12/19/2023 City Council Meeting Minutes December 19, 2023
City of Clearwater
Main Library- Council Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
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Meeting Minutes
Tuesday, December 19, 2023
6:00 PM
Main Library - Council Chambers
City Council
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City of Clearwater
City Council Meeting Minutes December 19, 2023
Roll Call
Present: 5 - Mayor Brian Aungst Sr., Vice Mayor Mark Bunker, Councilmember
David Allbritton, Councilmember Kathleen Beckman and
Councilmember Lina Teixeira
Also Present: Jennifer Poirrier— City Manager, Michael Delk—Assistant City
Manager, Daniel Slaughter—Assistant City Manager, David Margolis
— City Attorney, Rosemarie Call — City Clerk and Nicole Sprague —
Deputy City Clerk.
To provide continuity for research, items are listed in agenda order although not
necessarily discussed in that order.
1. Call to Order— Mayor Aungst, Sr.
The meeting was called to order a 6:00 p.m.
2. Invocation
3. Pledge of Allegiance
4. Special recognitions and Presentations (Proclamations, service awards, or other
special recognitions. Presentations by governmental agencies or groups providing
formal updates to Council will be limited to ten minutes.) — Given.
4.1 December Service Awards
The December 2023 Employee of the Month Award was presented to
Sean Maxfield, Parks and Recreation.
4.2 Letter of Appreciation presented to Muhammad Abdur-Rahim.
The Council recessed from 6:08 p.m. to 6:10 p.m. to meet as the Pension
Trustees.
5. Approval of Minutes
5.1 Approve the minutes of the December 7, 2023 City Council meeting as submitted in
written summation by the City Clerk.
Councilmember Beckman moved to approve the minutes of the
December 7, 2023 City Council meeting as submitted in written
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summation by the City Clerk. The motion was duly seconded and
carried unanimously.
Public Hearings - Not before 6:00 PM
6. Administrative Public Hearings
6.1 Approve the City of Clearwater's Fiscal Year 2022-2023 Consolidated Annual
Performance and Evaluation Report (CAPER). (APH)
The Consolidated Annual Performance and Evaluation Report (CAPER) is the
principal administrative report documenting the City's expenditures for
Community Development Block Grant (CDBG) and HOME Investment
Partnership (HOME) programs to the U.S. Department of Housing and Urban
Development (HUD). For Fiscal Year (FY) 2022-2023, the City's entitlement
allocation was $897,475 in CDBG and $509,528 in HOME program funds,
$1,277,780 of CDBG Prior Year funds, $1,544,426 in HOME funds carried over
from the prior year, $1,292,456 of HOME Program Income, $1,351,560 in
CDBG-CV and $1,030,306 in CDBG Revolving Loan funding for a total budget of
$7,903,531 from federal funds. In addition, the city had a total of$1,127,930 in
State Housing Initiatives Partnership Program funding, plus $777,423 in SHIP
program income and $224,342 in Pinellas County Housing Trust funds, which is
program income from a previous distribution. The city also allocated
$3,300,000 of General Funds, converted from American Rescue Plan Act Local
Fiscal Recovery Funds (ARPA) toward affordable housing and $1,000,000 for
distribution to non-profit organizations.
Through the CDBG and HOME program activities, total expenditures of CDBG
and HOME funds were $1,992,831 in FY 2022-2023. Funds not expended from
this year's budget will be programmed in future years.
In addition to reporting activities carried out with federal money, a summary of
activities conducted with the Florida State Housing Initiatives Partnership (SHIP)
Program and Pinellas County Housing Trust Fund (PCHTF) Program is also
included in the narrative section. For FY 2022-2023, SHIP fund expenditures
totaled $1,199,718 and PCHTF fund expenditures totaled $43,700. The city also
expended $1,643,345 in ARPA funds on various housing activities and $250,000
to assist families affected by the closure of a mobile home park.
The report provides HUD with necessary information for the Department to
meet its requirement to assess each grantee's ability to carry out relevant
Community Planning and Development programs in compliance with all
applicable rules and regulations. It also provides information necessary for
HUD's Annual Report to Congress and it provides grantees an opportunity to
describe to citizens their successes in revitalizing deteriorated neighborhoods
and in meeting objectives stipulated in their Consolidated Planning document.
The City of Clearwater's FY 2022-2023 CAPER contains information on the
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City's assessment of the following activities:
• Assessment of Five-Year Goals and Outcomes
• Resources and Investments
• Affordable Housing
• Homeless and Other Special Needs
• Public Housing
• Other Actions to Address Barriers to Affordable Housing
• Monitoring
• CDBG
• HOME
A list of notable accomplishments utilizing federal, state and local funds for FY
2022-2023 include:
• Provided six (6) down payment & closing cost assistance loans totaling
$263,975.
• Using SHIP, CDBG, HOME and PCHTF, expended $167,756 to assist
four (4) homeowners to preserve their homes through rehabilitation.
• Using General Fund ARPA-related funds allocated for affordable
housing, the city funded the construction of three (3) single-family
homes at a total cost of$836,830; completed one (1) home rehabilitation
at a cost of$56,518; provided ten (10) downpayment loans totaling
$495,600; and provided $205,098 in grant funding to assist with
emergency repairs to forty-seven (47) homes.
• Completed the rehabilitation of one (1) rental unit for the Kimberly Home
to further its mission of housing homeless pregnant woman and new
mothers.
• Provided a total of$1,320,546 to two organizations for construction of
seven (7) single-family homes, four (4) of which are still under
construction.
• The city expended $250,000 in General Fund ARPA-related funds to
assist 38 families displaced due to the closure of the 90-unit Capri
Mobile Home Park.
• Expended $733,921 for 17 Public Facilities projects. Facility
improvements were made to the following:
o Clearwater Neighborhood Housing Services, Inc. - Main Office
Improvements,
o Clearwater MLK Jr. Neighborhood Center Coalition, Inc. - MLK Jr.
Community Center Rehabilitation,
o Homeless Emergency Project, Inc. - 1357 Park Street
Improvements; Adult Dormitory, Shelter Dining Hall, and
Independence Square Roof Rehabilitations; and Affordable
Supportive Housing Improvements
o The Salvation Army - Mallory Powell Social Services Campus
Improvements,
o Directions for Living -Exterior Safety and Security Improvements and
Elevator Improvements with ADA Compliance
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o St. Vincent de Paul - Facility Rehabilitation Phase 2 and
Emergency Roof Rehabilitation,
o R'Club Child Care, Inc. - Breeden Early Learning Academy
Renovations, including Painting Improvements; and Gateway Early
Learning Academy Painting Improvements
o The Kimberly Home, Inc. - Rehabilitation of Multi-Unit Residential
• Expended $100,718 for operational support for 7 Public Service
providers.
o GulfCoast Legal Services - Housing-related legal services,
o The Arc Tampa Bay, Inc. - Services for adults with intellectual or
developmental disabilities
o WestCare Gulfcoast-Florida - substance abuse services
o Pinellas Opportunity Council's CHORE - Senior services
o Homeless Empowerment Program - Emergency Shelter Program
o The Kimberly Home, Inc- salary support for Transitional Housing
Program,
o Intercultural Advocacy Institute -Youth Services Program.
• Provided $19,825 for technical assistance services to Hispanic
Business Initiative Fund of Florida, Inc. dba Prospera and Tampa Bay
Black Business Investment Corporation to assist 19 entrepreneurs and
businesses.
• Contributed $250,000 through the city's General Fund
o Pinellas Safe Harbor -$100,000
o Homeless Emergency Project, Inc. -$50,000
o Homeless Leadership Alliance - $25,000
o Pinellas Hope - $40,000
o Hope Villages of America - $25,000
o The Salvation Army of Upper Pinellas -$10,000
Overall federal, state and local funding assisted 12,624 persons and 168
households.
On December 12, 2023, the Neighborhood and Affordable Housing Advisory
Board recommended City Council approval of the CAPER as written. The
CAPER is due annually to HUD no later than December 31.
In response to a question, Economic Development and Housing
Assistant Director Chuck Lane said the data provided under the
non-homeless special needs category is the number of individuals
served by the funded projects.
One individual said he chooses to be homeless and he opposed the
City's panhandling ban.
Vice Mayor Bunker moved to approve the City of Clearwater's
Fiscal Year 2022-2023 Consolidated Annual Performance and
Evaluation Report (CAPER). The motion was duly seconded and
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carried unanimously.
7. Second Readings - Public Hearing
7.1 Adopt Ordinance 9726-23 on second reading, making amendments to the Community
Redevelopment Code by amending Appendix C, Downtown District and Development
Standards, Division 3. Character District Standards and Division 8. Flexibility.
Ordinance 9726-23 was presented and read by title only.
Councilmember Teixeira moved to adopt Ordinance 9726-23 on
second reading, making amendments to the Community
Redevelopment Code by amending Appendix C, Downtown
District and Development Standards, Division 3. Character
District Standards and Division 8. Flexibility. The motion was duly
seconded and upon roll call, the vote was:
Ayes: 5 - Mayor Aungst Sr., Vice Mayor Bunker, Councilmember Allbritton,
Councilmember Beckman and Councilmember Teixeira
8. Citizens to be heard re items not on the agenda - For purposes of this role,
"items pertaining to city business" includes any matter within the Council's or the
City Manager's power to act, any matter that the Council previously voted on or
discussed at the dais, or any matter discussed by or scheduled to be considered by
another governmental entity that affects the operation of the City. Each person who
wishes to address the Council shall complete a comment card and submit the card
to the City Clerk (right-hand side of dais) before the speaker will be permitted to
speak. However, if the speaker has just arrived or decided to speak, the Chair may
allow the card to be filled out after speaking. Individuals will limit their comments to
a maximum of three minutes. The Mayor shall advise the speaker that their time has
expired. If the person remains at the podium, thereby interfering with other persons
who may wish to be heard, the speaker's microphone may be turned off, or the
Mayor may rule the person out of order in accordance with Rule 15.
Rudy Michalek encouraged the City to revisit the idea of implementing a
Conflict of Interest statement.
Brian Lowack said the marketing efforts by Visit St. Pete Clearwater are
only as effective as our partnerships. He said Pinellas County was the
number one tourist destination this year. He thanked Mayor Aungst
for attending the World Travel Market in London and representing
Clearwater with distinction.
Janice Metz, Martha Brinsko, Carl Huber, Marilyn Ward, Carol Dumont,
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and Cheryl de la Cruz expressed concerns with water quality
management, supported the City implementing more rain gardens, and
suggested developers be required to implement green infrastructure
solutions.
Mr. Holuba said he irritates Mayor Aungst.
The Council recessed from 6:36 p.m. to 6:37 p.m.
Carl Heisenbaum said respect is not given but earned.
9. City Manager Reports
9.1 Authorize a purchase order to Ten-8 Fire Equipment Inc of Bradenton FL, for the
purchase of a new Heavy Duty Pierce Velocity Heavy Rescue in the amount of
$1,714,451.95 pursuant to Clearwater Code of Ordinances Section 2.563(1)(c),
Piggyback, and Section 2.563(1)(d), Impractical to bid; declare G3264 surplus effective
upon receipt of the purchased vehicle and authorize disposal at auction in accordance
with Clearwater Code of Ordinances Section 2.622 or authorize trade-in in accordance
with Section 2.624, whichever is deemed to be in the City's best interest, and authorize
the appropriate officials to execute same.
Clearwater Fire and Rescue is requesting authorization to purchase a
Heavy-Duty Pierce Velocity Heavy Rescue to replace Squad 51. Of the total
amount, $753,751.00 is a piggyback from the Florida Sheriff's Association,
Contract FSA23-VEF17.0, Fire & Rescue Vehicles, Boats & Equipment, valid
through March 31, 2025. The piggyback purchase is for a basic model. There
are additional options added which total $960,700.95 ($1,014,440.95 less rebate
of$53,740.00 discount). The additional options are impractical to bid due to
delay in receipt of vehicle, possible void of warranty for after-market equipment,
manufacturer delay in receiving parts, etc. The basic model identified in the
FSA contract does not provide for elements that fulfill Clearwater Fire &
Rescue's Squad 51 mission and capabilities. The additional options selected
are specific to the squad, its technical rescue capabilities, and urban fire
department response to include the following: larger compartments, heavier
duty chassis, heavier duty drive train, air compressor, emergency lighting, etc.
The additional options for this basic model coincide with the current apparatus
that our City mechanics are familiar with and trained on. Additionally, the
discount we are being offered would no longer be available. All optional pricing
is vetted through the FSA contract and are priced at below Manufacturer
Suggested Retail Price (MSRP) per section 2.13 of the contract agreement.
Upon receipt of the new vehicle, G3965 purchased in 2013 will move to
reserves and reserve unit G3264 purchased in 2005 will be retired.
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Squad 51 is a heavy rescue apparatus and responds to every working fire,
every technical rescue, and each extrication call, including every second alarm
motor vehicle accident.
The Department has determined the Heavy-Duty Pierce Velocity Heavy Rescue
built by Pierce Manufacturing meets the operational needs of the Department.
The Pierce squad is the City of Clearwater Fire & Rescue Department standard
for the purpose of training and maintenance. Custom components have been
added to meet the needs of the fire district and surrounding municipalities. A
heavy-duty velocity rescue squad provides exceptional storage capabilities and
increased operational functionality. This purchase will up-grade the abilities of
the apparatus it replaces.
The City will be reimbursed by the County for a portion of the purchase,
approximately 12%, as the vehicle will support fire operations in the
unincorporated areas of the Clearwater Fire District.
Estimated annual operating costs in the department's annual operating budget
include fuel and routine garage charges for operating the new vehicle. Garage
charges on the new vehicle are expected to be less than on the replaced
vehicle.
Early ordering of this apparatus is necessary due to the estimated three-year
build time. We will work with the vendor to ensure receipt of apparatus is after
October 2026 as funds are budgeted in fiscal year 2026/27.
APPROPRIATION CODE AND AMOUNT:
Funding (General Fund revenues and Pinellas County Reimbursement
revenues) is planned in the 6-year Capital Improvement Program budgeted in
fiscal year 2026/27 project C27FD2, Fire Squad Unit Replacement.
STRATEGIC PRIORITY:
1.4 Foster safe and healthy communities in Clearwater through first-class
public safety and emergency response services.
Councilmember Allbritton moved to authorize a purchase order
to Ten-8 Fire Equipment Inc of Bradenton FL, for the purchase of
a new Heavy Duty Pierce Velocity Heavy Rescue in the amount of
$1,714,451.95 pursuant to Clearwater Code of Ordinances
Section 2.563(1)(c), Piggyback, and Section 2.563(1)(d),
Impractical to bid; declare G3264 surplus effective upon receipt of
the purchased vehicle and authorize disposal at auction in
accordance with Clearwater Code of Ordinances Section 2.622 or
authorize trade-in in accordance with Section 2.624, whichever is
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deemed to be in the City's best interest, and authorize the
appropriate officials to execute same. The motion was duly
seconded and carried unanimously.
9.2 Approve changes to the Clearwater Gas System utility rates to become effective for all
gas bills and services rendered on or after February 1, 2024 and pass Ordinance
9739-23 on first reading.
Raftelis has completed a Natural Gas Rate Study for the Clearwater Gas
System (CGS). The Study includes a projection of CGS' financial position
through fiscal year 2028 and a cost of service analysis to evaluate the cost
responsibility for each of the various classes of customers served. Based on
the results of the Study, CGS' current revenues are adequate to fund the test
year revenue requirements through fiscal year 2025 and do not recommend
increasing at this time. However, Raftelis has recommended cost allocations
adjustments within the existing rate riders.
Key recommendations in the study and ordinance are:
• Shift the cost of the annual Dividend transfer payment, in the amount of$1.7
million, from the Purchased Gas Adjustment (PGA), Energy Conservation
Adjustment (ECA) and Regulatory Imposition Adjustment (RIA) to the
Non-Fuel energy charge (NFE). Historically the PGA, ECA and RIA have
recovered the costs of the Dividend payment. Raftelis has recommend this
move to the NFE rate class, equating to seven cents per therm.
o Decrease PGA approximately 5.6 cents per therm and increase NFE
by same
o Decrease ECA approximately 0.8 cents per therm and increase NFE
by same
o Decrease RIA approximately 0.6 cents per therm and increase NFE
by same
• Reset the Usage and Inflation (UTA) rate rider to zero cents per therm and
move these costs to the NFE rate, resulting in an increase of five cents per
therm.
• Overall, this results in a 12 cent per therm increase to the NFE rate and a
collective decrease of 12 cents per therm across the above rate riders.
• Make certain wording clarifications in the ordinances to better reflect
operating policies and responsibilities.
• Changes to the Miscellaneous Gas Charges to increase revenue on retail
service functions (i.e., Appliance Repair, Installation of pipe, meter
relocations, etc...)
• No changes to the Propane rates
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CGS will engage a consultant in FY26 to review the rates and decide how to
fund future fiscal years to maintain the minimum 180-day reserve requirement
throughout the five-year forecast period.
STRATEGIC PRIORITY:
This agenda item supports the City of Clearwater Strategic Plan, High
Performing Government, section #1.1,1.2 and 1.4.
Ordinance 9739-23 was presented and read by title only.
Councilmember Beckman moved to approve changes to the
Clearwater Gas System utility rates to become effective for all gas
bills and services rendered on or after February 1, 2024 and pass
Ordinance 9739-23 on first reading. The motion was duly
seconded and upon roll call, the vote was:
Ayes: 5 - Mayor Aungst Sr., Vice Mayor Bunker, Councilmember Allbritton,
Councilmember Beckman and Councilmember Teixeira
9.3 Approve the First Amendment to the Collective Bargaining Agreement as negotiated
between the City of Clearwater and Communication Workers of America, Local 3179
(CWA) for Fiscal Year 2023/2024 and authorize the appropriate officials to execute
same.
The collective bargaining agreement between the City of Clearwater and CWA
covers the period October 1, 2023 through September 30, 2026. In November
2023, the parties mutually agreed to reopen the CBA for the purpose of
discussing the implementation of the Evergreen Solutions Classification and
Compensation Study. The parties reached a tentative agreement on December
5, 2023. The first amendment was ratified by the CWA bargaining unit on
December 7, 2023 by a vote of 311 (yes) to 11 (no).
A summary of the changes are as follows:
All CWA employees will receive a 1.5% general wage increase to base pay.
Employees may also receive a pay adjustment based on a calculation of hybrid
years of service with the City as of January 1, 2024.
The pay adjustment is based on a 25-year parity, meaning the employee is
expected to take 25 years to move from the minimum to the maximum of their
pay range. Midpoint base compensation for CWA employees will now be in the
75th percentile of the market, which is comprised of newly established
comparators.
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Salary adjustments will be capped at $20,000.
Elimination of some types of certification pay.
The changes will be effective on the payroll period that includes January 1,
2024.
APPROPRIATION CODE AND AMOUNT:
Approved at Council Meeting on December 7, 2023.
STRATEGIC PRIORITY:
Superior Public Service. Promote a Diverse and Talented Workforce through
Competitive Opportunity, Employee Wellness, and Rewarding Career Growth.
5.1 Attract and retain top-quality personnel through the maintenance of a
competitive compensation program.
One individual spoke in support and questioned if the agreement was
ratified by the CWA members before or after Council's approval.
Vice Mayor Bunker moved to approve the First Amendment to the
Collective Bargaining Agreement as negotiated between the City
of Clearwater and Communication Workers of America, Local
3179 (CWA) for Fiscal Year 2023/2024 and authorize the
appropriate officials to execute same. The motion was duly
seconded and carried unanimously.
9.4 Approve an agreement between Aquatic Informatics, located in Vancouver, BC, and the
City of Clearwater Public Utilities for the purpose of using Linko software for tracking of
fat, oil, and grease removed from the system's wastewater from January 1, 2024 through
December 31, 2024, in the amount of$21,074.00 and authorize the appropriate officials
to execute same.
City of Clearwater Public Utilities Industrial Pretreatment Program (IPP) uses
software to track Fat, Oil, and Grease from cradle to grave. The Industrial
Pretreatment Program maintains, and tracks compliance of industrial and
commercial customers as required by the Clean Water Act. To fulfill this
requirement, IPP purchases and uses LINKO CTS, LINKO FOG and POM
Portal software applications. This is the only record keeping database currently
used by the IPP.
While this purchase is under the threshold, the vendor is requiring an indemnity
that would require city council approval.
APPROPRIATION CODE AND AMOUNT:
Funds are available in cost code 530300 Other Contractual Services.
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STRATEGIC PRIORITY:
In furtherance of the Council's Strategic Plan to achieve High Performing
Government by maintaining public infrastructure through systematic
management efforts, approval for an agreement is requested. In addition,
utilizing Linko software to track Fats, Oils, and Grease allows for Environmental
Stewardship, Superior Public Service, and Community Well-being.
In response to a concern, the City Attorney said indemnifications come
up when a party is named liable to a third party. For instance, if Aquatic
Informatics was sued by someone else as a result of this contract, the
City would be required to defend and pay costs Aquatic Informatics incurs
in defense of that claim. He said indemnification is a council decision,-
the
ecision,the city attorney or the city manager cannot approve it.
Councilmember Teixeira moved to approve an agreement
between Aquatic Informatics, located in Vancouver, BC, and the
City of Clearwater Public Utilities for the purpose of using Linko
software for tracking of fat, oil, and grease removed from the
system's wastewater from January 1, 2024 through December 31,
2024, in the amount of$21,074.00 and authorize the appropriate
officials to execute same. The motion was duly seconded and
carried unanimously.
9.5 Approve the Air Rights easement grant from the City of Clearwater to the connecting
property owner's Clearmar, LLC, and Triprop Clearwater, LLC, for the development of an
elevated pedestrian bridge linking their respective South Gulfview properties, and to
further provide responsibilities for the development, installation, insurability, and required
maintenance of said aerial pedestrian bridge as located in Clearwater, Florida and
authorize the appropriate officials to execute same.
This aerial bridge development clearly shows the commitment of the City of
Clearwater to enhance and support this property's future development.
Exhibits (A, B, C, D, E) further support and define the affected properties.
A Florida-licensed professional engineer shall conduct required routine
inspections of said bridge.
Said bridge rests per FDOT regulations 17 feet above ground level with
dimensions of 206.79 x 15.59 feet.
City staff has reviewed and approved this request.
STRATEGIC PRIORITY:
1.5 Embrace a culture of innovation that drives continuous improvement and
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successfully serves all our customers.
One individual spoke in support.
Councilmember Allbritton moved to approve the Air Rights
easement grant from the City of Clearwater to the connecting
property owner's Clearmar, LLC, and Triprop Clearwater, LLC,
for the development of an elevated pedestrian bridge linking their
respective South Gulfview properties, and to further provide
responsibilities for the development, installation, insurability, and
required maintenance of said aerial pedestrian bridge as located
in Clearwater, Florida and authorize the appropriate officials to
execute same. The motion was duly seconded and carried
unanimously.
9.6 Amend City Council Policies 2-21, Special Events Fee, and establish City Council Policy
5-9: Taxation of Fringe Benefits Provided to City Employees, Former Employees, and
Elected Officials.
Staff is requesting to amend the following policies as follows:
• Policy 2-21: Special Events Fee.
The Special Events Committee will review applications for use of City beaches,
sidewalks, outdoor recreation open space and rights-of-way. Sponsoring
organizations will be responsible for the costs of all City services needed in
conjunction with the events unless they are City sponsored or co-sponsored
events.
The City Council may waive all or a portion of fees and related charges for City
sponsored or co-sponsored events, including, but not limited to Jazz Holiday,
July 4th, Turkey Trot, and Martin Luther King, Jr. Celebration. There shall be an
annual review of City sponsored/co-sponsored events during the budget
process. An agenda item confirming co-sponsorship and waiver of fees for
those events (greater than $20,000, and a lump sum amount to fund the
"Special Events Assistance Program" for events less than $20,000), to be
submitted in the budget will be brought for City Council consideration and
acceptance by June of each calendar year. All items accepted by the Council
are then to be included in the appropriate department's budget. Only after the
event item is passed as part of the approved budget is the event item
considered to be funded. All city department funding and support for sponsored
or co-sponsored special events will be approved through the special event
process. Soliciting for additional funding or support from individual city
departments outside of this policy will not be allowed.
In the event additional monies are requested beyond what is included in the
approved budget, City Council approval will be needed before said additional
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funds are appropriated.
Staff is requesting to establish Policy 5-9, Taxation of Fringe Benefits Provided
to City Employees, Former Employees, and Elected Officials:
It is a policy of the City Council to report to the Internal Revenue Service, and to
withhold appropriate taxes relating to, benefits provided to employees that are in
the nature of compensation.
The following guidance is provided by to assist City employees and
departments in understanding the tax treatment of various fringe benefits, as
well as the reporting and withholding rules that the City must follow as the
employer. The City cannot give personal tax advice. For specific
concerns/questions relative to an individual tax situation, employees should
consult their personal tax accountant or advisor.
Guidance
In general, a fringe benefit is any property or service that an employee (including
certain independent contractors) receives in lieu of, or in addition to, regular
compensation. Fringe benefits can take many forms and this policy does not
address whether or not a City employee is eligible to receive a particular fringe
benefit. Examples of fringe benefits include (but are not limited to) such items
as gift certificates, tickets to sporting, theater, or recreational events, certain
club memberships, spouse/companion travel, automobiles, housing, meals,
awards or prizes.
References herein to the Internal Revenue Code (IRC) and Treasury
Regulations (Reg.) are provided, along with other IRS guidance that may be
helpful. However, the guidance is not intended to be all-inclusive. For new or
unique situations, please contact fthe Human Resources Officel to ensure that
the appropriate tax treatment is applied. It is the employee's responsibility to
determine his or her obligation to report and pay income taxes.
General Rule Generally, all fringe benefits are taxable, unless excluded by law.
For a fringe benefit to be taxable, it need not be furnished directly to the
employee by the City, as long as the benefit is provided in connection with the
performance of services for the City. A fringe benefit may be taxable to a
person even though the person did not actually receive it. Similarly, a fringe
benefit that is not provided directly by the City, but by a third party will be subject
to tax reporting by the City if the benefit was compensatory in nature or was
provided through an arrangement with the City. For example, tickets provided
directly by a third party through an arrangement with the City are considered
compensation provided by the City.
Amount of Income The amount of income that is taxable to the employee as a
fringe benefit is its fair market value (FMV), rather than the cost to the City or the
relative value to the employee. The FMV is the amount an individual would have
to pay a third party in an arm's-length transaction to buy or lease the benefit.
Tax Withholding and Reporting Taxable fringe benefits for employees will be
reported as taxable wages on IRS Form W-2. Most taxable fringe benefits are
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subject to federal income tax withholding, as well as social security and
Medicare taxes. The tax withholding on fringe benefits may be spread over
multiple pay periods during the tax year. Benefits provided in the last two
months of the year, may have taxation carried into the following year. Taxable
fringe benefits for non-employee independent contractors are not subject to tax
withholding, but may be reportable on IRS Form 1099-MISC.
Compliance with Information Requests Due to the many types and methods of
providing fringe benefits, an important aspect of tax compliance is the tracking
of fringe benefits as they occur. Specific processes may apply to certain fringe
benefits, as discussed separately. Employees are expected to comply with any
procedures or requests for information with respect to the benefit being
provided.
Exclusions from Taxation
Not all fringe benefits are taxable or not taxable in all circumstances. Often, the
nature of the activity, the specific use of the benefit, and the role of the individual
employee determine whether a benefit is taxable or not taxable in a specific
situation. IRC � 132 provides four general provisions that may apply to exclude
fringe benefits from taxation. See below for a brief description of each.
Working Condition Fringe Benefit Exclusion - IRC � 132(d); Reg. � 1.132-5
Working condition fringe benefits are generally defined as any property or
services provided by the City that, if paid by the employee directly, would be
deductible as a trade or business expense under IRC �� 162 or 167. Thus, if
the employee were being asked to attend or expected to attend an event
relevant to his or her role with the City or purchase an item that would otherwise
constitute an ordinary and necessary business expense relating to their position
with the City, then the benefit may be considered a working condition fringe
benefit. This answer may differ based on the role of the employee with the City.
The value of a working condition fringe benefit is excludable from an employee's
income.
To be excludable as a working condition fringe benefit, all of the following must
apply:
• the benefit must relate to the employer's business,
• the employee would have been entitled to an income tax deduction if
expense had been paid personally, and
• the business use must be substantiated with records.
For purposes of the working condition fringe benefit exclusion, the following are
considered "employees": Reg. � 1.132-1(b)(2) and � 1.132-5(r)
• Current employees
• Independent contractors
• Volunteers
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De Minimis Fringe Exclusion - IRC � 132(e); Req. � 1.132-6
A fringe benefit qualifies for exclusion as a de minimis (minimal) fringe benefit if
value and frequency with which the benefit is provided are low enough such that
accounting for the benefit is unreasonable or administratively impractical. The
conceptual basis of the de minimis exclusion is not only that the benefit is small,
but that it is administratively impractical to track. This is why cash or cash
equivalents (e.g., MotivateMe redemption gift cards) of any amount are never
considered a de minimis fringe benefit.
Reg. � 1.132-6 provides the following examples of items that may be excludable
as de minimis, if they are infrequent and not routine, include:
• occasional coffee, soft drinks and snack items furnished to employees
• occasional parties, group meals, or picnics for employees and their guests
• occasional theater or sporting event tickets (not season tickets)
• traditional holiday gifts of property (not cash) with a low fair market value
• flowers, fruit, books, or similar items provided under special circumstances
Reg. � 1.132-6 provides the following examples of fringe benefits that are not
excludable as de minimis:
• season tickets to sporting or theatrical events
• commuting use of an employer-provided automobile more than one day a
month
• membership in a private country club
• use of employer-owned or leased facilities (such as an apartment, hunting
lodge, boat, etc.) for a weekend
• Cash or cash equivalents (gift certificates, gift cards, etc.) do NOT qualify
as de minimis, no matter how small the amount.
For purposes of the de minimis exclusion, the term "employee" means any
recipient of a fringe benefit. Reg. X1.132-1(b)(4)
No-Additional-Cost Service Exclusion - IRC �132(b); Reg. X1.132-2
A free or reduced charge service provided to employees is excludable from
income as a no-additional-cost service if:
• the service is offered for sale to customers in the ordinary course of the
City's business, and
• the City does not incur substantial additional expense, including foregone
revenue, in providing the service to the employee. This means that the service
is being provided at an excess capacity, and the use by an employee does not
displace other customers.
For purposes of the no-additional-cost services exclusion, the term "employee"
includes the following: Reg. §1.132-1(b)(1)
• a current employee
• the employee's spouse
• the employee's dependent child
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City Council Meeting Minutes December 19, 2023
• a former employee who retired or left on disability
• a widow(er) of an individual who died while employed
No-additional-cost benefits made available only to highly compensated
employees are not excludable. Reg. X1.132-8
Qualified Employee Discount Exclusion - IRC �132(c); Reg. X1.132-3
An employee is not required to include in gross income any qualified discount
received from the City on property or services that the City offers for sale to
customers in the ordinary course of business, as long as the discount does not
exceed:
• In the case of services, 20% of the price at which a service is offered to
customers
• In the case of property, the gross profit percentage multiplied by the price at
which property is offered to customers in the ordinary course of business. This
means that the property can't be discounted below cost.
Any excess discount would be treated as taxable income.
For purposes of the qualified employee discount exclusion, the term "employee"
includes the following: Reg. §1.132-1(b)(1)
• a current employee
• the employee's spouse
• the employee's dependent child
• a former employee who retired or left on disability
• a widow(er) of an individual who died while employed
To qualify for exclusion, the discount must not discriminate in favor of highly
compensated employees. Reg. §1.132-3(a)(6)
One individual spoke in support of Policy 5-9.
In response to questions, the City Attorney the policy addressing the
taxation of fringe benefits was suggested by outside counsel and ensures
the City is complying with IRS rules. The City Manager said the policy
regarding special events is a result of several conversations regarding
funding and application process. She said the special events policy
clarifies the application process, making it transparent to interested
parties. Parks and Recreation Director Art Kader said 10% of the
requested budgeted funds will be held each quarter to ensure it is
available for applicants.
Councilmember Beckman moved to amend City Council Policies
2-21, Special Events Fee, and establish City Council Policy 5-9:
Taxation of Fringe Benefits Provided to City Employees, Former
Employees, and Elected Officials. The motion was duly seconded
and carried unanimously.
9.7 Council Discussion of the Use of Shipping Containers On Cleveland Street.
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City Council Meeting Minutes December 19, 2023
City Council directed staff to study the possibility of using shipping containers
on Cleveland Street. The Planning and Development Department conducted
research on the use of shipping containers within public rights-of-way and had
discussions with multiple city departments to determine the feasibility of this
concept. Staff will present the findings of the research, as options for
consideration.
Planning and Development Director Gina Clayton provided a PowerPoint
presentation.
In response to questions, Ms. Clayton said the city charter restricts
commercial development in Coachman Park. The City Attorney said, to
avoid litigation, the installation of parklets or shipping container
should not impede the access to a business owner's property. Ms.
Clayton said if generators are prohibited, the City will have to extend the
electrical and decide who will pay for the electricity.
Discussion ensued with support expressed that future discussions
consider parklet installations. It was suggested that staff investigate
sustainable vending trucks.
Assistant City Manager Michael Delk said staff will come back with
program design, aesthetics, ancillary support options, and program
management. He said he will work with Planning and Development staff
to determine how the next steps can be managed within their existing
work plan.
In response to a suggestion, the City Attorney said the use of CRA funds
are restrictive. CRA funds may be used for fixed real estate
improvements. He said it will be difficult to use CRA funds for mobile
installations. CRA funds could be used to add public restrooms to the
Garden Street parking garage.
The Council recessed from 7:55 p.m. to 8:04 p.m.
10. City Attorney Reports
10.1 Create Council Rule 16 requiring measurable annual goals for the City Manager and City
Attorney and adopt Resolution 23-19.
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City Council Meeting Minutes December 19, 2023
Section 2.01(c)(1) of the City Charter requires the City Council to present a
report on the evaluation of the performance of the City Manager and the
City Attorney each October. However, neither the City Charter nor city
ordinances describe the format in which that report should be made, or the
standards against which that report should be measured, and the lack of
definition tends to produce a system in which individual councilmembers
create individual goals for the City Manager and City Attorney.
Because individual Councilmembers' goals may be incompatible with the
goals of other Councilmembers or require the commitment of time and
resources that other Councilmembers feel are best devoted elsewhere,
and due to Florida's Sunshine Law, individual Councilmembers have no
mechanism to discuss official business with each other and reach
consensus outside of a publicly noticed meeting.
The City's success in accomplishing its strategic objectives depends on a
unity of purpose and consistent strategy, and it is in the City's best interest
to have clear measurable goals for the City Manager and the City Attorney.
STRATEGIC PRIORITY:
This agenda item promotes the strategic priorities of high performing
government and superior public service.
In response to questions, the City Attorney said he could identify SMART
goals but clients make the decision, not attorneys. The City Manager
said the strategic plan is longer than one year but staff is utilizing the plan
to budget annually.
Two individuals spoke in support.
Resolution 23-19 was presented and read by title only.
Councilmember Teixeira moved to create Council Rule 16
requiring measurable annual goals for the City Manager and City
Attorney and adopt Resolution 23-19. The motion was duly
seconded and upon roll call, the vote was:
Ayes: 5 - Mayor Aungst Sr., Vice Mayor Bunker, Councilmember Allbritton,
Councilmember Beckman and Councilmember Teixeira
10.2Adopt Resolution 23-20 regarding PSTA local bill.
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City Council Meeting Minutes December 19, 2023
At a recent Council meeting, Councilmember Allbritton requested a
resolution opposing a local bill that proposes to restructure PSTA's
governing board. A majority of the Council has agreed to consider this
request. As directed, the City Attorney has created a draft resolution for
Council's consideration.
One individual spoke in support.
Resolution 23-20 was presented and read by title only.
Councilmember Allbritton moved to adopt Resolution 23-20
regarding PSTA local bill. The motion was duly seconded and
upon roll call, the vote was:
Ayes: 5 - Mayor Aungst Sr., Vice Mayor Bunker, Councilmember Allbritton,
Councilmember Beckman and Councilmember Teixeira
10.3Downtown Development Board.
Based on feedback from House leadership, the City Attorney is seeking
guidance from the City Council regarding desired next steps in downtown
strategic alignment.
The City Attorney said Florida House of Representatives staff have
opined that the City does not need to pursue the local bill in order to reshape
the Downtown Development Board as the City has the authority to do so
via ordinance. He said Council has three options: 1) direct staff to amend
the Downtown Development Board (DDB) ordinance and appoint the City
Council to serve as the DDB or appoint private citizens to serve as the
DDB, 2) continue working with the DDB; no changes implemented, or 3)
divorce the CRA and direct CRA staff to stop participating with the DDB,
effective at the expiration of the current interlocal agreement.
The City Attorney said there may be risk of litigation if Option 1 is
pursued. In Option 3, the tax increment refunded by the CRA to the DDB
would no longer be refunded. He said the use of CRA funds are more
restrictive than DDB funds and certain current items would not be funded
if the City pursues Option 3.
Four individuals spoke in support of restructuring the DDB.
One individual spoke in opposition.
Discussion ensued with support expressed to pursue Option 1.
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City Council Meeting Minutes December 19, 2023
Councilmember Teixeira move to direct staff to amend the ordinance to
empower the City Council to sit as the DDB or appoint members of the
public. The motion was duly seconded and carried unanimously.
10.4Approve agreement and pre-construction phase proposal for Construction Manager at
Risk (CMAR) services with Ajax Building Company, LLC of Midway, FL, for the City Hall
and MSB Renovation Project (22-0019-EN) in the amount of$379,965.00 pursuant to
Request for Qualifications (RFQ) 59-23 and authorize the appropriate officials to execute
same.
With an aging City Hall, constructed in 1964, and a city that has changed
considerably since 1964, the City has been investigating the need for upgraded
infrastructure. The need has become more pressing in recent years, as
asbestos and structural challenges forced the City to vacate the old City Hall.
The building has since been demolished, and the site is slated for private
redevelopment.
In September 2022, pursuant to RFQ 24-22, the City Council approved
Wannemacher Jensen Architects (WJA) to design a new facility. In June 2023,
WJA presented the City Council with three options. The Council unanimously
selected the site plan that combines a renovation of the City's existing municipal
services building (MSB) with a new building located on the city-owned parcel
immediately south of MSB. WJA referred to this site plan as Option #2. This
site plan is estimated to save approximately $31 million compared with the cost
of a new stand-alone facility that would have replaced the MSB.
On November 16, 2023, Council approved Broaddus and Associates to provide
Owner's Representative services on the project. Broaddus is currently assisting
with the CMAR agreement negotiations and progression of city hall design
documents and stakeholder feedback.
Following a robust and competitive procurement process (RFQ59-23), staff
recommends that the Council approve Ajax Building Company (AJAX) as the
CMAR for this project due to their experience delivering successful projects with
the City of Clearwater, their superior qualifications, and overall project
understanding, cost control, and management. AJAX brings extensive
experience delivering projects within the City of Clearwater spanning the full
lifecycle of construction - starting with site evaluations and preconstruction
through commissioning, close-out, and warranty. They are committed to
streamlining the decision-making process, maintaining transparency, and
efficiently resolving any conflicts that may arise during design and construction.
The City is working with WJA on design and anticipates approximately 18
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City Council Meeting Minutes December 19, 2023
months of construction with anticipated design completed by May 2024 and
construction completed by Q3 of 2026. The team anticipates successfully
negotiating multiple Guaranteed Maximum Prices (GMPs) with Ajax for various
phases of the project. The first GMPs will be presented to Council for approval
by early March.
APPROPRIATION CODE AND AMOUNT:
ENGF220001-CONS-PROSVC $269,360
ENGF230001-CONS-PROSVC $110,605
Funds are available in capital improvement projects in amounts of$269,360
ENGF220001, City Hall, and $110,605 ENGF230001, Municipal Services
Building Renovations to fund the proposal.
STRATEGIC PRIORITY:
To further Council's Strategic Plan to achieve High Performing Government,
Environmental Stewardship and Superior Public Service with the design and
construction of a LEED certified innovative facility, creating a campus where the
City will provide efficient services to its residents and the public.
Councilmember Allbritton moved to approve agreement and
pre-construction phase proposal for Construction Manager at
Risk (CMAR) services with Ajax Building Company, LLC of Midway, FL,
for the City Hall and MSB Renovation Project (22-0019-EN) in the
amount of$379,965.00 pursuant to Request for Qualifications (RFQ)
59-23 and authorize the appropriate officials to execute same. The
motion was duly seconded and carried unanimously.
11. Other Council Action
11.1 Discuss public use of The Landings - Councilmember Beckman
Councilmember Beckman said she requested the discussion item
because she was concerned that the zoning for The Landings could be
changed without referendum.
The City Attorney said the city charter allows the City to rezone the
property, which would require the City to go through the full rezoning
process, in a way that would allow the City, for its own use, to utilize the
property for a municipal complex or building. The city charter says the
City cannot sell, lease, or transfer any Open Space/Recreation zoned
land without approval via a referendum. He said if the City Council wants
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to rezone a property, the City would need to go through the rezoning
process and the rezoning will need to be consistent with the
comprehensive plan.
Assistant City Manager Daniel Slaughter said the golf course is
interested in making some capital improvements only if the lease is
extended 30 years. Staff is in the beginning phases and researching what is
possible on the property. The City Manager said staff will come back to
Council when the idea it has been fully vetted.
12. Closing comments by Councilmembers (limited to 3 minutes)
Councilmember Allbritton reported some noteworthy accomplishments from
Forward Pinellas. He wished all a Merry Christmas and safe holiday.
Councilmember Teixeira wished all a Merry Christmas, Happy Holidays, and
a prosperous new year.
Vice Mayor Bunker said it is a busy time of year for everyone and it has been
a delight to attend so many holiday events. He wished all a Happy Holidays.
Councilmember Beckman thanked staff, CRA and the neighborhood partners
for all the holiday activities. She requested Council to consider an ordinance
requiring developers to have rain gardens or rain mitigation on their
properties.
13. Closing Comments by Mayor
The Mayor said it was a great year and everyone came through some
obstacles and hurdles. He said it has been a pleasure to serve with Council
and work with staff. He wished all a Merry Christman, Happy Holidays and a
prosperous new year.
14. Adjourn
The meeting adjourned at 9:43 p.m.
City of Clearwater