Council continues waiving the transaction fee for City of Clearwater residents. The cities of Tampa and St. Petersburg also use Parkmobile. She said staff has started discussing the possibility of working together for a better fee, one of the cities has acquired a second provider to compare cost and service. In response to a suggestion, the City Manager said it is difficult for the city to avoid criticism of competing with the private sector if staff create a mobile parking app. It was stated that Parkmobile is located everywhere and would be difficult to consider creating a separate app for the three cities. 6.4 Declare as surplus, 66.30 acres MOL of the 78.52 acres MOL known as the Landings Golf Course located at 1875 Airport Drive, Clearwater, for the purpose of development and ground lease of the site for a light industrial center. (APH) Page 8 City of Clearwater Council Work Session Meeting Minutes June 15, 2020 The subject property is city-owned land currently operating as The Landings Golf Course. The zoning and land use is designated Open Space/Recreation (OS/R). In total, the site is 78.52 acres MOL and is bounded by N. Keene Rd to the West, Airport Dr. to the South and adjacent to Clearwater Airpark which is both East and North of the property. The proposed project envisions construction of a multi-building industrial center comprised of 750,000 +/- SF Class A rentable space on 66.30 acres MOL. The remainder of the property, approximately 12.22 acres, is not part of this surplus request. This southern portion is proposed to remain as recreational use and the city anticipates entering into a lease agreement with the current golf course operator. The operator envisions the construction and operation of an Aqua Golf Driving Range. City Council authorized staff at the May 21, 2020 council meeting to move forward with the necessary steps to obtain approval for the redevelopment of The Landings Golf Course site as a light industrial center. One of the initial steps to move forward with the site redevelopment and ground lease is for City Council to declare surplus 66.30 acres MOL of the Landings Golf Course. In response to questions, the City Attorney said if the referendum fails, the property remains as is. The item before Council does not change the land use plan or the zoning, nor does it approve the lease. She said if the referendum fails, the declaration of surplus for the purpose of redevelopment for the light industrial center is gone. Assistant City Manager Michael Delk said the 1985 comprehensive planning and land development regulation act of Florida set the national standard for concurrency and levels of service, requiring cities and local governments a parks and recreation element. The land area and facility standards could be tailored as municipalities saw fit. The Parks and Recreation Department used to maintain a lot of smaller pocket parks, during the last several years the Department has moved away from pocket to regional parks with enhanced facilities and services. Planning and Development Director Gina Clayton said an appropriate mix of land use varies based on the community. A balance of commercial and industrial land uses helps the tax base and provides opportunities for individuals to live here. She said staff is trying to maximize the land currently designated for commercial purposes for redevelopment planning, specifically along U.S. Hwy. 19. Discussion ensued with comments made that many residents have expressed support to redeveloping currently underutilized commercial land before redeveloping a large amount of continuous green space. It was stated that it is difficult for one to assemble the existing commercial properties owned by different individuals into one parcel. Page 9 City of Clearwater Council Work Session Meeting Minutes June 15, 2020 The City Attorney said that the proposed site is the only property within the City's control. The City does not own the other commercial properties. 6.5 Provide direction on Councilmember Beckman's request for four free parking spaces by the Cleveland Street Post Office. • Parking Systems supports CM Beckman's request for four, free parking spaces by the post office. • There are currently three 30-minute spaces at 25 cents/30 minutes. The surrounding spaces in the 600 block of Cleveland Street are at the same rate but with two-hour time limits. • Recommend leaving the 30-minute time limit as currently posted. • Revenues from these four spaces average-$3000/year. Minimal revenue impact compared to overall parking operations. • Minimal impact to downtown enforcement operations. • If approved by City Council, these four spaces will be considered city council designated free spaces. In response to questions, Interim Parking Manager Sue Tellier said three of the four parking spaces are currently designated with a 30-minute limit and free after 6:00 p.m. The rate for the spaces are $0.25 per thirty minutes. Converting the four spaces to free parking would result in an annual $3,000 revenue loss. Staffs consideration included other governmental buildings where parking is free, such as the Municipal Services Building. Discussion ensued with comments made that there is no free parking for City Hall offices and that free parking should be available for government buildings. Staff was directed to proceed with converting four metered parking spaces to free spaces. 7. Public Utilities 7.1 Authorize a purchase order to Trojan Technologies of London, Ontario, Canada, for Salsnes Filter replacement parts and services, in the annual amount of$150,000.00 with the option for two, one-year extensions, pursuant to Clearwater Code of Ordinances Section 2.564 (1)(b) Sole Source, and authorize the appropriate officials to execute same. (consent) Salsnes Filters are used in the City's wastewater facilities for solids separation, due to their high efficiency and reliable technology that maximizes solids separation, which eases the demand on downstream biological treatment. The Salsnes Filters' integrated thickening and optimal dewatering capabilities, results in smaller volume of dried sludge, therefore reducing disposal costs. Page 10 City of Clearwater Council Work Session Meeting Minutes June 15, 2020 The solids leaving the Salsnes Filters are high in volatile organics which helps enable the anaerobic digesters to function correctly therefore assisting the city to meet regulatory required pathogen reduction. Trojan Technologies of London, Ontario, Canada is the sole authorized regional distributor of Salsnes Filters and services. Standardization of solids separation equipment reduces redesign/retrofit of the piping systems and overall down time, which is critical to maintaining regulatory compliance. Standardization also reduces the required stocking of parts, replacement pumps, and the cost of maintenance operations. Public Utilities will complete a market analysis each year prior to renewal to ensure no additional distributors have entered the market for these parts. In accordance with Clearwater Code of Ordinances Section 2.564 (1)(b), Exceptions to Bidding, Trojan Technologies has been determined a sole source vendor for Salsnes Filter, replacement parts and factory authorized service. APPROPRIATION CODE AND AMOUNT: Budgeted funds are available in Public Utilities operating cost centers 550400 Operating Supplies & Materials to cover the cost of the contract for FY20 Funding for future fiscal years (FY21 through FY23) will be requested within contract calendar and spending limits. 8. Legal 8.1 Confirm COVID-19 Emergency Proclamation and adopt Resolution 20-30. 9. Economic Development and Housing 9.1 Approve term sheet for Harrod Properties, Inc. Staff is seeking approval of proposed term sheet for the lease and redevelopment 57.11 acres MOL. The property is currently addressed at 1875 Airport Drive in Clearwater. The Council recessed from 10:50 a.m. to 11:00 a.m. In response to questions, Economic Development and Housing Director Denise Sanderson said the maximum height, per city code, is 50 feet but the developer has indicated that their buildings are typically 32-40 ft. high. Senior Economic Development Coordinator Phil Kirkpatrick conducted an analysis of recent transactions within the region for ground rent to ensure what staff negotiated was market rate. She said staff recognizes that the Page 11 City of Clearwater Council Work Session Meeting Minutes June 15, 2020 developer is not receiving a pristine site ready for build and reason why the program credit was considered. Back in 2011, the City's adopted economic development strategic plan identified this type of development at this site. The City Attorney said Exhibit B includes those items the developer has agreed to do in order to meet some of the Greenprint objectives. The developer has also agreed to increase the park land to 8.31 acres over what was originally proposed. Ms. Sanderson said the stormwater ponds are sized to accommodate any runoff. Planning and Development Director Gina Clayton said the City's multimodal ordinance requires investment for multimodal improvements. If the project is approved and proceeds with the site plan process, staff will work with the developer to integrate bus shelters to offset the traffic increase associated with the jobs created. Ms. Sanderson said the City and County will continue to receive all of the ad valorem taxes; the ground rent credit is against the lease the City is charging. Currently, the golf course provides the City$12,000 annually to lease the site, the developer will pay a 10-year pre-payment upon the beginning of Phase 1 (all of Phase 1 rent less the ground rent credit associated with Phase 1). Mr. Kirkpatrick said for the past 30 years he has been doing real estate development, focusing in commercial, industrial and health care. He has worked as a for-profit developer and a broker in the industrial segment for 10 years. He said the type of development that is being built he refers to as flex industrial and the energy efficiency opportunities are limited because it does not have the intensity or energy consumption associated with office development, everyone will address some of the energy efficiency requirements with LED lighting. Unlike typical manufacturing or distribution sites, flex industrial will not have as much traffic. The former debris areas and the use of herbicides, insecticides and pesticides associated with the golf course have an environmental impact, capping the debris sites with asphalt reduces the pollution that percolates into the groundwater. He said the south central pond was a former debris site and the developer will be remediating the area in order to get a clean perc for the stormwater. Ms. Sanderson said the City does not have a policy requiring developers to install solar panels, instituting such a policy would require a city incentive that staff could cite during negotiations. The City Attorney said the City does not require city buildings to have solar panels. Staff was directed to provide an economic impact analysis prior to the council meeting. 10. City Manager Verbal Reports — None. 11. City Attorney Verbal Reports — None. Page 12 City of Clearwater Council Work Session Meeting Minutes June 15, 2020 11.1 Discussion and direction on referendum question regarding The Landings golf course. The City Attorney presented a draft referendum question. Staff was directed to amend the light industrial terminology to light industrial research technology. In response to a question, the City Attorney said the draft referendum question will be presented to Council for first reading in July. 12. New Business (items not on the agenda may be brought up asking they be scheduled for subsequent meetings or work sessions in accordance with Rule 1, Paragraph 2). Mayor Hibbard requested a future discussion item on the noise concerns raised by Continental Towers residents and the possibility of a vessel exclusion zone. Councilmember Hamilton requested a staff report on the pending sale of Prospect Towers and impact to residents. 13. Closing Comments by Mayor— None. 14. Adjourn The meeting adjourned at 11:39 a.m. Page 13 City of Clearwater