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01/29/2024Monday, January 29, 2024 1:30 PM City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Main Library - Council Chambers Council Work Session Work Session Agenda January 29, 2024Council Work Session Work Session Agenda 1. Call to Order 2. City Manager Approve the City Manager’s recommendation to reorganize the Office of Innovation, to discontinue that Department and to establish a General Services Department; pursuant to City Charter Section 3.03 (b) of the City Charter. (consent) 2.1 3. Public Works Ratify and confirm a $20,000.00 increase for December 2023 services, approve a $188,000.00 increase to the existing service agreement with ParkMobile, LLC. of Atlanta, GA, for pay by cell phone technology, for a revised not-to-exceed amount of $724,000.00 and authorize the appropriate officials to execute same. (consent). 3.1 4. Fire Department Approve the Federally Funded Subaward and Grant Agreement for public assistance support for Hurricane Idalia expenditures and grant authority to the City Manager or designee to enter into, approve, and execute same and any future modifications for Hurricane Idalia expenditures. (consent) 4.1 5. Public Utilities Award a Construction Contract to C and T Contracting Services, LLC of Tampa, FL, for the East Water Reclamation Facility (WRF) Influent Pump Station Rehabilitation Project in the amount of $2,840,530.00 pursuant to Invitation to Bid (ITB) No.13-0016-UT; approve Supplemental Work Order 5 to Ardurra Group, Inc of Tampa, FL for Construction Engineering Services in the amount of $431,536.00, increasing the work order from $392,575.00 to $824,111.00; and authorize the appropriate officials to execute same. (consent) 5.1 6. Solid Waste Page 2 City of Clearwater Printed on 1/23/2024 January 29, 2024Council Work Session Work Session Agenda Declare list of vehicles and equipment surplus and authorize disposal through auction pursuant to Clearwater Code of Ordinances Section 2.623(6) and (8) and authorize the appropriate officials to execute same. (consent) SUMMARY: On August 4, 2022, Council approved the Vehicle Replacement List for fiscal year 2023. Additionally on August 17, 2023 Council approved the Vehicle Replacement List for fiscal year 2024 authorizing purchase of replacement vehicles and equipment. This agenda item is requesting Council to declare surplus the vehicles and equipment detailed to be replaced per the list and authorize disposal via auction through Tampa Machinery Auction of Tampa, FL pursuant to Section 2.623(6) and (8). Tampa Machinery Auction was competitively solicited by Pinellas County under Contract NO. 190-0534-R(JJ) valid through November 17, 2027. These vehicles and equipment have reached the end of their useful and economic life. Factors used to determine the end of useful and economic life include, but are not limited to: age, life to date, mileage/hours of operations, historical maintenance cost as compared to like vehicles, operating cost per mile/hour, anticipated and ongoing repairs, and physical condition. Additionally, Fleet will continue to bring forward agenda items for vehicles and equipment from the 2022/23 and 2023/24 Vehicle Replacement Lists as their replacements are deemed road ready. APPROPRIATION CODE AND AMOUNT: N/A STRATEGIC PRIORITY: 1.2 Maintain public infrastructure, mobility systems, natural lands, environmental resources, and historic features through systematic management efforts. 6.1 7. City Attorney Revise the structure of the Downtown Development Board and pass Ordinance 9744-24 on first reading. 7.1 Update to Council Policies relating to use of stationery.7.2 Authorize the City Attorney to retain the law firm of Luke Charles Lirot, PA to represent the City in multiple code violation cases, City of Clearwater v. Nicholas Bosstick, Case No. 23-11058-MO et seq., relating to Mr. Bosstick’s violations of Section 28.10, Code of Ordinances, as enforced pursuant to Section 1.12, Code of Ordinances, in an initial amount not to exceed $4,000.00, approve the Legal Consultation Services Contract, and authorize the appropriate officials to execute same. (consent) 7.3 Page 3 City of Clearwater Printed on 1/23/2024 January 29, 2024Council Work Session Work Session Agenda Approve amended purchase and sale agreement with Gotham Property Acquisitions, LLC, and The DeNunzio Group, LLC and authorize the appropriate officials to execute same. (consent) 7.4 Adopt Ordinance 9716-23 on second reading, amending the Operating Budget for the fiscal year ending September 30, 2023 to reflect increases and decreases in revenues and expenditures for the General Fund, Special Development Fund, Special Program Fund, and Parking Fund. 7.5 Adopt Ordinance 9717-23 on second reading, amending the Capital Improvement Budget for the fiscal year ending September 30, 2023, to reflect an increase of $17,825,168. 7.6 Adopt Ordinance 9739-23 on second reading, amending the Code of Ordinances, Chapter 32, Utilities, Article VIII, Gas, providing for the use of subcontractors in the fulfillment of gas services, Amending Appendix A, Schedule of Fees, Rates and Charges, Section XXV, Clearwater Gas System Fees, Rates and Charges, to revise rates in accordance with the 2023 Cost of Service and Rate Study. 7.7 Adopt Ordinance 9740-24 on second reading amending the Community Development Code Article 3, Development Standards, Parking and Loading Division, Article 4. Development Review and Other Procedures, General Procedures division, Appendix B., US 19 Zoning District and Development Standards, General Provisions, Subdistrict Standards, Site Design Standards, Building Design Standards, and Administration Division, Appendix C., Downtown District and Development Standards, Character District Standards, Frontage Standards, Site Design Standards, Building Design Standards, Flexibility, and Administration divisions. 7.8 Adopt Ordinance 9741-24 on second reading, amending Code of Ordinances Chapter 33, Waterways and Vessels by amending Article I - In General, Article II - City Owned Docking Facilities, and Article III - Vessels, to clarify, revise and modify existing articles and sections; amending Section 33.026 establishing a civil penalty for unpermitted commercial activity in a city owned marine facility and establishing citation procedures. 7.9 8. City Manager Verbal Reports Discuss March 21, 2024 and May 3, 2024 council meetings.8.1 9. City Attorney Verbal Reports 10. Council Discussion Item Continuum of Care Update - Councilmember Beckman10.1 Page 4 City of Clearwater Printed on 1/23/2024 January 29, 2024Council Work Session Work Session Agenda 11. 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). 12. Closing Comments by Mayor 13. Adjourn 14. Presentation(s) for Council Meeting Clearwater Lawn Bowling Day: February 17, 2024 - Ellen O'Donnell, Clearwater Lawn Bowls Club President, and Dick Judycky, Vice President. 14.1 Page 5 City of Clearwater Printed on 1/23/2024 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0090 Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: City Manager's Office Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the City Manager’s recommendation to reorganize the Office of Innovation, to discontinue that Department and to establish a General Services Department; pursuant to City Charter Section 3.03 (b) of the City Charter. (consent) SUMMARY: The City Manager has completed a review of the organization and identified several changes to the organizational structure. Included in this reorganization is the discontinuing of the Office of Innovation, and the creation of a General Services Department. Although the Office of Innovation will be eliminated, all organizational components will remain but be reassigned. The Sustainability Division will become an organizational component in the Public Works Department. The Neighborhoods Division will report directly to the Office of the City Manager. General Services will become an individual department. Information Technology will remain a department and report to the City Manager. The City Manager has provided the new city organizational chart, there are no additional positions being requested at this time as a result of this reorganization. These movements will improve efficiency and productivity. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A STRATEGIC PRIORITY: High Performing Government, Community Wellbeing, Environmental Stewardship and Superior Public Service Page 1 City of Clearwater Printed on 1/23/2024 I. Establishment The City of Clearwater is establishing reloca�on/repor�ng changes to Neighborhood Services, the Sustainability Division, Informa�on Technology and General Services. II. Purpose To deliver effec�ve and efficient government services to the community III. Func�ons The City of Clearwater is reloca�ng the following divisions: 1. Neighborhood Services from Strategic Services & Innova�on to the City Manager’s Office 2. The Sustainability Division from Strategic Services & Innova�on to Public Works/Engineering 3. Informa�on Technology will be repor�ng to the City Manager’s Office 4. General Services will be repor�ng to Assistant City Manager Daniel Slaughter City Manager’s Office Jennifer Poirrier Public Works /Engineering Asst. City Manager Daniel Slaughter General Services Informa�on Technology Neighborhood Services Sustainability Division City Manager Jennifer Poirrier City Council City Attorney David Margolis Asst. City Manager Michael Delk Comm. Redev. Agency Jesus Niño Clearwater Gas Brian Langille Economic Development & Housing Denise Sanderson Public Works Marcus Williamson Library Jennifer Obermaier Parks &Recreation Art Kader Planning & Development Gina Clayton City Clerk Rosemarie Call Finance Jay Ravins Budget Kayleen Kastel Human Resources Tiffany Makras Fire Scott Ehlers Police Eric Gandy Asst. City Manager Daniel Slaughter Public Utilities Richard Gardner Solid Waste Kervin St. Aimie Marine & Aviation Michael MacDonald City of Clearwater Organizational Chart PublicCommunications Joelle Castelli UPDATED 01/24 General Services Peter Bardou Information Technology Dan Mayer Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#23-1622 Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Public Works Agenda Number: 3.1 SUBJECT/RECOMMENDATION: Ratify and confirm a $20,000.00 increase for December 2023 services, approve a $188,000.00 increase to the existing service agreement with ParkMobile, LLC. of Atlanta, GA, for pay by cell phone technology, for a revised not-to-exceed amount of $724,000.00 and authorize the appropriate officials to execute same. (consent). SUMMARY: For the previous six years, Clearwater has contracted with ParkMobile to provide pay by cell phone technology allowing users of City controlled parking spaces to pay for parking with their mobile device. On February 16, 2023, City Council approved the current agreement with ParkMobile in the amount of $500,000.00 for pay by cell phone technology, piggybacking off of the National Cooperative Purchasing Alliance (NCPA) contract # 05-50. The contractual fee for this service is $0.40 per transaction, which is passed on to the consumer. The City collects these funds, along with the hourly parking rate and reimburses the transaction fees to ParkMobile monthly. The Parking Division estimated service fees of $167,000.00 annually however the number of transactions throughout the City have exceeded estimates due in part to the opening of Coachman Park. On December 19, 2023, the City Manager approved an administrative change order in the amount of $16,000.00 for November 2023 fees bringing the amount to $516,000.00. The requested $20,000.00 ratify and confirm portion will cover December 2023 services and the remaining $188,000.00 will cover the increased transactions estimate through 2025. APPROPRIATION CODE AND AMOUNT: 4351333-530300 $208,000.00 Funds are available in cost code 4351333-530300, Parking System Contractual Services, in the amount of $160,000.00 for Fiscal Year 2024 Increase and $48,000.00 increase will be budgeted in Fiscal Year 2025 to fund this contract. STRATEGIC PRIORITY: 1.2- Maintains public mobility system through systematic management effort of in-demand parking. 1.3- Adds responsive level of service for public amenities through digitizing parking transactions. 1.5- Use of technology embraces innovation and improvement. 4.4 - Adds to transportation network that reduces greenhouse gas emissions via fast and efficient parking. Page 1 City of Clearwater Printed on 1/23/2024 ParkMobile Service Agreement PSA-LF Page 1 of 12 rev. 09/22 This ParkMobile Service Agreement (“Agreement”) is made by and between Parkmobile, LLC, a Delaware limited liability company, with offices at 1100 Spring St. NW, Ste 200, Atlanta, GA 30309 (“ParkMobile”) and City of Clearwater, a Florida municipality, with offices at 100 S. Myrtle Ave, Second Floor, Clearwater, FL 33756 (“Client”). This Agreement will become effective as of the last signature date below (the “Effective Date”). In consideration of the mutual covenants and agreements set forth in this Agreement, the parties agree as follows: PARTY CONTACTS Client ParkMobile Legal Name: City of Clearwater Legal Name: Parkmobile, LLC Contact: Sales Rep: John Blanton Email: Email: john.blanton@parkmobile.io Phone: Phone: 404-452-1506 Address: Address: City of Clearwater 100 S. Myrtle Ave, Second Floor Clearwater, FL 33756 Parkmobile, LLC 1100 Spring St. NW Ste 200 Atlanta, GA 30309 For legal notices: with a copy to ParkMobile’s Legal Department at the above address and to legal-notices@parkmobile.io. SERVICE TERMS Services ParkMobile will provide Client with the Services related to the following types of parking transactions: On-Demand, Reservations Initial Term Beginning on the Effective Date and continuing until December 31, 2023 Renewal .This Agreement may be renewed for up to two (2) additional successive one (1) year terms (each a "Renewal Term" and, collectively, together with the Initial Term, the "Term") by mutual written agreement of the parties. Termination Either party may terminate this Agreement effective immediately on written notice to the other party, if the breaching party materially breaches this Agreement, and such breach: (i) is incapable of cure; or (ii) being capable of cure, remains uncured thirty (30) days after the non- breaching party provides the breaching party with written notice of such breach. Merchant of Record The parties designate Client as the merchant of record. Client is responsible for the payment of payment processing and related fees. ParkMobile will pass real-time authorized debit/credit card transactions to Client's processing partner via a gateway solution. ParkMobile will issue invoices to Client on a monthly basis for all fees due to ParkMobile under this Agreement. Client shall pay each invoice within thirty (30) days of the invoice date. ParkMobile Service Agreement PSA-LF Page 2 of 12 rev. 09/22 Parking Locations The Services will be provided to Client in the following locations / geographical territory: All Client locations Signage Client will receive one free welcome kit that includes the aluminum signs and/or decal stickers necessary to complete implementation (installation not included). All signage included in the welcome kit is designed using ParkMobile's standard signage templates. Custom signage may be made available to Client for purchase at ParkMobile's current signage rates. Any requested changes to ParkMobile's standard signage templates will be treated as custom signage. Additional and/or replacement signage may be purchased by Client at ParkMobile's then- current signage rates. Installation and maintenance of all signage is Client's sole responsibility. Governing Law State of Florida Schedules This Agreement incorporates the following Schedules: Schedule 1: Client General Terms and Conditions; Schedule 2: Services; Schedule 3: NCPA Pricing IMPLEMENTATION FEES Description Units Rate Price Implementation Fee 0 $1,000.00 $0.00 Custom Development 0 $165.00/hr $0.00 Total Implementation Fees: $0.00 ADDITIONAL FEES Call Center & Customer Support WAIVED Client Support & Maintenance WAIVED Hosting WAIVED Enforcement Portal WAIVED Reporting Portal WAIVED Marketing & Advertising WAIVED USER FEES On-Demand User Fee for Qualified Residents $0.00 per transaction On-Demand User Fee for all others $0.40 per transaction Reservation User Fee for Qualified Residents 0% of parking fee Reservation User Fee for all others 13% of parking fee “No-Charge” Reservation Service Fee for Qualified Residents $0.00 per no-charge reservation “No-Charge” Reservation Service Fee for all others $0.50 per no-charge reservation ParkMobile Service Agreement PSA-LF Page 3 of 12 rev. 09/22 “Qualified Residents” means those City of Clearwater residents who have registered for the residential discount permit program through the City. The parties have executed this Agreement as of the Effective Date. PARKMOBILE, LLC By: $docusign:SignHere::InternalSigner1 Name: $docusign:FullName::InternalSigner1 Title: $docusign:Title::InternalSigner1 Date: $docusign:DateSigned::InternalSigner1 Countersigned: CITY OF CLEARWATER, FLORIDA, A Florida municipal corporation. ___________________________ By: __________________________ Frank V. Hibbard Jennifer Poirrier Mayor Interim City Manager Approved as to form: Attest: ___________________________ ________________________________ Matthew J. Mytych, Esq. Rosemarie Call Assistant City Attorney City Clerk ParkMobile Service Agreement PSA-LF Page 4 of 12 rev. 09/22 SCHEDULE 1: CLIENT GENERAL TERMS & CONDITIONS 1. SERVICES 1.1 General. During the term, ParkMobile will provide the Services to Client in accordance with the terms and conditions of this Agreement. 1.2 Launch Date. The parties will mutually agree upon the launch date for the Services. 1.3 ParkMobile Application. On and after the launch date, Client’s Parking Locations, along with associated Parking Information, will be made available to the general public through the ParkMobile Application. 1.4 Parking Management Services. Subject to the license granted in Section 2, Client will be provided access to the Platform to manage Client’s Parking Locations and associated Parking Information. 1.5 Parking Locations. The parties agree that ParkMobile does not own, operate, manage, or maintain any Parking Location. Client agrees that ParkMobile is not responsible for the condition or operation of any Parking Location, including, but not limited to, the operation of third-party hardware and/or software-based solutions used by Client at the Parking Location or for the delivery and/or fulfillment of parking or other services at the Parking Location. 1.6 Publicity of Services. Each party will use commercially reasonable efforts to market the Services throughout the Term. All brochures and promotional material to be distributed by Client will be in a form mutually agreed upon by the parties, which will not be unreasonably withheld or delayed. 1.7 Exclusivity. Throughout the term, the parties agree that ParkMobile will be the exclusive provider of electronic payment parking services for Client. 1.8 PCI DSS. ParkMobile has obtained, and will continue to maintain throughout the term, Payment Card Industry – Data Security Standard (PCI DSS) certification. 1.9 Online Client General Terms & Conditions. The parties agree that this Agreement supersedes the Client General Terms and Conditions that is publicly available at https://parkmobile.io/client-terms with respect to the Services provided under this Agreement. 2. ACCESS & USE OF PLATFORM 2.1 Provision of Access. Subject to and conditioned on Client's and its Authorized Users' compliance with the terms and conditions of this Agreement, all applicable laws and regulations, and Client’s payment of fees, ParkMobile grants Client a non-exclusive, non-transferable right to access and use the Platform during the Term. Such use is limited to Client’s internal use. ParkMobile will provide Client the Access Credentials within a reasonable time following the Effective Date. 2.2 Documentation License. ParkMobile hereby grants to Client a non-exclusive, non-sublicensable, non-transferable license to use the Documentation during the Term solely for Client's internal business purposes in connection with its use of the Services. 2.3 Use Restrictions. Client will not, directly or indirectly, and will not permit any third party to, access or use the Platform except as expressly permitted by this Agreement. For purposes of clarity and without limiting the generality of the foregoing, Client shall not, except as this Agreement expressly permits: (a) copy, modify, or create derivative works of the Platform or Documentation, in whole or in part; (b) rent, lease, copy, lend, sell, sublicense, assign, distribute, publish, transfer, or otherwise make available the Platform or Documentation to any person or entity; (c) reverse engineer, disassemble, decompile, decode, adapt, or otherwise attempt to derive or gain access to any software component of the Platform, in whole or in part; (d) bypass or breach any security device or protection used by the Platform or access or use the Platform other than by an Authorized User through the use of his or her own then valid Access Credentials; (e) remove any proprietary notices from the Platform or Documentation; (f) use the Platform or Documentation in any manner or for any purpose that infringes, misappropriates, or otherwise violates any IP Right or other right of any person, or that violates any applicable law; (g) upload invalid data, malware, or other software agents through the Platform; or (h) use the Platform for any purpose beyond the scope of the access granted in this Agreement. 2.4 Reservation of Rights. Nothing in this Agreement grants any right, title, or interest in or to (including any license under) any IP Rights in or relating to, the Services, whether expressly, by implication, estoppel, or otherwise. All right, title, and interest in and to the Services are and will remain with ParkMobile. 2.5 Changes. ParkMobile reserves the right, in its sole discretion, to make any changes to the Services that it deems necessary or useful to: (a) maintain or enhance: (i) the quality or delivery of ParkMobile's services to its customers; (ii) the competitive strength of or market for ParkMobile's services; or (iii) the Services' cost efficiency or performance; or (b) to comply with applicable law. 2.6 Suspension or Termination of Services. Notwithstanding anything to the contrary in this Agreement, ParkMobile may suspend, terminate, or otherwise Client’s, any Authorized User’s, or any other person’s access to or use of all or any part of the Services, without incurring any resulting obligation or liability, if: (a) ParkMobile receives a judicial or other governmental demand or order, subpoena, or law enforcement request that expressly or by reasonable implication requires ParkMobile to do so; or (b) ParkMobile believes, in its good faith and sole discretion, that (i) Client or any Authorized User has failed to comply with any material term of this Agreement, or accessed or used the Services beyond the scope of the rights granted or for a purpose not authorized under this Agreement; (ii) Client or any Authorized User is, has been, or is likely to be using the Services for fraudulent, misleading, or unlawful activities; (iii) there is a threat or attack on any of the Services; (iv) ParkMobile Service Agreement PSA-LF Page 5 of 12 rev. 09/22 Client’s or any Authorized User’s use of the Services disrupts or poses a security risk to ParkMobile or to any other client, end user, vendor or partner of ParkMobile; or (v) this Agreement expires or is terminated. This Section does not limit any of ParkMobile's other rights or remedies, whether at law, in equity, or under this Agreement. 3. CLIENT RESPONSIBILITIES 3.1 Use of Platform Account. Client is responsible and liable for all uses of the Platform resulting from access provided by Client, directly or indirectly, whether such access or use is permitted by or in violation of this Agreement. Client must notify ParkMobile immediately of any breach of security or unauthorized use of Client’s account. 3.2 Parking Information. Client is responsible for setting all rates, zones, and other required information regarding its Parking Locations offered through the ParkMobile Application and for keeping such information up to date within the Platform. 3.3 Effect of Client Failure or Delay. ParkMobile is not responsible or liable for any delay or failure of performance caused in whole or in part by Client's delay in performing, or failure to perform, any of its obligations under this Agreement. 4. SERVICE AND SUPPORT 4.1 Scheduled Maintenance. ParkMobile will use commercially reasonable efforts to schedule downtime for routine maintenance of the Services between the hours of 12:00 a.m. and 4:00 a.m., Eastern Time; however, ParkMobile may modify this window from time-to-time by providing Client with advance notice. If ParkMobile anticipates that it will need to perform maintenance activities that are likely to be disruptive to the use of the Services outside of the scheduled maintenance window, ParkMobile will use commercially reasonable efforts to give Client at least 24 hours prior notice. Notwithstanding the foregoing, ParkMobile reserves the right to perform any required emergency maintenance work outside of the scheduled maintenance window. To the extent practicable, ParkMobile will use commercially reasonable efforts to notify Client before commencing any emergency maintenance outside of the scheduled maintenance window and will use commercially reasonable efforts to limit or avoid impact to use of the Services. 4.2 Client Support. ParkMobile will use commercially reasonable efforts to assist Client with any technical support that Client may reasonably require in using the Services. ParkMobile will provide technical support for rate and configuration changes to Client Monday – Friday (excluding holidays) between the hours of 8:00 a.m. and 6:00 p.m. (ET). For issues relating to On-Demand Parking Services, Client may submit a support request via email to support@parkmobile.io. For issues relating to Reservation Parking Services, Client may submit a support request via email to prs@parkmobile.io. ParkMobile will provide Client with emergency technical support 24 hours a day, seven days a week, 365 days a year. In the event of an emergency involving technical and/or system availability issues, Client may contact the on-call engineer via email to applicationsupport@parkmobile.io. 4.3 End-User Support. ParkMobile will provide customer support for ParkMobile Users 24 hours a day, seven days a week, 365 days a year. There are multiple methods that ParkMobile Users can access customer support, such as: ParkMobile’s online ticketing system, in-app chat feature, and toll-free phone number. 5. CONFIDENTIAL INFORMATION 5.1 General. Neither party will disclose the other party’s Confidential Information except to its employees, affiliates, agents, or professional advisors (“Representatives”) who need to know it and who have a legal obligation to keep it confidential. The receiving party will use the disclosing party’s Confidential Information only to exercise rights and fulfill obligations under this Agreement. The receiving party will ensure that its Representatives are also subject to the same non-disclosure and use obligations. The receiving party may disclose the other party's Confidential Information when required by law after giving reasonable notice to the disclosing party, if permitted by law. 5.2 Personal Data. In the event a party discloses Personal Data to the other party, the receiving party will have the right to use the Personal Data only as required and necessary to perform its obligations under this Agreement. 6. INTELLECTUAL PROPERTY OWNERSHIP 6.1 Client Data. Client Data remains the sole and exclusive property of Client. Client grants ParkMobile a perpetual, irrevocable, royalty-free license to use Client Data in connection with the Services. 6.2 Client Brand Features. Client grants to ParkMobile a nonexclusive, nonsublicensable, nontransferable, royalty free license during the term to display Client’s Brand Features in connection with providing and/or marketing the Services. ParkMobile will not make any use of Client’s Brand Features in a manner that dilutes, tarnishes or blurs the value of such Brand Features. 6.3 ParkMobile IP. Client acknowledges that, as between Client and ParkMobile, ParkMobile owns all right, title, and interest, including all IP Rights, in and to the Services, including but not limited to the ParkMobile Application and the Platform. 6.4 ParkMobile Brand Features. ParkMobile grants to Client a nonexclusive, nonsublicensable, nontransferable, royalty free license during the term to display ParkMobile’s Brand Features in connection with the Services, subject to ParkMobile’s Brand Guidelines available at https://parkmobile.io/company/parkmobile-media- assets/logos/. Client will not make any use of ParkMobile’s Brand Features in a manner that dilutes, tarnishes or blurs the value of such Brand Features. 6.5 ParkMobile User Data. ParkMobile User Data remains the sole and exclusive property of ParkMobile. ParkMobile may sublicense certain ParkMobile User Data to Client upon Client’s execution of ParkMobile’s Data Protection Agreement. Client will not, directly or indirectly: (i) sell or resell ParkMobile User Data in any capacity or form; (ii) create any derivative work using ParkMobile User Data; or (iii) use ParkMobile User Data for purposes other than ParkMobile Service Agreement PSA-LF Page 6 of 12 rev. 09/22 those specifically allowed in this Agreement. Notwithstanding the foregoing, the parties acknowledge and agree that ParkMobile will not sublicense or provide any PCI Data to Client. 6.6 Resultant Data. Resultant Data remains the sole and exclusive property of ParkMobile. ParkMobile grants Client a revocable, royalty-free, non-exclusive, non-assignable, non-transferable license to applicable Resultant Data for the duration of the term only for Client’s internal use in connection with the Services. 6.7 Reservation of Rights. ParkMobile reserves all rights not expressly granted to Client in this Agreement. Except for the limited rights and licenses expressly granted under this Agreement, nothing in this Agreement grants, by implication, waiver, estoppel, or otherwise, to Client or any third party any IP Rights or other right, title, or interest in or to the ParkMobile Application and/or the Platform. 7. FEES AND PAYMENT 7.1 Fees. Client shall pay ParkMobile the fees set forth in the Agreement that incorporates these Client General Terms & Conditions ("Fees") in accordance with this Section 7. 7.2 Payment Terms. The parties designate Client as the merchant of record. Client is responsible for the payment of payment processing and related fees. ParkMobile will pass real-time authorized debit/credit card transactions to Client via a gateway solution. ParkMobile will issue invoices to Client on a monthly basis for all fees due to ParkMobile under this Agreement. Client shall pay each invoice within thirty (30) days of the invoice date. Client shall make all payments hereunder in US dollars to the address or account specified on the applicable invoice. 7.3 Taxes. All fees and other amounts payable by Client under this Agreement are exclusive of taxes and similar assessments. Without limiting the foregoing, Client is responsible for all sales, use, and excise taxes, and any other similar taxes, duties, and charges of any kind imposed by any federal, state, or local governmental or regulatory authority on any amounts payable by Client hereunder, other than any taxes imposed on ParkMobile’s income. 7.4 Late Payment. If Client fails to make any payment when due then, in addition to all other remedies that may be available: (a) ParkMobile may charge interest on the past due amount at the rate of 1.5% per month calculated daily and compounded monthly or, if lower, the highest rate permitted under applicable law; (b) Client shall reimburse ParkMobile for all costs incurred by ParkMobile in collecting any late payments or interest, including attorneys' fees, court costs, and collection agency fees; and (c) if such failure continues for thirty (30) days following written notice thereof, ParkMobile may suspend performance of the Services until all past due amounts and interest thereon have been paid, without incurring any obligation or liability to Client or any other person by reason of such suspension. 7.5 No Deductions or Setoffs. All amounts payable to ParkMobile under this Agreement shall be paid by Client to ParkMobile in full without any setoff, recoupment, counterclaim, deduction, debit, or withholding for any reason (other than any deduction or withholding of tax as may be required by applicable law). 7.6 Fee Increases. ParkMobile may increase Fees for any contract year, by providing Client at least sixty (60) calendar days written notice. 7.7 Reserved. 8. REPRESENTATIONS AND WARRANTIES 8.1 Mutual. Each party represents, warrants and covenants to the other party that: (a) it is duly organized, validly existing, and in good standing as a corporation or other legal entity under the laws of the jurisdiction of its incorporation or other organization; (b) it has the full right, power, and authority to enter into and perform its obligations and grant the rights, licenses, consents, and authorizations it grants or is required to grant under this Agreement; (c) the representative that is executing this Agreement has been duly authorized by all necessary corporate or organizational action of such party; and (d) when executed and delivered by both parties, this Agreement will constitute the legal, valid, and binding obligation of such party, enforceable against such party in accordance with its terms. 8.2 ParkMobile. ParkMobile represents, warrants, and covenants to Client that ParkMobile will perform the Services using personnel of required skill, experience, and qualifications and in a professional and workmanlike manner in accordance with generally recognized industry standards for similar services and will devote adequate resources to meet its obligations under this Agreement. 8.3 Disclaimers. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN SECTION 8.1 AND SECTION 8.2, ALL SERVICES ARE PROVIDED “AS IS.” PARKMOBILE SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON- INFRINGEMENT, AND ALL WARRANTIES ARISING FROM COURSE OF DEALING, USAGE, OR TRADE PRACTICE. WITHOUT LIMITING THE FOREGOING, PARKMOBILE DOES NOT WARRANT THAT THE SERVICES OR ANY PRODUCTS OR RESULTS OF THE USE THEREOF WILL BE UNINTERRUPTED OR ERROR- FREE. PARKMOBILE SHALL NOT BE LIABLE FOR DELAYS, INTERRUPTIONS, SERVICE FAILURES, OR OTHER PROBLEMS INHERENT IN USE OF THE INTERNET AND ELECTRONIC COMMUNICATIONS. 9. INDEMNIFICATION 9.1 Mutual. Subject to the limitations of Section 768.28, Florida Statutes, each party will indemnify, defend, and hold harmless the other party from and against any and all losses, damages, liabilities, costs (including reasonable attorneys' fees) ("Losses") incurred as a result from any third-party claim, suit, action, or proceeding ("Third-Party Claim") to the extent it arises from a breach of the indemnifying party's representations and warranties under this Agreement. Nothing herein shall be construed as consent by Client to be sued by third parties, or as a waiver or modification of the provisions of Section 768.28, Florida Statutes or the Doctrine of Sovereign Immunity. ParkMobile Service Agreement PSA-LF Page 7 of 12 rev. 09/22 9.2 ParkMobile. ParkMobile will indemnify, defend, and hold harmless Client from and against any and all Losses incurred by Client resulting from any Third-Party Claim that the Platform or any use of the Platform in accordance with this Agreement, infringes or misappropriates such third party’s IP Rights, provided that Client promptly notifies ParkMobile in writing of the claim, cooperates with ParkMobile, and allows ParkMobile sole authority to control the defense and settlement of such claim. 9.3 Client. Subject to the limitations of Section 768.28, Florida Statutes, Client will indemnify, defend, and hold harmless ParkMobile from and against any and all Losses incurred by ParkMobile resulting from any Third-Party Claim arising out of Client’s disclosure or use of ParkMobile User Data in violation of this Agreement. Nothing herein shall be construed as consent by Buyer to be sued by third parties, or as a waiver or modification of the provisions of Section 768.28, Florida Statutes or the Doctrine of Sovereign Immunity 9.4 Mitigation. If any of the Services are claimed to, or in ParkMobile’s opinion are likely to, infringe, misappropriate, or otherwise violate any third-party IP Rights, or if Client’s use of the Services is enjoined or threatened to be enjoined, ParkMobile may, at its option and sole cost and expense: (a) obtain the right for Client to continue to use the Services as contemplated by this Agreement; (b) modify or replace the Services, in whole or in part, to seek to make the Services (as so modified or replaced) non-infringing, while providing equivalent features and functionality, in which case such modifications or replacements will constitute the Services, as applicable, under this Agreement; or (c) by written notice to Client, terminate this Agreement and require Client to immediately cease any use of the Services. 9.5 Sole Remedy. THIS SECTION 9 SETS FORTH CLIENT’S SOLE REMEDIES AND PARKMOBILE’S SOLE LIABILITY AND OBLIGATION FOR ANY ACTUAL, THREATENED, OR ALLEGED CLAIMS THAT THE SERVICES OR ANY SUBJECT MATTER OF THIS AGREEMENT INFRINGES, MISAPPROPRIATES, OR OTHERWISE VIOLATES ANY INTELLECTUAL PROPERTY RIGHTS OF ANY THIRD PARTY. 10. LIMITATION OF REMEDIES AND DAMAGES 10.1 Exclusion of Damages. EXCEPT AS OTHERWISE PROVIDED IN SECTION 10.3, IN NO EVENT WILL PARKMOBILE OR ANY OF ITS LICENSORS, SERVICE PROVIDERS, OR SUPPLIERS BE LIABLE UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ITS SUBJECT MATTER UNDER ANY LEGAL OR EQUITABLE THEORY, INCLUDING BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, AND OTHERWISE, FOR ANY: (A) LOSS OF PRODUCTION, USE, BUSINESS, REVENUE, OR PROFIT OR DIMINUTION IN VALUE; (B) IMPAIRMENT, INABILITY TO USE OR LOSS, INTERRUPTION, OR DELAY OF THE SERVICES; (C) LOSS, DAMAGE, CORRUPTION, OR RECOVERY OF DATA, OR BREACH OF DATA OR SYSTEM SECURITY; (D) COST OF REPLACEMENT GOODS OR SERVICES; (E) LOSS OF GOODWILL OR REPUTATION; OR (F) CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, ENHANCED, OR PUNITIVE DAMAGES, REGARDLESS OF WHETHER SUCH PERSONS WERE ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES OR SUCH LOSSES OR DAMAGES WERE OTHERWISE FORESEEABLE, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE. 10.2 Cap on Monetary Liability. EXCEPT AS OTHERWISE PROVIDED IN SECTION 10.3, IN NO EVENT WILL THE COLLECTIVE AGGREGATE LIABILITY OF PARKMOBILE OR CLIENT ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING UNDER OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, OR ANY OTHER LEGAL OR EQUITABLE THEORY, EXCEED ONE TIMES THE TOTAL AMOUNTS PAID TO PARKMOBILE UNDER THIS AGREEMENT IN THE 12 MONTH PERIOD PRECEDING THE EVENT GIVING RISE TO THE CLAIM. THE FOREGOING LIMITATIONS APPLY EVEN IF ANY REMEDY FAILS OF ITS ESSENTIAL PURPOSE. 10.3 Exceptions. The exclusions and limitations in Section 10.1 and Section 10.2 do not apply to ParkMobile's obligations under Section 9 or liability for ParkMobile's gross negligence or willful misconduct. 11. ADDITIONAL TERMS 11.1 National Cooperative Purchasing Alliance. ParkMobile is an awarded vendor with the National Cooperative Purchasing Alliance ("NCPA") to provide integrated parking management systems to public agencies at established rates as set forth in NCPA Contract No. 05-50 (“NCPA Contract”). Client’s procurement code authorizes the use of other contracts, including the NCPA Contract, as an acceptable method of procurement of competitively bid prices. Except as supplemented by the terms of this Agreement, all terms and provisions of the NCPA Contract remain unchanged and in full force and effect. The pricing outlined in this Agreement is intended to mirror ParkMobile’s pricing pursuant to its relationship with the NCPA. ParkMobile’s pricing from the NCPA Contract is included as Schedule 3. In the event of a conflict between Schedule 3 and the user fees outlined on page 2 of the Agreement, the user fees on page 2 of the Agreement shall control. Additional NCPA documentation may be found at https://www.ncpa.us/Vendors/ParkMobile. 11.2 Reserved. 11.3 Reserved. 12. GENERAL TERMS 12.1 Assignment. Client shall not assign or otherwise transfer any of its rights, or delegate or otherwise transfer any of its obligations or performance under this Agreement, in each case whether voluntary, involuntarily, by operation of law, or otherwise, without ParkMobile's prior written consent. No assignment, delegation, or transfer will relieve Client of any of its obligations or performance under this Agreement. Any purported assignment, delegation, or transfer in violation of this Section 12.1 is void. This Agreement is binding upon ParkMobile Service Agreement PSA-LF Page 8 of 12 rev. 09/22 and inures to the benefit of the parties and their respective successors and permitted assigns. 12.2 Severability. If a court of competent jurisdiction holds any term or provision of this Agreement to be invalid, illegal or unenforceable, the rest of the Agreement will remain in effect. 12.3 Headings. The headings in this Agreement are for reference only and do not affect the interpretation of this Agreement. 12.4 Notices. Any notice or communication permitted or required under this Agreement must be in writing and will be deemed received by the addressee: (a) when received, if delivered by hand with signed confirmation of receipt; (b) when received, if sent by a nationally recognized overnight courier, signature required; (c) when sent, if by email (with confirmation of transmission), if sent during the addressee’s normal business hours, and on the next business day, if sent after the addressee’s normal business hours; and (d) on the third business day after the date mailed by certified or registered mail, return receipt requested, postage prepaid. Notices must be sent to the attention of the respective party's legal department at the address set forth at the beginning of this Agreement or such other address as either party may specific in writing. Any notice permitted or required under this Agreement that is sent to ParkMobile shall also be sent via email to legal-notices@parkmobile.io. 12.5 Governing Law. This Agreement and all related documents, and all matters arising out of or relating to this Agreement, whether sounding in contract, tort, or statute are governed by, and construed in accordance with, the laws of the State of Florida, United States of America (including its statutes of limitations). 12.6 Amendment; Waivers. Any amendment must be in writing, signed by both parties, and expressly state that it is amending this Agreement. No waiver by any party will be effective unless explicitly set forth in writing and signed by the party so waiving. No terms or conditions stated in a Client purchase order, vendor onboarding process or web portal, or any other Client order documentation shall be incorporated into or form any part of this Agreement, and all such terms or conditions shall be null and void, notwithstanding any language to the contrary therein, whether signed before or after this Agreement. 12.7 Entire Agreement. This Agreement, together with any other documents incorporated herein by reference, constitutes the sole and entire agreement of the parties with respect to the subject matter of this Agreement and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter. 12.8 Third-Party Beneficiaries. There are no third-party beneficiaries under this Agreement. 12.9 Force Majeure. Neither party will be liable to the other for any delay or failure to perform any obligation under this Agreement (except for a failure to pay Fees) if the delay or failure results from any cause beyond such party’s reasonable control, including acts of God, labor disputes or other industrial disturbances, systemic electrical, telecommunications, or other utility failures, earthquakes, storms or other elements of nature, pandemics, blockages, embargoes, riots, acts or orders of government, acts of terrorism, or war. 12.10 Independent Contractors. The parties to this Agreement are independent contractors. The parties do not intend, and nothing in this Agreement should be construed, to create or enter into any partnership, joint venture, employment, franchise, agency, or similar relationship. Neither party has the power to bind the other or incur obligations on the other party’s behalf without the other party’s prior written consent. 12.11 Export Control. Client will comply with all export and import laws and regulations of the United States and other applicable jurisdictions. Without limiting the foregoing, Client: (i) represents and warrants that it is not listed on any U.S. government list of prohibited or restricted parties or located (or a national of) a country that is subject to a U.S. government embargo or that has been designated by the U.S. government as a “terrorist supporting” country; (ii) will not (and will not permit any third parties to) access or use any Service in violation of any U.S. export embargo, prohibition or restriction, and (iii) will not submit to any Service any information that is controlled under the U.S. International Traffic in Arms Regulation. 12.12 Interpretation. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. The Schedules referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein. 12.13 Counterparts. The parties may execute this Agreement in counterparts, including PDF and other electronic copies, which taken together will constitute one instrument. 13. DEFINITIONS "Access Credentials" means any user name, identification number, password, license or security key, security token, PIN, or other security code, method, technology, or device, used alone or in combination, to verify an individual's identity and authorization to access and use the Platform. "Authorized User" means Client's employee, consultant, contractor, and agent who is authorized by Client to access and use the Platform under the rights granted to Client pursuant to this Agreement. "Brand Features" means a party’s trade names, trademarks, service marks, logos, domain names, and other distinctive brand features. "Client Data" means any data specific to Client’s operation that is provided by Client to ParkMobile to be used in the provision of Services that is not available to ParkMobile publicly or by other means. "Confidential Information" means information that one party (or an affiliate) discloses to the other party under this Agreement, and that is marked as confidential or would normally be considered confidential information under the circumstances. It does not include information that is ParkMobile Service Agreement PSA-LF Page 9 of 12 rev. 09/22 independently developed by the recipient, is rightfully given to the recipient by a third party without confidentiality obligations or becomes public through no fault of the recipient. "Documentation" means any manuals, instructions, or other documents or materials that ParkMobile provides or makes available to Client in any form or medium and which describe the functionality, components, features, or requirements of the Services. "IP Rights" means any and all registered and unregistered rights granted, applied for, or otherwise now or hereafter in existence under or related to any patent, copyright, trademark, trade secret, database protection, or other intellectual property rights laws, and all similar or equivalent rights or forms of protection, in any part of the world. "Parking Information" means parking zones, parking rates, parking restrictions, selected payment methods, and other information necessary for the provision of the Services for a specific Parking Location. "Parking Location" means the location or locations of Client’s on-street parking, off-street parking, reservation parking, parking lots, parking decks, permitted parking, and other facilities where ParkMobile Users may park. "ParkMobile Application" means any and all mobile and/or web applications, services, or interfaces developed, hosted, or managed by, on behalf of, or in partnership with ParkMobile and that are made available to the general public and that facilities the payment of parking transactions. "ParkMobile User" means an end user that uses the ParkMobile Application. "ParkMobile User Data" means information, data, and other content, in any form or media, that is submitted, posted, or otherwise transmitted by or on behalf of a ParkMobile User, directly or indirectly, through the ParkMobile Application. "PCI Data" means, as applicable, payment card number, cardholder name, expiration date, card verification code or value, service code, and/or security-related information used to authenticate cardholders and/or authorize payment card transactions "Personal Data" means (i) any information about an identified or identifiable individual; or (ii) information that is not specifically about an identifiable individual but, when combined with other information, may identify an individual. Personal Data includes names, email addresses, postal addresses, telephone numbers, government identification numbers, financial account numbers, payment card information, license plate information, online identifiers (including IP addresses and cookie identifiers), network and hardware identifiers, geolocation information, and any information that constitutes “personal data” or “personal information” within the meaning of any relevant and applicable data privacy or protection laws. "Platform" means access-controlled mobile and/or web applications, services or interfaces developed, hosted, or managed by, on behalf of, or in partnership with ParkMobile that are made available to Client to administer, configure, manage and/or monitor parking sessions, parking rates, and/or parking restrictions associated with Client’s Parking Locations. "Resultant Data" means data and information related to Client’s, Authorized Users' and/or ParkMobile Users' use of the Services that is used by ParkMobile in an aggregate and anonymized manner, including to compile statistical and performance information related to the provision and operation of the Services. "Services" means the ParkMobile Application, the Platform, and all other services provided by ParkMobile under this Agreement. ParkMobile Service Agreement PSA-LF Page 10 of 12 rev. 09/22 SCHEDULE 2: SERVICES ON-DEMAND PARKING SERVICES ParkMobile offers a service to ParkMobile Users that facilitates the activation of and payment for on-demand parking using the ParkMobile Application (“On-Demand Parking”). ParkMobile Users may begin and, if applicable, end a parking transaction in a variety of ways: (1) visiting https://app.parkmobile.io; (2) calling ParkMobile’s IVR System, or (3) using the ParkMobile Application. In order to register with ParkMobile and begin a parking session, a consumer simply provide ParkMobile with the information required by ParkMobile to create an account, including payment method information and license plate number. Thereafter, subsequent parking sessions only require the ParkMobile User to enter or select the applicable parking duration available for the applicable location. The parking zone code of the Client parking areas are indicated on parking signs or on parking meters. Enforcers of the Client check the validity of parking status real time against the Platform via a web service offering, provided as part of the Services, to determine if a valid parking right exists. This information can be accessed by using a handheld terminal, mobile device or personal digital assistant (PDA). ParkMobile does not provide or pay for Client’s use of handheld terminals, mobile devices or PDAs for enforcement or any data plans or other items needed for communication between such items and the Services. At their option, ParkMobile Users will receive parking alert services from ParkMobile via SMS, ParkMobile Application push notification or email. The ParkMobile User may be notified, for example, when parked for an extended period of time or when the maximum parking time nears expiration. ParkMobile Users can use On-Demand Parking anywhere the Services are available. All parking charges are automatically charged to the ParkMobile User’s payment method, and ParkMobile Users have real time access to an online account-based personal page accessible from https://app.parkmobile.io to access and print parking history, receipts, and statements. RESERVATION PARKING SERVICES ParkMobile offers a service to ParkMobile Users that facilitates the activation of and payment for reservation parking using the ParkMobile Application (“Reservation Parking”). For each Parking Location that the parties agree to on-board for Reservation Parking Services, ParkMobile shall make the Parking Location's parking inventory available for sale through the ParkMobile Application and shall market and advertise such availability. The number of parking spaces and corresponding reservation periods and parking rates making up the parking inventory shall be specified by Client and may be altered by Client at any time for unreserved parking inventory. Responsibilities of Client. In order for ParkMobile to provide Reservation Parking Services, Client shall maintain an agreed upon number of parking spaces or transportation services at the Parking Location which shall be maintained at all times unless ParkMobile is notified otherwise in writing by Client. If access to the Parking Location is denied for any reason other than a ParkMobile User’s error or failure to abide by Client’s rules and regulations, Client agrees to forfeit its share of the applicable parking fee and authorizes ParkMobile to refund the entire Parking Fee to the ParkMobile User. If access to the Parking Location is denied because of a ParkMobile User’s error or failure to abide by Client’s rules and regulations, no Parking Fees will be refunded to the ParkMobile User. Client shall promote and market the Services through mutually agreed upon methods which shall include: ParkMobile Service Agreement PSA-LF Page 11 of 12 rev. 09/22 o a persistent, prominent “call to action” link/button on the parking and/or transportation pages of the Parking Location website(s) that directs users to the Client-branded website created by ParkMobile (e.g. a “Reserve Parking Now” button); o Embedded content on the parking and/or transportation pages of the Parking Location website(s) describing why and how to reserve parking through ParkMobile (e.g. FAQs, videos, etc.), such content to be provided by ParkMobile; and o mentions in emails promoting the Parking Location, including “know before you go” emails, all of which shall include a “call to action” to reserve event parking and link to the Client-branded website created by ParkMobile. Client agrees to use commercially reasonable efforts to obtain for ParkMobile a license to use photo and video assets of the Parking Location (where Client is not the Parking Location owner) and any tenants of a Parking Location in connection with ParkMobile’s marketing of the Services as available at such Parking Location. ParkMobile Service Agreement PSA-LF Page 12 of 12 rev. 09/22 Schedule 3: NCPA Pricing ©2020 ParkMobile, LLC. All rights reserved. Page 1 of 2 Tab 7: Pricing – Updated 8/10/2022 ParkMobile On Demand Pricing Option Product Name Description List Price NCPA Discounted Pricing** Other User Fees Transaction Fee Mobile Payment Transaction Fee Due ParkMobile Per Parking Session $0.45 $0.40 ParkMobile Application free to download. ParkMobile Wallet Payment Type Transaction Fee Mobile Payment Transaction Fee Due ParkMobile Per Parking Session. Note: ParkMobile Wallet payment type is only available when ParkMobile is acting as the Merchant of Record** $0.35 $0.30 ParkMobile Pro Member Transaction Fee Mobile Payment Transaction Fee Due ParkMobile Per Parking Session $0.35 $0.25 Member subscribes to ParkMobile Pro for $0.99 per month. In addition to reduced transaction fees listed here the member will have access to ParkMobile’s Parking Availability feature available in over 300 markets and many more benefits a user can redeem (Gift Cards, Discounts, Services). Link for Current Offers: https://parkmobile.io/parkmobile-pro/ Free Services to NCPA Members Setup and Implementation All initial signage and meter decals/stickers Hosting and Maintenance Call Center and Customer Support Social media, PR, standard marketing and advertising for program launch Standard integrations with third-party partners with which the Services are currently integrated ParkMobile 360 Platform for reporting, policy and rate management ParkMobile Reservations Pricing Option Product Name Description List Price NCPA Discounted Pricing ** Other User Fees Prepaid Parking Reservation Service Fee for prepaid Reservation per Transaction. Minimum fee of $1 assessed per reservation 15% 13% No-Charge Parking Reservation Convenience Fee for No-Charge parking Reservation per Transaction. No Charge reservation is defined as a complimentary or zero-dollar transaction. $1.00 $0.50 Free Services to NCPA Members Setup and Implementation Hosting and Maintenance Call Center and Customer Support Social media, PR, standard marketing and advertising for program launch ParkMobile will include Client’s Parking Locations on all ParkMobile internal sales channels including the ParkMobile-branded Application and ParkMobile-branded websites Access to an iOS scanning application at no additional charge for use in enforcement and validation Standard integrations with third-party partners with which the Services are currently integrated Web-based manager tool with secure credentials for reporting and management. ©2020 ParkMobile, LLC. All rights reserved. Page 2 of 2 ParkMobile PM360 Platform Pricing Option Product Name Description List Pricing NCPA Discounted Pricing ** Other User Fees Consolidated Reporting Monthly Service Fee to Client for PM360 consolidated reporting of partner revenue into PM360 Reporting Portal TBD 10% Discount Price per partner added to the PM360 Reporting Platform. Price varies based on partner request. No cost for PM360 Flagship Reporting Multi-Application Rate and Policy Management Convenience Fee charged to partner apps that operate through the PM360 Platform $0.10 $0.08 No cost to the City. Partner charged a per transaction will pay ParkMobile monthly. Free Services to NCPA Members Setup and Implementation Hosting and Maintenance Call Center and Customer Support **Pricing excludes all credit card costs associated with the processing of transactions. ParkMobile charges 3% & 20 cents per transaction for processing credit card payments on behalf of Client. Client may be MOR and be exempt from processing fees from ParkMobile, but gateway fees may apply. ParkMobile Parking Data as a Service (PDaaS) Pricing Option Product Name Description List Pricing NCPA Discounted Pricing Other Fees Data Collection Costs Inventory Data Collection Price is per space (ex. 1,000 spaces = $7,500.00). $7.50 10% Occupancy Data Collection Price is per space (ex. 1,000 spaces = $7,500.00). $7.50 10% ParkMobile has a minimum data collection charge of $10,000. Data collection fees charged to cities with over 2,500 spaces may receive an additional discount and will be quoted separately. Ongoing Data Collection (Optional) Occupancy Data (Monthly Updates) Price is per month (ex. 12 months = $24,000.00). $2,000.00 10% Pricing assumes three (3) collection devices mounted on client vehicles. Customer Facing Parking Availability (Optional) Occupancy Data in App for Consumers Price is per month (ex. 12 months = $24,000.00). $2,000.00 10% Parking availability may not be available in all markets. Fee may be waived when availability is restricted to ParkMobile Pro customers. Parking Dashboard Parking Dashboard Subscription Price is per space per month (ex. 1,000 spaces and 12 months = $24,000.00). $2.00 10% Dashboard fees charged to Cities with over 2,500 spaces may receive an additional discount and will be quoted separately. Free Services to NCPA Members Setup and Implementation Hosting and Maintenance Call Center and Customer Support All ParkMobile’s standard terms & conditions shall apply to this parking proposal Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0043 Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Fire Department Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Approve the Federally Funded Subaward and Grant Agreement for public assistance support for Hurricane Idalia expenditures and grant authority to the City Manager or designee to enter into, approve, and execute same and any future modifications for Hurricane Idalia expenditures. (consent) SUMMARY: Federal Emergency Management Agency’s (FEMA) Public Assistance program is a Federal grant to aid State and Local governments in returning a disaster area to pre-disaster conditions. A Request for Public Assistance (RPA) was submitted and approved. FEMA and the State share the responsibility for making Public Assistance funds available to the Subgrantee/Subrecipient. It is now necessary for the City of Clearwater, as the Subgrantee/Subrecipient, to enter into the Agreement with the Florida Division of Emergency Management (the Grantee/Recipient) in order to participate in this grant program. Under the funding process, recipients may receive modifications awarding additional funding as approved by the State of Florida, Division of Emergency Management. It will be beneficial for the City to allow the City Manager, or designee, to execute any future modifications in order to provide for efficient and timely processing of the modifications and acquire judicious funding. APPROPRIATION CODE AND AMOUNT: NA USE OF RESERVE FUNDS: NA STRATEGIC PRIORITY: 1.2 Maintain public infrastructure, mobility systems, natural lands, environmental resources, and historic features through systematic management efforts. Page 1 City of Clearwater Printed on 1/23/2024 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0036 Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Public Utilities Agenda Number: 5.1 SUBJECT/RECOMMENDATION: Award a Construction Contract to C and T Contracting Services, LLC of Tampa, FL, for the East Water Reclamation Facility (WRF) Influent Pump Station Rehabilitation Project in the amount of $2,840,530.00 pursuant to Invitation to Bid (ITB) No.13-0016-UT; approve Supplemental Work Order 5 to Ardurra Group, Inc of Tampa, FL for Construction Engineering Services in the amount of $431,536.00, increasing the work order from $392,575.00 to $824,111.00; and authorize the appropriate officials to execute same. (consent) SUMMARY: On October 25, 2023, Public Utilities issued ITB No. 13-0016-UT which closed on December 6, 2023. C&T Contracting Services, LLC of Tampa, FL, was the lowest and only responsible bid received in accordance with the plans and specifications. After reviewing the contractor bid, the EOR and city recommend awarding the contract to C&T Contracting Services, LLC in the amount of $2,840,530.00. On July 19, 2012, City Council awarded RFQ 16-12 Engineer of Record Consulting Services and King Engineering Associates, Inc. was one of the awarded firms. June 14, 2013, the City Manager approved the initial work order to EOR King Engineering Associates, Inc. to provide a preliminary design for the rehabilitation of the East Water Reclamation Facility Influent Pump Station in the amount of $35,632.00. December 24, 2015, the City Manager approved Supplemental Work Order 1 to provide design of a new influent sewer structure upstream of the Influent Pump Station as required for the temporary by-pass of the Influent Pump Station during its rehabilitation in the amount of $23,203.00 for a new work order value of $58,835.00. November 15, 2018, City Council approved Supplemental Work Order 2 to perform miscellaneous engineering evaluations with regards to the influent flow meter, wet well baffle, performing additional Subsurface Utility Engineering (SUE) work and providing design services for miscellaneous improvements to the IPS in an amount of $110,130.00 for a new work order value of $168,965.00. In 2018, King Engineering Associates, Inc. and Ardurra Group merged. A new consulting services contract was awarded under RFQ 26-19, approved by City Council June 20, 2019. In late 2019, the City met with Ardurra Group, Inc. and identified additional improvements including the need for additional SUE, demolition of the odor control system to provide access to construct the new by-pass structure, grit overflow piping modifications, arc flash, and flood resiliency. Other items include estimating the historical value of assets removed and permitting support. On November 18, 2021, City Council approved Supplemental Work Order 3 which included the additional design efforts associated with the improvements in the amount of $187,966.00 for a new work order value of $356,931.00. In July 2022, the City met with Ardurra Group, Inc. and identified additional engineering work to include in the following design documents: demolition of the abandoned equipment in the Sludge Handling Building, Page 1 City of Clearwater Printed on 1/23/2024 File Number: ID#24-0036 incorporation of the Pulsair Mixing System in the existing wet well, all electrical design associated with Pulsair Mixing System, and an estimation of the value of demolished and removed equipment in the Sludge Handling Building. On January 26, 2023, City Manager approved Supplemental Work Order 4 in the amount of $35,644.00 which was within the 10% approval of the latest Council approved item, for a new work order value of $392,575.00. Supplemental Work Order 5 for Ardurra, in the amount of $431,536.00, includes construction management and limited field representative services for the construction of the East WRF Influent Pump Station Rehabilitation Project. The Substantial Completion is expected to be completed in 15 months and the Final Completion is expected to be completed in 16 months. The City of Clearwater’s Public Utilities Department is responsible for owning, operating, and maintaining the sanitary sewer collection system. APPROPRIATION CODE AND AMOUNT: 3217321-561300-96214 STRATEGIC PRIORITY: In furtherance of the Council’s Strategic Plan to achieve High Performing Government by maintaining public infrastructure through systematic management efforts, award of a Construction Contract to C&T Contracting Services, LLC and approval of Supplemental Work Order 5 to Ardurra Group, Inc. is requested. The project also aligns with the City’s Strategic goals of Community Well-Being and Environmental Stewardship. Page 2 City of Clearwater Printed on 1/23/2024 BAYSIDE BRG GULF-TO-BAY BLVD S McMULLEN BOOTH RD S BAYSHORE BLVD S BAYSHORE BLVD AERIAL MAP INFLUENT PUMP STATION Document Path: C:\Users\Wioletta.Dabrowski\City of Clearwater\Engineering Geographic Technology - Documents\GIS\Engineering\Location Maps\13-0016-UT_E_WRF_IPSAer.mxd ²Prepared by:Engineering DepartmentGeographic Technology Division100 S. Myrtle Ave, Clearwater, FL 33756Ph: (727)562-4750, Fax: (727)526-4755www.MyClearwater.com N.T.S.Scale:Page: 1 of 16/11/2021Date:Aerial Flown 2019 East WRF Influent Pump StationProject Number: 13-0016-UT WDMap Gen By:KPReviewed By: DBE Y/N DBE Y/N DBE Y/N DBE Y/N BID ITEMS QTY UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT 1 Mobilization/Demobilization 1 LS 75,500.00$ 75,500.00$ 185,000.00$ 185,000.00$ 350,000.00$ 350,000.00$ 138,000.00$ 138,000.00$ 2 Demolition 1 LS 78,800.00$ 78,800.00$ 296,000.00$ 296,000.00$ 390,000.00$ 390,000.00$ 220,000.00$ 220,000.00$ 3 Sitework 1 LS 230,000.00$ 230,000.00$ 200,000.00$ 200,000.00$ 477,890.00$ 477,890.00$ 770,800.00$ 770,800.00$ 4 Pump Station Improvement 1 LS 1,120,000.00$ 1,120,000.00$ 1,299,796.00$ 1,299,796.00$ 1,598,669.00$ 1,598,669.00$ 1,069,000.00$ 1,069,000.00$ 5 Large Bubble Mixing System 1 LS 120,000.00$ 120,000.00$ 500,000.00$ 500,000.00$ 463,000.00$ 463,000.00$ 130,200.00$ 130,200.00$ 6 Tank Spray Cleaning System 1 LS 37,000.00$ 37,000.00$ 500,000.00$ 500,000.00$ 122,670.00$ 122,670.00$ 44,700.00$ 44,700.00$ 7 Temporary Bypass Pumping 1 LS 418,000.00$ 418,000.00$ 500,000.00$ 500,000.00$ 788,500.00$ 788,500.00$ 323,300.00$ 323,300.00$ 8 Electrical, Instrumentation & Controls 1 LS 498,000.00$ 498,000.00$ 225,000.00$ 225,000.00$ 505,000.00$ 505,000.00$ 437,000.00$ 437,000.00$ 9 Permit Allowance 1 LS 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 10 -$ -$ -$ -$ 11 -$ -$ -$ -$ 12 -$ -$ -$ -$ 13 -$ -$ -$ -$ #REF!-$ -$ -$ -$ #REF!-$ -$ -$ -$ #REF!-$ -$ -$ -$ SUBTOTAL 2,582,300.00$ 3,710,796.00$ 4,700,729.00$ 3,138,000.00$ 41 10% CONTINGENCY (BID ITEM 1 to 8)258,230.00$ 371,079.60$ 470,072.90$ 313,800.00$ TOTAL CONTRACT 2,840,530.00$ 4,081,875.60$ 5,170,801.90$ 3,451,800.00$ DBE DISADVANTAGED BUSINESS ENTERPRISE Bid Tabulations are not public until 30 days after bid opening or upon award by City Council, whichever occurs first. Key: Apparent Low Bidder with Corrected Total Tabulation RAZORBACK LLC 177 ANCLOTE RD TARPON SPRINGS, FL 34689 TLC DIV EAST WRF INFLUENT PUMP STATION REHABILITATION PROJECT 13-0016-UT C&T CONTRACTING SERVICES 11023 COUNTRY WAY BLVD TAMPA, FL 33636 POOLE & KENT CO 1715 W LEMON ST TAMPA, FL 33606 Ardurra Group, Inc. City of Clearwater Consultant Work Order Page 1 of 9 Revised: 11/28/2022 CONSULTANT WORK ORDER Supplement Work Order 5 Date: December 19, 2023 1. PROJECT INFORMATION: Project Title: East WRF Influent Pump Station Rehabilitation Project City Project Number: 13-0016-UT City Plan Set Number: N/A Consultant Project Number: 2110-211-000 2. SCOPE OF SERVICES: The City of Clearwater (City) issued the original work order to Ardurra Group, Inc. (Ardurra) in June 2013 to provide design, bidding, and construction services for improvements to the existing Influent Pump Station (IPS). Supplemental Work Order (SWO) #1 was issued to Ardurra in December 2015 to perform Subsurface Utility Engineering (SUE) work to locate an existing influent sewer (Northeast WRF effluent line). Two SUE investigation was performed and found the pipe to the south of the IPS but could not locate the pipe before it turns to the east. Supplemental Work Order #2 was issued to Ardurra in August 2018 to perform miscellaneous engineering evaluations with regards to the influent flow meter, wet well baffle, and also to perform additional SUE work to locate the Northeast WRF effluent line that wasn’t able to locate previously and to provide design services for miscellaneous improvements to the IPS. Later, the design effort under this SWO was put on pause, because the City needed to take priorities of finishing the design and construction of the effluent filter rehabilitation project. Supplemental Work Order #3 was issued to Ardurra in September 2021 to develop new design documents for the improvements of the East WRF. Since the previous SWOs, the East WRF had gone through several upgrades including the improvements of the influent sewer structure, pump replacement. In addition, there were other improvements that the City would like to include when resuming the IPS project. Therefore, SWO #3 was issued and scoped to provide the following: influent pump replacement, ultrasonic wet well CONSULTANT WORK ORDER East WRF Influent Pump Station Rehabilitation Project – Supplement #5 Ardurra Group, Inc. 13-0016-UT City of Clearwater Consultant Work Order Page 2 of 9 Revised: 11/28/2022 sensor replacement with radar sensors, Quad Odor Control System demolitions, baffle wall design for the existing wet well, raise electrical equipment for consideration of flood resilience and sea level rise, influent meter assembly replacement, spray cleaning system, bypass manhole installation, electrical design and improvements, provide estimated value of large demolished equipment, and other miscellaneous engineering work. During the evaluation of the proposed wet well design, Ardurra presented to the City that the large bubble mixing system is an improved alternative when compared to the spray cleaning system that the City requested. Not only can it break up the oil and grease on the wastewater surface, but also can keep solids suspended in the wet well, which consequently reduces pump clogging concerns and the overall wet well maintenance requirements. After the City’s considerations, it was decided to include the large bubble mixing system, in addition to the previously scoped spray cleaning system for the IPS improvement plans. Supplemental Work Order #4 was issued to Ardurra in February 2023 to develop design documents to install a large bubble mixing system for the influent pump station. The tasks include demolition of the abandoned equipment inside the Sludge Handling Building, incorporation of the large bubble mixing system inside the existing wet well, installation of the air compressor equipment inside the blower room, improvements of electrical, instrumentation and control work, and to provide estimated value of large, demolished equipment value, and other miscellaneous engineering work. The IPS project is moving forward with the bidding process. The previous SWO did not include construction services. Therefore, in April 2023, the City asked Ardurra to submit Supplemental Work Order #5 which includes construction management and limited field representative services for the construction of the East WRF Influent Pump Station Rehabilitation Project. The Substantial Completion is expected to be completed in 15 months and the Final Completion is expected to be completed in 16 months. I. PRE-DESIGN PHASE (N/A) II. DESIGN PHASE (N/A) III. FINAL DESIGN PHASE (N/A) IV. BIDDING PHASE (N/A) CONSULTANT WORK ORDER East WRF Influent Pump Station Rehabilitation Project – Supplement #5 Ardurra Group, Inc. 13-0016-UT City of Clearwater Consultant Work Order Page 3 of 9 Revised: 11/28/2022 V. CONSTRUCTION PHASE: Ardurra will provide construction management during a 16-month construction contract period, which includes: 5.1 Attendance at the preconstruction meeting by Ardurra’s Project Manager and Project Engineer. Ardurra will prepare the meeting agenda, conduct the meeting, and prepare and distribute meeting minutes. 5.2 Logging, distributing, reviewing and responding to up forty (40) shop drawings from the Contractor including construction progress schedules and Shop Drawings and other miscellaneous submittals. Of these shop drawings, it is assumed that up to 10 will require a second review (total of 50 shop drawing reviews). 5.3 Attendance at up to fifteen (15) construction progress meetings and site visits by Ardurra’s Project Manager and Project Engineer. Ardurra will prepare the meeting agenda, attend and conduct the meetings and prepare and distribute meeting minutes by email. 5.4 Sixteen (16) periodic site visits by both Ardurra’s Project Manager and Project Engineer to observe the progress of the work or to assist with conflict resolution. This effort will be coordinated with the City Project Manager. 5.5 Review and recommend payment for monthly Pay Applications submitted by the Contractor. 5.6 Ardurra will address the Contractor’s Requests for Information (RFIs), which will include: • Logging, reviewing and responding to the Contractor’s Requests for Information (RFIs). For the purposes of this Work Order, a total of 20 RFIs is assumed. • Miscellaneous phone calls and emails with the Contractor’s staff required to respond to minor questions not requiring formal RFIs. 5.7 Developing and issuing Requests for Proposal (RFPs) to the Contractor for additional work, reviewing and negotiating pricing and issuing Work Change Directives (WCDs) to authorize the Contractor to proceed with additional work not requiring additional design and permitting services. This includes development of supplemental drawings and tracking the contract’s Contingency Allowance. For the purposes of this Work Order, a total of five (5) RFPs and five (5) WCDs is assumed. 5.8 The City is responsible for Change Orders; however, Ardurra will assist the City with negotiating and preparing Change Orders to the contract, if needed. For the CONSULTANT WORK ORDER East WRF Influent Pump Station Rehabilitation Project – Supplement #5 Ardurra Group, Inc. 13-0016-UT City of Clearwater Consultant Work Order Page 4 of 9 Revised: 11/28/2022 purposes of this Work Order, an allowance for up to five (5) Change Orders is assumed. 5.9 Attending start-up and testing of the pumps and ancillary equipment and review test reports and log test results. 5.10 Providing assistance with final closeout including: • Maintaining a punchlist throughout the project based on our site visits/field observations and reports/field observations conducted by the City. • Ardurra will attend a substantial and a final walkthrough and confirming that punchlist items have been completed; • Reviewing the Contractor’s survey as-built; • Preparing combined Record Drawings and providing the City with signed and sealed copies; • Providing the City with Record Drawings in PDF and AutoCAD formats; • Reviewing and computing adjustments to Contract Price and Contract Time and assisting with preparation of the final Change Order; • Prepare and submit permit certification to the FDEP; • Prepare and submit final Project Catalog to the City. 5.11 Providing general Program Management including: • Maintaining routine contact and discussing construction progress and project developments with the City’s Project Manager and designated Public Utilities Representative(s); • Miscellaneous phone calls and emails and coordination with the City’s Project Manager and other City staff, including assisting the City’s Project Manager with miscellaneous minor project related questions and general consultation with respect to the Contractor’s contractual obligations; • Document control including maintaining files of correspondence, meeting minutes, Contract Documents, Change Orders, Field Orders, RFIs, Work Change Directives, Addenda, additional Drawings issued subsequent to the execution of the Contract, progress reports, Shop Drawing and Sample submittals, regulatory correspondence and other Project-related documents. At the conclusion of the project, Ardurra will combine this information into a Project Catalog and submit to the City for review and comment. The Project Catalog will be submitted electronically on flash drive. 5.12 Ardurra will act as Owner’s Representative on City’s behalf to provide oversight on observation of the construction efforts. In order to certify to the FDEP that the project has been constructed in accordance with the FDEP permit and engineering plans and specifications, Ardurra will provide the services of a Field Representative CONSULTANT WORK ORDER East WRF Influent Pump Station Rehabilitation Project – Supplement #5 Ardurra Group, Inc. 13-0016-UT City of Clearwater Consultant Work Order Page 5 of 9 Revised: 11/28/2022 to observe that the work is proceeding in general conformance with the Contract Documents during critical stages of the work. The budget for Field Observation budgeted level of effort is: • Month 1 – 2: An average of 20 hours per month for the first two (2) months (8 weeks) of the construction contract. • Month 3 – 16 An average of 20 hours per week for remaining fourteen (14) months (60 weeks) of the construction contract. Total Field Observation Hours: 1,240 hours ADDITIONAL SERVICES Ardurra will provide additional “out-of-scope” services on an “as-needed basis”, such as additional field observation services due to the Contractor working extended hours, at the request of the City, after development of a scope and fee and issuance of written authorization by the City Project Manager. 3. PROJECT GOALS: Project deliverables will include the following: 1. Meeting minutes in PDF format via email. 2. Field Observation Reports in PDF format via email. 3. Responses to Contractor RFI’s in PDF format via email. 4. Shop Drawing Review comments in PDF format via email. 5. Three (3) 24”x36” signed/seal final Record Drawings. 6. One (1) 11”x17” signed/seal final Record Drawings. 7. Record Drawings in AutoCAD and PDF formats on flash drive. 8. One (1) Draft and One (1) Final Project Catalog on flash drive. 4. FEES: See Attachment A. This price includes all labor and expenses anticipated to be incurred by Ardurra Group, Inc. for the completion of these tasks in accordance with Professional Services Method “A” – Hourly Rate, for a fee not to exceed Four Hundred Thirty-One Thousand Five Hundred Thirty-Six Dollars and Zero Cents ($431,536.00). CONSULTANT WORK ORDER East WRF Influent Pump Station Rehabilitation Project – Supplement #5 Ardurra Group, Inc. 13-0016-UT City of Clearwater Consultant Work Order Page 6 of 9 Revised: 11/28/2022 5. SCHEDULE: All Tasks will be completed in accordance with the Contractor’s construction schedule over the course of a 480 calendar day construction contract duration (Notice-to-Proceed to Final Completion). 6. STAFF ASSIGNMENT: Consultant’s Staff: Principal: Christopher F. Kuzler, P.E. Department Manager: Loc Truong, P.E. Project Manager: Vivian Hong, P.E. Engineer: Vivian Hong, P.E. City’s Staff: Project Manager: Ivan Tamayo, P.E. Engineering Manager, Utilities: Jeremy Brown, P.E. Public Utilities Director: Richard Gardner, P.E. Public Utilities Assistant Director: Michael Flanigan Public Utilities Manager: Christina Goodrich Public Utilities Liaison: Travis Teuber Public Utilities Site Representative: Steve Heppler 7. CORRESPONDENCE/REPORTING PROCEDURES: Consultant’s project correspondence shall be directed to: Vivian Hong, P.E. (Project Manager), with copies to Loc Truong, P.E. (Department Manager). All City project correspondence shall be directed to: City’s designated Project Manager with copies to the Engineering Manager, Public Utilities Assistant Director, and Public Utilities Director. ENGINEER shall provide a minimum of forty-eight (48) hours’ notice prior to conducting fieldwork/site visits. ENGINEER shall provide a minimum of seven (7) days notification for site visits requiring the assistance of City Operations and Maintenance personnel. CONSULTANT WORK ORDER East WRF Influent Pump Station Rehabilitation Project – Supplement #5 Ardurra Group, Inc. 13-0016-UT City of Clearwater Consultant Work Order Page 7 of 9 Revised: 11/28/2022 ENGINEER acknowledges that all City directives shall be provided by the City Project Manager. In addition to the original copies delivered as stated in the scope of work, all project deliverables will be submitted in electronic format on CD or other City approved device prior to approval of final invoice. 8. INVOICING/FUNDING PROCEDURES: City Invoicing Code: 3217321-561300-96214 For work performed, invoices shall be submitted monthly to: CITY OF CLEARTWATER, PUBLIC UTILITIES DEPARTMENT ATTENTION: PU ACCOUNTING 1650 No Arcturas Ave Bldg-C Clearwater, Florida 33765-1945 The monthly invoices shall be submitted through email to: PUEngineering@myclearwater.com and CC Ivan Tamayo, Ivan.Tamayo@myclearwater.com Contingency services will be billed as incurred only after written authorization provided by the City to proceed with those services. 9. INVOICING PROCEDURES: At a minimum, in addition to the invoice amount(s) the following information shall be provided on all invoices submitted on the Work Order: 1. Purchase Order, Project and Invoice Numbers and Contract Amount. 2. The time period (begin and end date) covered by the invoice. 3. A short narrative summary of activities completed in the time period. 4. Contract billing method – Lump Sum or Hourly Rate. 5. If Lump Sum, the percent completion, amount due, previous amount earned and total earned to date for all tasks (direct costs, if any, shall be included in lump sum amount). 6. If Hourly Rate, hours, hourly rates, names of individuals being billed, amount due, previous amount earned, the percent completion, total earned to date for each task and other direct costs (receipts will be required for any single item with a cost of $50 or greater or cumulative monthly expenses greater than $100). CONSULTANT WORK ORDER East WRF Influent Pump Station Rehabilitation Project – Supplement #5 Ardurra Group, Inc. 13-0016-UT City of Clearwater Consultant Work Order Page 8 of 9 Revised: 11/28/2022 7. If the Work Order is funded by multiple funding codes, an itemization of tasks and invoice amounts by funding code. 10. CONSIDERATIONS: Consultant acknowledges the following: 1. The Consultant named above is required to comply with Section 119.0701, Florida Statutes, where applicable. 2. All City directives shall be provided by the City Project Manager. 3. “Alternate equals” shall not be approved until City Project Manager agrees. 4. All submittals must be accompanied by evidence each has been internally checked for QA/QC before providing to City. 5. Consultants/Contractors are not permitted to use City-owned equipment (i.e. sampling equipment, etc.). 6. Documents posted on City website must ADA accessible. 11. ADDITIONAL CONSIDERATIONS: All work orders should include considerations for the following: 1. Sea Level Rise and Flood Resilience, as applicable. 2. Submittal of a Critical Path Method (CPM) Schedule(s). 3. Submittal of a Project Catalog with the following items, as appropriate: a. Data requests, assumptions, critical correspondence, meeting agenda, sign-in sheets, meeting minutes, document comment-response log(s), technical memorandum/reports, addenda, progress reports, regulatory correspondence, and other project-related documents. b. If construction project, also include design plans, conformed plans, change orders, field orders, RFIs, work change directives, addenda, progress reports, shop drawing and progress submittals, as-builts, record drawings, and other project-related documents such as O&M manuals and warranty information. c. At the conclusion of the project, ENGINEER will combine this information into a Project Catalog and submit to the City for review and comment. 4. Arc Flash labeling requirements: a. All electrical designs and construction shall adhere to NFPA 70 E “Standard for Electrical Safety in the Workplace”. b. Updated calculations of Fault and Arc Flash, and provisions for new or updated Arc Flash equipment labeling shall be included in the contract documents. CONSULTANT WORK ORDER East WRF Influent Pump Station Rehabilitation Project – Supplement #5 Ardurra Group, Inc. 13-0016-UT City of Clearwater Consultant Work Order Page 9 of 9 Revised: 11/28/2022 12. SPECIAL CONSIDERATIONS (N/A) 13. SIGNATURES: PREPARED BY: APPROVED BY: Christopher F. Kuzler, P.E. Richard Gardner, P.E. Managing Principal Public Utilities Director Ardurra Group, Inc. City of Clearwater Date Date 12/19/23 ATTACHMENT “A” CONSULTANT WORK ORDER – PROJECT FEES TABLE East WRF Influent Pump Station Rehabilitation Project – Supplement #5 Ardurra Group, Inc. 13-0016-UT City of Clearwater Consultant Work Order – Project Fees Table Page 1 of 1 Revised: 11/28/2022 CONSULTANT SUPPLEMENTAL WORK ORDER #5 PROJECT FEES TABLE Task Description Subconsultant Services* Labor Total 5.0 Construction Phase 5.1 Preconstruction Meeting $2,339 $2,339 5.2 Submittals $2,088 $30,148 $32,236 5.3 Construction Progress Meetings $26,692 $26,692 5.4 Periodic Site Visits $17,232 $17,232 5.5 Pay Applications $5,574 $5,574 5.6 Request for Information (RFI) $720 $29,780 $30,500 5.7 RFPs/Work Change Directives $27,892 $27,892 5.8 Change Orders $13,802 $13,802 5.9 Startup and Testing $11,736 $11,736 5.10 Closeout Assistance $4,392 $26,180 $30,572 5.11 Construction Management $31,780 $31,780 5.12 Field Observation $161,200 $161,200 SUBTOTAL, LABOR AND SUB-CONTRACTORS: $391,555 Additional Services (Contingency) $39,156 Other Direct Costs (prints, photocopies, postage, etc.) $750 GRAND TOTAL: $431,536 *Subconsultant Services include electrical portion of the construction services, which will be provided by Carastro & Associates, Inc. ATTACHMENT “B” CONSULTANT WORK ORDER – CITY DELIVERABLES East WRF Influent Pump Station Rehabilitation Project – Supplement #5 Ardurra Group, Inc. 13-0016-UT City of Clearwater Consultant Work Order – City Deliverables Page 1 of 1 Revised: 11/28/2022 CONSULTANT WORK ORDER CITY DELIVERABLES 1. FORMAT: The design plans shall be compiled utilizing the following methods: 1. City of Clearwater CAD standards. 2. Datum: Horizontal and Vertical datum shall be referenced to North American Vertical Datum of 1988 (vertical) and North American Datum of 1983/90 (horizontal). The unit of measurement shall be the United States Foot. Any deviation from this datum will not be accepted unless reviewed by City of Clearwater Engineering/Geographic Technology Division. 2. DELIVERABLES: The design plans shall be produced on bond material, 24" x 36" at a scale of 1" = 20’ unless approved otherwise. Upon completion the consultant shall deliver all drawing files in digital format with all project data in Autodesk Civil 3D file format. NOTE: If approved deviation from Clearwater CAD standards are used the Consultant shall include all necessary information to aid in manipulating the drawings including either PCP, CTB file or pen schedule for plotting. The drawing file shall include only authorized fonts, shapes, line types or other attributes contained in the standard release of Autodesk, Inc. software. All block references and references contained within the drawing file shall be included. Please address any questions regarding format to Mr. Tom Mahony, at (727) 562-4762 or email address Tom.Mahony@myClearwater.com. All electronic files (including CAD and Specification files) must be delivered upon completion of project or with 100% plan submittal to City of Clearwater. 4921 Memorial Highway, Suite 300 | Tampa, FL 33634 | 813.880.8881 | www.ardurra.com December 21, 2023 Helene Kassouf City of Clearwater Engineering Department 100 S. Myrtle Avenue, Suite 220 Clearwater, FL 33756 Re: East WRF Influent Pump Station Rehabilitation City Project # 13-0016-UT Recommendation of Award Dear Ms. Kassouf: Ardurra Group, Inc. (Ardurra) has evaluated the low bid received on December 6, 2023 for the above referenced project. The total bid value submitted by the bidder is shown below: 1. C&T Contracting Services. (Total Bid): $2,840,530.00 The Engineer’s Opinion of Probable Construction Cost for the Base project was $3,550,500.00 and the apparent low bidder is C&T Contracting Services (C&T), with a total Bid amount of $2,840,530.00, which is approximately 20% lower than the Engineer’s Opinion of Probable Construction Cost. As part of the bid evaluation, Ardurra contacted Christopher Telson with C&T on December 18, 2023 to discuss their bid and their general understanding of the project. In summary, the following topics were discussed with C&T and they have indicated the following: • C&T understands the scope of work and site conditions; • C&T understands the schedule requirements and contract time; • C&T indicated that they have no concerns with the performance bond requirements; • C&T indicated that they do not anticipate issues with material lead times, except for the pumps that require additional confirmation; • C&T is comfortable with their bid prices and what is included in each bid item. December 21, 2023 Page 2 Ardurra also contacted the following references/contacts provided by C&T Contracting Services: • Brian Antonian – City of Dunedin • Raed Yousef – Pasco County A record of the phone conversations is attached. Ardurra has also reviewed the list of similar projects provided by C&T Contracting Services. C&T has completed pump station upgrades and other utility projects for municipal clients. The largest single construction project successfully completed by the Contractor is a wastewater treatment plant project that values at $2.6M+. Since the Harbor C&T bid is approximately $700,000 below the Engineer’s estimate, as well as the second low bidder, there is a potential for change orders to be submitted by C&T Contracting during construction. Overall, C&T appears to be capable of successfully performing the work based on their understanding of the project, their experience and feedback from the above references. Therefore, we recommend that the City award the contract to C&T Contracting Services with the amount of Two Million Eight Hundred Forty Thousand Five Hundred Thirty Dollars and Zero Cents ($2,840,530.00). Please feel free to contact me if you require additional information. Sincerely, Vivian Hong, P.E. Project Manager Enclosures cc: Loc Truong, P.E. – Ardurra Group, Inc. File: 0161-00047-2018-1721-01 DBE Y/N DBE Y/N DBE Y/N DBE Y/N BID ITEMS QTY UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT 1 Mobilization/Demobilization 1 LS 75,500.00$ 75,500.00$ 185,000.00$ 185,000.00$ 350,000.00$ 350,000.00$ 138,000.00$ 138,000.00$ 2 Demolition 1 LS 78,800.00$ 78,800.00$ 296,000.00$ 296,000.00$ 390,000.00$ 390,000.00$ 220,000.00$ 220,000.00$ 3 Sitework 1 LS 230,000.00$ 230,000.00$ 200,000.00$ 200,000.00$ 477,890.00$ 477,890.00$ 770,800.00$ 770,800.00$ 4 Pump Station Improvement 1 LS 1,120,000.00$ 1,120,000.00$ 1,299,796.00$ 1,299,796.00$ 1,598,669.00$ 1,598,669.00$ 1,069,000.00$ 1,069,000.00$ 5 Large Bubble Mixing System 1 LS 120,000.00$ 120,000.00$ 500,000.00$ 500,000.00$ 463,000.00$ 463,000.00$ 130,200.00$ 130,200.00$ 6 Tank Spray Cleaning System 1 LS 37,000.00$ 37,000.00$ 500,000.00$ 500,000.00$ 122,670.00$ 122,670.00$ 44,700.00$ 44,700.00$ 7 Temporary Bypass Pumping 1 LS 418,000.00$ 418,000.00$ 500,000.00$ 500,000.00$ 788,500.00$ 788,500.00$ 323,300.00$ 323,300.00$ 8 Electrical, Instrumentation & Controls 1 LS 498,000.00$ 498,000.00$ 225,000.00$ 225,000.00$ 505,000.00$ 505,000.00$ 437,000.00$ 437,000.00$ 9 Permit Allowance 1 LS 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 10 -$ -$ -$ -$ 11 -$ -$ -$ -$ 12 -$ -$ -$ -$ 13 -$ -$ -$ -$ #REF!-$ -$ -$ -$ #REF!-$ -$ -$ -$ #REF!-$ -$ -$ -$ SUBTOTAL 2,582,300.00$ 3,710,796.00$ 4,700,729.00$ 3,138,000.00$ 41 10% CONTINGENCY (BID ITEM 1 to 8)258,230.00$ 371,079.60$ 470,072.90$ 313,800.00$ TOTAL CONTRACT 2,840,530.00$ 4,081,875.60$ 5,170,801.90$ 3,451,800.00$ DBE DISADVANTAGED BUSINESS ENTERPRISE Bid Tabulations are not public until 30 days after bid opening or upon award by City Council, whichever occurs first. Key: Apparent Low Bidder with Corrected Total Tabulation RAZORBACK LLC 177 ANCLOTE RD TARPON SPRINGS, FL 34689 TLC DIV EAST WRF INFLUENT PUMP STATION REHABILITATION PROJECT 13-0016-UT C&T CONTRACTING SERVICES 11023 COUNTRY WAY BLVD TAMPA, FL 33636 POOLE & KENT CO 1715 W LEMON ST TAMPA, FL 33606 CONTRACTOR REFERENCE SUMMARY Project: East WRF Influent Pump Station Rehabilitation Project No: 13-0016-UT Contractor: C&T Contracting Services Contact: Christopher Telson Date of Phone Call #1: December 18, 2023 1. Do you understand what the project entails and are you comfortable with it? Yes and yes. 2. Do you understand the Addendum(s) issued? Yes. 3. Do you feel comfortable with your pricing submitted on the Bid Form? Yes. 4. Do you have any issues or conflicts with the schedule time? No. 5. Do you have any issues with lead times for the materials needed? The contractor would like to double check on the lead time for the pumps, but other than there. The contractor does not see any issues. 6. Do you feel comfortable doing a job of this magnitude? Yes. 7. Will there be any issues with your performance bond? No. 8. Do you have any other projects that would cause scheduling conflicts with this one? No. Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0045 Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Solid Waste/General Services Agenda Number: 6.1 SUBJECT/RECOMMENDATION: Declare list of vehicles and equipment surplus and authorize disposal through auction pursuant to Clearwater Code of Ordinances Section 2.623(6) and (8) and authorize the appropriate officials to execute same. (consent) SUMMARY: On August 4, 2022, Council approved the Vehicle Replacement List for fiscal year 2023. Additionally on August 17, 2023 Council approved the Vehicle Replacement List for fiscal year 2024 authorizing purchase of replacement vehicles and equipment. This agenda item is requesting Council to declare surplus the vehicles and equipment detailed to be replaced per the list and authorize disposal via auction through Tampa Machinery Auction of Tampa, FL pursuant to Section 2.623(6) and (8). Tampa Machinery Auction was competitively solicited by Pinellas County under Contract NO. 190-0534-R(JJ) valid through November 17, 2027. These vehicles and equipment have reached the end of their useful and economic life. Factors used to determine the end of useful and economic life include, but are not limited to: age, life to date, mileage/hours of operations, historical maintenance cost as compared to like vehicles, operating cost per mile/hour, anticipated and ongoing repairs, and physical condition. Additionally, Fleet will continue to bring forward agenda items for vehicles and equipment from the 2022/23 and 2023/24 Vehicle Replacement Lists as their replacements are deemed road ready. APPROPRIATION CODE AND AMOUNT: N/A STRATEGIC PRIORITY: 1.2 Maintain public infrastructure, mobility systems, natural lands, environmental resources, and historic features through systematic management efforts. Page 1 City of Clearwater Printed on 1/23/2024 ITEM #ASSET #YEAR DESCRIPTION SERIAL NUMBER MILEAGE SURPLUS / DISPOSAL REPLACED BY 1 G0718 1983 ODELL TRAILER 832396U XXX AGE/MILEAGE/CONDITION G5345 2 G1003 1990 IR COMPRESSOR 186348U90317 1299HR AGE/MILEAGE/CONDITION G5456 3 G1543 1968 FUEL TRAILER 7300061 XXXXX AGE/MILEAGE/CONDITION G5389 4 G1602 1996 FORKLIFT KFG20 302013751 819HR AGE/MILEAGE/CONDITION G5392 5 G1782 1997 S28-A COMP 1297575 1236HR AGE/MILEAGE/CONDITION G5472 6 G2209 2000 TRAILER 40ZBP0918YPP71048 XX AGE/MILEAGE/CONDITION XXXXX 7 G2353 2001 IR COMPRESSOR 321885UEL221 1004HR AGE/MILEAGE/CONDITION G5457 8 G2920 2004 FORD RANGER 1FTYR14U64PA75178 91189MI AGE/MILEAGE/CONDITION G5289 9 G2280 2000 STONE S28A GC02-6555709 XXX AGE/MILEAGE/CONDITION G5469 10 G2777 2003 TORO 07277 230000307 848HR AGE/MILEAGE/CONDITION G5315 11 G2917 2003 BOBCAT B850 BREAKER 794012842 XXXXX AGE/MILEAGE/CONDITION G5346 12 G3021 2005 INTERNATIONAL 4500 1HTMMAAN96H218120 60349MI AGE/MILEAGE/CONDITION G5347 13 G3112 2007 IMPERIAL TRAILER 1Z9BU17296J213702 XXXXX AGE/MILEAGE/CONDITION G5394 14 G3113 2007 IMPERIAL TRAILER 1Z9TA20257J213677 XXXX AGE/MILEAGE/CONDITION G5395 15 G3114 2007 IMPERIAL TRAILER 1Z9TA20277J213678 XXXXX AGE/MILEAGE/CONDITION G5396 16 G3131 2006 JOHN DEERE TRACTOR LV5425R246578 3478HR AGE/MILEAGE/CONDITION G5356 17 G3195 2006 WACKER PUMP 5962 XXX AGE/MILEAGE/CONDITION G5473 18 G3646 2010 TORO ZMASTER 580 280000111 3371HR AGE/MILEAGE/CONDITION G5433 19 G3647 2010 TORO ZMASTER 580 280000110 2525HR AGE/MILEAGE/CONDITION G5434 20 G3852 2012 FORD TRANSIT NM0KS9BN4CT109285 84781MI AGE/MILEAGE/CONDITION G4727 21 G4003 2014 MADVAC LN50 5093 305HR AGE/MILEAGE/CONDITION G5408 22 G4077 2014 FREIGHTLINER 1FVHG3CYXFHGK7257 61225MI AGE/MILEAGE/CONDITION G5323 23 G4108 2014 CAMRY 4T1BF1FK5EU846657 110824MI AGE/MILEAGE/CONDITION G5229 24 G4152 2015 DODGE CHARGER 2C3CDXAG9FH806272 83840MI AGE/MILEAGE/CONDITION XXXXX 25 G4244 2016 BROOM BEAR SWEEPER 1FVACXCY0GHHT5926 14561MI AGE/MILEAGE/CONDITION G5353 26 G4249 2016 TAURUS 1FAHP2MT8GG109084 94168MI AGE/MILEAGE/CONDITION G5304 27 G4246 2016 FORD EXPLORER 1FM5K8AR6GGB96857 83506MI AGE/MILEAGE/CONDITION G5303 28 G4256 2016 FORD EXPLORER 1FM5K8AR1GGB96863 110188MI AGE/MILEAGE/CONDITION G5308 29 G4295 2016 FORD F450 U/B 1FDUF4GYXGEB97562 90338MI AGE/MILEAGE/CONDITION G5336 30 G4308 2016 F150 E/C 1FTEX1CF3GKD82451 109379MI AGE/MILEAGE/CONDITION G5331 31 G4351 2017 CAMRY 4T1BF1FK8HU702833 94505MI AGE/MILEAGE/CONDITION XXXXX 32 G4613 2018 JOHN DEERE 5090M ILV5090MEJJ400507 4956HR AGE/MILEAGE/CONDITION G5348 33 G4621 2018 POLARIS RANGER XP1000 4XARVM993H8053880 265HR AGE/MILEAGE/CONDITION G5437 34 G4898 2020 POLARIS RANGER 570 3NSMAA578LE767423 1303HR AGE/MILEAGE/CONDITION G5500 35 G4942 2020 BILLYGOAT X2 BLOWER 1150HR AGE/MILEAGE/CONDITION G5459 36 G5096 2021 HONDA TRX520 ATV 1HFTE46E5M4600624 4173HR AGE/MILEAGE/CONDITION G5437 37 XXX BOBCAT CART NO G NUMBER RB1032-11681 XXXXX AGE/MILEAGE/CONDITION XXXXX 38 XXXX COLUMN LIFT SET XXXXX AGE/MILEAGE/CONDITION XXXXX February 2024 Auction Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: 9744-24 Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: OrdinanceIn Control: City Attorney Agenda Number: 7.1 SUBJECT/RECOMMENDATION: Revise the structure of the Downtown Development Board and pass Ordinance 9744-24 on first reading. SUMMARY: During the Council meeting taking place on Dec. 19, 2023, the City Council directed the City Attorney to revise the governance structure of Clearwater’s Downtown Development Board (DDB). This draft reflects one possible iteration of the DDB’s future governance structure. Page 1 City of Clearwater Printed on 1/23/2024 Ordinance No. 9744-24 ORDINANCE NO. 9744-24 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, AMENDING CHAPTER 2, ARTICLE III, DIVISION 5 OF THE CLEARWATER CODE OF ORDINANCES; AMENDING THE STATEMENT OF POLICY AND FINDINGS OF THE DOWNTOWN DEVELOPMENT BOARD; AMENDING THE GOVERNANCE STRUCTURE OF THE BOARD; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Florida Legislature created the Clearwater Downtown Development Board (“the DDB”) on July 2, 1970 through Ch. 70-635, Laws of Fla.; and WHEREAS, the Florida Legislature subsequently converted governance of the DDB to local ordinance on June 30, 1977 through Ch. 77-637, Laws of Fla.; and WHEREAS, the City of Clearwater (“the City”) subsequently codified the DDB’s purpose, functions, and powers in Chapter 2, Article III, Division 5 of its Code of Ordinances; and WHEREAS, the City has, from time to time, amended that part of the Code of Ordinances which governs the DDB; and WHEREAS, the City has been advised by Jonathan Darden, Policy Chief for the Florida House of Representatives, that the City can by ordinance restructure the governance of the DDB; and WHEREAS, the City intends to create strategic alignment and more efficient operations involving itself, its Community Redevelopment Agency (“CRA”), and the DDB; now therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. That section 2.143, Clearwater Code of Ordinances be amended by adding the underlined language and deleting the stricken language as follows: Sec. 2.143. - Statement of policy and findings. (1) It is the policy of the city to preserve property values and prevent deterioration in the District by revitalizing and preserving the District as a central business district with places to live, work, and spend leisure time. Recognizing that property owners in the District directly benefit from such a program, it is a purpose of this division to provide the means whereby those property owners bear the substantial cost of the program in order to solve a local problem on a local level. 2 Ordinance 9744-24 (2) The city council hereby declares that the many challenges that have limited economic growth and development in the District include the following: obsolete and insufficient infrastructure, insufficient availability of office space and housing, and obsolete and substandard office space and housing. Voluntary cooperation for coordinated development has limitations because of fragmentary ownership, distant absentee ownership, unusual conditions of title, and other conditions. (3) It is in some instances a proper function of government to remove blight and blighting influences from commercial areas. The police power may be inadequate to accomplish this purpose. Effective devices for removal include: planning and implementation of planning for appropriate land use, beautification projects, construction of new infrastructure, and the removal of deteriorated and obsolete structures. (4) Responsibility for the planning and implementation in the District rests primarily with the city and the CRA. The city council declares that the powers of the Board are to: (a) Assist the city and the CRA to guide and accomplish the coordinated, balanced and harmonious development of the District in accordance with existing and future needs; (b) Create strategic alignment among property owners, businesses, residents and both governmental and private organizations in the District; (c) Create a sense of community that supports existing businesses and residents and attracts new businesses and residents to the District; (d) Assist the city and the CRA in implementation of the Clearwater Downtown Redevelopment Plan and any amendment or successor thereto; and (e) Assist the city and the CRA to provide a way of life which combines the conveniences and amenities of modern living with the traditions and pleasures of the past. Section 2. That section 2.145, “Freeholders’ referenda and elections,” Clearwater Code of Ordinances is hereby stricken in its entirety and repealed. Section 3. That section 2.146, “Eligibility to vote,” Clearwater Code of Ordinances, is hereby stricken in its entirety and repealed. Section 4. That section 2.147, Clearwater Code of Ordinances be amended by adding the underlined language and deleting the stricken language as follows: Sec. 2.147. – Creation; members. (1) There is hereby created a Board composed of seven members to be known as the Clearwater Downtown Development Board. 3 Ordinance 9744-24 (2) Notwithstanding any City ordinance to the contrary, each voting Board member who was most recently elected, reelected, appointed, or reappointed in the years 2022 or 2023 shall conclude their Board service on March 31, 2024. (3) Beginning April 1, 2024, and without further action being required by the City, the five members of the City Council shall, as an additional duty in public office, also serve as voting members of the Board. The Mayor shall serve as the chairperson of the Board. (4) In addition, the City Council shall at a public meeting in March of 2024 appoint or reappoint two citizens to serve on the Board as voting members alongside the City Council. These two citizens shall be selected from those Board members who were elected or reelected to the Board in 2024. These two Board members shall remain in office throughout the three year term to which they were elected, said term ending on December 31, 2027. (5) At a public meeting in October 2027, and every three years thereafter, the City Council shall appoint or reappoint two citizens to serve as Board members alongside the five City Council members. To qualify for service on the Board and to remain qualified for service on it, the two citizens Board members shall either reside within the District, have the member's principal place of business or employment in the District, or own real property in the District. Each citizen appointed pursuant to this subsection shall serve a term of three years, beginning January 1, 2028, and may succeed himself or herself in office if reappointed. (6) Any vacancy on the Board caused by a vacancy in a City Council seat shall be filled in the same manner and by the same person appointed to serve in the vacant City Council seat. Any other vacancy on the Board shall be filled by majority vote of the remaining Board members within 60 days of the vacancy, and the person appointed shall serve as a Board member for the duration of the three year term applicable to that seat. Any person appointed shall possess all the qualifications required of a Board member. If the majority of the Board is unable to appoint someone to fill the vacancy within 60 days, the City Council shall have the power to make the appointment. (7) Each member of the Board shall serve without compensation for services rendered as a member, but may be reimbursed by the Board for necessary and reasonable expenses incurred in the performance of duty. No member of the Board shall be personally liable for any action taken in attempting in good faith to perform the member's duty or for a decision not to act, except in instances of fraud or willful neglect of duty. Section 5. That section 2.148, Clearwater Code of Ordinances, be amended by adding the underlined language and deleting the stricken language as follows: (1) Except in relation to decorum rules, the Board shall formulate and may amend its own rules of procedure and written bylaws, not inconsistent with this division, by majority vote of the Board. Among other provisions, the bylaws shall provide for maintenance of funds of the Board, internal supervision and control of its accounts, maintenance of 4 Ordinance 9744-24 minutes and other official records, preparation and adoption of a budget, and conduct of an external audit, all in compliance with applicable laws, ordinances and regulations. The rules of decorum applicable to Board meetings shall be the same as those applicable to the City Council, as amended from time to time. (2) Four voting members of the Board shall constitute a quorum for the transaction of business, but fewer than a quorum may adjourn from time to time and may compel the attendance of absent members. All action shall be taken by vote of at least a majority of the Board members. (3) The Board shall schedule regular meetings at least once a month and shall provide in its bylaws a method for holding special meetings. Regular meetings may be cancelled by the chairperson if there is nothing on the agenda, or there is otherwise no necessity to have a meeting. All Freeholders in the District shall be notified of the time and place of all regular and special meetings in the same manner and to the same extent that the public is notified of meetings held by the City Council or the Community Redevelopment Agency. As provided in Florida Statute § 286.0114, members of the public, including but not limited to Freeholders in the District, shall be afforded a reasonable opportunity to be heard prior to official action being taken by the Board regarding the matter on which the citizen desires to speak. Section 6. That section 2.152, Clearwater Code of Ordinances be amended by adding the underlined language and deleting the stricken language as follows: Sec. 2.152. – Millage limitations. This division provides for the establishment of a special taxing district under the Florida Constitution, art. VII, § 9, and the millage limitations are specified within this division as authorized by the constitution. Should any court construe this division to be within the ten-mill limitation of the county, then all provisions of this division shall be null and void, and this division shall be repealed. Should any court construe this division to be within the ten-mill limitation of the city, said millage shall be upheld as municipal millage and count against the ten-mill limitation described in Article VII, § 9(b) of the Florida Constitution. Section 7. Should any of the clauses, sentences, paragraphs, sections or parts of this Ordinance be deemed invalid, unconstitutional, or unenforceable by a court of law or administrative agency with jurisdiction over the matter, such action shall not be construed to affect any other valid portion of this Ordinance. Section 8. This ordinance shall take effect upon passage. PASSED ON FIRST READING _____________________ 5 Ordinance 9744-24 PASSED ON SECOND AND FINAL _____________________ READING AND ADOPTED ___________________________ Brian Aungst, Senior Mayor Approved as to form: Attest: __________________________ ____________________________ David Margolis Rosemarie Call City Attorney City Clerk Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0079 Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: City Attorney Verbal Report In Control: City Attorney Agenda Number: 7.2 SUBJECT/RECOMMENDATION: Update to Council Policies relating to use of stationery. SUMMARY: During the Jan. 16 work session, Mayor Aungst requested an update to Council policy and rules relating to the use of Council stationery or letterhead. The City Attorney was asked to present a menu of options regarding potential updates. After reviewing the current stationery options, and considering the perspectives of each Councilmember, the City Attorney has identified at least three important aspects of the policy for Council to consider: ·The use of full Council stationery (which includes the names of all Councilmembers) versus individual Councilmember stationery (making no reference to other Councilmembers) ·Whether different rules should apply to the Mayor than other Councilmembers ·The importance, if any, of placing special limitations on correspondence sent by incumbent candidates during election or reelection campaigns With these variables in mind, the following options are presented for Council consideration: Option #1: require Councilmembers, including the Mayor, to only use individual stationery unless approved unanimously by the Council at a public work session. Individual stationery shall not mention or reference any other Councilmembers other than the author. Full Council stationery can be used only when approved unanimously by the full Council on a case-by-case basis during a public work session. Option #2: allow the Mayor to use Council stationery without public permission from Council. In all other respects, identical to Option #1. Option #3: prohibit all Councilmembers, other than the Mayor, from using any City stationery after the Councilmember has qualified for election or reelection but prior to the election itself. This prohibition can be waived on a case-by-case basis by a majority of the Council after a formal vote. These options are illustrative rather than exhaustive. Council can direct staff to adopt any of these three options, or Council can modify these options as it sees fit. Page 1 City of Clearwater Printed on 1/23/2024 File Number: ID#24-0079 Council Policy 5-7 relating to Stationery was last revised on November 3, 2022, to add the phrase “to be used for official city business.” Page 2 City of Clearwater Printed on 1/23/2024 “Equal Employment and Affirmative Action Employer” Mark Bunker, Councilmember Kathleen Beckman, Councilmember David Allbritton, Councilmember Lina Teixeira, Councilmember Brian J. Aungst Sr., Mayor C i t y o f C l e a r w a t e r Post Office Box 4748, Clearwater, Florida 33758-4748 600 Cleveland Street, Suite 600, Clearwater, FL 33755 Telephone (727) 562-4010 Fax (727) 562-4021 City Attorney's Office “Equal Employment and Affirmative Action Employer” Mark Bunker, Councilmember Kathleen Beckman, Councilmember David Allbritton, Councilmember Lina Teixeira, Councilmember Brian J. Aungst Sr., Mayor C i t y o f C l e a r w a t e r Post Office Box 4748, Clearwater, Florida 33758-4748 600 Cleveland Street, Suite 600, Clearwater, FL 33755 Telephone (727) 562-4050 Fax (727) 562-4052 City Council “Equal Employment and Affirmative Action Employer” Mark Bunker, Councilmember Kathleen Beckman, Councilmember David Allbritton, Councilmember Lina Teixeira, Councilmember Brian J. Aungst Sr., Mayor C i t y o f C l e a r w a t e r Post Office Box 4748, Clearwater, Florida 33758-4748 600 Cleveland Street, Suite 600, Clearwater, FL 33755 Telephone (727) 562-4040 Fax (727) 562-4052 City Manager “Equal Employment and Affirmative Action Employer” Mark Bunker, Councilmember Kathleen Beckman, Councilmember David Allbritton, Councilmember Lina Teixeira, Councilmember Brian J. Aungst Sr., Mayor Brian j. aungst sr. Mayor Seat 1 C i t y o f C l e a r w a t e r Post Office Box 4748, Clearwater, Florida 33758-4748 600 Cleveland Street, Suite 600, Clearwater, FL 33755 Telephone (727) 562-4050 Fax (727) 562-4052 “Equal Employment and Affirmative Action Employer” Mark Bunker, Councilmember Kathleen Beckman, Councilmember David Allbritton, Councilmember Lina Teixeira, Councilmember Brian J. Aungst Sr., Mayor Mark Bunker Councilmember Seat 2 C i t y o f C l e a r w a t e r Post Office Box 4748, Clearwater, Florida 33758-4748 600 Cleveland Street, Suite 600, Clearwater, FL 33755 Telephone (727) 562-4050 Fax (727) 562-4052 “Equal Employment and Affirmative Action Employer” Mark Bunker, Councilmember Kathleen Beckman, Councilmember David Allbritton, Councilmember Lina Teixeira, Councilmember Brian J. Aungst Sr., Mayor Kathleen Beckman Councilmember Seat 3 C i t y o f C l e a r w a t e r Post Office Box 4748, Clearwater, Florida 33758-4748 600 Cleveland Street, Suite 600, Clearwater, FL 33755 Telephone (727) 562-4050 Fax (727) 562-4052 “Equal Employment and Affirmative Action Employer” Mark Bunker, Councilmember Kathleen Beckman, Councilmember David Allbritton, Councilmember Lina Teixeira, Councilmember Brian J. Aungst Sr., Mayor David Allbritton Councilmember Seat 4 C i t y o f C l e a r w a t e r Post Office Box 4748, Clearwater, Florida 33758-4748 600 Cleveland Street, Suite 600, Clearwater, FL 33755 Telephone (727) 562-4050 Fax (727) 562-4052 “Equal Employment and Affirmative Action Employer” Mark Bunker, Councilmember Kathleen Beckman, Councilmember David Allbritton, Councilmember Lina Teixeira, Councilmember Brian J. Aungst Sr., Mayor Lina Teixeira Councilmember Seat 5 C i t y o f C l e a r w a t e r Post Office Box 4748, Clearwater, Florida 33758-4748 600 Cleveland Street, Suite 600, Clearwater, FL 33755 Telephone (727) 562-4050 Fax (727) 562-4052 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0081 Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: City Attorney Agenda Number: 7.3 SUBJECT/RECOMMENDATION: Authorize the City Attorney to retain the law firm of Luke Charles Lirot, PA to represent the City in multiple code violation cases, City of Clearwater v. Nicholas Bosstick, Case No. 23-11058-MO et seq., relating to Mr. Bosstick’s violations of Section 28.10, Code of Ordinances, as enforced pursuant to Section 1.12, Code of Ordinances, in an initial amount not to exceed $4,000.00, approve the Legal Consultation Services Contract, and authorize the appropriate officials to execute same. (consent) SUMMARY: On March 16, 2023, Council adopted Ordinance 9665-23, creating code section 28.10, which establishes a vehicle safety zone for the Bread and Roses Woman’s Health Center at 1560 S. Highland Avenue. Mr. Bosstick has repeatedly violated this ordinance and has been issued multiple code violations. Luke Lirot is currently representing the city in the First Amendment suit filed in federal court. APPROPRIATION CODE AND AMOUNT: Funds are available in cost code 0109600- 530100, Professional Services, to fund this contract. Page 1 City of Clearwater Printed on 1/23/2024 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0093 Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: City Attorney Agenda Number: 7.4 SUBJECT/RECOMMENDATION: Approve amended purchase and sale agreement with Gotham Property Acquisitions, LLC, and The DeNunzio Group, LLC and authorize the appropriate officials to execute same. (consent) SUMMARY: In November 2022, Clearwater voters approved the sale and redevelopment of two downtown properties to Gotham and DeNunzio (Buyers). In the first quarter of 2023, the Buyers advised that as a result of changing market conditions, significant funding gaps had emerged in the project. In April 2023, the Buyers delivered a presentation to the City Council, at which the Buyers advised that the funding gap was $80 million. During that presentation, the Buyers proposed a combination of changes to the project that would fill the gap and allow the project to proceed. In response, the Council requested a comprehensive study to verify the extent of the funding gap, and analyze the reasons behind it. City staff identified HR&A Advisors as the best firm to conduct that analysis because HR&A has prior experience evaluating economic conditions in downtown Clearwater, and HR&A was highly recommended by Assistant City Manager Michael Delk. In October 2023, the City received HR&A’s final report. The final report confirmed a funding gap between $76 million -$80 million. HR&A’s report was then cross-referenced with two independent commercial appraisals obtained by the City in November 2023. With the benefit of extensive and recent data, the City Attorney consulted with each Councilmember via 1 on 1 discussion, along with senior city staff, to gauge the level of support for making the changes necessary to allow the project to move forward. Through a combination of those discussions, the City Attorney recommends approval of the revised purchase and sale agreement (PSA). The key changes are summarized in the term sheet attached to this agenda item. If approved by Council, an amended development agreement (DA) will be presented to the Community Development Board (CDB) for their consideration. Afterward, an amended DA will be presented to the City Council for final approval, likely in May 2024. The proposed amendments to the DA will be consistent with the PSA. Page 1 City of Clearwater Printed on 1/23/2024 APPRAISAL REPORT OF FORMER CITY HALL SITE 112 South Osceola Avenue Clearwater, Pinellas County, Florida 33756-5103 URS File Number – 232098 FOR Mr. David Margolis, Esq. City of Clearwater Attorney City of Clearwater Economic Development and Housing 600 Cleveland Street Suite 600 Clearwater, Florida 33755 TABLE OF CONTENTS Letter of Transmittal .......................................................................................................................... Certification .................................................................................................................................... 8 Executive Summary ...................................................................................................................... 10 Subject Maps and Photographs ....................................................................................................... 5 Purpose, Intended Use and Date of Appraisal .............................................................................. 14 Scope of Appraisal ........................................................................................................................ 15 Valuation Definitions .................................................................................................................... 16 Legal Description .......................................................................................................................... 19 Ownership and Five-Year History of Subject Property ................................................................ 20 Market Area: Location, Description and Trend ............................................................................ 22 Real Property Assessments and Taxes .......................................................................................... 38 Land Use and Zoning Classification ............................................................................................. 39 Concurrency and Impact Fees ....................................................................................................... 42 Site Description ............................................................................................................................. 43 Improvement Description ............................................................................................................. 50 Marketability and Estimated Marketing Period ............................................................................ 51 Multi-Family Real Estate Market ............................................................................................. 55 Highest and Best Use Analysis ..................................................................................................... 66 Introduction to the Appraisal Process ........................................................................................... 71 Sales Comparison Approach ......................................................................................................... 73 Comparable Land Sales ............................................................................................................ 75 Analysis of Comparable Land Sales ....................................................................................... 118 Summary of Sales Comparison Approach .............................................................................. 121 Disposition Value.................................................................................................................... 124 Reconciliation and Final Value Estimate .................................................................................... 126 Assumptions and Limiting Conditions ....................................................................................... 127 Appraiser Qualifications ............................................................................................................. 131 November 16, 2023 Mr. David Margolis City of Clearwater Attorney City of Clearwater Economic Development and Housing 600 Cleveland Street Suite 600 Clearwater, Florida 33755 RE: Former City Hall Site 112 South Osceola Avenue Clearwater, Florida, 33756-5103 Dear Mr. Margolis: As requested, a detailed investigation, analysis and appraisal have been made of the market value of the fee simple estate of the referenced property, in as-is condition as of the appraisal date. The subject property is a 2.60-acre portion of the parent tract known as Imagine Clearwater and Coachman Park, a public waterfront development in downtown Clearwater. The parent tract area is approximately 23 acres including Coachman Park and with a bayfront shoreline on the Intracoastal Waterway at Clearwater Harbor with a marina providing wet slips. The subject address is 112 South Osceola Avenue, a non-waterfront site lying at the northwest corner of Pierce Street and South Osceola Avenue. The subject site was formerly occupied by the City Hall building which has been demolished. The site has good elevation, situated on a bluff approximately 30 feet above Clearwater Harbor, and offers expansive views across the bay. The subject site is presently proposed for a high-rise rental apartment development with approximately 400 units by Gotham Property Acquisitions, LLC and The DeNunzio Group, LLC. The City of Clearwater previously issued an RFP for the development of a rental apartment tower and retail development on the site. As a result, Gotham and DeNunzio submitted a proposal to develop two residential towers totaling 600 rental units and retail responding to the City RFP. However, after having preliminary plans drawn and obtaining cost estimates, Gotham determined that, due to the combination of increasing construction costs and rising interest rates, the development as planned was no longer economically feasible. As a result and in order to move forward with development, Gotham has proposed downsizing the development to one tower of 400 units plus a reduced retail component. They also requested a reduction in the purchase price and other changes, but promising to proceed with development if the City was agreeable. November 16, 2023 Mr. David Margolis Page two Stepping back, due to the shutdown of businesses in 2020 and the desire to help Americans recover following the Covid pandemic, substantial aid packages were passed and interest rates were reduced to historic low levels. As a result, developers rushed to obtain low interest rate financing and commence projects as quickly as possible. Those able to acquire sites and commence construction as quickly as possible did so, but supply chain and other issues led to a rapid increase in construction costs, forcing developers to increase loan amounts or equity contributions and to increase rental rates to historic highs. Many of these developments are now under construction. The multi-family development market has experienced particularly challenging influences over the past year. The cost of construction labor and materials continued to increase, albeit at a lower rate of increase. The rapid increase of interest rates is a significant impediment, but a larger issue is that lenders have tightened their lending criteria, so a 50% or 60% loan is now common, rather than a 70% to 80% loan. New units coming online plus declining economic conditions have led to a general flattening of rental rates. Further, insurance costs for completed apartment units have significantly increased, up 50% or more. Also, there is a fairly substantial pipeline of new rental apartment construction in the Tampa area due to the low interest rates of 2020 to mid-2022 and these units will be coming to market in 2024 and 2025. Our survey of developers and brokers found that none plan to acquire a development site in the foreseeable future. With buyers and capital on the sidelines, a marketing period for development sites may today stretch into a few years. While demand for housing in general continues to increase, much of that demand is by those unable to financially afford to buy or rent newer single-family homes or condominium units. As demand slows, in some cases new apartment developments are experiencing slow absorption, offering concessions and reducing or at least not increasing rental rates. Historically low interest rates in 2021 and the first part of 2022 spoiled consumers for housing ownership and led developers to hurriedly commence land acquisitions for new projects. Our research into sales of land for apartment development reveals numerous sales each year until 2023, and the few land sales this year are those negotiated when interest rates were lower. The dilemma for an appraiser is that sales closing today are based on economic conditions from recent better times. Developers queried have no plans to commence development until interest rates decline and economic conditions improve, and most do not believe that will occur in 2024. Money Supply M2 is reportedly down an unprecedented 4.0%, signaling consumer spending problems in the near term. The US savings rate is now lower, repayment of college loans may cut into many consumer budgets, the unemployment rate has ticked upward, credit card debt is at an all-time high, and lenders could tighten real estate loan criteria even further. November 16, 2023 Mr. David Margolis Page three Our research reveals the land prices paid per apartment unit varied among the comparable sales based on dates of recorded sale, downtown versus other urban or suburban locations, and the number of apartment units to develop. Consideration of the current multi-family market and the many challenges facing developers and investors have caused reluctance to begin new developments. Based on our review of the market and of comparable sales data, we estimate value of the subject site based on approximately 400 rental units for the subject land. Considering the prominent waterview location of the subject and the progress of developing the surrounding parks, but recognizing that a marketing period for the land could be three years, it is our opinion that $30,000 per developable apartment unit best represents market value for the subject 2.60 acres as a 400 unit rental apartment development site with complementary retail and possibly office use. This calculates to $12,000,000 ($30,000 x 400). This value is based on recent market activity, but economic conditions foreshadow an unpredictable future for rental apartment development in Tampa Bay. Land owners often remove their property from the market rather than selling at a distressed price. As the City is desirous of a quick sale, and again noting that a current marketing period could be two to three years, we fall back on discounts utilized in the past. In previous periods of economic slowdowns, when marketing periods were projected to be multiple years, investors and lenders often kept reducing prices to a level that would attract land investors and speculators. The eventual price was referred to as a Disposition Value. Our review of those transactions led to a general observation that a discount of 30% to 40% is often necessary in order to entice an investor to acquire a site. Utilizing a discount of 30%, the following disposition value is indicated. This discount would provide an investor a return of approximately 12% per annum, as discussed later in the report. Market Value $12,000,000 Less 30% Discount $ 3,600,000 Disposition Value $ 8,400,000 It is our opinion that a discount to a sale price in the range of $8,400,000 or less will be necessary to attract a qualified buyer to acquire the subject site in the near term. This discounted value is unlikely to offset the increased construction and capital costs, and additional concessions may be necessary to entice a buyer to commence the construction process immediately. The budgets and rents discussed in the Gotham proposal appear reasonable, and there is clearly a shortfall. It is unlikely the City could identify another developer willing to move forward, and continued negotiations with Gotham are expected. November 16, 2023 Mr. David Margolis Page three Gotham submitted a summary of its findings during its due diligence period in a report titled The Bluffs on April 17, 2023. Gotham states they worked with their architect and contractor and obtained the following. • Comprehensive hard cost estimates from two of the most reputable general contractors in Florida (for the original and subsequent plan estimates) • Updated residential market study from Gensler to reflect the current residential leasing climate • Detailed operating expense budget from Greystar, one of the largest and most reputable property managers both in Florida and the nation • Detailed construction and property insurance budget from Custom House Risk Advisors • Civil engineering due diligence study / memo from Stantec • Gas and electric capacity letter from Duke Energy Gotham updated their financial models and surveyed the market for debt and equity. Assuming they continue, they expect to spend over $5,000,000 before a potential groundbreaking in late 2024, and the entire project costs are in the range of $220,000,000. As a result of their due diligence, they found that construction costs increased dramatically since their initial response, operating costs, especially insurance costs, have increased 50% or more, and projected revenues have declined as the overall Tampa Bay rental apartment market slowly declines. Rental rates are flat to declining and Clearwater rental rates appear insufficient to support the new development. These factors are well known to all in the industry, as projects are being shelved across the state and country and developers do not expect conditions to turn around until 2025 or beyond. As discussed, Gotham submitted documents supporting their assertions to the City, and the City asked its consultants, HR&A, to review and provide guidance. HR&A responded that the assertions appear accurate and that the financial models are also generally accurate, noting that plans are still preliminary. Gotham proposes a reduction to 400 units in one tower and only one level of underground parking. The purchase price would be reduced to $7,600,000 and the City would be asked to contribute an additional $4,000,000, in addition to the $17,000,000 to assist with parking garage costs. Gotham notes total costs under the 400 unit development scenario of $554,893 per apartment unit, well above pricing typically achieved by other apartment complex sales. Developers of similar product may consider the eventual sale as condominium units, but the agreement with the city would preclude this. November 16, 2023 Mr. David Margolis Page four We have prepared a complete appraisal and are submitting this appraisal in a written narrative appraisal report format. Included within the accompanying appraisal report are exhibits and documented data in support of the value conclusions. All material collected during our analysis has been retained in our files and is available for inspection upon request. This appraisal has been prepared in compliance with the Uniform Standards of Professional Appraisal Practice and governmental regulations, as well as the client’s appraisal and reporting requirements. The opportunity to have been of service is appreciated. Should you have any questions or comments, or require additional information, please do not hesitate to contact us. Very truly yours, H. Linwood Gilbert, Jr., MAI State-Certified General Real Estate Appraiser RZ0940 Wayne Beurnier State-Certified General Real Estate Appraiser RZ1307 CERTIFICATION This is to certify that, upon request for valuation by Mr. David Margolis, Esq., City of Clearwater Attorney, City of Clearwater Economic Development and Housing, we have personally inspected, collected and analyzed various data, and appraised the market value of the fee simple estate of the subject property, located at 112 South Osceola Avenue, Clearwater, Florida 33756-5103. We certify that, to the best of our knowledge and belief: • The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. • We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. • We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. • We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • Our engagement in this assignment was not contingent upon developing or reporting predetermined results. • Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • Our reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. This certificate is also a certification under Florida Real Estate License Law Chapter 475. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • We have made a personal inspection of the property that is the subject of this report. Also, we made an inspection of selected comparable properties. • No one provided significant real property appraisal assistance to the persons signing this certification. • As of the date of this report, H. Linwood Gilbert, Jr., MAI, has completed the continuing education program for Designated Members of the Appraisal Institute. • The undersigned appraisers, based on education, work experience and the previous appraisal of properties similar to the subject, are competent and qualified to appraise the property. This certificate is in accordance with the Uniform Standards of Professional Appraisal Practice Standard Rule 2-3 and with the Appraisal Institute's Supplemental Standards of Professional Practice. It is also a certification under Florida Real Estate Appraisal Board of the Division of Real Estate of the Department of Business and Professional Regulation. The reader should review the Assumptions and Limiting Conditions, to which this analysis is subject, included at the end of the report. No hypothetical conditions are required for this appraisal. In our opinion, the fee simple estate of the subject land, located at 112 South Osceola Avenue, Clearwater, Florida 33756-5103, had a market value as of the appraisal date of November 3, 2023, of approximately TWELVE MILLION DOLLARS ($12,000,000). Under current economic conditions, the marketing period is estimated at 24 to 36 months. In our opinion, the fee simple estate of the subject land, located at 112 South Osceola Avenue, Clearwater, Florida 33756-5103, had a disposition value, based on a six month marketing period, and as of the appraisal date of November 3, 2023, of approximately EIGHT MILLION FOUR HUNDRED THOUSAND DOLLARS ($8,400,000). H. Linwood Gilbert, Jr., MAI State-Certified General Real Estate Appraiser RZ0940 Wayne Beurnier State-Certified General Real Estate Appraiser RZ1307 EXECUTIVE SUMMARY Property Name: Former City Hall Site Property Classification: Multifamily Residential Land Address: 112 South Osceola Avenue Clearwater, Pinellas County, Florida 33756-5103 Municipal Jurisdiction: City of Clearwater County: Pinellas County Section, Township and Range: 17-29S-16E Census Tract: 12-103-0254.20 Metropolitan Statistical Area: Tampa-St. Petersburg-Clearwater Property Ownership: City of Clearwater Property Rights Appraised: Fee simple estate Legal Description: Please see Legal Description section County Identification No.: 16-29-15-20358-001-0040 Purpose of Appraisal: Estimate market value as-is Appraisal Date: November 3, 2023 Date of Report: November 16, 2023 Report Type: Narrative Intended User of Appraisal: Client, City of Clearwater Economic Development and Housing Intended Use of Appraisal: Assist in disposition negotiations URS - 232098 Page 2 Property Assessment 2023: $22,851,832 (Parent Tract) Tax Millage Rate 2023: 20.2462 mils Non-Ad Valorem Taxes 2023: $ 0 Total Property Taxes 2023: $ 0 Gross $ 0 Net Neighborhood: The subject neighborhood is the westerly edge of the Central Business District of the City of Clearwater, Florida fronting Clearwater Bay. Commercial development includes restaurants, retail shops, offices, Morton Plant Hospital complex and municipal buildings, and there are several condominium buildings along the waterfront, with Water’s Edge being the tallest in the downtown area. There are single-family homes including new townhomes to the north and south of the downtown area. Clearwater Beach is about two miles west of Clearwater Bluff. Tampa International Airport and the Westshore Business District are 17 miles easterly via SR 60. Customers, clients and employees generally come from a broader market area. Land Use Plan: Central Business District CBD Zoning District: Downtown Site Data: The subject is located at the northwest corner of the two streets, extending approximately 387.07 feet east to west along Pierce Street and 285.04 feet north to south along South Osceola Avenue. The west boundary is 300.62 feet. The site is generally rectangular and contains approximately 113,256 square feet or 2.60 acres. The subject has good elevation, being on the Bluffs, and views of the bay would be available from virtually any multi-story development on the site. The site is approximately two miles from the beach and there are protected lanes on either side of Clearwater Bridge for walking, running or bicycling. URS - 232098 Page 3 Soil is sandy, typical for the area, and it is assumed that no adverse subsoil conditions exist. Municipal potable water and wastewater disposal are available to the site, as are electric and telephone services. There are no known impediments to development. Drainage and utility easements appear typical. Flood Zone Data: “X”, minimum flood risk, above 100-year flood plain, per FEMA Map Panel 12103C0108J, dated August 24, 2021. Improvement Data: The subject property was formerly improved with the Old City Hall building. The building has been demolished. The approximate 25,000 square foot, three story building has been demolished and removed. Site improvements consist of asphalt paving to the east and recent sod to the west, plus underground laterals for potable water and waste water, not in use. The site improvements have negligible contributory value. Personal Property: No personal property is applicable. Environmental Conditions: No unusual environmental conditions were observed, but this appraisal is subject to receipt of a satisfactory environmental audit. Highest and Best Use: As if vacant and available, the subject site has a highest and best use to hold for future development to multi-family units, likely rental apartments, to a minimum density of 400 units. The subject is not currently improved. Marketing/Exposure Periods: 24 to 36 months / 12 months George F. Young Survey 11/22 Mean LF E-W Lineal Feet 387.17 387.07 387.12 N-S Lineal Feet 300.20 285.04 292.62 Square Feet 113,256 Acres 2.60 URS - 232098 Page 4 Value Indications Cost Approach N/A Sales Comparison Approach $12,000,000 Income Capitalization Approach N/A Final Estimate of Value $12,000,000 As-Is Market Value $ 8,400,000 Disposition Value URS - 232098 Page 5 SUBJECT MAPS AND PHOTOGRAPHS Area Location Map Neighborhood Map URS - 232098 Page 6 Area Aerial Photograph Neighborhood Aerial Photograph URS - 232098 Page 7 Property Appraiser’s Aerial Photograph - Southerly Portion of Parent Tract Subject 2.6 acres is within SEC of south parent tract Approximate Subject 2.6 Acre Boundaries Building has been demolished URS - 232098 Page 8 Ground Level Photographs View westerly from subject bluff toward SR 60 Causeway to Clearwater Beach beyond View easterly along Pierce Street, subject on left View southerly from Coachman Park, subject beyond Water’s Edge Tower URS - 232098 Page 9 Aerial Overview of properties nearby the subject Overview of parent tract, the subject, Coachman Park on right, The Oak Cove on left, high rise Water’s Edge Condominium in middle and Pierce 100 Condominium top left URS - 232098 Page 10 Aerial view westerly of subject property, Old City Hall building now demolished Aerial view northerly of subject approximate boundaries URS - 232098 Page 11 View south along South Osceola Avenue, subject on right View east along Pierce Street from South Osceola Avenue intersection URS - 232098 Page 12 View south along South Osceola Avenue from Pierce Street View west along Pierce Street, subject on right URS - 232098 Page 13 View northwesterly of Old City Hall demolished building, Water’s Edge Condominium in right background View northerly of subject approximate boundaries URS - 232098 Page 14 PURPOSE, INTENDED USE AND DATE OF APPRAISAL Purpose of this appraisal is to estimate, with the highest degree of accuracy possible, the market value, as vacant land, of the fee simple estate of the subject property. The intended user of this appraisal report is the client, the City of Clearwater Economic Development and Housing Department. This appraisal report is prepared for the sole and exclusive use of the intended user and may not be relied upon by any third parties for any purpose whatsoever without the prior written consent of the appraiser. No additional intended users are identified by the appraiser. The intended use of this appraisal is to assist in disposition negotiations, subject to the stated scope of work, purpose of the appraisal, reporting requirements of this appraisal report and definition of market value. Property rights appraised are the fee simple estate of the subject property. This is a complete appraisal in a narrative format. Date of this appraisal is November 3, 2023, the last date of inspection. Date of report is November 16, 2023. URS - 232098 Page 15 SCOPE OF APPRAISAL The scope of work for this appraisal assignment includes the identification of the appraisal problem, which is the valuation of the subject property as if vacant land as of the date of appraisal. The steps taken in the analysis include: Personal inspection of the property under appraisement. In order to determine the competitive market of the subject, analysis was made of regional and neighborhood data and ascertainment of demographic and economic trends that affect the property and its intended use. In order to determine the competitive market position of the subject, analysis was made of economic trends affecting the property, including supply and demand analysis of properties considered directly competitive in the market, resulting in analysis of highest and best use of the property, both as if vacant and as improved. Description of the property site, including verification with applicable governmental authorities as to land use regulations, utilities, and property taxes, as well as non-invasive inspection and complete description of the physical characteristics of the existing or planned improvements. Please note that the appraisers are not engineers or contractors, and the inspection is limited to a visual inspection as to general quality and condition. While obvious impairments will be brought to the attention of the client, an inspection by a licensed engineer, pest control or other professional is always recommended. Estimation of highest and best use of the site, both as if vacant and as improved. Estimation of value using the sales comparison approach. There is adequate market data to support this approach to market value. In order to apply the sales comparison approach, research was made of sales comparable properties through two real estate sales reporting services and the Property Appraiser's Office. Each sale was verified with a party considered knowledgeable as to the details of the transaction and motivation of the parties, principally with the buyer, seller, real estate broker or manager involved. Qualitative and quantitative adjustments are made to comparable sales in order to obtain an indication of value of the subject. Reconciliation of the value indications, with emphasis placed on the approach(es) considered most reflective of current market activity for final value estimate. URS - 232098 Page 16 VALUATION DEFINITIONS Estate is, “1. An owner’s degree, quantity, nature, and extent of interest or interests in property. There are many different types of estates, including freehold (fee simple, determinable fee, and life estate) and leasehold. To be an estate in land, an interest must allow possession (either now or in the future). See also freehold estate; leasehold estate. 2. The property of an individual at a point in time.”1 As related to property, the terms estate and interest are synonymous for the purpose of this appraisal. Unless otherwise distinguished, the term property indicates real property in this report. Fee simple estate is the property interest represented by, "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat."2 Leased fee estate or interest is, “the ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires.”3 Leasehold estate or interest is, “the right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease.”4 Hypothetical condition is, “(1) a condition that is presumed to be true when it is known to be false. (SVP); or (2) a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purpose of analysis. Comment: hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in analysis. (USPAP, 2020-2021 ed.)”5 As an example, this condition is sometimes applied to an anticipated zoning change. Extraordinary assumption is, “An assignment- specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. Comment: Uncertain information might include physical, legal, or economic characteristics of the subject property, or conditions external to the property, such as market conditions or trends, or about the integrity of data used in an analysis. (USPAP, 2020-2021 ed.)”6 Market Value for the purposes of this appraisal, as defined in the Federal Register, Department of the Treasury Agencies’ appraisal regulations, “the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the 1 Appraisal Institute, The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022, p. 65. 2 Ibid, p. 73. 3 Ibid, p. 105. 4 Ibid, p. 105. 5 Ibid, p. 92. 6 Ibid, p. 68. URS - 232098 Page 17 buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • Buyer and seller are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their own best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and • The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.”7 Market value is also defined as: "The most probable price, as of a specified date, in cash or in terms equivalent to cash, or in other precisely revealed terms for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably, and for self- interest, and assuming that neither is under undue duress."8 Market value is described, not defined, in the Uniform Standards of Professional Appraisal Practice (USPAP) as, “a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the value definition that is identified by the appraiser as applicable in an appraisal.”9 Prospective opinion of value is, “a value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy.”10 Retrospective value opinion is defined as:” A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.”11 7 Federal Register, Department of the Treasury, Interagency Appraisal and Evaluation Guidelines, December 10, 2010, p. 77472. 8 Appraisal Institute, The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022, p. 118. 9 Appraisal Institute, Uniform Standards of Professional Appraisal Practice and Advisory Opinions 2020-2021 Edition, The Appraisal Foundation, USA, 2020, p. 5. 10 Appraisal Institute, The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022, p. 149, 150. 11 Ibid, P. 166 URS - 232098 Page 18 Disposition Value is: “The most probable price that a specific interest in a property should bring under the following conditions. 1. Consummation of a sale within a specified period of time, which is shorter than the typical exposure time for such a property in that market. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both buyer and seller are acting prudently and knowledgeably. 4. The seller is under compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interest. 7. An adequate marketing effort will be made during the exposure time. 8. Payment will be made in cash in US dollars (or local currency) or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.12 Encumbrance is defined as, “any claim or liability that affects or limits the title to property. An encumbrance can affect the title such as a mortgage or other lien, or it can affect the physical condition of the property such as an easement. An encumbrance cannot prevent the transfer of possession, but it does remain after the transfer.”13 Fixture is defined as, “an article that was once personal property but has since been installed or attached to the land or building in a rather permanent manner so that it is regarded in law as part of the real estate.”14 12 Ibid, p. 55 13 Ibid, p. 62. 14 Ibid, p. 75. URS - 232098 Page 19 LEGAL DESCRIPTION The legal description of the subject property obtained from the George F. Young, Inc. survey dated November 7, 2022, the last date of field work. URS - 232098 Page 20 OWNERSHIP AND FIVE-YEAR HISTORY OF SUBJECT PROPERTY A review of the public records indicates that the subject property ownership is in the name of the City of Clearwater, with a mailing address of 600 Cleveland Street, 6th Floor, Clearwater, Florida 33755. According to Official Records, there has been no conveyance since 1957 for the subject parent tract. After response to an RFP published by the City, the property is now under contract, see a few excerpts as follows. PURCHASE PRICE The full Purchase Price of Fifteen Million and Four Hundred Thousand Dollars and no/100s ($15,400,000.00) as shown herein, subject to adjustments pursuant to this Contract and the Development Agreement, has been reached in accordance with the terms of that certain Request for Development Concepts (RFP No. 28-22) for Downtown Clearwater Waterfront Development Opportunities for the old City Hall Site and the Harborview Site, as defined in the Development Agreement. URS - 232098 Page 21 The subject property is in contract for $15,400,000 and was planned for 600 apartment units in two buildings, equivalent to $25,667 per unit. However, the buyers in contract, DeNunzio and Gotham, have reconsidered that plan and are currently in negotiations with the City to reduce the purchase price and the number of units, now anticipating 400 units in one building. No title search was conducted by the appraisers, and the above is provided for informational purposes only and is not warranted. URS - 232098 Page 22 MARKET AREA: LOCATION, DESCRIPTION AND TREND A market area is a geographic area wherein occupants usually have an observable commonality of interests. Market areas can be large areas, equating to an entire county or even a group of counties, depending on the purpose of analysis. Habitats, buildings and business enterprises may be relatively uniform, as in a district or neighborhood, all within a larger market area; that is, a smaller area exhibits a greater degree of commonality than the larger area. For example, there may be a retail district and/or industrial zone within a mixed-use neighborhood which includes residences, and this neighborhood and other connecting neighborhoods and districts may form a larger market area. A market area is the area from which demand for a particular property or use is drawn and will vary by use type. For example, the market area for a community shopping center is larger than the market area for a neighborhood or strip shopping center. There is no set life expectancy for a market area, neighborhood or district, and major changes can interrupt the order of the stages. In some instances, after a period of decline, a neighborhood may undergo a transition to other land uses, or its life cycle may begin again due to revitalization and redevelopment of land or buildings. Social considerations in a market area analysis involve a description of occupants and visitors revealing their reasons and motivations for living, working and visiting within the market area. These reasons may include the market areas reputation, environment and availability and convenience to employment, shopping/service centers and recreation centers. Demographic analysis is often related to driving times and linkages to commonly used supporting properties and facilities, rather than by specific census tracts. A residential neighborhood is typically a group of complementary land uses, such as homes, schools and neighborhood commerce, whereas a district may be characterized by homogenous land uses, such as industrial districts or office districts or high-rise districts. Although a market area may be confined to a neighborhood, a market area is often larger and may include a broad array of land uses and several neighborhoods and census tracts. Some of the smallest areas of commonality may be referred to as traffic analysis zones or commercial nodes which are based on specific traffic routes and particular roadway intersections. Each neighborhood or district has a dynamic quality of its own, which is described as the life cycle of a neighborhood or district. The complementary land uses that comprise neighborhoods and the homogenous land uses that comprise districts typically evolve through four stages. 1. Growth - A period during which the neighborhood gains public favor and acceptance. 2. Stability - A period of equilibrium without marked gains or losses. 3. Decline - A period of diminishing demand. 4. Revitalization - A period of renewal, modernization and increasing demand. The demographic analysis that follows was obtained using information from the Appraisal Institute / Site To Do Business data service. The compiled information is based on forecast modifications to the 2020 census utilized for demographic projections. URS - 232098 Page 23 Market Area The subject neighborhood is the westerly edge of the Central Business District of the City of Clearwater, Florida fronting Clearwater Bay. Commercial development includes restaurants, retail shops, offices, Morton Plant Hospital complex and municipal buildings, and there are several condominium buildings along the waterfront, with Water’s Edge being the tallest in the downtown area. There are single-family homes including new townhomes to the north and south of the downtown area. Clearwater Beach is about two miles west of Clearwater Bluff. Tampa International Airport and the Westshore Business District are 17 miles easterly via SR 60. Customers, clients and employees generally come from a broader market area. The subject is located in the Tampa-St. Petersburg-Clearwater metropolitan statistical area. A Drive Time analysis was prepared using 10, 20 and 30 minute drive times. For the subject property, the broader market area is generally described using a 30-minute drive time from the subject property, which best represents the overall market area in terms of the concentration of potential users and employees. The main transportation route through the market area is US Highway 19, traversing Pinellas County north to south. Primary east-west arteries are SR 60, CR 580 through Oldsmar, US 92/Gandy Bridge linking Pinellas County to south Tampa, Ulmerton Road and Interstate 275, which extends from north of Tampa southerly through St. Petersburg to near Bradenton/Ellenton, and connects with Interstate 75 to both north and south. The westerly terminus of Interstate 4 intersects Interstate 275 near downtown Tampa and extends across the state through Orlando, terminating at Interstate 95 near Daytona Beach. Market Area Boundaries Source: STDB.com URS - 232098 Page 24 Social Influences Population Totals In the identified area, the current year population is 791,394 persons. In 2020, the Census count in the area was 786,419. The rate of change since 2020 was 0.19% annually. The five-year projection for the population in the area is 790,248 representing a change of -0.03% annually from 2023 to 2028. Currently, the population is 48.5% male and 51.5% female. The difference between change in population and change in households is a result of two factors, the presence of group quarters (dormitory or other non-household) population in the market area, and the average number of persons per household. The group quarters population in the market area was 14,350 in 2023, or 1.8 percent of the total population. Population by Education In 2023, the educational attainment of the population aged 25 years or older in the area was distributed as follows: Residents 46,786 195,939 386,672 2023 Total Daytime Population 100,102 407,215 882,350 Workers 53,316 211,276 495,678 2028 Total Population 87,945 389,830 790,248 2023-2028 Annual Rate -0.07%-0.06%-0.03% 2023 Total Population 88,275 390,952 791,394 2023 Group Quarters 3,713 10,052 14,351 2020 Total Population 87,675 388,687 786,419 2020 Group Quarters 3,712 10,030 14,350 Population Summary 2010 Total Population 83,860 373,758 745,071 10 minutes 20 minutes 30 minutes 10 minutes 20 minutes 30 minutes Bachelor's Degree 20.6%21.8%23.2% Graduate/Professional Degree 10.8%12.0%12.2% Some College, No Degree 18.6%19.6%18.8% Associate Degree 9.8%11.0%11.1% High School Graduate 25.0%23.7%23.1% GED/Alternative Credential 5.7%4.7%4.6% Less than 9th Grade 4.0%2.4%2.5% 9th - 12th Grade, No Diploma 5.4%4.7%4.5% 2023 Population 25+ by Educational Attainment Total 66,467 308,546 618,426 URS - 232098 Page 25 Population Characteristics By age group, the percent distribution of the market area population is as follows: The median age in this area is 49.7, compared to U.S. median age of 39.1. Households The household count in this area has changed from 359,185 in 2020 to 363,384 in the current year, a change of 0.36% annually. The five-year projection of households is 365,999, a change 10 minutes 20 minutes 30 minutes 85 +3.5%4.5%3.9% 18 +82.4%85.1%84.6% 65 - 74 13.5%15.9%15.0% 75 - 84 7.6%10.0%9.0% 45 - 54 12.3%11.7%12.2% 55 - 64 14.7%15.3%15.3% 25 - 34 11.9%10.6%11.3% 35 - 44 11.8%10.9%11.4% 10 - 14 5.1%4.4%4.5% 15 - 24 10.1%8.9%9.2% 0 - 4 4.7%3.7%3.9% 5 - 9 4.8%4.0%4.2% 2023 Population by Age Total 88,276 390,950 791,393 10 minutes 20 minutes 30 minutes 2028 47.0 52.6 50.4 2023 46.4 51.6 49.7 2020 45.9 50.3 48.3 2010 42.9 47.1 45.9 Median Age 10 minutes 20 minutes 30 minutes Widowed 7.8%8.8%8.2% Divorced 15.2%14.9%14.1% Never Married 32.6%28.4%29.5% Married 44.4%47.9%48.1% 2023 Population 15+ by Marital Status Total 75,356 343,230 691,399 URS - 232098 Page 26 of 0.14% annually from the current year total. Average household size is currently 2.14, compared to 2.15 in the year 2020. The number of families in the current year is 191,324 in the specified area. Housing Currently, 58.6% of the 418,399 housing units in the area are owner occupied; 28.3%, renter occupied; and 13.1% are vacant. Currently, in the U.S., 58.5% of the housing units in the area are owner occupied; 31.7% are renter occupied; and 9.8% are vacant. In 2020, there were 415,402 housing units in the area and 13.5% vacant housing units. The annual rate of change in housing units since 2020 is 0.22%. 2023-2028 Annual Rate 0.12%0.13%0.14% 2028 Households 38,638 182,495 365,999 2028 Average Household Size 2.18 2.08 2.12 2023 Households 38,412 181,296 363,384 2023 Average Household Size 2.20 2.10 2.14 2020 Total Households 37,837 179,076 359,185 2020 Average Household Size 2.22 2.11 2.15 2010 Households 36,026 170,839 336,610 2010 Average Household Size 2.24 2.13 2.17 Household Summary 10 minutes 20 minutes 30 minutes 2028 Average Family Size 2.87 2.73 2.76 2023-2028 Annual Rate 0.08%0.10%0.12% 2023 Average Family Size 2.89 2.75 2.78 2028 Families 21,004 100,408 204,274 2010 Average Family Size 2.92 2.77 2.79 2023 Families 20,923 99,889 203,048 2010 Families 19,899 95,494 191,324 Families Summary 10 minutes 20 minutes 30 minutes URS - 232098 Page 27 Vacant Housing Units from this data often includes second homes, vacation homes, homes for sale and for rent, and housing in transition for razing or remodeling. Median home value in the area is $320,837, compared to a median home value of $308,943 for the U.S. In five years, median value is projected to change by 0.94% annually to $336,206. Rental Housing Please see following information on the future demand in the Tampa Bay market from U.S. Apartment Demand Through 2035; 193 pages, Hoyt Advisory Services, Eigen10 Advisors, LLC, May 2022; 50 Metro areas included; Norman G. Miller lead author; commissioned by National Apartment Association and National Multi-Family Housing Council. 10 minutes 20 minutes 30 minutes Vacant Housing Units 15.2%14.5%13.2% Owner Occupied Housing Units 52.0%58.4%59.2% Renter Occupied Housing Units 32.8%27.1%27.7% Vacant Housing Units 15.3%14.5%13.1% 2028 Housing Units 45,587 213,386 421,434 Owner Occupied Housing Units 51.2%57.7%58.6% Renter Occupied Housing Units 33.5%27.8%28.3% Vacant Housing Units 15.9%14.9%13.5% 2023 Housing Units 45,370 212,074 418,399 Owner Occupied Housing Units 48.2%55.8%56.2% Renter Occupied Housing Units 36.2%29.3%30.3% Vacant Housing Units 19.0%17.4%16.4% 2020 Housing Units 44,847 210,397 415,402 Owner Occupied Housing Units 46.9%55.9%56.7% Renter Occupied Housing Units 34.1%26.7%26.9% Vacant Housing Units 12.9%13.5%12.9% 2010 Housing Units 44,455 206,847 402,807 Owner Occupied Housing Units 55.0%61.8%62.6% Renter Occupied Housing Units 32.0%24.6%24.4% Housing Unit Summary 2000 Housing Units 42,160 196,948 380,414 2023 $328,257 $314,620 $320,837 2028 $340,884 $327,434 $336,206 Median Home Value 10 minutes 20 minutes 30 minutes URS - 232098 Page 28 URS - 232098 Page 29 RANKING and DEFINITIONS: METRO RANKING is the relative rank among 50 multifamily metro markets based upon the average of HAS forecasted total 5+ multifamily demand 2021-2035 and the percentage growth in that demand, ranging from 1 (Austin) to 50 (Cleveland). AFFORDABILITY INDEX is the % of renters who are paying less than 35% of gross income on rent, based on the U.S. Census American Community Survey, 2020 five year average figures. Higher numbers indicate more affordable markets. This index ranges from 47 (Miami) to 66 (Columbus) with a Metro average of 60. MF SUPPLY / RESTRICTIONS is an average ranking of the increase in 5+ rental stock from 2011 to 2021 and the excess percentage growth in stock delivered as compared to percentage growth in rental households from 2011-2021. High rankings (1) indicate high growth markets in which supply is at least keeping pace if not exceeding demand whereas low rankings (50) indicate slow growth markets and/or where supply from 2011-2021 was less than demand. STAR SHARE is that share of Metro rental housing stock with five or more units HAS qualified as *Second-Tier Affordable Rentals or those non-institutional sites of typically lower unit count, lower quality and greater age, a critical and ongoing multifamily supply component. Using CoStar® ratings of 1-5 for sites of five units or more, STAR is the lower ratings of 1-2. This share ranges from 64% (Los Angeles) to 12% (Austin) with a Metro average of 36%. URS - 232098 Page 30 Per Capita and Household Income Current per capita income is $43,287 in the area, compared to the U.S. per capita income of $41,310. The per capita income is projected to be $51,059 in five years, compared to $47,525 for all U.S. households. Current median household income is $63,337 in the area, compared to $72,603 for all U.S. households. Median household income is projected to be $75,557 in five years, compared to $82,410 for all U.S. households. Current average household income is $94,032 in this area, compared to $107,008 for all U.S. households. Average household income is projected to be $109,999 in five years, compared to $122,048 for all U.S. households. 10 minutes 20 minutes 30 minutes 2028 $44,802 $49,537 $51,059 Per Capita Income 2023 $37,817 $42,011 $43,287 2028 $65,264 $71,970 $75,557 Median Household Income 2023 $55,123 $60,458 $63,337 10 minutes 20 minutes 30 minutes $200,000+6.7%6.9%7.5% Average Household Income $86,272 $90,299 $94,032 $100,000 - $149,999 14.2%15.3%15.8% $150,000 - $199,999 6.2%6.5%6.7% $50,000 - $74,999 15.9%17.8%18.0% $75,000 - $99,999 11.4%12.7%13.1% $25,000 - $34,999 8.9%8.5%8.2% $35,000 - $49,999 13.0%12.9%12.7% <$15,000 14.8%11.1%10.2% $15,000 - $24,999 9.0%8.3%7.7% 2023 Households by Income Household Income Base 38,412 181,295 363,383 10 minutes 20 minutes 30 minutes URS - 232098 Page 31 The following household ratio descriptions have not likely changed significantly from 2020, current data was not available. 10 minutes 20 minutes 30 minutes $2,000,000 +2.0%1.0%0.9% Average Home Value $420,884 $365,309 $370,829 $1,000,000 - $1,499,999 3.1%2.0%2.0% $1,500,000 - $1,999,999 1.2%0.8%0.7% $500,000 - $749,999 9.6%9.4%10.6% $750,000 - $999,999 4.1%3.2%3.2% $300,000 - $399,999 25.4%24.7%24.1% $400,000 - $499,999 11.6%12.5%13.6% $200,000 - $249,999 9.2%7.5%8.0% $250,000 - $299,999 12.3%12.2%11.6% $100,000 - $149,999 3.5%4.7%5.4% $150,000 - $199,999 7.5%6.1%6.7% <$50,000 5.4%9.1%7.5% $50,000 - $99,999 4.9%6.7%5.9% 2023 Owner Occupied Housing Units by Value Total 23,225 122,444 245,071 10 minutes 20 minutes 30 minutes 7 + Person Household 0.8%0.6%0.6% 5 Person Household 3.9%3.3%3.4% 6 Person Household 1.6%1.2%1.3% 3 Person Household 13.4%12.4%13.0% 4 Person Household 8.8%8.2%8.8% 1 Person Household 35.1%36.0%35.2% 2 Person Household 36.3%38.2%37.6% 2020 Households by Size Total 37,837 179,076 359,185 URS - 232098 Page 32 Economic Influences Economic considerations involve the financial capacity of a neighborhood’s occupants to rent or own property, to maintain it in an attractive and desirable condition, and to renovate or rehabilitate it when needed. In general, residential property values declined during the recession of 2008-2009, but have continued to improve since about 2012. The area is expected to continue with stable to increasing population levels and corresponding growth of housing units. 10 minutes 20 minutes 30 minutes Without Own Children <18, With Relatives 6.7%6.2%6.1% No Relatives Present 1.5%1.3%1.4% 65 Years and over 9.3%12.0%10.7% With Own Children <18 5.1%3.8%3.9% Female Householder, No Spouse/Partner 31.8%32.0%31.3% Living Alone 18.5%20.8%19.9% Without Own Children <18, With Relatives 3.0%2.5%2.6% No Relatives Present 1.9%1.6%1.7% 65 Years and over 5.7%6.2%5.6% With Own Children <18 1.4%1.2%1.3% Male Householder, No Spouse/Partner 22.9%20.6%20.8% Living Alone 16.6%15.2%15.2% With Own Children <18 2.3%1.8%1.9% Without Own Children <18 5.9%5.9%6.2% Without Own Children <18 27.0%29.8%29.1% Cohabitating Couple Households 8.2%7.7%8.1% Married Couple Households 37.1%39.8%39.9% With Own Children <18 10.1%10.0%10.8% 2020 Households by Type Total 37,837 179,076 359,185 URS - 232098 Page 33 Business Climate and Economic Activity In the market area, there is an approximate employee ratio of 66.4% White-collar occupations, 24.0% Professionals, 16.4% Services, and 17.2% Blue Collar. The ten basic industries and the participation in the market are reflected in the chart below. The Services industry makes up the largest employment pool with 51.8% of the total work force. 10 minutes 20 minutes 30 minutes Production 3.6%4.2%4.8% Transportation/Material Moving 5.8%5.8%5.8% Construction/Extraction 4.9%3.7%3.5% Installation/Maintenance/Repair 2.8%3.1%2.9% Blue Collar 17.3%16.9%17.2% Farming/Forestry/Fishing 0.0%0.1%0.1% Administrative Support 11.6%13.1%12.5% Services 19.2%17.1%16.4% Professional 23.2%23.4%24.0% Sales 10.2%10.1%10.2% White Collar 63.5%66.1%66.4% Management/Business/Financial 18.5%19.4%19.6% 2023 Employed Population 16+ by Occupation Total 42,098 195,054 407,320 Services 53.0%52.5%51.8% Public Administration 4.3%3.9%3.6% Information 1.1%1.6%1.7% Finance/Insurance/Real Estate 9.0%9.5%9.8% Retail Trade 11.9%11.7%11.7% Transportation/Utilities 5.8%5.2%4.9% Manufacturing 5.8%7.5%8.1% Wholesale Trade 2.1%2.0%1.9% Agriculture/Mining 0.0%0.2%0.2% Construction 6.9%5.9%6.2% 2023 Employed Population 16+ by Industry Total 42,101 195,054 407,319 10 minutes 20 minutes 30 minutes URS - 232098 Page 34 The following chart indicates 12-month employment changes on non-farm payrolls for Tampa MSA and the U.S. Notice the dramatic upward change after the negative Covid effect on jobs in mid-2020 and the relatively quick recovery. Second chart is year over year change. In September 2023, the unemployment rate for Florida was 2.8% from a civilian labor force of about 11.154 million. The U.S. unemployment rate was 3.8% in September 2023. Please see following link describing Miami area with 1.5% unemployment and other Florida employment statistics. https://floridajobs.org/news-center/DEO-Press/2023/10/20/floridacommerce-announces-the-miami- area-september-2023-employment-data The subject four-county MSA unemployment in September 2023 was 3.2%. County unemployment rates for September 2023 were 3.1% in Hillsborough County, 3.0% in Pinellas, 3.5% in Pasco and 4.1% in Hernando County, all higher than September 2022. Please see chart of historical unemployment trends for the subject MSA. URS - 232098 Page 35 Household Disposable Income – 10 Minute Drive (20 and 30 minute area percentages are similar to 10 minute Average Disposable Income) Census 2020 87,675 45.9 37,837 2.22 75+ 6,268 1,168 1,034 923 1,032 878 410 510 167 148 $35,100 $52,946$82,527 $74,499 $64,340Average Disposable Income $39,277 $61,070 $73,772 307 390 310 Median Disposable Income $30,151 $47,285 $55,745 $63,286 $54,007 $42,964 $200,000+4 102 215 1,046 1,123 812 $150,000-$199,999 2 92 256 376 425 317 $100,000-$149,999 55 559 957 1,035 1,289 1,322 $75,000-$99,999 58 459 523 814 868 620 $50,000-$74,999 201 910 1,099 498 673 891 $35,000-$49,999 200 665 729 774 958 1,130 $25,000-$34,999 157 535 519 662 1,205 1,417 $15,000-$24,999 225 465 358 356 691 825 <$15,000 267 642 755 45-54 55-64 65-74 Total 1,169 4,431 5,411 5,868 7,621 7,644 2023 Disposable Income by Age <25 25-34 35-44 Number of Households $48,037 Average Disposable Income $67,463 Median Disposable Income 1,636 4.3% $200,000+1,476 3.8% $150,000-$199,999 3,751 9.8% $100,000-$149,999 5,062 13.2% $75,000-$99,999 5,487 14.3% $50,000-$74,999 6,733 17.5% $35,000-$49,999 3,954 10.3% $25,000-$34,999 4,196 10.9% $15,000-$24,999 38,412 100.0% <$15,000 6,117 15.9% Total 2023 Households by Disposable Income Number Percent 226 0.12% Average Household Size 2.20 2.18 -0.02 -0.18% Households 38,412 38,638 -330 -0.07% Median Age 46.4 47.0 0.6 0.26% Population 88,275 87,945 2023-2028 2023-2028 2023 2028 Change Annual Rate URS - 232098 Page 36 Household Consumer Spending – Goods and Services 10 minutes 20 minutes 30 minutes Spending Potential Index 83 87 91 Vehicle Maintenance & Repairs: Total $$41,848,110 $206,041,989 $430,984,313 Average Spent $1,089.45 $1,136.49 $1,186.03 Average Spent $1,789.22 $1,888.08 $1,969.54 Spending Potential Index 80 84 88 Spending Potential Index 83 90 92 Travel: Total $$68,727,402 $342,301,445 $715,698,077 Support Payments/Cash Contributions/Gifts in Kind: Total $$99,492,479 $510,112,561 $1,050,926,576 Average Spent $2,590.14 $2,813.70 $2,892.06 Average Spent $20,240.27 $21,129.28 $21,932.39 Spending Potential Index 82 85 89 Spending Potential Index 83 88 91 Shelter: Total $$777,469,401 $3,830,653,587 $7,969,878,978 Personal Care Products & Services: Total $$30,631,334 $151,720,022 $315,575,352 Average Spent $797.44 $836.86 $868.43 Average Spent $2,395.48 $2,511.90 $2,617.09 Spending Potential Index 81 85 89 Spending Potential Index 84 89 92 HH Furnishings & Equipment: Total $$92,015,094 $455,396,642 $951,007,482 Health Care: Total $$237,106,589 $1,186,543,210 $2,462,309,631 Average Spent $6,172.72 $6,544.78 $6,776.05 Average Spent $3,017.64 $3,117.33 $3,262.34 Spending Potential Index 81 84 88 Spending Potential Index 83 86 89 Food Away from Home: Total $$115,913,573 $565,158,676 $1,185,483,803 Food at Home: Total $$216,319,884 $1,058,919,112 $2,201,906,387 Average Spent $5,631.57 $5,840.83 $6,059.45 Average Spent $3,058.40 $3,225.43 $3,358.41 Spending Potential Index 81 85 89 Spending Potential Index 78 80 84 Entertainment/Recreation: Total $$117,479,423 $584,757,097 $1,220,393,535 Education: Total $$53,627,485 $261,620,534 $545,326,413 Average Spent $1,396.11 $1,443.06 $1,500.69 Average Spent $1,795.09 $1,827.94 $1,914.86 Spending Potential Index 82 83 87 2023 Consumer Spending Apparel & Services: Total $$68,952,883 $331,398,621 $695,829,365 URS - 232098 Page 37 Governmental Influences The subject market area covers about 75% of Pinellas County. The market area is governed by several municipalities and Pinellas County for future land use plans and various municipal zoning codes. The purpose and primary effect of the Future Land Use Plan is to provide a general outline for growth for a given area in an attempt to support and provide for orderly growth within the state. The implementation of this land use plan has the effect of eventually requiring the zoning ordinances to comply with the plan within a reasonable time. The designations, therefore, of the land use plan should be viewed as the long-term intentions with respect to a given land area and its boundaries. Most commercial land uses are designated along major traffic arteries and at commercial nodes within the market area, which are surrounded by residential uses. The governmental tax burdens within the market area appear to be in proportion to the governmental services provided including road and drainage infrastructure, however, designated areas may be specially assessed for needed infrastructure updating. Environmental Influences Property uses within the broader market area include residential uses, primarily single-family homes, secondarily multi-family apartments/condos and supporting commercial uses with industrial and business park districts. Grocery stores, professional and medical offices, banking services and restaurants are all accessible throughout the market area. Places of worship, schools, public libraries, golf courses and nearby Gulf beaches are also convenient. Fire and police protection appear to be adequate. Conclusion Outlook for the neighborhood and broader market is overall long-term positive. Commercial and residential properties have exhibited improved occupancy rates and are near capacity, and new and redeveloped commercial and residential properties are evident in this market. Given a subtropical climate, access to nearby beaches and other attractive features, the greater market area is considered an important tourism destination in addition to a typical economic area with its production of goods and services. In the market area, commercial land is approximately 95% built-up and the residential land is approximately 95% built-up, reflecting an urban populated area. The population base within and surrounding the market area provides a significant employee pool and consumer base. Population is expected to be stable to slightly increasing over the foreseeable future. The overall location, the area economy and overall demographic trends for the longer term favorably influence the subject neighborhood and the market area, and no adverse factors are noted. URS - 232098 Page 38 REAL PROPERTY ASSESSMENTS AND TAXES The subject parcel identification and assessments are obtained from the Property Appraiser’s office as noted below. The subject is currently owned by the City of Clearwater and is tax exempt. The assessed value below is for one of three parent tract parcels, a total of approximately 23 acres. The subject is 2.60 acres of an approximate 8.8-acre southerly parent parcel. The parent parcels are tax exempt as municipal ownership. The 2023 millage rate for the ad valorem taxes on real property is 20.2462 mils in the subject district. Real Property Assessments and Tax Exempt 2023 Parcel Number Assessed Value Non-Ad Valorem Total Gross Tax Total Net Tax 16-29-15-20358-001-0040 $22,851,832 $ 0 $ 0 $ 0 Totals $22,851,832 $ 0 $ 0 $ 0 Assessed values are based on a property’s condition as of January 1 of each year and are preliminary until certified to the Florida Department of Revenue in June. The county Property Appraiser first estimates a market or just value, then applies various caps or exemptions to arrive at taxable values, which may vary among taxing authorities. The 10% cap on annual assessment increases for commercial properties while under the same ownership does not apply to school board taxes. Non-Ad Valorem taxes are not based on value but are typically fixed amounts for a fire, lighting, road or water district. Therefore, it may not be possible to estimate taxes by simply multiply the assessed value by the millage rate. The tax millage rate in a geographic district is determined by the amount of funds necessary to provide all governmental services, such as schools, police, fire/rescue, library, etc., divided by the overall tax base. A Truth in Millage (TRIM) notice setting forth proposed taxes is sent to property owners in August, with an appeal period through September. The final millage rate is established by each county commission in October, and property tax invoices are then mailed to owners for earliest payment during November. Property taxes in Florida are due by March 31, but may be paid as early as November 1, when a 4% discount is allowed. The discount decreases by 1% per month until March, when there is no discount. Prudent property owners typically take advantage of the 4% discount and pay real estate taxes in November, rather than in March of the following year. Taxes become delinquent April l, after which time a penalty is imposed. Certificates for delinquent taxes are auctioned approximately 60 days from delinquency, and the holder of a tax certificate may seek foreclosure to recoup investment or to acquire title in approximately 22 months if taxes and penalties remain unpaid. URS - 232098 Page 39 LAND USE AND ZONING CLASSIFICATION The Land Use plan sets forth the physical plans for growth and development of a community. The primary thrust of the Plan is to determine the overall development of the county, where it was, where it is today and how the future land use patterns and policies will reflect and meet the needs of growth tomorrow, and zoning is a specifically delineated area or district within which regulations and requirements uniformly govern the use, placement, spacing and size of land and buildings. The Land Use Plan and Zoning work hand in hand and must be compatible in intent prior to development of any property. In the event of pre-existing conditions of lot or building non-conformities, a property may be considered legally conforming per a “grandfather” rule. Pre-existing conditions in compliance, which predate adoption of zoning regulations or become non-conforming by virtue of right-of- way changes, typically will place the property in a special exception category as legally non- conforming. Future Land Use Plan According to the City of Clearwater Future Land Use, from the documentation and mapping by the Planning Commission, the area of the subject site is located in a Central Business District CBD, which permits a variety of commercial and residential uses. With respect to the surrounding, existing land use and the subject’s proposed use, the subject property is presently compatible with the general Comprehensive Land Use Plan. The zoning intention is to create a mixed-use development of residential, retail, office, beverage sales, restaurants, hotels/motels, etc. amongst public/institutional uses, which would customarily be found in a downtown area. The regulation creates latitude of density, height and uses for larger assembled properties and the City has created multi-family density pools that are also available. The city is flexible with expanding development regulations in regard to fulfilling the Imagine Clearwater project in the subject vicinity. URS - 232098 Page 40 Zoning Downtown (D) The intent and purpose of the Downtown District and Development Standards is to encourage mixed use, pedestrian-oriented development, promote context-sensitive forms, patterns, and intensities of development, support a variety of new housing types to provide for a range of affordability and mix of incomes, preserve and celebrate the unique features of Downtown's community and neighborhoods, encourage the renovation, restoration and/or reuse of existing historic structures, and provide for the design of safe, attractive, and accessible places for working, living, and shopping consistent with the vision, guiding principles, goals, objectives and policies in the Clearwater Downtown Redevelopment Plan. The intent and purpose of the Downtown District and Development Standards is to guide the development and redevelopment of sites in Downtown Clearwater consistent with the vision, guiding principles, goals, objectives and policies in the Clearwater Downtown Redevelopment Plan to achieve quality urban and architectural design throughout Downtown and provide regulatory clarity and predictability for property owners, investors, residents, and business owners. The standards are designed to accomplish the following: •Encourage mixed use, pedestrian-oriented development; •Promote context-sensitive forms, patterns, and intensities of development; •Support a variety of new housing types to provide for a range of affordability and mix of incomes; •Preserve and celebrate the unique features of Downtown's community and neighborhoods; •Encourage the renovation, restoration and/or reuse of existing historic structures: and •Provide for the design of safe, attractive, and accessible places for working, living, and shopping. The Downtown Core Character District is intended for high intensity mixed-use, office, and residential development in buildings with active ground floor uses opening onto pedestrian- friendly streetscapes. Standards are designed to support a dense urban pattern of development with buildings façades aligned along public sidewalks and parking primarily located within buildings behind active uses and behind buildings. Properties adjacent to the Pinellas Trail are designed to provide pedestrian and bicycle connections to the trial. 75 du/ac (maximum base density in Downtown Core) + 30 du/ac (40% density bonus, min. 50% units residential rental) 105 du/ac (105 dwelling units permitted) 4.0 FAR (maximum base intensity in Downtown Core) + 1.0 FAR (25% FAR bonus, min. 25% of building's rentable floor area is dedicated to office use and is Class A Office space 5.0 FAR (217,805 SF permitted) URS - 232098 Page 41 Downtown District Zoning and Land Use Conformity The above zoning and land use information represents a brief review of the zoning regulations. Although the jurisdiction has rather straightforward zoning regulations, the regulations can be rather complex and interrelated, and not all factors potentially affecting the subject property can be shown. The reader is advised to consult the zoning regulation and department personnel for an optimum understanding of these regulations, 727-562-4604. URS - 232098 Page 42 CONCURRENCY AND IMPACT FEES The 2011 Amendments to Chapter 163, Florida Statutes, required local governments to adopt comprehensive land use plans that include minimum specified levels of service for four types of public services and facilities, including sanitary sewer, stormwater, potable water and solid waste. Chapter 163 also prohibits local governments from issuing development permits if levels of service are below the specified level or if the development’s impact would cause levels of service to fall below the specified levels. This means that the availability of public facilities must be concurrent with the impacts of the development. The original concurrency requirements became effective in January 1990. A local government may extend the concurrency requirement so that it applies to additional facilities within its jurisdiction such as schools, transportation including mass transit, and parks and recreation. According to employees of the Planning and Land Use/Zoning Department, it does not appear that concurrency guidelines would adversely affect typical development on the subject site. Impact fees The local and county jurisdictions charge water, sewer and transportation impact fees on new development. Redevelopment is charged the difference between the fees required under the new classification and those required under the previous classification. Permit and Service Fees Each jurisdiction typically has several departments monitoring the various aspects of property development. Additional permit fees, plan review fees, hookup charges, inspection fees, service fees, deposits, and special fees, such as, tree removal/replacement charges, may all be applicable to new construction. If all impact fees, permit fees, and service charges are applicable to a development, then the total cost is typically between 2% and 5% or more of the total project’s development costs, including land and improvements. URS - 232098 Page 43 SITE DESCRIPTION Data sources for this site description include information provided by the Property Appraiser’s office, other public records, a personal inspection by the appraisers and review of survey copy dated November 2022 from George F. Young, Inc. Site Description The subject is located at the northwest corner of the two streets, extending approximately 387.07 feet east to west along Pierce Street and 285.04 feet north to south along South Osceola Avenue. The west boundary is 300.62 feet. The site is generally rectangular and contains approximately 113,256 square feet or 2.60 acres. The subject has good elevation, being on the Bluffs, and views of the bay would be available from virtually any multi-story development on the site. The site is approximately two miles from the beach and there are protected lanes on either side of Clearwater Bridge for walking, running or bicycling. Subject at northwest corner of Pierce Street and South Osceola Avenue Soil is sandy, typical for the area, and it is assumed that no adverse subsoil conditions exist. Municipal potable water and wastewater disposal are available to the site, as are electric and telephone services. There are no known impediments to development. Drainage and utility easements appear typical. Property Characteristics Land Area 113,256 square feet or 2.60 acres per survey Site Configuration Rectangular Dimensions Please see Young survey below. The subject parcel is part of larger municipal waterfront parcel. URS - 232098 Page 44 Terrain/Vegetation Generally level on a bluff with slight slope westerly toward Clearwater Bay, and with a retaining wall and a 20 foot+ drop to a lower level at the west boundary. Vegetation is minimal. Elevation Site elevations are generally between 29 feet and 31 feet above MSL per survey. Soil Conditions Appears to be sandy to sandy loam, typical for the area. No subsidence was noted, but many areas of Florida are susceptible to soil issues, and a geotechnical investigation by a professional engineer is always recommended. Access Pedestrian and vehicular access is currently along both South Osceola Avenue and Pierce Street Flood Zone “X”, minimum flood risk, above 100-year flood plain FEMA Map Panel 12103C0108J, dated August 24, 2021 Drainage Sheet flow and typical run-off into municipal stormwater system Potable water City of Clearwater Sewer City of Clearwater Garbage collection City of Clearwater or private vendor Electricity Duke Energy Telecommunications Frontier, Spectrum and others Police protection City of Clearwater Fire protection City of Clearwater Fire Department and nearest facility is Fire Station 45 at 1130 Court Street, 727- 562-4334, approximately one mile ESE. George F. Young Survey 11/22 Mean LF E-W Lineal Feet 387.17 387.07 387.12 N-S Lineal Feet 300.20 285.04 292.62 Square Feet 113,256 Acres 2.60 URS - 232098 Page 45 Public transportation PSTA Emergency medical service Pinellas County Encumbrances According to the copy of the November 2022 survey provided, there is a utility easement in the northwest corner tip of the subject property. Other utility easements may be present and should not negatively affect the property for redevelopment. The appraiser is not aware of title encumbrances, easements, encroachments, deed restrictions, covenants, association rules, special assessments or other possible encumbrances which may adversely affect title to the subject property. No title search information has been presented to the appraiser. Survey of Old City Hall – November 2022 by George F. Young, Inc. Certified to Gotham Property Acquisitions, LLC and The Denunzio Group, LLC URS - 232098 Page 46 URS - 232098 Page 47 URS - 232098 Page 48 URS - 232098 Page 49 FEMA Flood Map Subject site is in “X Zone” and subject parent westerly tract is in “AE Zone” URS - 232098 Page 50 IMPROVEMENT DESCRIPTION The subject property was formerly improved with the Old City Hall building. The building has been demolished. Based on County Property Appraiser Records The approximate 25,000 square foot, three story building has been demolished and removed. Site Improvements Site improvements consist of asphalt paving to the east and recent sod to the west, plus underground laterals for potable water and waste water, not in use. The site improvements have negligible contributory value. Personal Property No personal property is applicable. URS - 232098 Page 51 MARKETABILITY AND ESTIMATED MARKETING PERIOD Marketability looks at the market appeal of the subject property; more specifically, it analyzes and supports a reasonable marketing period to affect the sale of the subject property. Included in this analysis is a discussion of supply, competition, and demand of the subject property and competitive properties located within the market area. Marketability is defined as, “the relative desirability of a property (for sale or lease) in comparison with similar or competing properties in the area.”15 That is, a property with good marketability has superior features or condition in comparison with competing properties. A marketability study is “a microeconomic study that examines the marketability of a given property or class of properties, usually focusing on the market segment(s) in which the property is likely to generate demand. Marketability studies are useful in determining a specific highest and best use, testing a specific highest and best use, testing development proposals, and projecting an appropriate tenant mix.”16 While this type of study is typically quite detailed and specific, a brief version is part of the highest and best use analysis of every appraisal. A marketability analysis is defined as, “the study of how a specific property is expected to perform in a specific market. A marketability analysis expands on a market analysis by addressing a specific property.”17 Market value estimates imply that an adequate marketing effort and reasonable time for exposure occurred prior to the effective date of the appraisal. Exposure time is, “(1) the time a property remains on the market, or (2) the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Exposure time is always presumed to occur prior to the effective date of the appraisal.”18 “Exposure time is different for various types of property and under various market conditions. It is noted that the overall concept of reasonable exposure encompasses not only adequate, sufficient, and reasonable time but also adequate, sufficient, and reasonable effort. This statement focuses on the time component. The fact that exposure time is always presumed to occur prior to the effective date of the appraisal is substantiated by related facts in the appraisal process: supply/demand conditions as of the effective date of the appraisal; the use of current cost information; the analysis of historical sales information (sold after exposure and after completion of negotiations between the seller and buyer); and 15 Appraisal Institute, The Dictionary of Real Estate Appraisal, Sixth Edition, Appraisal Institute, Chicago, Illinois, 2015, p. 138. 16 Appraisal Institute, The Dictionary of Real Estate Appraisal, Fifth Edition, Appraisal Institute, Chicago, Illinois, 2010, p. 120. 17 Appraisal Institute, The Dictionary of Real Estate Appraisal, Sixth Edition, Appraisal Institute, Chicago, Illinois, 2015, p. 138. 18 Ibid, p. 82. URS - 232098 Page 52 the analysis of future income expectancy projected from the effective date of the appraisal.”19 Marketing time is defined as, “an opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of the appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal.”20 Strengths & Weaknesses Strengths of the subject include a good developable site in a downtown area. The subject site provides good views of Clearwater Bay and the Gulf of Mexico and has good visibility at a non- signalized corner. Also, the subject has potential high density for multi-family development per city approval. Weaknesses of the subject are negligible other than being located with frontage on two relatively narrow two-lane streets. Market Participant Interviews In addition to reviewing periodic commercial reports of the Tampa Bay area real estate activity by such firms as Cushman and Wakefield, CBRE, Colliers International, Marcus & Millichap Eshenbaugh Land Company, Framework Group, and others, we have interviewed brokers and market participants familiar with the market. Some of the more pertinent discussions as relates to the subject are noted below. Bill Eshenbaugh of Eshenbaugh Land Company and Bruce Erhardt of Cushman & Wakefield both indicated that there have been fewer deals for land acquisition than during 2020 and 2021 and early 2022. Higher finance costs for land acquisition and development, increasing construction costs for materials and labor and insurance expense for end product have all become a concern for rental apartment developers. Also, increasing regulations have become deterrents for many potential apartment land buyers as previous profit ratios are being trimmed. However, rental demand continues, with wages being better than a few years ago and with many potential home buyers unable to purchase a home due to higher mortgage costs and a general short supply of affordable homes. All of these recent events and the continued population influx into Tampa Bay Metro have placed pressure on developers and investors. Phillip Smith, President of Framework Group, a well experienced development team based in Tampa, indicated that, although the site is generally attractive, with a location near quality beaches and within a downtown neighborhood, there are challenges due to the high cost of development and unproven rent levels in the Clearwater CBD market. He indicated that a two phase development, two buildings with a total of 400 rental units is likely more economically feasible than a single phase with one building. He believes that end use demand for rental 19 Appraisal Institute, Uniform Standards of Professional Appraisal Practice and Advisory Opinions 2006 Edition, The Appraisal Foundation, USA, 2006, p. 90. 20 Appraisal Institute, The Dictionary of Real Estate Appraisal, Sixth Edition, Appraisal Institute, Chicago, Illinois, 2015, p. 140. URS - 232098 Page 53 apartments will continue in Tampa Bay, but that rent increases will not be at the level experienced in the past few years. He felt a $4.00 per square foot per month apartment rent is a likely threshold for developers to proceed with developments. Such rate is quoted as an asking rate for better, smaller units in downtown areas of St. Petersburg and Tampa, but larger units are typically priced lower. Matt Everett of Newmark Realty Group indicated there has been a significant decrease in the price level for multi-family development land values. He cited the rise in construction costs, higher cost of capital, flattening rental rates and increased insurance costs of the end product, all tend to affect the investor market for stabilized acquisitions. Yogesh Melwani of Align Commercial Real Estate is marketing Comparable No. 13 in this report located on the east side of Tampa Bay in south Hillsborough County and he mentioned that the previous low interest rates spoiled the consumer for housing ownership and spoiled many developers to engage new projects without previously attractive costs of capital. Robb Frye, Senior Director of Development for Southern Land Company, who is under development of a high-rise rental apartment tower on Las Olas in Ft. Lauderdale, says they are struggling with their budget and do not expect a similar development to be feasible until interest rates decline and rental rates increase. Rental rates of $4.00 per square foot are necessary to make the numbers work, and Clearwater rents are well below that target. Recent Shifts In Commercial Real Estate Dollar Volumes LoopNet article, CRE Sales Plummet in Q1 as Expected; Here’s What to Focus on Next, April 19, 2023. Data confirms what CRE professionals suspected over the first quarter of 2023: CRE sales have stalled. Transaction volume was off significantly for office, retail, multifamily and industrial assets combined, contracting by -60.3% quarter-over- quarter and -64.3% year-over-year, according to CoStar, the publisher of LoopNet. Dollar volume moved from $116 billion to $46 billion and $129 billion to $46 billion respectively. Year-over-year volume declined the most for office assets (-72.2%) and quarter-over-quarter volume declined most for industrial properties (-69.4%). “We're in a stale period where people are waiting to see what happens, which is why there's no transaction volume,” said Chad Littell, national director of U.S. capital markets analytics at CoStar. But for perspective on these first quarter figures, he noted that they are being compared to last year’s peak transaction numbers. “We’re coming off really robust transaction volume in the fourth quarter of 2021,” with $239 billion trading hands, making the first quarter contraction appear starker. “The decline in transaction volume is less pronounced when comparing the first quarter of 2023 to the five-year pre-outbreak period.” Key conditions contributing to the decline include flat or falling rents, higher operating costs from rising inflation and increased capital costs that have caused values to decline. Sellers and buyers can’t agree on pricing and lenders have pulled back significantly from CRE lending. URS - 232098 Page 54 Reasonable Exposure and Marketing Period for Subject The appraiser must analyze historical data and future projections in order to estimate historical market exposure time and the future marketing period. According to owners and brokers active in the subject’s market area and in similar markets, it was revealed that there is an increasingly active market for this type of property throughout the area and in the subject’s local market. The presence of an active market was supported by review of data obtained from the Property Appraiser’s office for transfer of such properties. During the last few years, the marketing period for similar properties has typically ranged from four to twelve months, but with some properties requiring more than twelve months if they are of an unusual condition or if they appear to be priced above the market. The subject property should be well received if placed on the market for sale. Based on the above, we estimate a typical exposure period for comparable sales of 12 months. As economic conditions have deteriorated, a marketing period for the subject of 24 to 36 months is estimated. Given the broad potential configuration and composition of building design and building volumes, a buyer’s permitting period would likely add several months to transaction closing after a sale contract agreement. Selling commissions in order to affect the sale of a property similar to the subject are usually 6.0% and downward. For the subject property type and its high value range, a commission level of between 2.0% and 4.0% is applicable. Availability of Mortgage Financing At the present time, third-party financing is available for acquisition and/or development of properties similar to the subject, however, lenders are quite cautious and hesitant without detailed projection of successful development and absorption. Interest rates have increased over the past year and underwriting standards have become more stringent. Conversations with commercial bank lenders implied that appropriate interest rates for improved commercial properties would typically range from approximately 6.0% to 7.5%, possibly higher dependent on the term and length of period between interest rate reviews. Land acquisition loans with a one to three year period term often have interest only payments previous to new construction. Interim construction loans are about 7.0% to 8.0% interest. The loan-to- value ratio would typically range between 50% and 70% of value. For income producing properties, the range of the debt coverage ratio is typically 1.3 to 1.5, and loan origination fees or points are typically 0.0% to 1.0%. Additional prerequisites for approval of financing include the personal guarantee of the owner, as well as an excellent credit history and prior successful ownership of properties similar to the subject. Strength and quality of the cash flows from income producing properties and the condition of the property would also be considered. Typical buyers are developers or experienced property investors with motivation of positive cash flow. URS - 232098 Page 55 Multi-Family Real Estate Market Please see following information about the real estate market for recent activity and near future trends. Moody’s Investor Services CBRE reports Multifamily Rents Drop Amid Supply Surge (Yardi Matrix Sep 2023)- Multifamily rents declined in September due to softening demand and an increased housing supply in Sun Belt and Western markets. Still, the sector remains robust overall, thanks to strong job growth and household formation, despite challenges that include rising energy costs and higher interest rates. URS - 232098 Page 56 Yardi Matrix Review of National Apartment Rentals September 2023 URS - 232098 Page 57 Source: Matrix National Multifamily Report, September 2023 - Yardi Matrix CBRE Data Source: CBRE U.S. Cap Rates Survey H2 2022; July 2023 release. URS - 232098 Page 58 CBRE Data Second Half 2022 Source: CBRE U.S. Cap Rates Survey H2 2022; March 2023 release. URS - 232098 Page 59 Capitalization rates have moved upward by an approximate 100 basis points indicating a weakness of sales of the suburban Class A multi-family sector in the Tampa Bay Metro area according to CBRE surveys. See Tampa line item in above and next chart. First Half 2023 Source: CBRE U.S. Cap Rates Survey H1 2023; September 2023 release. URS - 232098 Page 60 2023 Multifamily Annual Report Building Design+Construction – September October 2023, pages 9-11 https://www.bdcnetwork.com/download-2023-multifamily-annual-report This organization captures recent viewpoints from several resources. The Future State Of Multifamily Industry experts agree the hard-charging multifamily construction sector has been indicating a deceleration—and they point to rising interest rates. Rising rates over the past year and a half have “changed the mortgage market for multifamily,” according to Yardi Matrix’s June 2023 Multifamily National Report. “Expensive debt has quashed transaction activity,” the report writes. Amid increasing interest rates and slowing rent growth, transaction volume in the apartment market fell for the fifth consecutive quarter, NMHC reported in July 2023. NAA’s Munger places the recently rising interest rates within a larger historic context—noting that “the interest rates we’re seeing now are not a new phenomenon,” she says. “The era of ‘free money’ is behind us, and it’s really a matter of adjusting to the new rates.” “In the rental market, slowing rent growth and rising vacancies, especially in high-cost market segments, will likely lead to a slowdown in new apartment construction,” according to the JCHS report. In addition to higher interest rates, JCHS cites tightening lending standards and rising operating costs as contributing to a slowdown. URS - 232098 Page 61 “Borrowing costs are higher for multifamily developers and lending conditions have tightened, so fewer deals are getting done,” says Jesse McConnico, Research Manager with John Burns Real Estate Consulting. Luettke adds, “We’re presently at a moment when starts are slowing down and completions are lower than expected. “Permits for multifamily projects with five or more units are down more than 16% on a year-to- year basis, and the pace of permits has been slowing since February, according to NAHB. “Our forecast is for ongoing weakness, given the number of apartments under construction is near one million, the highest total since 1973,” Dietz says. With permitting activity beginning to slow, “we expect the influx of new supply to recede in 2025,” Munger adds. Brad Dillman, Chief Economist with developer, property manager and investment firm RPM Living, paints an even starker picture: “Many investors have completely paused funding additional development projects for the year,” Dillman says. “Higher borrowing costs reduce the attractiveness of a development.” There are still several investors willing to provide equity for projects, Dillman adds, but it will be harder for them to hit their target returns. Aside from rising interest costs, they also have to contend with increases in construction costs, land costs, government fees, and flat or declining rents, Dillman says. “We’re already seeing a sharp pullback in the number of apartment units starting construction due to higher costs of borrowing and a softening market,” says Chris Bruen, Senior Director, Research with NMHC. But the current pullback, with starts trending down, could bode well for developers who can get their projects started now and then capitalize on a stronger leasing environment later, according to McConnico. Yardi Matrix forecasts 506,574 new units in 2024—followed by 424,899 units in 2025, 401,065 units in 2026, and 417,378 units in 2027. Yardi Matrix’s estimates assume a mild recession in late 2023 or early 2024. But if a deeper and longer recession takes hold, with debt and equity finance far less available, then the multifamily rental market could see “a deeper fall-off in new construction starts beginning in the second half of 2023 that remains through 2025,” Ressler says. In this scenario, new supply would fall to a forecasted low of 355,000 in 2026. “If the economy avoids a recession, the labor market and wage growth remain strong, and inflation continues on its downward path, we will see steady demand for apartments,” Munger says. “There are still many young people living with family and they will form new households as the economy, and their own financial situations, strengthen.” Much depends on the economy— but not all. Immigration levels also will affect the multifamily market. “The 2022 increase in immigration bodes well for the market, especially if it continues,” Munger says. “Immigrants tend to rent initially and sometimes for long periods of time.” Without high immigration numbers, however, the recent flurry of construction activity could tip the scale from demand to supply, Dillman says. “From our perspective, there is too much housing under construction in the U.S., unless one assumes strong immigration figures over the URS - 232098 Page 62 years ahead,” Dillman says. “Strong immigration assumptions did prove correct for 2021 and 2022, but whether that continues going forward is uncertain.” There will be more multifamily housing supply than demand in the near term, agrees Mangold. “Absorption is expected to be modest in the second half of 2023 as renters face economic headwinds.” But although RCLCO expects supply to outpace absorption by 1.5 to 2 times through this year, it also anticipates that demand will increase again in 2024—with the supply- absorption gap narrowing and then reaching equilibrium in late 2024 or early 2025. Economic headwinds likely will have less effect on senior living and student housing, both of which indicate a turnaround from their pandemic era lull. According to JCHS, all households headed by a person 65 and over increased 43% from 2009 to 2019, and their rentership rate edged up slightly. “We’ve been seeing more and more seniors opt to rent over the years,” McConnico says. Recent data on student housing indicates very strong pre-leasing activity for the upcoming academic year, according to Munger. “Student housing isn’t as impacted by the economy, wages, and consumer sentiment as market-rate apartment rates are,” she says. Ressler agrees: “The student housing sector is typically less impacted by recessions than other commercial real estate property types.” A REGIONAL LOOK: NEAR TERM “In the Sun Belt and the West, demand has cooled to normal from red-hot as a wave of new supply comes online,” according to Yardi Matrix’s Multifamily National Report. A growing number of metro areas report negative growth year-over-year, Yardi Matrix reports. Nine of the top 30 metros were negative in June 2023, mostly in the Sun Belt and the West. Nashville, Raleigh-Durham, and Austin have the largest multifamily pipelines under way as a percentage of inventory, so they likely will see the largest inventory expansions in 2024, according to John Burns Real Estate Consulting. As a result of the supply recently delivered, rents have declined year over year in all three markets. While completion levels are high for now, permitting activity has begun to slow down. In response, Munger says, “rent growth has started to decelerate and has even turned negative in some markets that are experiencing high levels of construction.” These include Austin, Nashville, and Phoenix. “It’s important to note, though, that most of these markets still show positive absorption. So the demand is absolutely there—it’s just not enough to outpace new supply.” “We definitely have a lot of supply under way, and some markets are going to pay for it,” McConnico says. “We are seeing occupancy moderate from all-time highs, and rents have fallen in some heavily supplied and maybe even oversupplied markets. You also have to look at the demand picture. Some areas really need it and have been able to handle it.” While the Sun Belt has seen high population growth, it also has seen rising insurance costs stemming from increasing climate-related disasters. “Demographic and insurance trends are URS - 232098 Page 63 setting up a medium-term challenge for developers trying to meet rising demand in these metros despite significant insurance costs and availability,”Luettke says. HIGH-END NOW, AFFORDABLE TOMORROW? Multifamily supply might be outpacing demand— but not when it comes to affordable housing. As Luettke says, “Demand for affordable housing remains well above available supply.” And as McConnico notes, “There is definitely a need for more affordable units.” “The underproduction of housing has translated to higher housing costs,” Bruen says. This has resulted in a loss of 4.7 million affordable apartments— with monthly rents less than $1,000— between 2015 and 2020. High mortgage rates and low resale inventory are keeping renters in place longer and driving multifamily demand for now, McConnico notes. McConnico adds that, while rents have increased, they still haven’t gone up as much as home prices and remain lower than home payments. An average monthly house payment is at least $1,000 higher than an average rent payment nationally, according to a Marcus & Millichap analysis. “Renting remains the more affordable choice in many areas,” Munger says. “We anticipate multifamily demand will continue to hold as single-family market stress incentivizes some households to pursue multifamily options,” Luettke says. Demand likely will remain high nationwide, which will buoy new construction, despite the financing challenges, he adds. “In the near future, the relationship between new constructions and affordability will remain a central topic.” Yet the majority of new multifamily construction has focused on Class A projects—with Class B and C projects accounting for just 5% to 10% of total deliveries in recent years, according to Moody’s Analytics. “Even as the abundance of mostly high end apartment units under construction reaches the market, it remains unclear how much relief this will provide for households with low and moderate incomes,” according to JCHS. What do these high-rent, luxury properties mean for the future of affordable multifamily housing? According to Bruen, today’s luxe apartments could become tomorrow’s affordable units. “The most affordable market-rate housing units tend to be older, just as used cars are less expensive than new cars,” Bruen says. “So if we don’t build newer units today, we won’t have an adequate supply of older, more affordable units in the future.” “The amount of new supply coming to market now is promising, and we have already seen it making a dent in affordability in some areas and some market segments,” Munger says. “But this is not an overnight process, and we have decades of underbuilding to make up for until supply and demand—at all price points—are truly in balance.” Mangold adds, “Increasing interest rates and affordability concerns will prove to be ongoing challenges for both multifamily developers and renters.” URS - 232098 Page 64 Recent Shifts In Commercial Real Estate Transaction Dollar Volumes Data confirms what CRE professionals suspected over the first quarter of 2023: CRE sales have stalled. Transaction volume was off significantly for office, retail, multifamily and industrial assets combined, contracting by -60% quarter-over-quarter and -64% year-over-year, according to CoStar, the publisher of LoopNet. Dollar volume moved from $116 billion to $46 billion and $129 billion to $46 billion, respectively. Year-over-year volume declined the most for office assets (-72%) and quarter-over-quarter volume declined most for industrial properties (-69%). “We're in a stale period where people are waiting to see what happens, which is why there's no transaction volume,” said Chad Littell, national director of U.S. capital markets analytics at CoStar. But for perspective on these first quarter figures, he noted that they are being compared to last year’s peak transaction numbers. “We’re coming off really robust transaction volume in the fourth quarter of 2021,” with $239 billion trading hands, making the first quarter contraction appear starker. “The decline in transaction volume is less pronounced when comparing the first quarter of 2023 to the five-year pre-outbreak period.” Key conditions contributing to the decline include flat or falling rents, higher operating costs from rising inflation and increased capital costs that have caused values to decline. Sellers and buyers can’t agree on pricing and lenders have pulled back significantly from CRE lending. Source, LoopNet articles, CRE Sales Plummet in Q1 as Expected; Here’s What to Focus on Next, April 19, 2023. The following chart depicts the strength of several multi-family markets nationwide. All of the eight Florida metro markets are rated in a normal condition, down from Strong, based on a separate map from John Burns Research & Consulting report, see main chart below for national markets, Current and Historical Sales and Pricing Market Conditions: Top 33 Markets, October 2023. URS - 232098 Page 65 URS - 232098 Page 66 HIGHEST AND BEST USE ANALYSIS The highest and best use concept is reflective of a basic assumption about real estate and market behavior; that the price a buyer will pay for a property is based on their conclusion about the most profitable use of the site or property. Therefore, sites and improved properties tend to be put to their highest and best uses and, in this manner, maximize the profit potential for the property owner. The determination of a property's highest and best use may or may not conform with the existing use of the site because the alternative uses of the site may be restricted by the presence of improvements or legal encumbrances. The highest and best use is determined separately for the land or site as though vacant and available to be put to its highest and best use than for the improvements. Highest and best use is defined as, "(1) the reasonably probable use and property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. (2) the use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for that asset when formulating the price that it would be willing to bid. (3) the highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions)."21 The first determination reveals the fact that land value is derived from potential land use. Land has limited value unless there is a present or anticipated use for it; the amount of value depends on the nature of the land's anticipated use. According to the concept of surplus productivity, the highest and best use of a site is that use among all reasonable alternative uses that yields the highest present land value after payments are made for labor, capital, and coordination. The highest and best use of a property as improved refers to the optimal use that could be made of the property, including all existing structures. The implication is that the existing improvement should be renovated or retained as long as it continues to contribute to the total market value of the site, or until the return from a new improvement would more than off-set the cost of demolishing the existing building and constructing a new one. To determine the highest and best use of the subject site, as if vacant, the use must meet four criteria. The highest and best use must be 1) legal permissibility, 2) physically possible, 3) financially feasible, and 4) maximally productive. These criteria should usually be considered sequentially; a use may be financially feasible, but this is irrelevant if it is physically impossible or legally prohibited. 21 Appraisal Institute, The Dictionary of Real Estate Appraisal, Sixth Edition, Appraisal Institute, Chicago, Illinois, 2015, p. 109. URS - 232098 Page 67 Legal Permissibility Restrictions, zoning codes, building codes, land use controls, and environmental regulations are considered because they may preclude many possible highest and best uses. • The subject site has an overall land use designation of Central Business District CBD, and is zoned Downtown, in which a variety of commercial and residential uses are permitted, limited by building height and setbacks, parking and lot coverage requirements. • The subject site is of sufficient size to meet minimum development criteria. Physically Possible The size, shape, area, and terrain of a site affect uses to which land may be developed. • The subject site is 113,256 square feet or 2.60 acres, is generally level and readily developable. • The site currently has frontage on two local streets Pierce Street and South Osceola Avenue with average visibility from those streets. • No soil tests were available. However, improvements in the general area have typically been constructed without undue foundation expense. Yet, a multi-story development will likely require soil testing previous to land acquisition. • Municipal potable water, sewer, garbage collection, electricity and telecommunications are available. • Overall, the site size, topography, configuration, and orientation are sufficient for development. Financially Feasible All the potential uses of the subject site that are expected to produce a positive return are regarded as financially feasible and are examined here. • The market area population is served by average quality transportation linkages providing average quality access throughout the county, the MSA and statewide, yet the subject site is 7 miles to the nearest Interstate access. The market area population, social characteristics, and income characteristics are average. The outlook for the market area is positive, with moderate growth expected for the economic base, population and income characteristics. • Residential uses are permitted for the subject site, which is suitable for multi-family development, especially with 250 feet height or more. Tampa metro demand for rental URS - 232098 Page 68 housing appears to continue and apartment effective rental rates experienced a 0.5% quarterly decrease after a few years of strong increases. “As rent growth patterns began to change at the end of 2022, Tampa’s multifamily sector found itself in a strong spot. The metro’s average rate was $1,798 as of December 2022, following a 0.5% slide on a trailing three-month basis. Strong development and a propensity for adding upscale inventory to Tampa’s rental stock have pressured the average occupancy rate in stabilized properties to 94.7% as of November 2022”, from Yardi Matrix, Tampa: Expansion Underway, February 2023. Yardi reported Lifestyle average rent at $2,038 and rent-by- necessity with an average pf $1,534. Quarterly Rent Changes Indicate Declining Growth Rates Yardi’s reporting continues. “Developers added 7,268 units to metro Tampa’s multifamily stock in 2022, accounting for 3.0% of existing inventory. That was 90 basis points higher than the slowing national rate of multi-family completions. It was also the market’s second-best year for apartment construction during the past 10 years, trailing only 2021’s high of 7,754 units. The market had 17,712 units under construction at the end of 2022. There were another 67,200 apartments in the planning and permitting stages across metro Tampa. Development is primarily catering to upscale renters, with nearly 90% of units underway at the start of this year set to be added to the Lifestyle quality segment.” Although high density appears to be available for development on the subject site and the subject as if developed with high-rise units will have very good views westerly of the intracoastal waterway and sunsets beyond Clearwater Beach, the subject is not a beachfront property but a water-view property. The subject neighborhood is not a major employment or retail hub, and it is not a full-scale CBD multi-family location such as downtown Tampa or downtown St. Petersburg, each with continued and increasing development of condos and rental apartments over the past 10 to 15 years. Also, the multi-family market has demonstrated signs of a pullback in the last 12 months corresponding to interest rate increases affecting consumer demand of individual condos. Acquisitions and developers’ construction costs which have been increasing during that period URS - 232098 Page 69 with materials and labor; also, insurance costs continue to increase, all of which dampen the multi-family market for supply of condominium and rental development. • Office uses are permitted and will fit the site. The office market is stagnant for large buildings, especially CBD locations, and investors are taking a very conservative approach to speculative building. However, the market appears to support build to suit space. • Retail uses are permitted and will fit the site. The retail market is active including some speculative buildings under construction, for example, strip centers. Numerous build-to- suit buildings have been constructed for national credit tenants. However, the subject is most suitable for ancillary retail as a secondary use. • Numerous other commercial uses or institutional uses are permitted and will fit the site. The commercial market continues to be strong in general, yet investors are taking a conservative approach to speculative building. Maximally Productive Physically, the subject can support combinations of building area scenarios in multiple story designs, limited by floor area ratio and parking requirements. The subject offers high density for multi-family development. As if vacant, the maximally productive use of the subject site is for development to a multifamily use in high-rise design. Depending on the average size of the units, the subject site has potential for a variety of building configurations. In recent years, the multi-family development market for rental apartments had favored an average of approximately 1,100 square feet, typically with a mix of 1, 2 and 3 bedroom units. However, these indications were typically for suburban garden apartments. Downtown high-rise apartment developments are more likely with smaller average square feet than suburban rentals. The following chart of apartment sales since mid-2021 in the Tampa Bay area includes predominantly non-CBD properties with a variety of construction years and mostly 3 and 4 stories. Mid-rise and high-rise multi-family rental developments generally have lower average area and the sites are typically smaller than suburban apartment sites. As may be noted, density per acre for the above apartment sales ranged from 8 units to 150 units per acre, with the Channelside apartment building at 150 units per acre the only CBD site, although other CBD sites may have higher density. Applied to the subject, a density of 150 units Property Name Property Address Property City Sale Date YB Sale Price Units Price Per Unit Price Per SF Building SF Avg SF Flr Acres DUA 1 Circa at FishHawk Ranch13930 Spector Rd Lithia 10/8/2021 2015 $66,250,000 260 254,808$ 196$ 338,308 1,301 4 10.30 25 2 Altis Promenade 18065 Promenade Park LnLutz 6/7/2021 2020 $90,400,000 338 267,456$ 256$ 352,771 1,044 3 3.50 97 3 Cortland Gateway 9505 49th St N Pinellas Park 6/30/2021 2020 $78,000,000 288 270,833$ 271$ 288,000 1,000 4 10.15 28 4 Enclave at Tranquility Lake9707 Tranquility Lake CirRiverview 9/13/2022 2009 $98,000,000 348 281,609$ 228$ 429,004 1,233 3 27.93 12 5 Lake 28 22743 Preakness Blvd Land O Lakes 4/26/2022 2004 $71,000,000 252 281,746$ 255$ 277,980 1,103 3 31.52 8 6 Pier 8 at The Preserve 2130 Leather Fern Dr Odessa 7/1/2021 2020 $100,000,000 350 285,714$ 222$ 450,264 1,286 3 17.98 19 7 The Boulevard 2098 Seminole Blvd Largo 1/18/2023 2015 $76,700,000 260 295,000$ 260$ 294,622 1,133 3 8.94 29 8 Axio at Carilon 250 Carillon Pky St. Pete 10/1/2021 2021 $90,850,400 298 304,867$ 305$ 298,000 1,000 5 5.20 57 9 Nexus Brandon 650 Tapestry Ln Brandon 11/9/2021 2020 $88,000,000 287 306,620$ 307$ 287,000 1,000 4 6.10 47 10 ST Channel Club 1115 Twiggs Street Tampa 11/15/2021 2019 $136,000,000 324 419,753$ 392$ 347,060 1,071 22 2.16 150 89,520,040$ 301 296,841$ 269$ 336,301 1,117 Average unit size 971 1.15 load factor URS - 232098 Page 70 per acre appears reasonable, equivalent to 390 units. We believe the 400 units as proposed is reasonable for rental apartment development on the subject land and would include five or six levels of parking plus open and covered surface parking. Parking can be a challenge, depending on how many are needed by retail tenants. This is only one scenario of several available to a developer on the subject 2.6 acre site. Highest and Best Use As If Vacant Physically, the subject property is suitable for multi-family development, and legally, the subject site can be developed with such uses. The subject site has good views and transportation linkages. Financial analysis of all physically possible and legally permissible uses indicates the property will be best utilized for a build-to-suit development of a use consistent with zoning regulations, likely multi-family units. As if vacant and available, the subject site has a highest and best use to hold for future development to multi-family units, likely rental apartments, to a minimum density of 400 units. Highest and Best Use As Improved The subject is not currently improved. URS - 232098 Page 71 INTRODUCTION TO THE APPRAISAL PROCESS Traditionally, three approaches are used to arrive at an estimate of market value, the cost, sales comparison, and income capitalization approaches. Ideally, each approach, properly employed, provides an accurate indication of value, but, due to the unique characteristics of various types of properties, one or more of the approaches may be inappropriate or inapplicable in arriving at an estimate of value. The three approaches are: Cost Approach The cost approach is based on the principle of substitution, that no prudent person would pay more for a property than the cost to acquire a similar site and construct a building of equal desirability and utility, assuming no undue or costly delay. The procedure involves first estimating value of the site as if vacant. Anticipated direct and indirect costs necessary to reconstruct all improvements are then estimated, predicated upon labor and material prices prevailing on the appraisal date. From this construction cost estimate, deductions are made for accrued depreciation caused by physical deterioration and functional and economical obsolescence. This depreciated cost figure is then added to the estimated value of the site, resulting in the indication of value by the cost approach. The cost approach is most accurate when applied to a relatively new structure with no functional deficiencies, and which represents highest and best use of the site. The depreciation estimates are difficult to precisely measure from market data, so the indication of value may largely depend on the experience, judgment and ability of the appraiser, especially for older improvements. Sales Comparison Approach The sales comparison approach is also based on the principle of substitution; that a prudent person would pay no more for a property than the cost to acquire another property of similar desirability or utility. The process involves the collecting, analyzing, and comparing of sales, listings and offers for properties similar to the property under appraisement. After the most comparable property transactions are identified, adjustments are made for such variables as changes in market conditions since date of sale, location, size, physical characteristics and terms of sale. Advantages of the sales comparison approach are that it permits direct comparison of the property under appraisement to factual market transactions involving similar properties, and that it is probably the approach most easily understood. Limitations of the sales comparison approach are that no two properties are identical, and dissimilarities between the comparable properties and the subject may relate to intangible qualities that are difficult to measure. Application of this approach may be limited by the lack of data for specific types of properties. Income Capitalization Approach The income capitalization approach is based on the principle of anticipation; that value of a property may be measured by the present worth of anticipated future benefits accruing to the ownership and use of the property. The procedure involves estimating gross income the property URS - 232098 Page 72 is capable of producing, then deducting vacancy/collection losses and expenses which might be incurred in the operation. Resultant net income, as estimated by the appraiser, is converted to an indication of value through various means of capitalization or discounting. The income capitalization approach is most accurate in valuation of income producing properties. If sufficient sales of tenant-occupied, investor-owned comparables may be located, the income capitalization approach can provide a highly accurate value indication. The approach, however, has limited application for non-income producing properties, such as vacant land. Reconciliation of Value Indications Final step in the valuation process is reconciliation of value estimates indicated by the approaches outlined above, weighting each according to their relative importance, based on market appropriateness and availability and reliability of data. Dependent on type of property and purpose of appraisal, one or all of the approaches may be considered reliable. Result of this final reconciliation of values is the estimate of value as defined in the report. Valuation Methodology The cost approach and income capitalization approaches were not developed for the subject land as if vacant. The sales comparison approach includes data of sufficient quantity and quality to derive a reasonably accurate indication of value and has been developed and reported below. URS - 232098 Page 73 SALES COMPARISON APPROACH The sales comparison approach, like the cost approach, is based on the principle of substitution; in other words, the value of a property should be no higher than the cost to acquire another property offering similar physical or locational attributes. This procedure involves market research to identify similar properties which have recently sold or are offered for sale, investigation of the sale transactions to ensure their validity and to determine motivating forces, and comparison of the sold properties to the subject, adjusting prices paid for various dissimilarities having a discernible effect on value. We considered differences for such factors as changes in market conditions since time of sale, locations, number of developable multi-family units, and if available, terms of the land sale. The application of the market or sales comparison method requires the appraiser to follow the following steps: 1. Market research - to obtain information about transactions, listings and other offerings similar to the subject. 2. Verification of the information to determine if it is factual, accurate, reflects arm’s length market conditions, and whether any unusual terms or conditions were present. 3. Develop relevant units of comparison. 4. Compare each comparable sale toward the subject according to the typical elements of comparison for an indicated value of the subject. 5. Reconcile the multiple value indications that result from the comparable sales into a single value indication. Applying the sales comparison approach to value to the subject property, these five steps were employed. In our research of the public records, we searched for sales with a highest and best use the same as or similar to the highest and best use of the subject. The comparable sales were verified with a principal of the transaction, or with persons with direct knowledge of the transaction. In the verification process, we have attempted to obtain additional data that is normally appropriate in the sales comparison approach. This data would include the intended use of the property, mortgage terms, extraordinary acquisition or development costs, and any other data deemed relevant. To estimate the value of the site as if vacant, the site is compared with recent sales of sites having a similar highest and best use and other similar characteristics. Comparable land sales are reduced to a common denominator or unit of comparison such as price per front foot, price per square foot or acre, price per buildable square foot, or price per dwelling unit, a common land use index for multi-family acquisitions. Consideration for factors such as market conditions and favorable financing, and for locational and physical differences are part of the analysis. In searching the Public Records, a number of land sales were found. However, several were discarded, as they were considered so dissimilar that no supportable indication of value for the URS - 232098 Page 74 subject could be determined. Several land sales, however, exhibited characteristics sufficiently similar to the subject site and are included in this analysis. Please refer to the land sales summary chart and location map included within this section for orientation. The land sale comparables were purchased for development generally consistent with multi-family use. Salient data regarding the comparable sales considered most indicative of value of the subject follow. URS - 232098 Page 75 Comparable Land Sales URS - 232098 Page 76 Comparable Land Sale Number 1 Location Linz Bayview Apartments 2975 Gulf To Bay Boulevard Clearwater, Pinellas County, Florida 33759 Date of Sale November 2019 Grantor David William Kirkpatrick, Trustee Grantee DD Gulf To Bay, LLC Indicated Consideration Nominal $12,050,000 Adjusted - Demolition $ 900,000 Adjusted Price $13,950,000 Recorded In OR Book 20780 page 2197 Tax Parcel ID 17-29-16-12312-000-0020 plus merged parcel 17-29-16-00000-410-0200 as submerged land Site Description Gross Area 7.472 acres, 325,480 square feet Useable Area 7.472 acres, 325,480 square feet Plus Submerged Land Owned 1.888 acres Land Use / Zoning US 19 Regional Center, City of Clearwater Floor Area Ratio (FAR) 2.50 maximum; 150’ height max Apartment Development 398 apartments developed 2023 Development Density 53.3 DUA URS - 232098 Page 77 Units of Comparison Sale Price Per Gross Acre $1,612,687 Sale Price Per Usable Acre $1,612,687 Sale Price Per Gross Sq. Ft. $39.79 Sale Price Per Usable Sq. Ft. $39.79 Sale Price Per Developed Apartment $32,538 Comments This comparable site is located on south side of Gulf to Bay Boulevard between US 19 and Bayside Bridge/McMullen Booth Road. The site was formerly a mobile home park with about 85 mobile homes, clubhouse and maintenance building. We estimate overall demolition costs of approximately $900,000 and added to the purchase price as acquisition land cost. The number of apartment units for this mid-rise development is 398 plus central parking garage. The buyer Davis Development has approximately eight luxury apartment developments in Florida and other developments in several states. Adjacent to the east of the Linz is newly developed Bainbridge Bayview Apartments with 284 apartments in five and seven story buildings plus a parking garage. To the west is two-story Grande Bay Apartments built in 1970. The subject land is westerly adjacent to the Grande Bay development. The developer offers the following description for Linz Bayside: “…brand new community, located in Clearwater, Florida, beautiful one, two, and three bedroom apartments fused with style and modern convenience. You can enjoy luxury living by lounging around our resort-style pool, getting social in our indoor and outdoor entertaining areas, or by getting energized in our high endurance fitness center. Our community offers this and many more luxury amenities...Linz Bayview Apartments is a large pet-friendly community offering the perfect balance of luxury and location. We are central to many great shopping, dining, and entertainment options that the area has to offer. With excellent access to major roads, your morning commute will be quick and easy“. : URS - 232098 Page 78 Verification Davis Development, Kyle Osborne, Morrow Construction, 770-474-4345; CoStar, Public Records, Media Releases, Deed, Onsite Management and Leasing Under construction including central parking garage nearly completed Linz Apts Qty.Sq. Ft.Sq. Ft. Studio 40 465 18,600 1 BR 199 721 143,479 2 BR 139 1,029 143,031 3 BR 20 1,343 26,860 398 331,970 Weighted average 834 Apt size URS - 232098 Page 79 Comparable Land Sale Number 2 Location Bainbridge Bayview Apartments 2981 Gulf To Bay Boulevard Clearwater, Pinellas County, Florida 33759 Date of Sale October 2019 Grantor Wilder, LLC Grantee BVT-Bainbridge Bayview Owner, LLP Indicated Consideration Nominal $4,700,000 Adjusted - Demolition $ 700,000 Adjusted Price $5,400,000 Recorded In OR Book 20716 page 1134 Tax Parcel ID 17-29-16-12312-000-0010 including submerged land Site Description Gross Land Area 4.380 acres, 190,793 square feet Useable Land Area 4.380 acres, 190,793 square feet Plus Submerged Land Owned 1.250 acres Land Use / Zoning US 19 Regional Center, City of Clearwater Floor Area Ratio (FAR) 2.50 maximum; 150’ height max Apartment Development 283 apartments developed 2023 Development Density 64.6 DUA URS - 232098 Page 80 Units of Comparison Sale Price Per Gross Acre $1,073,058 Sale Price Per Usable Acre $1,073,058 Sale Price Per Gross Sq. Ft. $28.30 Sale Price Per Usable Sq. Ft. $28.30 Sale Price Per Developed Apartment $19,081 Comments This comparable site is located on south side of Gulf To Bay Boulevard between US 19 and Bayside Bridge/McMullen Booth Road. The site was formerly a mobile home park Bayside Trailer Gardens with about 70 mobile homes and office. We estimate overall demolition costs of approximately $700,000 and added to the purchase price as acquisition land cost. The number of apartment units for this mid-rise development is 284 plus parking garage below the seven story building plus a 4.000 square foot club house. Approximately 30 units were committed in the first two weeks of opening in mid-May 2023. On November 1, 2023 occupancy was 36 units and another 48 commitments are due for occupancy in December 2023. There are one and two free-month concessions as is now typical for new developments. The buyer Bainbridge Companies has approximately five luxury apartment developments in Florida and other developments in several states. In 2017, the site for Bainbridge at Westshore Marina was purchased at $37,606 per developable apartment located at 5030 Bridge Street in South Tampa near Gandy Bridge. Adjacent to the west of Bainbridge Bayview is the new Linz Bayview Apartments with 398 apartments nearing completion including parking garage. And west of Linz is two-story Grande Bay Apartments built in 1970. See representative interior photographs of apartments, https://www.apartments.com/bainbridge- bayview-clearwater-fl/v2cgh1d/ See floor plans with square feet and monthly rents for currently available apartments at Bainbridge Bayview, https://bainbridgebayview.com/floorplans/ Source: Leasing office and https://www.forrent.com/fl/clearwater/bainbridge-bayview/f2cgq1r Verification Bainbridge Companies Wellington Florida, 561- 333-36369; CoStar, Public Records, Media Releases, Deed, Onsite Management and Leasing URS - 232098 Page 81 URS - 232098 Page 82 Comparable Land Sale Number 3 Location Cortland Bayside Apartments (developed as Bainbridge Bayside) 19337 (19355) US Highway 19 Clearwater, Pinellas County, Florida 33764 Date of Sale December 2017 Grantor Wilder, LLC Grantee Bayside Apartments Owner, LLC Indicated Consideration Nominal $14,700,000 Adjusted - Demolition $ 500,000 Adjusted Price $14,200,000 Recorded In OR Book 21257 page 1163 Tax Parcel ID 20-29-16-01325-000-0020 including sand and mangrove shore land Site Description Gross Land Area 15.599 acres, 679,481 square feet Useable Land Area 15.599 acres, 679,481 square feet Plus Mangrove Shore Land Owned 1.54 acres Land Use / Zoning US 19 Corridor, City of Clearwater Floor Area Ratio (FAR) 2.50 maximum; 100’ height max Apartment Development 360 apartments developed 2019 Development Density 23.1 DUA URS - 232098 Page 83 Units of Comparison Sale Price Per Gross Acre $897,509 Sale Price Per Usable Acre $897,509 Sale Price Per Gross Sq. Ft. $21.34 Sale Price Per Usable Sq. Ft. $21.34 Sale Price Per Developable Apartment $40,278 Comments This comparable site is located easterly off of US 19, south of Gulf To Bay Boulevard with bay waterfront of 820 feet. We estimate overall demolition costs of approximately $500,000 for offices buildings and added that cost to the purchase price as acquisition land cost. The number of apartment units for this four-story, five-residential building development is 360 plus club house. The shore boundary includes a narrow 220 foot sandy beach. The site buyer/developer was Bainbridge Companies, which has approximately five luxury apartment developments in Florida including two new multi-family developments in Orlando of 390 at 70 DUA and 341 units. In the Tampa Bay area, the site for Bainbridge at Westshore Marina was purchased in 2017 at $37,606 per developable apartment located at 5030 Bridge Street in South Tampa near Gandy Bridge. This US 19 Bainbridge apartment property as completed was sold to US Highway 19N Florida Partners, LLC (Cortland Company of Atlanta) in November 2020 for $104,200,000 or $289,444 per apartment. Cortland owns six apartment complexes in the Tampa Bay market. The average apartment size of Cortland Bayside is 1,111 square feet with monthly rents approximately $1.95 for three bedrooms to $2.65 for one bedrooms, per square foot; the best locations within a building are likely higher rents. 1 BR/1 B 2 BR/2 B 3 BR/2 B See representative interior photographs of apartments, https://cortland.com/apartments/cortland- bayside/gallery/ See floor plans with square feet and monthly rents for currently available apartments at Cortland Bayview, https://www.apartments.com/cortland-bayside-clearwater- fl/jn8e0v7/ URS - 232098 Page 84 Verification Bainbridge Companies Wellington FL, 561-333- 3669; CoStar, Public Records, Media Releases, Deed, Onsite Management and Leasing URS - 232098 Page 85 Comparable Land Sale Number 4 Location Aventon Lana Apartments 2031 Glass Loop (Off east side of US Highway 19) Clearwater, Pinellas County, Florida 33763 Date of Sale September 2021 Grantor Southern Comfort Park, Inc. Grantee Aventon Clearwater Owner, LLC Indicated Consideration Nominal $15,559,300 Adjusted - Demolition $ 775,000 Adjusted Price $16,334,300 Recorded In OR Book 21731 page 598 Parcel ID 05-29-16-01833-000-0020 Site Description Gross Land Area 21.90 acres, 953,964 square feet Useable Land Area 21.90 acres, 953,964 square feet Land Use / Zoning US 19 Corridor, City of Clearwater Floor Area Ratio (FAR) 2.50 maximum; 100’ height max Apartment Development 396 apartments completed 2023 Development Density 18.1 DUA URS - 232098 Page 86 Units of Comparison Sale Price Per Gross Acre $710,470 Sale Price Per Usable Acre $710,470 Sale Price Per Gross Sq. Ft. $17.12 Sale Price Per Usable Sq. Ft. $17.12 Sale Price Per Developed Apartment $41,248 Comments This comparable site is located easterly off of US 19, north of Gulf To Bay Boulevard, site is non-water front located two miles north of Gulf To Bay Boulevard. We estimate overall demolition costs of approximately $775,000 for removal of mobile homes and added that cost to the purchase price as acquisition land cost. Arbor Shoreline Office Park with four buildings and 59,000 square feet was demolished in preparation of this apartment development. The number of apartment units for this three-story, ten-residential building development is 396 plus club house. There is a narrow, vegetated conservation strip along the easterly boundary near the clubhouse. Occupancy started in April 2023 and as of November 1, 2023, 153 units are occupied, or almost 39% of total units. Concessions are still being offered with one month free rent. The site buyer Aventon Companies is a multi-state developer/builder with apartment projects from Virginia to Florida. Aventon Companies owns seven apartment complexes in Florida. The Aventon Lana monthly rents are approximately $2.34 for one bedrooms and $2.28 for two bedrooms, per square foot; the best locations within a building are likely higher rents. 1 BR/1 B 2 BR/2 B See representative interior photographs and floor plans of apartments, currently under construction with some finished units. https://aventonlana.com/?utm_knock=gmb&utm_source=googlemybusiness&utm_medium=orga nic&utm_campaign=gmblisting Verification Aventon Companies, Raleigh, NC, 984-777-3363; Clearwater 727-334-8251; CoStar, Public Records, Media Releases, Deed, Onsite Management and Leasing URS - 232098 Page 87 Clubhouse Rendering before completion URS - 232098 Page 88 Comparable Land Sale Number 5 Location Broadstone Westshore Apartments 5105 West Tyson Avenue Tampa, Hillsborough County, Florida 33611 Date of Sale September 2022 Grantor Sajet Properties, LLC Grantee Westshore Apartments Venture, LLC Indicated Consideration Nominal $15,500,000 Adjusted $ 0 Adjusted Price $15,500,000 Recorded In OR Book 2022-469411 Parcel ID Folio # 131227-0000 Site Description Gross Land Area 11.930 acres, 519,671 square feet Useable Land Area 11.930 acres, 519,671 square feet Land Use / Zoning CMU 35/ IG, City of Tampa Floor Area Ratio (FAR) Per approved specific plan Apartment Development 325 apartments including 40 THs Development Density 27.2 DUA URS - 232098 Page 89 Units of Comparison Sale Price Per Gross Acre $1,299,245 Sale Price Per Usable Acre $1,299,245 Sale Price Per Gross Sq. Ft. $29.83 Sale Price Per Usable Sq. Ft. $29.83 Sale Price Per Developed Unit $47,692 Comments This comparable site is located on the north side of Tyson Avenue, a few blocks south of Gandy Boulevard, generally in the neighborhood of Westshore Marina District among new high and mid-rise condominium buildings, townhomes and new apartments. The site has an approved plan of 325 residences consisting of 285 apartments and 40 THs plus parking garage. These units will range from 593 square feet to 1,520 square feet. The water draft is conducive to boats for excursions through Tampa Bay to Gulf of Mexico. The number of slips, if permitted, would likely be limited to parallel docking along the rebuilt seawall. Rental prices have not been disclosed. The site under construction with a central garage is complete. The buyer/developer is Alliance Residential Company of Scottsdale Arizona which has developed properties in 16 states, including Tampa’s Bleecker Hyde Park and Citrus Village apartments. The new owner will rebuild the sea wall and opening is expected for late 2024. This Tyson Avenue land was first placed on the market in 2017 for $19,000,000. Santander Bank provided $78,000,000 toward the land acquisition and construction. Verification Alliance Residential Company, Scottsdale, AZ, 602-778-2800; Bobby Anderson 407-755-4272; CoStar, Public Records, Media Releases, Deed Preliminary design Three-story central garage URS - 232098 Page 90 Comparable Land Sale Number 6 Location Tyson south tip apartments 5440 West Tyson Avenue Tampa, Hillsborough County, Florida 33611 Date of Sale June 2021 Grantor Orion Marine Construction, Inc. Grantee MAA Westshore Exchange, LLC Indicated Consideration Nominal $23,500,000 Adjusted – Commercial Element $ 1,200,000 Adjusted Price $22,300,000 Recorded In OR Book 2021-286840 Parcel ID Folio # 131191-0000 Site Description Gross Land Area 15.868 acres, 691,215 square feet Useable Land Area 15.868 acres, 691,215 square feet Land Use / Zoning PD, City of Tampa Floor Area Ratio (FAR) Per approved specific plan Apartment Development 495 apartments Development Density 31.2 DUA URS - 232098 Page 91 Units of Comparison Sale Price Per Gross Acre $1,480,957 Sale Price Per Usable Acre $1,480,957 Sale Price Per Gross Sq. Ft. $32.26 Sale Price Per Usable Sq. Ft. $32.26 Sale Price Per Developed Unit $45,051 Comments This comparable site is located at the south tip of West Tyson Avenue, southeast of Gandy Boulevard generally in the neighborhood of Westshore Marina District among new high and mid-rise condominium buildings, townhomes and apartments. This site has an approved plan of 495 residences plus parking garage. The water draft is conducive to boats for excursions through Tampa Bay and to Gulf of Mexico. The number of slips, if permitted, may be limited to docking along the east seawall due to wave action in Tampa Bay. Rental prices have not been disclosed. The buyer/developer is Mid-America Apartment Communities, a REIT which owns approximately 300 apartment communities and is based in Germantown, Tennessee. Some projects offer a few furnished apartments. MAA has 14 communities in the Tampa Bay area. Verification Mid-American Apartment Communities, 901-682- 6600; CoStar, Public Records, Media Releases, Deed Under construction Rendering URS - 232098 Page 92 Comparable Land Sale Number 7 Location The Emerson Apartments 3015 North Rocky Point Drive Tampa, Hillsborough County, Florida 33607 Date of Sale March 2019 Grantor BBC Rocky Point, LLC Grantee NR Rocky Point Owner, LLC Indicated Consideration Nominal $7,800,000 Adjusted $ 0 Adjusted Price $7,800,000 Recorded In OR Book 2019-139709 Parcel ID Folio # 094469-0100 Site Description Gross Land Area 3.083 acres, 134,315 square feet Useable Land Area 3.083 acres, 134,315 square feet Land Use / Zoning PD, City of Tampa Floor Area Ratio (FAR) Per approved specific plan Apartment Development 180 apartments completed 2022 Development Density 58.4 DUA URS - 232098 Page 93 Units of Comparison Sale Price Per Gross Acre $2,529,636 Sale Price Per Usable Acre $2,529,636 Sale Price Per Gross Sq. Ft. $58.07 Sale Price Per Usable Sq. Ft. $58.07 Sale Price Per Developed Apartment $43,333 Comments This comparable site is located north of SR 60/Courtney Campbell Causeway in the waterfront Rocky Point neighborhood. The site has been developed with 180 luxury apartments among mid-rise office buildings, hotels, condominiums, apartments and restaurants. The overall building is a central nine stories plus two five story wings, all above two levels of parking. The units recently began occupation in February 2023. There was a reported 57% in pre-lease commitments. The units have 10 feet ceilings and balconies. There is a concierge service and business center. The shoreline is native vegetation with 12 slips generally for boats under 30 feet to pass under SR 60 bridge from North Rocky Point basin; this is similar to docks and boats in nearby Pelican Landings and Dana Shores with single-family waterfront subdivisions. The buyer/developer is Northwood Ravin which has over 25 communities and has coupled with Framework Group of Florida for this development and for others in Florida. See representative interior photographs and descriptions of apartments, https://emersonrockypoint.com/ Verification Northwood Ravin Companies, Charlotte, NC, 704- 714-9460; Tampa 813-443-2144; CoStar, Public Records, Media Releases, Deed, Onsite Management and Leasing URS - 232098 Page 94 Rocky Point Neighborhood URS - 232098 Page 95 Comparable Land Sale Number 8 Location 533 3rd Avenue South (275 5th Street South) Downtown St. Petersburg St. Petersburg, Pinellas County, Florida 33701 Date of Sale April 2023 Grantor Burton W. Wiand, Receiver for Equialt Fund, LLC, Equialt 519 3rd Ave S, LLC, and EA SIP, LLC Grantee 5th And 3rd Owner, LLC Indicated Consideration Nominal $20,250,000 Adjusted $20,250,000 Recorded In ORBP 22409-894 Tax Parcel ID 193117-74466-052-0160;-0140;-0150;-0160;-0170; -0180; and -0200 Site Description Gross Land Area 40,000 square feet Useable Land Area Same Useable Acres 0.918 Development FAR Per approved specific plan Multi-Family Development 367 apartments Development Density 400 DUA Land Use / Zoning Downtown Center-1, City of St. Petersburg URS - 232098 Page 96 Units of Comparison Sale Price Per Gross Sq. Ft. $506.25 Sale Price Per Usable Sq. Ft. $506.25 Sale Price Per Usable Acre $22,052,250 Sale Price Per Developable Apartment $55,177 Comments This parcel is in the downtown core of St. Petersburg with convenient access to Interstate 275. This site consists of 10 lots as 7 contiguous parcels along the north side 3rd Avenue South. In addition to full block frontage on 3rd Avenue South, the site has half-block frontage on 5th Street South and 6th Street South. The property is being developed as 275 5th Street and construction of the 24-story tower with 511,509 square feet is to begin in the first quarter of 2024 with completion in early 2026. This neighborhood includes several rental apartment buildings built in the last ten years and is an employment hub including health and medical facilities and the Innovation Center along 4th Street South. Verification Focus Development, Christopher McAdams, 813- 616-8501; CoStar, Public Records, Deed, Media Foreground land along north side of 3rd Avenue South URS - 232098 Page 97 Comparable Land Sale Number 9 Location 1515 North Westshore Boulevard Westshore Business District Tampa, Hillsborough County, Florida 33607 Date of Sale July 2021 Grantor The Auto Club Group, Inc. (AAA Auto Club South) Grantee Ally 1515, LLC Indicated Consideration Nominal $8,750,000 Adjusted $8,750,000 Recorded In ORBP 2021-368156 Tax Parcel ID Folio 112131-0000 Site Description Gross Land Area 83,670 square feet Useable Land Area Same Useable Acres 1.92 Development FAR Per approved specific plan Multi-Family Development 360 apartments – permits in progress Development Density 187 DUA Land Use / Zoning Planned Development, City of Tampa URS - 232098 Page 98 Units of Comparison Sale Price Per Gross Sq. Ft. $104.58 Sale Price Per Usable Sq. Ft. $104.58 Sale Price Per Usable Acre $4,555,396 Sale Price Per Developable Apartment $24,306 Comments This parcel is in the Westshore Business District with convenient access to Interstate 275. This site also has frontage on North Trask Street across from Jefferson High School. Tampa International Airport and International Plaza are nearby northerly. This neighborhood has several office buildings and hotels. Buyer/developer plans two 14-story luxury apartment buildings with garage in between and will provide approximately 6,500 square feet for a high quality restaurant tenant. There was no distress in this arm’s length all cash and sale. This parcel had not transferred in last 40 years. Verification Ally Capital Group; CoStar, Public Records, Deed, Media Rendering - 2025 Completion planned URS - 232098 Page 99 Comparable Apartment Land Sale Number 10 Location Tapestry University Park Apartments 8350 Carolina Street (Broadway Avenue) Sarasota, Manatee County, Florida 34243 Date of Sale October 2022 Grantor DCNIG Sarasota 1, LLC Grantee Arlington University Park, LLC Indicated Consideration Nominal $9,000,000 Adjusted $ 0 Adjusted Price $9,000,000 Recorded In OR Book 2022-41122355 Parcel ID 2038800059; 2038650004; 2038600009; and 2038900003 Site Description Gross Area 8.57 acres, 373,309 square feet Useable Land Area 8.57 acres, 373,309 square feet Flood Zone District FEMA “X” above 100 year flood area Land Use / Zoning LM rezoned to PD, Manatee County Apartment Development 180 apartments permitted Development Density 21.0 DUA URS - 232098 Page 100 Units of Comparison Sale Price Per Gross Acre $1,050,176 Sale Price Per Usable Acre $1,050,176 Sale Price Per Gross Sq. Ft. $24.11 Sale Price Per Usable Sq. Ft. $24.11 Sale Price Per Developable Apartment $50,000 Comments This comparable site is four adjacent parcels located one block north of University Parkway among two other apartment complexes and about two miles westerly to entrance of Sarasota International Airport. Access to Interstate 75 is 4.5 miles east. There are several trees to be cleared for development. The number of apartment units is 180 plus club house as Tapestry University Park. No commercial element is planned. The site buyer is Arlington Properties of Birmingham, Alabama with more than 25,000 apartment units developed since 1969, including in several Florida cities. Verification Arlington Properties, David Ellis, 205-328-9600; CoStar, Public Records, Deed URS - 232098 Page 101 Comparable Apartment Land Sale Number 11 Location Collier Artisan Apartments 6100 Gillett Road Palmetto, Manatee County, Florida 34221 Date of Sale December 2022 Grantor RC Palmetto Apartments, LLC Grantee Collier Artisan, LLC Indicated Consideration Nominal $22,000,000 Adjusted $ 0 Adjusted Price $22,000,000 Recorded In OR Book 2022-41151274 Parcel ID 612110159; 612130059; 612110300 Site Description Gross Land Area 21.19 acres, 923,019 square feet Useable Land Area 21.19 acres, 923,019 square feet Flood Zone District FEMA “X” above 100 year flood area Land Use / Zoning RES-6 rezoned to PD, Manatee County Apartment Development Scenario 1 405 apartments including part affordable units, or Apartment Development Scenario 2 300 apartments luxury market units URS - 232098 Page 102 Units of Comparison Sale Price Per Gross Acre $1,047,684 Sale Price Per Usable Acre $1,047,684 Sale Price Per Gross Sq. Ft. $24.05 Sale Price Per Usable Sq. Ft. $24.05 Sale Price Per Developable Apartment $54,815 per 405 units including affordable units $74,000 per 300 luxury units Comments This comparable site is three adjacent parcels located in northwest quadrant of the Interstate 75 and Moccasin Wallow Road interchange. This development is 1.2 miles north of the Interstate 275 connection toward Pinellas County via Skyway Bridge across Tampa Bay. This land was cleared for development. The location is among several new single-family subdivisions along Moccasin Wallow Road east and west of Interstate 75. The number of apartment units of 405 represents bonus units including a ratio of affordable type units. The current development plan is for 300 units in eight, three-story buildings plus 8,000 square foot club house/fitness center. Parking includes 484 surface spaces plus six garages of six bays each. No commercial element is planned. The land buyer is Collier Companies of Gainesville, Florida which has numerous apartment projects throughout Florida, especially in Gainesville. Verification Eshenbaugh Land Company, Ryan Sampson 813- 287-8787; CoStar, Public Records, Deed Rendering of planned apartment buildings URS - 232098 Page 103 Comparable Land Sale Number 12 Location 10215 Estuary Lakes Drive Tampa, Florida 33619 Date of Sale March 2023 Grantor I-75/Palm River Road, LLC Grantee Estuary Apartments Owner, LLC Indicated Consideration Nominal $10,500,000 Adjusted $10,500,000 Recorded In Inst: 2023131315, page 1 of 4 Tax Parcel ID’s U-29-29-20-A4C-000000-00002.0 U-29-29-20-A4C-000000-00003.0 U-29-29-20-A4C-000000-00004.0 U-29-29-20-A4C-000000-00008.0 U-29-29-20-A4C-000000-00010.0 U-29-29-20-A4C-000000-00011.0 Site Description Gross Land Area 8.73 acres; 380,148 square feet Flood Zone District FEMA “X” above 100 year flood area; “AE” 100 year flood plain area URS - 232098 Page 104 Land Use / Zoning Commercial Units of Comparison Sale Price Per Gross Acre $1,203,163 Sale Price Per Gross Sq. Ft. $27.62 Sale Price Per Unit $34,426 Comments This comparable site is located one street away from being adjacent to the west side of interstate highway I-75 and just south of State Road 60 in Tampa. The site is on the south side of Estuary Lakes Dr. and across the street is a Carvana car dealer with a building car showroom/dispensary. The neighborhood is characterized by office, retail, and hospitality among other uses. The site was vacant. The site was also generally cleared and level. All utilities were available. The buyer plans to develop a 305-unit multi-family complex that will feature about 10,000 square feet of retail space. The community is expected to be comprised of two five-story apartment buildings and a four-story parking garage. Amenities planned are a clubhouse, fitness center, pool with a deck and pavilion. There was no distress in this arm’s length transaction and the sellers did not provide any concessions. Verification Stephanie Addis, 813-405-0965; CoStar, Public Records, Deed URS - 232098 Page 105 Comparable Land Sale Number 13 Location Little Harbor Condominium Site 462 Bahia Beach Boulevard Ruskin, Hillsborough County, Florida 33570 Date of Sale May 2023 Grantor Harborside Suites, LLC Grantee Listing Indicated Consideration Nominal $16,000,000 Adjusted $ 0 Adjusted Price $16,000,000 Recorded In OR Book NA Parcel ID Folio # 031587-0000 Site Description Gross Land Area 15.162 acres, 660,436 square feet Useable Land Area 15.162 acres, 660,436 square feet Land Use / Zoning PD, Hillsborough County Floor Area Ratio (FAR) Per approved specific plan Multi-Family Development 330 units including condos or rental apartments as of July 2023 entitled Development Density 21.8 DUA URS - 232098 Page 106 Units of Comparison Sale Price Per Gross Acre $1,055,303 Sale Price Per Usable Acre $1,055,303 Sale Price Per Gross Sq. Ft. $24.23 Sale Price Per Usable Sq. Ft. $24.23 Sale Price Per Developable Condo $48,485 Comments This comparable Bahia Beach site is located west of US 41, westerly on West Shell Point Road, south of Apollo Beach. The site will have excellent westerly views over the east side of Tampa Bay. Height restriction is 120 feet max. The Little Harbor community has wet slips and indoor dry slips, resort condos, some in a rental program, townhomes, two restaurants and The Inn at Little Harbor. The site was under contract last year at asking price, but buyer changed plans. Verification Align Commercial Realty, Yogesh Melwani, 407- 654-8200; CoStar, Public Records URS - 232098 Page 107 Comparable Land Sale Number 14 Location 101 and 102 S. Parker St., 110 Kellar Avenue and 108 Cedar Avenue (2 blocks SW of other 3 parcels) West across river from Tampa downtown core Tampa, Hillsborough County, Florida 33606 Date of Sale July 2022 Grantor Hillsborough River Realty Corp. Grantee RD RWD Tampa, LLC as Trustee (The Related Group) v Indicated Consideration Nominal $55,490,000 Less Non-MF Elements $ 9,050,000 Student housing, retail, boat slips Adjusted to MF Land $46,440,000 Recorded In ORBP 2022-353139 Tax Parcel ID Folios 194704-0000; 194707-0000; 194083-0000; and 194247-0000 Site Description for Multi-Family MF Gross Land Area 195,376 square feet MF Useable Land Area 195,376 square feet MF Useable Acres 4.485 MF Development FAR 241 DUA Land Use / Zoning Planned Development and CI, City of Tampa URS - 232098 Page 108 Units of Comparison – Multi-Family Element Sale Price Per Gross Sq. Ft. $237.70 Sale Price Per Usable Sq. Ft. $237.70 Sale Price Per Usable Acre $12,371,757 Allocated Sales Price Per Buildable Unit or Sq. Ft. Planned/Developed Building Area Mixed Use – Apartments, condos, student housing and retail plus 10 wet slips on river Comments All parcels are vacant. Three of the four parcels are across the street from one another. These three parcels were previously improved years ago, they now appear to be partially below road grade by about two to three feet. The fourth parcel, a former parking lot, is two blocks southwest from the other three. The fourth parcel is proposed for student housing. The other parcels on Parker Street are proposed for a condominium building on the west side of Parker Street and two apartment towers on the river side. This location is west across the river from Tampa downtown core and north across Kennedy Boulevard is the University of Tampa. For the overall land it is reported that the plan is for 10 boat slips on the river front, approximately 200 student housing apartments with three beds each on the Cedar Avenue parcel, about 1,080 multi-family units on the Parker Street parcels with approximately 36,000 square feet of retail space and no designated office use. Kennedy Boulevard is the main east west commercial street between downtown and Westshore Business District a distance of four miles. Buildable Type QTY $ Unit - SF Allocations MF Units 1,080 43,000$ 46,440,000$ Retail SF 36,000 110$ 3,960,000$ Student Housing 200 25,000$ 5,000,000$ Boat Slips Proposed 10 90,000$ Sale Price 55,490,000$ Other than MF Units (9,050,000)$ MF Units 46,440,000$ Addresses SF Land Sub Totals Acres 102 Parker St 96,596 101 Parker St 79,722 110 Kellar 19,058 195,376 4.485 108 Cedar 44,872 108 Cedar 31,680 76,552 1.757 Totals 271,928 6.243 URS - 232098 Page 109 There was no distress in this arm’s length land sale. City National Bank of Florida provided $30,500,000 toward the purchase price. These parcels have not been transferred since before 2000. Verification Buyer The Related Group, Alexis Wong, 305-965- 5567; CoStar, Deed, Public Records, Mortgage View east along Kennedy Boulevard over Hillsborough River toward west downtown Comparable land site on right URS - 232098 Page 110 Comparable Land Sale Number 15 Location North Tampa Street – NEC at Whiting Avenue Tampa downtown SW core Tampa, Hillsborough County, Florida 33606 Date of Sale October 2023 Grantor HT Downtown Landco VIII, LLC Grantee ASL Franklin Whiting, LLC Indicated Consideration Nominal $12,750,000 Adjusted $12,750,000 Recorded In ORBP 2023454191 Tax Parcel ID Folio 193600-0005 Site Description Gross Land Area 29,524 square feet Useable Land Area Same Useable Acres 0.68 Development FAR Per approved specific plan Multi-Family Development 300 apartments – permits in progress Development Density 440 DUA Land Use / Zoning Central Business District-2, City of Tampa URS - 232098 Page 111 Units of Comparison Sale Price Per Gross Sq. Ft. $431.85 Sale Price Per Usable Sq. Ft. $431.85 Sale Price Per Usable Acre $18,811,475 Sale Price Per Developable Apartment $42,500 Comments This parcel is in the southwest core of downtown Tampa with convenient access to Selmon Expressway and Interstates 4 and 275. The site has two corners and has been used as a parking lot; it is a near rectangular shape. There was no distress in this arm’s length cash sale. This parcel last transferred for $4,600,000 in April 2019. Verification Newmark Realty, Matthew Everett, 813-549-9026; CoStar, Public Records, Deed URS - 232098 Page 112 Comparable Land Sale Number 16 Location 940 Channelside Drive – SWC at Washington Tampa downtown NE core Tampa, Hillsborough County, Florida 33602 Date of Sale May 2023 Grantor Dynamic Channelside, LLC Grantee 940 Channelside, LLC Indicated Consideration Nominal $7,850,000 Adjusted $7,850,000 Recorded In ORBP 2023217318 Tax Parcel ID Folio 190207-0000 Site Description Gross Land Area 21,850 square feet Useable Land Area Same Useable Acres 0.50 Development FAR Per approved specific plan Multi-Family Development 262 units as “The Place” phase II Development Density 522 DUA Land Use / Zoning Channel District-3, City of Tampa URS - 232098 Page 113 Units of Comparison Sale Price Per Gross Sq. Ft. $359.27 Sale Price Per Usable Sq. Ft. $359.27 Sale Price Per Usable Acre $15,649,703 Sale Price Per Developable Apartment $29,962 Comments This parcel is in the northeast core of downtown Tampa with convenient access to Selmon Expressway and Interstates 4 and 275. The site is located on a signalized corner and has been used as a parking lot, it is a rectangular shape. The Place Phase I has been completely developed with two-eight story buildings including parking on lower floors. There was no distress in this arm’s length land sale. SJP Investment Properties, LLC provided $5,735,000 toward the purchase price. This parcel last transferred for $4,730,000 in December 2020. Verification Buyer Framework Group, Phillip Smith, 813-725- 725-3911; CoStar, Public Records, Deed, Mortgage URS - 232098 Page 114 Comparable Land Sale Number 17 Location 1237 Twiggs Street – SWC at Channelside Drive Tampa downtown NE core Tampa, Hillsborough County, Florida 33602 Date of Sale November 2021 Grantor J.H. Williams Oil Company, Inc. Grantee Hillsborough Madison, LLC Indicated Consideration Nominal $8,800,000 Adjusted $8,800,000 Recorded In ORBP 2021 608705 Tax Parcel ID Folio 190170-0000 Site Description Gross Land Area 89,050 square feet Useable Land Area Same Useable Acres 2.04 Development FAR Per approved specific plan Multi-Family Development 351 units as Parc Madison Development Density 172 DUA Land Use / Zoning Channel District-1, City of Tampa URS - 232098 Page 115 Units of Comparison Sale Price Per Gross Sq. Ft. $98.82 Sale Price Per Usable Sq. Ft. $98.82 Sale Price Per Usable Acre $4,304,638 Sale Price Per Developable Apartment $25,071 Comments This parcel is in the northeast core of downtown Tampa with convenient access to Selmon Expressway and Interstates 4 and 275. The site has two corners and is across the street from Sparkman Channel and the Port Tampa Bay Authority office building. The site is irregular but a near rectangular shape. There was no distress in this arm’s length land sale. Wells Fargo provided $71,732,000 toward the purchase price and development. This parcel had not been transferred in the last 30 years. Verification ECI Group, 770-952-1400, CoStar, Public Records, Deed, Mortgage, Media URS - 232098 Page 116 Comparable Multi-Family Land Sales Summary Chart NO.LOCATION DATE ORBP COUNTY GRANTOR / GRANTEE COUNTY PARCEL ID # SALE PRICE ADJUST ADJUSTED PRICE UPLAND SQ FT ACRES MF UNITS USABLE SQ FT ACRES DUA $/SF $/ACRE $/UNITS 1 2975 Gulf To Bay Blvd.Nov-19 David Wm. Kirkpatrick Tr.12,050,000$ 900,000$ 12,950,000$ 325,480 325,480 39.79$ Clearwater, FL 33759 20780-2197 DD Gulf To Bay, LLC Demolition 7.472 7.472 1,612,687$ WF Apts Linz Bayview Apts.Pinellas 172916-12312-000-0020 APT Dev Bay view 398 53 32,538$ 2 2981 Gulf To Bay Blvd.Oct-19 Wilder, LLC 4,700,000$ 700,000$ 5,400,000$ 190,793 190,793 28.30$ Clearwater, FL 33759 20716-1134 BVT-Bainbridge Bayview Owner Demolition 4.380 4.380 1,073,058$ WF Apts Bainbridge Bayview Apts.Pinellas 172916-12312-000-0010 APT Dev Bay view 283 65 19,081$ 3 19337 US Hwy 19 North Dec-17 Wilder, LLC 14,000,000$ 500,000$ 14,500,000$ 679,481 679,481 21.34$ Clearwater, FL 33764 21257-1163 Bayside Apts Owner, LLC Demolition 15.599 15.599 897,509$ Apts Cortland Bayside Apts.Pinellas 202916-01325-000-0020 APT Dev Bay view 360 23 40,278$ 4 2031 Glass Loop Sep-21 Southern Comfort Park, Inc.15,559,300$ 775,000$ 16,334,300$ 953,964 953,964 17.12$ Clearwater, FL 33763 21731-598 Aventon Clearwater Owner, LLC Demolition 21.900 21.900 710,470$ Apts Aventon Lana Apts.Pinellas 202916-01325-000-0020 APT Dev Inland 396 18 41,248$ 5 5105 Tyson Avenue Sep-22 Sajet Properties, LLC 15,500,000$ -$ 15,500,000$ 519,671 519,671 29.83$ Tampa, FL 33611 2022-469411 Westshore Apartments Venture 11.930 11.930 1,299,245$ Apts 325 Apts + 40 THs Hillsborough Folio # 131227-0000 APT Dev Bay inlet 325 27 47,692$ 6 5440 Tyson Avenue Jun-21 Orion Marine Construction, Inc.23,500,000$ (1,200,000)$ 22,300,000$ 691,215 691,215 32.26$ Tampa, FL 33611 2021-286840 MAA Westshore Exchange, LL|C Commercial 15.868 15.868 1,480,957$ Apts Hillsborough Folio # 131191-0000 APT Dev element Bay inlet 495 31 45,051$ 7 3015 N. Rocky Point Dr.Mar-19 BBC Rocky Point, LLC 7,800,000$ -$ 7,800,000$ 134,315 134,315 58.07$ Tampa, FL 33607 2019-139709 NR Rocky Point Owner, LLC 3.083 3.083 2,529,636$ WF Apts Emerson Apartments Hillsborough Folio # 094469-0100 APT Dev Small WF 180 58 43,333$ 8 533 3rd Ave. S.Apr-23 Receiver For Equialt Fund, LLC 20,250,000$ -$ 20,250,000$ 40,000 40,000 506.25$ St. Pete, FL 33701 22409-894 5th And 3rd Owner, LLC 0.918 0.918 22,052,250$ CBD Apts 275 5th Street - Apts Pinellas 193117-74466-052-0010+6 APT Dev CBD 367 400 55,177$ 9 1515 N. Westshore Blvd.Jul-21 The Auto Club GroupSouth, Inc.8,750,000$ -$ 8,750,000$ 83,670 83,670 104.58$ Tampa, FL 33607 2021-368156 Ally 1515, LLC 1.921 1.92 4,555,396$ Apts Office district Hillsborough Folio # 112131-0000 Office District 360 187 24,306$ 10 8350 Carolina Street Oct-22 DCNIG Sarasota 1, LLC 9,000,000$ -$ 9,000,000$ 373,309 373,309 24.11$ Sarasota, FL 34243 2022-41122355 Arlington University Park, LLC 8.570 8.570 1,050,176$ Apts Tapestry University Park Manatee 2038800059, etal 3 APT Dev East of airport 180 21 50,000$ 11 6100 Gillet Road Dec-22 RC Palmetto Apartments, LLC 22,200,000$ -$ 22,200,000$ 923,019 923,019 24.05$ Palmetto, FL 34221 2022-41151274 Collier Artisan, LLC 21.190 21.190 1,047,684$ Burb Apts Collier Artisan Apts Manatee 612110159, etal 2 APT Dev Suburban 405 19 54,815$ 12 10215 Estuary Lakes Dr.Mar-23 I-75/Palm River Road, LLC 10,500,000$ -$ 10,500,000$ 380,148 380,148 27.62$ Tampa, FL 33619 2023-131315 Estuary Apartments Owner, LLC 8.727 8.727 1,203,163$ Burb Apts Estuary Apartments+Hillsborough U292920-A4C-000000-00002.0 APT Dev Suburban 305 35 34,426$ 13 462 Bahia Beach Blvd.Oct-23 Harbor Suites, LLC 16,000,000$ -$ 16,000,000$ 660,436 660,436 24.23$ Ruskin, FL 33570 NA Listing 15.162 15.162 1,055,303$ Condo Condo site Little Harbor Hillsborough Folio # 031587-0000 Condo Entitled Bay front 330 22 48,485$ 14 101 South Parker St. et al Jul-22 Hillsborough River Realty 55,490,000$ (9,050,000)$ 46,440,000$ 195,376 195,376 237.70$ West side of Tampa CBD 2022-353139 RD RWD Tampa, LLC Other MF Allocation 4.485 4.485 12,371,757$ WF, both Tampa, FL 33606 Hillsborough 4 parcels west of Hills. River Elements CBD fringe 1,080 241 43,000$ 15 North Tampa Street Oct-23 HT Downtown Landco VIII, LLC 12,750,000$ -$ 12,750,000$ 29,524 29,524 431.85$ NEC Tampa St. & Whiting 2023-454191 ASL Franklin Whiting, LLC 0.68 0.68 18,811,475$ CBD Apts Tampa, FL 33601 Hillsborough Folio # 193600-0005 CBD 300 443 42,500$ 16 940 Channelside Dr.May-23 Dynamic Channelside, LLC 7,850,000$ -$ 7,850,000$ 21,850 21,850 359.27$ SWC @ Washington St.2023-217318 940 Channelside, LLC 0.50 0.50 15,649,703$ CBD Condo Tampa, FL 33601 Hillsborough Folio # 190207-0000 CBD 279 556 28,136$ 17 1237 E. Twiggs Street Nov-21 J.H. Williams Oil Co., Inc.8,800,000$ -$ 8,800,000$ 89,050 89,050 98.82$ SWC @ Channelside Dr.2021-608705 Hillsborough Madison, LLC 2.04 2.04 4,304,638$ CBD Apts Tampa, FL 33602 Hillsborough Folio # 190170-0000 CBD 351 172 25,071$ URS - 232098 Page 117 Comparable Land Sales Map URS - 232098 Page 118 Analysis of Comparable Land Sales All comparable land sales are compared toward the subject site for either the comparable sites’ superior or inferior characteristics in relation to the subject site. Multi-family land properties are typically analyzed on a unit of comparison basis. The unit of comparison to be used is that unit customarily used in the market in the subject property’s locale. After discussions with residential and commercial developers and investors and as evidenced by market activity, it is believed the overall sale price per planned, entitled or developed multi- family unit is appropriate as the unit of comparison for the sales comparison approach. These land comparables represent prices paid for sites for upscale apartments, some with large pools, waterfront views, roof top lounges/bars, club houses, fitness centers, business centers, structured parking garages and other quality features attracting lessees for monthly rent generally between $2.50 to $3.50 per square foot and higher for studio units and for the best located units within buildings. Rental rates are highest in downtown Tampa, up to $4.50 per square foot for small apartments, followed by St. Petersburg. (Developers state that $4.00 rents are necessary to support new urban development.) Apartments in this category typically have high quality appliances and fixtures, balconies, wet sprinklered systems for fire protection and other features. There were a variety of comparable land sales found in the overall market. The sales presented herein are the best data available and represent a reasonable basis from which to estimate value of the subject in the current market. Conditions of Sale There may be a variety of conditions of a sale for which adjustments are applicable, including contributory value of FF&E or personal property, business value, below-market seller financing, pay-outs by buyer such as for back taxes, and atypical motivation by buyers or sellers, such as the duress to sell under threat of foreclosure or quick liquidation of a lender-owned property. Conditions of sale are important to the explanation of each transaction. The conditions of sale for most commercial property transactions conform to the definition of market value. That is, there is a reasonable amount of exposure time, buyers and sellers are well informed of the property and the market, and neither buyer nor seller is under duress to transact. The comparable sales were verified as arm’s length transactions, and all sales were found to be equivalent to cash transactions. All sales represent realty. The motivations of the buyers and sellers were found to be typical for the marketplace. Transactions reflected an investor’s motivation to buy. Market Conditions The comparable land sales are compared for changes in market conditions which have occurred between the date of the comparable land sale and the date of the value estimate of the subject site. The degree of the adjustment is in proportion to the magnitude of change that has occurred URS - 232098 Page 119 in the market for land in the subject property’s locale, between the date of the comparable land sale and the date of valuation of the subject site. The greater the magnitude of change that has occurred, the greater the upward or downward adjustment is be applied to the comparable price. Supported by increasing demand, it appears land prices in the market area had increased steadily until about 2007, when the economic slowdown began and were declining by 2008. The decline of values increased in 2009, was generally flat in 2010 and 2011 and began slowly improving by 2012. Prices increased rapidly from 2013 through 2015, then the increases moderated, yet continued upward until early 2020 when the Covid pandemic began. Some properties were affected more than others. For instance, land for marina development increased to all-time highs, while land for retail declined in value. In Florida, with few Covid lockdowns and continual growth, prices increased in 2021 and 2022, yet there are signs of slowing and even a decline of prices. Recorded closing dates are often several months after the initial purchase contract for development land. Contributory Value In cases when a comparable sale has improvements which contributed to the purchase price, the estimated value of those improvements may be subtracted from the purchase price in order to estimate the portion of the price paid for the land. Also, any personal property which may have contributed to a transaction price is subtracted in order to determine the price paid for the real property. Conversely, when existing improvements or personal property are costly to remove in order to prepare the real property for highest and best use, the removal expenses may be added to the purchase price. Extraordinary Site Development Costs Extraordinary site development costs include any cost necessary to ready the comparable site for development in excess of what is typical in the market and applicable to the subject. The extraordinary costs may include excessive grading, fill dirt, legal expenses, off-site improvements, etc. Where applicable, cost of extraordinary site development is added to the nominal purchase price of the comparable sites to render the adjusted purchase price. No comparable sales were adjusted for these factors. In the case of significant demolition costs necessary to the buyer, such cost is added to the comparable transaction price. Zoning and Land Use and Dwelling Units Per Acre (DUA) This category considers differences in the zoning, current and future land use of the comparables as related to the subject. Properties allowing more intensive uses typically sell for higher prices per unit than those with more use restrictions in place and are adjusted accordingly. Zoning designations of the comparables were the same or reasonably similar to the subject and required no adjustment. In some cases, regulations may provide for a greater density than actually developed. The decision of a developer to construct a project at below the maximum allowable density permitted is based on an economic rationale, balancing construction cost savings with unit absorption. Multi-family developments often do not exceed 350 units per phase in a single URS - 232098 Page 120 project based on expected absorption and to minimize construction costs and holding costs, but may be higher in CBD urban settings. Floor Area Ratio – FAR The Floor Area Ratio reflects the ratio of land to building area, which affects ease of access, parking and the ability to expand. For example, a small site will feel cramped, and a parking space may not be available during certain times of the day. The number of stories varied for the mostly midrise comparable developments. Many of the comparables have structured parking planned with the apartment buildings. City of Clearwater responded that parking is not included in the FAR formula. Complementing the FAR comparison is density and the comparison of the number of dwelling units per acre (DUA). DUA’s are an important index and are a function of building height and the size of units. Suburban apartments may have a density of 15 units per acre and promote garden style apartments, while urban sites are developed to much higher density and promote high rise buildings. Construction costs for high rise buildings are typically much higher per square foot than low or mid-rise construction, plus parking must be constructed. Rather than buying extra land for surface parking, urban developers must construct garages at a significant cost per parking space; this is one reason that CBD urban rents are necessarily higher than suburban rents. Location The comparison for location is made for market relevant factors such as proximity to complementary supporting uses, transportation linkages, population and labor markets, and visibility, which is typically applicable to retail and other commercial uses benefitting from such visibility. The subject has a good location, offering westerly views over Clearwater Bay toward Clearwater Beach, and expansive views of sunsets are very good. Some of the comparables are bay waterfront and a few comparables are in the high demand CBDs of Tampa or St. Petersburg. Comparisons for location were appropriately given consideration. Physical Characteristics Adjustments were made for terrain, soil characteristics, configuration, site access, available utilities and the general utility or developability of the site. Utilities, terrain and soil characteristics of the comparables were generally similar to the subject. Site access varied somewhat among the comparables, yet overall similar to the subject. Configuration and site utility of the comparable sales were generally similar to the subject. Land Size The comparison for differences in land size is based upon the economic principle of diminishing marginal returns, which states that the rate of return beyond a certain point fails to increase in proportion to additional investments of labor or capital. Capital in this sense refers to physical assets such as land or building, and not money. The above principle indicates that the greater the land area, or the quantity of land units purchased, a developer will typically pay less for each additional land unit, thus lowering the overall average unit sale price. Higher density sites URS - 232098 Page 121 follow the same pattern, that larger sites may have a lower average price per unit for land. The difficulty in analyzing this factor is that construction costs begin increasing as building height increases, so the concept may not apply, particularly for those developments over 75 feet or about seven stories. Although assemblage or plottage may be necessary and result in the assembled site having greater value than the sum of the parts, this truism states that larger sites will typically sell for a lower price per square foot or per acre than smaller sites. However, due to building regulations for FARs and maximum heights, the land size may be less important for direct comparison because the primary unit of comparison is the land price paid per developable multi-family unit. The land size adjustment may not be applicable. Summary of Sales Comparison Approach Summary Chart of Land Sales We have presented a variety of multifamily land sales including many urban sites with high density. The sales indicated a range of prices from $19,081 to $55,177 per proposed multi- family unit. Transactional and market conditions and locational and physical differences were considered and they varied among the several comparables. We excluded Sale 2 as a low-price outlier as it is an older sale and also due to its extended time for contract closing and for its approvals of project design. Also, we excluded Sale 11 as a high- price outlier for a suburban development. The sales range is marginally narrower, from $25,071 to $55,177 per multi-family unit, with the higher price for a downtown St. Petersburg site. NO.LOCATION DATE GRANTEE ADJUSTED PRICE MF UNITS USABLE ACRES PRICE PER UNIT DUA MF TYPE 1 2975 Gulf To Bay Blvd.Nov-19 DD Gulf To Bay, LLC 12,950,000$ 398 7.472 32,538$ 53 WF Apts 2 2981 Gulf To Bay Blvd.Oct-19 BVT-Bainbridge Bayview Owner 5,400,000$ 283 4.380 19,081$ 65 WF Apts 3 19337 US Hwy 19 North Dec-17 Bayside Apts Owner, LLC 14,500,000$ 360 15.599 40,278$ 23 Apts 4 2031 Glass Loop Sep-21 Aventon Clearwater Owner, LLC 16,334,300$ 396 21.900 41,248$ 18 Apts 5 5105 Tyson Avenue Sep-22 Westshore Apartments Venture 15,500,000$ 325 11.930 47,692$ 27 Apts 6 5440 Tyson Avenue Jun-21 MAA Westshore Exchange, LL|C 22,300,000$ 495 15.868 45,051$ 31 Apts 7 3015 N. Rocky Point Dr.Mar-19 NR Rocky Point Owner, LLC 7,800,000$ 180 3.083 43,333$ 58 WF Apts 8 533 3rd Ave. S.Apr-23 5th And 3rd Owner, LLC 20,250,000$ 367 0.918 55,177$ 400 CBD Apts 9 1515 N. Westshore Blvd.Jul-21 Ally 1515, LLC 8,750,000$ 360 1.921 24,306$ 187 Apts 10 8350 Carolina Street Oct-22 Arlington University Park, LLC 9,000,000$ 180 8.570 50,000$ 21 Apts 11 6100 Gillet Road Dec-22 Collier Artisan, LLC 22,200,000$ 405 21.190 54,815$ 19 Burb Apts 12 10215 Estuary Lakes Dr.Mar-23 Estuary Apartments Owner, LLC 10,500,000$ 305 8.727 34,426$ 35 Burb Apts 13 462 Bahia Beach Blvd.Oct-23 Listing 16,000,000$ 330 15.162 48,485$ 22 Condo 14 101 South Parker St. et al Jul-22 RD RWD Tampa, LLC 46,400,000$ 1,008 6.243 46,032$ 161 WF, both 15 xxx North Tampa Street Oct-23 ASL Franklin Whiting, LLC 12,750,000$ 300 0.678 42,500$ 443 CBD Apts 16 940 Channelside Dr.May-23 940 Channelside, LLC 7,850,000$ 279 0.502 28,136$ 556 CBD Condo 17 1237 E. Twiggs Street Nov-21 Hillsborough Madison, LLC 8,800,000$ 351 2.044 25,071$ 172 CBD Apts URS - 232098 Page 122 There have been multiple challenging influences for the multi-family development market accumulating over the past year. The cost of construction labor and materials increased significantly, interest rates increased rapidly and lenders tightened loan terms. There has been a flattening or even lowering of rents, and Florida insurance costs per completed apartment unit have dramatically increased, from perhaps $1,500 to $2,500 per unit per year. No developer we spoke with is considering starting a new project at this time. While demand for all housing types continues to grow, much of that demand is by households who are not financially capable of buying new single-family or condominium units, and, as the economy slows, high rental rates are susceptible to being reduced. New apartment developments may experience slow absorption. Very low interest rates in 2021 and first-half 2022 spoiled the consumer for housing ownership affordability in this current market. For developers, higher interest rates contribute to projects being unfeasible. Note that condominiums are typically developed at a lower density than rental apartments, offering larger units or broader views. This often results in a higher price paid for land on a per- unit basis. However, the condominium development market is experiencing the same market forces as rental apartments and it is unlikely that a developer would consider beginning a development at this time, even if the City of Clearwater was amenable to condominium development. The quandary for an appraiser is that we have recent closings at prices that were negotiated and loans secured a year or more ago, but no one is looking to begin a new project today. Therefore, prices just paid may not be representative of current pricing. The prices paid per apartment unit varied among the comparable sales based on dates of recorded sale, downtown versus urban or suburban locations, the number of units and building designs. Considering the current multi-family market and the several challenges facing developers and investors, few developers are planning new developments. Most expect 2024 to be no better than 2023 and many expect a recession. 2025 could well be a recession year as well, but developers know demand will return and, if interest rates come down in 2024 or 2025 they will be inclined to move forward with land acquisitions and development. A longer marketing time for multi-family land and a lower price per unit than experienced in 2021 and 2022 is believed appropriate. However, there are no sales reflecting current conditions so the prices must be adjusted. For this analysis, we begin with what would be a current value based on locational and physical conditions and will then discuss a present value. The City is desirous of having the developer immediately commence development. The subject was originally proposed at 600 units, then reduced to 400 units. For our generic analysis, we estimate that a typical development would be based on a density of approximately 150 units per acre. At 2.60 acres, this is basically 400 units as proposed. This analysis would assume a marketing time of two to three years. Reducing this time for a quick sale would be referred to as a disposition value. URS - 232098 Page 123 It is our opinion that $30,000 per apartment unit best represents market value for the subject 2.60 acres as a 400 unit development based on an expected 24 to 36 month marketing period. 400 Multi-family rental units x $30,000 per rental unit = $12,000,000 URS - 232098 Page 124 Disposition Value The City is desirous of a quick sale of the property and the value for a quick sale in a slow market is often referred to as disposition value. A quick sale in a slow market requires a sufficient discount to attract capital. This is the first step, although there is no assurance that development would proceed immediately even if the land were acquired at no cost. Land cost is perhaps 10% of an overall development budget, so, when costs have increased 20%, even free land may not suffice for a feasible development. Disposition Value is: “The most probable price that a specific interest in a property should bring under the following conditions.” 1 Consummation of a sale within a specified period of time, which is shorter than the typical exposure time for such a property in that market. 2 The property is subjected to market conditions prevailing as of the date of valuation. 3 Both buyer and seller are acting prudently and knowledgeably. 4 The seller is under compulsion to sell. 5 The buyer is typically motivated. 6 Both parties are acting in what they consider to be their best interest. 7 An adequate marketing effort will be made during the exposure time. 8 Payment will be made in cash in US dollars (or local currency) or in terms of financial arrangements comparable thereto. 9 The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Based on the current market for new multifamily development, a sale at a typical price is unlikely to occur for an approximate two to three year period. Once under contract, a typical developer will require six months to one year for due diligence. There are few if any new land acquisitions occurring unless the project began planning a year or more ago, and sales that are closing today were negotiated prior to the increase in interest rates, so we have no closed sales to point to as representing current values; that is, agreements to purchase that have occurred in the last 60 days or so. Our discussions with a number of developers indicate that the increases in construction costs and interest rates have rendered current development infeasible, and none would consider currently acquiring a site just to speculatively hold it for two to three years. If no developer-user is available today to acquire a site and pay a typical price, the alternate buyer is an investor or speculator. Although we are not at that stage of the economy to analyze distress sales, in years past we conducted a number of studies in order to estimate a discount that would allow a profit sufficient for an investor to acquire a site to resell when the market strengthened. In those studies we found that a discount of 30% to 40% was necessary to attract an investor to pay what is best referred to as a liquidation value. Deducting an estimate of 30% from value indicates the following. URS - 232098 Page 125 Market Value $12,000,000 Less Discount $ 3,600,000 Liquidation Value $ 8,400,000 According to RealtyRates.com, 4th Quarter 2023 Investor Survey report, discount rates for land leases ranged from 6.89% to 18.65%. Apartment sites are at the lower end, with a range from 6.89% to 11.45%. This 30% discount would equate to a yield of approximately 12%, considered reasonable in this economic climate. This estimated value should be sufficient to attract an investor to acquire the subject site within a six month marketing period. Additional economic incentives will likely be necessary to entice a developer to proceed with development. URS - 232098 Page 126 RECONCILIATION AND FINAL VALUE ESTIMATE The value conclusions of the Cost, Sales Comparison and Income Capitalization Approaches are as follows: Cost Approach N/A Sales Comparison Approach $12,000,000 Income Capitalization Approach N/A The cost approach is most appropriate when the improvements represent the highest and best use of the site. However, as the site is vacant the cost approach was not employed. The income capitalization approach was not utilized in the estimation of value for the subject property as vacant land. The sales comparison approach employs the principle of substitution, meaning that a buyer would pay no more for the subject property than the price for which they could acquire a similar property offering similar utility and investor goal fulfillment. A variety of sales of properties similar to the subject were found throughout the market, and those considered most applicable to the subject were included within the report. Based on analysis of these sales, the indication of value of the subject by the sales comparison approach is considered quite reliable and is a credible indication of market value. Therefore, with full weight on the value estimate by the sales comparison approach, it is our opinion that the market value of the fee simple estate of the subject property, in as-is condition with an extended marketing period and as of the appraisal date, November 3, 2023, is approximately $12,000,000. It is also our opinion that the subject has a disposition value of approximately $8,400,000 with a marketing period of approximately six months. URS - 232098 Page 127 ASSUMPTIONS AND LIMITING CONDITIONS 1. The conclusions as to market value contained herein represent the opinion of the undersigned and are not to be construed in any way as a guarantee or warranty, either expressed or implied, that the property described herein will actually sell for the market value contained in this opinion. 2. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 3. No furniture, furnishings, or equipment, unless specifically indicated herein, has been included in our value conclusions. Only the real estate has been considered. 4. The property is appraised free and clear of all encumbrances, unless otherwise noted. 5. No survey of the property was made or caused to be made by the appraiser. It is assumed the legal description closely delineates the property. It was checked with public records for accuracy. Drawings in this report are to assist the reader in visualizing the property and are only an approximation of grounds or building plan. 6. It is assumed that there are no hidden or unapparent conditions of the property's subsoil or structure that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7. Subsurface rights (minerals, oil, or water) were not considered in this report. 8. Description and condition of physical improvements, if any, described herein are based on visual observation. As no engineering tests were conducted, no liability can be assumed for soundness of structural members. 9. The appraiser has inspected any improvements. Unless otherwise noted, subject improvements are assumed to be free of termites, dry rot, wet rot, or other infestation. Inspection by a reputable pest control company is recommended for any existing improvement. 10. All value estimates have been made contingent on zoning regulations and land use plans in effect as of the date of appraisal and based on information provided by governmental authorities and employees. 11. It is assumed that there is full compliance with all applicable federal, state, and local environmental laws and regulations, unless noncompliance is stated, defined, and considered in the appraisal report. 12. It is assumed that all applicable zoning and land use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. URS - 232098 Page 128 13. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is predicated. 14. No responsibility is assumed by the appraiser for applicability of "concurrency laws", referring to the 1985 amendments to Chapter 163, Florida Statutes. At this time, it is unclear what effect, if any, these laws might have on any property in any given county. As various legislative and judicial action is pending, the reader is cautioned to fully investigate the likelihood of development moratorium or other governmental action with appropriate municipal, county, or state officials. 15. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 16. Appraisal does not constitute an inspection for compliance with local building, fire, or zoning codes. Reader is advised to contact local government offices to ensure compliance with applicable ordinances. 17. This appraisal report covers only the premises herein; and no figures provided, analysis thereof, or any unit values derived therefrom are to be construed as applicable to any other property, however similar they may be. 18. Distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. Separate valuations of land and improvements must not be used in any other manner, nor in conjunction with any other appraisal, and are invalid if so used. 19. Certain data used in compiling this report was furnished by the client, his counsel, employees, and/or agent, or from other sources believed reliable. However, no liability or responsibility may be assumed for complete accuracy. 20. An effort was made to verify each comparable sale noted in the report. There are times when it is impossible to confirm a sale with the parties involved in the transaction; however, all sales are confirmed through public records. 21. Consideration for preparation of this appraisal report is payment in full by the client of all charges due the appraiser in connection therewith. Any responsibility by the appraiser for any part of this report is conditioned upon full and timely payment. 22. The appraiser, by reason of this report, is not required to give testimony in court with reference to the property herein, nor obligated to appear before any governmental body, board, or agent, unless arrangements have been previously made therefor. URS - 232098 Page 129 23. Unless otherwise noted, this appraisal has been prepared solely for the private use of the client who is listed above as the addressee. No other party is entitled to rely on the information, conclusions, or opinions contained herein. 24. Neither all nor any portion of the contents of this appraisal shall be conveyed to the public through advertising, public relations, news, sales, or other media without the written consent and approval of the appraiser, particularly as to valuation conclusions, identity of the appraiser or firm with which he is connected, or any reference to the Appraisal Institute or to the MAI designation. Furthermore, neither all nor any portion of the contents of this appraisal shall be used in connection with any offer, sale, or purchase of a security (as that term is defined in Section 2(l) of the Securities Act of 1933) without the prior express written consent of the appraiser. 25. Possession of this report or copy thereof does not convey any right of reproduction or publication, nor may it be used by any but the client, the mortgagee, or its successors or assigns, mortgage insurers, or any state or federal department or agency without the prior written consent of both the client and the appraiser, and, in any event, only in its entirety. 26. Before any loans or commitments are made predicated on value conclusions reported in this appraisal, the mortgagee should verify facts and valuation conclusions contained in this report with the appraiser. 27. Cost estimates for construction or reproduction of improvements are based on information from Marshall Valuation Service and other sources referenced in the report and are assumed accurate. 28. Estimates of expenses, particularly as to assessment by the County Property Appraiser and subsequent taxes, are based on historical or typical data. Such estimates are based on assumptions and projections which, as with any prediction, are affected by external forces, many unforeseeable. While all estimates are based on our best knowledge and belief, no responsibility can be assumed that such projections will come true. 29. Responsible ownership and competent property management are assumed. 30. Unless stated otherwise, the possibility of hazardous material, which may or may not be present on the property, was not observed by the appraiser during the course of the normal inspection and research conducted during the appraisal assignment. The appraiser, however, is not professionally qualified to detect such substances, and inspection by a professional in the field is recommended for any property. The presence of substances such as asbestos, urea- formaldehyde foam insulation, or other potentially hazardous materials could affect the value of the property, if found. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. This appraisal report is subject to receipt of an environmental audit confirming that no hazardous or toxic material is located on the premises. Should such material be discovered, final value estimates herein would be reduced by the cost to remove such substances and to restore the URS - 232098 Page 130 premises to serviceable condition and may further be reduced by indirect expenses and income losses incurred by the owner during abatement. Such adjustments to the value estimate contained herein may be made only by the appraiser and only upon receipt of the environmental audit, construction cost estimates and other data satisfactory to the appraiser at his sole discretion. 31. The Americans with Disabilities Act (ADA), enacted in 1990, provided civil rights protection to persons with disabilities. Title III of this act provides that persons with disabilities are to be provided access equal to, or similar to, that available to the general public in all areas of "public accommodation," which generally means any retail, recreation, social service or lodging establishment. It does not apply to "commercial facilities," which could be a single-tenant office or manufacturing facility, and generally does not require alterations to existing buildings, unless other alterations are made. This latter is subject to interpretation, but it should be assumed that any significant renovation requiring a building permit will also require that the building be brought to current handicap requirements for all or a portion of the building. The appraiser is not professionally qualified in these matters, this appraisal does not constitute an inspection as to compliance with the provisions of the act, and no responsibility is assumed for any known or unknown conditions related to the act, civil rights or building code provisions. A number of professional engineering firms specialize in these matters, and such professional advice should be obtained if there is any doubt as to conformity existing. URS - 232098 Page 131 APPRAISER QUALIFICATIONS QUALIFICATIONS OF H. L INWOOD G ILBERT, J R ., MAI P R E S I D E N T PRESIDENT, URBAN REALTY SOLUTIONS – TAMPA, FLORIDA, DECEMBER 1991 TO PRESENT Mr. Gilbert is the principal of Urban Realty Solutions, a real estate research and appraisal firm providing market value appraisals, market studies, feasibility analyses, damage studies and litigation support on marina, commercial, industrial and residential developments. Services available through related firms include owner representation, market research, site selection, permitting, development budgets, marketing plans, brokerage, construction progress inspections, property management and cash flow and absorption projections. Financial analysis through use of Argus and other software. Consultation with municipalities and private investors regarding economic impacts and multiplier effect of public construction and development incentives. Litigation support for construction damages, lost profits, inverse condemnation and Bert J. Harris Act damages due to imposition of Inordinate Burden. Experience includes development, construction, brokerage and property management for a variety of office, retail, industrial and marina developments. Appraisals have included all types and sizes of residential, commercial, industrial, retail and resort properties. Mr. Gilbert has qualified as an expert witness in bankruptcy, state and federal courts and in the US Virgin Islands. The firm is incorporated as Gilbert Associates, Inc., DBA Urban Realty Solutions, and has been in operation since 1991. LICENSES AND CERTIFICATIONS Florida State Certified General Real Estate Appraiser License Number RZ0940 Florida Licensed Real Estate Broker Numbers BK272378 and BK3005632 Georgia State Certified General Real Estate Appraiser No. 363425 Maryland State Certified General Real Estate Appraiser South Carolina Licensed Real Estate Broker No. 94753 Merchant Marine Master Captain License 3043346 Numerous Temporary and Reciprocal Licenses across the United States and Caribbean EDUCATION University of Georgia, Bachelor of Business Administration, 1973 Major in General Business Minors in Finance, Management, Marketing and Real Estate CONTINUING EDUCATION Courses 101 and 201 Society of Real Estate Appraisers Course II, Urban Properties (Commercial/Income) Course VI, Investment Analysis Course VIII, Residential Appraisal Capitalization Theories and Techniques (IBB) Rate Extraction Seminar Course X, Market Analysis Standards of Professional Practice Applied Appraisal Techniques Valuation Litigation / Mock Trial Capital Market Influences on Real Estate Valuation Analyzing Operating Expenses USPAP “Core” Update for Appraisers Power Lines and Electro-Magnetic Fields Effect on Value and People Eminent Domain and Land Valuation Litigation – ALI/ABA Litigation Skills for the Appraiser: An Overview Construction Contracts – Strategies for Project Completion and Litigation Avoidance CLE Eminent Domain Conference 2001 Appraisals & Federal Regulations The Valuation of Wetlands Appraising for Pension Fund Portfolios Development Analysis Valuation of Hotels and Motels Income Capitalization Workshop Advanced Capitalization Workshop Calculator and Computer Solutions to Contemporary Problems Hewlett Packard Financial Calculators – Advanced Course Impact of Environmental Considerations on Real Estate Appraisals Appraisal Regulations of the Federal Banking Agencies Discount and Capitalization Rate Components The Appraiser as Expert Witness Complex Litigation Appraisal Discount and Capitalization Rate Components Understanding Limited Appraisals and Reporting Options Tax Credits for Low Income Housing Fair Lending and the Appraiser Appraisal of Nursing Facilities Economic Worth of On-Premise Signage Florida Ad Valorem Property Tax Update Regulatory Takings & Property Rights Transportation Issues & Eminent Domain Regression Analysis in Appraisals Analyzing Distressed Real Estate Marina Retrofit, Redesign & Construction FDEP Appraising Submerged Land Easements Developing Resort, 2nd Home and Golf Course Communities, Urban Land Institute Valuing Enhancement Projects (LEED Green Buildings) & Financial Returns, BOMI Marina Dry Stack Conference, AMI Green Marina Design Marina Shoreline Development & Permitting, LSI Feasibility, Investment Timing & Options, AI Florida State Law Update for Real Estate Appraisers National USPAP Update Course Business Practices and Ethics Inverse Condemnation New Technology for the Real Estate Appraiser Instructor Leadership and Development Conference Separating Real and Personal Property from Intangible Business Assets Analyzing Commercial Lease Clauses Litigation Appraisal The Appraiser As An Expert Witness Oil Spills and Property Values Supervisor/Trainee Roles & Rules Professional’s Guide to Uniform Residential Appraisal Report IRS Valuation Federal Agencies and Appraisal: Program Updates Green Building for Appraisers Valuation of Solar Photovoltaic Systems H. Linwood Gilbert, Jr., MAI, has completed the continuing education program of the Appraisal Institute. Mr. Gilbert has also attended courses and seminars covering various aspects of real estate valuation, lending, leasing, marketing and management sponsored by The Urban Land Institute, The Ohio State University, The Massachusetts Institute of Technology, Robert Morris Associates, The Northwest Center for Professional Education, New York University, St. Petersburg College, the University of Shopping Centers (sponsored by The International Council of Shopping Centers), CCIM Institute, Federal Housing Administration, the Environmental Assessment Association and others. He has been a guest lecturer at NAIOP Real Estate Development course, Instructor of a Real Estate Appraisal Course for the International Marina Institute and was guest lecturer at the St. Petersburg BAR Association on ad valorem taxation. Mr. Gilbert is qualified as an Expert Witness in real estate valuation matters in bankruptcy and civil courts. PROFESSIONAL EXPERIENCE April 1993 to September 2004 Principal, Executive Vice President, Urban Economics, Inc. –Tampa, Florida Principal of real estate research and appraisal firm providing services similar to those provided under Urban Realty Solutions. The firm also focused on support for litigation through valuation and damage studies. Broker of transactions totaling $100+ million. February 1991 to Current President, Gilbert Associates, Inc. – St. Petersburg, Florida Real estate consulting firm providing market research, highest and best use analysis and other financial planning and marketing services. Prepared guidelines for the marketing, construction and management of distressed developments, including determination of status of development approvals, such as Development of Regional Impact, environmental and local permitting; assistance in selection of consultants and contractors, and value engineering for proposed construction. Broker of record for St. Petersburg CBD Master Retail Development company, including oversight of the St. Petersburg Pier Festive Market. 1983 to February 1991 Vice President, Development, Talquin Development Company – St. Petersburg, Florida Responsible for development of all projects in the Tampa Bay area for this Florida Progress Corporation subsidiary, which was begun by Gilbert and two partners and later acquired by Florida Progress. Conducted feasibility analyses for most projects undertaken by Development Division. Managed Development Division and was project director from concept through completion of Bank of America Tower, a 330,000-square foot, $50 million mixed-use development, The Harborage at Bayboro, a 635-slip marine complex, plus numerous office, retail, historical redevelopment and industrial projects. Negotiated partnership with The Wilson Company for development of Carillon Corporate Center, Tampa Bay’s premiere mixed use development. Organized construction, marketing, and property management departments, as well as the marine division. Property development and management included approximately 750,000 square feet of commercial and industrial properties. Negotiated major leases for buildings, air rights and submerged lands, and design/build contracts, including conversion of historic school building to moderate income apartments. Provided private sector leadership in the planning and implementation of St. Petersburg’s Intown Redevelopment program. 1978 to 1983 Vice President, Warren Hunnicutt, Jr., Inc. – St. Petersburg, Florida Appraised and conducted feasibility analyses on virtually all types of commercial, industrial, hospitality and residential properties, and including islands and environmentally sensitive lands. Conducted and published first county-wide surveys of retail and industrial markets. 1972 to 1978 Assistant Vice President, Construction Lending and Review Appraiser, Century First National Bank (now Wells Fargo) –St. Petersburg, Florida Construction and permanent loan underwriting and administration and review appraiser. Three years as Special Assets officer, handling all legal proceedings, construction completion and marketing of foreclosed properties, which ranged from major hotels to high-rise condominiums. 1969 to 1972 Real Estate Loan Representative, The Citizens & Southern National Bank – Athens, Georgia Underwrote and administered construction and permanent single-family FHA/VA and conventional loans. Appraiser trainee. Also trained in credit card, sales finance, branch management, installment lending and other departments under commercial banking management training program. PROFESSIONAL AFFILIATIONS Appraisal Institute MAI Professional Designation Real Estate Investment Council, Inc. Member Association of Eminent Domain Professionals Member The International Marina Institute Member, Instructor Southwest Florida Marine Industries Association Member Marina Operators Association of America Member Florida Association for the Restoration of Ethics, Inc. Member Urban Land Institute Member PIANC – The World Association for Waterborne Transport Infrastructure Member Drystack Working Group Member CIVIC ACTIVITIES Past and present memberships include: Board of Directors of Tampa Union Station Preservation and Restoration, Inc.; Co-chairman, Council of Elders of the Community Alliance of St. Petersburg, a biracial organization; Former Board of Governors and Chairman, Transportation Committee, The St. Petersburg Area Chamber of Commerce; Former Board Member and Treasurer, The National Association of Industrial and Office Parks; Former Board Member, The Science Center of Pinellas County (an educational institution); Former Board Member and Transportation Committee Chairman, The Committee of 100 of Pinellas County; Former Board Member, Gulfcoast Certified Development Corporation; Member, Leadership St. Pete and Leadership Tampa Bay Alumni Associations, and a Member of the former St. Petersburg Suncoasters, sponsors of the Festival of States. Member, Marine Industry Association of Southwest Florida. QUALIFICATIONS OF W AYNE B EURNIER C E R T I F I E D G E N E R A L A P P R A I S E R EDUCATION Ohio Dominican University, Bachelor of Business Administration Ohio Department of Transportation, Real Estate Principles Xavier University/University of Dayton, Master of Business Administration program Real Estate Institute of Ohio State University, Graduate of Realtors Institute CONTINUING EDUCATION Real Estate Taxation Coal Financing Philosophy of Science FNMA Guidelines Appraisal AB II, Florida Litigation Valuation Florida Mortgage Brokerage Residential Appraisal Review Market Abstraction Business Value Capitalization Manufactured Housing Subdivision Analysis Site Analysis and Valuation Historic Properties Warehouse Incubators Florida State Law Update – Current USPAP Regulations – Current OHIO STATE UNIVERSITY Insurance Procedures Real Estate Marketing Real Estate Finance Real Estate Valuation National Security Policy Real Estate Law Financial Institutions Geography & Climate Production & Operations Management Economic Geography APPRAISAL INSTITUTE • Appraisal Principles • Capitalization • Single-Family • Urban Properties • Condemnation • Investments • Industrial • Standards of Professional Practice • Capitalization 310 LICENSES AND CERTIFICATIONS Certified General Real Estate Appraiser, State of Florida, License Number RZ1307 Licensed Real Estate Broker, State of Florida, License Number BK434062 PROFESSIONAL AFFILIATIONS National Association of Realtors Florida Association of Realtors Greater Tampa Association of Realtors PROFESSIONAL EXPERIENCE September 2004 – Present Urban Realty Solutions, Tampa, Florida September 1997 – 2004 Associate Appraiser, Urban Economics, Inc., Tampa, Florida 1990-1997 Appraiser Owner, Beurnier Associates, Realty Consultant, Tampa, Florida 1989-1990 Associate Appraiser, Regional Appraisal Company, Manhattan, New York 1988-1989 Appraiser Owner, Beurnier Associates, Tampa Florida 1987 Associate Appraiser, Marshall and Stevens, Tampa, Florida 1986 Associate Appraiser, Henderson Appraisal Company, Tampa, Florida 1984-1985 Associate Appraiser, AmeriFirst Appraisal Company, Fort Myers, Florida 1981-1984 Associate Appraiser, Nash – Wilson Appraisal Company, Columbus, Ohio 1976-1980 Appraiser Owner, Beurnier and Associates, Columbus, Ohio 1971-1975 Staff and Review Appraiser, Policy and Procedures Development, Bureau of Appraisals, Ohio Department Of Transportation, Columbus, Ohio APPRAISAL EXPERIENCE Mr. Beurnier’s experience has included real estate market valuation, insurance valuation and liquidation valuation. Clients included financial institutions, states and municipalities, attorneys, merger and acquisitions principals, real estate developers, property owners and prospective purchasers. Assignments have been in several states and with a concentration of Florida. Classifications of valuation include: complex real estate; simplex going concern business values; eminent domain; ad valorem tax appeal; litigation support; federal tax reporting; most categories of vacant land including subdivision analysis; residential single-family, condominiums, estates and small income properties; agricultural properties; mobile home and manufactured home parks; RV parks; hotels/motels; resorts; golf courses; automotive services; self-storage facilities; industrial warehouses; flex space; processing plants; hi-tech and clean room facilities; juvenile correctional facilities; church facilities; apartment buildings and cooperatives; suburban and high rise office buildings; single and multi-tenant retail properties; triple net properties; restaurants; mixed use properties; commercial condominiums- medical, office, retail and industrial; coastal, river and lake marinas; feasibility analysis; and highest and best use analysis. Appraisal Report Vacant Land 112 S Osceola Ave Clearwater, Pinellas County, Florida Prepared For: Mr. Dylan Mayeux City of Clearwater 600 Cleveland St, Suite 600 Clearwater, FL, 33755 Prepared By: Entreken Associates, Inc. 1100 16th Street North Saint Petersburg, Florida 33705 EAI File #: 20230294 November 16, 2023 Mr. Dylan Mayeux City of Clearwater 600 Cleveland St, Suite 600 Clearwater, FL 33755 Re: Appraisal Report 112 S Osceola Ave Clearwater, FL, 33756 Dear Mr. Mayeux: As requested, Entreken Associates, Inc. has prepared an Appraisal Report of the above-referenced property for the purpose of estimating the value of the Fee Simple market value of the property and the Encumbered market value of the property, as is, as of the effective date of value. The subject property is located at the northwest corner of S Osceola Ave and Pierce St in Clearwater. The subject property is a 2.60± acre site or 113,256± square foot parcel of land. The subject parcel is yet to be identified, but the parent property is identified by the Pinellas County Property Appraiser as Parcel Number 16-29-15-20358-001-0040. The subject property is more fully described in the body of this report. To the best of our knowledge and belief, our analyses, opinions, and conclusions were developed, and this report has been prepared in conformance with the standards and reporting requirements set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), as promulgated by the Appraisal Standards Board of the Appraisal Foundation; the FDIC Market Value Definition; the Appraisal Institute's Code of Ethics and Standards of Professional Practice; Title XI of the Federal Financial Institution Reform, Recovery, and Enforcement Act of 1989 (FIRREA), the Interagency Appraisal and Evaluation Guidelines; as well as our understanding of the appraisal guidelines of the City of Clearwater. The client of this report is the City of Clearwater. The intended user of this report is the City of Clearwater. The intended use of this report is to determine the as is fee simple market value and as is encumbered market values of the subject property for internal use. No other use or users are intended or authorized by Entreken Associates, Inc. The scope of this assignment is restricted to the specific identified intended use and user noted above. Under no circumstances, shall any of the following parties be entitled to use or rely on the appraisal or this appraisal report: (i) the borrower(s) on any loans or financing relating to or secured by the subject property, (ii) any guarantor(s) of such loans or financing, or (iii) principals, shareholders, investors, members or partners of such borrower(s) or guarantor(s). This letter is not an appraisal report, hence, it must not be removed from the attached appraisal report. If this letter is disjoined from the attached appraisal, then the value opinions set forth in this letter are invalid and the analyses, opinions, and conclusions developed herein cannot be properly understood. We certify that we have no present or contemplated future interest in the property beyond this estimate of value. The appraiser has not performed any services regarding the subject within the three-year period immediately preceding acceptance of this assignment. Your attention is directed to the Limiting Conditions and Assumptions section of this report. Acceptance of this report constitutes an agreement with these conditions and assumptions. In particular, we note the following: Hypothetical Conditions The as is current value of the subject is first estimated assuming there are no restrictions or encumbrances in regards to development and the subject can be developed in accordance with the existing zoning. The as is current value has also been estimated assuming the subject is encumbered with a deed restriction, whereas the future development of the site would require a mnimum of 400 apartment units, as well as up to 15,000 SF of commercial space, and 440 or more parking spaces. Finally, the as is current value has also been estimated assuming the subject is encumbered with a deed restriction, whereas the future development of the site would require 400 apartment units in a single 28-storey tower construction, as well as up to 15,000 SF of commercial space, and 440 parking spaces including one level of basement parking, as proposed in the revised Gotham presentation. Extraordinary Assumptions There are no Extraordinary Assumptions for this appraisal. Based on the appraisal described in the accompanying report, subject to the Assumptions and Limiting Conditions, Extraordinary Assumptions and Hypothetical Conditions (if any), we have made the following value conclusions: We have also concluded to the following market values as part of the analysis: Premise Interest Appraised Effective Date Value Conclusion Estimated Marketing Current Market Value Fee Simple 10/17/2023 $16,000,000 5-7 months Current Market Value Deed Restricted - 400+ unit Apartment Project 10/17/2023 $9,000,000 5-7 months Current Market Value Deed Restricted - Revised Gotham 400 unit Single Tower Proposal - Including Subsidies 10/17/2023 $3,450,000 5-7 months Value Conclusions It has been a pleasure to assist you in this assignment. If you have any questions concerning the analyses, or if Entreken Associates, Inc. can be of additional service, please contact us. Respectfully submitted, Entreken Associates, Inc. Wesley R. Sanders, MAI, AI-GRS, CCIM Senior Managing Director State-Certified General Real Estate Appraiser RZ2911 wsanders@eairealestate.com 727.256.8025 Tampa Bay Office 1100 16th St N, St. Petersburg, FL 33705 http://eairealestate.com Page 1 Table of Contents Summary of Salient Facts and Conclusions ............................................................................................................. 2 Scope of Work .............................................................................................................................................................. 4 General .......................................................................................................................................................................... 7 Site Analysis Summary ............................................................................................................................................... 9 Highest and Best Use ................................................................................................................................................ 14 Sales Comparison Approach – No Encumbrances ................................................................................................. 16 Sales Comparison Approach – 400 Unit Rental Apartment Site ............................................................................ 22 Valuation – 400 Unit, Single Tower Rental Apartment Site (Revised Gotham Proposal) ..................................... 27 Final Reconciliation ................................................................................................................................................... 36 Certification Statement .............................................................................................................................................. 37 Basic Assumptions and Limiting Conditions .......................................................................................................... 38 Addenda ...................................................................................................................................................................... 41 Regional Analysis ...................................................................................................................................................... 42 Neighborhood Analysis ............................................................................................................................................. 50 Engagement Letter ..................................................................................................................................................... 57 Legal Description ....................................................................................................................................................... 58 Subject Photographs ................................................................................................................................................. 59 Land Sale Comparables - Unencumbered ............................................................................................................... 65 Land Sale Comparables - Encumbered .................................................................................................................... 68 Qualifications ............................................................................................................................................................. 75 Page 2 Summary of Salient Facts and Conclusions Report Date 11/16/2023 Inspection Date 10/17/2023 As Is Date of Value 10/17/2023 Report Dates Property Name N1DBProperty_NameVacant Land Property Major Type N1DBProperty_Major_TypeLand Address N1DBAddress112 S Osceola Ave City N1DBCityClearwater County N1DBCountyPinellas State N1DBStateFL Zip N1DBZip33756 Tax ID N1DBTax_ID16-29-15-20358-001-0040 Owner N1DBOwnerCity of Clearwater Land SF N1DBLand_SF113,256 Acres N1DBAcres2.60 Zoning N1DBZoningD Subject Summary Highest and Best Use as Vacant Mixed Use Development Highest and Best Use Extraordinary Assumptions There are no Extraordinary Assumptions for this appraisal. Hypothetical Conditions The as is current value of the subject is first estimated assuming there are no restrictions or encumbrances in regards to development and the subject can be developed in accordance with the existing zoning. The as is current value has also been estimated assuming the subject is encumbered with a deed restriction, whereas the future development of the site would require a mnimum of 400 apartment units, as well as up to 15,000 SF of commercial space, and 440 or more parking spaces. Finally, the as is current value has also been estimated assuming the subject is encumbered with a deed restriction, whereas the future development of the site would require 400 apartment units in a single 28-storey tower construction, as well as up to 15,000 SF of commercial space, and 440 parking spaces including one level of basement parking, as proposed in the revised Gotham presentation. Page 3 Projected Exposure and Marketing Time Exposure time is estimated at 5-7 months for the subject property. Marketing time is estimated at 5-7 months for the subject Premise Interest Appraised Effective Date Value Conclusion Estimated Marketing Current Market Value Fee Simple 10/17/2023 $16,000,000 5-7 months Current Market Value Deed Restricted - 400+ unit Apartment Project 10/17/2023 $9,000,000 5-7 months Current Market Value Deed Restricted - Revised Gotham 400 unit Single Tower Proposal - Including Subsidies 10/17/2023 $3,450,000 5-7 months Value Conclusions Page 4 Scope of Work According to the Uniform Standards of Professional Appraisal Practice, it is the appraiser’s responsibility to develop and report a scope of work that results in credible results that are appropriate for the appraisal problem and intended user(s). Therefore, the appraiser must identify and consider: ● the client and intended users; ● the intended use of the report; ● the type and definition of value; ● the effective date of value; ● assignment conditions; ● typical client expectations; and ● typical appraisal work by peers for similar assignments. Intended Use To determine the as is fee simple market value and as is encumbered market values of the subject property for internal use. Intended Users City of Clearwater Intended Use and Users No other use is intended or authorized by Entreken Associates, Inc. The scope of this assignment is restricted to the specific identified intended use and user noted above. Under no circumstances, shall any of the following parties be entitled to use or rely on the appraisal or this appraisal report: (i) the borrower(s) on any loans or financing relating to or secured by the subject property, (ii) any guarantor(s) of such loans or financing, or (iii) principals, shareholders, investors, members or partners of such borrower(s) or guarantor(s). Scope Problem To estimate the fee simple market value of the subject property as if vacant under the current zoning with no special development restrictions, as well as two additional development scenarios with deed restrictions that require development of 400 apartment units, 15,000 SF of commercial space, and 440 parking spaces. Appraisal Report Based on the intended users understanding of the subject's physical, economic and legal characteristics, and the intended use of this appraisal, an appraisal report format was used. This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2(a). This format provides a summary or description of the appraisal process, subject and market data and valuation analyses. Page 5 Report Format Although the current USPAP does not discern between appraisal report formatting, Entreken Associates, Inc., has adapted the following descriptions and comparisons to previous editions of USPAP. Entreken Associates, Inc. Report format descriptions: Comprehensive Format - Similar to the former Self-Contained Appraisal Report requirements and provides the greatest depth and detail of analysis in an appraisal. Summary Format - Similar to the former Summary Appraisal Report requirements and provides a summary of the analysis, property type overviews, and area analysis. Abbreviated Summary Format - Meets the minimum requirements of the former Summary Appraisal Report and provides a brief summary of data and analysis, as well as summary overviews. Concise Format: Meets the minimum requirements of USPAP for an Appraisal Report and provides a concise summary of data and analysis. This format also resembles a form report for some sections and has minimal overviews. The current USPAP Restricted Appraisal Report is equivalent to the former Restricted-Use Appraisal Report and states the valuation conclusions. This analysis was prepared in a Summary Format. Additional supporting documentation is retained in our workfile. The significant elements of scope included the following: Inspection of the subject property. Collection, verification, and analysis of market data through searches of our in-house sales database, and multiple subscription-based sales databases. It is our opinion that the scope of research and analysis associated with this Appraisal Report is adequate to produce a credible value conclusion that will serve the needs of the client. Market Area and Analysis of Market Conditions A complete analysis of market conditions has been made. We maintain and have access to comprehensive databases for this market area and have reviewed the market for sales and listings relevant to this analysis. The market overview is retained in our files and database. The reader is cautioned, and reminded that the conclusions presented in this appraisal report apply only as of the effective date(s) indicated. The appraiser makes no representation as to the effect on the subject property of any unforeseen event, subsequent to the effective date of the appraisal. Highest and Best Use A highest and best use analysis for the subject has been conducted. Physically possible, legally permissible and financially feasible uses were considered, and the maximally productive use was concluded. Property Identification The subject has been identified by the legal description and the assessors' parcel number. Property Rights Appraised We have appraised the Fee Simple property rights. Subject Inspection An exterior inspection of the subject property has been made, and photographs taken. Role Name Inspected Extent Date of Inspection Appraiser Wesley R. Sanders, MAI, AI-GRS, CCIM has Exterior 10/17/2023 Property Inspection and Report Compilation Assistance Use of Real Estate as of Effective Date of Value As of the as is effective date of the appraisal, the subject was a Vacant Land property. Page 6 Appraisal Process Typically, the cost, sales comparison, and income approaches are used in determining the value of a property. The indicated value developed by these various approaches is weighed by the Appraiser based on the reliability of market data in determining the final value estimate. Income Capitalization Approach The income approach measures the present worth of anticipated future benefits (net income) derived from a property. The approach develops the subject property's estimated net income during the remaining economic life of the improvements. It consists of estimated vacancy, gross income, expenses and other charges. The net income is capitalized to arrive at an indication of value. In the case of multi-tenanted properties, or where a property is not fully leased, a discounted cash flow (DCF) analysis may also be appropriate. Sales Comparison Approach The sales comparison approach produces a value estimate by comparing the subject property to recent sales of similar properties in the same or competing market areas. Inherent in this approach is the principle of substitution. The comparative process involves judgment as to the similarity of the subject and the comparable sale with respect value factors such as the time of sale, land size, building size and quality of construction. The estimated value through this approach represents the probable price at which the subject property would be sold as of the date of value. Cost Approach The cost approach considers the current cost of reproducing a property, less depreciation. The value of the land, as if vacant and available for development, is added to the depreciated cost in arriving at a value conclusion by the cost approach. This approach is based on the assumption that a purchaser is not warranted in paying more for a property than the cost of the land and duplicating the improvements. Applicable Appraisal Methods x x Methods Utilized the subject is vacant land. there is adequate data to develop a value estimate and this approach reflects market behavior for this property type. the value of the subject is estimated using the cash flows from the forecast rental income over the projected costs. Net income generated by the ongoing operation of the apartments is determined and using two capitalization methods: direct capitalization and yield capitalization, a reasonable value of the land (land residual technique) is estimated. Income Approach Sales Comparison Approach Cost Approach Conformity We developed our analyses, opinions and conclusions and prepared this report in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation; the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA); and the requirements of our client as we understand them. Sources of Information We obtained information from public records, the client, property contact, and a variety of sources as noted throughout the report. Category Sources Market Data MLS, CoStar, Public Records, Third-party sources including paid subscription services and our internal database Ownership & Transaction History Pinellas County Public Records Assessment & Tax Data Pinellas County Public Records Site Data Pinellas County Public Records & Site Survey Zoning Data City of Clearwater Public Records Sale Comparables MLS, CoStar, Public Records, Third-party sources including paid subscription services and our internal database Data Sources Page 7 General Property Identification The subject property is a 2.60± acre site or 113,256± square foot parcel of land. The subject property is located at 112 S Osceola Ave within Clearwater, Pinellas County, Florida. The subject property is identified by the Pinellas County Property Appraiser as Parcel Number(s) 16-29-15-20358-001-0040. Legal Description: Abbreviated as:That portion of the East 402.04 feet of Lots 3, 4, & 5 of Block A, John R. Daveys Re-Subdivision, as shown on plat recorded in Plat Book 1, Page 87 of the Public Records of Hillsborough County, Florida, of which Pinellas County was formerly a part; lying South of those lands described in Official Records Book 14700, Page 1498, of the Public Records of Pinellas County, Florida. LESS the East 15 feet of said Block A; and LESS the South 20 feet of said Lot 5 per City of Clearwater Resolution 64-180, recorded in Official Records Book 2059, Page 493, of the Public Records of Pinellas County, Florida. The full legal description is in the Addenda of this report. Inspection Date:October 17, 2023 Date of Report:November 16, 2023 Ownership History:Current ownership of the parcel is under the City of Clearwater. We are not aware of any transactions that have involved the subject property in the past three years. In 2022, Clearwater council and the Gotham Group signed a development agreement that includes purchasing the subject City Hall site for $15.4 million and the Harborview Center site for $9.3 million. The city would offer developer incentives, $1.5 million toward impact fees to be paid for by the Community Redevelopment Agency, the creation of a special downtown tax district, up to $2 million to split the cost of a pedestrian bridge and $22 million for two underground parking garages to be paid from the city’s parking fund. Gotham has since stated that the market has changed so dramatically they can no longer proceed with their plans and are proposing a scaled-down development and seeking to reduce the price of the subject City Hall site. Personal Property/ Non-Realty Items: None, personal property owned by the occupant. Real Estate Taxes:Assessing Authority: Pinellas County Assessment Year: 2023 The subject property is a portion of Parcel ID 16-29-15-20358-001-0040, is owned by the City of Clearwater and is tax exempt. The 2023 assessment of the parent parcel is summarized below. The total assessment was $22,851,832 and the taxes concluded were calculated at $465,311 using the 2022 millage rates (2023 rates not yet disclosed) and assessed values if taxes were due on the property. This assessment seems to be in line with the assessments of similar properties in the area. There were no past due taxes owed as of the inspection date. Page 8 The following table presents the current real estate assessment and taxes for the parent tract, if the property were not tax exempt, including non-ad valorem assessments and any cap adjustments applied to the subject property. Current Real Estate Assessment and Taxes School District All Other Total 16-29-15-20358-001-0040 $22,851,832 $22,851,832 Total Assessed Value $22,851,832 $22,851,832 Less: Total Cap Adjustment $0 $0 Total Taxable Value $22,851,832 $22,851,832 Millage Rate 5.96300 14.39910 20.36210 Assessment Per $1,000 $1,000 Total Ad Valorem Taxes $136,265 $329,046 $465,311 Total Non-Ad Valorem Taxes $0 Total Real Estate Taxes $465,311 Page 9 Site Analysis Summary Location: The subject property is located at the northwest corner of S Osceola Ave and Pierce St in Clearwater. This location is good for a commercial and residential use. Aerial Map Plat Map Page 10 Parcel ID 16-29-15-20358-001-0040 Location northwest corner of S Osceola Ave and Pierce St in Clearwater Map Latitude 27.964379 Map Longitude -82.802334 Site Analysis & Comments The site has average and typical utility. Site Summary Gross Land Area (Sq Ft)113,256 Gross Land Area (Acres)2.60 Usable Land Area (Sq Ft)113,256 Usable Land Area (Acres)2.60 Site Size Attributes Hazardous Material No hazardous materials were observed on the subject site. However, we are not experts in the matters of the presence or effects of hazardous materials; therefore, we assume hazardous material is not present on the site. Primary Frontage Street Name S Osceola Ave Secondary Frontage Street Name Pierce St Frontage - Primary Street (Feet)295 Frontage - Secondary Street (Feet)681 View Very Good Access Average Site Visibility Average Street Lighting Yes Sidewalks Yes Curb and Gutter Yes Topography The subject has level topography at grade, with the subject property elevated above the remainder of the parent property due to the presence of a bluff. Shape Roughly rectangular Soil Conditions Adequate for development Site Characteristics Adequacy of Utilities The subject's utilities are typical and adequate for the market area. Public Electricity The site is served by public electricity Water Supply Type City water Sewer Type City sewer Site Utilities FEMA Map #12103C0108J FEMA Map Date 8/24/2021 Flood Zone Zone X Flood Zone Comments The Zone X classification is in an area located outside the 100-year designated flood hazard area. Encumbrance / Easement Description There are no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions. Environmental Issues There are no known adverse environmental conditions on the subject site. Please reference Limiting Conditions and Assumptions. Site Hazards Site Comments The site has average and typical utility. Page 11 Flood Map Site Survey Page 12 Zoning 1 Zoning Authority City of Clearwater Zoning District City of Clearwater Zoning Code D Zoning Type/Description Downtown/Downtown Core Character District Current Use Permitted Yes Current Use Legally Conforming Yes Zoning Intent/Summary The Downtown Core Character District is intended for high intensity mixed- use, office, and residential development in buildings with active ground floor uses opening onto pedestrian-friendly streetscapes. Standards are designed to support a dense urban pattern of development with buildings façades aligned along public sidewalks and parking primarily located within buildings behind active uses and behind buildings. Properties adjacent to the Pinellas Trail are designed to provide pedestrian and bicycle connections to the trail. There is no height restriction and the maximum densityis 75 multi- family units per acre, with a maximum FAR of 4.0. The is also a Public Amenities Incentive Pool and the Pool allocation process is established in the Clearwater Downtown Redevelopment Plan. The Pool allows for density and/or intensityincreases in excess of the allowable maximum development potential established for a parcel for projects that meet the goals, objectives, and policies of the Redevelopment Plan and are consistent with the vision established for the character district in which the projects are located. Future Land Use CBD Future Land Use Description Central Business District Zoning Consistent with FLU Yes Development Standards Max FAR 4 Front Set Back Distance Varies by use Side Yard Distance Varies by use or as required by fire code Back Yard Distance 10' Maximum Building Height Unlimited Zoning Parking Requirements 1 space per unit Site Conforms to current standards Yes Zoning Data Source City of Clearwater Code of Ordinances Zoning Comments The D zoning district has a max floor area ratio (FAR) of 4.0, a max densityof 75 units per acre, and no maximum height. Development of the site appears feasible. Zoning Summary Page 13 Zoning Map Page 14 Highest and Best Use Highest and best use may be defined as the reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. 1. Legally Permissible: What uses are permitted by zoning and other legal restrictions? 2. Physically Possible: To what use is the site physically adaptable? 3. Financially Feasible: Which possible and permissible use will produce any net return to the owner of the site? 4. Maximally Productive. Among the feasible uses which use will produce the highest net return, (i.e., the highest present worth)? Page 15 Zoning Code, District D, Downtown/Downtown Core Character District Permitted Uses The Downtown designation has a wide variety of permitted uses. These include multi-family, bars, brewpubs, congregate care facilities, medical clinics, museums, offices, hotels, places of worship, research and technology facilities, restaurants, retail, schools, and community centers to name a few. Future Land Use CBD, Central Business District Future Land Use - Permitted Uses Moderate to High Density Residential; Office; Retail Sales & Service; Public/Semi-Public uses as indicated in approved Redevelopment Plan Legally Permissible Comments Given the legally permissible uses under the zoning and future land use, a mixed use is given further consideration in determining the highest and best use of the site, as vacant. We also have to consider the encumbrances in the additional valuation scenarios where apartments are required as the type of development. Physically Possible Land Size 2.60 acres, 113,256 square feet Shape Roughly rectangular Topography The subject has level topography at grade, with the subject property elevated above the remainder of the parent property due to the presence of a bluff. Utilities The subject's utilities are typical and adequate for the market area. The site is served by public electricity, City water, City sewer Access Average Visibility Average Functional Utility Average Physically Possible Comments Based on an analysis of the physical characteristics of the site, there does not appear to be any adverse conditions or lack of utility. Thus, there are no apparent physical or functional problems with the site, which would hinder development. Financially Feasible Of the legally permissible uses that are physically possible, we have analyzed the market for sales and rental rates versus the cost to construct for the uses that are financially feasible. This includes mixed use development. Maximally Productive There does not appear to be any reasonably probable use of the subject site that would generate a higher residual land value than a mixed use. Accordingly, we have concluded that a mixed use, developed to the normal market density permitted by current zoning and development standards, is the maximally productive use of the property. For the current value of the subject with no restrictions regarding the type and scale of development, we have concluded that development of the subject with 195 condominium units (using the 2.60 ac site area x maximum density of 75 units/acre) would be the maximally productive use. Under the additional valuation approaches with the encumbrance to develop the site with apartment units, we have concluded that development of the subject with apartments would be the maximally productive use. Highest and Best Use as Vacant Mixed Use Development Highest and Best Use as Vacant Most Probable Purchaser Based on opinions of market participants, the subject parcel would most likely be purchased by a local or regional developer. Page 16 Sales Comparison Approach – No Encumbrances Land Analysis To estimate the land value, we have utilized the Sales Comparison Approach. In this approach the appraiser develops an opinion of value by analyzing similar properties and comparing these properties with the subject property. Application of the sales comparison approach requires the comparing and rating of other comparable properties to the property appraised. The aim of this approach is to develop indications of what the comparable sales would have sold for if they had possessed all of the basic and pertinent physical, functional and external characteristics of the subject property. The steps involved in the Sales Comparison Approach are summarized as follows: 1. Comparable land sales data in the competitive market is obtained and verified, whenever possible; 2. Market-oriented unit(s) of comparison is determined and applied to each of the comparable sales; 3. The elements of comparison that affect the value of the property being appraised are identified and applied to each comparable sale; 4. A net adjustment is applied to each comparable unit sale price to arrive at a range of adjusted sale or unit prices for the subject property; and 5. The adjusted prices are reconciled to an indication of an appropriate value of the subject property. Comparable Sales Data The subject is located in Clearwater. According to the zoning, the maximum allowable density for the subject would be 195 units. As discussed previously, the subject would have a Highest and Best Use – Unencumbered for development of 195 condominium units. We have identified recent sales of vacant land purchased for development of condominiums in Clearwater. The comparable land sales selected represent the best available for this analysis. The most widely used unit of comparison in this market for the subject property type is based on the development potential of the site on a residential per unit basis. As a result, we have analyzed the comparable sales on a price per unit. The comparable land sales included in this appraisal report are summarized in the table below. The following page includes a location map for the comparable land sales and reflects proximity to the subject property. The Addenda contains comparable land sales data sheets. Given the characteristics of the subject site, as well as the information obtained for the comparable data, the comparables were analyzed through the application of a traditional adjustment grid using percentage adjustments. Comp Address City Date Price No. of Units Price Per Unit Subject 112 S Osceola Ave Clearwater --195 -- 1 900 N Osceola Ave Clearwater 5/2/2018 $4,875,000 87 $56,034 2 125 Island Way Clearwater 1/14/2021 $2,680,000 27 $99,259 3 415 Island Way Clearwater 9/15/2021 $3,800,000 46 $82,609 Page 17 Land Sales Map The Adjustment Process The main points of comparison for this analysis include the transactional elements such as property rights conveyed, financial terms, the conditions and/or motivations surrounding the sale, and changes in market conditions since the sale date. Property level adjustments account for differences in the locational, physical and economics elements of the sales as compared to the subject property. The comparable sales utilized herein were analyzed relative to the subject property for the following factors: Transactional Components Property Rights Conveyed Adjustments were made when applicable for conveyance of property rights other than those being appraised herein. No transactional components adjustments were warranted for the comparable land sales. Financing Terms Adjustments were made when applicable for extraordinary, special or non-market financing or credits provided by the seller or others which may have influenced the sale price. No adjustment is required. Conditions of Sale Adjustments were made when applicable for non-arm’s length sale transactions and/or atypical conditions. Each of the sales (or pending sales) was an arm’s length transaction. No conditions of sale adjustments are required. Expenditures After Sale Adjustments were made when applicable for any reported anticipated expenditures that were incurred after the comparable was purchased. No adjustments are required. Page 18 Market Conditions The sales used represent reasonably similar land parcels compared to the subject’s underlying land, which sold since May 2018. Based on the following table, prices for improved multifamily properties increased significantly from May 2018 into mid-2022. Prices have declined slightly since then. Therefore, Sales 1, 2, and 3 require upward adjustments for improved market conditions up to the effective date of the report. Property Level Characteristics Location The subject property is located at the northwest corner of S Osceola Ave and Pierce St in Clearwater. Each of the sales was adjusted, if required, for locational characteristics differing from those of the subject property. Sale 1 is located just north of Downtown Clearwater, directly on Clearwater Bay overlooking a marina, requiring a downward adjustment for location. Sales 2 and 3 are located in Island Estates, a quiet residential neighborhood in Clearwater Bay with closer proximity to Clearwater Beach, with downward adjustments required. Topography The subject site has a generally level topography. Each of the land sales has a similar topography; therefore, no adjustments were warranted. Shape The subject site is rectangular. Sale 1 is irregular in shape due to the existing marina, with an upward adjustment required. Sales 2 and 3 are rectangular and conducive to development with no adjustments warranted. Utilities The subject and comparables have access to all public utilities with no adjustments warranted. Zoning/Density The subject property is located in the D zoning district with a maximum density per acre of 75 units per acre. The proposed densities among the three comparable sales are summarized as follows. Sale 1: 2.12 acres-87 units = 41 Units/Ac Sale 2: 0.90 acres-27 units = 30 Units/Ac Sale 3: 1.35 acres-46 units = 34 Units/Ac Page 19 There is generally an inverse size and rate relationship where lands producing a higher yield (units per acre) typically trade at a higher rate per acre and vice versa. With respect to density, those developments which have significantly higher density per acre generate much lower sale prices per unit due to the impact of economies of scale. Conversely lower density sites tend to generate higher rates per unit. Inherent within this theory, a typical purchaser will consider the total unit inventory and its risks associated with higher or lower unit count (density) and pay accordingly based on current market indices. All three comparable sales indicated a similar range related to density per acre and we have applied an upward adjustment to each sale compared to the subject’s allowed 75 units per acre based on the related economies of scale. The subject property is located in the Downtown Core zoning district offering unlimited height and up to 75 units per acre. Comparables 1, 2, and 3 would all allow for less density and height. As we are valuing the subject on a price per unit with adjustments for zoning/density, the adjustment detailed above with respect to density would also take into account the zoning of the properties in comparison to the subject. Flood Zone Comparables 1, 2, & 3 were located in Flood Zone AE, requiring additional flood insurance. Overall, upward adjustments are required. Summary of Adjustments The following table presents a summary of the adjustments for the underlying site. Page 20 Land Analysis Grid Address City State Date Actual Price Price Adjustment Adjusted Price Price per Land SF Usable Acres Usable Land SF No. of Units Price per Unit Transaction Adjustments Property Rights Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0% Financing Conventional 0.0%Conventional 0.0%Conventional 0.0% Conditions of Sale Arm's Length 0.0%Arm's Length 0.0%Arm's Length 0.0% Expend. After Sale Market Trends Characteristics Adjustments Location % Adjustment Qualitative $ Adjustment Topography % Adjustment Qualitative $ Adjustment Shape % Adjustment Qualitative $ Adjustment Utilities % Adjustment Qualitative $ Adjustment Zoning Proposed Density % Adjustment Qualitative $ Adjustment Flood Zone % Adjustment Qualitative $ Adjustment Adjusted Price per Unit Net Adjustments -$4,063 Comp 1 Adjusted Price per Unit -5% Superior $0 Similar $0 0% Available to Site $81,250 $0 Similar Gently sloping 45.0% 34 415 Island Way $0 $0 $3,800,000$4,875,000 0% $0 Similar Rectangular Superior Comp 3 125 Island Way $68.36 $0 $99,259 46 $82,609 Similar $2,680,000 $0 195 1/14/20215/2/2018 $2,680,000$8,125,000 $3,800,000 27 $99,259 $52.72 -$3,250,000 112 S Osceola Ave -- 87 Comp 2 FL Clearwater FL Gently Sloping -$5,459 10.0% $109,185 -$4,337 Superior 0% 0% Similar 0% Rectangular $0 Available to Site Clearwater Zone AE Gently sloping Irregular 5% Inferior Gently sloping $4,063 $0 Available to Site HDR-NCOD Island Est D - Downtown Core 0% $0 -$5,459 0% Available to Site $0 Zone X D - Downtown Old Bay Superior 0% 75 41 5% -$4,063 Inferior $5,459 -5% 5% Superior -5% Inferior $4,337 MHDR-NCOD Island Est 30 -5% 5% Zone AE -5.0% $82,402$81,250 0.0% $103,726 5.0% -5% $86,739 $82,609 Superior Inferior $4,063 Partially in AE & VE -$4,337 -5% Roughly rectangular Clearwater $56,034 9/15/2021 $0 Similar Similar Similar SuperiorSuperior Clearwater FL Fee Simple Adjusted Price per Unit $56,034 900 N Osceola Ave FL $64.62 -5.0% Superior 2.60 2.12 0.90 1.35 113,256 92,478 39,204 58,806 Page 21 Land Sale Value Metrics – Fee Simple Market Value The following table presents the metrics for the unadjusted and adjusted land sales. The table also presents the concluded market value per unit for the subject property. Equal weight is given in arriving at our reconciled value of $82,000 per unit, similar to the overall median price. Number of Comparables:3 % Δ 45% 5% 12% 0% 82,608.70 3,800,000.00 no. of unit $82,609 Subject Size: $82,000 As Is Fee Simple Value, Rounded: $15,990,000 195 Reconciled Value/Unit Value: Indicated Value: $16,000,000 High:$103,726 Unadjusted Adjusted $56,034 $79,301Average: $99,259 $81,250 Median:$82,402 $89,126 Land Value Ranges & As Is Reconciled Value Low: In order to test the reasonableness of our concluded value, we have also considered the ratio of land value per unit to the overall selling prices of the end units. The land-to-revenue ratio gives a general idea of how much developers are paying for land based on the projected year 1 revenue numbers. Of note, Comparable 1 sold in May 2018 and wasn’t completed until 2021. Comparables 2 and 3 had a shorter time period between the land sale and the completion of the project. The ratio for the three comparables ranged from 5.42% to 9.25% or an average of 7.75%. If not for the longer time period between acquisition and completion of Comparable 1 and the large increase in market values over that time period, the ratio would be much higher. Utilizing the 2023 average condominium price for Comparable 1 results in an adjusted land allocation of $69,909 per unit. The average land allocation of all three comparables after adjusting for current sales is $83,926 per unit. A summary of these ratios and allocations is shown below: Land Price - Sale Price Ratio Comp Project Name Address Land Sale Price Per Unit Avg Condo Sale Price Yr 1 Land Price - Sale Price Ratio 2023 Avg Condo Sale Price Adj. 2023 Land Allocation 1 Marina Bay 920 N Osceola Ave $4,875,000 $56,034 $1,033,975 5.42%$1,290,000 $69,909 2 Dolphin Harbour 125 Island Way $2,680,000 $99,259 $1,157,000 8.58%$1,157,000 $99,259 3 Azure 415 Island Way $3,800,000 $82,609 $893,044 9.25%$893,044 $82,609 Average $79,301 $1,028,006 7.75%$1,113,348 $83,926 Indicated Unit Value for Subject Rounded:$82,000 The 2023 condominium pricing for these three projects would support pricing of the subjects 195 units to be in the range of $1,000,000 to $1,200,000. Utilizing an average of $1,100,000 and our previously concluded land value of $82,000 per unit results in a land-to-revenue ratio of 7.45%. This figure is in line with the average of our three comparables. Therefore, our previously concluded market value of $82,000 per unit would appear reasonable based on the comparables and the land-to-revenue ratio. Page 22 Sales Comparison Approach – 400 Unit Rental Apartment Site In this valuation scenario, we have assumed the subject would have an encumbrance to develop a minimum of 400 apartment units without regard to the design of the building or underground parking requirement. It is likely that any private developer when presented with such an encumbrance would consider a wrap style project (utilizing a central above-ground concrete parking structure which is surrounded or “wrapped” by 4-8 stories). For this analysis, we have not recreated the entire sales comparison approach, but have relied upon our previous discussion. We have only included analysis/adjustment on the differing variables. Comparable Sales Data The subject is located in Clearwater. We have researched the Clearwater market for sales of land purchased for the development of apartments and have been unable to locate any. As a result, we have had to expand our search to neighboring cities in Pinellas County. We have found a number of apartment land sales in St. Petersburg for comparison to the subject. The comparable land sales selected represent the best available for this analysis. The most widely used unit of comparison in this market for the subject property type is based on the development potential of the site on a residential per unit basis. As a result, we have analyzed the comparable sales on a price per unit. The comparable land sales included in this appraisal report are summarized in the table below. The following page includes a location map for the comparable land sales and reflects proximity to the subject property. The Addenda contains comparable land sales data sheets. Given the characteristics of the subject site, as well as the information obtained for the comparable data, the comparables were analyzed through the application of a traditional adjustment grid using percentage adjustments. Comp Address Date No. of Units Comp City Price Price Per Land Unit Subject 112 S Osceola Ave 400 Subject Clearwater ---- 1 720 Charles Ct S 6/3/2022 260 1 Saint Petersburg $8,750,000 $33,654 2 1625 1st Ave N 6/21/2022 244 2 Saint Petersburg $6,500,100 $26,640 3 1624-1662 Burlington Ave N 1/13/2023 232 3 St. Petersburg $8,456,300 $36,450 4 3200-3300 Fairfield Ave S & 695 31st St S 2/22/2023 264 4 Saint Petersburg $5,850,000 $22,159 Page 23 Land Sales Map The Adjustment Process Property Level Characteristics Location The subject property is located at the northwest corner of S Osceola Ave and Pierce St in Clearwater. Each of the sales was adjusted, if required, for locational characteristics differing from those of the subject property. All of the sales are located in St. Petersburg. Sales 1, 2, and 3 are located in close proximity to Downtown St. Petersburg, requiring a downward adjustment. Sale 4 is located just west of Downtown St. Petersburg, requiring minimal adjustment for its similar location. Land SF The subject site is 113,256 square feet in size. Differences in land size were also considered. Significantly larger properties oftentimes have a smaller pool of potential buyers, which can result in lower pricing per unit of comparison relative to much smaller properties offering similar utility, based on the economies of scale. In downtown areas it appears that developer’s highest preference is to utilize lots that are approximately 22,000 SF (half acre) to 55,000 SF (1.25 acres) for development. Many of the sales were assemblages or were being marketed with additional sites available to entice larger national developers, as well as smaller, local developers. Therefore, sites between 22,000 SF to 55,000 SF appear to be more desirable than those that are smaller or larger in size. The subject is much larger in size at 113,256 SF; therefore, downward adjustments are required for Sales 1, 2, & 3. These economies of scale size adjustments are supported by additional sales not utilized in the analysis. Page 24 Zoning/Density There is generally an inverse size and rate relationship where lands producing a higher yield (units per acre) typically trade at a higher rate per acre and vice versa. With respect to density, those developments which have significantly higher density per acre generate much lower sale prices per unit due to the impact of economies of scale. Conversely lower density sites tend to generate higher rates per unit. Inherent within this theory, a typical purchaser will consider the total unit inventory and its risks associated with higher or lower unit count (density) and pay accordingly based on current market indices. Sales 1, 2, & 3 all have a much higher density per acre and we have applied an upward adjustment to each sale compared to the subject’s lower density per acre based on the related economies of scale. Comparable 4 has a lower density per acre, resulting in a downward adjustment. Flood Zone The subject and all the comparables are located in a flood zone X with no adjustments required. Summary of Adjustments The following table presents a summary of the adjustments for the underlying site. Page 25 Land Analysis Grid Address City State Date Actual Price Price Adjustment Adjusted Price Land SF No. of Units Price per Unit Transaction Adjustments Property Rights Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0% Financing Conventional 0.0%Conventional 0.0%Conventional 0.0%Conventional 0.0% Conditions of Sale Arm's Length 0.0%Arm's Length 0.0%Arm's Length 0.0%Arm's Length 0.0% Expend. After Sale Market Trends Characteristics Adjustments Location % Adjustment $ Adjustment Land SF % Adjustment Qualitative $ Adjustment Topography % Adjustment Qualitative $ Adjustment Shape % Adjustment Qualitative $ Adjustment Utilities % Adjustment Qualitative $ Adjustment Zoning Proposed Density % Adjustment Qualitative $ Adjustment Flood Zone % Adjustment Qualitative $ Adjustment Adjusted Price per Unit Net Adjustments 113,256 50,000 31,749 31,750 301,344 Comp 1 Comp 2 Comp 3 Comp 4 Clearwater Saint Petersburg Saint Petersburg St. Petersburg Saint Petersburg 112 S Osceola Ave 720 Charles Ct S 1625 1st Ave N 1624-1662 Burlington Ave N 3200-3300 Fairfield Ave S & 695 31st St S 6/3/2022 6/21/2022 1/13/2023 2/22/2023 FL FL FL FL FL --$8,750,000 $6,500,100 $8,456,300 $5,600,000 $8,750,000 $6,500,100 $8,456,300 $5,850,000 $0 $0 $0 $250,000 $33,654 $26,640 $36,450 $22,159 400 260 244 232 264 $0 $0 $0 $0 Fee Simple Adjusted Price per Unit $33,654 $26,640 $36,450 $22,159 0.0%0.0%0.0%0.0% Adjusted Price per Unit $33,654 $26,640 $36,450 $22,159 -25%-25%-25%0% Superior Superior Superior Similar 113,256 50,000 31,749 31,750 301,344 -$8,413 -$6,660 -$9,112 $0 -10%-10%-10%0% -$3,365 -$2,664 -$3,645 $0 Superior Superior Superior Similar 0%0%0%0% Gently Sloping Gently Sloping Gently Sloping Gently Sloping Roughly rectangular Rectangular Rectangular Rectangular Rectangular $0 $0 $0 $0 Similar Similar Similar Similar Similar Similar Similar Similar Similar 0%0%0%0% 0%0%0%0% Available to Site Available to Site Available to Site Available to Site All to Site 0.00 0.00 0.00 0.00 D DC-2 DC-2 DC-2 IT $0 $0 $0 $0 Similar Similar Similar Similar 153.8 226.5 334.8 318.3 38.2 $3,365 $3,996 $5,467 -$1,108 Inferior Inferior Inferior Superior 10%15%15%-5% 0%0%0%0% Zone X Zone X Zone X Zone X Zone X $0 $0 $0 $0 Similar Similar Similar Similar -25.0%-20.0%-20.0%-5.0% $25,240 $21,312 $29,160 $21,051 Page 26 Land Sale Value Metrics – Fee Simple Market Value The following table presents the metrics for the unadjusted and adjusted land sales. The table also presents the concluded market value per unit for the subject property. Equal weight is given in arriving at our reconciled value of $22,500, just below the median price. Number of Comparables:4 % Δ -5% -20% -19% -23% 30,146.80 7,478,200.00 no. of unit Low:$22,159 $21,051 High:$36,450 $29,160 Land Value Ranges & As Is Reconciled Value Unadjusted Adjusted Reconciled Value/Unit Value:$22,500 Subject Size:400 Indicated Value:$9,000,000 Average:$29,726 $24,191 Median:$30,147 $23,276 Reconciled Final As Is Value:$9,000,000 Page 27 Valuation – 400 Unit, Single Tower Rental Apartment Site (Revised Gotham Proposal) Development Proposal In 2022, Clearwater council and the Gotham Group signed a development agreement that includes purchasing the subject City Hall site for $15.4 million and the Harborview Center site for $9.3 million. The city would offer developer incentives, $1.5 million toward impact fees to be paid for by the Community Redevelopment Agency, the creation of a special downtown tax district, up to $2 million to split the cost of a pedestrian bridge and $22 million for two underground parking garages to be paid from the city’s parking fund. Gotham has since stated that the market has changed so dramatically they can no longer proceed with their plans and are proposing a scaled-down development and seeking to reduce the price of the subject City Hall site. The initial proposal included two 27-story towers with at least 500 apartments, with the current proposal being a single tower with 400 units. Two levels of subsurface parking will also be eliminated in the new proposal. A summary of their “Pathway to a Groundbreaking” for the revised proposal is shown below: The City hired HR&A Advisors to evaluate the modifications to the development agreement that the Buyer has proposed. Based on HR&A's preliminary guidance, the City is now preparing to make a counter-offer. We have been asked to evaluate the market value of the land under this new proposal. We have nearly fully relied upon the figures provided in the Gotham presentation and the HR&A analysis provided, with a few exceptions. The aim of this approach is to develop an indication of what the market would consider an acceptable yield to cost (YTC = Net Operating Income/Total Development Cost), capitalization rate and resultantly what the subject property would sell for under the deed restrictions of the development agreement. Valuation Analysis To estimate the value of the subject with a deed restriction only allowing for the previously described development, we have relied upon the financial information provided by both the developer (Gotham) and the City consultant (HR&A). Utilizing this information, we have employed a land residual technique which is a form of the yield capitalization methodology. We have considered both the capitalization rate and yield to cost in our approach. HR&A has completed a review of Gotham’s financial model and found that most of the real estate market assumptions employed are in alignment with market trends, industry standards, and prior transactions. HR&A identified a financial gap of approximately $76.5 to $80.0 million under the Revised Proposal, in comparison with the approximate $80 million financial gap that Gotham identified. Page 28 There is one major item of disagreement that we have considered in our valuation. Both Gotham and HR&A have utilized a rate of $5,750 per unit per year for property taxes. The HR&A report states that an income approach was utilized to estimate this figure. The following table presents our projected real estate taxes, including non-ad valorem assessments and any cap adjustments that would be applied to the subject property. Projected Real Estate Taxes Total Construction Costs (Excluding Land Value)$205,474,891 Assessment Ratio 85% Assessed Value $174,653,657 Current Millage Rate 20.36210 Projected Ad Valorem Taxes $3,556,315 Current Non-Ad Valorem Taxes $0 Real Estate Taxes $3,556,315 Payment Discount 4.0% Total Taxes After December Payment Discount $3,414,063 Total Taxes Per Proposed Unit $8,535 We have utilized an assessment ratio of 85% of the total construction costs to determine the projected assessed value upon completion. Of note, due to the complex number of development variables for the subject proposal and resultant changing land values, we have excluded any land value from our construction cost estimate. If a land value were to be included, it is likely that the total taxes would increase. We have also noted that the total operating expenses that HR&A estimates does not match the amount stated in the Gotham proposal. As shown below, Gotham has estimated total operating expenses of $4,998,161 or $12,495 per unit. Page 29 The Gotham proposal does not break the expenses down further into individual items. Utilizing the more detailed information from the HR&A report, the Gotham figures appear to be comprised of taxes of $5,750 per unit, insurance of $1,800 per unit and operating expenses of $4,945 per unit. The HR&A figures at first glance appear to be similar, however when taking into account the $8,039 per unit operating expense line item (exclusive of taxes and inclusive of insurance, page 12 of HR&A report), the total expenses are $1,294 per unit higher in the HR&A report. For our purposes, we have utilized the lower operating expense estimates utilized in the Gotham proposal (with the exception of taxes). A summary of our proforma, Gotham and HR&A expenses are shown below: Expense Summary Entreken Proforma HR&A Gotham Taxes $8,535 $5,750 $5,750 Insurance $1,800 $1,800 $1,800 Operating Expenses $4,945 $6,239 $4,945 Total Expenses Per Unit $15,280 $13,789 $12,495 Total Expenses $6,112,161 $5,515,600 $4,998,161 To test the reasonability of the operating expenses, we have surveyed four other apartment properties in the surrounding area. The operating expenses (excluding insurance and taxes) ranged from $5,029 to $5,652 per unit, or an average of $5,293 per unit. Our estimate of $4,945 appears reasonable. The insurance amount of $1,800 per unit was also considered reasonable, as we have relied upon a recently constructed, similar sized apartment building in Tampa where the insurance cost was reported at $1,700 per unit. In order to determine if the subject return on cost estimations are sufficient to meet market demands, we have considered several resources. It should be noted the majority of these resources include returns for similar multifamily projects and consider Yield to Cost, Internal Rate of Return and Capitalization Rates. However, the majority of this data represent stabilized projects as opposed to the subject which will be newly constructed and unstabilized. For the subject property, we are considering a project which is land only to be developed into a multifamily project which would typically be a greater risk to an investor than a stabilized project in the market. The following resources were considered in determining market acceptable returns: According to the PwC Real Estate Investor Survey, Third Quarter 2023, expected discount rates or internal rates of return for stabilized multifamily properties is shown on the following page: Page 30 Page 31 As illustrated, capitalization rates for apartments in Southeast Region 4.75% to 5.50%, with an average of 5.25%. Discount rates (IRR) for stabilized apartment projects range from 6.00% to 9.00%. However, it should be noted this range represents stabilized projects that have been developed and units that have been absorbed/leased up. Further, the capitalization rates and yield on cost are based on net operating income for a single year and do not consider all the other years in the holding period like an IRR does. Creating a multiyear proforma would allow for analysis over the entire holding period. This however, is beyond the scope of this report. In addition, the PWC Real Estate Investor Survey illustrates various yields for mortgages, treasuries, and a composite (PYI) of all of the stabilized IRR properties. Once again, we recognize that these represent properties which have been constructed and are stabilized as opposed to the subject property which is being developed and inherently will have more risk from development to stabilization. Page 32 As stated in the HR&A analysis, Gotham utilized a 5.25% cap rate in their revised proposal. This is 62 basis points below their yield on cost of 5.87% (though they state a required 6% YTC threshold). The subject projected return on cost would fall below those expectations for cap rates in markets throughout the United States with the focus being on those in the Tampa market ranging from 4.75% to 5.50% return for stabilized projects. These are derived from the CBRE, United States Cap Rate Survey, First Half 2023, U.S. Multifamily Suburban. Yield to Cost, cap rates and the risk-free rate are typically related. The yield on cost is also used to calculate the development spread, which is the difference between the yield on cost and the market-based cap rate for similar but already existing buildings in the same market. The development spread tells you how much additional return you are earning in exchange for taking on all the risk of construction and development. Developers would typically use a 50 to 150 basis point premium over prevailing market cap rates to determine an appropriate YTC. We have also had discussions with various developers and brokers active in the Tampa-St. Petersburg-Clearwater metro area regarding required investment returns in the multi-family market. This includes Patrick Dufour and Mathew Everett at Newmark, Jason Puckett at Collier Group and Michael Mincberg at Sight Development. The consensus is that cap rates for new multi-family projects similar to the subject would be in the range of 5.00% to 5.50%, with a 100 to 150 basis point premium to account for the development spread to arrive at a YTC in the range of 6.00% to 6.50%. Page 33 Land Residual – Capitalization Rate We have relied upon the data provided by both HR&A and Gotham (with the exception of the real estate taxes), and we have first considered the value of the subject under an Income Approach to Value, to determine the residual value of the land. We have utilized the total development costs provided in the Gotham proforma (excluding land value) and a 5.00% capitalization rate, as summarized below. This results in a residual land value of -$14,400,000. Proforma Income Effective Gross Income $15,666,942 Less: Expenses Tax Expense $8,535 /unit $3,414,000 Insurance $1,800 /unit $720,000 Other Operating Expenses $4,945 /unit $1,978,161 Total Operating Expenses $15,280 $6,112,161 Net Operating Income $9,554,781 Sensitivity Analysis Cap Rate Value Per Unit 4.50%$212,328,467 $530,821 4.75%$201,153,284 $502,883 5.00%$191,095,620 $477,739 5.25%$181,995,829 $454,990 5.50%$173,723,291 $434,308 Less: Total Development Costs (excl. land) Residual Land Value $191,000,000 $205,400,000 -$14,400,000 Value Interest Appraised Value Conclusion (Rounded) Stabilized 400 unit Single Tower Proposal Page 34 Land Residual – Yield to Cost Rate We have also considered the impact a change to Yield to Cost would have on the market value of the land. Of note, the YTC included in the Gotham report is equal to the NOI divided by the Total Development Cost less the net of subsidy and hard cost escalation. We have carried the same amount of net subsidy and hard cost escalation ($31,250,000) in our calculation as utilized by Gotham. We have estimated a desired YTC of 6.00% for a land development multifamily project based on the previous discussion as well as expectations from previous development clients. There is considerable risk in the market given rising construction costs, rising operating costs such as insurance and maintenance, an increase in multifamily supply, and relatively strict lending standards which are currently in effect. Of note, utilizing the figures from the revised Gotham development proposal and our estimate for taxes, results in an untrended YTC of 5.25% still including land costs at $7,600,000. The chart below recreates the Gotham proposal and our estimate for taxes, as well as outlines our estimated market value as encumbered at a 6.00% YTC, shown in the sensitivity analysis. At a 6.00% YTC, this results in a residual land value of -$15,000,000. Revised Gotham Development Proposal October 17, 2023 - Entreken Proforma Building Program Gross SF 618,314 Net Rentable SF (Res)354,703 Net Rentable SF (Retail)15,900 Apartments (#)400 Parking Spaces (#)440 Effective Gross Income $15,666,942 Total Operating Expenses $6,112,161 Net Operating Income $9,554,781 Residential Rent PSF $3.60 Yield to Cost - Untrended 5.25% Hard Costs $175,040,000 Land Costs $7,600,000 Financing Costs $7,700,376 Soft Costs $22,734,515 Total Development Costs $213,074,891 Sensitivity Analysis YTC Land Value Per Unit 6.50%-$27,228,260 -$68,071 6.25%-$21,348,395 -$53,371 6.00%-$14,978,541 -$37,446 5.75%-$8,054,787 -$20,137 5.50%-$501,600 -$1,254 5.25%$7,600,000 $19,000 Value Interest Appraised Value Conclusion (Rounded) Deed Restricted - Revised Gotham 400 unit Single Tower Proposal -$15,000,000 Page 35 Value Summary - 400 Unit, Single Tower Rental Apartment Site (Revised Gotham Proposal) In order to determine the current market value of the land, we have also been asked to consider the total subsidies that will be provided for the subject development. According to the contact at the City of Clearwater, the subsidies in place total $18,136,781. Therefore, this amount has been used to adjust the residual value indication. A summary of the value of the subject after including these city funds is shown below: Residual Land Value - YTC Method Residual Land Value Conclusion Add: Total Subsidies Land Value (including Subsidies) Land Value (including Subsidies), Rounded Value Conclusion Interest Appraised Value Conclusion (Rounded) Residual Land Value - Income Method -$14,400,000 $3,450,000 -$15,000,000 -$14,700,000 $18,136,781 $3,436,781 Page 36 Final Reconciliation The process of reconciliation involves the analysis of each approach to value. The quality of data applied, the significance of each approach as it relates to market behavior and defensibility of each approach are considered and weighed. Finally, each is considered separately and comparatively with each other. The value indications and conclusions developed for the subject property as of October 17, 2023, subject to the Assumptions and Limiting Conditions, are summarized in the following table. Premise Interest Appraised Effective Date Value Conclusion Estimated Marketing Current Market Value Fee Simple 10/17/2023 $16,000,000 5-7 months Current Market Value Deed Restricted - 400+ unit Apartment Project 10/17/2023 $9,000,000 5-7 months Current Market Value Deed Restricted - Revised Gotham 400 unit Single Tower Proposal - Including Subsidies 10/17/2023 $3,450,000 5-7 months Value Conclusions According to the Appraisal Standards Board (ASB) of the Appraisal Foundation, “reasonable marketing time” is an estimate of the amount of time it might take to sell a property interest at the estimated Market Value during the period immediately after the effective date of the report. It is not intended to be a prediction of a specific date of sale and, therefore, may be expressed as a range. Exposure time is defined as the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at Market Value on the effective date of report. Based upon the sales presented herein, an exposure period of 5-7 months is considered reasonable. Marketing time is also concluded at 5-7 months. Page 37 Certification Statement We certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and is our personal, impartial, and unbiased professional analyses, opinions and conclusions. 3. We have no present or prospective future interest in the property that is the subject of this report, and have no personal interest with respect to the parties involved. 4. We have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment. 5. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). 8. Nathan Stienstra (Senior Real Estate Analyst) provided significant real property assistance to the appraiser signing the certification. Assistance included gathering, analyzing and reporting zoning, tax information, and assisting with portions of the valuation analysis. 9. We certify sufficient competence to appraise this property through education and experience, in addition to the internal resources of the firm. 10. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 12. The appraiser has not performed any services regarding the subject within the three-year period immediately preceding acceptance of this assignment. 13. Wesley R. Sanders, MAI, AI-GRS, CCIM has made an inspection of the subject property. As of the date of this report, Wesley Sanders, MAI, AI-GRS, CCIM has completed the requirements of the continuing education program for Designated Members of the Appraisal Institute. As of the date of this report, Wesley Sanders, MAI, AI-GRS, CCIM has completed the requirements of the Department of Business and Professional Regulation under the provisions of Chapter 475 FS of the Florida Real Estate Appraisal Board. Wesley R. Sanders, MAI, AI-GRS, CCIM Senior Managing Director State-Certified General Real Estate Appraiser RZ2911 Page 38 Basic Assumptions and Limiting Conditions 1. By this notice, all persons, companies, or corporations using or relying on this report in any manner bind themselves to accept these contingent and limiting conditions, and all other contingent and limiting conditions contained elsewhere in this report. Do not use any portion of this report unless you fully accept all contingent and limiting conditions contained throughout this document. 2. Throughout this report, the singular term "Appraiser" also refers to the plural term "Appraisers”. The terms "Appraiser" and “Appraisers” refer collectively to "Entreken Associates, Inc.", its officers, employees, contractors, and associate appraisers. The masculine terms "he" or "his" also refer to the feminine term "she" or "her”. 3. These conditions are an integral part of this appraisal report, and are a preface to any certification, definition, description, fact, or analysis. Moreover, these conditions are intended to establish as a matter of record that the purpose of this report is to provide one or more value opinions for the subject property. All value opinions are prepared solely for the explicitly identified client and other explicitly identified intended users. 4. Value opinions involve only real estate, and inconsequential personal property. Unless explicitly stated otherwise, value conclusions do not include personal property, un-affixed equipment, trade fixtures, business-good will, chattel, or franchise items of material worth. 5. As part of this appraisal, information was gathered and analyzed to form value opinion(s) that pertain solely to one or more explicitly identified effective value dates. The effective value date is the only point in time that the value applies. Information about the subject property, neighborhood, comparables, or other topics discussed in this report was obtained from sensible sources. In accordance with the extent of research disclosed in the Scope of Work section, all information cited herein was examined for accuracy, is believed to be reliable, and is assumed reasonably accurate. However, no guaranties or warranties are made for this information. No liability or responsibility is assumed for any inaccuracy which is outside the control of the Appraiser, beyond the scope of work, or outside reasonable due diligence of the Appraiser. 6. Real estate values are affected by many changing factors. Therefore, any value opinion expressed herein is considered credible only on the effective value date. Every day that passes thereafter, the degree of credibility wanes as the subject changes physically, the economy changes, or market conditions change. The Appraiser reserves the right to amend these analyses and/or value opinion(s) contained within this appraisal report if erroneous, or more factual-information is subsequently discovered. No guarantee is made for the accuracy of estimates or opinions furnished by others, and replied upon in this report. 7. This appraisal is not an engineering, construction, legal, or architectural study. It is not an examination or survey of any kind. Expertise in these areas is not implied. The Appraiser is in no way responsible for any costs incurred to discover, or correct any deficiency in the property. In the case of limited partnerships, syndication offerings, or stock offerings in the real estate, the client agrees that in case of lawsuit (brought by the lender, partner, or part owner in any form of ownership, tenant, or any other party), the client will hold Entreken Associates, Inc., its officers, contractors, employees and associate appraisers completely harmless. Acceptance of, and/or use of this report by the client, or any third party is prima facie evidence that the user understands, and agrees to all these conditions. 8. Unless specifically stated otherwise herein, the Appraiser is unaware of any engineering study made to determine the bearing capacity of the subject land, or nearby lands. Improvements in the vicinity, if any, appear to be structurally sound. It is assumed soil and subsoil conditions are stable and free from features that cause supernormal costs to arise. It is also assumed existing soil conditions of the subject land have proper load bearing qualities to support the existing improvements, or proposed improvements appropriate for the site. No investigations for potential seismic hazards were made. This appraisal assumes there are no conditions of the site, subsoil, or structures, whether latent, patent, or concealed that would render the subject property less valuable. Unless specifically stated otherwise in this document, no earthquake compliance report, engineering report, flood zone analysis, hazardous substance determination, or analysis of these unfavorable attributes was made, or ordered in conjunction with this appraisal report. The client is strongly urged to retain experts in these fields, if so desired. 9. For appraisals of multifamily property, only a portion of all dwellings was observed. A typical ratio of observed dwellings roughly approximates 10% of the total number of units, and this ratio declines as the number of dwellings grows. It is assumed the functionality, physical condition, and interior finish of unseen units are similar to the functionality, physical condition, and interior finish of observed units. If unobserved dwellings significantly differ from those that were viewed in functionality, physical condition, or finish, the Appraiser reserves the right to amend theses analysis and/or value opinion(s). 10. If this appraisal values the subject as though construction, repairs, alterations, remodeling, renovation, or rehabilitation will be completed in the future, it is assumed such work will be completed in a timely fashion, using non-defective materials, and proper workmanship. All previously completed work is assumed to substantially conform to plans, specifications, descriptions, or attachments made or referred to herein. It is also assumed all planned, in-progress, or recently completed construction complies with the zoning Page 39 ordinance, and all applicable building codes. A prospective value opinion has an effective value date that is beyond or in the future relative to the report preparation date. If this appraisal includes a prospective valuation, it is understood and agreed the Appraiser is not responsible for an unfavorable value effect caused by unforeseeable events that occur before completion of the project. 11. This valuation may or may not include an observation of the appraised property by a signatory to this report. The extent of any observation is disclosed in the Scope of Work section of this report. Any observation by a signatory is not, and should not be misconstrued as a professional property inspection. Comments or descriptions about physical condition of the improvements, if any, are based solely on a superficial visual observation. Electric, heating, cooling, plumbing, water supply, sewer or septic, mechanical equipment, and other systems were not tested. No determination was made regarding the operability, capacity, or remaining physical life of any component in, on, or under the real estate appraised. All building components are assumed adequate and in good working order unless stated otherwise. Private water wells and private septic systems are assumed sufficient to comply with federal, state, or local health safety standards. No liability is assumed for the soundness of structural members since structural elements were not tested or studied to determine their structural integrity. The roof cover for all structures is assumed water tight unless otherwise noted. Comments regarding physical condition are included to familiarize the reader with the property. This document is not an engineering or architectural report. If the client has any concern regarding structural, mechanical or protective components of the improvements, or the adequacy or quality of sewer, water or other utilities, the client should hire experts in an appropriate discipline before relying upon this report. No representations are made herein as to these matters unless explicitly stated otherwise in this report. 12. If this appraisal values an interest that is less than the whole fee simple estate, then the following disclosure applies. The value for any fractional interest appraised plus the value of all other complementary fractional interests may or may not equal the value of the entire fee simple estate. 13. An appraised property that is a physical portion of a larger parcel or tract is subject to the following limitations. The value opinion for the property appraised pertains only to that portion defined as the subject. This value opinion should not be construed as applying with equal validity to other complementary portions of the same parcel or tract. The value opinion for the physical portion appraised plus the value of all other complementary physical portions may or may not equal the value of the whole parcel or tract. 14. No liability is assumed for matters of legal nature that affect the value of the subject property. Unless a clear statement to the contrary is made in this report, value opinion(s) formed herein are predicated upon the following assumptions. (A) The real property is appraised as though, and assumed free from all value impairments including yet not limited to title defects, liens, encumbrances, title claims, boundary discrepancies, encroachments, adverse easements, environmental hazards, pest infestation, leases, and atypical physical deficiencies. (B) All real estate taxes and assessments, of any type, are assumed fully paid. (C) The property being appraised is assumed to be owned under responsible and lawful ownership. (D) It is assumed the subject property is operated under competent and informed management. (E) The subject property was appraised as though, and assumed free of indebtedness. (F) The subject real estate is assumed fully compliant with all applicable federal, state, and local environmental regulations and laws. (G) The subject is assumed fully compliant with all applicable zoning ordinances, building codes, use regulations, and restrictions of all types. (H) All licenses, consents, permits, or other documentation required by any relevant legislative or governmental authority, private entity, or organization have been obtained, or can be easily be obtained or renewed for a nominal fee. 15. The allocation of value between the subject's land and improvements, if any, represents our judgment only under the existing use of the property. A re-evaluation should be made if the improvements are removed, substantially altered, or the land is utilized for another purpose. 16. The Appraiser assumes a prospective purchaser of the subject is aware of the following. (A) This appraisal of the subject property does not serve as a warranty on the physical condition of the property. (B) It is the responsibility of the purchaser to carefully examine the property, and to take all necessary precautions before signing a purchase contract. (C) Any estimate for repairs is a non-warranted opinion of the Appraiser. 17. Any exhibits in the report are intended to assist the reader in visualizing the subject property and its surroundings. The drawings are not surveys unless specifically identified as such. No responsibility is assumed for cartographic accuracy. Drawings are not intended to be exact in size, scale, or detail. 18. Conversion of the subject's income into a market value opinion is based upon typical financing terms that were readily available from a disinterested, third party lender on this report’s effective date. Atypical financing terms and conditions do not influence market value, but may affect investment value. 19. All information and comments concerning the location, market area, trends, construction quality, construction costs, value loss, physical condition, rents, or any other data for the subject represent estimates and opinions of the Appraiser. Expenses shown in the Income Approach, if used, are only estimates. They are based on past operating history, if available, and are stabilized as generally typical over a reasonable ownership period. 20. The Appraiser is not required to give testimony or appear in court because of having prepared this report unless arrangements are agreed to in advance. If the Appraiser is subpoenaed pursuant to court order, the client agrees to compensate the Appraiser for their court appearance time, court preparation time, and travel Page 40 time at their regular hourly rate then in effect plus expenses. In the event the real property appraised is, or becomes the subject of litigation, a condemnation, or other legal proceeding, it is assumed the Appraiser will be given reasonable advanced notice, and reasonable additional time for court preparation. 21. Entreken Associates, Inc. and the Appraiser have no expertise in the field of insect, termite, or pest infestation. We are not qualified to detect the presence of these or any other unfavorable infestation. The Appraiser has no knowledge of the existence of any infestation on, under, above, or within the subject real estate. No overt evidence of infestation is apparent to the untrained eye. However, we have not specifically inspected or tested the subject property to determine the presence of any infestation. No effort was made to dismantle or probe the structure. No effort was exerted to observe enclosed, encased, or otherwise concealed evidence of infestation. The presence of any infestation would likely diminish the property's value. All value opinions in this communication assume there is no infestation of any type affecting the subject real estate. No responsibility is assumed by Entreken Associates, Inc. or the Appraiser for any infestation or for any expertise required to discover any infestation. Our client is urged to retain an expert in this field, if desired. 22. Effective January 26, 1992, the Americans with Disabilities Act (ADA) - a national law, affects all nonresidential real estate or the portion of any property, which is non-residential. The Appraiser has not observed the subject property to determine whether the subject conforms to the requirements of the ADA. It is possible a compliance survey, together with a detailed analysis of ADA requirements, could reveal the subject is not fully compliant. If such a determination was made, the subject's value may or may not be adversely affected. Since the Appraiser has no direct evidence, or knowledge pertaining to the subject's compliance or lack of compliance, this appraisal does not consider possible noncompliance or its effect on the subject's value. All opinions are those of the signatory Appraiser based on the information in this report. No responsibility is assumed by the Appraiser for changes in market conditions, or for the inability of the client, or any other party to achieve their desired results based upon the appraised value. Some of the assumptions or projections made herein can vary depending upon evolving events. We realize some assumptions may never occur and unexpected events or circumstances may occur. Therefore, actual results achieved during the projection period may vary from those set forth in this report. Compensation for appraisal services is dependent solely on the delivery of this report, and no other event or occurrence. 23. No part of this report shall be published or disseminated to the public by the use of advertising media, public relations media, news media, sales media, electronic devices, or other media without the prior written consent of Entreken Associates, Inc. This restriction applies particularly as to analyses, opinions, and conclusions; the identity of the Appraiser; and any reference to the Appraisal Institute or its MAI, SRPA, or SRA designations. Furthermore, no part of this report may be reproduced or incorporated into any information retrieval system without written permission from Entreken Associates, Inc., the copyright holder. Page 41 Addenda Page 42 Regional Analysis REGIONAL MAP Introduction The subject property is located in Clearwater, Pinellas County, Florida, which is within the Tampa-St. Petersburg- Clearwater Metropolitan Statistical Area (MSA). The Tampa MSA is generally referred to as the Tampa Bay area, which consists of Hernando, Hillsborough, Pasco, and Pinellas Counties, as defined by the US Census Bureau. It includes the major municipalities of Tampa, St. Petersburg, Clearwater, and Brandon. Some publications also include the Citrus, Manatee, Pasco, Polk, and Sarasota counties. However, for this analysis, we have included the four county area. The Tampa Bay area is approximately 80 miles west of Orlando, 270 miles northwest of Miami, and 200 miles southwest of Jacksonville. Because the subject benefits from the strength of the area, an overview of this area is appropriate, followed by a description of the community in which the subject is located. The Tampa Bay MSA is located in Southwest Florida on the Gulf of Mexico and Tampa Bay and encompasses 2,554.5 square miles. Page 43 MSA at a Glance - TAMPA-ST. PETERSBURG-CLEARWATER FL Page 44 Page 45 Employment Tampa Bay’s unemployment rate has decreased from a high of 13.2% in April 2020, and is at 2.3% as of April 2023, according to the Bureau of Labor and Statistics figures. The losses slowed in mid-2020 as Florida re-opened businesses, but much of the leisure, hospitality and tourism industries had ground to a halt. Among the other hardest hit industries were health care, social assistance, retail trade, professional and business services and construction. Health care job loss may have seemed unexpected, but the sector lost at least 43,000 jobs nationally, according to the report. Since mid-2020, these industries have recovered, and Florida unemployment now well outpaces the national average. Unemployment The following table exhibits current and past unemployment rates as obtained from the Bureau of Labor Statistics. Overall, the metro and the state had a lower unemployment rate than the nation. This, combined with the pro- business philosophy of Florida, has increased investor demand for real estate in Florida over the past couple years. Area YE 2017 YE 2018 YE 2019 YE 2020 YE 2021 YE 2022 Jun-23 Tampa-St. Pete-Clwr, FL MSA 3.7%3.3%2.8%5.4%3.0%2.2%3.0% Florida 3.8%3.4%2.7%6.2%3.1%2.3%3.0% United States 4.1%3.9%3.6%6.7%3.9%3.5%3.6% Unemployment Rates 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Unemployment Rates Tampa-St. Pete-Clwr, FL MSA Florida United States Page 46 The following table provides the employment by industry for the Tampa Bay MSA. Mining/Logging 300 0.0% Construction 95,000 6.2% Manufacturing 75,900 5.0% Trade, Transportation, Utilities 281,200 18.4% Information 28,600 1.9% Financial Activities 136,500 9.0% Professional and Business Services 301,900 19.8% Education and Health Services 239,700 15.7% Leisure and Hospitality 168,700 11.1% Other Services 50,500 3.3% Government 146,300 9.6% Employment by Industry - Tampa Bay MSA Industry Jun-23 Percent of Employment Major Employers The following table indicates the major employers within the Tampa Bay MSA. Company No. of Employees State of Florida 34,100 MacDill Air Force Base 30,844 BayCare Health System 27,739 Publix Super Markets 27,000 Hillsborough County School District 24,866 HCA West Florida Division 16,865 University of South Florida 15,678 Polk County School District 13,500 Pinellas County School District 13,384 Pasco County School District 12,725 Major Employers - Tampa Bay MSA Tourism Visitors to the Tampa Bay area contributed a direct impact of $4.5 billion in 2021, which included spending by international visitors, and domestic day and overnight visitors. This direct impact of $4.5 billion generated $1.2 billion in indirect impacts and another $1.5 billion in induced impacts, resulting in a total economic impact of $7.1 billion on the regional economy. Visit Tampa Bay said overall, total taxable hotel revenue for Tampa Bay has reached $895,488,762 for fiscal year 2022. Those numbers surpass pre-pandemic levels and represent a winning streak that will only continue. In Hillsborough County, the total Tourist Development Tax collections within the first 11 months of the 2022 fiscal year hit $53,716,578. That's a 59% increase over the same period in 2021. Pinellas County is known for the beaches of the barrier islands including from Clearwater Beach in the north to St. Pete Beach in the south. The St. Petersburg/Clearwater area is the leading destination on the Gulf Coast. Busch Gardens Tampa Bay launches the Serengeti Flyer, the tallest and fastest ride of its kind, while Adventure Island Water Park offers its new rides called Rapids Racer and Wahoo Remix. ZooTampa at Lowry Pak has also expanded its site to treat some of the injured Florida manatees. Page 47 The Gulf Coast draws visitors for the outdoor and on-the-water recreational opportunities such as golf with a myriad of public, municipal and private courses. The area is known as one of the best fishing grounds with both inshore and offshore opportunities and charter companies operating out of the many marinas in the area. Clearwater Beach is known as one of the best beaches in the world (Trip Advisor’s #1 in 2018) with many attractions including the Clearwater Marine Aquarium that’s home to two of the world’s most famous dolphins. There are many museums and other cultural attractions that draw tourists including the Dali Museum, the Chihuly Collection, St. Petersburg Museum of History and Imagine Museum to name a few. The St. Petersburg Arts Alliance partnered with St. Petersburg to ensure a strong arts-related economic presence and foster growth in the seven arts districts. Largo offers several attractions including the Florida Botanical Gardens, and the Pinellas County Heritage Village, an open-air historical village and museum dating to the mid-19th Century. The Pinellas Trail is a linear trail extending from St. Petersburg to Tarpon Springs through Largo. The 45-mile trail is developed mostly along abandoned rail lines and is open for cyclists, joggers, and skaters. Linkages Interstate 275 traverses north and south through the center of the county. This limited-access highway provides access to Interstate 75 to the north and Saint Petersburg to the south. Interstate 75 is a limited-access highway which traverses north and south through the center of the county. This highway provides access to Manatee County to the south and Hernando and Pasco counties to the north. Interstate 4 is a limited access highway that terminates in Hillsborough County and travels east to Orlando. There are several limited-access toll roads that traverse through the county and numerous county roads. There are three major bridges that provide access to Pinellas County from Hillsborough County. These include the West Courtney Campbell Causeway (State Route 60), the Howard Frankland Bridge (Interstate 275/State Route 93) and U.S. Highway 92/State Route 600. Overall, the linkages throughout the county are ample with good access to other areas of the Tampa Bay area. Transportation The Tampa Bay MSA is home to two major airports including St. Pete-Clearwater International Airport (PIE) in Pinellas County, and Tampa International Airport (TPA) in Hillsborough County. Tampa International Airport is an international airport approximately 6.0 miles west of Downtown Tampa. It is served by over twenty major airlines, including Southwest Airlines which operates up to 121 flights per day. In 2022, the airport reportedly handled 21,527,863 passengers, making it the 23rd busiest airport in North America. From March 7, 2023 to April 10, 2023, the airports spring break period, TPA had almost 2.5 million passengers which beats the previous spring break record from 2019 by almost 50,000 passengers. The airport recorded its busiest day on record on March 19, 2023, with more than 90,000 passengers. TPA is also planning a $790 million Airside D project and will be preparing to select a design-build firm in May of 2023. St. Pete-Clearwater International Airport has seen an 8% increase in passengers year-to-date over 2022. The airport connects Pinellas County with smaller cities across North America and is seeing growth in its Canadian business and is planning a $106 million terminal expansion. Mass transit is provided by the public transports available for each county as stated below: Pinellas County Pinellas Suncoast Transit Authority (PSTA) Hillsborough County Hillsborough Area Regional Transit Authority (HART) Pasco County Pasco County Public Transportation (PCPT) Hernando County Hernando County Transit Services (TheBus) Page 48 Population The 2023 population data is the most current available for the Tampa MSA with growth as illustrated below. As employment has increased over the past few years, the population growth has also increased. The four county Tampa MSA had an estimated 2023 population of 3,288,270 which is expected to increase by 0.50% per year until 2028. 2023 Population 2028 Population Estimation Population: Annual Growth Rate Tampa-St. Petersburg-Clearwater 3,288,270 3,371,259 0.50% Florida 22,381,338 23,091,949 0.63% USA 337,470,185 342,640,129 0.30% Median Household Income Total median household income for the region is presented in the following table. Overall, the subject’s MSA is similar to the state. However, is slightly below the nation. 2023 Median Household Income 2023 Average Household Income 2023 Per Capita Income Tampa-St. Petersburg-Clearwater $65,621 $97,348 $40,263 Florida $65,081 $97,191 $38,778 USA $72,603 $107,008 $41,310 Residential Real Estate House Price Appreciation: Median price for houses is $415,000 in July 2023 compared to $415,000 in June 2022, which was a 0.0% change. Condo/townhome median pricing is down -0.7% during the same timeframe, down to $296,000 from $298,148. Active listings are down -21.4% from last year in the Single-Family home market and up 33.1% in the Townhouse/Condo market. This is due to the decreased sales volume and decrease in demand for housing. The tables below summarize the most important housing market indicators for the Tampa, FL metro in July 2023. Single-Family Townhouses and Condos Source: Greater Tampa Realtors Page 49 The Tampa, FL metro had a weakening seller’s market in July 2023. For the Single-Family segment, months’ supply stood at 1.9 months. For the Townhouse/Condo segment, it stood at 2.5 months. On a market segment basis, entry- level markets tend to have a somewhat lower demarcation point between a buyer’s and seller’s market (estimated around 5 months) and move-up markets tend to have a somewhat higher demarcation point between a buyer’s and seller’s market (estimated around 7 months). This is because even in a balanced market, the less expensive entry- level homes usually sell more quickly than move-up homes. Lower levels of months’ inventory tend to lead to upward price pressures. This is especially common in the entry-level market, where supply has been most constrained since 2012 and which has led to reduced affordability. Mortgage Risk: AEI measures the level of mortgage risk present in a metro through the mortgage default rate. A higher mortgage default rate implies greater access to credit, but also indicates greater likelihood of default. While at first glance, greater access may seem like a positive, especially for first-time buyers trying to enter the market, when market conditions are tight, it actually works to their detriment. During a seller’s market, greater access to credit is capitalized into higher house prices, which then generally results in home prices rising faster than, for example, incomes or rents. In the Tampa, FL metro, the most recent mortgage default rate data is for the 1st quarter of 2023, which stood at 11.4%, compared to 12.0% for the nation. The mortgage default rate in the Tampa, FL metro decreased from a year ago, when the mortgage default rate stood at 11.9%. The mortgage default rate varied substantially by market segment for the Tampa, FL metro. The mortgage default rate for entry-level buyers was 14.0%, but only 8.7% for move-up buyers. Expected mortgage rate increases is not likely to be positive for the residential housing market. We expect pricing to stabilize and likely only moderately increase in 2023. This depends heavily on the net positive in-migration of people moving to the area from other parts of the country. New Construction Activity: In the first quarter of 2023, new construction share of sales added 18.3% overall to the Tampa, FL metro housing stock. This is higher than the nation, for which the new construction contribution during the same time period was 13.0%. Additions to the existing housing stock during this period varied substantially by market segment. While 12.7% was added to the entry-level tier stock, 26.5% was added to the move-up tier stock. MSA Conclusion Housing demand and prices continue to grow, while 2022 housing permits topped the previous year by 4%, housing prices are also at the highest levels since 2008. As the economy continued to improve throughout late 2022, not only did housing prices continue to rise, but residential rental rates also increased. These trends have continued into 2023 throughout the residential and commercial real estate sectors. It is unclear what effect rising interest rates will have on the economy and real estate markets. Healthcare is another key driver for the metro area—jobs in the medical profession are over 15% of the area’s workforce and pay slightly more than the local average. Hiring in these elective fields is evidence that residents are optimistic about the region’s recovery. This increase is also attributable to the extra demand created by the large, fast-growing senior population. Among major metro areas, the Tampa MSA maintains the largest percentage of residents older than 65, even with a population growth trend of under 20-year olds outpacing the country as a whole. Tampa-St. Petersburg-Clearwater is expected to outpace the nation over the next two years, as an influx of residents, mostly retirees and people moving from the northeast, will drive demand for housing and other locally produced services. These transplants will contribute to its tax base, but not add as much to its tightening labor supply as a high percentage appear to be retirees and remote employees. This will also help to continue to drive the construction market. Overall, these factors have led to the lowest unemployment levels in Tampa Bay since before the COVID pandemic, a growing labor force with more people entering the job market, while driving up wages. While the hospitality industry in the beaches area has been robust over the past few years, continually breaking records, the industry is also expected to continue to slowly recover outside the beaches areas, as the US and world economies improve. The beaches continue to be some of the utmost traveled to destinations with outdoor venues especially in high demand in 2020 and 2021. These factors will ensure that Tampa Bay’s income expands faster than the nation’s over the forecast horizon. Robust healthcare and the outdoor lifestyle demand will be a catalyst for the foreseeable future and the outlook for the long-term economy is positive. Page 50 Neighborhood Analysis Introduction Due to the summary format of the report, detailed information relative to the city trends have been summarized as follows. Overview Pinellas County was founded in 1912. The county seat, Clearwater, was incorporated in 1891. It totals 608 square miles, made up of 274 square miles of land and 334 square miles of water. The subject’s neighborhood is located in the City of Clearwater, within Pinellas County. The address is 112 S Osceola Ave and the borders include Sunset Point Rd to the north, Keene Rd to the east, Belleair Rd to the south, and the Intracoastal Waterway to the west. Access/Visibility Within the immediate area of the subject property, transportation access helps define the character of its development. This portion of Pinellas County has average to good access with the primary north and south roadways being Alt US-19 and Keene Rd, and the primary east and west roadways being Gulf to Bay Blvd, Drew St and Sunset Point Rd. Gulf to Bay Blvd gives the subject neighborhood quick access to Hillsborough County. There are a number of secondary and tertiary streets traversing the neighborhood to provide good access. Land Use Patterns Development within the neighborhood includes low-density commercial/retail development along major thoroughfares such as Court St and S Missouri Ave., with residential developments located on secondary thoroughfares scattered throughout the neighborhood. Residential makes up most of the development in the neighborhood on the south side of Court St, and the north side of Court St to Drew St has mixed development as it’s part of Downtown Clearwater. There is very little industrial development. The developable area in the PMA is approximately 95% developed, with most vacant land being parcels that were previously developed and were demolished for re-development. The approximate breakdown of land uses is as follows: Single-family 45%, Multifamily 15%, Retail 25%, Office 10%, Industrial 3%, and Vacant Land 2%. The neighborhood is in the stability phase of its life cycle. Page 51 New retail and mixed-use developments are also underway within 5 miles of the subject. The Clearwater Downtown Redevelopment Plan Area serves as a long-term vision for Downtown Clearwater and surrounding residential and commercial areas. It includes a 540-acre community redevelopment area namely Imagine Clearwater; a $55 million master plan along downtown’s waterfront that will offer high-rise office, mixed-use residential and retail space, and the North Marina Master Plan area on the other hand covers 64 acres just north of Downtown Clearwater which focuses on attracting commercial, retail, restaurants and more residential to the neighborhood. The City of Clearwater is in the design phase for a new city hall to be built at Myrtle Ave and Pierce St, south of the Municipal Services Building downtown. Plans include a 41,679 square foot city hall along with a public plaza green space that connects to the Pinellas Trail. The existing parking lot of the Municipal Services Building will support the new city hall, and onsite parking will be added for the development. The project is estimated to cost $44.8 million, $31.5 million for the new city hall and $13.3 million for renovation of the Municipal Services Building. Serena by the Sea is a recently completed “beach-chic” condo project that overlooks the Gulf of Mexico, and is located at 1020 Sunset Point Rd. The 80-unit, $70 million luxury condominium tower has two- and three-bedroom plus den floor plans ranging from 1,400 to 2,574 square feet and sky penthouses as large as 4,821 square feet. Prices start at $839,000 and go up to $2.9 million, and all of the units have been sold. Public Facilities/ Services Public utilities (sewer, water, trash) are available to most portions of the neighborhood and provided by Pinellas County Utilities, while TECO Energy provides electricity. Fire and police protection are adequate to meet the needs of the neighborhood’s residents and are provided by the Clearwater Police Department and Clearwater Fire Rescue. Public transportation is available in the neighborhood and adequate medical services are also provided. Neighborhood Demographics The following tables present the subject neighborhood demographics for a one-, three- and five-mile radius from the subject property. Page 52 2023 Median Age 52.1 47.5 51.0 2023-2028 Annual Rate 0.50%-0.11%0.00% 2020-2023 Annual Rate -0.76%0.10%0.39% 2010-2020 Annual Rate 1.54%0.42%0.50% 2028 Population 7,151 78,523 203,467 2023 Population 6,974 78,962 203,442 2020 Population 7,149 78,703 200,857 2010 Population 6,133 75,441 191,174 1 mile 3 miles 5 miles In the identified area, the current year population is 203,442. In 2020, the Census count in the area was 200,857. The rate of change since 2020 was 0.39% annually. The five-year projection for the population in the area is 203,467 representing a change of 0.00% annually from 2023 to 2028. Demographic Data Population characteristics and income levels were obtained from STBOnline for 1, 3, and 5-mile radii near the subject’s location. A summary of the information is presented in the following tables. POPULATION Page 53 2023 Average Household Size 1.90 2.19 2.09 2023-2028 Annual Rate 0.85%0.08%0.20% 2020-2023 Annual Rate 1.31%0.44%0.63% 2010-2020 Annual Rate 1.49%0.45%0.52% 2028 Households 3,545 34,553 95,757 2023 Households 3,398 34,419 94,786 2020 Households 3,257 33,929 92,883 2010 Households 2,810 32,449 88,169 2023 Wealth Index 72 96 82 1 mile 3 miles 5 miles The household count in this area has changed from 92,883 in 2020 to 94,786 in the current year, a change of 0.63% annually. The five-year projection of households is 95,757, a change of 0.20% annually from the current year total. Average household size is currently 2.09, compared to 2.10 in the year 2020. The number of families in the current year is 50,590 in the specified area. HOUSEHOLD Page 54 2023-2028 Annual Rate 3.87%3.29%3.37% 2028 Per Capita Income $49,259 $48,521 $48,043 Per Capita Income 2023 Per Capita Income $40,750 $41,272 $40,704 2023-2028 Annual Rate 3.55%3.12%3.17% 2028 Average Household Income $96,816 $109,169 $101,599 Average Household Income 2023 Average Household Income $81,330 $93,613 $86,929 2023-2028 Annual Rate 3.12%3.82%3.28% 2028 Median Household Income $45,273 $69,157 $67,089 Median Household Income 2023 Median Household Income $38,827 $57,341 $57,082 Mortgage Income 2023 Percent of Income for Mortgage 69.8%36.3%32.6% 1 mile 3 miles 5 miles Current median household income is $57,341 in the area, compared to $72,603 for all U.S. households. Median household income is projected to be $69,157 in five years, compared to $82,410 for all U.S. households. Current average household income is $93,613 in this area, compared to $107,008 for all U.S. households. Average household income is projected to be $109,169 in five years, compared to $122,048 for all U.S. households. Current per capita income is $41,272 in the area, compared to the U.S. per capita income of $41,310. The per capita income is projected to be $48,521 in five years, compared to $47,525 for all U.S. households. INCOME Page 55 2028 Vacant Housing Units 836 7,778 17,580 2028 Renter Occupied Housing Units 1,978 12,662 34,921 2028 Owner Occupied Housing Units 1,568 21,891 60,836 2028 Total Housing Units 4,381 42,331 113,337 2023 Vacant Housing Units 883 7,810 17,880 2023 Renter Occupied Housing Units 1,916 12,862 35,576 2023 Owner Occupied Housing Units 1,482 21,557 59,210 2023 Total Housing Units 4,281 42,229 112,666 2020 Vacant Housing Units 890 7,906 18,044 2020 Total Housing Units 4,147 41,835 110,927 2010 Vacant Housing Units 995 8,918 20,562 2010 Renter Occupied Housing Units 1,931 13,127 33,008 2010 Owner Occupied Housing Units 879 19,317 55,161 2010 Total Housing Units 3,805 41,367 108,731 2023 Housing Affordability Index 35 68 76 1 mile 3 miles 5 miles Currently, 52.6% of the 112,666 housing units in the area are owner occupied; 31.6%, renter occupied; and 15.9% are vacant. Currently, in the U.S., 58.5% of the housing units in the area are owner occupied; 31.7% are renter occupied; and 9.8% are vacant. In 2020, there were 110,927 housing units in the area and 16.3% vacant housing units. The annual rate of change in housing units since 2020 is 0.48%. Median home value in the area is $309,319, compared to a median home value of $308,943 for the U.S. In five years, median value is projected to change by 0.81% annually to $322,060. HOUSING Page 56 Conclusion The subject is located within downtown Clearwater, is just north of the county courthouse complex and is within three miles of the heart Clearwater Beach. There have been significant increases in tourism and growth within the Clearwater Beach area over the past five years. Consequently, this growth has had a huge impact on the City of Clearwater and surrounding area tax base, retail/restaurant sales and overall home values. The area is nearly completely developed. The neighborhood is well located and is within commuting distance of other areas of Pinellas County and surrounding communities along the barrier islands. The accessibility of the locale is enhanced by its proximity to Court St and S Missouri Ave. Given its location characteristics and being mostly built-out, a slow population growth is expected within 3 miles of the subject over the next several years. Demand for properties is expected to be stable to increasing with the new Imagine Clearwater waterfront development. The long-term outlook for the neighborhood is anticipated to be one of continued slow growth, re-development, and demand into the foreseeable future. Page 57 Engagement Letter Page 58 Legal Description Page 59 Subject Photographs View Looking South Along S Osceola Ave (Subject on Right) View Looking West from Northeast Corner of Subject View Looking Northwest from Northeast Corner of Subject View Looking West from East Side of Subject Page 60 Subject Photographs View Looking North Along S Osceola at Pierce St (Subject on Left) View Looking West Along Pierce St at S Osceola Ave (Subject on Right) View Looking East Along Pierce St (Subject on Left) View Looking Northeast Across Subject Page 61 Subject Photographs View Looking Northwest from Subject View Looking East Across Subject View Looking Southeast from Causeway View Looking Northeast from Causeway Page 62 Subject Photographs View Looking East from Causeway View Looking Northeast from Causeway Page 63 Plat Map (Outline is Approximate) Source: Pinellas County Property Appraiser Aerial Map (Outline is Approximate) Source: Pinellas County Property Appraiser Page 64 Flood Map Page 65 Land Sale Comparables - Unencumbered ID 24587 Address 900 N Osceola Ave City Clearwater State FL Zip 33755 County Pinellas Latitude 27.9748594 Longitude -82.8000673 Tax ID 09-29-15-55249-000-0020, 09- 29-15-55249-000-0030, 09-29- 15-55245-000-0001, 09-29-15- 00000-140-0100 Property Major Type Land Property Type Commercial Address 900 N Osceola Ave Date 5/2/2018 City Clearwater Price $4,875,000 State FL Zip 33755 Price Per Usable Land SF $52.72 Book/Page or Reference 20039/1276 Financing Conventional Grantor Clearwater Basin Marina LLC Property Rights Fee Simple Grantee Marina Bay 880 LLC Conditions of Sale Arm's Length Legal Description Long Legal Days on Market -- Usable Acres 2.12 Topography Gently sloping Usable Land SF 92,478 Zoning D - Downtown Old Bay Road Frontage N Osceola Ave, Cedar St & Flood Zone Partially in AE & VE Shape Irregular Encumbrance or Easement None Noted Utilities Available to Site Environmental Issues None Noted Land Comparable 1 This commercial land property located at 900 N Osceola Ave, Clearwater FL, was sold on May 2, 2018, for $8,125,000. The property is located directly on the intracoastal waterway with views of Clearwater Harbor. This is a four-parcel portfolio operating as a marina with the buyer having plans to build a condominium development called Marina Bay 880. The $70 million luxury condo complex project by Clearwater-based Andrus Development Group began in 2019 and includes two eight-story buildings that feature 87 condominiums. According to the buyer, the purchase price of $8,1250,000 was allocated at 60% ($4,875,000) for the value of the condominium land. The marina has 69 boat slips Site Transaction Sale Comments Page 66 ID 24586 Address 125 Island Way City Clearwater State FL Zip 33767 County Pinellas Latitude 27.978531 Longitude -82.815716 Tax ID 08-29-15-21803-000-0001 Property Major Type Land Property Type Commercial Address 125 Island Way Date 1/14/2021 City Clearwater Price $2,680,000 State FL Zip 33767 Price Per Usable Land SF $68.36 Book/Page or Reference 21366 / 0935 Financing Conventional Grantor Arlis Construction USA LLC Property Rights Fee Simple Grantee Dolphin Cay of Island Estates Conditions of Sale Arm's Length Legal Description Long Legal Days on Market 154 Usable Acres 0.90 Topography Gently sloping Usable Land SF 39,204 Zoning HDR-NCOD Island Est Road Frontage Island Way Flood Zone Zone AE Shape Rectangular Encumbrance or Easement None Noted Utilities Available to Site Environmental Issues None Noted Sale Comments Site Transaction Land Comparable 2 This commercial land property located at 125 Island Way, Clearwater Beach FL, was sold on January 14, 2021, for $2,680,000. The property sold for development of 27 condominium units and 10 private dock slips. The development is known as Dolphin Harbour Condominiums. Page 67 ID 23466 Address 415 Island Way City Clearwater State FL Zip 33767 County Pinellas Latitude 27.9817725 Longitude -82.8166663 Tax ID 08-29-15-01995-000-0001 Property Major Type Land Property Type Commercial Address 415 Island Way Date 9/15/2021 City Clearwater Price $3,800,000 State FL Zip 33767 Price Per Usable Land SF $64.62 Book/Page or Reference 21721 / 2459 Financing Conventional Grantor Elan 405, LLC Property Rights Fee Simple Grantee Azure Development Group, L.P.Conditions of Sale Arm's Length Legal Description Long Legal Days on Market -- Usable Acres 1.35 Topography Gently Sloping Usable Land SF 58,806 Zoning MHDR-NCOD Island Est Road Frontage Island Way Flood Zone Zone AE Shape Rectangular Encumbrance or Easement None Noted Utilities Available to Site Environmental Issues None Noted Sale Comments Land Comparable 3 This commercial land property located at 405-415 Island Way, Clearwater FL, was sold on September 15, 2021, for $3,800,000. The property sold with entitlements and development order for 46 condominium units and 16 private dock slips. The development is known as Azure Clearwater. Site Transaction Page 68 Land Sale Comparables - Encumbered ID 22029 Address 720 Charles Ct S City Saint Petersburg State FL Zip 33701 County Pinellas Latitude 27.76748529 Longitude -82.6441499 Tax ID 19-31-17-20889-001-0010 Property Major Type Land Property Type Multi-Family Address 720 Charles Ct S Date 6/3/2022 City Saint Petersburg Price $8,750,000 State FL Price Per Unit $33,654 Zip 33701 Price per Land SF $175.00 Tax ID 19-31-17-20889-001-0010 Financing Conventional Grantor Tuxedo Court, LLC Property Rights Fee Simple Grantee WPPI St Pete TC, LLC Conditions of Sale Arm's Length Legal Description DEMENS HILLSIDE BLK 1, LOT Days on Market 655 Acres 1.15 Topography Gently Sloping Land SF 50,000 Zoning DC-2 Road Frontage Charles Ct S, 8th St S & 4th Ave Flood Zone Zone X Shape Rectangular Encumbrance or Easement None Noted Utilities Available to Site Environmental Issues None Noted Transaction Site Sale Comments Land Comparable 1 This 1.15-acre residential land property located at 720 Charles Ct S, St. Petersburg, FL, was sold on June 3, 2022, for $8,750,000. The seller was represented by Renee Celli of RE/MAX Metro. The property was put on the market on August 17, 2020. The buyer took out a loan of $6,467,500 to finance the acquisition. The buyer obtained approvals for the construction of a 15-story mixed use building with 2,700 square feet of ground-floor retail and restaurant space on the ground floor and 260 apartments on the upper floors. Page 69 ID 22028 Address 1625 1st Ave N City Saint Petersburg State FL Zip 33713 County Pinellas Latitude 27.77225963 Longitude -82.65559543 Tax ID 24-31-16-29718-012-0090 ; 24- 31-16-29718-012-0110 ; 24-31- 16-29718-012-0120 ; 24-31-16- Property Major Type Land Property Type Commercial Address 1625 1st Ave N Date 6/21/2022 City Saint Petersburg Price $6,500,100 State FL Price Per Unit $26,640 Zip 33713 Price per Land SF $204.73 Tax ID 24-31-16-29718-012-0090 ; 24-Financing Conventional Grantor HP Capital Partners, LLC Property Rights Fee Simple Grantee 1625 First Avenue North (St Conditions of Sale Arm's Length Legal Description FULLER'S SUB BLK 12, LOTS 12 & 13Days on Market -- Acres 0.73 Topography Gently Sloping Land SF 31,749 Zoning DC-2 Road Frontage 1st Ave N Flood Zone Zone X Shape Rectangular Encumbrance or Easement None Noted Utilities Available to Site Environmental Issues None Noted Site Sale Comments This combined 0.73-acre parcel located at 1st Ave N, St. Petersburg, FL, was sold in two separate transactions to form an assemblage. The first sale occurred on June 1, 2022 for $2,357,500 and the second sale occurred on June 21, 2022, for $4,142,600. The properties were assembled for redevelopment of the site into a 19 story apartment building with 244 units. Land Comparable 2 Transaction Page 70 ID 23216 Address 1624-1662 Burlington Ave N City St. Petersburg State FL Zip 33713 County Pinellas Latitude 27.7735875 Longitude -82.6556193 Tax ID 24-31-16-29718-007-0040, 24- Property Major Type Land Property Type Multi-Family Address 1624-1662 Burlington Ave N Date 1/13/2023 City St. Petersburg Price $8,456,300 State FL Price Per Unit $36,450 Zip 33713 Price per Land SF $266.34 Tax ID 24-31-16-29718-007-0040, 24-Financing Conventional Grantor AAG Florida Homes LLC; Property Rights Fee Simple Grantee DevMar Sky St Pete, LLC Conditions of Sale Arm's Length Legal Description Long Legal Days on Market -- Acres 0.73 Topography Gently Sloping Land SF 31,750 Zoning DC-2 Road Frontage Burlington Ave N & 17th St N Flood Zone Zone X Shape Rectangular Encumbrance or Easement None Noted Utilities Available to Site Environmental Issues None Noted Transaction Site Sale Comments This commercial land property located at 1624-1662 Burlington Ave N, St. Petersburg FL, was sold on January 13, 2023, for a total price of $8,456,300. This multifamily land consists of 4 parcel lots, totaling about 0.729 acres, which were sold to the buyer from different entities. The property was sold to the buyer as a redevelopment project, which plans to build a 20-story, 232-unit apartment tower called Sky St. Pete. Currently, the property is occupied by a vacant dirt lot and seven residential structures with eight dwelling units. These buildings will be demolished to accommodate the new development. The broker indicated as agreements were made to obtain the properties the last piece became more important to obtain. Land Comparable 3 Page 71 ID 22067 Address 3200-3300 Fairfield Ave S & 695 City Saint Petersburg State FL Zip 33712 County Pinellas Latitude 27.76311017 Longitude -82.67744558 Tax ID 23-31-16-18736-000-0020, 23- 31-16-18736-000-0010, 23-31- 16-18736-000-0030 Property Major Type Land Property Type Multi-Family Address 3200-3300 Fairfield Ave S & 695 Date 2/22/2023 City Saint Petersburg Price $5,850,000 State FL Price Per Unit $22,159 Zip 33712 Price per Land SF $19.41 Tax ID 23-31-16-18736-000-0020, 23-Financing Conventional Grantor Fairfield Office LLC & Fairfiled Property Rights Fee Simple Grantee WILKES 4TH STREET Conditions of Sale Arm's Length Legal Description --Days on Market -- Acres 6.92 Topography Gently Sloping Land SF 301,344 Zoning IT Road Frontage Fairfield Ave S Flood Zone Zone X Shape Rectangular Encumbrance or Easement None Noted Utilities All to Site Environmental Issues None Noted Site Sale Comments Sale of three parcels that sold under two separate contracts from two different two entities. Parcels 23-31-16-18736- 000-0010 and 23-31-16-18736-000-0020 sold for $4,088,000 and Parcel 23-31-16-18736-000-0030 sold for $1,512,000 for a total combined price of $5,600,000. The sale was contingent upon the buyer’s gaining approvals from the city of St. Petersburg to redevelop the property into affordable housing. The sale was an off-market transaction without the use of broker. The buyer purchased the property with the intention of redeveloping the site into a 264 unit multifamily affordable housing complex. The buyer anticipated $250,000 in demolition costs. The site is located in an industrial zone and received a nontransferable approval for multifamily development through a State Law and City Ordinance permitting the rezoning of the site to affordable housing. Land Comparable 4 Transaction Page 72 Definitions Definitions are from The Dictionary of Real Estate Appraisal, 7th Edition (Dictionary), the Uniform Standards of Professional Appraisal Practice (USPAP), and Building Owners and Managers Association International (BOMA). Absolute Net Lease A lease in which the tenant pays all expenses including structural maintenance, building reserves, and management; often a long-term lease to a credit tenant.1 Amortization 1. The process of retiring a debt or recovering a capital investment, typically through scheduled, systematic repayment of the principal; a program of periodic contributions to a sinking fund or debt retirement fund.1 2. The gradual reduction of an amount over time, such as tax depreciation of intangible items. As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 Base Rent The minimum rent stipulated in a lease.1 Base Year The year on which escalation clauses in a lease are based.1 Building Common Area In office buildings, the areas of the building that provide services to building tenants but that are not included in the office area or store area of any specific tenant. These areas may include, but shall not be limited to, main and auxiliary lobbies, atrium spaces at the level of the finished floor, concierge areas or security desks, conference rooms, lounges or vending areas, food service facilities, health or fitness centers, daycare facilities, locker or shower facilities, mail rooms, fire control rooms, fully enclosed courtyards outside the exterior walls, and building core and service areas such as fully enclosed mechanical or equipment rooms. Specifically excluded from building common area are floor common areas, parking space, portions of loading docks outside the building line, and major vertical penetrations.2 Building Rentable Area The sum of all floor rentable areas. Floor rentable area is the result of subtracting from the gross measured area of a floor the major vertical penetrations on that same floor. It is generally fixed for the life of the building and is rarely affected by changes in corridor size or configuration.2 Certificate of Occupancy (COO) A formal written acknowledgment by an appropriate unit of local government that a new construction or renovation project is at the stage where it meets applicable health and safety codes and is ready for commercial or residential occupancy.1 Common Area Maintenance (CAM) The expense of operating and maintaining common areas; may or may not include management charges and usually does not include capital expenditures on tenant improvements or other improvements to the property.1 The amount of money charged to tenants for their shares of maintaining a [shopping] center’s common area. The charge that a tenant pays for shared services and facilities such as electricity, security, and maintenance of parking lots. Items charged to common area maintenance may include cleaning services, parking lot sweeping and maintenance, snow removal, security and upkeep.3 Condominium An attached, detached, or stacked unit within or attached to a structure with common areas that are held as tenants in common (an undivided interest) with other owners in the project. The units can be 1 Dictionary of Real Estate Appraisal, 7th Edition 2 Building Owners and Managers Association (BOMA) 3 International Council of Shopping Centers (ICSC), 4th Edition residential, commercial, industrial, or parking spaces or boat docks. These units are commonly defined by state laws in their locations. Because units can be stacked on top of other units, these units can be defined both vertically and horizontally.1 Conservation Easement An interest in real estate restricting future land use to preservation, conservation, wildlife habitat, or some combination of those uses. A conservation easement may permit farming, timber harvesting, or other uses of a rural nature as well as some types of conservation- oriented development to continue, subject to the easement.1 Contributory Value A type of value that reflects the amount a property or component of a property contributes to the value of another asset or to the property as a whole. The change in the value of a property as a whole, whether positive or negative, resulting from the addition or deletion of a property component. Also called deprival value in some countries.1 Depreciation 1. In appraisal, a loss in property value of improvements from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the value of the improvement on the same date. 2. In accounting, an allocation of the original cost of an asset, amortizing the cost over the asset’s life; calculated using a variety of standard techniques.1 Disposition Value The most probable price that a specified interest in property should bring under the following conditions:  Consummation of a sale within a specified time, which is shorter than the typical exposure time for such a property in that market.  The property is subjected to market conditions prevailing as of the date of valuation;  Both the buyer and seller are acting prudently and knowledgeably;  The seller is under compulsion to sell;  The buyer is typically motivated;  Both parties are acting in what they consider to be their best interests;  An adequate marketing effort will be made during the exposure time;  Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto; and  The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.4 Easement The right to use another’s land for a stated purpose.1 Effective Date 1. The date on which the appraisal opinion applies. (SVP) 2. The date to which an appraiser’s analyses, opinions, and conclusions apply. 3. The date that a lease goes into effect.1 Effective Gross Income (EGI) The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income.1 Effective Rent Total base rent, or minimum rent stipulated in a lease, over the specified lease term minus rent concessions; the rent that is 4 Dictionary of Real Estate Appraisal, 7th Edition Page 73 effectively paid by a tenant net of financial concessions provided by a landlord. (TIs).1 Excess Land Land that is not needed to serve or support the existing use. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately.1 Expense Stop A clause in a lease that limits the landlord’s expense obligation, which results in the lessee paying operating expenses above a stated level or amount.1 Exposure Time 1. The time a property remains on the market. 2. An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.1 Extraordinary Assumption An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. Comment: Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP, 2020-2021 ed.) 5 Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.1 Floor Common Area In an office building, the areas on a floor such as washrooms, janitorial closets, electrical rooms, telephone rooms, mechanical rooms, elevator lobbies, and public corridors which are available primarily for the use of tenants on that floor.6 Full Service (Gross) Lease A lease in which the landlord receives stipulated rent and is obligated to pay all of the property’s operating and fixed expenses; also called a full service lease.1 Furniture, Fixtures, and Equipment (FF&E) Business trade fixtures and personal property, exclusive of inventory.1 Going-Concern Value An outdated label for the market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern or market value of the total assets of the business.7 Gross Building Area (GBA) 1. Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above-grade area. This includes mezzanines and basements if and when typically included in the market area of the type of property involved. 2. Gross leasable area plus all common areas. 3. For residential space, the total area of all floor levels measured from the exterior of the walls and including the superstructure and substructure basement; typically does not include garage space.1 Gross Leasable Area (GLA) Total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines; measured from the center of joint partitioning to the outside wall surfaces.1 5 USPAP, 2020-2021 ed. 6 Building Owners and Managers Association (BOMA) 7 Dictionary of Real Estate Appraisal, 7th Edition Gross Up Method A method of calculating variable operating expenses in income- producing properties when less than 100% occupancy is assumed. Expenses reimbursed based on the amount of occupied space, rather than on the total building area, are described as “grossed up.”1 Gross Retail Sellout The sum of the separate and distinct market value opinions for each of the units in a condominium, subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent the value of all the units as though sold together in a single transaction; it is simply the total of the individual market value conclusions. An appraisal has an effective date, but summing the sale prices of multiple units over an extended period of time will not be the value on that one day unless the prices are discounted to make the value equivalent to what another developer or investor would pay for the bulk purchase of the units. Also called the aggregate of the retail values or aggregate retail selling price.1 Ground Lease A lease that grants the right to use and occupy land. Improvements made by the ground lessee typically revert to the ground lessor at the end of the lease term.1 Ground Rent The rent paid for the right to use and occupy land according to the terms of a ground lease; the portion of the total rent allocated to the underlying land.1 Hypothetical Condition 1. A condition that is presumed to be true when it is known to be false. (SVP – Standards of Valuation Practice) 2. A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP, 2020- 2021 ed.)1 Insurable Value A type of value for insurance purposes. (Typically this includes replacement cost less basement excavation, foundation, underground piping and architect’s fees).1 Investment Value 1. The value of a property to a particular investor or class of investors based on the investor’s specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market.1 2. The value of an asset to the owner or a prospective owner given individual investment or operational objectives. (IVS) Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires.1 Leasehold Interest The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease.1 Liquidation Value The most probable price that a specified interest in property should bring under the following conditions:  Consummation of a sale within a short time period.  The property is subjected to market conditions prevailing as of the date of valuation.  Both the buyer and seller are acting prudently and knowledgeably.  The seller is under extreme compulsion to sell.  The buyer is typically motivated. Page 74  Both parties are acting in what they consider to be their best interests.  A normal marketing effort is not possible due to the brief exposure time.  Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto.  The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.1 Market Rent The most probable rent that a property should bring in a competitive and open market under all conditions requisite to a fair lease transaction, the lessee and lessor each acting prudently and knowledgeably, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the execution of a lease as of a specified date under conditions whereby  Lessee and lessor are typically motivated;  Both parties are well informed or well advised, and acting in what they consider their best interests;  Payment is made in terms of cash or in terms of financial arrangements comparable thereto; and  The rent reflects specified terms and conditions typically found in that market, such as permitted uses, use restrictions, expense obligations, duration, concessions, rental adjustments and revaluations, renewal and purchase options, frequency of payments (annual, monthly, etc.), and tenant improvements (TIs).1 Market Value The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:  Buyer and seller are typically motivated;  Both parties are well informed or well advised, and acting in what they consider their own best interests;  A reasonable time is allowed for exposure in the open market;  Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and  The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.1 Marketing Time An opinion of the amount of time to sell a property interest at the concluded market value or at a benchmark price during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which precedes the effective date of an appraisal. (Advisory Opinion 7 and Advisory Opinion 35 of the Appraisal Standards Board of the Appraisal Foundation address the determination of reasonable exposure and marketing time.)1 Modified Gross Lease A lease in which the landlord receives stipulated rent and is obligated to pay some, but not all, of the property’s operating and fixed expenses. Since assignment of expenses varies among modified gross leases, expense responsibility must always be specified. In some markets, a modified gross lease may be called a double net lease, net net lease, partial net lease, or semi-gross lease.1 Operating Expense Ratio The ratio of total operating expenses to effective gross income (TOE/EGI); the complement of the net income ratio, i.e., OER = 1 – NIR1 Partial Interest Divided or undivided rights in real estate that represent less than the whole, i.e., a fractional interest such as a tenancy in common or easement.1 Pass Through A tenant’s portion of operating expenses that may be composed of common area maintenance (CAM), real property taxes, property insurance, and any other expenses determined in the lease agreement to be paid by the tenant.1 Potential Gross Income (PGI) The total income attributable to property at full occupancy before vacancy and operating expenses are deducted.1 Prospective Opinion of Value A value opinion effective as of a specified future date. Ther term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long- term occupancy.1 Rentable Area For office or retail buildings, the tenant’s pro rata portion of the entire office floor, excluding elements of the building that penetrate through the floor to the areas below. The rentable area of a floor is computed by measuring the inside finished surface of the dominant portion of the permanent building walls, excluding any major permanent penetrations of the floor. Alternatively, the amount of space on which the rent is based; calculated according to local practice.1 Replacement Cost The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout.1 Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same or similar materials, construction standards, design, layout, and quality of workmanship and embodying all of the deficiencies, superadequacies, and obsolescence of the subject building.1 Retrospective Value Opinion A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.”1 Surplus Land Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel.1 Triple Net (Net Net Net) Lease An alternative term for a type of net lease. In some markets, a net net net lease is defined as a lease in which the tenant assumes all expenses (fixed and variable) of operating a property except that the landlord is responsible for structural maintenance, building reserves, and management; also called NNN lease, net net net lease, or fully net lease.1 Use Value The value of a property based on a specific use, which may or may not be the property’s highest and best use. If the specified use is the property’s highest and best use, use value will be equivalent to market value. If the specified use is not the property’s highest and best use, use value will be equivalent to the property’s market value based on the hypothetical condition that the only possible use is the specified use. Value-in-Use The amount determined by discounting the future cash flows (including the ultimate proceeds of disposal) expected to be derived from the use of an asset at an appropriate rate that allows for the risk of the activities concerned. Page 75 Qualifications Page 76 New York | Dallas | Los Angeles | Raleigh | Washington DC | Atlanta Memorandum To: David Margolis, B.C.S., City Attorney, City of Clearwater; Michael Delk, Assistant City Manager, City of Clearwater; and Jay Ravins, Finance Director, City of Clearwater From: HR&A Advisors, Inc. Date: October 10, 2023 Re: Clearwater Bluff Sites City Hall Proposal Evaluation Executive Summary Overview and Purpose At the request of the City of Clearwater, HR&A was tasked with reviewing the revised proposal from Gotham Property Acquisitions, LLC (Gotham) and The DeNunzio Group for the redevelopment of the City Hall Site in Downtown Clearwater, as submitted in April 2023, along four key lines: (a) Review Gotham’s revised plans, financial model, and financial assumptions to assess their accuracy in light of the site and current market conditions; (b) Based on that analysis, confirm or disconfirm the extent of the financial feasibility gap claimed by Gotham in that revised proposal; (c) Assess the economic and fiscal benefits that would be created by the project to provide a clear accounting of costs and benefits to the City of Clearwater; and (d) Outline considerations and recommendations around the City’s response to the revised proposal. HR&A reviewed materials that Gotham provided pertaining to their Original Proposal submission in July 2022, their Due Diligence Analysis, and their Revised Proposal with Reduced Purchase Price submitted in April 2023 and evaluated changes in the proposal’s programmatic and financial assumptions, economic and fiscal impacts, and overall financial offer. This memo provides a summary of our core findings. Background In response to the City’s Call for Development Concepts in June of 2022, Gotham’s initial proposal (the “Original Proposal”) offered a $15.4 million purchase price and proposed a two-tower concept that would deliver 600 residential units and 25,000 square feet of retail. This proposal was accepted by the City and formalized in a Development Agreement between the City, Gotham, and The DeNunzio Group that established a minimum threshold of 500 residential units and a purchase price of $15.4 million, among other terms. After undergoing a due diligence period as part of that development agreement, Gotham presented a Revised Proposal to the City Council in April of 2023, responding to changing real estate market conditions and tighter capital markets which were impacting the financial viability of the Original Proposal, noting that there was approximately an $80 million gap in project feasibility. The proposed modifications to the plan included changing the design from two towers to one, reducing the number of units from the minimum of 500 in the Development Agreement to 400, retaining the initial parking subsidy as noted in the development agreement and seeking an additional subsidy of $4 million, and proposing two approaches to altering and deferring payment to close the full financial gap. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 2 Key Findings HR&A reviewed Gotham’s financial models and conducted independent benchmarking exercises across a wide range of assumptions, including residential rents, insurance costs, operating expenses, property taxes, impact fees, cap rates, financial return metrics, and development costs. To support a review of construction costs, HR&A retained Dharam Consulting, a construction cost estimation consulting firm. Below, we highlight five key findings from our analysis, which are expanded upon in the body of this memo. 1. Based on HR&A's review of Gotham’s financial model, most real estate market assumptions employed are in alignment with market trends, industry standards, and prior transactions. Recognizing that there is complexity and nuance in real estate assumptions, HR&A found three items worth further discussion: a. Cap Rates.1 Gotham’s underwriting of cap rates is reasonable and reflective of current market conditions but could be seen as overly cautious, as the metric is meant to approximate valuation farther out in the future. The 5.25% cap rate assumption is justified in today’s market, but could compress in future years closer to the building’s sale, generating greater returns for Gotham, and decreasing the size of the overall financial gap. Based on HR&A’s research and understanding of the market, we do not believe that negotiating with Gotham on cap rate assumptions is likely to be seen as a source for closing the financial gap. b. Operating Expenses. Gotham’s operating expense assumptions were provided by a property management consulting firm with access to proprietary property management data. While Gotham’s operating expense estimates are higher than those that HR&A could evaluate with public data, it is assumed that Gotham’s vendor’s dataset is a more accurate source of information. Nonetheless, because the proprietary data was not provided to HR&A, it could not be reviewed in detail and verified for applicability to the project, and therefore our analysis is deemed inconclusive. c. Construction Cost Estimates. In its review of construction cost estimates, Dharam Consulting identified assumptions in Gotham’s estimate that are lower than they would estimate, including relatively low contingencies, suggesting a low level of risk tolerance in their estimates in this early design stage. Any increases to their construction cost estimates would possibly outweigh all savings produced by adjusting cap rates and operating expenses. These have since been reviewed with Gotham and their construction firm, both who stand by their working estimates, and Gotham has committed to stipulations that it would accept construction cost risk. 2. HR&A’s review of Gotham’s financial model and independent research into market conditions identified a financial gap of approximately $76.5 to $80.0 million under the Revised Proposal. Under the April 2023 Revised Proposal, Gotham stated a financial feasibility gap of approximately $80 million, identifying two alternatives with a series of potential approaches to fill the gap: a. Reduction of the building program to a single tower with 400 units that allows for reduced construction costs, shorter construction period, and faster lease up (reduction of $55.5 to $56.0 million); b. Maintaining the City’s parking contribution of $17 million, that would otherwise be reduced proportionally with the reduced program’s decrease in parking spaces ($4.8 million); c. One of the following approaches to land pricing and timing of payment: 1 A cap rate is the ratio of a property’s income over its cost or value, and is used to calculate the potential rate of return of a real estate investment. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 3 i. Reduction in the purchase price of the site from $15.4 million to $7.6 million (reduction of $7.8 million), to be repaid upon stabilization and no later than five years after closing (savings of $3.4 million); ii. Purchase money mortgage for full purchase price of $15.4 million, with no interest for 10 years; d. An additional City contribution ($4 million); e. An additional commitment from the development team to close the remaining gap, ranging from $500,000 to $4 million, depending upon (c)i or (c)ii. Based on HR&A’s review of financial assumptions, assuming variable assumptions on a cap rate given the discussion above, we believe a financial gap of approximately $76.5 to $80.0 million is substantiated. 3. The proposed reduction in apartment units is warranted given market dynamics. In addition to reducing construction costs and development timeline, reducing the number of units right-sizes the development to account for absorption of new residential units in the market. 400 units is on the larger end of residential projects in the surrounding market and, assuming the need to retain a one-tower development scheme, delivery of an even greater number of units at once brings risk of oversupply and slow absorption. 4. While fiscal impacts of the Revised Proposal are less than the Original Proposal given the reduction in scale, they remain net positive to the City. The table below summarizes the total value of payment of purchase price, total cost of subsidy, inclusive of parking, impact fees, an additional City contribution, and total fiscal impact. The purchase money mortgage structure introduces a risk of non- payment to City, which is discussed further on page 26 of this memo, and totals are therefore shown including and excluding the payment. Table 1: Financial Offer Comparison (In Present Value Terms in Year 2023) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Revised Proposal (April 2023 Model – Original Purchase Price) Purchase Price PV2 $14,515,977 $6,364,880 $10,801,250 Subsidy (10-Year PV)3 ($15,187,225) ($19,997,668) ($19,997,668) Fiscal Impact to City (30-Year PV) $37,432,739 $27,333,302 $27,333,302 Net Financial Impact to the City: Impact without Purchase Money Mortgage Payment (30-Year NPV) $22,245,513 $7,335,633 $7,335,633 Impact with Purchase Money Mortgage Payment (30-Year NPV) $36,761,490 $13,700,514 $18,136,883 2 Assuming a 3% discount rate and 3% inflation. 3 In reviewing areas of potential subsidy, the City's $1 million contribution to the pedestrian bridge was considered. As the project represents both a developer contribution and City capital contribution towards an offsite public improvement, HR&A has elected to exclude the City's cost as public subsidy, as it is not a direct contribution to the private development project. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 4 Together with the adjacent Harborview site, the development of the City Hall site is intended to activate Downtown Clearwater by generating new foot traffic and spending, including a new year-round population to Downtown, as well as new visitors and workers. The project also represents a scale and quality of development that Downtown has yet to see, and its presence creates a new market comparable by which other projects can follow. The development of both projects is more than the sum of their parts – collectively, they represent a seminal investment in Downtown Clearwater that builds upon the City’s investment in Coachman Park. In addition to fiscal impacts, the development of the old City Hall site will generate substantial economic development benefits for the city of Clearwater. The Revised Proposal will result in $12.1 million in total permanent economic impact, creating 85 permanent full-time-equivalent jobs across the region. The construction period will create 2,395 jobs during that time, with a total one-time impact of more than $322 million. 5. Building on a long-term coordinated plan to spur activity in Clearwater’s downtown, the redevelopment of the old City Hall site represents an important part of that effort, and therefore warrants further efforts by the City to explore if satisfactory terms can be reached with Gotham. HR&A recommends the City negotiate a counterproposal with Gotham to address three areas of risk: a. Financial Gap and Payment Timing: The City should work with Gotham to identify viable means to close the financial gap, with both sides considering measures. Both approaches proposed by Gotham involve a purchase money mortgage, which defers payment to the City for 5 and 10 years, respectively. Under these two approaches, the City would be upfronting all subsidies and receiving payment from Gotham up to 10 years later. In addition, the purchase money mortgage concept introduces the risk of non-payment if the developer were to default over the 10-year period and/or if there were more senior lenders before the City that Gotham needed to make whole. This risk needs to be properly mitigated, and HR&A details a variety of options on page 26 of this memo. b. Re-negotiation: To avoid the risk of project delay through subsequent rounds of negotiations, the City and Gotham should see the agreement reached as part of the negotiation of the Revised Proposal from Gotham as a best-and-final offer. The amended Development Agreement should clearly establish that Gotham will be responsible and absorb any real estate market, financial, and construction risks moving forward. This is particularly important in the case of construction costs, given that Dharam Consulting’s review suggested possibly low estimates and contingencies in current estimated being used by Gotham. Following discussions with Gotham, they have asserted confidence in their construction cost estimates and have agreed to absorb all construction cost risk. They have also agreed that once the due diligence period is over, they will not come back to the City for further negotiations or in request of further public subsidy. c. Project Completion: The City should seek to establish firm construction commencement and completion deadlines in the amended Development Agreement, particularly if Gotham does not pay the City for the purchase of the site upfront, to minimize the risk of Gotham “sitting” on a vacant site waiting for the market to turn, a situation where the City would have little to no recourse under current terms. Gotham has provided closing conditions it would agree to, including a completion guarantee, a guaranteed maximum price from a reputable general contractor, and full entitlements. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 5 Background and Introduction In May 2023, HR&A was hired to assist in the evaluation of a revised proposal from Gotham Property Acquisitions, LLC (Gotham) and The DeNunzio Group for the redevelopment of the City Hall Site in Downtown Clearwater. Over two decades, the City of Clearwater has sought various strategies to better leverage its waterfront and activate its downtown. HR&A has worked closely with the City over the years to reposition over 66 acres of Clearwater’s downtown waterfront. HR&A led the original Imagine Clearwater master plan, which identified opportunities for catalytic investment downtown, near Coachman Park, including three City-owned Bluff sites: a vacant lot, the City Hall Site, and the Harborview site. Subsequently, in 2018, HR&A conducted feasibility analyses for the three Bluff sites to inform the procurement of a development partner. An initial solicitation in 2019 failed to identify a suitable development team. In 2021, over 50 local and national developers were informally invited to submit conceptual ideas for redevelopment of the three Bluff sites. Only two responses were received, with concerns voiced over the riskiness of developing when the future of other nearby parcels is unknown. Finally, on June 9th, 2022, the City put forth a Call for Development Concepts specifically for the City Hall and Harborview Sites. The June 2022 Call for Development Concepts prompted 3 proposals. The proposal teams consisted of Chicago- based GSP Development; Elevate Clearwater, a collective of various developers; and The Bluffs, comprised of New York-based Gotham Property Acquisitions, LLC (Gotham) and local firm The DeNunzio Group. Of the three proposals, the Gotham-DeNunzio proposal offered the most multifamily rental units, while Elevate Clearwater had the most retail square footage. Both Elevate and Gotham-DeNunzio proposals offered a $15.4 million purchase price for the City Hall site, aligned with third-party appraisals the City had made available. In contrast, GSP offered roughly $3.5 million for both sites and was not seeking incentives for their proposed mixed- use development. Of note, Elevate Clearwater explicitly sought incentives and proposed using $5 million of City CRA funds to build parking. The Gotham-DeNunzio proposal did not mention specific CRA funding, but it did say they were interested in further discussion of how the development incentives mentioned in the RFP could be used by the project. The Gotham-DeNunzio proposal also included two towers on the City Hall Site, with planned green retail corridors and connectivity from Osceola Avenue to the park. After extensive discussion, City staff ranked the Gotham-DeNunzio proposal first and Elevate Clearwater second. The Clearwater City Council then decided to move forward with the Bluff proposal in June 2022. On August 4th, 2022, the City Council approved a 30-year Agreement between the City, Gotham, and The DeNunzio Group. This Development Agreement established a minimum number of 500 multifamily units, a purchase price of $15.4 million and a holding term. It also set the City contributions to include up to $2 million for a pedestrian bridge, all development fees, and $22 million to cover the cost of parking on both sites, with up to $17 million specifically for 600 spaces on the City Hall Site. The sale and development of these properties then went to a referendum, which asked: Shall the Clearwater City Charter be amended to allow the City, instead of selling the vacant City Hall and a portion of the former Harborview sites to the highest bidder at a public auction, to sell the properties to Gotham Property Acquisitions and The DeNunzio Group; who will create approximately 600 apartments and 158-key hotel, retail, entertainment, restaurants and cultural uses available to all Clearwater residents, as further described and limited by City Ordinance 9597-22?4 The referendum passed in November 2022 with support from more than 66% of residents. 4 “Downtown Bluffs Development Proposal and Nov. 8 Referendum,” City of Clearwater (November 2022). HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 6 On April 20, 2023, following months of exchanges with staff, Gotham presented a revised proposal to City Council for the City Hall Site, responding to changing real estate market conditions and tighter capital markets, which were impacting the financial viability of the original proposal. The modifications to the plan included changing the design from two towers to one, reducing the number of units from the minimum of 500 in the Development Agreement to 400, seeking additional subsidy of $4 million, and proposing two approaches to altering and deferring payment to further close a financial gap, which is further detailed on page 26 of this memo. In June 2023, HR&A was tasked with understanding the financial, economic, and fiscal implications of this revised development proposal for the City Hall Site to support the City in its decision-making. To evaluate the revised development proposal for the old City Hall site and recommend a path forward, HR&A conducted the following tasks: • HR&A reviewed materials provided by Gotham regarding the original and new program, including the Development Agreement. o This included architectural plans, hard cost estimates, operating expenses, and financial models for the 525-unit proposal and the latest 400-unit proposal. In addition, a geotechnical engineering report and updated market study conducted by Gensler were provided with materials for the 400-unit proposal. o General plans for the Harborview site were reviewed for context only – this memo is not meant to be an evaluation of the Harborview site proposal. • HR&A conducted independent research into the current market conditions to evaluate Gotham’s assumptions and model inputs. o HR&A engaged with Gotham and DeNunzio to understand their assumptions and changes. o HR&A also contracted with Dharam Consulting to perform a review of the construction costs from Gotham. Dharam Consulting reviewed estimates from Moss and Coastal, two construction companies from which Gotham solicited construction cost estimates, and produced a bottom-up estimate that was reconciled with Coastal and Gotham over two work sessions. o In addition, HR&A investigated comparable properties for information on common programs, rents, vacancies, and lease-up periods. • HR&A compared Gotham’s latest proposal to other publicly available transactions to understand the fairness of the proposed changes. • HR&A analyzed the economic and fiscal impacts and benefits of each proposal from Gotham. • HR&A identified areas of sensitivity and potential risk for the City in moving forward with Gotham’s latest proposal. Throughout this process, HR&A engaged with City staff, as well as directly with Gotham and the DeNunzio Group. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 7 Proposal Evaluation Summary of Proposals and Agreements HR&A reviewed materials that Gotham provided pertaining to their Original Proposal submission in July 2022, their Development Agreement from August 2022, the initial Due Diligence Analysis from January 2023, and their Revised Proposal from April 2023. The Revised Proposal has two versions – one with the original purchase price and one with the reduced purchase price. A timeline is shown below for reference. Table 2: Timeline for Development of the Clearwater Bluff Sites Timeline June 2022 The City puts out a Call for Development Concepts for the old City Hall & Harborview Sites. June 2022 Gotham-DeNunzio submitted its Original Proposal, suggesting Gotham build two multifamily towers with 600 apartments on the City Hall Site. August 2022 A Development Agreement was signed by the City & Gotham-DeNunzio. November 2022 Clearwater voters approved the sale of the Harborview & City Hall Sites December 2022 As part of its original due diligence period, Gotham solicits hard costs from two construction firms, Moss and Coastal, for a 525-unit, two tower project with a plinth and three levels of an underground parking garage. January 2023 Gotham contacted the City to inform them that the costs for the 525-unit project created a significant gap and requested additional time for due diligence to work on alternatives. The City granted that additional time through April 30th. March 2023 Gotham and the City met to discuss findings from Gotham’s pre-development planning work, reviewing options to close the identified gap including the reduction of units, modification of parking, and alternative funding options (including a purchase money mortgage). In addition, Gotham solicited revised construction hard cost estimates from Moss and Coastal for a 400-unit, single tower project. April 2023 Gotham presents a Revised Proposal to the City with 400 units, one level of underground parking, and a single tower. To move forward, Gotham presented two financial approaches involving a purchase money mortgage. To provide the City time to review options for closing the gap, the City Council approves the amendment for the contract extending due diligence through October 31st, May 2023 HR&A is retained to review Gotham’s Revised Proposal. Gotham began its due diligence period in November 2022, based on a 525-unit, two tower project. As the due diligence period continued, changing market conditions led Gotham to consider the 525-unit project infeasible, so they asked the City in January 2023 for additional time to investigate other options. This led to the creation of a single tower scenario of 400 units, which is documented in their April 2023 financial model, and was presented to the City in April 2023. As reported by Gotham, these changing market conditions included: • Hard costs increased significantly since the June 2022 proposal due to inflation and site specifics (a January 2023 geotechnical engineering report found that building more than one level of underground parking is extremely expensive and thus cost-prohibitive). • Operating insurance costs more than doubled, increasing overall operating expenses (excluding real estate taxes). • Rents decreased modestly across the Clearwater-Tampa-St. Petersburg region since Summer 2022. • Securing equity and debt has become more challenging. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 8 • Interest rates increased 350 basis points (bps) since July 2022, making the project more expensive to finance. Due to these trends, Gotham noted that they were not able to see the returns they and their investors wanted with the 525-unit, two tower project. With 525 units, Gotham was estimating a 4.5% Yield to Cost (YTC), as opposed to their desired YTC of 6% or even their July 2022 estimate of an acceptable 5.5% return.5 Gotham thus proposed a single tower, reducing construction by one year, and eliminating two levels of underground parking. Gotham also decreased the number of multifamily units proposed to 400, despite this being a departure from the requirements of the Development Agreement, which requires 500 to 600 units to be constructed at the site. The change helped address challenges related to the prohibitive cost of building more than one level of underground parking due to subsurface conditions. When inquired about the possibility of incorporating additional units within a single tower concept, Gotham expressed concerns with the ability of the market to absorb more than 400 units in a single leasing cycle, considering the Heron in Tampa had 419 units and had a long leasing period, as well as research from their consultant Gensler that recommended leasing cycles of no more than 250-300 units. Additionally, Gotham and DeNunzio claimed that height was a major discussion point in the November 2022 referendum and that decided to not exceed the height of the neighboring Water’s Edge in their one-tower concept.6 Table 3: Program Comparison Assumption Original Proposal (June 2022) Development Agreement (August 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Gross SF 998,000 SF - 1,080,097 SF 618,314 SF Retail SF 25,000SF Up to 40,000 SF 14,000 SF 15,900 SF Residential Units 600 units 500-600 units 525 units 400 units Parking Spaces 600 spaces Subsidy contribution is based on 600 spaces 548 spaces 440 spaces Underground Parking 3 levels - 3 levels 1 level Stories 27 stories Can be up to 289 ft tall 26 stories 28 stories Source: Gotham To meet a 6% yield-on-cost, Gotham proposed two approaches in an April 2023 presentation to City Council, both for a single-400-unit tower with reduced parking: • The first approach Gotham put forth for consideration would reduce the purchase price from $15.4M to $7.6M, delivered as a purchase money mortgage at 0% interest, to be paid upon stabilization but not later than 5 years from closing.7 Under this approach, Gotham also seeks an additional $4M in City contributions and an exception to the Development Agreement to retain the entire $17M the City committed for parking, despite now delivering less than 600 spaces. Gotham then committed to closing the remaining financial gap, estimated at approximately $4M. 5 Yield to Cost (YTC) = Net Operating Income / Total Development Cost – net of subsidy and hard cost escalation. For more information on the project’s estimated financial returns, see page 14. 6 The City, however, noted that this is not a major area of concern to them and that they would be comfortable and open to Gotham exceeding the height of their Revised Proposal. This is in part because the Downtown Core is a zoning district intended for high density use, and the district has no height limitation. In addition, the City Council and voters at the 2022 referendum expressed a desire for 600 housing units, and so the City understands that might mean a taller building is needed to accommodate the desired number of units. 7 According to Gotham, the net present value of the $7.6 million purchase money mortgage is $3.4 million. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 9 • Alternatively, Gotham’s second approach proposes a $15.4M purchase money mortgage with no interest for 10 years.8 Gotham cites their ability to make this project viable due to changes to the program, shorter construction and lease up duration, and value engineering. Similar to the first approach, this strategy asks for an additional $4M City contribution. It also seeks to retain the entire $17M in parking set aside in the Development Agreement, despite having less than 600 spaces. Table 4: Development Budget Comparison Original Proposal (June 2022) Development Agreement (August 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Revised Proposal (April 2023 Model – Original Purchase Price) Acquisition Costs $15.4M $15.4M $15.4M $7.6M (with a purchase money mortgage) $15.4M (with a purchase money mortgage) Sources Debt $227.8M - $204.4M $117.2M $122.1M City Funds: Parking + Other - $17M (minus $30,000/space if fewer than 600 spaces are delivered) $15.44M $21M (including additional $4M ask) $21M City Funds: Bridge - Up to $2M $1M $1M $1M City Funds: Permit + Impact Fees $939.4K CRA will pay all permit/impact fees on Gotham’s behalf (estimated at $939.4K in proposal) $1.2M $952.3K $952.3K Purchase Money Mortgage - - - $7.6M (fully paid in Year 5) $15.4M (fully paid in Year 10) Equity $122.6M - $118.7M $65.3M $61.5M Total Sources $350.4M - $340.6M $213.1M $222.0M Total City Funds Requested - Up to $19M + permit/impact fees $17.64M $22.95M $22.95M Levered Yield on Cost (Untrended) 5.10% - 4.52% 5.87% 5.97% IRR 17.0% - -6.0% 14.3% 14.2% 8 According to Gotham, the net present value of the $15.4 million purchase money mortgage is $12.2 million. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 10 City staff reported finding the proposal purchase money mortgage unsatisfactory, as the deferral of payment presents some level of risk of nonpayment, explaining the following ramifications. While the purchase money mortgage would be a legally binding agreement, and while we are unaware of Gotham defaulting on any such commitments to date, if for some reason the City was not paid by Gotham, there could be political challenges for the City to bring a lawsuit against a developer in its Downtown. This is especially true as the City is looking to catalyze development Downtown and create a new market for investment. In addition, if the City were to somehow pursue a lawsuit and win, the payment would likely not be easily accessible cash, with lenders likely having first call, and the City’s main recourse could become possession of the building, which would not be suitable for a City government that has no interest in managing an apartment building or disposing of a challenged asset. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 11 Assumptions and Inputs Evaluation HR&A reviewed materials that Gotham provided pertaining to their Original Proposal submission in July 2022, their Due Diligence Analysis, and their Revised Proposal with Reduced Purchase Price submitted in April 2023. Below is a summary of the evolution in key assumptions and inputs that have the greatest impact on the overall financial performance of the development model. HR&A conducted benchmarking exercises to understand how assumptions align with the Tampa metro area market and sensitivity analyses to understand how assumptions may or may not drive a feasibility gap. A further review of all assumptions and their evolution across proposals can be found in Appendix D. In summary, HR&A found that most real estate market assumptions Gotham employs are aligned with market trends, industry standards, and prior transactions we have analyzed. Recognizing that there is complexity and nuance in real estate assumptions, HR&A found three items worth further discussion, which are discussed at greater length in the table below among the other assumptions reviewed: • Cap Rates. Gotham’s underwriting of cap rates is reasonable and reflective of current market conditions but could be seen as overly cautious as the metric is meant to approximate valuation farther out in the future. The 5.25% cap rate assumption is justified in today’s market but could compress in future years closer to the building’s sale, generating greater returns for Gotham, and decreasing the size of the overall financial gap. Based on HR&A’s research and understanding of the market, we do not believe that negotiating with Gotham on cap rate assumptions is likely to be seen as a source for closing the financial gap. • Operating Expenses. Gotham’s operating expense assumptions were provided by a property management consulting firm with access to proprietary property management data. While Gotham’s operating expense estimates are higher than those that HR&A could evaluate with public data, it is assumed that Gotham’s vendor’s dataset is a more accurate source of information. Nonetheless, because the proprietary data was not provided to HR&A, it could not be reviewed in detail and verified for applicability to the project, and therefore our analysis is deemed inconclusive. • Construction Cost Estimates. In its review of construction cost estimates, Dharam Consulting identified assumptions in Gotham’s estimate that are lower than they would estimate, including relatively low contingencies, suggesting a low level of risk tolerance in their estimates in this early design stage. Any increases to their construction cost estimates would possibly outweigh all savings produced by adjusting cap rates and operating expenses. These have since been reviewed with Gotham and their construction firm, both who stand by Gotham’s working estimates, and Gotham has committed to stipulations that it would accept construction cost risk. Table 5 provides a detailed summary of the assumptions reviewed and HR&A’s findings. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 12 Table 5: Assumptions and Inputs Evaluation Assumption Gotham Assumption (Revised Proposal) HR&A Opinion Residential Rents $3.61 per square foot According to conversations with Gotham on June 22, they indicated that because there are no direct comparable properties in Clearwater itself, they identify rents by looking to the mature markets in Tampa and St. Petersburg. They approached a rent assumption by assuming a 15% discount on prevailing St. Petersburg rents and a 20% discount on Tampa rents, equal to $2.97 for St. Petersburg and $3.44 for Tampa. While Gotham’s assumption of $3.61 slightly exceeds the high end of this range, it is in line with a discount on individual comps, including the Heron in Tampa (20% discount is equal to $3.76) and the Asher in Tampa ($3.44). Compared to the most comparable multifamily product in Clearwater, 1100 Apex and The Nolen, Gotham’s assumed rents represent an approximately $1.40 premium, or 65-70%, over existing product. Because of the unprecedented nature of this project, these rent estimates represent some risk for Gotham in its execution of the project. Understanding Gotham’s approach to the project, and the product it seeks to deliver, the $3.61 represents a reasonable assumption for rents per square foot for Gotham’s underwriting of a new construction, top-of-the-market product that does not currently exist in Clearwater. HR&A Opinion: Sound Insurance $1,800 per unit HR&A found that average insurance premiums per multifamily unit were lower than this in the Tampa metropolitan area at roughly $700- $730 per unit.9 However, insurance premiums have increased dramatically in the past year across states with climate-related risk, with a particularly sharp surge in Florida. Estimates of projected increases over the course of 2023 vary from 20% to 50%, suggesting insurance costs per unit could reach $1,100 if on par with the larger region. Gotham’s insurance assumptions could fall within the realm of feasibility given the rapid escalation and uncertainty around insurance premiums into the future but are currently relatively high. HR&A Opinion: Higher than existing, but reasonably sound given rapid escalation Operating Expenses $8,039 per unit/year (exclusive of taxes and inclusive of insurance) Gotham’s operating expense assumptions originate from the property management consulting firm Greystar, whose estimates are based on ~30 comparable properties across Florida.10 HR&A has not seen detailed operating expense data for this set of properties due to confidentiality. In a benchmarking exercise, HR&A identified alternative 9 CoStar; Trepp, “Impact of Rising Insurance Costs in Major Coastal Multifamily Markets,” June 2023. 10 Comparable properties include 31 properties with an average of 324 units per property located in Southwest Florida, Southeast Florida, and North Florida markets. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 13 Assumption Gotham Assumption (Revised Proposal) HR&A Opinion operating expenses that are slightly lower than Gotham’s. HR&A found that prevailing annual operating expenses, inclusive of insurance, but exclusive of taxes in the Tampa metropolitan area are roughly $6,100 - $6,700 per unit, according to CoStar.11 Operating expenses per unit in the Central Pinellas and North Pinellas submarkets fall on average in the middle of this range, at $6,500 exclusive of taxes.12 Using the Central/North Pinellas average, with an additional 35% premium on the costs of insurance to account for recent substantial increases in insurance premiums in Florida (as described in the row above), results in an average operating expense of about $6,700 per unit, or 20% less than Gotham’s assumption.13 HR&A assumes that Greystar’s proprietary dataset is more comprehensive and reliable than the data available on CoStar, but because Greystar has not provided the detailed data on their 30- property comp set, it is not possible to evaluate whether the dataset is appropriate for the project under consideration. HR&A Opinion: Inconclusive, likely sound but trending conservative Property Taxes $5,750 per unit/year Gotham employs an income approach to estimating property tax. Given the Pinellas County Property Appraiser’s practice of leaning heavily on an income approach, HR&A conducted an independent calculation of the projected property tax revenue based on an income approach, which provided a similar result to Gotham’s assumptions. The use of an income approach and the resulting estimated property taxes are reasonable. HR&A Opinion: Sound Impact Fees $663,495 Per the Development Agreement, the Community Redevelopment Authority will pay the City all impact fees incurred by the development on behalf of Gotham. The assumed impact fees account for multi- modal impact fees and water and wastewater impact fees. Multi-modal impact fees are calculated based on the project program, with a designated fee per unit by use. The Revised Proposal calculates multi- modal impact fees based on the Original Proposal program, with 600 residential units and 25,000 square feet of retail. Estimated impact fees based on the program in the Revised Proposal are approximately 11 CoStar; HR&A Analysis for Florida Apartment Association, 2020 12 CoStar; average operating expenses per unit for 4 and 5-star multifamily properties in the Central Pinellas and North Pinellas submarkets. The City Hall site is located on the border between these two submarkets. The average of operating expenses per square foot exclusive of property taxes for the two submarkets, $5.57, is close to the average for the overall Tampa market of $5.70. The Tampa market includes the City of Tampa, St. Petersburg, Clearwater, Dunedin, and extends north to Spring Hill and east to Plant City. The Central/North Pinellas submarket average is 9% below the high mark of $6.08 per square foot in North Tampa. 13 Insurance premium based on National Multifamily Housing Council (NHMC) 2023 State of Multifamily Risk Survey and Report HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 14 Assumption Gotham Assumption (Revised Proposal) HR&A Opinion $450,800. While an almost 50% difference, updating impact fees based on the updated program has minimal to no impact on return metrics. HR&A Opinion: Relatively high, but limited in material impact to findings on financial valuation Cap Rates 5.25% Gotham assumes a 5.25% cap rate in its Revised Proposal, up from 5.00% in the Due Diligence Analysis, a significant increase that impacts the project’s internal rate of return and presumably, the target yield to cost, as explained in the next paragraph. Nationally, multifamily cap rates have increased, from 3.80% - 4.25% at the beginning of 2022 to 4.7% - 5.3% in Q1 2023, and 80% of investors project an increase in multifamily cap rates in the Southeast US over the next year.14 Gotham’s cap rate assumptions align with cap rates for the Tampa and St. Petersburg markets, which had cap rates of 4.90% and 5.00% in Q1 2023, respectively. While understanding current and short-term trends in cap rates is important, the cap rate is used to calculate the property’s exit value at least 10 years in the future, as well as refinancing at stabilization. Given the projected expansion of the multifamily market in the Tampa market over the next several years, further cap rate compression could occur; decreasing cap rates would generate a higher IRR.15 A return to a 5.00% cap rate would generate a 15.1% IRR, 40 basis points above Gotham’s current projected IRR of 14.7%. The 5.25% cap rate assumption is justified in today’s market but could compress in future years closer to the building’s sale, generating greater returns for Gotham, and decreasing the size of the overall financial gap. HR&A Opinion: Reasonable given current market dynamics but potentially conservative Financial Returns 6% YTC Gotham uses Yield to Cost (YTC), a metric representing the net operating income divided by the total development cost, as its primary metric of feasibility and to determine the size of the gap in feasibility. Shifts in assumptions that impact the YTC, including changes in the residential market impacting operating revenue, and changes in construction costs and financing impacting the development cost, reduce the YTC. Conversely, increasing net income or decreasing development costs increases the YTC, and therefore reducing the gap in feasibility and need for subsidy. Gotham requires a 6% YTC return threshold, based on a risk premium applied at a risk-free rate. There is typically a relationship between the risk-free rate, cap rate, and YTC. 14 PWC National Investor Survey, Q1 2023. 15 Ibid. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 15 Assumption Gotham Assumption (Revised Proposal) HR&A Opinion HR&A typically sees developers use anywhere between 75-150 basis points as a premium over a cap rate to arrive at a YTC threshold. 16 HR&A Opinion: Sound Development Costs $210.5 million (inclusive of acquisition costs, hard costs, soft costs, and financing costs) Gotham is assuming hard costs of $175 million, inclusive of $160 million in direct costs, general conditions, and general contractor insurance, based on information from the cost estimate provided by the construction firm Coastal; $2 million for the elevated bridge; $4.8 million for a 3% escalation and $8.2 million as 5% contingency. Coastal is a preeminent builder in the region with a substantial track record of estimating and building large-scale multifamily projects. Dharam Consulting, a professional cost consultant, undertook a review of Coastal’s estimate. They found that direct trade cost estimates could be $29 million higher than what Coastal is projecting, largely because of higher plumbing, electrical and finishes costs. When applying the same contingencies and markups that Gotham and Coastal employ in their estimates, the $175 million in Gotham’s model would compare to $195 million in Dharam Consulting’s estimate, an increase of $20 million. Dharam Consulting recommends higher contingencies than Gotham and Coastal have assumed, specifically given that the project is early in the design stage. If Dharam Consulting’s recommended escalations and contingencies were to be used, total hard costs would be in the $227 million range, $52 million higher or a 30% increase from the $175 million in Gotham’s model. Following Dharam’s initial review, findings were presented and discussed with Gotham at the end of August, and Gotham expressed disagreement with Dharam’s estimates. Gotham argued that Moss and Coastal are active builders in the region and have more reliable and current data, and that the process of seeking initial bids served to compare two independent sources, which relatively aligned. Gotham also expressed concerns with the contingencies Dharam Consulting had used, indicating Gotham could handle and absorb the construction risk. HR&A found soft costs and financing costs ratios relative to hard costs to be aligned with typical market ratios. 16 When HR&A spoke with Gotham on June 22, they indicated that they assumed a premium of 100 bps over cap rate to arrive at YTC. They departed from this assumption in the written notes that they provided following that call, in which they explained that the YTC is driven by UST increases in recent quarters, and articulated that investors typically require a 6.5% YTC for a project like this in today’s context. They explained that they are able to settle for 6% given that this project is located in an Opportunity Zone. Despite this additional explanation, HR&A finds Gotham’s original rationale of cap rate plus premium to be a stronger and more sound explanation of how they arrive at the YTC threshold. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 16 Assumption Gotham Assumption (Revised Proposal) HR&A Opinion Further discussion of this topic appears in the Risk Assessment and Recommendations section of this memo, and HR&A believes that commitments by Gotham could remove construction cost overages as a risk to the City if formalized into the development agreement. HR&A Opinion: Hard costs, particularly contingencies and escalation assumptions, could be low, underestimating potential changes and trade cost shifts. Commitments made by Gotham adequately address risk. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 17 Fiscal Impact Comparison In order to help gauge the costs and benefits of the project for the City of Clearwater, HR&A estimated the annual recurring sales, property, and utility tax revenues that the redevelopment of the old City Hall site will create for the City of Clearwater, Pinellas County, the State of Florida, and other local taxing jurisdictions. Sales, property, and utility taxes and franchise fees represent the most impactful public revenue streams. Tax revenue estimates assume that all taxes in the City, County, and State that would now apply to the Project would remain in place over the next 30 years, and that these taxes would retain the same tax formulas and rates now in effect. Sales taxes measure the impacts of spending both onsite at the Clearwater Bluffs site and offsite in retail areas in proximity to the site, such as Cleveland Street, created by introducing new residents to downtown. Property taxes measure the impacts of net new residential units and retail space. Utility taxes and fees measure the impacts of net new residential units. This analysis does not examine fiscal impacts from the proposed redevelopment of the former Harborview site. Sales Tax: HR&A estimated retail spending onsite by assuming average retail sales of $706 per square foot across retail space at the Old City Hall site.17 This results in roughly $110,000 in annual County sales tax revenue and $670,000 in annual State sales tax revenue from the Revised Proposal. The City receives an annual reimbursement of State and County sales taxes, HR&A estimates the amount of that reimbursement in Table 14 on page 22. In addition to direct spending at retail onsite, HR&A estimated the offsite retail spending potential that could occur from the project’s new residents at nearby retail establishments within the City of Clearwater. This is expected to have the greatest impact in Downtown Clearwater, including Cleveland Street retail, as well as support new retail establishments to be developed at the Harborview site. HR&A estimated that this spending would generate approximately $80,000 in total annual sales taxes for Pinellas County. Table 6: Sales Tax Revenue from Direct Onsite Spending (Stabilized Year) Original Proposal Due Diligence Analysis Revised Proposal Onsite Retail Square Footage 25,000 14,000 15,900 State Sales Tax (6%) $1,060,000 $590,000 $670,000 County Sales Tax (1%) $180,000 $100,000 $110,000 Total $1,240,000 $690,000 $780,000 17 Retail Maxim Annual Store Productivity Survey, 2019, adjusted for 2023 dollars. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 18 Property Tax: Gotham estimated property tax revenue generated by new development based on an income capitalization methodology. This methodology closely aligns with the approach favored by the Pinellas County Appraiser’s Office. Gotham estimates $5,750 in property taxes per unit in 2022 dollars, which translates into $6,675 per unit in 2029, the first full year of operations after stabilization. These assumptions generate $2.6 million in total property tax revenue per year starting the first full year of operations after stabilization for the Revised Proposal across the City, County, and CRA18. Approximately $1.5 million of that revenue, including taxes levied by the County for its General Fund and Health Department, and the City’s General Fund, goes to the Clearwater Redevelopment Authority (CRA) until it sunsets in 2035. After 2035, CRA contributions revert to the respective taxing authorities unless the CRA is renewed. Table 7: Annual Property Tax Revenue (2022 $) Original Proposal Due Diligence Analysis19 Revised Proposal Residential Units 600 525 400 Total Mill Rate 20.3621 20.3621 20.3621 Total Property Tax per Unit $5,750 $5,750 $5,750 Total Annual Property Tax Revenue $3,440,000 $3,020,000 $2,300,000 Table 8: Annual Property Tax Revenue by Entity (2022 $)20 Original Proposal Due Diligence Analysis Revised Proposal Annual CRA Revenue (through 2035)21 $1,815,000 $1,585,000 $1,210,000 Annual City Tax Revenue (after 2035)22 $995,000 $870,000 $665,000 Annual County Tax Revenue (after 2035)23 $815,000 $715,000 $545,000 Annual School Board Revenue $1,010,000 $885,000 $675,000 Annual Other Tax Revenue $620,000 $550,000 $415,000 Total Annual Tax Revenue $3,440,000 $3,020,000 $2,300,000 Breakdown by Taxing Authority: County – General Fund $800,000 $705,000 $530,000 School Board $1,010,000 $885,000 $675,000 County – Health $15,000 $10,000 $10,000 City – General Fund $995,000 $870,000 $665,000 Other – Downtown Development $160,000 $145,000 $110,000 Other24 $460,000 $405,000 $310,000 Total Annual Tax Revenue $3,440,000 $3,020,000 $2,300,000 18 HR&A conducted an independent analysis of projected property tax revenue also using an income capitalization methodology and generated comparable projected property tax revenue. 19 For the Due Diligence Analysis, Gotham uses income approach to valuation until stabilization, after which a cost approach is used. Due to the established preference of the Pinellas County Property Appraiser for an income approach, this analysis assumes taxes consistent with income approach for duration of 30-year period for the Due Diligence Analysis. 20 Rounded to the nearest $5,000. 21 Revenue directed to the CRA through 2035 includes revenues for the City General Fund, County General Fund, and County Health Department. 22 City tax revenue after the CRA’s expiration in 2035 includes City General Fund revenue. 23 County tax revenue after the CRA’s expiration in 2035 includes County General Fund and County Health Department revenue. 24 Other includes revenues directed to the Pinellas County Planning Council, Emergency Medical Services, Southwest Florida Water Management District, Juvenile Welfare Board, and the Suncoast Transit Authority. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 19 Local Utility Taxes and Franchise Fees: Assuming an average monthly electric bill of $250 and an average monthly water bill of $100, HR&A estimated electric tax (10%), water tax (10%), and electric franchise fees (6%) generated by onsite residential units that would accrue to the City. For the 400-unit in the Revised Proposal, this amounts to $240,000 in annual utility taxes and fees. Table 9: Annual Utility Taxes and Franchise Fees Accruing to the City (2022 $) Original Proposal Due Diligence Analysis Revised Proposal Annual Electric Tax Revenue $180,000 $157,500 $120,000 Annual Water Tax Revenue $72,000 $63,000 $48,000 Annual Electric Franchise Revenue $108,000 $94,500 $72,000 Total Annual Utility Taxes and Fees $360,000 $315,000 $240,000 Economic Impact Comparison High-level economic impact projections for the construction and ongoing operations of the Clearwater Bluffs’ mixed-use multifamily development were developed for each program provided: the Original Proposal submission from July 2022, the Due Diligence Analysis from January 2023, and the Revised Proposal from April 2023 (focusing on the version with the reduced purchase price). HR&A utilized the IMpact analysis for PLANning (IMPLAN)25 input-output model for Pinellas County to develop estimated results from each proposal. This analysis does not examine economic impacts from the proposed redevelopment of the old Harborview site. HR&A’s analysis estimates the following economic impact of the Revised Proposal: • During the construction period, the Revised Proposal will provide about $198M in one-time economic activity, with an estimated 2,395 full time equivalent (FTE)26 jobs supported during the construction period. • Permanently, the Revised Proposal will provide about $6.8M of economic activity annually, with 57 permanent FTE jobs supported. The Revised Proposal shows a clear reduction in one-time jobs and economic impact compared to prior proposals, as shown in the tables below. This mostly stems from the reduction in construction costs, though the smaller unit count also has some effect. While the total labor income has decreased, the average income per worker remains constant across the proposals. 25 IMPLAN (IMpact Analysis for PLANning) is a widely recognized modeling tool developed at the University of Minnesota with the U.S. Forest Service’s Land Management Planning Unit. It generates estimates of economic output as well as secondary and induced employment and output based on a series of inputs. IMPLAN traces the pattern of commodity purchases and sales between industries that are associated with each dollar’s worth of a product or service sold to a customer, analyzing interactions among 546 industrial sectors for each region, individual counties or groups of counties, and each state in the nation. IMPLAN is used for the preparation of economic impact analyses by many public and private entities throughout the United States. The economic impact analysis estimates economic output, job creation, and wages/income paid to employees at the following levels: • Direct impacts: resulting from project construction and operations spending; • Multiplier impacts: o Indirect impacts: resulting from industry-to-industry transactions from project construction and operations; o Induced impacts: resulting from employee spending in the economy, including employees of directly and indirectly affected businesses. 26 Full-time equivalent employment is the number of full-time equivalent jobs, defined as total hours worked divided by average annual hours worked in full-time jobs. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 20 Table 10: One-Time Jobs Supported in Pinellas County (FTE) Category Original Proposal (June 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Direct Impact 2,745 2,690 1,710 Multiplier Impact 1,100 1,080 685 Total 3,845 3,770 2,395 Source: IMPLAN, HR&A Analysis Table 111: One-Time Economic Impact in Pinellas County (NPV) 27 Category Original Proposal (June 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Direct Impact $318,000,000 $312,000,000 $198,000,000 Multiplier Impact $200,000,000 $196,000,000 $124,000,000 Total $518,000,000 $508,000,000 $322,000,000 Source: IMPLAN, HR&A Analysis The Revised Proposal shows a similar number of FTE jobs supported by ongoing operations as resulting from the Due Diligence Analysis. Overall economic impact is relatively close between the two proposals, as is the total direct income. The relative small change despite the reduction in residential program is due to a larger retail program that creates 5 additional jobs from the Due Diligence Proposal. The modest differences in average income per worker are explained by the lower wages from retail jobs compared to residential-driven jobs. The Due Diligence Analysis provides the highest average income because it has the least retail square footage and thus the least retail jobs. In general, the proposals offer relatively close estimates for permanent, ongoing impact. Table 12: FTE Jobs Permanently Supported in Pinellas County Input Original Proposal (June 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Direct Jobs 88 56 57 Multiplier Jobs 42 30 28 Total 130 86 85 Source: IMPLAN, HR&A Analysis Table 13: Permanent Economic Impact in Pinellas County (Stabilized Year) 28 Input Original Proposal (June 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Direct Impact $10,400,000 $7,600,000 $6,800,000 Multiplier Impact $8,200,000 $5,800,000 $5,300,000 Total $18,600,000 $13,400,000 $12,100,000 Source: IMPLAN, HR&A Analysis 27 NPV stands for net present value. This table shows how much spending could occur in terms of today’s dollars. 28 Stabilized year refers to the year the property meets certain occupancy rates, usually at least 80%. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 21 Summary of Evaluation Gotham’s financial model inputs and assumptions are generally aligned with market trends, industry standards, and prior transactions we have analyzed. Based on this review, HR&A identified a financial gap of approximately $76.5 to $80.0 million under the Revised Proposal, given the variability identified in potential cap rate assumptions, in comparison with the approximate $80 million financial gap that Gotham identified. Table 14 on the following page presents a summary of the collective impacts of purchase price, subsidy requests, and fiscal revenue streams on the City’s balance sheet under the various iterations of Gotham’s proposals. HR&A estimates that the net financial impact to the City of the Original Proposal was north of $39.5 million, when accounting for the purchase price, the various subsidies and public support, and the revenue from property, local sales taxes and utility taxes over a 30-year period. This amount diminishes to between $13.7 and $18.1 million in the Revised Proposal assuming the payment of the purchase money mortgage, largely because of the reduced Purchase Price, the additional public subsidy request of $4 million, and the reduction in tax revenue from a smaller development program. Without the payment of the purchase money mortgage, it diminishes further to $7.3 million for both alternatives of the Revised Proposal. While the Revised Proposal still results in positive fiscal impact to the City over the long term, this is reduced by more than half from the Original Proposal, and much of the City revenue is backloaded, while subsidies are disbursed upfront. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 22 Table 14: Financial Offer Comparison (In Present Value Terms in Year 2023) Original Proposal (June 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Revised Proposal (April 2023 Model – Original Purchase Price) Purchase Price PV29 $14,515,977 $14,515,977 $6,364,880 $10,801,250 Subsidy (10-Year PV)30 Parking (Disbursed 2025) ($15,557,408) ($14,129,787) ($15,557,408) ($15,557,408) Permit and Impact Fees (Disbursed 2024) ($1,071,525) ($1,057,438) ($669,877) ($669,877) Additional City Subsidy (Disbursed 2024) $0 $0 ($3,770,384) ($3,770,384) Total City Subsidy ($16,628,933) ($15,187,225) ($19,997,668) ($19,997,668) Fiscal Impact to City (30-Year PV) CRA Revenue (through 2035) $11,514,881 $10,983,575 $7,148,634 $7,148,634 City Revenue (after 2035) $16,450,914 $15,150,757 $11,208,309 $11,208,309 Utility Taxes & Franchise Fees $10,485,437 $9,174,757 $6,990,291 $6,990,291 Estimated Sales Tax Reimbursement31 $3,129,789 $2,123,649 $1,986,068 $1,986,068 Total City and CRA Revenue $41,581,020 $37,432,739 $27,333,302 $27,333,302 Net Financial Impact to the City Impact without Purchase Money Mortgage Payment (30-Year NPV) $24,952,087 $22,245,513 $7,335,633 $7,335,633 Impact with Purchase Money Mortgage Payment (30-Year NPV) $39,468,064 $36,761,490 $13,700,514 $18,136,883 Based on this analysis, HR&A presents a series of recommendations following a risk assessment in the next section. 29 Assuming a 3% discount rate and 3% inflation. 30 In reviewing areas of potential subsidy, the City's $1 million contribution to the pedestrian bridge was considered. As the project represents both a developer contribution and City capital contribution towards an offsite public improvement, HR&A has elected to exclude the City's cost as public subsidy, as it is not a direct contribution to the private development project. 31 The City receives a reimbursement of State and County sales taxes. Working with the City of Clearwater, HR&A identified an assumption of a reasonable level of reimbursement, which is equivalent to 50% of the County’s annual sales tax revenue. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 23 Risk Assessment and Recommendations In response to the revised proposal from Gotham, the City has various alternatives. On one hand, the City could accept the proposal as is in the interest of project expediency and focus on introducing guardrails into a revised Development Agreement to minimize risks to the City moving forward. On the other hand, the City could present a counterproposal to Gotham that revises certain material terms of the Revised Proposal (e.g., number of units, purchase price, or amount of public subsidy), including seeking alternate arrangements to the Purchase Money Mortgage. If the City and Gotham failed to reach agreement under any of those two avenues, the City and Gotham could terminate their Development Agreement and the City could seek to re-procure the redevelopment opportunity. Summary of Alternatives This section provides a summary of the risks of each alternative and provides recommendations on a possible way forward. Table 15: Summary of Alternatives Considerations Accept Counterproposal Re-Procure Description City accepts revised proposal from Gotham and moves to producing an addendum to the Development Agreement that focuses on minimizing risks moving forward. City prepares a series of requests to Gotham to negotiate alterations to the proposal and works to execute an addendum to the Development Agreement. Should the City ultimately fail to reach agreement with Gotham on any of the other two alternatives, the City engages second place respondent Elevate Clearwater and/or opens new procurement process to find a new developer. Considerations Timeline Accepting the revised proposal from Gotham and working on an addendum to the Development Agreement accordingly should present the fastest timeline. The renegotiation of a proposal and production of an addendum to the Development Agreement could take between two to three months, depending on the substance of the counterproposal from the City. Engaging Elevate Clearwater and/or reopening a procurement process could add another 6 to 18 months to the process before a new Development Agreement is fully negotiated and executed and a Due Diligence period is concluded. Financial The net financial impact to the City of this proposal is $13.7- $18.1 million, per analysis presented in prior sections. The main issue with this option is that the City would be disbursing close to $22 million upfront in the form of parking, and gap subsidy, and only accruing financial benefits over time, with a payment for the site that could not occur until 5 to 10 years from the moment Through the negotiation of certain elements of the revised proposal from Gotham, the City could aim to increase the present value of the purchase price and/or reduce the subsidy request, resulting in a net financial benefit to the City greater than the current $13.7- $18.1 million. This could be achieved by renegotiating the timing of the purchase price payments from Gotham, which The financial impact on the City under this scenario is unknown. While the presence of the new Coachman Park and its early success improves the marketability of these sites, the financial challenges facing the project are real and unlikely to be solved by another development partner, as they are not unique circumstances to Gotham or their concept but rather broader real estate HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 24 Considerations Accept Counterproposal Re-Procure of transaction. As identified by City staff, the structure of the purchase money mortgage may carry meaningful risk of nonpayment. The lack of commitment to a minimum hold period also increases repayment risk, so it is important that the City formalizes Gotham’s commitment to absorbing construction cost risks into any revised version of the development agreement. could include a payment installment strategy. HR&A’s analysis suggests that receiving payment sooner could reduce overall risk to the City, though comes at a cost to Gotham. market conditions. The City could wait and reprocure in the coming months or years, but there is no clarity as to whether or when construction costs and interest rates will fall relative to rents. In fact, the robust regional pipeline for residential development in the region, with 18,500 units under construction in Tampa and 2,500 units in St. Pete, and large-scale projects in planning such as the Historic Gas Plant District in St Pete and Water Street Phase 2 and GasWorx in Tampa, suggest significant housing supply coming online, keeping up with population growth. Economic Development The revised proposal will result in $12.1 million in total permanent impact, creating 85 permanent full-time-equivalent jobs across the region. The construction period will create 2,395 jobs during that time, with a total one-time impact of more than $322 million. The City could explore with Gotham the possibility of increasing the number of residential units from 400 closer to 500 in the Development Agreement, which would result in a greater one-time and ongoing economic impact than the one of the revised proposal, but it is unlikely to exceed that of the original proposal. This would suggest a taller building, and also may drive other cost implications that impact financial performance, such as a longer absorption period (see note at right on the size of the project relative to comparables in the market) and carry additional project viability risks. The degree of economic activity of a new proposal from another developer is unknown. It is possible that the residential program in a revised proposal would not exceed the one derived from the 400 units Gotham proposes, given high marks in the region, like the Heron in Tampa are already 419 units, and exceeding that market presents uncertainties with absorption. Political and Reputational The current proposal is a departure from the number of units in the Referendum and the Development Agreement, which may have implications for public perception of the project and the City. The renegotiation of Gotham’s proposal could show the City is being thorough in the evaluation of project risks and feasibility and possibly mitigate any negative public perceptions of the outcomes versus stated goals under the referendum. Delays in the project pre- development stages could present a political risk to Council and City staff. Inversely, they could also be seen as the City fulfilling its fiduciary duty if renegotiation is not successful. There is risk to the future attraction of developers to the Clearwater market if the HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 25 Considerations Accept Counterproposal Re-Procure market perceives this outcome negatively, having completed two rounds of solicitation. Downtown Clearwater is already seen by the market as a challenging place to develop. Summary of Main Risks • The City would be disbursing close to $22 million upfront in the form of parking, bridge, and gap subsidy, and only accruing financial benefits over time, with a payment for the site that could not occur until 10+ years from the moment of transaction with risk to the City for nonpayment. • Construction costs could be higher than what Gotham is assuming, further challenging project feasibility and this risk should be fully transferred to Gotham. • The public opinion on the deviation from the referendum unit count and Development Agreement could have political and/or reputational implications for the City and the project. • In the renegotiation of the proposal, the City should establish guardrails and conditions that protect it from any future revisions from Gotham to returns, programs, and assumptions. • A renegotiation with Gotham could be unsuccessful and the City could find itself having to decide between the other two alternatives in a few months. • In the renegotiation of the proposal, the City should establish guardrails and conditions that protect it from any future revisions from Gotham to returns, programs, and assumptions. • Given the current development climate, there is a great degree of uncertainty about what the outcome of a re- procurement would be both in terms of financial compensation to the City as well as the development program. The City would embark into a 6- to 18- month process without a strong hypothesis on the outcome. • Future attraction of developers to the Clearwater market could be challenging if the market perceives this outcome negatively, having completed two rounds of solicitation. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 26 Summary of Risks and Recommendations Given the evaluation and analysis presented by HR&A above, our recommendation to the City would be to prepare and negotiate a counterproposal with Gotham, focused on a limited set of terms. Building on a long-term coordinated plan to spur activity in Clearwater’s downtown, the redevelopment of the old City Hall site represents an important part of that effort, and therefore warrants further efforts by the City to explore if satisfactory terms can be reached with Gotham. The process to arrive at an addendum to the Development Agreement could take between two to three months. At the end of that process, the City could still decide to re-procure the site if the terms of the revised Agreement were not acceptable. The negotiation with Gotham should be centered around minimizing three main areas of risk for the City: 1. Financial Gap and Timing of Payment: Both approaches proposed by Gotham involve a purchase money mortgage, which defers payment to the City to 5 and 10 years, respectively. Under these two approaches, the City would be upfronting all subsidies, including subsidies for the cost of parking, reimbursement of permit and impact fees, and an additional $4 million to fill the financial gap. The City would only receive payment from Gotham up to until 10 years later. In addition, the purchase money mortgage concept introduces the risk of non-payment if the developer were to default over the 10-year period and/or if there were more senior lenders before the City that Gotham needed to make whole, and was concluded as unacceptable by City staff for that reason. While it is perhaps viable to manage risk around Gotham’s sale of the property to an unknown third party, by requiring full payment at project sale or refinancing, such stipulations does not control for situations whereby Gotham finds itself under financial hardship and/or defaults on the payment. Risks associated with the financial gap and timing of payment can be mitigated by a variety of options, including: a. The City could consider reducing the purchase price if justified based on the appraisal of the City Hall site for a 400-unit single tower project, given the prior appraisal’s assumption of condo use at a larger scale of development. b. The City could investigate varying program mixes, including the addition of condos and further reductions in density, to help close the feasibility gap. Further reductions in density may require soliciting new approvals from the public due to the acceptance of the originally proposed project by voters in November 2022. While reducing the financial gap, further reductions in density would also reduce fiscal returns. c. The City and Gotham could explore an alternative form of conveyance to alleviate some of Gotham’s pressure to disburse for the purchase of the site upfront in full at the moment of close, while ensuring the City captures the upside that may result from public investment in Downtown and a changing market in the mid- and long-term. The City should explore internally and with Gotham the possibility of entering into a purchase and development agreement with phased payments over the short- and mid-term, participation and claw back clauses. While we understand a long-term ground lease would require a new referendum, the purchase and development agreement could be designed in a way that replicates synthetically the risk profile and cash flows of a ground lease. This could also help address the lack of a commitment to a minimum hold period. HR&A and the City team also engaged Gotham on potential additional options, which were deemed not satisfactory or of limited benefit. These included reducing the amount of residential parking and/or moving some of the parking spaces offsite or above ground, as well as shared and dedicated parking HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 27 arrangements with Gotham on the adjacent pipeline 550-space public garage at the site formerly owned by Peace Memorial Church. 2. Re-negotiation risk: To avoid the risk of project delay through subsequent rounds of negotiations, the City and Gotham should see the agreement reached as part of the negotiation of the Revised Proposal from Gotham as the final terms of the transaction. With the due diligence period completed, the amended Development Agreement should clearly establish that Gotham will be responsible and absorb any real estate market, financial, and construction risks moving forward. Any unfavorable deviations in those areas should not form the basis for a request for additional public subsidy, a reduction or meaningful alteration of the program in the Revised Proposal, or a concept with quality standards and/or designs that deviate from those discussed and agreed with the City. As of communications during a meeting on Tuesday, August 29 and a subsequent email communication dated Friday, September 22, Gotham has agreed that once the due diligence period is over, they will not come back to the City for further negotiations. As part of this, it is particularly important to offer the City protection in case construction costs were to depart from the current estimate presented by Gotham, given the differences of opinion on costing between Dharam and Coastal. The City should find ways to reflect in the revised Development Agreement that none of the construction cost risk can be transferred to the City, via claims for unforeseen market conditions and escalation, unforeseen ground conditions, or similar findings. As of communications on August 29, 2023, Gotham has agreed to assume all construction cost risk, and closing requirements will include provision of a Guaranteed Maximum Price (GMP) contract from their construction firm, among other items. The City should also seek to establish in the addenda to the Development Agreement that the current proposal from DeNunzio for the Harborview site is also a best-and-final offer and that the developer should absorb any real estate market, financial, and construction risks on that site moving forward. 3. Project completion risk: The City should seek to establish firm construction commencement and completion deadlines in the amended Development Agreement, particularly in the event that Gotham does not pay the City for the purchase of the site upfront, to minimize the risk of Gotham “sitting” on a vacant site waiting for the market to turn, a situation where the City would have little to no recourse under current terms. Gotham has provided closing conditions it would agree to, including a completion guarantee that they will need to provide to their construction lender, and have agreed to have a reputable GMP and be fully entitled and permitted for development. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 28 Appendices A. Information Reviewed and Received HR&A received materials from Gotham related to the original proposal and 525-unit program (called “Original Program Materials,” as well as materials for the 400-unit program (called “Revised Program Materials”). Materials received are shown below for each program. Table 16: Original Program Materials Material Author Type of Material Date Submitted Due Diligence Analysis City Hall Site 1.3.2023 Gotham Financial Model 1.3.23 Civil Due Diligence Estimates Stantec Civil 12.9.22 Geotechnical Engineering Report Universal Engineering Sciences, Inc. Geotechnical 1.6.23 ROM Estimates Coastal Hard Costs 7.15.22 Probable Project Costs Stantec Hard Costs 7.5.22 Due Diligence Project Costs Coastal Hard Costs 12.22.22 Proposal Response for Preconstruction Services Moss Hard Costs 12.22.22 Insurance Budget Custom House Insurance 12.12.22 525-unit Highrise Stabilized Model Greystar Operating Expenses NA Clearwater Market Analysis Gensler Residential Market Study 5.12.22 The Bluffs Complete Proposal Gotham RFP Submission 6.9.22 Old City Hall Site Survey City Title and Survey 11.7.22 City Hall site title Chicago Title Insurance Company Title and Survey NA Development Agreement Pinellas County Development Agreement 7.28.22 HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 29 Table 17: Revised Program Materials Material Author Type of Material Date Submitted City Hall Site 4.17.23 Reduced Purchase Price Gotham Financial Model 4.17.23 City Hall Site 4.17.23 Original Purchase Price Gotham Financial Model 4.17.23 Updated Architectural Plan Behar Peteranecz Geotechnical 3.30.23 Residential Tower ROM Coastal Hard Costs 3.13.22 Singel Tower Order of Magnitude Estimate Summary Moss Hard Costs 3.3.23 400 unit Highrise Stabilized Model Greystar Insurance NA Clearwater Presentation 4.17.23 Gotham Presentation to the City 4.17.23 Clearwater Market Analysis Update Gensler Residential Market Study 12.20.22 B. Economic Impact Sources/Methodology HR&A utilized the Impact analysis for PLANning (IMPLAN) input-output model for Pinellas County, created by MIG, Inc. (formerly Minnesota IMPLAN Group, Inc.), to analyze the project’s economic impacts from both construction and annual ongoing operations at full development buildout. For each dollar of spending in the economy, IMPLAN traces the pattern of commodity purchases and sales between 546 industries within the specified geography. The IMPLAN model is used to conduct economic impact analyses by leading public and private sector organizations across the United States. The economic impact analysis estimates economic output, job creation, and wages/income paid to employees at the following levels: • Direct impacts: resulting from project construction and operations spending; • Multiplier impacts: o Indirect impacts: resulting from industry-to-industry transactions from project construction and operations; o Induced impacts: resulting from employee spending in the economy, including employees of directly and indirectly affected businesses. HR&A conducted an economic impact analysis measuring the above impacts of future development at the Bluffs for each proposal. HR&A also examined the fiscal impact of the development. IMPLAN inputs used are below. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 30 Table 18: IMPLAN Inputs for Annual Recurring Economic Impacts from Operations Category Code IMPLAN Description Residential 61 Maintenance and repair construction of residential structures Retail 412 Retail–- Miscellaneous store retailers Restaurant 509 Full-service restaurants Table 19: IMPLAN Inputs for One-Time Economic Impacts from Construction Category Code IMPLAN Description Construction 58 Construction of new multifamily residential structures One-Time Impacts from Construction HR&A developed a series of assumptions to model the one-time economic impacts of construction of each of the three proposals. The program mix for each proposal and their proposed construction costs are presented below. Table 20: Program Mix and Construction Costs Input Original Proposal (June 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Residential Units 600 525 400 Retail SF 25,000 14,000 15,900 Parking Spaces 600 548 440 Construction Cost (excl. land cost) $318,044,952 $311,590,899 $197,774,515 Source: Gotham Based on the information above, and using a set of IMPLAN inputs, HR&A estimated direct and multiplier impacts on employment, economic spending, and personal income attributable to construction of the project. These impacts will only be felt during the construction period and will accrue across Pinellas County, given the mobility of workers from their homes to their employment locations. Some of this activity will directly benefit Clearwater residents. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 31 Table 21: One-Time Labor Income in Pinellas County32 Category Original Proposal (June 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Annual Direct Impact $163,000,000 $159,000,000 $101,000,000 Average Direct Income/Worker $59,000 $59,000 $59,000 Annual Multiplier Impact $62,000,000 $61,000,000 $39,000,000 Average Multiplier Income/Worker $57,000 $57,000 $57,000 Total $225,000,000 $220,000,000 $140,000,000 Source: IMPLAN, HR&A Analysis Permanent Annual Impacts from Operations HR&A used the proposed vertical development program mix and estimates of employee density specific to use (see below) to support estimates of retail and residential employment and impact. Table 22: Impact Assumptions Assumptions Residential 25 units per residential worker Retail $679 retail spending per square foot Source: HR&A Analysis Deriving IMPLAN inputs from the information above, HR&A estimated direct and multiplier impacts (indirect and induced impacts) across Pinellas County based on the proposals for the City Hall Site. HR&A looked at impacts on employment, economic spending, and personal income attributable to the ongoing operations of the project. Table 23: Summary of Labor Income from Operations in Pinellas County (Stabilized Year) Category Original Proposal (June 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Direct Income $3,500,000 $2,400,000 $2,300,000 Direct Income/Worker $40,000 $43,000 $41,000 Multiplier Income $2,500,000 $1,800,000 $1,600,000 Multiplier Income/Worker $59,000 $59,000 $58,000 Total $6,000,000 $4,200,000 $3,900,000 Source: IMPLAN, HR&A Analysis 32 Labor income includes all forms of employment income, including employee compensation (wages, salaries, and benefits) and proprietor income. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 32 C. Fiscal Impact Sources/Methodology In addition to direct spending at retail onsite, HR&A estimated retail spending offsite by residents of the project at nearby retail establishments in Downtown Clearwater, including Cleveland Street retail. Based on household spending patterns for households located within a 3-mile radius of the site, HR&A estimated that the average household would spend approximately $25,000 annually on retail goods, and that 78% of that spending would take place locally.33 In turn, this would generate $400-$600,000 in sales tax revenue. Table 24: Sales Tax Revenue from Indirect Offsite Spending (Stabilized Year) Original Proposal (June 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Offsite Retail Spending $7,830,000 $6,650,000 $4,950,000 State Sales Tax (6%) $470,000 $400,000 $300,000 Local Sales Tax (1%) $160,000 $130,000 $100,000 Total $630,000 $530,000 $400,000 Property Tax: Property tax revenue generated by new development is estimated based on an income capitalization methodology. This methodology closely aligns with Gotham’s methodology as well as the approach favored by the Pinellas County Appraiser’s Office. This methodology generates $5,750 in property taxes per unit in 2022 dollars, which translates into $6,675 per unit in 2029, the first full year of operations after stabilization. Table 25: Annual Property Tax Revenue (2022 $)34 Original Proposal (June 2022) Due Diligence Analysis35 (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Residential Units 600 525 400 Total Mill Rate 20.3621 20.3621 20.3621 Total Property Tax per Unit $5,750 $5,750 $5,750 Annual Property Tax Breakdown by Authority County – General Fund $800,000 $705,000 $530,000 School Board $1,010,000 $885,000 $675,000 County – Health $15,000 $10,000 $10,000 City – General Fund $995,000 $870,000 $665,000 Other – Downtown Development $160,000 $145,000 $110,000 Other36 $460,000 $405,000 $310,000 Total Annual Property Tax Revenue $3,440,000 $3,020,000 $2,300,000 33 ESRI Retail Marketplace Profile and Household Budget Expenditures, 2023. 34 Rounded to the nearest $5,000. 35 For the Due Diligence Analysis, Gotham uses income approach to valuation until stabilization, after which a cost approach is used. Due to the established preference of the Pinellas County Property Appraiser for an income approach, this analysis assumes taxes consistent with income approach for duration of 30-year period for the Due Diligence Analysis. 36 Other includes revenues directed to the Pinellas County Planning Council, Emergency Medical Services, Southwest Florida Water Management District, Juvenile Welfare Board, and the Suncoast Transit Authority. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 33 Annual Property Tax Breakdown by Entity Annual CRA Revenue (through 2035)37 $1,815,000 $1,585,000 $1,210,000 Annual City Tax Revenue (after 2035)38 $995,000 $870,000 $665,000 Annual County Tax Revenue (after 2035)39 $815,000 $715,000 $545,000 Annual School Board Revenue $1,010,000 $885,000 $675,000 Annual Other Tax Revenue $620,000 $550,000 $415,000 Total Annual Property Tax Revenue $3,450,000 $3,020,000 $2,300,000 HR&A conducted an independent analysis of project property tax impacts, based on an income methodology. HR&A used the same assumptions for this analysis with the exception of two: 1) cap rate, for which HR&A used a 5.00% assumption, rather than Gotham’s 5.25%, based on the supposition that cap rates could decrease in the Clearwater market over the next several years, before the property is sold, and 2) operating expenses, for which a $7,000 per unit expense assumption. Based on this analysis, HR&A’s estimated property tax impacts were $7,257 per unit, slightly higher than Gotham’s.40 Local Utility Taxes and Franchise Fees: To calculate water tax, electric tax, and electric franchise fee revenue, HR&A used monthly utility bill assumptions sourced from the City, including $250 for electricity and $100 for water. Table 26: Annual Utility Fee and Tax Revenue Original Proposal Due Diligence Analysis Revised Proposal Residential Units 600 525 400 Estimated Annual Fee per Unit41 Electric Tax (10%) $300 Water Tax (10%) $120 Electric Franchise Fee (6%) $180 Total Utility Fee and Tax Revenue $360,000 $315,000 $240,000 37 Revenue directed to the CRA through 2035 includes revenues for the City General Fund, County General Fund, and County Health Department. 38 City tax revenue after the CRA’s expiration in 2035 includes City General Fund revenue. 39 County tax revenue after the CRA’s expiration in 2035 includes County General Fund and County Health Department revenue. 40 HR&A’s analysis of Gotham’s model for the January 2023 Due Diligence Analysis identifies that the model mistakenly shows a cost approach used after year 2028 to estimate property taxes, instead of the income approach used in years 2022 through 2027. 41 City of Clearwater. HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 34 D. Comparison of Inputs and Assumptions Across Proposals Table 27: Comparison of Program and Timing Across Proposals Program Assumption Original Proposal (July 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Residential (SF) 540,000 650,470 466,784 Retail/Commercial (SF) 25,000 14,000 15,900 Parking (SF) 210,000 231,930 135,630 Total SF 775,000 1,080,097 689,424 Residential Units 600 525 400 Parking Spaces 600 spaces 548 spaces 440 spaces Parking Ratio 1.0 1.0 1.1 Stories 25 stories on a shared podium deck 26 stories 28 stories Construction Period 30 months 36 months 27 months Hold Period (Post-Stabilization) 0 months 0 months 80 months Total Project Duration 6.1 years 6.0 years 11.8 years Table 28: Comparison of Financial Uses Across Proposals Original Proposal (July 2022) Development Agreement (August 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Uses Acquisition Costs $15,400,000 - $15,400,000 $7,600,000 Hard Costs $284,680,200 - $277,782,500 $175,040,000 Soft Costs $39,947,962 - $32,680,509 $22,528,229 Financing Costs $5,451,264 - $2,964,111 $2,192,260 Interest Reserve $11,529,911 - $11,035,558 $5,508,116 Operating Deficit $1,426,126 - $727,890 $206,687 Total Uses $350,426,126 - $340,590,568 $213,074,892 HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 35 Table 29: Comparison of Financial Sources Across Proposals Original Proposal (June 2022) Development Agreement (August 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Sources Debt $227,776,982 - $204,354,341 $117,191,190 City Funds – Parking + Other - $17M (minus $30,000/space if less than 600 spaces are delivered $15,440,000 $21,000,000 (including the additional $4M ask) City Funds – Bridge - Up to $2M $1,000,000 $1,000,000 City Funds – Permit + Impact Fees - CRA covers all fees $1,121,836 $952,311 Purchase Money Mortgage - - - $7,600,000 Equity $122,649,144 - $118,674,391 $65,331,390 Total Sources $350,426,126 - $340,590,568 $213,074,892 Project Financing: Key differences in Gotham’s financial assumptions among the three proposals include increased cap rates and interest rates, decreased selling costs, and a lower LTC ratio. The Revised Proposal includes an assumed refinancing in Year 6. Table 30: Proposal Comparison–- Financing Assumptions Original Proposal (June 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced Purchase Price) Disposition Exit Cap Rate Retail + Parking Not provided 5.00% 5.25% Exit Cap Rate Residential Not provided 5.00% 5.25% Selling Costs Not provided 2.00% 1.50% Financing Construction Financing LTC 65% 60% 55% Construction Financing Interest 5.00% 6.50% 6.50% Permanent Financing Interest Not provided 5.00% 5.00% Refinance Year NA NA Year 6 (Upon stabilization) HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 36 Operations, Hold Period, and Exit Strategy: Gotham is assuming a shorter construction period and a faster lease-up in its Revised Proposal, followed by a refinancing after stabilization, after which it will hold the property for 6.5 years. Gotham is required, per the Development Agreement, to not dispose of the property until the City Hall or Harborview project is substantially complete. Gotham underwrote a hold period of at least 10 years, and they confirmed that they intend to adhere to this hold to maximize the 10-year benefit of the project’s location in an Opportunity Zone. Gotham plans to use Greystar or an equivalent reputable property manager to manage the property while they remain as property owner and asset manager. Table 31: Proposal Comparison–- Timeline Timing Original Proposal (June 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Reduced PP) Pre-Closing Period 24 months 24 months 20 months Pre-Construction Period 0 months 0 months 0 months Construction Duration 30 months 36 months 27 months Time Until Stabilization 20 months 20 months 13 months Months from Lease-Up to Refi 0 months 3 months 3 months Hold Period (Post-Stabilization) 0 months 0 months 80 months Total Project Duration 6.1 years 7.0 years 11.8 years Residential Uses: In addition to reducing the overall number of residential units down to 400, the Revised Proposal does not include any affordable units. The Original Proposal and the Development Agreement mention the potential allocation of 10% of apartments as workforce housing for residents earning up to 120% of area median income (AMI), to be provided at the discretion of the Developer. Affordable units are not included in the Original Proposal, the January 2023 Due Diligence Analysis, or in the April 2023 Revised Proposal. Without designated workforce units, units are unaffordable for those making 120% of the Pinellas County AMI of $89,400, requiring 36% of annual income for rent. HR&A understands that the City is not pursuing the inclusion of affordable units at this time. Gotham has confirmed that they do not have interest in using the Live Local Program and per HR&A’s independent analysis, it appears that there would be no financial benefit to pursuing the program given the rents and real estate taxes Gotham is projecting in market-rate units. Parking Uses: Gotham’s approach to parking shifted from the Due Diligence Analysis, in which they proposed 548 spaces in a parking garage with three underground levels, to the Revised Proposal, in which they provide 440 spaces in a garage with one underground level and one ground-floor podium level. Underground parking is important for this site due to the desire to keep viewsheds and provide connectivity from Osceola Street to the park. The Development Agreement allocated a total of $22 million in parking subsidy (or $30,000 per space), with $17 million for the City Hall site, roughly $15 million of which was used in the Due Diligence Analysis. The Revised Proposal requests the same level of subsidy for parking but with a decrease in the number of parking spaces provided, increasing the requested subsidy per parking space. Public Realm: The Original Proposal articulated an approach to the project’s urban design and public realm plan, including plans for a transition to Coachman Park and to the street. There are two key public offsite improvements related to the City Hall Site: a. South Bluff Walk to integrate the City Hall site with Coachman Park (1.54 Acres) b. Pedestrian bridge spanning Cleveland Street and connecting the North and South Bluff Walks (16 ft wide, 550 ft long) In the Original Proposal, Stantec estimated the cost of improvements to the public open space within the City Hall Site at $3.4 million, including $400,000 for site preparation and $3 million for on-grade site improvements, HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 37 including site furnishings, retaining/seating walls, pedestrian lighting, landscaping, hardscaping, art, and signage. The Revised Proposal does not include an updated estimate of public realm improvement costs. The Revised Proposal maintains the $1 million subsidy request to fund the construction of a pedestrian bridge connecting the City Hall and Harborview sites. However, the cost of pedestrian bridge construction is not broken out in the construction cost estimates provided. Residential Operating Assumptions: Between the Due Diligence Analysis and the Revised Proposal, the residential vacancy factor increased by 50 basis points to 6%, which was consistent with the vacancy assumption in the Original Proposal from July 2022. Residential rent per month per SF of $3.61 remained largely unchanged from the Due Diligence Analysis to the Revised Proposal, but it is still below the $3.75 assumption in the Original Proposal. HR&A investigated the assumed decrease in residential rents by looking at rents per square foot for comparable properties in Clearwater, Tampa, and St. Petersburg using CoStar. It is expected that this project will represent a more premium product than currently exists in Clearwater, where there are few recent high-end multifamily rental properties and, therefore no appropriate local comparable projects. The two existing comparable properties, the Apex and the Nolen, have a weighted average rent per square foot of $2.17. Table 32: Clearwater Comparable Multifamily Properties Building Name Address City Units Stories Year Built Effective Rent PSF Vacancy 1100 Apex 1100 Cleveland St Clearwater 134 15 2019 $2.15 4% The Nolen 949 Cleveland St Clearwater 240 4 2017 $2.19 13% Weighted Average $2.17 Tampa and St. Petersburg have a greater number of comparable multifamily rental properties. Premium product in Tampa has a weighted average rent per SF of $4.30, while St. Petersburg has rents of $3.50 per SF. Table 33: Tampa Comparable Multifamily Properties Building Name Address City Units Stories Year Built Effective Rent PSF Vacancy The Mav Channelside 601 N 12th St Tampa 324 19 2022 $3.44 50% Heron 815 Water St Tampa 419 26 2021 $4.70 20% Cora 1011 E. Cumberland Ave Tampa 388 23 2021 $4.03 15% Asher 1050 Water St Tampa 393 22 2022 $4.30 7% Weighted Average $4.30 Table 34: St. Petersburg Comparable Multifamily Properties Building Name Address City Units Stories Year Built Effective Rent PSF Vacancy Ascent St. Petersburg 225 1st Ave N St. Petersburg 357 36 2023 $3.76 59% EVO 334 2nd Ave S St. Petersburg 220 24 2023 $3.58 59% Camden Central 855 Central Ave St. Petersburg 368 15 2019 $3.48 3% Waterview Echelon City Center 100 Main St N St. Petersburg 226 15 2021 $2.81 8% Weighted Average $3.50 HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 38 Table 35: Proposal Comparison–- Return Metrics Original Proposal (June 2022) Due Diligence Analysis (Jan 2023 Model) Revised Proposal (April 2023 Model – Original Purchase Price) Revised Proposal (April 2023 Model – Reduced Purchase Price) Target Return (YTC) 5.50% 6.00% 6.00% 6.00% Modeled Returns IRR 17.00% - 6.00% 14.20% 14.30% YTC 5.53% 4.52% 5.97% 5.87% E. Research notes on precedent for public subsidy Public-private partnerships incentivizing the development of desired land uses and public infrastructure are common practices nationwide to promote economic development and attainable housing. In Florida, public-private partnerships and public subsidies are used to accomplish a variety of economic development goals, including the development of desired infrastructure, affordable units, and parking spaces. In Tampa in 2017, a $21.5M tax-exempt bond was issued to the Tampa Heights Community Development District.42 This bond was intended to pay for infrastructure in the new 43-acre waterfront mixed-use community being built around the historic Armature Works building. This includes the construction of new roads, sidewalks, the Tampa Riverwalk, parking garages, and other infrastructure. The bond funds are backed by tax increment financing through the City of Tampa. Public-private transactions in St. Petersburg have been focused on increasing the number of public parking spaces while also encouraging the construction of Class A office space or workforce housing. In the last few years, the City of St. Petersburg has agreed to pay for public parking spaces in 2 mixed-use projects that also align with a citywide goal to increase high-quality office square footage. In the first, a hotel-office project at 450 1st Avenue North, the City of St. Petersburg will pay up to $28.7K/parking space for a minimum of 240 public parking spaces that the City will lease long-term. The City of St Petersburg will also pay up to $20K/parking space for a minimum of 400 public parking spaces in a project with Edge Central Development Partners. That project includes at least 100K square feet of Class A office space and at least 30 workforce housing units. The City has agreed to provide a purchase money mortgage for the portion of the property with the workforce housing so that a promissory note for $2M can be secured. Gotham has, in the past, relied on public support in projects in the New York Metro area. One example Gotham provided is a $150M+ project in the village of Mount Kisco, Westchester County, NY. The project includes approximately 25,000 sf of retail, 750 structured parking spaces, and 220 housing units, 7% of which are set aside for households at 90% AMI of the Westchester County median income. To achieve this level of below-market homes offered, in addition to the significant number of parking spaces desired, in 2020, the Westchester County Industrial Development Agency approved financial incentives of about $40M, including a payment in lieu of taxes (PILOT), sales tax exemption on building materials, and a mortgage recording tax exemption. This project is still currently under discussion, as a proposal in 2021 was initially rejected by the Mount Kisco Village Board due to concerns over density and parking.43 42 “The Heights Receives $21.5 million in funding,” Armature Works (2017). “Tampa Heights project gets $231.5 million in funding,” Tampa Bay Times (2017). 43 ”Mount Kisco Says No to Reworked Kirby Commons Development Plan,” The Examiner News (August 2021). HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 39 Given the relatively untested nature of mixed-use and multifamily development in Downtown Clearwater, it is not unreasonable to expect the City to provide some type of support to the Bluff Sites. F. Research notes on the current development climate in the region The Bluffs is not the only project in the region experiencing delays due to unfavorable changes to market conditions and hard cost inflation. The second phase of the Camden Pier District apartments in St. Petersburg has recently been indefinitely put on hold.44 The original aim was for Camden to build a 95-unit, 18-story multifamily development next to its adjacent development, the 357-unit Camden Pier District Apartments. The existing apartments currently have a 97% occupancy rate, with average rental rates of $3,465. Despite these positive numbers, the hard costs for the 95-unit building are currently too high for Camden to commit to a timeline. A Dunedin mixed-use project is also currently on hold due to increased costs.45 This project was set to offer 90 residential units, restaurant/retail spaces, and a 79-room hotel. However, increasing construction and borrowing costs have made the project unfeasible. According to a July 2023 article, the developer received new April 2023 bids from two national multifamily construction firms that were very similar to each other but more than double the budget. The local developer is now working with the City of Dunedin to provide an updated proposal. 44 Brezina, Veronica, “Inflation puts 18-story tower project on hold,” St. Petersburg Catalyst (August 2023). 45 Willimas, Breanne, “Dunedin mixed-use development ‘unviable’ as costs rise”, Tampa Bay Business Journal (July 2023). HR&A Advisors, Inc. Clearwater Bluff Sites City Hall Proposal Evaluation | 40 General and Limiting Conditions Any person who relies on or otherwise uses this Study is required to have first read, understood, and accepted the following disclosures, limitations, and disclaimers and will, by reason of such reliance or other use, be deemed to have read, understood, and accepted the same. 1. HR&A Advisors, Inc. (HR&A) has been engaged and compensated by the City of Clearwater to prepare this Study. In preparing this Study, HR&A has used its independent professional judgment and skills in good faith, subject to the limitations, disclosures, and disclaimers herein. 2. This Study is based on estimates, assumptions, and other information developed by HR&A, Gotham/DNG, and other third-party consultants. Every reasonable effort has been made to ensure that the data contained in this Study are accurate as of the date of this Study; however, factors exist that are outside the control of HR&A and that may affect the estimates and/or projections noted herein. HR&A neither guarantees any results nor takes responsibility for their actual achievement or continuing applicability, as actual outcomes will depend on future events and circumstances beyond HR&A’s control. 3. HR&A reviewed the information and projections provided by third parties using its independent professional judgment and skills in good faith but assumes no liability resulting from errors, omissions, or any other inaccuracies with respect to the information provided by such third parties referenced in this Study. 4. 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By use of this Study, each party that uses this Study agrees to be bound by all of the General and Limiting Conditions stated herein. 1 FOURTH AMENDMENT TO CONTRACT FOR PURCHASE OF REAL PROPERTY This FOURTH AMENDMENT TO CONTRACT FOR PURCHASE REAL PROPERTY (this “Amendment”) is entered into this _____ day of January, 2024, by and among THE CITY OF CLEARWATER, FLORIDA, a Municipal Corporation of the State of Florida (“Seller”), and The DeNunzio Group, LLC, a Florida limited liability company ("DeNunzio"), and Gotham Property Acquisitions, LLC, a New York limited liability company (“Gotham”) (DeNunzio and Gotham shall be collectively referred to as “Purchaser”). WHEREAS, Seller and Purchaser entered into that certain Contract for Purchase of Real Property with an effective date of August 15, 2022, as amended by that certain First Amendment to Contract for Purchase Real Property with an effective date of January 9, 2023, as amended by that certain Second Amendment to Contract for Purchase Real Property with an effective date of August 22, 2023, and as further amended by that certain Third Amendment to Contract for Purchase Real Estate with an effective date of October 16, 2023 (collectively, the “Agreement”), concerning the sale from Seller to Purchaser of the property known as the “Old City Hall Site”, as more particularly defined in the Agreement and Exhibit “A” attached hereto; and WHEREAS, Seller and Purchaser desire to amend the Agreement as more particularly set forth herein. NOW, THEREFORE, for and in consideration of the sum of $1.00 and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, Purchaser and Seller hereby agree as follows: 1. Capitalized Terms. All capitalized terms used but not defined herein shall have the meanings ascribed to them in the Agreement. 2. Purchase Price. Sections 2 and 4 of the Agreement are hereby amended so that the Purchase Price shall be Three Million Four Hundred Fifty Thousand Dollars ($3,450,000.00). 3. Conditions Precedent to Buyer’s and Seller’s Obligation to Close. Sections 39 and 40 of the Agreement shall be amended by adding a condition that the Development Agreement as defined in Section 9 of the Agreement shall have been amended to be consistent with this Amendment and shall also be amended to address the following prior to Closing: a. To revise the City Hall Project (as defined in the Development Agreement) to a multifamily residential project containing 400 dwelling units in a single tower; b. To revise the minimum required parking ratio to 1:1:1 for 440 parking spaces; c. To revise the City Hall Project requirements to provide that 50% of the parking spaces may be above-ground but not visible from Osceola Avenue (but may be visible from Coachman Park); 2 d. To clarify that the rate and schedule of impact fees in effect upon the date of execution of the original Development Agreement will apply to the City Hall Project and the Harborview Project (as defined in the Development Agreement); e. To revise the purchase price for the City Hall Site (as defined in the Development Agreement) to Three Million Four Hundred Fifty and No/100 Thousand Dollars ($3,450.000.00); f. To provide up to Two Million Two Hundred Fifty Thousand Dollars ($2,250,000.00) in CRA funding at Substantial Completion (as defined in the Development Agreement), or, if closing under this Agreement occurs no later than March 1, 2026, upon commencement of construction instead; g. To provide an additional One Million Dollars ($1,000,000.00) in CRA funding as an incentive grant for early closing to be paid upon commencement of construction if closing under this Agreement occurs no later than March 1, 2026; h. To provide for up to six (6) sixty (60) day closing extensions of this Agreement at a cost of Two Hundred Thousand and No/100 Dollars ($200,000.00) each; i. To establish December 31, 2028 as the date of Substantial Completion, subject to extension for Events of Force Majeure and Governmental Delay (as defined in the Development Agreement); j. To provide for liquidated damages in the amount of One Million Dollars ($1,000,000.00) if Substantial Completion is not achieved by December 31, 2028, subject to extension for Events of Force Majeure and Governmental Delay, which liquidated damages shall be secured, at Purchaser’s option, by any of the following: cash collateral from Purchaser or a provision for payment of the same to the City from the contractor under the Construction Agreement; k. To provide that the Seller will be an additional insured in insurance policies for the City Hall Project and the Harborview Project with the same insurance amounts as Purchaser; l. To provide for defense, reimbursement, and indemnification of the City in an amount of up to maximum amount of Five Hundred Thousand and No/100 Dollars ($500,000.00) for any legal challenges related to amendment of the Development Agreement; and m. To provide for any other changes necessary to conform the Development Agreement with the terms and conditions of this Amendment. 4. Closing. Section 13 of the Agreement shall be amended by deleting Section 13 in its entirety and replacing it with the following: “Closing Place and Date. The closing of the transaction contemplated under this Contract (“Closing”) shall be closed in the offices of the designated Closing Agent in Pinellas 3 County, Florida on or before March 1, 2026, unless extended by the time allotted for the removal of title defects as provided for in Paragraph 8 above, Force Majeure Event, Governmental Delay, or as provided below in this Section 13 (“Closing Date”). For the avoidance of doubt, any extension or delay in closing beyond March 1, 2026, shall render the Buyers ineligible to receive the One Million Dollars ($1,000,000.00) incentive grant described in Section 3(h) of this Amendment. The Seller shall designate the closing agent (“Closing Agent”). Notwithstanding the previous paragraph, if the Closing does not occur by the Closing Date, Buyer shall have the option to extend the Closing Date for up to six (6) additional extensions of sixty (60) days each, by delivering written notice thereof to Seller prior to the expiration of the Closing Date or the date of the immediately prior exercised extension period, as applicable, and submitting payment to the Seller in the sum of Two Hundred Thousand Dollars ($200,000.00) for each extension option (each an “Extension Fee”), which each Extension Fee shall be nonrefundable and not applicable towards the Purchase Price except in the case of an Event of Default on the part of the Seller. The Buyer and Seller acknowledge and agree that time shall be of the essence with respect to the performance by the Buyer of its obligation to pay the Extension Fee. For that reason, if the Extension Fee is not paid timely, then the Buyer shall have five (5) business days to cure monetary defaults. If Buyer fails to close or otherwise cure after five (5) business days, then the Contract shall automatically terminate without penalty or any further action being required by the Seller. 5. Conditions Precedent to Seller’s Obligation to Close. Section 40(iii) of the Agreement shall be amended by deleting Section 40(iii) in its entirety and replacing it with the following: “iii. Commensurate with Closing, Buyer shall provide the Seller with a copy of a Construction Agreement. “Construction Agreement” shall be defined as an executed agreement between a general contractor, licensed in the State of Florida, or construction manager and the Buyer or the Buyer’s Affiliates or lenders, whereby the Buyer or Buyer’s Affiliates or lenders provide monetary compensation in exchange for a commitment to construct or ensure the construction of the improvements described in the Development Agreement relating to the Land. Additionally, at or prior to Closing, Buyer or Buyer’s contractor under the Construction Agreement shall have bought out the following “Major Trades”: (1) sitework, (2) concrete, (3) structural steel, if applicable, (4) HVAC, (5) electric, (6) plumbing, (7) rough carpentry, and (8) facade. Additionally, to the extent assignable and at the sole cost of the Seller, Buyer agrees to assign to Seller, subject to Lender’s approval and subordinate to Lender’s interest in, all of Buyer’s right, title, and interest in all plans and specifications for the construction of the improvements on the Land as provided for in the Development Agreement, the Construction Agreement, any engineer’s agreement related the construction of the improvements on the Land as provided for in the Development Agreement, and any architect’s agreement related the construction of the improvements on the Land as provided for in the Development Agreement, which assignment shall be in a form mutually agreeable between Buyer and Seller.” 4 Additionally, Section 40(iv) shall be added to the Agreement as follows: “iv. In addition to other remedies provided by this Agreement, Buyer agrees to provide a comparable completion guaranty as provided to Buyer’s Lender, if applicable, to Seller subject to the consent of Buyer’s Lender.” 6. Conflict in Terms. In the event of any conflict between the terms of this Amendment and the Agreement, the terms contained in this Amendment shall supersede and control. 7. Ratification; Full Force and Effect. Except as expressly modified and amended herein, the terms of the Agreement are hereby ratified and affirmed and shall remain in full force and effect. 8. Severability. If any provision of this Amendment shall, for any reason and to any extent, be invalid or unenforceable, the remainder of this Amendment and the application of such provision shall not be affected thereby, but rather shall be enforced to the maximum extent possible. 9. Headings. The captions and headings used throughout this Amendment are for convenience of reference only and shall not affect the interpretation of this Amendment. 10. Counterparts. This Amendment may be executed in two or more counterparts and/or counterpart signature pages, each of which shall be deemed an original, and all of which shall constitute one and the same instrument. In addition, the parties may execute this Amendment by pdf of facsimile signature which shall be deemed for all purposes original signatures. 11. Binding Effect. This Amendment shall inure to the benefit of and shall be binding upon each of the parties hereto and their respective successors and assigns. 12. Entire Agreement. Collectively, the Agreement and this Amendment are the total agreement of the parties and replaces any prior negotiations, understandings or agreements among the parties, whether written or oral, pertaining to subject matter hereof. Each of the parties acknowledges representation by counsel throughout all of the negotiations which preceded execution of this Amendment, and this Amendment has been executed freely and voluntarily with the consent of and upon the advice of counsel. Each of the parties acknowledges that it has not relied on any promise, covenant, representation, or warranty, express or implied, not expressly set forth in this Amendment. [Signature Pages Follow] 5 PURCHASER SIGNATURE PAGE FOR FOURTH AMENDMENT TO CONTRACT FOR PURCHASE OF REAL PROPERTY IN WITNESS WHEREOF, Seller and Purchaser have executed this Amendment as of the date and year first written above. THE DENUNZIO GROUP, LLC, a Florida limited liability company Date: January 22, 2024 By: Name: Dustin J. DeNunzio Title: Manager GOTHAM PROPERTY ACQUISITIONS LLC, a New York limited liability company Date: January_____, 2024 By: ________________________________ Name: ______________________________ Title: _______________________________ 23rd 6 19093796v8 SELLER SIGNATURE PAGE FOR FOURTH AMENDMENT TO CONTRACT FOR PURCHASE OF REAL PROPERTY Countersigned: CITY OF CLEARWATER, FLORIDA, A Florida municipal corporation. By: _________________________________ By: ________________________________ Brian J. Aungst, Sr. Jennifer Poirrier Mayor City Manager Approved as to form: Attest: _________________________________ _________________________________ David Margolis Rosemarie Call City Attorney City Clerk Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: 9716-23 2nd rdg Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: OrdinanceIn Control: City Attorney Agenda Number: 7.5 SUBJECT/RECOMMENDATION: Adopt Ordinance 9716-23 on second reading, amending the Operating Budget for the fiscal year ending September 30, 2023 to reflect increases and decreases in revenues and expenditures for the General Fund, Special Development Fund, Special Program Fund, and Parking Fund. Page 1 City of Clearwater Printed on 1/23/2024 Ordinance #9716-23 43 ORDINANCE NO. 9716-23 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, AMENDING THE OPERATING BUDGET FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2023 TO REFLECT INCREASES AND DECREASES IN REVENUES AND EXPENDITURES FOR THE GENERAL FUND, SPECIAL DEVELOPMENT FUND, SPECIAL PROGRAM FUND, AND PARKING FUND AS PROVIDED HEREIN; PROVIDING AN EFFECTIVE DATE. WHEREAS, the budget for the fiscal year ending September 30, 2023, for operating purposes, including debt service, was adopted by Ordinance No. 9615-22; and WHEREAS, at the third quarter review it was found that an increase of $19,894,125 is necessary for revenues and an increase of $19,001,269 is necessary for expenditures; and WHEREAS, a summary of the amended revenues and expenditures is attached hereto and marked Exhibit A; and WHEREAS, Section 2.519 of the Clearwater Code authorizes the City Council to provide for the expenditure of money for proper purposes not contained in the budget as originally adopted due to unforeseen circumstances or emergencies arising during the fiscal year; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. Section 1 of Ordinance No. 9615-22 is amended to read: Pursuant to the Amended City Manager's Annual Report and estimate for the fiscal year beginning October 1, 2022 and ending September 30, 2023 a copy, of which is on file with the City Clerk, the City Council hereby adopts an amended budget for the operation of the City, a copy of which is attached hereto as Exhibit A. Section 2. This ordinance shall take effect immediately upon adoption. PASSED ON FIRST READING _________________________ PASSED ON SECOND AND FINAL _________________________ READING AND ADOPTED _______________________________ Brian J. Aungst Sr., Mayor Approved as to form: Attest: _______________________________ ________________________________ David Margolis, City Attorney Rosemarie Call, City Clerk EXHIBIT A 2022-23 BUDGET REVENUE First Third Quarter Mid-Year Quarter Budgeted Amended Amended Amended Revenues Budget Budget Budget Budget 2022/23 2022/23 2022/23 2022/23 Amendment General Fund: Ad Valorem Taxes 80,964,710 80,964,710 80,964,710 82,044,210 1,079,500 Utility Taxes 17,890,000 17,890,000 17,890,000 19,180,090 1,290,090 Local Option, Fuel & Other Taxes 6,430,000 6,430,000 6,430,000 6,230,000 (200,000) Franchise Fees 11,000,000 11,000,000 11,000,000 11,806,100 806,100 Other Permits & Fees 3,908,500 3,908,500 3,908,500 3,663,500 (245,000) Intergovernmental Revenues 28,768,720 28,768,720 28,768,720 30,289,583 1,520,863 Charges for Services 17,218,270 17,218,270 17,218,270 17,643,270 425,000 Judgments, Fines & Forfeitures 1,439,000 1,439,000 1,439,000 1,439,000 - Miscellaneous Revenues 3,512,758 3,512,758 3,512,758 5,713,482 2,200,724 Transfers In 12,497,802 12,497,802 12,497,802 12,652,501 154,699 Transfer (to) from Reserves - 10,870 789,990 10,275,306 9,485,316 Total, General Fund 183,629,760 183,640,630 184,419,750 200,937,042 16,517,292 Special Revenue Funds: Special Development Fund 28,916,190 28,995,390 28,995,390 29,888,246 892,856 Special Program Fund 1,579,555 4,618,138 7,188,493 9,539,205 2,350,712 Local Housing Asst Trust Fund 1,291,060 1,291,060 1,291,060 1,291,060 - Utility & Other Enterprise Funds: Water & Sewer Fund 106,880,100 106,880,100 106,880,100 106,880,100 - Stormwater Utility Fund 17,714,840 17,714,840 17,714,840 17,714,840 - Solid Waste & Recycling Fund 30,381,600 30,381,600 30,381,600 30,381,600 - Gas Fund 59,832,340 59,832,340 59,832,340 59,832,340 - Airpark Fund 406,990 406,990 773,990 773,990 - Marine Fund 7,038,640 7,038,640 7,038,640 7,038,640 - Clearwater Harbor Marina 1,003,610 1,003,610 1,003,610 1,003,610 - Parking Fund 18,867,130 18,867,130 18,867,130 19,000,395 133,265 Internal Service Funds: Administrative Services Fund 16,150,270 16,150,270 16,150,270 16,150,270 - General Services Fund 6,498,650 6,498,650 6,498,650 6,498,650 - Garage Fund 19,533,130 19,533,130 19,533,130 19,533,130 - Central Insurance Fund 35,753,700 35,753,700 35,753,700 35,753,700 - Total, All Funds 535,477,565 538,606,218 542,322,693 562,216,818 19,894,125 44 Ordinance #9716-23 EXHIBIT A (Continued) 2022-23 BUDGET EXPENDITURES First Third Quarter Mid Year Quarter Original Amended Amended Amended Budget Budget Budget Budget Budget 2022/23 2022/23 2022/23 2022/23 Amendment General Fund: City Council 459,136 525,486 533,486 533,486 - City Manager's Office 1,032,745 1,032,745 1,032,745 1,132,745 100,000 City Attorney's Office 2,549,409 2,560,279 2,560,279 2,560,279 - City Audit 372,930 372,930 372,930 372,930 - City Clerk 1,274,878 1,274,878 1,274,878 1,274,878 - CRA Administration 691,422 691,422 691,422 691,422 - Economic Development & Housing 2,019,501 1,954,501 1,954,501 1,982,010 27,509 Finance 2,938,832 2,938,832 2,938,832 2,938,832 - Fire 33,798,143 33,798,143 33,798,143 34,570,967 772,824 Human Resources 2,233,506 2,233,506 2,233,506 2,233,506 - Library 9,445,675 9,445,675 9,445,675 9,445,675 - Non-Departmental 11,763,576 11,697,226 12,476,346 27,843,536 15,367,190 Office of Innovation 899,534 899,534 891,534 891,534 - Parks & Recreation 38,162,462 39,337,937 39,337,937 39,337,937 - Planning & Development 7,605,355 7,605,355 7,605,355 7,605,355 - Police 53,505,918 53,505,918 53,505,918 53,755,687 249,769 Public Communications 1,573,275 1,573,275 1,573,275 1,573,275 - Public Utilities 412,520 412,520 412,520 412,520 - Public Works 12,890,943 11,780,468 11,780,468 11,780,468 - Total, General Fund 183,629,760 183,640,630 184,419,750 200,937,042 16,517,292 Special Revenue Funds: Special Development Fund 28,466,190 28,545,390 28,545,390 28,545,390 - Special Program Fund 1,504,555 4,543,138 7,113,493 9,464,205 2,350,712 Local Housing Asst Trust Fund 1,291,060 1,291,060 1,291,060 1,291,060 - Utility & Other Enterprise Funds: Water & Sewer Fund 100,828,010 100,828,010 100,828,010 100,828,010 - Stormwater Utility Fund 16,791,710 16,791,710 16,791,710 16,791,710 - Solid Waste & Recycling Fund 28,437,980 28,737,980 29,137,980 29,137,980 - Gas Fund 59,832,340 59,832,340 59,832,340 59,832,340 - Airpark Fund 406,990 406,990 773,990 773,990 - Marine Fund 7,038,640 7,038,640 7,038,640 7,038,640 - Clearwater Harbor Marina 1,003,610 1,003,610 1,003,610 1,003,610 - Parking Fund 18,867,130 18,867,130 18,867,130 19,000,395 133,265 Internal Service Funds: Administrative Services Fund 16,069,230 16,069,230 16,069,230 16,069,230 - General Services Fund 6,462,980 6,462,980 6,462,980 6,462,980 - Garage Fund 19,470,400 19,470,400 19,470,400 19,470,400 - Central Insurance Fund 35,752,330 35,752,330 35,752,330 35,752,330 - Total, All Funds 525,852,915 529,281,568 533,398,043 552,399,312 19,001,269 45 Ordinance #9716-23 Third Quarter Budget Review Fiscal Year 2022-23 Memorandum TO: Mayor and City Council FROM: Jennifer Poirrier, City Manager COPIES: Michael Delk, Assistant City Manager Daniel Slaughter, Assistant City Manager SUBJECT: Third quarter budget review - amended City Manager's annual budget report DATE: September 1, 2023 Attached is the third quarter budget review in accordance with the City Code of Ordinances. This report is based on the first nine months of activity in the current fiscal year (October 2022 through June 2023). Contained within are comments on major variances and documentation of all proposed amendments. Significant Fund amendments are outlined below: General Fund General Fund revenue and expenditure amendments reflect a net increase of $16,517,292. The General Fund expenditure increase at third quarter includes the Council approved appropriation of $240,000 of General Fund reserves to fund the City Hall Demolition project. With the approval of the new City Hall concept plan, amendments include an allocation of $15,000,000 of General Fund reserves transferring $10,000,000 to establish the MSB Renovations project and $5,000,000 to the New City Hall project. Other amendments include an increase which totals $813,043 to police and fire supplemental pension to bring the budget in line with actual revenues and expenditures; an increase of $100,000 in the City Manager’s office budget to fund severance payments; an increase of $27,509 in Economic Development & Housing for administrative costs for grant administration offset by revenues recognizing a transfer of interest earnings from ARPA revenue recovery funds; an increase of $209,550 for retirement payouts in the Fire Department; and an increase of $127,190 in Non-Departmental for land development costs offset by revenues transferred from the special program fund. At third quarter, various revenues are amended to bring the budget in line with anticipated receipts for the year. Adjusted for expenditure increases noted above this results in a net revenue surplus of $5,754,684 anticipated for the year. This surplus reduces the approved use of reserves noted above resulting in an estimated net use of $10,275,306 of fund reserves for the fiscal year. General Fund Reserves – In order to ensure adequate reserves, the City Council’s policy reflects that General Fund unappropriated fund reserves of 8.5% of the City’s budgeted General Fund expenditures must be maintained as a reserve to guard against future emergencies. Third Quarter Budget Review Fiscal Year 2022-23 Estimated General Fund reserves at third quarter are approximately $47.6 million, or 23.9% of the preliminary fiscal year 2023/24 General Fund expenditure budget, exceeding our minimum reserve requirement by $30.6 million. Significant amendments to other city operating funds are noted as follows: Parking Fund Amendments to Parking Fund expenditures reflect an increase of $133,265. Overtime costs for the beach guards are increased by $8,265 which is offset by reimbursement revenues from Ruth Eckerd Hall for event coverage by emergency medical technicians at The Sound; and operating expenses for parking operations (contractual services and operating supplies) are increased by a total of $125,000 offset by increased parking revenues anticipated for the year. Capital Improvement Program Third quarter amendments to the capital improvement program reflect a net increase of $17,825,165. Amendments previously approved by Council include an increase of $240,000 in General Fund revenues for the City Hall Demolition project. Amendments also include increases of General Fund revenues of $5,000,000 to the New City Hall project and $10,000,000 to the new MSB Renovations project to fund the approved City Hall concept plan. Project activity not previously approved by the Council is summarized on page 21. Significant amendments include an increase of $62,663 to property owners share revenue in the Pinellas New Mains/Service Lines project; an increase of $150,000 in General Fund revenue in the Clearwater Municipal Cemetery Renovation project; and $250,000 General Fund revenue in the Parks & Beautification R&R project. Special Program Fund The Special Program Fund reflects a net budget increase of $2,350,712 at third quarter. Significant amendments include an increase of $620,735, in public safety grant/governmental revenues for the 23/34 School Resource Officer agreement, grant funding for the Mental Health Co-Responder program and agency assistance programs; $415,981 in contractual service revenue for police extra duty; $129,960 in reimbursement revenue for the Police Safety Officer program at Countryside Christian; $44,020 in donation revenues to support Police, Library, and youth programs in Parks and Recreation; $25,000 for the second year of the Duke Energy Economic Development grant program; $3,100 in foreclosure registry fees collected; $98,460 in fines and court proceeds for public safety programs, and the tree replacement program; $90,978 in insurance reimbursements in the Police Vehicle Replacement program; $3,552 in special events revenues; and $918,926 transferred between existing special programs. CITY OF CLEARWATER THIRD QUARTER SUMMARY 2022/23 FY 22/23 Mid Variance % Adopted Year Third Qtr.YTD Actual vs.YTD vs.Third Qtr.Amended Description Budget Amended Actual Amend Budget Budget Adjustment Budget General Fund: Revenues 183,629,760 184,419,750 155,319,536 29,100,214 84%16,517,292 200,937,042 Expenditures 183,629,760 184,419,750 136,397,166 48,022,584 74%16,517,292 200,937,042 Utility Funds: Water & Sewer Fund Revenues 106,880,100 106,880,100 81,870,082 25,010,018 77%- 106,880,100 Expenditures 100,828,010 100,828,010 83,577,868 17,250,142 83%- 100,828,010 Stormwater Fund Revenues 17,714,840 17,714,840 13,841,168 3,873,672 78%- 17,714,840 Expenditures 16,791,710 16,791,710 13,983,579 2,808,131 83%- 16,791,710 Gas Fund Revenues 59,832,340 59,832,340 39,200,241 20,632,099 66%- 59,832,340 Expenditures 59,832,340 59,832,340 39,299,792 20,532,548 66%- 59,832,340 Solid Waste and Recycling Fund Revenues 30,381,600 30,381,600 25,140,556 5,241,044 83%- 30,381,600 Expenditures 28,437,980 29,137,980 19,198,357 9,939,623 66%- 29,137,980 Enterprise Funds: Marine Fund Revenues 7,038,640 7,038,640 5,408,482 1,630,158 77%- 7,038,640 Expenditures 7,038,640 7,038,640 5,404,458 1,634,182 77%- 7,038,640 Airpark Fund Revenues 406,990 773,990 246,834 527,156 32%- 773,990 Expenditures 406,990 773,990 601,429 172,561 78%- 773,990 Clearwater Harbor Marina Fund Revenues 1,003,610 1,003,610 763,194 240,416 76%- 1,003,610 Expenditures 1,003,610 1,003,610 778,086 225,524 78%- 1,003,610 Parking Fund Revenues 18,867,130 18,867,130 9,022,315 9,844,815 48%133,265 19,000,395 Expenditures 18,867,130 18,867,130 16,550,205 2,316,925 88%133,265 19,000,395 Internal Service Funds: General Services Fund Revenues 6,498,650 6,498,650 4,910,582 1,588,068 76%- 6,498,650 Expenditures 6,462,980 6,462,980 4,426,020 2,036,960 68%- 6,462,980 Administrative Services Revenues 16,150,270 16,150,270 12,077,722 4,072,548 75%- 16,150,270 Expenditures 16,069,230 16,069,230 10,992,059 5,077,171 68%- 16,069,230 Garage Fund Revenues 19,533,130 19,533,130 12,931,283 6,601,847 66%- 19,533,130 Expenditures 19,470,400 19,470,400 11,045,337 8,425,063 57%- 19,470,400 Central Insurance Fund Revenues 35,753,700 35,753,700 24,848,010 10,905,690 69%- 35,753,700 Expenditures 35,752,330 35,752,330 25,158,267 10,594,063 70%- 35,752,330 1 THIRD QUARTER REVIEW AMENDED CITY MANAGER'S FISCAL YEAR 2022-23 REPORT PAGE # General Fund Operating Budget ..................................................................................................... 3 Utility Funds Operating Budget ...................................................................................................... 9 Other Enterprise Funds Operating Budgets ................................................................................. 13 Internal Service Funds Operating Budgets ................................................................................... 17 Capital Improvement Program Budget ........................................................................................ 21 Special Program Fund Budget ....................................................................................................... 30 Special Development Fund ........................................................................................................... 38 Administrative Change Orders ...................................................................................................... 41 Ordinances ..................................................................................................................................... 43 The amended 2022/23 operating budget, presented by operating fund and/or department, is submitted for the City Council review. The actual and projected data contained in this review represents nine months, October 1, 2022, through June 30, 2023. The adjustments, however, represent all data available at the time of the report, including action taken by the City Council after June 30, 2023. Definitions associated with the operating funds information is presented as follows: Definitions: Adopted Budget - The budget as adopted by the City Council on October 6, 2022. Variance YTD Actual vs. Adopted Budget - Difference between year to date actual and adopted budget. % YTD vs. Budget - Percentage of adopted budget expended, year to date. Proposed Amendments - Adjustments that have been approved by the City Council, made at the Manager’s discretion, and/or adjustments proposed based on this quarter’s review. Amended Budget - Adding the Original Budget and Adjustments. 2 Capital Improvement Program The amended 2022/23 Capital Improvement Projects budget report is submitted for the City Council review. This review provides the opportunity to analyze the status of all active projects and present formal amendments to the project budget. The Capital Improvement Program and Special Program fund information is presented as follows: Definitions: Budget - The budget as of October 1, 2022, which includes project budgets from prior years, which have not been completed. Amendment - Amendments which have been approved by the City Council, made at the Manager's discretion, and/or adjustments proposed based on this quarter’s review. Revised Budget - Adding the Budget and Amendment columns. Encumbrance - Outstanding contract or purchase order commitment. Available Balance - Difference between revised budget and expenditure, plus encumbrance. Status - C - project is completed. Amend Ref - Reference number for description of amendment. Increase/ (Decrease)Description 1,079,500 At third quarter,approximately all property tax revenue has been received.The budget is increased by $1,079,500.00 to reflect actual collections to date. 1,290,090 At third quarter,utility tax revenues are increased by $1,290,090.00.Amendments reflect the following:1)an increase of $983,560.00 to electric utility;2)an increase of $300,000.00 to water utility;3)a decrease of $20,000.00 to gas utility;and 4)an increase of $26,530.00 to propane utility taxes.All of these will bring the budget in line with anticipated receipts for the year. (200,000) At third quarter,local business tax receipts are decreased by $200,000.00 to bring the budget in line with anticipated receipts for the year. 806,100 At third quarter,electric franchise fee revenues are increased by $773,040.00 and gas franchise fees are increased by $33,060.00.This will bring the budget in line with anticipated receipts for the year. (245,000) Third quarter amendments to other permits and fees revenues include a decrease of $300,000.00 to building/sign permit revenues,and an increase to forfeited permit fees of $55,000.00 to bring the budget in line with anticipated receipts for the year. 1,520,863 Third quarter amendments to other governmental revenue reflect a net increase $1,520,863.00 to bring the budget in line with anticipated revenues.Amendments include the following:1)an increase of $837,820.00 to state revenue sharing;2)an increase of $813,043.00 to public safety supplemental pension revenue which offset expenditure amendments in the Police and Fire Departments;and 3)a decrease of $130,000.00 to EMS Tax. Local Option, Fuel & Other Taxes Intergovernmental Other Permits and Fees Franchise Fees City of Clearwater General Fund RevenuesThird Quarter Amendments FY 2022/23 Utility Taxes Ad Valorem Taxes 3 Increase/ (Decrease)Description City of Clearwater General Fund RevenuesThird Quarter Amendments FY 2022/23 425,000 Third quarter amendments to charges for service revenues reflect increases totaling $425,000.00 to Pier 60 revenues. 2,200,724 Third quarter amendments to miscellaneous revenue reflect a net increase $2,200,724.00.Amendments include the following:1)an increase of $1,000,000.00 to interest earnings;2)an increase of $1,000,000.00 to beach rental contracts;and 3)an increase of $200,724.00 to surplus land sales for the North Garden Avenue property. 154,699 Third quarter amendments to transfer in revenues reflect a net increase of $154,699.00.Amendments include the following increases:1)$127,190.00 to recognize Community Development Block Grant funding from special program G2302,Economic Development 2023,as approved by the Council on June 15,2023;and 2) $27,509.00 from the special program fund to offset expenditures for grant administration software in Economic Development and Housing. Third quarter amendments reflect the appropriation of $9,485,316.00 from General Fund retained earnings. Amendments include the following: 240,000 1)An appropriation of $240,000.00 from fund reserves to provide additional funding for capital project C2212,City Hall Demolition as approved by the Council on June 15, 2023. 15,000,000 2)A total appropriation of $15,000,000.00 from fund reserves to provide funding for the New City Hall conceptual design plan,distributed as follows: $10,000,000.00 to establish capital improvement project C2306,MSB Renovations,and $5,000,000.00 to capital improvement project ENGF220001,New City Hall as approved by the Council on June 15, 2023. Transfers In Miscellaneous Charges for Service Transfer (to) from Surplus 4 Increase/ (Decrease)Description City of Clearwater General Fund RevenuesThird Quarter Amendments FY 2022/23 (5,754,684) 3)Third quarter amendments reflect a net surplus of $5,754,684.This represents the net of revenue amendments noted above and expenditure amendments and will reduce the use of reserves authorized for this quarter. 9,485,316 16,517,292 Net General Fund Revenue Amendment Net Transfer (to) from Retained Earnings Transfer (to) from Surplus (continued) 5 Increase/(Decrease)Description 100,000 Amendments to City Manager expenditures reflect an increase of $100,000.00 to fund severance payouts as provided in employment agreements. - Third quarter amendments to CRA Administration include the recognition of one additional FTE (CRA Specialist)as approved by CRA trustees on June 12,2023.A funding adjustment is not required for this additional position as sufficient funding is available in the interlocal agreement. 27,509 At third quarter,Economic Development and Housing expenditures reflect an increase of $27,509.00 to fund grant administration software offset by revenues recognizing the use of ARPA interest. 772,824 Third quarter amendments to Fire Department reflect a net increase of $772,824.00.Amendments include:1)an increase of $563,274.00 to Fire supplemental pension plans,which is offset by an amendment increasing supplemental pension revenue;and 2)an increase of $209,550.00 to salaries &wages to fund retirements in the Fire Department. - Third Quarter amendments to Parks &Recreation expenditures reflect net zero amendments totaling $400,000.00. Amendments include:1)a transfer of $150,000.00 in salary savings to capital project M2210,Clearwater Municipal Cemetery Renovations;and 2)a transfer of $250,000.00 in budget savings to capital project M2206,Parks and Beautification R&R. 249,769 At third quarter,amendments to the Police Department include an increase of $249,769.00 to the Police supplemental pension plans which is offset by an amendment increasing supplemental pension revenue.Police Parks & Recreation Fire City of Clearwater General Fund Expenditures Third Quarter Amendments FY 2022/23 Economic Development and Housing City Manager's Office CRA Administration 6 Increase/(Decrease)Description City of Clearwater General Fund Expenditures Third Quarter Amendments FY 2022/23 127,190 At third quarter,Non-Departmental expenditures reflect 88%of total budget resulting from transfers occurring in the first period of the year. A third quarter amendment to Non-Departmental reflects an increase of $127,190.00 to land development,as approved by the Council on June 15,2023.This is offset by a revenue amendment recognizing a transfer from special program G2302, Economic Development 2023. Amendments reflect City Council approved interfund transfers to capital improvement programs as follows: 240,000 1) A transfer of $240,000.00 to capital project C2212, City Hall Demolition, as approved by the Council on June 15, 2023. 10,000,000 2) A transfer of $10,000,000.00 to establish capital project C2306, MSB Renovation, to fund the City Hall conceptual design as approved by the Council on June 15, 2023. 5,000,000 3) A transfer of $5,000,000.00 to capital project ENGF220001, New City Hall, to fund the City Hall conceptual design as approved by the Council on June 15, 2023. 15,240,000 16,517,292 Net General Fund Expenditure Non-Departmental 7 2022/23 Variance %2022/23 MY Amended Year to Date YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Amended Bud Budget Amendment Budget General Fund Revenues Ad Valorem Taxes 80,964,710 82,003,519 (1,038,809) 101%1,079,500 82,044,210 Utility Taxes 17,890,000 12,404,183 5,485,817 69%1,290,090 19,180,090 Local Option, Fuel and Other Taxes 6,430,000 5,110,294 1,319,706 79%(200,000) 6,230,000 Franchise Fees 11,000,000 7,542,878 3,457,122 69%806,100 11,806,100 Other Permits & Fees 3,908,500 3,155,235 753,265 81%(245,000) 3,663,500 Intergovernmental 28,768,720 18,041,815 10,726,905 63%1,520,863 30,289,583 Charges for Services 17,218,270 13,348,872 3,869,398 78%425,000 17,643,270 Judgments, Fines and Forfeitures 1,439,000 926,890 512,110 64%- 1,439,000 Miscellaneous Revenues 3,512,758 5,238,372 (1,725,614) 149%2,200,724 5,713,482 Transfers In 12,497,802 7,547,479 4,950,323 60%154,699 12,652,501 Total Revenues 183,629,760 155,319,536 28,310,224 85%7,031,976 190,661,736 Transfer (to) from Surplus 789,990 - 789,990 0%9,485,316 10,275,306 Adjusted Revenues 184,419,750 155,319,536 29,100,214 84%16,517,292 200,937,042 General Fund Expenditures City Council 533,486 371,323 162,163 70%- 533,486 City Manager's Office 1,032,745 804,890 227,855 78%100,000 1,132,745 City Attorney's Office 2,560,279 1,635,251 925,028 64%- 2,560,279 City Audit 372,930 208,877 164,053 56%- 372,930 City Clerk 1,274,878 770,093 504,785 60%- 1,274,878 CRA Administration 691,422 470,311 221,111 68%- 691,422 Economic Development and Housing 1,954,501 1,416,839 537,662 72%27,509 1,982,010 Finance 2,938,832 2,109,572 829,260 72%- 2,938,832 Fire 33,798,143 24,954,035 8,844,108 74%772,824 34,570,967 Human Resources 2,233,506 1,317,721 915,785 59%- 2,233,506 Library 9,445,675 6,895,421 2,550,254 73%- 9,445,675 Non-Departmental 12,476,346 10,957,909 1,518,437 88%15,367,190 27,843,536 Office of Innovation 891,534 519,367 372,167 58%- 891,534 Parks & Recreation 39,337,937 30,041,121 9,296,816 76%- 39,337,937 Planning & Development 7,605,355 5,059,310 2,546,045 67%- 7,605,355 Police 53,505,918 39,916,370 13,589,548 75%249,769 53,755,687 Public Communications 1,573,275 1,033,623 539,652 66%- 1,573,275 Public Utilities 412,520 310,273 102,247 75%- 412,520 Public Works 11,780,468 7,604,860 4,175,608 65%- 11,780,468 Total Expenditures 184,419,750 136,397,166 48,022,584 74%16,517,292 200,937,042 For the Nine Month Period of October 1, 2022 - June 30, 2023 GENERAL FUND THIRD QUARTER REVIEW 8 2022/23 Variance %2022/23 MY Amended Third Qtr.YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget WATER & SEWER FUND Water & Sewer Revenues: Charges for Service 103,669,490 79,001,712 24,667,778 76%- 103,669,490 Judgments, Fines and Forfeits 271,000 209,908 61,092 77%- 271,000 Miscellaneous 2,939,610 2,658,462 281,148 90%- 2,939,610 Transfers In - - - ~- - Fund Equity - - - ~- - Total Revenues 106,880,100 81,870,082 25,010,018 77%- 106,880,100 Water & Sewer Expenditures: Public Utilities Administration 3,137,339 2,072,911 1,064,428 66%- 3,137,339 Wastewater Collection 13,624,801 11,947,710 1,677,091 88%- 13,624,801 Public Utilities Maintenance 8,225,723 6,585,465 1,640,258 80%- 8,225,723 WPC / Plant Operations 26,602,163 21,993,155 4,609,008 83%- 26,602,163 WPC / Laboratory Operations 611,067 404,033 207,034 66%- 611,067 WPC / Industrial Pretreatment 999,062 719,283 279,779 72%- 999,062 Water Distribution 19,485,328 16,812,201 2,673,127 86%- 19,485,328 Water Supply 23,124,370 18,901,272 4,223,098 82%- 23,124,370 Reclaimed Water 5,018,157 4,141,836 876,321 83%- 5,018,157 Total Expenditures 100,828,010 83,577,868 17,250,142 83%- 100,828,010 Increase/ (Decrease)Amendment Description: Water and Sewer Fund Revenues:- Water and Sewer Fund Expenditures:- For the Nine Month Period of October 1, 2022 to June 30, 2023 At third quarter, anticipated revenues of the Water and Sewer Fund exceed anticipated expenditures by $6,052,090 for fiscal year 2022/23. No amendments are proposed to Water and Sewer Fund revenues at third quarter. No amendments are proposed to Water and Sewer Fund expenditures at third quarter. UTILITY FUNDS THIRD QUARTER REVIEW 9 2022/23 Variance %2022/23 MY Amended Third Qtr.YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 to June 30, 2023 UTILITY FUNDS THIRD QUARTER REVIEW STORMWATER FUND Stormwater Revenues: Charges for Service 17,340,280 13,170,822 4,169,458 76%- 17,340,280 Judgments, Fines and Forfeits 73,000 34,332 38,668 47%- 73,000 Miscellaneous 301,560 636,014 (334,454) 211%- 301,560 Transfers In - - - ~- - Fund Equity - - - ~- - Total Revenues 17,714,840 13,841,168 3,873,672 78%- 17,714,840 Stormwater Expenditures: Stormwater Management 10,773,256 10,105,899 667,357 94%- 10,773,256 Stormwater Maintenance 6,018,454 3,877,680 2,140,774 64%- 6,018,454 Total Expenditures 16,791,710 13,983,579 2,808,131 83%- 16,791,710 Increase/ (Decrease)Amendment Description: Stormwater Fund Revenues:- Stormwater Fund Expenditures:- At third quarter, anticipated revenues of the Stormwater Fund exceed anticipated expenditures by $923,130 for fiscal year 2022/23. No amendments are proposed to Stormwater Fund revenues at third quarter. No amendments are proposed to Stormwater Fund expenditures at third quarter. 10 2022/23 Variance %2022/23 MY Amended Third Qtr.YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 to June 30, 2023 UTILITY FUNDS THIRD QUARTER REVIEW GAS FUND Gas Revenues: Charges for Service 55,595,170 38,688,277 16,906,893 70%- 55,595,170 Judgments, Fines and Forfeits 100,000 65,226 34,774 65%- 100,000 Miscellaneous 321,370 446,738 (125,368) 139%- 321,370 Transfers In - - - ~- - Fund Equity 3,815,800 - 3,815,800 0%- 3,815,800 Total Revenues 59,832,340 39,200,241 20,632,099 66%- 59,832,340 Gas Expenditures: Administration & Supply 29,734,623 16,302,286 13,432,337 55%- 29,734,623 Pinellas Gas Operations 14,305,023 11,012,839 3,292,184 77%- 14,305,023 Pasco Gas Operations 9,115,613 7,676,745 1,438,868 84%- 9,115,613 Marketing & Sales 6,677,081 4,307,923 2,369,158 65%- 6,677,081 Total Expenditures 59,832,340 39,299,792 20,532,548 66%- 59,832,340 Increase/ (Decrease)Amendment Description: Gas Fund Revenues:- Gas Fund Expenditures:- At third quarter, anticipated revenues of the Gas Fund equal anticipated expenditures for fiscal year 2022/23. No amendments are proposed to Gas Fund revenues at third quarter. No amendments are proposed to Gas Fund expenditures at third quarter. 11 2022/23 Variance %2022/23 MY Amended Third Qtr.YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 to June 30, 2023 UTILITY FUNDS THIRD QUARTER REVIEW SOLID WASTE AND RECYCLING FUND Solid Waste Revenues: Other Permits and Fees 1,000 5,412 (4,412) 541%- 1,000 Charges for Service 26,874,695 21,936,414 4,938,281 82%- 26,874,695 Judgments, Fines and Forfeits 95,000 53,909 41,091 57%- 95,000 Miscellaneous 625,000 977,624 (352,624) 156%- 625,000 Transfers In - - - ~- - Solid Waste Revenues 27,595,695 22,973,359 4,622,336 83%- 27,595,695 Recycling Revenues: Other Permits and Fees 350 - 350 0%- 350 Intergovernmental - - - ~- - Charges for Service 2,557,274 2,007,953 549,321 79%- 2,557,274 Judgments, Fines and Forfeits 8,000 4,988 3,012 62%- 8,000 Miscellaneous 220,281 154,256 66,025 70%- 220,281 Transfers In - - - ~- - Recycling Revenues 2,785,905 2,167,197 618,708 78%- 2,785,905 Fund Equity - - ~- - Total Revenues 30,381,600 25,140,556 5,241,044 83%- 30,381,600 Solid Waste Expenditures: Collection 20,030,254 13,605,886 6,424,368 68%- 20,030,254 Transfer 2,467,042 1,436,972 1,030,070 58%- 2,467,042 Container Maintenance 958,445 629,012 329,433 66%- 958,445 Administration 1,362,394 884,403 477,991 65%- 1,362,394 Solid Waste Expenditures 24,818,135 16,556,272 8,261,863 67%- 24,818,135 Recycling Expenditures: Residential 1,670,431 941,102 729,329 56%- 1,670,431 Multi-Family 430,139 288,617 141,522 67%- 430,139 Commercial 2,219,275 1,412,365 806,910 64%- 2,219,275 Recycling Expenditures 4,319,845 2,642,084 1,677,761 61%- 4,319,845 Total Expenditures 29,137,980 19,198,357 9,939,623 66%- 29,137,980 Increase/ (Decrease)Amendment Description: Solid Waste and Recycling Fund Revenues:- Solid Waste and Recycling Fund Expenditures:- At third quarter, anticipated revenues of the Solid Waste and Recycling Fund exceed anticipated expenditures by $1,243,620 for fiscal year 2022/23. No amendments are proposed to Solid Waste and Recycling Fund revenues at third quarter. No amendments are proposed to Solid Waste and Recycling Fund expenditures at third quarter. 12 2022/23 Third Qtr.Variance %2022/23 MY Amended Year to Date YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget MARINE FUND Marine Revenues: Intergovernmental - - - ~- - Charges for Service 6,399,710 5,056,453 1,343,257 79%- 6,399,710 Judgments, Fines and Forfeits 3,200 200 3,000 6%- 3,200 Miscellaneous Revenue 149,000 351,829 (202,829) 236%- 149,000 Transfers In - - - ~- - Fund Equity 486,730 - 486,730 0%- 486,730 Total Revenues 7,038,640 5,408,482 1,630,158 77%- 7,038,640 Marine Expenditures: Marina Operations 7,038,640 5,404,458 1,634,182 77%- 7,038,640 Total Expenditures 7,038,640 5,404,458 1,634,182 77%- 7,038,640 Increase/ (Decrease)Amendment Description: Marine Fund Revenues:- Marine Fund Expenditures:- For the Nine Month Period of October 1, 2022 - June 30, 2023 ENTERPRISE FUNDS THIRD QUARTER REVIEW At third quarter, anticipated revenues of the Marine Fund equal anticipated expenditures for fiscal year 2022/23. No amendments are proposed to Marine Fund revenues at third quarter. No amendments are proposed to Marine Fund expenditures at third quarter. 13 2022/23 Third Qtr.Variance %2022/23 MY Amended Year to Date YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 - June 30, 2023 ENTERPRISE FUNDS THIRD QUARTER REVIEW CLEARWATER HARBOR MARINA FUND Clearwater Harbor Marina Revenues: Intergovernmental - - - ~- - Charges for Service 913,500 696,654 216,846 76%- 913,500 Judgments, Fines and Forfeits 1,000 150 850 15%- 1,000 Miscellaneous Revenue 31,500 66,390 (34,890) 211%- 31,500 Transfers In - - - ~- - Fund Equity 57,610 - 57,610 0%- 57,610 Total Revenues 1,003,610 763,194 240,416 76%- 1,003,610 Clearwater Harbor Marina Expenditures Clearwater Harbor Marina Operations 1,003,610 778,086 225,524 78%- 1,003,610 Total Expenditures 1,003,610 778,086 225,524 78%- 1,003,610 Increase/ (Decrease)Amendment Description: Clearwater Harbor Marina Fund Revenues:- Clearwater Harbor Marina Fund Expenditures:- At third quarter, anticipated revenues of the Clearwater Harbor Marina Fund equal anticipated expenditures for fiscal year 2022/23. No amendments are proposed to Clearwater Harbor Marina Fund revenues at third quarter. No amendments are proposed to Clearwater Harbor Marina Fund expenditures at third quarter. 14 2022/23 Third Qtr.Variance %2022/23 MY Amended Year to Date YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 - June 30, 2023 ENTERPRISE FUNDS THIRD QUARTER REVIEW AIRPARK FUND Airpark Revenues: Intergovernmental 13,600 - 13,600 0%- 13,600 Charges for Service 18,000 8,433 9,567 47%- 18,000 Miscellaneous Revenue 364,000 238,401 125,599 65%- 364,000 Transfers In - - - ~- - Fund Equity 378,390 - 378,390 0%- 378,390 Total Revenues 773,990 246,834 527,156 32%- 773,990 Airpark Expenditures:- Airpark Operations 773,990 601,429 172,561 78%- 773,990 Total Expenditures 773,990 601,429 172,561 78%- 773,990 Increase/ (Decrease)Amendment Description: Airpark Fund Revenues:- Airpark Fund Expenditures:- At third quarter, anticipated revenues of the Airpark Fund equal anticipated expenditures for fiscal year 2022/23. No amendments are proposed to Airpark Fund revenues at third quarter. No amendments are proposed to Airpark Fund expenditures at third quarter. 15 2022/23 Third Qtr.Variance %2022/23 MY Amended Year to Date YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 - June 30, 2023 ENTERPRISE FUNDS THIRD QUARTER REVIEW PARKING FUND Parking Revenues: Charges for Service 9,561,080 7,186,311 2,374,769 75%125,000 9,686,080 Judgments, Fines and Forfeits 990,000 1,262,008 (272,008) 127%- 990,000 Miscellaneous Revenue 200,000 571,435 (371,435) 286%8,265 208,265 Transfers In - 2,560 (2,560) ~- - Fund Equity 8,116,050 - 8,116,050 0%- 8,116,050 Total Revenues 18,867,130 9,022,315 9,844,815 48%133,265 19,000,395 Parking Expenditures Public Works/Parking System 16,519,523 14,925,580 1,593,943 90%125,000 16,644,523 Public Works/Parking Enforcement 998,737 635,045 363,692 64%- 998,737 Fire Dept/Beach Guards 1,194,937 889,308 305,629 74%8,265 1,203,202 M&A/Seminole Street Boat Ramp 153,933 100,272 53,661 65%- 153,933 Total Expenditures 18,867,130 16,550,205 2,316,925 88%133,265 19,000,395 Increase/ (Decrease)Amendment Description: Parking Fund Revenues:133,265 Parking Fund Expenditures:133,265 At third quarter, anticipated revenues of the Parking Fund equal anticipated expenditures for fiscal year 2022/23. At third quarter,amendments to Parking Fund revenues reflect a net increase of $133,265.00.Amendments include the following: 1)an increase of $8,265.00 for Ruth Eckerd Hall reimbursement revenue for EMT event coverage at the Sound,and 2)an increase of $125,000.00 to general parking revenues to offset an increase in operating expenditures. At third quarter,amendments to Parking Fund expenditures reflect a net increase of $133,265.00.Amendments include the following:1)an increase of $8,265.00 to overtime salaries for Beach Guards (EMTs)offset by Ruth Eckerd Hall reimbursement revenue for event coverage at the Sound,2)an increase of $100,000.00 to contractual services for increased services provided by Cale,and 3)an increase of $25,000.00 to operating supplies &materials for the purchase of artistic kiosk wraps and parking bumpers for new event lots. 16 2022/23 Variance %2022/23 MY Amended Third Quarter YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget GENERAL SERVICES FUND General Services Revenues: Charges for Service 6,368,650 4,820,454 1,548,196 76%- 6,368,650 Miscellaneous Revenues 130,000 90,128 39,872 69%- 130,000 Transfers In - - - ~- - Fund Equity - - - ~- - Total Revenues 6,498,650 4,910,582 1,588,068 76%- 6,498,650 General Services Expenditures: Administration 512,198 290,739 221,459 57%- 512,198 Building & Maintenance 5,950,782 4,135,281 1,815,501 69%- 5,950,782 Total Expenditures 6,462,980 4,426,020 2,036,960 68%- 6,462,980 Increase/ (Decrease)Amendment Description: General Services Fund Revenues:- General Services Fund Expenditures:- At third quarter, anticipated revenues of the General Services Fund exceed anticipated expenditures by $35,670 for fiscal year 2022/23. No amendments are proposed to General Services Fund revenues at third quarter. No amendments are proposed to General Services Fund expenditures at third quarter. For the Nine Month Period of October 1, 2022 to June 30, 2023 INTERNAL SERVICE FUNDS THIRD QUARTER REVIEW 17 2022/23 Variance %2022/23 MY Amended Third Quarter YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 to June 30, 2023 INTERNAL SERVICE FUNDS THIRD QUARTER REVIEW ADMINISTRATIVE SERVICES FUND Administrative Services Revenues: Charges for Service 16,050,270 11,786,195 4,264,075 73%- 16,050,270 Miscellaneous Revenues 100,000 291,527 (191,527) 292%- 100,000 Transfers In - - - ~- - Fund Equity - - - ~- - Total Revenues 16,150,270 12,077,722 4,072,548 75%- 16,150,270 Administrative Services Expenditures: Info Tech / Admin 515,877 297,800 218,077 58%- 515,877 Info Tech / Network Ops & User Suport 4,854,345 3,670,218 1,184,127 76%- 4,854,345 Info Tech / Network Security & Architecture 2,646,074 1,591,655 1,054,419 60%- 2,646,074 Info Tech / Solutions & Programming 2,761,577 2,353,077 408,500 85%- 2,761,577 Info Tech / Telecommunications - - - ~- - Info Tech / Enterprise Systems & Training 1,091,360 322,219 769,141 30%- 1,091,360 Public Comm / Courier 198,577 99,048 99,529 50%- 198,577 Clearwater Customer Service 4,001,420 2,658,042 1,343,378 66%- 4,001,420 Total Expenditures 16,069,230 10,992,059 5,077,171 68%- 16,069,230 Increase/ (Decrease)Amendment Description: Administrative Services Fund Revenues:- Administrative Services Fund Expenditures:- No amendments are proposed to Administrative Services Fund revenues at third quarter. No amendments are proposed to Administrative Services Fund expenditures at third quarter. At third quarter, anticipated revenues of the Administrative Services Fund exceed anticipated expenditures by $81,040 for fiscal year 2022/23. 18 2022/23 Variance %2022/23 MY Amended Third Quarter YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 to June 30, 2023 INTERNAL SERVICE FUNDS THIRD QUARTER REVIEW GARAGE FUND Garage Fund Revenues Charges for Service 18,908,130 12,224,026 6,684,104 65%- 18,908,130 Miscellaneous Revenues 625,000 707,257 (82,257) 113%- 625,000 Transfers In - - - ~- - Fund Equity - - - ~- - Total Revenues 19,533,130 12,931,283 6,601,847 66%- 19,533,130 Garage Fund Expenditures: Fleet Maintenance 17,789,189 10,565,852 7,223,337 59%- 17,789,189 Radio Communications 1,681,211 479,485 1,201,726 29%- 1,681,211 Total Expenditures 19,470,400 11,045,337 8,425,063 57%- 19,470,400 Increase/ (Decrease)Amendment Description: Garage Fund Revenues:- Garage Fund Expenditures:- At third quarter, anticipated revenues of the Garage Fund exceed anticipated expenditures by $62,730 for fiscal year 2022/23. No amendments are proposed to Garage Fund revenues at third quarter. No amendments are proposed to Garage Fund expenditures at third quarter. 19 2022/23 Variance %2022/23 MY Amended Third Quarter YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 to June 30, 2023 INTERNAL SERVICE FUNDS THIRD QUARTER REVIEW CENTRAL INSURANCE FUND Central Insurance Revenues: Charges for Service 35,413,700 23,954,396 11,459,304 68%- 35,413,700 Miscellaneous Revenues 340,000 893,614 (553,614) 263%- 340,000 Transfers In - - - ~- - Fund Equity - - - ~- - Total Revenues 35,753,700 24,848,010 10,905,690 69%- 35,753,700 Central Insurance Expenditures: Finance / Risk Management 438,663 265,845 172,818 61%- 438,663 HR / Employee Benefits 414,160 232,302 181,859 56%- 414,160 HR / Employee Health Clinic 1,731,900 887,331 844,569 51%- 1,731,900 Non-Departmental 33,167,607 23,772,789 9,394,818 72%- 33,167,607 Total Expenditures 35,752,330 25,158,267 10,594,063 70%- 35,752,330 Increase/ (Decrease)Amendment Description: Central Insurance Fund Revenues:- Central Insurance Fund Expenditures:- At third quarter, anticipated revenues of the Central Insurance Fund exceed anticipated expenditures by $1,370 for fiscal year 2022/23. No amendments are proposed to Central Insurance Fund revenues at third quarter. No amendments are proposed to Central Insurance Fund expenditures at third quarter. 20 CAPITAL IMPROVEMENT PROGRAM Third Quarter Summary FY 2022/23 21 The amended 2022/23 Capital Improvement Program budget report is submitted for the City Council's third quarter review. The proposed amendment is a net budget increase in the amount of $17,825,165. This review provides the opportunity to examine the status of all active projects and present formal amendments to the project budgets. Fiscally significant budget increases encompassed within this review are as follows: The City Council did not previously approve the following capital improvement budget activity: ➢ Pinellas New Mains/Service Lines – a budget increase of $62,663 in property owners share revenue. ➢ Clearwater Municipal Cemetery Renovation – a budget increase of $150,000 in General Fund revenue. ➢ Parks & Beautification R&R – a budget increase of $250,000 in General Fund revenue. ➢ MSB Renovations – a budget increase of $10,000,000 in General Fund revenue. ➢ New City Hall – a budget increase of $5,000,000 in General Fund revenue. All significant budget increases that have been previously approved by the City Council are listed below: Project Council Budget Increase Approval ➢ City Hall Demolition $240,000 06/15/23 Increase/ Amdmt Project (Decrease)Transfer Net Budget #Number Amount Amount Description Amendment City Hall Demolition 1 C2212 240,000 To record a budget increase of $240,000.00 in General Fund revenue as approved by City Council on June 15th, 2023.240,000 Municipal Services Building Renovations - NEW PROJECT 2 C2306 10,000,000 To establish the project and record a budget increase of $10,000,000.00 in General Fund revenue to fund the new city hall conceptual design ,as approved by City Council on June 15th, 2023.10,000,000 New City Hall 3 ENGF220001 5,000,000 To record a budget increase of $5,000,000.00 in General Fund revenue to fund the new city hall conceptual design, as approved by City Council on June 15th, 2023.5,000,000 Aerial Truck - CLOSE PROJECT 4 91244 (714,601) To record a budget transfer of $714,600.62 in penny revenue to project FD00190002,Fire Station 47 Replacement. This project is complete.(714,601) Fire Boat - CLOSE PROJECT 5 91271 (314,192) To record a budget transfer of $314,191.65 in penny revenue to project FD00190002,Fire Station 47 Replacement. This project is complete.(314,192) Fire Station 47 Replacement 6 FD00190002 2,122,505 1,158,184 To record a net increase of $3,280,686.67 in revenues representing the following project transfers:1)a transfer of $714,600.62 in penny revenue from project 91244,Aerial Truck;2)a transfer of $314,191.65 in penny revenue from project 91271,Fire Boat;3)a transfer of $129,392.02 in penny revenue from project 93530,Consolidated Eastside/SPC Library;and 4)a transfer of $2,122,502.38 in unspent General Fund revenues from special program G2011, Back to Business Grant. 3,280,690 Pinellas New Mains / Service Lines 7 96377 62,663 To record a budget increase of $62,662.97 in property owners share revenue to bring the budget in line with revenues received.62,663 Sanitary Sewer Extensions 8 96630 (1,200,000) To record a budget transfer of $1,2000,000.00 in sewer revenue to project 96686, Pump Station Replacement.(1,200,000) CAPITAL IMPROVEMENT PROGRAM Third Quarter Amendments FY 2022/23 22 Increase/ Amdmt Project (Decrease)Transfer Net Budget #Number Amount Amount Description Amendment CAPITAL IMPROVEMENT PROGRAM Third Quarter Amendments FY 2022/23 Pump Station Replacement 9 96686 1,200,000 To record a budget transfer of $1,2000,000.00 in sewer revenue from project 96630, Sanitary Sewer Extensions.1,200,000 Clearwater Municipal Cemetery Renovation 10 M2210 150,000 To record a budget increase of $150,000.00 in General Fund revenue to increase the scope of the project to fund new software.150,000 Consolidated Eastside/St. Petersburg College Library - CLOSE PROJECT 11 93530 (129,392) To record a budget transfer of $129,392.02 in penny revenue to project FD00190002,Fire Station 47 Replacement. This project is complete.(129,392) Parks & Beautification R&R 12 M2206 250,000 To record a budget increase of $250,000.00 in General Fund revenue to assist with increasing costs.250,000 17,825,168 - - 17,825,168 TOTAL 23 CAPITAL IMPROVEMENT PROGRAM PROGRAM & STATUS SUMMARY THIRD QUARTER: October 1, 2022 to June 30, 2023 Actual Expenditures Budget Amended Revised Project Open Available Amend Description 10/1/23 Prev Qtr Amdmts Budget To Date Encumbrance Balance Status Ref Other General Government 93535 Countryside Library Demolition 75,000 75,000 - 75,000 - - 75,000 94233 Motorized Equip-Cash 2,683,945 2,705,101 2,705,101 2,550,479 43,705 110,917 94246 Fleet Management & Mapping 710,000 710,000 - 710,000 615,964 - 94,036 94729 City-wide Connectivity 5,623,089 5,623,089 - 5,623,089 3,842,046 3,759 1,777,285 94736 Geographic Information Sys 1,260,997 1,260,997 - 1,260,997 954,455 - 306,542 94828 Financial Systems Upgrades 4,258,165 4,258,165 - 4,258,165 2,813,489 31,134 1,413,543 94829 CIS Upgrades / Replacement 1,457,376 1,457,376 - 1,457,376 605,653 135,605 716,118 94830 MS Licensing / Upgrades 1,350,000 1,350,000 - 1,350,000 842,601 - 507,399 94850 Backfile Conversion of Records 500,000 500,000 - 500,000 192,043 - 307,957 94857 Accela Permit & Code Enforce 450,000 450,000 - 450,000 328,512 - 121,488 94873 Citywide Camera System 460,000 460,000 - 460,000 279,700 - 180,300 94874 City Enterprise Timekeep Sys 410,000 410,000 - 410,000 202,802 - 207,198 94880 Granicus Agenda Mgt Sys 260,000 260,000 - 260,000 41,136 - 218,864 94883 Business Proc Review & Improve 1,225,735 1,225,735 - 1,225,735 452,549 65,246 707,940 94888 City EOC & Disaster Recovery Fac 3,360,000 3,360,000 - 3,360,000 3,167,902 71,022 121,077 C1901 Beach Radio Tower 852,370 852,370 - 852,370 - - 852,370 C2004 Lift Stations - General Gov 2,240,000 2,240,000 - 2,240,000 176,562 - 2,063,438 C2006 ADA Transition Plan 1,200,000 1,200,000 - 1,200,000 383,657 - 816,343 C2007 Citywide Audio/Visual Solutions 465,053 465,053 - 465,053 56,499 - 408,554 C2101 North Ward Preservation 77,920 77,920 - 77,920 63,470 - 14,449 C2106 Greenprint Implementation 837,848 837,848 - 837,848 531,809 149,380 156,658 C2212 City Hall Demolition 610,000 610,000 240,000 850,000 334,199 482,133 33,668 1 C2306 MSB Renovations - - 10,000,000 10,000,000 - - 10,000,000 2 G2211 ARPA Fiber Upgrades 3,500,000 3,500,000 - 3,500,000 - 783,475 2,716,525 G2214 ARPA Solar Panels 2,000,000 2,000,000 - 2,000,000 - - 2,000,000 ENGF220001 New City Hall 16,700,300 16,700,300 5,000,000 21,700,300 214,300 2,734,040 18,751,960 3 GSBM180001Air Cond Replace-City Wide 2,079,436 2,079,436 - 2,079,436 1,260,001 221,942 597,493 GSBM180002Flooring for Facilities 1,677,837 1,677,837 - 1,677,837 1,287,045 160,824 229,968 GSBM180003Roof Repair and Replacement 3,154,213 3,154,213 - 3,154,213 2,297,726 11,574 844,914 GSBM180004Painting of Facilities 1,042,923 1,042,923 - 1,042,923 429,297 30,156 583,469 GSBM180005Fencing of Facilities 183,170 183,170 - 183,170 73,199 - 109,970 GSBM180006Light Replacement & Repair 753,197 753,197 - 753,197 374,834 - 378,362 GSBM180007Elevator Refurbish/Modern 860,576 860,576 - 860,576 11,118 - 849,458 GSBM180008B&M Vehicle & Equipment 2,218,377 2,218,377 - 2,218,377 871,611 525 1,346,241 GSBM180009New A/C Chiller System 5,600,000 5,600,000 - 5,600,000 1,752,713 - 3,847,287 GSBM180010General Services R&R 600,000 600,000 - 600,000 413,723 - 186,277 GSBM180011Generator Maintenance 670,000 670,000 - 670,000 78,003 - 591,997 GSBM180012General Faci Bldg Major Reno 2,885,242 2,885,242 - 2,885,242 627,346 - 2,257,897 GSFL180001 Fleet Facility R&R 694,520 694,520 - 694,520 93,527 24,303 576,690 L1902 B&M Vehicle & Equipment 65,000 35,046 - 35,046 35,046 - - C L1906/M2202Telecommunications Upgrade 2,269,047 2,269,047 - 2,269,047 228,239 85,235 1,955,574 L1907/M1911IT Disaster Recovery 705,396 705,396 - 705,396 78,443 20,249 606,704 L1908/M1912Network Infra & Server R&R 2,766,417 2,766,417 - 2,766,417 2,030,623 235,495 500,299 L1910 Motorized Equip Replace - LP 24,448,827 24,448,827 24,448,827 17,652,368 3,413,749 3,382,710 L1911 Garage - Off Cycle Replacements 500,000 640,000 - 640,000 290,660 284,678 64,662 L2301 Motorized Equip Purchases - LP 2,139,150 2,139,150 - 2,139,150 1,035,702 655,578 447,870 M1914 Sustainability Initiatives 200,000 200,000 - 200,000 146,710 - 53,290 M2007 City EOC Maintenance 125,000 125,000 - 125,000 3,853 - 121,147 L2001/M2010P25 Radio Equipment & Infrast 4,507,104 4,507,104 - 4,507,104 2,888,872 - 1,618,232 M2201 Studio/Production Eqp.51,344 51,344 - 51,344 - - 51,344 M2211 Neighborhood Reinvest Fund 200,000 200,000 - 200,000 - - 200,000 Sub-Total 112,964,573 113,095,774 15,240,000 128,335,774 52,610,484 9,643,806 66,081,485 24 CAPITAL IMPROVEMENT PROGRAM PROGRAM & STATUS SUMMARY THIRD QUARTER: October 1, 2022 to June 30, 2023 Actual Expenditures Budget Amended Revised Project Open Available Amend Description 10/1/23 Prev Qtr Amdmts Budget To Date Encumbrance Balance Status Ref Police Protection 94238 Police Vehicles 2,752,032 2,752,032 - 2,752,032 2,491,068 - 260,964 C2201 Police CAD Replacement 900,000 900,000 - 900,000 312,791 - 587,209 C2206 PD Equipment Facility 750,000 750,000 - 750,000 - - 750,000 P1802 Police Equipment Replacement 809,686 855,547 - 855,547 772,235 34,227 49,084 P1803 Command Bus Refurbishment 200,000 154,139 - 154,139 154,139 - - C P1902 Police Information Systems 450,000 450,000 - 450,000 376,790 - 73,210 P2102 Training Range Sound Mitigation 820,000 820,000 - 820,000 787,787 15,408 16,805 PD00180001 Police District 3 Station 13,050,000 13,050,000 - 13,050,000 12,485,662 430,552 133,787 Sub-Total 19,731,718 19,731,718 - 19,731,718 17,380,472 480,187 1,871,059 Fire Protection 91218 Fire Engine Replacement 4,249,366 4,249,366 - 4,249,366 3,482,241 718,190 48,936 91244 Aerial Truck 3,368,080 3,368,080 (714,601) 2,653,479 2,653,479 - - 4 91260 Thermal Imaging Cameras 320,270 320,270 - 320,270 163,939 78,900 77,431 91261 Personal Protection Equip 2,664,250 2,664,250 - 2,664,250 2,158,296 271,060 234,894 91262 SCBA Upgrade - Fill Station 125,000 82,366 - 82,366 82,366 - - C 91264 Fire Hose Replacement 531,460 531,460 - 531,460 341,703 2,609 187,148 91271 Fire Boat 1,008,363 1,008,363 (314,192) 694,171 694,171 - (0) 5 C2207 FD Equipment Facility 750,000 750,000 - 750,000 13,582 - 736,418 FD00190001 Fire Station 46 - Beach 10,350,693 10,350,693 - 10,350,693 7,615,292 2,557,854 177,547 FD00190002 Fire Station 47 Replacement 4,839,441 4,839,441 3,280,687 8,120,127 1,199,068 115,345 6,805,715 6 M2005 Fire Training Tower 400,286 400,286 - 400,286 52,987 31,440 315,859 Sub-Total 28,607,208 28,564,574 2,251,894 30,816,469 18,457,125 3,775,398 8,583,946 Fire Rescue Services 91229 Replace & Upgrade Airpacks 1,341,680 1,384,314 - 1,384,314 921,668 51,401 411,246 91236 Rescue Vehicle 862,500 862,500 - 862,500 495,780 - 366,720 91257 AED Program 315,510 315,510 - 315,510 279,236 - 36,274 91263 Extrication Tools 177,000 177,000 - 177,000 125,708 48,910 2,382 ENGF190002 Beach Guard Tower 324,239 324,239 - 324,239 95,930 - 228,309 ENGF200002 Beach Guard Admin Building 135,000 135,000 - 135,000 65,660 2,700 66,640 Sub-Total 3,155,929 3,198,563 - 3,198,563 1,983,981 103,011 1,111,571 Gas Utility Services 96358 Environmental Remediation 2,134,794 2,134,794 - 2,134,794 1,947,828 88,855 98,111 96365 Line Relocation-Pinellas Maint 836,569 836,569 - 836,569 591,736 - 244,833 96367 Gas Meter Change Out-Pinellas 4,663,000 4,663,000 - 4,663,000 4,393,857 - 269,143 96374 Line Relocation-Pinellas Capital 3,333,500 3,333,500 - 3,333,500 3,144,345 16,100 173,055 96376 Line Relocation - Pasco Maint 361,384 361,384 - 361,384 146,186 - 215,198 96377 Pinellas New Mains / Serv Lines 45,431,671 45,496,393 62,663 45,559,056 37,819,671 131,313 7,608,071 7 96378 Pasco New Mains / Serv Lines 27,922,099 28,036,207 - 28,036,207 25,189,052 7,900 2,839,254 96379 Pasco Gas Meter Change Out 1,592,821 1,592,821 - 1,592,821 915,200 - 677,621 96381 Line Reloc-Pasco-Capitalized 1,847,300 1,847,300 - 1,847,300 1,278,075 - 569,225 96382 Gas Inventory - Work Mgmt Sys 2,492,000 2,492,000 - 2,492,000 856,268 - 1,635,732 96384 Gas System - Pinellas Building 28,857,855 28,857,855 - 28,857,855 28,069,368 - 788,487 96385 Gas Main Extensions 1,807,845 1,807,845 - 1,807,845 1,520,032 - 287,813 96386 Expanded Energy Conservation 16,128,589 16,128,589 - 16,128,589 12,456,287 - 3,672,302 96387 Natural Gas Vehicle 7,684,584 7,684,584 - 7,684,584 6,148,893 908,304 627,386 96389 Future IMS Software & Hardware 1,475,000 1,475,000 - 1,475,000 361,793 - 1,113,207 96391 Gas System Pasco Building 950,000 950,000 - 950,000 1,392 - 948,608 C2301 Pasco Gate Station 1,500,000 1,500,000 - 1,500,000 - - 1,500,000 M1904 Pinellas Building Equip R&R 1,000,000 1,000,000 - 1,000,000 - - 1,000,000 Sub-Total 150,019,009 150,197,840 62,663 150,260,503 124,839,983 1,152,473 24,268,047 25 CAPITAL IMPROVEMENT PROGRAM PROGRAM & STATUS SUMMARY THIRD QUARTER: October 1, 2022 to June 30, 2023 Actual Expenditures Budget Amended Revised Project Open Available Amend Description 10/1/23 Prev Qtr Amdmts Budget To Date Encumbrance Balance Status Ref Solid Waste Control Services 96426 Facility R & R - 1,862,066 - 1,862,066 1,862,066 - (0) C 96443 Res Container Acquisition - 1,733,081 - 1,733,081 1,733,081 - (0) C 96444 Comm Container Acquisition 4,695,420 4,352,448 - 4,352,448 4,352,448 - - C 96445 Solar Trash & Recycling Kiosks 364,414 239,182 - 239,182 239,182 - - C 96448 Solid Waste CNG Station 150,000 - - - - - - C 96449 Solid Waste Truck Wash Fac 555,500 - - - - - - C 96804 Recycling Carts/Dumpsters 1,426,650 925,855 - 925,855 925,855 - - C 96805 Recycling Expan/Particip/R&R 1,341,525 1,222,936 - 1,222,936 1,222,936 - - C C2005/L2005 Underground Refuse Program 2,195,090 2,169,736 - 2,169,736 1,717,107 10,003 442,626 C2302 Rebuild SW Adm Comp - 8,610,526 - 8,610,526 10,288 19,075 8,581,164 L2201 SW/Recyc Add Veh & Equip 185,000 - - - - - - C M2301 SW Facility R&R 200,000 200,000 - 200,000 7,480 53,069 139,451 SR00180003 Processing Ctr Building Replace 5,062,633 4,396 - 4,396 4,396 - 0 C SRTS180001 S.W.Transfer Station Rebuild 19,650,130 19,650,130 - 19,650,130 19,072,802 41,499 535,829 Sub-Total 35,826,361 40,970,356 - 40,970,356 31,147,642 123,645 9,699,069 Water-Sewer Combination Services 96212 Sanitary Sewer Upgrades/Impr 17,345,431 17,345,431 - 17,345,431 8,401,891 6,075,790 2,867,751 96213 Marshall Street Upgrades/Impr 20,044,299 20,044,299 - 20,044,299 10,612,687 4,263,737 5,167,875 96214 East Plant Upgrades/Improve 5,150,000 5,150,000 - 5,150,000 646,172 164,688 4,339,140 96215 N.E. Plant Upgrades/Improve 35,263,620 30,524,945 - 30,524,945 19,039,356 3,765,307 7,720,282 96216 Laboratory Upgrade/Improve 1,155,079 1,155,079 - 1,155,079 12,168 - 1,142,912 96217 Pump Station R&R 1,350,192 1,350,192 - 1,350,192 811,161 - 539,031 96523 Pub Utilities Adm Bldg R&R 556,703 556,703 - 556,703 436,694 - 120,009 96526 Public Utility Admin Building 1,104,306 1,104,306 - 1,104,306 - - 1,104,306 96630 Sanitary Sewer Extension 15,319,608 15,319,608 (1,200,000) 14,119,608 12,615,157 4,557 1,499,895 8 96634 Sanitary Sewer Relocation 4,392,493 4,400,885 - 4,400,885 3,356,534 126,640 917,710 96645 Laboratory Upgrade & R&R 1,146,761 1,146,761 - 1,146,761 1,126,761 - 20,000 96654 Facilities Upgrade & Improve 11,779,876 11,779,876 - 11,779,876 10,588,663 258,998 932,216 96664 Water Pollution Control R & R 30,081,864 30,081,864 - 30,081,864 20,848,249 4,568,354 4,665,261 96665 Sanitary Sewer R&R 84,663,458 83,663,458 - 83,663,458 54,638,059 19,734,917 9,290,482 96686 Pump Station Replacement 9,413,137 15,875,137 1,200,000 17,075,137 5,838,884 110,784 11,125,469 9 96721 System R & R - Maintenance 17,015,686 17,015,686 - 17,015,686 6,563,659 3,264,916 7,187,111 96722 Line Relocation - Maintenance 5,425,071 5,606,588 - 5,606,588 3,630,489 66,181 1,909,918 96739 Reclaimed Water Dist Sys 47,616,014 55,116,014 - 55,116,014 45,782,108 448,205 8,885,700 96742 Line Relocation-Capitalized 5,869,275 5,869,275 - 5,869,275 4,255,780 - 1,613,495 96744 System Expansion 3,945,043 3,945,043 - 3,945,043 3,552,120 - 392,923 96764 RO Plant Exp Res #1 16,499,527 16,499,527 - 16,499,527 13,243,654 39 3,255,834 96767 RO Plant at Res #2 50,495,439 44,495,439 - 44,495,439 41,875,094 882,605 1,737,740 96773 Groundwater Replenishm Fac 7,400,118 6,264,570 - 6,264,570 5,917,653 2,987 343,930 96782 RO Plant @WTP #3 3,069,594 3,069,594 - 3,069,594 998,290 1,222,091 849,213 96783 Water Sys Upgrades/Improve 8,953,600 8,953,600 - 8,953,600 2,663,427 882,862 5,407,310 96784 Reclaim Water Distrib Sys R&R 4,840,936 5,842,078 - 5,842,078 1,448,857 1,686,917 2,706,305 96785 Feasibility Studies/Evalu - Water 3,805,000 3,805,000 - 3,805,000 2,433,595 55,954 1,315,451 96786 Devices/Equipments - Water 1,100,000 1,100,000 - 1,100,000 - - 1,100,000 G2206 Portable Generators 630,000 630,000 - 630,000 - - 630,000 L1904/L1905 /M2008 Vehicle & Equip-Sewer 1,077,913 1,077,913 - 1,077,913 1,000,239 - 77,674 M1905 Marshall Street Plant R&R 4,160,000 4,160,000 - 4,160,000 376,642 95,269 3,688,089 M1906 Northeast Plant R&R 2,279,313 2,279,313 - 2,279,313 431,377 - 1,847,936 M1907 East Plant R&R 5,165,000 5,165,000 - 5,165,000 368,146 166,752 4,630,102 M1908 RO Plant Exp Res #1 R&R 1,300,000 1,300,000 - 1,300,000 47,996 - 1,252,004 M1909 RO Plant at Res #2 R&R 1,250,000 1,250,000 - 1,250,000 252,738 - 997,262 26 CAPITAL IMPROVEMENT PROGRAM PROGRAM & STATUS SUMMARY THIRD QUARTER: October 1, 2022 to June 30, 2023 Actual Expenditures Budget Amended Revised Project Open Available Amend Description 10/1/23 Prev Qtr Amdmts Budget To Date Encumbrance Balance Status Ref Water-Sewer Combination Services (continued) M1910 Water Treatment Plant #3 R&R 898,851 898,851 - 898,851 152,278 - 746,573 M2103 Utilities Bldg & Maint 1,000,000 1,000,000 - 1,000,000 281,593 - 718,407 Sub-Total 432,563,206 434,842,034 - 434,842,034 284,248,168 47,848,548 102,745,318 Flood Protection/SW Management C1908 Stormwater Vehicles & Equip 5,695,930 4,995,930 - 4,995,930 3,703,137 480,924 811,869 ENST180001 Stormwater Pipe System Improve 16,422,507 16,422,507 - 16,422,507 4,528,091 2,200,423 9,693,994 ENST180002 Allen's Creek 3,309,631 4,165,992 - 4,165,992 2,833,258 67,214 1,265,519 ENST180003 Stormwater System Expansion 1,339,146 482,785 - 482,785 50,853 4,147 427,785 ENST180004 Stevenson Creek 3,500,286 2,200,286 - 2,200,286 130,515 87,873 1,981,899 ENST180005 Coastal Basin 4,494,370 4,494,370 - 4,494,370 2,803,794 219,314 1,471,262 ENST180006 Alligator Creek Watershed 4,661,592 3,522,592 - 3,522,592 517,951 118,526 2,886,115 ENST180010 Lower Spring Branch Improve 2,320,000 5,459,000 - 5,459,000 354,030 95,264 5,009,706 Sub-Total 41,743,463 41,743,463 - 41,743,463 14,921,629 3,273,685 23,548,149 Other Physical Environment 93422 Dredging of City Waterways 1,346,204 1,346,204 - 1,346,204 483,487 - 862,717 C2208 Coopers Point 1,400,000 1,400,000 - 1,400,000 - - 1,400,000 C2214 Public Works Complex 1,813,738 1,813,738 - 1,813,738 - - 1,813,738 ENGF180006 City-wide Docks and Seawall 2,636,739 2,636,739 - 2,636,739 1,794,552 - 842,188 ENGF180011 Environmental Assmt & Clean-up 1,209,664 1,209,664 - 1,209,664 139,796 1,421 1,068,447 ENGF180014 Seminole Boat Launch Improve 6,752,000 6,752,000 - 6,752,000 4,295,199 25,429 2,431,372 M2002 Environ Park Remediate & Protect 200,000 200,000 - 200,000 29,025 14,750 156,225 M2006 Right of Way Tree Mgt Prog 800,000 800,000 - 800,000 287,425 - 512,575 M2210 CW Municipal Cemetery Reno 600,000 600,000 150,000 750,000 161,811 24,491 563,698 10 Sub-Total 16,758,345 16,758,345 150,000 16,908,345 7,191,296 66,091 9,650,959 Road and Street Facilities C2102 Fort Harrison Reconstruction 15,249,666 15,249,666 - 15,249,666 1,382,629 1,385,049 12,481,989 C2103 Downtown Streetscaping 17,601,407 17,601,407 - 17,601,407 12,361,106 4,748,252 492,049 C2105 Mercado - Downtown Gateway 927,795 927,795 - 927,795 927,795 - - C ENGF200003 Memorial Causeway Bridge Lighting 200,000 200,000 - 200,000 152,656 - 47,344 ENRD180002 Bridge Maintenance & Improve 9,896,497 9,896,497 - 9,896,497 4,123,327 759,629 5,013,541 ENRD180004 Streets and Sidewalks 25,777,514 25,786,429 - 25,786,429 18,245,213 3,894,064 3,647,152 ENRD180005 City-Wide Intersection Improve 4,522,907 4,522,907 - 4,522,907 1,199,475 19,591 3,303,841 ENRD180006 Traffic Signals 2,524,534 2,524,534 - 2,524,534 969,034 240,000 1,315,501 ENRD180007 Traffic Safety Infrastructure 1,407,155 1,429,186 - 1,429,186 966,129 116,542 346,515 G2213 ARPA Streets & Sidewalks 2,000,000 2,000,000 - 2,000,000 300,000 - 1,700,000 Sub-Total 80,107,475 80,138,421 - 80,138,421 40,627,363 11,163,127 28,347,931 Airports 94817 Airpark Maintenance & Repair 364,245 364,245 - 364,245 338,810 - 25,435 G1901 Replace Hangar C 1,305,000 1,305,000 - 1,305,000 1,264,714 29,765 10,522 G2108 Security System Upgrade 228,000 228,000 - 228,000 175,678 - 52,322 G2306 Apron Relayment 250,000 2,000,000 - 2,000,000 - - 2,000,000 G2307 Aviation Operation Center - 300,000 - 300,000 - - 300,000 Sub-Total 2,147,245 4,197,245 - 4,197,245 1,779,202 29,765 2,388,279 Water Transportation System 93415 Waterway Maintenance 900,000 900,000 - 900,000 738,342 49,590 112,068 Sub-Total 900,000 900,000 - 900,000 738,342 49,590 112,068 27 CAPITAL IMPROVEMENT PROGRAM PROGRAM & STATUS SUMMARY THIRD QUARTER: October 1, 2022 to June 30, 2023 Actual Expenditures Budget Amended Revised Project Open Available Amend Description 10/1/23 Prev Qtr Amdmts Budget To Date Encumbrance Balance Status Ref Parking Facilities ENPK180001 Parking Lot Resurfacing 808,476 808,476 - 808,476 61,304 - 747,172 ENPK180002 Parking Lot Improvements 2,418,802 1,018,802 - 1,018,802 741,012 127,684 150,107 ENPK180003 Parking Facilities 4,128,348 4,828,348 - 4,828,348 2,730,135 258,703 1,839,510 ENPK230001 Downtown Parking Garage 10,500,000 11,200,000 - 11,200,000 140,363 1,400,235 9,659,402 M2102 Seminole Boat Launch Maint 375,083 528,674 - 528,674 33,757 9,875 485,042 Sub-Total 18,230,709 18,384,301 - 18,384,301 3,706,572 1,796,496 12,881,233 Other Transportation 92842 City Wayfinding Project 2,050,000 2,050,000 - 2,050,000 1,280,339 573,065 196,596 ENGF180002 Downtown Intermodal 924,756 924,756 - 924,756 - - 924,756 ENGF180003 Miscellaneous Engineering 404,146 404,146 - 404,146 354,752 - 49,394 ENGF180004 Survey Equipment Replacement 40,288 40,288 - 40,288 - - 40,288 ENGF180013 Imagine Clearwater 84,661,322 84,661,322 - 84,661,322 72,149,959 12,381,871 129,492 Sub-Total 88,080,513 88,080,513 - 88,080,513 73,785,051 12,954,935 1,340,526 Libraries 93527 Books & Other Lib Materials 7,696,601 7,696,601 - 7,696,601 7,689,968 127 6,506 93530 Consolidated Eastside/SPC Libr 5,430,000 5,430,000 (129,392) 5,300,608 5,300,608 - - C 11 93532 Libr Maker Space Maint. & Up 282,560 282,560 - 282,560 227,620 367 54,573 93534 Library FF&E Repair & Replace 465,000 465,000 - 465,000 169,116 50 295,834 94861 Library Technology 1,550,000 1,550,000 - 1,550,000 1,321,171 - 228,829 C2211 Main Library Renovation 1,350,000 1,350,000 - 1,350,000 - 14,700 1,335,300 Sub-Total 16,774,161 16,774,161 (129,392) 16,644,769 14,708,483 15,245 1,921,041 Parks & Recreation 93133 Park Land Acquisition 1,977,351 1,977,351 - 1,977,351 1,968,186 3,200 5,965 93272 Bicycle Paths-Bridges 5,620,232 5,620,232 - 5,620,232 4,282,931 34,880 1,302,421 93602 Sp Events Equip Rep & Rplcmnt 410,000 410,000 - 410,000 323,389 - 86,611 93618 Miscellaneous Park & Rec Contract 1,185,000 1,185,000 - 1,185,000 608,882 301,706 274,412 93646 Rest Rm Expan-Barefoot Bch House 520,950 520,950 - 520,950 518,374 750 1,826 93667 Del Oro Park Renovations 2,686,000 2,686,000 - 2,686,000 2,626,579 24,506 34,915 C1904 Ruth Eckerd Hall 8,500,000 8,500,000 - 8,500,000 7,000,000 - 1,500,000 C2002 Ed Wright/Norton Park Renovations 839,110 855,272 - 855,272 - - 855,272 C2202 Long Center Major Reno 7,000,000 7,000,000 - 7,000,000 79,392 - 6,920,608 C2209 Neighborhood Park Renovations 400,000 400,000 - 400,000 - - 400,000 G2218 ARPA State Street Park Impv 700,000 700,000 - 700,000 - - 700,000 L1901 P&R Vehicle and Equip Additions 546,210 546,210 - 546,210 520,438 - 25,772 M2206 Parks & Beautification R&R 1,925,690 2,004,890 250,000 2,254,890 726,107 598,368 930,416 12 ENGF180007 Phillip Jones Park Renovations 224,726 224,726 - 224,726 64,044 54 160,628 Sub-Total 32,535,269 32,630,631 250,000 32,880,631 18,718,321 963,464 13,198,846 Cultural Services A1901 Miscellaneous Minor Public Art 227,079 227,079 - 227,079 124,833 102,246 A2201 Cultural Arts Plan 85,000 85,000 - 85,000 15,085 - 69,915 Sub-Total 312,078.62 312,079 - 312,079 139,918 - 172,160 28 CAPITAL IMPROVEMENT PROGRAM PROGRAM & STATUS SUMMARY THIRD QUARTER: October 1, 2022 to June 30, 2023 Actual Expenditures Budget Amended Revised Project Open Available Amend Description 10/1/23 Prev Qtr Amdmts Budget To Date Encumbrance Balance Status Ref Special Recreation Facilities 93410 Clwr Harbor Marina Maint R&R 447,500 447,500 - 447,500 390,095 - 57,405 93420 Fuel System R & R 272,752 272,752 - 272,752 168,573 - 104,178 93499 Pier 60/Sailing Center Maint 471,952 471,952 - 471,952 374,015 - 97,937 93642 Phillip-Jones Restroom/Concess 456,944 449,932 - 449,932 449,932 - (0) C 93650 Crest Lake Park Improvement 7,709,222 7,709,222 - 7,709,222 7,709,222 - - C C1905 Beach Marina Upgrade 15,992,258 15,992,258 - 15,992,258 969,590 645,372 14,377,296 C1906 Clw Harbor Marina Repl & Up 2,795,695 2,795,695 - 2,795,695 1,339,171 1,348,114 108,410 C2001 Athletic Flds & Fac Reno/Improve 8,500,000 8,500,000 - 8,500,000 - - 8,500,000 C2204 Soccer Reno EC Moore 100,000 100,000 - 100,000 - - 100,000 C2205 Enterprise Dog Park 260,000 250,849 - 250,849 250,849 - - C C2210 Sailing Center Dock Replacement 732,852 732,852 - 732,852 633,812 - 99,040 C2213 Athletic Field Shade Structures 700,000 770,000 - 770,000 722,595 - 47,406 M1902 Marine Fac Maint Dock R&R 614,970 614,970 - 614,970 456,396 22,990 135,584 M2204 Carpenter & BayCare R&R 2,404,483 2,404,483 - 2,404,483 1,165,254 112,427 1,126,801 M2205 Recreation Center R&R 1,218,101 1,218,101 1,218,101 366,372 55,318 796,411 M2207 Athletic Field R&R 1,367,568 1,367,568 - 1,367,568 166,359 11,906 1,189,303 M2208 Beach Walk/Pier 60 Park R&R 1,498,735 1,498,735 - 1,498,735 1,111,129 307,300 80,306 Sub-Total 45,543,031 45,596,868 - 45,596,868 16,273,364 2,503,427 26,820,077 TOTAL ALL PROJECTS 1,126,000,294 1,136,116,886 17,825,165 1,153,942,051 723,257,395 95,942,892 334,741,763 29 Increase/ Amdmt Program (Decrease)Intrafund Net Budget Number Number Amount Transfer Amount Description Amendment Public Safety Programs Foreclosure Registry - Nuisance Abatement 1 98609 3,100 To record a budget increase of $3,100.00 which represents foreclosure registry fees collected to date to bring the budget in line with actual receipts.3,100 Police Extra Duty 2 99215 415,981 To record a budget increase of $415,981.30 in police service revenue to bring the budget in line with actual receipts.415,981 Police Education Fund 3 99317 6,551 To record a budget increase of $6,550.69 in police education fine revenue which will bring the budget in line with actual receipts.6,551 Investigative Costs Recovery 4 99329 34,877 To record a budget increase of $34,876.71 in fines,forfeitures and penalties revenue to bring the budget in line with actual receipts. 34,877 Florida Contraband Forfeiture Fund 5 99330 33,320 To record a budget increase of $33,320.49 in fines,forfeitures and penalties revenue which will bring the budget in line with actual receipts.33,320 Vehicle Replacement Fund 6 99350 117,599 To record a budget increase of $90,977.64 in insurance reimbursements,and a transfer of $26,621.25 from 99215, Police Extra Duty for revenue collected for vehicle usage on extra duty jobs.117,599 Safe Neighborhood Program 7 99356 47,000 To record an increase of $47,000.00 transferred from 99330, Florida Contraband Forfeiture Fund to support community outreach programs.47,000 Crime Prevention Program 8 99364 5,585 To record a budget increase of $5,585.00 in donation revenues. This will bring the budget in line with actual receipts.5,585 Emergency Alert System - NEW PROGRAM 9 C2304 845,305 To establish the program and record a budget increase of $845,304.92 transferred from program D2001,Covid-19 Prep and Response, as approved by Council on August 3, 2023.845,305 Special Program Fund Third Quarter Amendments FY 2022/23 30 Increase/ Amdmt Program (Decrease)Intrafund Net Budget Number Number Amount Transfer Amount Description Amendment Special Program Fund Third Quarter Amendments FY 2022/23 Public Safety Programs (continued) Pedestrian/Bicycle Safety 2022 - CLOSE PROGRAM 10 G2110 (3,895) To record a budget decrease of $3,894.57 in grant revenue to bring the budget in line with revenues received and close completed program.(3,895) School Resource Officers (SRO) 11 P1801 409,507 To record a budget increase of $409,507.20 in reimbursement revenue from the Pinellas County School Board for the annual SRO agreement for the 2023/24 school year as approved by the Council on August 3, 2023.409,507 Mental Health Co-Responder Team 12 P2101 184,122 To record a budget increase of $184,122 in grant revenues from the Bureau of Justice Assistance for the following awards: 1)$144,000 for the 2022 Edward Byrne Discretionary Community Project Funding reimbursing the first year of the program;and 2)$40,122 for the 2022 Edward Byrne Memorial Justice Assistance Grant as approved by the Council on July 20, 2023.184,122 DEA Overtime Reimbursement 13 P2201 10,000 To record a budget increase of $10,000.00 in reimbursement revenue from the Drug Enforcement Agency (DEA)to account for special duty assignments.10,000 ESST Overtime Reimbursement - NEW PROGRAM 14 P2202 1,000 To record a budget increase of $1,000.00 in reimbursement revenue from the Florida Department of Law Enforcement (FDLE)to account for special duty assignments related to the Electronic Surveillance support Team (ESST).1,000 FBI Overtime Reimbursement 15 P2203 10,000 To record a budget increase of $10,000.00 in reimbursement revenue from the Federal Bureau of Investigation (FBI)to account for special duty assignments.10,000 Secret Service Overtime Reimbursement 16 P2204 10,000 To record a budget increase of $10,000.00 in reimbursement revenue from the US Secret Services Agency to account for special duty assignments.10,000 31 Increase/ Amdmt Program (Decrease)Intrafund Net Budget Number Number Amount Transfer Amount Description Amendment Special Program Fund Third Quarter Amendments FY 2022/23 Public Safety Programs (continued) PSO Countryside Christian - NEW PROGRAM 17 P2302 129,960 To establish the program,record a budget increase of $129,960.00 in reimbursement revenue and increase FTEs by 0.8 to implement the Police Safety Officer (PSO)program at Countryside Christen Academy as approved by Council on August 3, 2023. 129,960 Public Safety Program Totals:2,260,013 - 2,260,013 Physical Environment Programs Tree Replacement Program 18 99970 23,712 To record a budget increase of $23,712.00 in fines,forfeiture and penalties revenue to bring the budget in line with actual receipts.23,712 Physical Environment Program Totals:23,712 - 23,712 Economic Environment Programs Public Facilities 2021 - CLOSE PROGRAM 19 G2101 - (126,322) To record a budget transfer of $126,322.24 in Community Development Block Grant (CDBG)revenues to G2301,Public Facilities 2023 and close prior year program.(126,322) Public Facilities 2022 20 G2201 (100,000) To record budget transfers in Community Development Block Grant (CDBG)revenues of $80,000.00 to G2301,Public Facilities 2023; and $20,000.00 to G2402, Public Facilities 2024.(100,000) Economic Development 2022 21 G2202 (20,000) To record budget transfers in Community Development Block Grant (CDBG)revenues of $20,000.00 to G2402,Public Facilities 2024.(20,000) Program Administration 2022 - CLOSE PROGRAM 22 G2203 (27,221) To record a budget transfer of $27,221.05 in Community Development Block Grant (CDBG)revenues to G2402,Public Facilities 2024 and close prior year program.(27,221) 32 Increase/ Amdmt Program (Decrease)Intrafund Net Budget Number Number Amount Transfer Amount Description Amendment Special Program Fund Third Quarter Amendments FY 2022/23 Economic Environment Programs (Continued) Public Services 2022 - CLOSE PROGRAM 23 G2205 (40,687) To record a budget transfer of $40,687.18 in Community Development Block Grant (CDBG)revenues to G2301,Public Facilities 2023 and close prior year program.(40,687) Duke Energy ED Grant 24 G2209 25,000 To record a budget increase of $25,000 representing an additional year of grant funding from Duke Energy.25,000 Public Facilities 2023 25 G2301 67,009 To record the following budget transfers in Community Development Block Grant (CDBG)revenues:1)$126,322.24 from G2101,Public Facilities 2021;2)$40,687.18 from G2205, Public Services 2022;3)$80,000.00 from G2201,Public Facilities 2022;and 4)a transfer of $180,000.00 to G2402, Public Facilities 2024.67,009 Economic Development 2023 26 G2302 (225,000) To record budget transfers in Community Development Block Grant (CDBG)revenues of $26,863.44 to G2402,Public Facilities 2024,and $198,136.56 to G2403,Economic Development 2024.(225,000) Infill Housing 2023 - CLOSE PROGRAM 27 G2304 (135,000) To record a budget transfer of $135,000 in Community Development Block Grant (CDBG)revenues to G2405,Infill Housing 2024 and close prior year program.(135,000) Public Services 2023 - CLOSE PROGRAM 28 G2305 (30,000) To record budget transfers in Community Development Block Grant (CDBG)revenues of $5,043.95 to G2402,Public Facilities 2024,and $24.956.05 to G2405,Infill Housing 2024 and close prior year program.(30,000) Public Facilities 2024 - NEW PROGRAM 29 G2402 279,128 To establish the program and record the following transfers of Community Development Block Grant (CDBG)revenues:1) $20,000 from G2201,Public Facilities 2022;2)$20,000 from G2202,Economic Development 2022;3)$27,221.05 from G2203,Program Administration 2022;4)$180,000 from G2301,Public Facilities 2023;5)$26,863.44 from G2302, Economic Development 2023;and 6)$5,043.95 from G2305, Public Services 2023.279,128 33 Increase/ Amdmt Program (Decrease)Intrafund Net Budget Number Number Amount Transfer Amount Description Amendment Special Program Fund Third Quarter Amendments FY 2022/23 Economic Environment Programs (Continued) Economic Development 2024 - NEW PROGRAM 30 G2403 198,137 To establish the program and record a budget transfer of $198,136.56 in Community Development Block Grant (CDBG) revenues from G2302, Economic Development 2023.198,137 Infill Housing 2024 - NEW PROGRAM 31 G2405 159,956 To establish the program and record the following transfers of Community Development Block Grant (CDBG)revenues:1) $135,000 from G2304,Infill Housing 2023;and 2)$24,956.05 from G2305, Public Services 2023.159,956 Economic Environment Program Totals:25,000 - 25,000 Culture and Recreation Programs Library Special Account 32 99910 16,184 To record a budget increase of $16,183.50 in donation revenue to bring the budget in line with actual receipts.16,184 Clearwater for Youth Grants 33 G1907 22,252 To record a budget increase of $22,251.77 in donation revenue for youth programs.This will bring the budget in line with actual receipts.22,252 Special Events @ Coachman Park - NEW PROGRAM 34 PRSE230001 3,552 To record a budget increase of $3,552.38 in sales revenue received from opening events at Coachman Park to bring the budget in line with actual receipts.3,552 Culture and Recreation Program Total:41,988 - 41,988 2,350,712 - 2,350,712 Total Budget Increase/(Decrease): 34 Increase/ Amdmt Program (Decrease)Intrafund Net Budget Number Number Amount Transfer Amount Description Amendment Special Program Fund Third Quarter Amendments FY 2022/23 Intrafund/Interfund Transfers Fund Balance 27,509 To record a transfer of $27,509 from fund balance recognizing interest earned on ARPA revenue recovery funds.This revenue is transferred to the General Fund to direct costs in Economic Development for ARPA grant administration. Police Extra Duty 99215 26,621 To record a transfer of $26,621.25 to 99350,Vehicle Replacement,representing revenue collected for vehicle usage on extra duty jobs. Florida Contraband Forfeiture Fund 99330 47,000 To record a transfer of $47,000 in fines,forfeiture and penalty revenue to 99356, Safe Neighborhood Program. Covid-19 Prep & Response D2001 845,305 To record a transfer of $845,304.92 to special program C2304, Emergency Alert System,as approved by Council on August 3, 2023. Back-to-Business Grant Program - CLOSE PROGRAM G2011 2,122,502 To record a transfer of $2,122,502.38 in remaining General Fund revenues to capital project FD00190002,Fire Station 47 Replacement. This program is complete and will be closed. Economic Development 2023 G2302 127,190 To record a transfer of $127,190.00 to the General Fund to provide for demolition on the City's property at 1011 Engman Street as approved by Council on June 15, 2023. Total Interfund Transfers:3,196,128 35 SPECIAL PROGRAM STATUS SUMMARY THIRD QUARTER REVIEW: October 1, 2022 to June 30, 2023 Actual Expenditures Original Amended Revised Project Open Available Amend Description Budget Prev Qtr Amdmt Budget To Date Encumbr Balance Status Ref GENERAL GOVERNMENT PROGRAMS 99857 Stimulus-Elctrnc Plan Submit & Revw 289,000 289,000 - 289,000 149,927 - 139,073 99928 Nagano Sister City Program 378,899 378,899 - 378,899 188,470 - 190,429 M1913 Lien Foreclosure Program 850,984 1,169,784 - 1,169,784 557,703 - 612,082 M2101 Planning Studies Fund 1,025,000 1,025,000 - 1,025,000 396,753 62,172 566,075 Sub-Total 2,543,883 2,862,683 - 2,862,683 1,292,853 62,172 1,507,659 PUBLIC SAFETY PROGRAMS 98609 Foreclosure Registry-Nuisance Abtmnt 170,800 180,600 3,100 183,700 22,163 - 161,538 1 98610 Hurricane Irma 3,918,686 3,918,686 - 3,918,686 2,706,118 - 1,212,567 99215 Police Extra Duty 6,161,622 7,194,404 415,981 7,610,386 7,449,529 - 160,856 2 99279 Police Recruitments 261,010 261,010 - 261,010 109,002 - 152,008 99281 Fed Forfeitures - Treasury 195,885 196,485 - 196,485 141,189 19,389 35,906 99316 Police Volunteers 168,519 183,519 - 183,519 148,210 - 35,308 99317 Police Education Fund 1,445,364 1,463,289 6,551 1,469,839 1,304,567 - 165,272 3 99329 Investigative Recovery Costs 2,939,457 3,025,757 34,877 3,060,634 2,765,462 14,410 280,763 4 99330 FL Contraband Forfeiture Fund 1,158,234 1,282,358 33,320 1,315,678 1,181,028 - 134,651 5 99350 Vehicle Replacement Fund 771,971 859,648 117,599 977,247 528,097 - 449,150 6 99356 Safe Neighborhood Program 1,441,203 1,461,203 47,000 1,508,203 1,407,893 - 100,309 7 99364 Crime Prevention Program 241,674 247,024 5,585 252,609 237,161 - 15,449 8 99387 Federal Forfeiture Sharing 2,504,602 2,582,004 - 2,582,004 2,106,139 - 475,865 99927 Emergency Operations 4,328,870 4,328,870 - 4,328,870 3,267,559 6,954 1,054,357 99982 EMS Incentive/Recognition 69,700 69,700 - 69,700 41,088 - 28,612 C2304 Emergency Alert System - - 845,305 845,305 1,494,379 - (649,074) 9 D2001 COVID-19 Prep & Response 1,981,240 1,981,240 - 1,981,240 1,494,379 - 486,861 G2110 Pedestrian/Bicycle Safety Grant 2022 46,455 46,455 (3,895) 42,560 42,560 - (0) C 10 G2208 Pedestrian/Bicycle Safety Grant 2023 - 21,836 - 21,836 24,184 - (2,348) P1801 School Resource Officers 2,266,427 2,922,016 409,507 3,331,523 2,695,194 - 636,329 11 P2002 Police Body Worn Camera Program 882,922 882,922 - 882,922 812,924 - 69,998 P2101 Mental Health Co-Responder Team 393,800 398,300 184,122 582,422 361,375 - 221,047 12 P2201 DEA OT Reimbursement Program 20,000 35,000 10,000 45,000 32,073 - 12,927 13 P2202 ESST OT Reimbursement Program 2,000 2,000 1,000 3,000 1,471 - 1,529 14 P2203 FBI OT Reimbursement Program 20,000 35,000 10,000 45,000 33,456 - 11,544 15 P2204 Secret Service OT Reimb Program 20,000 35,000 10,000 45,000 32,633 - 12,367 16 P2301 The Sound Acoustic Study - 168,500 - 168,500 - 153,183 15,317 P2302 PSO - Countryside Christian - - 129,960 129,960 - - 129,960 17 Sub-Total 31,410,441 33,782,826 2,260,013 36,042,838 30,439,832 193,937 5,409,069 PHYSICAL ENVIRONMENT PROGRAMS 99970 Tree Replacement Program 1,996,074 2,035,074 23,712 2,058,786 1,062,966 - 995,820 18 Sub-Total 1,996,074 2,035,074 23,712 2,058,786 1,062,966 - 995,820 ECONOMIC ENVIRONMENT PROGRAMS 99802 Brownfield Revolving Loan 1,216,732 1,216,732 - 1,216,732 420,381 - 796,351 99846 Economic Development - QTI 166,879 166,879 - 166,879 71,591 - 95,288 G2010 CDBG-CV Fund 1,549,338 1,549,338 - 1,549,338 671,040 537,890 340,409 G2011 Back to Business Grant Program 3,550,000 3,550,000 - 3,550,000 3,550,000 - - C G2101 Public Facilities 2021 690,825 690,825 (126,322) 564,503 564,503 - - C 19 M2009 Afford Housing & Comm Development 290,853 290,853 - 290,853 16,913 - 273,940 M2105 ED Strategic Plan 153,896 153,896 - 153,896 - - 153,896 G2201 Public Facilities 2022 670,471 670,471 (100,000) 570,471 552,277 11,327 6,867 20 G2202 Economic Development 2022 110,246 110,246 (20,000) 90,246 72,603 608 17,036 21 G2203 Program Administration 2022 211,771 211,771 (27,221) 184,550 184,525 25 - C 22 G2205 Public Services 2022 233,512 233,512 (40,687) 192,825 192,825 - - C 23 G2207 Brownfield MAC Grant - 300,000 - 300,000 53,565 63,821 182,614 G2209 Duke Energy ED Grant 25,000 25,000 25,000 50,000 22,200 - 27,800 24 36 SPECIAL PROGRAM STATUS SUMMARY THIRD QUARTER REVIEW: October 1, 2022 to June 30, 2023 Actual Expenditures Original Amended Revised Project Open Available Amend Description Budget Prev Qtr Amdmt Budget To Date Encumbr Balance Status Ref - - - ECONOMIC ENVIRONMENT PROGRAMS (CONTINUED)- - - G2210 ARPA North Greenwood CRA 5,000,000 5,000,000 - 5,000,000 - - 5,000,000 G2212 ARPA Affordable Housing 3,300,000 3,300,000 - 3,300,000 1,280,595 - 2,019,405 G2219 ARPA Business Incubator 250,000 250,000 - 250,000 - - 250,000 G2301 Public Facilities 2023 636,582 636,582 67,009 703,591 251,586 444,209 7,797 25 G2302 Economic Development 2023 460,575 460,575 (225,000) 235,575 148,515 80,175 6,885 26 G2303 Program Administration 2023 179,495 179,495 - 179,495 149,748 29,584 163 G2304 Infill Housing 2023 135,000 135,000 (135,000) - - - - C 27 G2305 Public Services 2023 134,621 134,621 (30,000) 104,621 92,779 11,842 - C 28 G2402 Public Facilities 2024 - - 279,128 279,128 558,257 837,385 (1,116,514) 29 G2403 Economic Development 2024 - - 198,137 198,137 396,273 594,410 (792,546) 30 G2404 Program Administration 2024 - - - - - - - G2405 Infill Housing 2024 - - 159,956 159,956 319,912 479,868 (639,824) 31 G2406 Public Services 2024 - - - - - - - Sub-Total 18,965,797 19,265,797 25,000 19,290,797 9,570,088 3,091,142 6,629,567 HUMAN SERVICES PROGRAMS 98601 Next Steps to Better Nutrition 9,000 9,000 - 9,000 6,671 - 2,329 98607 Senior Citizens Services - Trips 14,000 14,000 - 14,000 13,960 - 40 99562 HUD Special Education 30,000 30,000 - 30,000 27,600 - 2,400 99844 United Way 18,080 18,080 - 18,080 12,431 - 5,649 99869 Health Prevention Program 190,269 190,269 - 190,269 180,134 - 10,135 G2107 JWB Youth Programming 1,196,323 1,665,220 - 1,665,220 1,131,860 - 533,361 G2215 ARPA Pinellas Community Foundation 1,000,000 1,000,000 - 1,000,000 262,748 737,252 - G2216 ARPA Non-profit Grants 1,000,000 1,000,000 - 1,000,000 571,150 - 428,850 G2217 ARPA Education Grants & Partnerships 750,000 750,000 - 750,000 375,000 375,000 - M2209 Opioid Settlement Funds - 135,281 - 135,281 - - 135,281 Sub-Total 4,207,672 4,811,850 - 4,811,850 2,581,554 1,112,252 1,118,045 CULTURE AND RECREATION PROGRAMS 98608 Clark-Turner Trust (Library)106,077 106,077 - 106,077 - - 106,077 99910 Library Special Account 910,161 940,394 16,184 956,577 924,913 - 31,664 32 C2303 Library - Machan Estate - 1,176,297 - 1,176,297 - - 1,176,297 G1907 Clearwater for Youth Grants 70,095 78,327 22,252 100,579 44,937 - 55,643 33 PRSE190001 Special Events 2,899,058 3,048,251 - 3,048,251 2,842,645 - 205,606 PRSE230001 Special Events @ Coachman Park - 610,620 3,552 614,172 118,690 171,543 323,940 34 Sub-Total 3,985,391 5,959,966 41,988 6,001,954 3,931,184 171,543 1,899,227 TOTAL ALL PROJECTS 63,109,258 68,718,196 2,350,712 71,068,908 48,878,477 4,631,045 17,559,387 37 City of Clearwater SPECIAL DEVELOPMENT FUND Third Quarter FY 2022/23 Increase/ (Decrease)Description Revenues Ad Valorem Taxes 54,408 An increase in ad valorem taxes to bring the budget in line with actual receipts for the year. Local Option Gas Tax 122,850 An increase in Local Option Gas Tax revenues to bring the budget in line with anticipated receipts for the year. Open Space Fees 27,363 An increase in open space fees to bring the budget in line with actual receipts for the year. Recreation Facility Impact Fees 8,327 An increase in recreation facility impact fees to bring the budget in line with actual receipts for the year. Recreation Land Impact Fees 67,258 An increase in recreation land impact fees to bring the budget in line with actual receipts for the year. Interest Earnings 350,000 An increase in interest earnings to bring the budget in line with anticipated receipts for the year. Fee in Lieu of Sidewalks 49,650 An increase in fee in lieu of sidewalks to bring the budget in line with actual receipts for the year. Multi-Modal Impact Fees 213,000 An increase in Multi-Modal Impact Fees to bring the budget in line with actual receipts for the year. 892,856$ Net Revenue Amendments Expenditures Transfer to Capital Improvement Fund - No Amendments are proposed to Special Development Fund expenditures at third quarter. -$ Net Expenditure Amendments 38 SPECIAL REVENUE FUNDS Third Quarter: October 1, 2022 - June 30, 2023 Original First Quarter Mid Year Third Quarter Budget Amended Budget Amended Budget Amended Budget 2022/23 2022/23 2022/23 2022/23 Amendments Revenues: Ad Valorem Taxes 4,050,410 4,050,410 4,050,410 4,104,818 54,408 Infrastructure Tax 16,441,000 16,441,000 16,441,000 16,441,000 - Interest Earnings 450,000 450,000 450,000 800,000 350,000 Open Space Fees - - - 27,363 27,363 Recreation Facility Impact Fees - - - 8,327 8,327 Recreation Land Impact Fees - - - 67,258 67,258 Fee in Lieu of Sidewalks - - - 49,650 49,650 Fee in Lieu of Drainage - - - - - Multi-Modal Impact Fees 140,000 140,000 140,000 353,000 213,000 Local Option Gas Tax 1,327,150 1,327,150 1,327,150 1,450,000 122,850 Allocation of Assigned Fund Balance 6,507,630 6,586,830 6,586,830 6,586,830 - 28,916,190 28,995,390 28,995,390 29,888,246 892,856 Expenditures: Transfer to Capital Improvement Fund - Road Millage 4,050,410 4,050,410 4,050,410 4,050,410 - Infrastructure Tax 22,948,630 22,948,630 22,948,630 22,948,630 - Recreation Facility Impact Fees - 79,200 79,200 79,200 - Multi-Modal Impact fees 140,000 140,000 140,000 140,000 - Local Option Gas Tax 1,327,150 1,327,150 1,327,150 1,327,150 - 28,466,190 28,545,390 28,545,390 28,545,390 - SPECIAL DEVELOPMENT FUND 39 SPECIAL REVENUE FUNDS Third Quarter: October 1, 2022 - June 30, 2023 Original First Quarter Mid Year Third Quarter Budget Amended Budget Amended Budget Amended Budget 2022/23 2022/23 2022/23 2022/23 Amendments Revenues: CDBG Program Income 897,475 897,475 897,475 897,475 - Interest Earnings 125,000 133,091 133,091 133,091 - Intergovernmental Revenue - 1,267,147 1,366,566 1,987,300 620,735 Charges for Service Revenue - 696,016 1,042,583 1,461,664 419,081 Judgments, Fines and Forfeit Revenue - 498,680 583,779 682,239 98,460 Miscellaneous Revenue - 169,614 1,389,387 1,682,897 293,510 Transfers from General Fund:- - 779,120 779,120 - Sister City Program 37,380 37,380 37,380 37,380 - Planning Study Fund 275,000 275,000 275,000 275,000 - United Way Campaign Fund 1,500 1,500 1,500 1,500 - Special Events 70,000 185,200 185,200 185,200 - Police Recruitments 30,000 30,000 30,000 30,000 - Police Mental Health Co-Responder Te 143,200 143,200 147,700 147,700 - Transfers from Special Programs - 283,834 319,713 1,238,639 918,926 1,579,555 4,618,138 7,188,493 9,539,205 2,350,712 Expenditures: General Government 312,380 631,180 631,180 631,180 - Public Safety 173,200 1,812,843 2,545,585 4,805,597 2,260,013 Physical Environment - 30,528 39,000 62,712 23,712 Economic Environment 498,117 798,117 798,117 823,117 25,000 Human Services 1,500 605,678 605,678 605,678 - Culture and Recreation 70,000 215,433 2,044,575 2,086,563 41,988 Interfund Transfers 399,358 399,358 399,358 399,358 - Transfer to Capital Fund 50,000 50,000 50,000 50,000 - 1,504,555 4,543,138 7,113,493 9,464,205 2,350,712 Revenues: HOME Investment Partnerships 509,528 509,528 509,528 509,528 - State Housing Initiatives Partnerships 781,532 781,532 781,532 781,532 - Total - HOME/SHIP Funds 1,291,060 1,291,060 1,291,060 1,291,060 - Expenditures: Economic Environment 988,161 988,161 988,161 988,161 - Interfund Transfers 302,899 302,899 302,899 302,899 - Total - HOME/SHIP Programs 1,291,060 1,291,060 1,291,060 1,291,060 - SPECIAL PROGRAM FUND OTHER HOUSING ASSISTANCE FUNDS 40 ADMINISTRATIVE CHANGE ORDERS Third Quarter Review FY 2022/23 41 In accordance with City of Clearwater Code Section 2.554(6), the City Manager may approve and execute change orders without City Council approval within certain limitations. The following change orders have been administratively approved since the last report to the Council based on the code specified criteria: 1. The city manager may increase any contract up to a total award of one hundred thousand dollars ($100,000.00). 2. The city manager may approve any increase of contract up to a maximum of ten percent (10%) over the most recent award of the city council. 3. No contract price increase shall be approved unless sufficient funds are available for such purpose. 4. Contract price decreases may be approved without limitation. 5. The time for completion may be extended up to ninety (90) days, in any one change or cumulatively for the same project, beyond the most recent city council approved completion time. ***** 05/30/23 Administrative Change Order #1 – Imagine Clearwater Enabling Work GMP 1 (17-0031-EN2). This change order increases and decreases items in accordance with field conditions resulting in a net decrease to the contract. Skanska USA Building, Inc. (74,523.58) 05/30/23 Administrative Change Order #2 – Imagine Clearwater Sitework GMP 2 (17-0031-EN2). This change order increases and decreases items in accordance with field conditions resulting in a net decrease to the contract. Skanska USA Building, Inc. (813,323.88) 05/30/23 Administrative Change Order #1 – WTP3 East Dome and Aerator and Misc. Improvements (20-0012-UT). This change order increases and decreases items in accordance with field conditions resulting in a net zero change to the contract. Razorback, LLC 0.00 06/28/23 Administrative Change Order #1 – MS WRF Process Control Gates Repair (18-0047-UT). This change order increases and decreases items in accordance with field conditions resulting in a net increase to the contract. Poole & Kent, Co. 316,157.82 ADMINISTRATIVE CHANGE ORDERS Third Quarter Review FY 2022/23 42 07/18/23 Administrative Change Order #1 – Municipal Parking Garage Rehabilitation (18-0032-EN). This change order increases, decreases and adds items in accordance with field conditions resulting in a net decrease to the contract. Restocon Corp. (165,416.80) 08/28/23 Administrative Change Order #5 – Cleveland Street Streetscape Phase 3 & Festival Core (16-0003-EN). This change order increases, decreases and adds items in accordance with field conditions resulting in a net-zero change to the contract. Gibbs & Register, Inc. (0.00) Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: 9717-23 2nd rdg Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: OrdinanceIn Control: City Attorney Agenda Number: 7.6 SUBJECT/RECOMMENDATION: Adopt Ordinance 9717-23 on second reading, amending the Capital Improvement Budget for the fiscal year ending September 30, 2023, to reflect an increase of $17,825,168. Page 1 City of Clearwater Printed on 1/23/2024 46 Ordinance #9717-23 ORDINANCE NO. 9717-23 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, AMENDING THE CAPITAL IMPROVEMENT BUDGET FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2023, TO REFLECT AN INCREASE OF $17,825,168 PROVIDING AN EFFECTIVE DATE. WHEREAS, the Capital Improvement Budget for the fiscal year ending September 30, 2023 was adopted by Ordinance No. 9616-22; and WHEREAS, Section 2.519 of the Clearwater Code authorizes the City Council to provide for the expenditure of money for proper purposes not contained in the budget as originally adopted due to unforeseen circumstances or emergencies arising during the fiscal year; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA; Section 1. Section 1 of Ordinance No. 9616-22 is amended to read: Pursuant to the Third Quarter Amended Capital Improvement Program Report and estimated budget for the fiscal year beginning October 1, 2022, and ending September 30, 2023, a copy of which is on file with the City Clerk, the City Council hereby adopts a Third Quarter Amended budget for the capital improvement fund for the City of Clearwater, a copy of which is attached hereto as Exhibit A. Section 2. This ordinance shall take effect immediately upon adoption. PASSED ON FIRST READING _____________________ PASSED ON SECOND AND FINAL _____________________ READING AND ADOPTED ___________________________ Brian J. Aungst Sr., Mayor Approved as to form: Attest: ______________________________ ____________________________ David Margolis, City Attorney Rosemarie Call, City Clerk First Qtr.Mid-Year Third Qtr. Original Amended Amended Amended Budget Budget Budget Budget 2022/23 2022/23 2022/23 2022/23 Amendments Other General Government 22,981,700 22,972,902 23,112,902 38,352,902 15,240,000 Police Protection 305,000 305,000 305,000 305,000 - Fire Protection 1,044,250 1,001,616 1,001,616 3,253,510 2,251,894 Fire Rescue Services 538,000 580,634 580,634 580,634 - Gas Utility Services 13,625,000 13,775,913 13,803,831 13,866,494 62,663 Solid Waste Services 450,000 265,000 239,646 239,646 - Water-Sewer Services 30,500,040 33,914,415 32,778,867 32,778,867 - Flood Protection/Stormwater Mgmt 6,958,010 6,958,010 6,958,010 6,958,010 - Other Physical Environment 570,000 570,000 570,000 720,000 150,000 Road and Street Facilities 10,451,650 10,451,650 10,482,596 10,482,596 - Airports 275,000 275,000 2,325,000 2,325,000 - Water Transportation Systems 150,000 150,000 150,000 150,000 - Parking Facilities 11,179,000 11,332,591 11,332,591 11,332,591 - Other Transportation 56,500 56,500 56,500 56,500 - Libraries 735,000 735,000 735,000 605,608 (129,392) Parks & Recreation 4,065,000 4,160,363 4,160,363 4,410,363 250,000 Cultural Services 40,000 40,000 40,000 40,000 - Special Recreation Facilities 21,338,030 21,391,867 21,391,867 21,391,867 - TOTAL PROJECT EXPENDITURES 125,262,180 128,936,461 130,024,423 147,849,588 17,825,165 GENERAL SOURCES: General Operating Revenue 14,819,980 14,819,980 14,819,980 32,582,482 17,762,502 Penny for Pinellas 22,948,630 22,948,630 22,948,630 22,948,630 - Road Millage 4,050,410 4,050,410 4,050,410 4,050,410 - Local Option Gas Tax 1,327,150 1,327,150 1,327,150 1,327,150 - Grants 200,000 662,000 1,166,452 1,166,452 - County Fire Reimbursements 340,170 340,170 340,170 340,170 - Other Governmental - 2,952,375 2,952,375 2,952,375 - Special Program Fund 50,000 50,000 50,000 50,000 - Multi-Modal Impact Fee 140,000 140,000 140,000 140,000 - Recreation Facility Impact Fee - 79,200 79,200 79,200 - Donations - 70,000 70,000 70,000 - Other - 21,156 21,156 21,156 - Reimbursements - - 170,946 170,946 - EXHIBIT A CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2022/23 47 Ordinance # 9717-23 First Qtr.Mid-Year Third Qtr. Original Amended Amended Amended Budget Budget Budget Budget 2022/23 2022/23 2022/23 2022/23 Amendments EXHIBIT A CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2022/23 SELF SUPPORTING FUNDS: Parking Revenue 11,295,000 11,448,591 11,448,591 11,448,591 - Marine Revenue 1,400,000 1,400,000 1,400,000 1,400,000 - Clearwater Harbor Marina Revenue 175,000 175,000 175,000 175,000 - Airpark Revenue 75,000 75,000 485,000 485,000 - Water Revenue 10,606,750 10,606,750 10,606,750 10,606,750 - Sewer Revenue 11,691,790 11,691,790 11,691,790 11,691,790 - Utility R&R 12,225,590 12,225,590 12,225,590 12,225,590 - Water Impact Fees 160,000 160,000 160,000 160,000 - Sewer Impact Fees 50,000 50,000 50,000 50,000 - Stormwater Utility Revenue 6,958,010 6,958,010 6,958,010 6,958,010 - Gas Revenue 13,625,000 13,775,913 13,803,831 13,866,494 62,663 Solid Waste Revenue 450,000 450,000 450,000 450,000 - INTERNAL SERVICE FUNDS: Garage Revenue 260,000 260,000 260,000 260,000 - Administrative Services Revenue 1,900,000 1,900,000 1,900,000 1,900,000 - General Services Revenue 100,000 100,000 100,000 100,000 - Central Insurance Revenue 172,000 172,000 172,000 172,000 - - BORROWING - GENERAL SOURCES: Lease Purchase - General Fund - - - - - BORROWING - SELF SUPPORTING FUNDS: Lease Purchase - Solid Waste/Recycling - (185,000) (210,354) (210,354) - BORROWING - INTERNAL SERVICE FUNDS: Lease Purchase - Garage 9,791,700 9,761,746 9,761,746 9,761,746 - Lease Purchase - Administrative Services 450,000 450,000 450,000 450,000 - TOTAL ALL FUNDING SOURCES:125,262,180 128,936,461 130,024,423 147,849,588 17,825,165 48 Ordinance # 9717-23 Third Quarter Budget Review Fiscal Year 2022-23 Memorandum TO: Mayor and City Council FROM: Jennifer Poirrier, City Manager COPIES: Michael Delk, Assistant City Manager Daniel Slaughter, Assistant City Manager SUBJECT: Third quarter budget review - amended City Manager's annual budget report DATE: September 1, 2023 Attached is the third quarter budget review in accordance with the City Code of Ordinances. This report is based on the first nine months of activity in the current fiscal year (October 2022 through June 2023). Contained within are comments on major variances and documentation of all proposed amendments. Significant Fund amendments are outlined below: General Fund General Fund revenue and expenditure amendments reflect a net increase of $16,517,292. The General Fund expenditure increase at third quarter includes the Council approved appropriation of $240,000 of General Fund reserves to fund the City Hall Demolition project. With the approval of the new City Hall concept plan, amendments include an allocation of $15,000,000 of General Fund reserves transferring $10,000,000 to establish the MSB Renovations project and $5,000,000 to the New City Hall project. Other amendments include an increase which totals $813,043 to police and fire supplemental pension to bring the budget in line with actual revenues and expenditures; an increase of $100,000 in the City Manager’s office budget to fund severance payments; an increase of $27,509 in Economic Development & Housing for administrative costs for grant administration offset by revenues recognizing a transfer of interest earnings from ARPA revenue recovery funds; an increase of $209,550 for retirement payouts in the Fire Department; and an increase of $127,190 in Non-Departmental for land development costs offset by revenues transferred from the special program fund. At third quarter, various revenues are amended to bring the budget in line with anticipated receipts for the year. Adjusted for expenditure increases noted above this results in a net revenue surplus of $5,754,684 anticipated for the year. This surplus reduces the approved use of reserves noted above resulting in an estimated net use of $10,275,306 of fund reserves for the fiscal year. General Fund Reserves – In order to ensure adequate reserves, the City Council’s policy reflects that General Fund unappropriated fund reserves of 8.5% of the City’s budgeted General Fund expenditures must be maintained as a reserve to guard against future emergencies. Third Quarter Budget Review Fiscal Year 2022-23 Estimated General Fund reserves at third quarter are approximately $47.6 million, or 23.9% of the preliminary fiscal year 2023/24 General Fund expenditure budget, exceeding our minimum reserve requirement by $30.6 million. Significant amendments to other city operating funds are noted as follows: Parking Fund Amendments to Parking Fund expenditures reflect an increase of $133,265. Overtime costs for the beach guards are increased by $8,265 which is offset by reimbursement revenues from Ruth Eckerd Hall for event coverage by emergency medical technicians at The Sound; and operating expenses for parking operations (contractual services and operating supplies) are increased by a total of $125,000 offset by increased parking revenues anticipated for the year. Capital Improvement Program Third quarter amendments to the capital improvement program reflect a net increase of $17,825,165. Amendments previously approved by Council include an increase of $240,000 in General Fund revenues for the City Hall Demolition project. Amendments also include increases of General Fund revenues of $5,000,000 to the New City Hall project and $10,000,000 to the new MSB Renovations project to fund the approved City Hall concept plan. Project activity not previously approved by the Council is summarized on page 21. Significant amendments include an increase of $62,663 to property owners share revenue in the Pinellas New Mains/Service Lines project; an increase of $150,000 in General Fund revenue in the Clearwater Municipal Cemetery Renovation project; and $250,000 General Fund revenue in the Parks & Beautification R&R project. Special Program Fund The Special Program Fund reflects a net budget increase of $2,350,712 at third quarter. Significant amendments include an increase of $620,735, in public safety grant/governmental revenues for the 23/34 School Resource Officer agreement, grant funding for the Mental Health Co-Responder program and agency assistance programs; $415,981 in contractual service revenue for police extra duty; $129,960 in reimbursement revenue for the Police Safety Officer program at Countryside Christian; $44,020 in donation revenues to support Police, Library, and youth programs in Parks and Recreation; $25,000 for the second year of the Duke Energy Economic Development grant program; $3,100 in foreclosure registry fees collected; $98,460 in fines and court proceeds for public safety programs, and the tree replacement program; $90,978 in insurance reimbursements in the Police Vehicle Replacement program; $3,552 in special events revenues; and $918,926 transferred between existing special programs. CITY OF CLEARWATER THIRD QUARTER SUMMARY 2022/23 FY 22/23 Mid Variance % Adopted Year Third Qtr.YTD Actual vs.YTD vs.Third Qtr.Amended Description Budget Amended Actual Amend Budget Budget Adjustment Budget General Fund: Revenues 183,629,760 184,419,750 155,319,536 29,100,214 84%16,517,292 200,937,042 Expenditures 183,629,760 184,419,750 136,397,166 48,022,584 74%16,517,292 200,937,042 Utility Funds: Water & Sewer Fund Revenues 106,880,100 106,880,100 81,870,082 25,010,018 77%- 106,880,100 Expenditures 100,828,010 100,828,010 83,577,868 17,250,142 83%- 100,828,010 Stormwater Fund Revenues 17,714,840 17,714,840 13,841,168 3,873,672 78%- 17,714,840 Expenditures 16,791,710 16,791,710 13,983,579 2,808,131 83%- 16,791,710 Gas Fund Revenues 59,832,340 59,832,340 39,200,241 20,632,099 66%- 59,832,340 Expenditures 59,832,340 59,832,340 39,299,792 20,532,548 66%- 59,832,340 Solid Waste and Recycling Fund Revenues 30,381,600 30,381,600 25,140,556 5,241,044 83%- 30,381,600 Expenditures 28,437,980 29,137,980 19,198,357 9,939,623 66%- 29,137,980 Enterprise Funds: Marine Fund Revenues 7,038,640 7,038,640 5,408,482 1,630,158 77%- 7,038,640 Expenditures 7,038,640 7,038,640 5,404,458 1,634,182 77%- 7,038,640 Airpark Fund Revenues 406,990 773,990 246,834 527,156 32%- 773,990 Expenditures 406,990 773,990 601,429 172,561 78%- 773,990 Clearwater Harbor Marina Fund Revenues 1,003,610 1,003,610 763,194 240,416 76%- 1,003,610 Expenditures 1,003,610 1,003,610 778,086 225,524 78%- 1,003,610 Parking Fund Revenues 18,867,130 18,867,130 9,022,315 9,844,815 48%133,265 19,000,395 Expenditures 18,867,130 18,867,130 16,550,205 2,316,925 88%133,265 19,000,395 Internal Service Funds: General Services Fund Revenues 6,498,650 6,498,650 4,910,582 1,588,068 76%- 6,498,650 Expenditures 6,462,980 6,462,980 4,426,020 2,036,960 68%- 6,462,980 Administrative Services Revenues 16,150,270 16,150,270 12,077,722 4,072,548 75%- 16,150,270 Expenditures 16,069,230 16,069,230 10,992,059 5,077,171 68%- 16,069,230 Garage Fund Revenues 19,533,130 19,533,130 12,931,283 6,601,847 66%- 19,533,130 Expenditures 19,470,400 19,470,400 11,045,337 8,425,063 57%- 19,470,400 Central Insurance Fund Revenues 35,753,700 35,753,700 24,848,010 10,905,690 69%- 35,753,700 Expenditures 35,752,330 35,752,330 25,158,267 10,594,063 70%- 35,752,330 1 THIRD QUARTER REVIEW AMENDED CITY MANAGER'S FISCAL YEAR 2022-23 REPORT PAGE # General Fund Operating Budget ..................................................................................................... 3 Utility Funds Operating Budget ...................................................................................................... 9 Other Enterprise Funds Operating Budgets ................................................................................. 13 Internal Service Funds Operating Budgets ................................................................................... 17 Capital Improvement Program Budget ........................................................................................ 21 Special Program Fund Budget ....................................................................................................... 30 Special Development Fund ........................................................................................................... 38 Administrative Change Orders ...................................................................................................... 41 Ordinances ..................................................................................................................................... 43 The amended 2022/23 operating budget, presented by operating fund and/or department, is submitted for the City Council review. The actual and projected data contained in this review represents nine months, October 1, 2022, through June 30, 2023. The adjustments, however, represent all data available at the time of the report, including action taken by the City Council after June 30, 2023. Definitions associated with the operating funds information is presented as follows: Definitions: Adopted Budget - The budget as adopted by the City Council on October 6, 2022. Variance YTD Actual vs. Adopted Budget - Difference between year to date actual and adopted budget. % YTD vs. Budget - Percentage of adopted budget expended, year to date. Proposed Amendments - Adjustments that have been approved by the City Council, made at the Manager’s discretion, and/or adjustments proposed based on this quarter’s review. Amended Budget - Adding the Original Budget and Adjustments. 2 Capital Improvement Program The amended 2022/23 Capital Improvement Projects budget report is submitted for the City Council review. This review provides the opportunity to analyze the status of all active projects and present formal amendments to the project budget. The Capital Improvement Program and Special Program fund information is presented as follows: Definitions: Budget - The budget as of October 1, 2022, which includes project budgets from prior years, which have not been completed. Amendment - Amendments which have been approved by the City Council, made at the Manager's discretion, and/or adjustments proposed based on this quarter’s review. Revised Budget - Adding the Budget and Amendment columns. Encumbrance - Outstanding contract or purchase order commitment. Available Balance - Difference between revised budget and expenditure, plus encumbrance. Status - C - project is completed. Amend Ref - Reference number for description of amendment. Increase/ (Decrease)Description 1,079,500 At third quarter,approximately all property tax revenue has been received.The budget is increased by $1,079,500.00 to reflect actual collections to date. 1,290,090 At third quarter,utility tax revenues are increased by $1,290,090.00.Amendments reflect the following:1)an increase of $983,560.00 to electric utility;2)an increase of $300,000.00 to water utility;3)a decrease of $20,000.00 to gas utility;and 4)an increase of $26,530.00 to propane utility taxes.All of these will bring the budget in line with anticipated receipts for the year. (200,000) At third quarter,local business tax receipts are decreased by $200,000.00 to bring the budget in line with anticipated receipts for the year. 806,100 At third quarter,electric franchise fee revenues are increased by $773,040.00 and gas franchise fees are increased by $33,060.00.This will bring the budget in line with anticipated receipts for the year. (245,000) Third quarter amendments to other permits and fees revenues include a decrease of $300,000.00 to building/sign permit revenues,and an increase to forfeited permit fees of $55,000.00 to bring the budget in line with anticipated receipts for the year. 1,520,863 Third quarter amendments to other governmental revenue reflect a net increase $1,520,863.00 to bring the budget in line with anticipated revenues.Amendments include the following:1)an increase of $837,820.00 to state revenue sharing;2)an increase of $813,043.00 to public safety supplemental pension revenue which offset expenditure amendments in the Police and Fire Departments;and 3)a decrease of $130,000.00 to EMS Tax. Local Option, Fuel & Other Taxes Intergovernmental Other Permits and Fees Franchise Fees City of Clearwater General Fund RevenuesThird Quarter Amendments FY 2022/23 Utility Taxes Ad Valorem Taxes 3 Increase/ (Decrease)Description City of Clearwater General Fund RevenuesThird Quarter Amendments FY 2022/23 425,000 Third quarter amendments to charges for service revenues reflect increases totaling $425,000.00 to Pier 60 revenues. 2,200,724 Third quarter amendments to miscellaneous revenue reflect a net increase $2,200,724.00.Amendments include the following:1)an increase of $1,000,000.00 to interest earnings;2)an increase of $1,000,000.00 to beach rental contracts;and 3)an increase of $200,724.00 to surplus land sales for the North Garden Avenue property. 154,699 Third quarter amendments to transfer in revenues reflect a net increase of $154,699.00.Amendments include the following increases:1)$127,190.00 to recognize Community Development Block Grant funding from special program G2302,Economic Development 2023,as approved by the Council on June 15,2023;and 2) $27,509.00 from the special program fund to offset expenditures for grant administration software in Economic Development and Housing. Third quarter amendments reflect the appropriation of $9,485,316.00 from General Fund retained earnings. Amendments include the following: 240,000 1)An appropriation of $240,000.00 from fund reserves to provide additional funding for capital project C2212,City Hall Demolition as approved by the Council on June 15, 2023. 15,000,000 2)A total appropriation of $15,000,000.00 from fund reserves to provide funding for the New City Hall conceptual design plan,distributed as follows: $10,000,000.00 to establish capital improvement project C2306,MSB Renovations,and $5,000,000.00 to capital improvement project ENGF220001,New City Hall as approved by the Council on June 15, 2023. Transfers In Miscellaneous Charges for Service Transfer (to) from Surplus 4 Increase/ (Decrease)Description City of Clearwater General Fund RevenuesThird Quarter Amendments FY 2022/23 (5,754,684) 3)Third quarter amendments reflect a net surplus of $5,754,684.This represents the net of revenue amendments noted above and expenditure amendments and will reduce the use of reserves authorized for this quarter. 9,485,316 16,517,292 Net General Fund Revenue Amendment Net Transfer (to) from Retained Earnings Transfer (to) from Surplus (continued) 5 Increase/(Decrease)Description 100,000 Amendments to City Manager expenditures reflect an increase of $100,000.00 to fund severance payouts as provided in employment agreements. - Third quarter amendments to CRA Administration include the recognition of one additional FTE (CRA Specialist)as approved by CRA trustees on June 12,2023.A funding adjustment is not required for this additional position as sufficient funding is available in the interlocal agreement. 27,509 At third quarter,Economic Development and Housing expenditures reflect an increase of $27,509.00 to fund grant administration software offset by revenues recognizing the use of ARPA interest. 772,824 Third quarter amendments to Fire Department reflect a net increase of $772,824.00.Amendments include:1)an increase of $563,274.00 to Fire supplemental pension plans,which is offset by an amendment increasing supplemental pension revenue;and 2)an increase of $209,550.00 to salaries &wages to fund retirements in the Fire Department. - Third Quarter amendments to Parks &Recreation expenditures reflect net zero amendments totaling $400,000.00. Amendments include:1)a transfer of $150,000.00 in salary savings to capital project M2210,Clearwater Municipal Cemetery Renovations;and 2)a transfer of $250,000.00 in budget savings to capital project M2206,Parks and Beautification R&R. 249,769 At third quarter,amendments to the Police Department include an increase of $249,769.00 to the Police supplemental pension plans which is offset by an amendment increasing supplemental pension revenue.Police Parks & Recreation Fire City of Clearwater General Fund Expenditures Third Quarter Amendments FY 2022/23 Economic Development and Housing City Manager's Office CRA Administration 6 Increase/(Decrease)Description City of Clearwater General Fund Expenditures Third Quarter Amendments FY 2022/23 127,190 At third quarter,Non-Departmental expenditures reflect 88%of total budget resulting from transfers occurring in the first period of the year. A third quarter amendment to Non-Departmental reflects an increase of $127,190.00 to land development,as approved by the Council on June 15,2023.This is offset by a revenue amendment recognizing a transfer from special program G2302, Economic Development 2023. Amendments reflect City Council approved interfund transfers to capital improvement programs as follows: 240,000 1) A transfer of $240,000.00 to capital project C2212, City Hall Demolition, as approved by the Council on June 15, 2023. 10,000,000 2) A transfer of $10,000,000.00 to establish capital project C2306, MSB Renovation, to fund the City Hall conceptual design as approved by the Council on June 15, 2023. 5,000,000 3) A transfer of $5,000,000.00 to capital project ENGF220001, New City Hall, to fund the City Hall conceptual design as approved by the Council on June 15, 2023. 15,240,000 16,517,292 Net General Fund Expenditure Non-Departmental 7 2022/23 Variance %2022/23 MY Amended Year to Date YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Amended Bud Budget Amendment Budget General Fund Revenues Ad Valorem Taxes 80,964,710 82,003,519 (1,038,809) 101%1,079,500 82,044,210 Utility Taxes 17,890,000 12,404,183 5,485,817 69%1,290,090 19,180,090 Local Option, Fuel and Other Taxes 6,430,000 5,110,294 1,319,706 79%(200,000) 6,230,000 Franchise Fees 11,000,000 7,542,878 3,457,122 69%806,100 11,806,100 Other Permits & Fees 3,908,500 3,155,235 753,265 81%(245,000) 3,663,500 Intergovernmental 28,768,720 18,041,815 10,726,905 63%1,520,863 30,289,583 Charges for Services 17,218,270 13,348,872 3,869,398 78%425,000 17,643,270 Judgments, Fines and Forfeitures 1,439,000 926,890 512,110 64%- 1,439,000 Miscellaneous Revenues 3,512,758 5,238,372 (1,725,614) 149%2,200,724 5,713,482 Transfers In 12,497,802 7,547,479 4,950,323 60%154,699 12,652,501 Total Revenues 183,629,760 155,319,536 28,310,224 85%7,031,976 190,661,736 Transfer (to) from Surplus 789,990 - 789,990 0%9,485,316 10,275,306 Adjusted Revenues 184,419,750 155,319,536 29,100,214 84%16,517,292 200,937,042 General Fund Expenditures City Council 533,486 371,323 162,163 70%- 533,486 City Manager's Office 1,032,745 804,890 227,855 78%100,000 1,132,745 City Attorney's Office 2,560,279 1,635,251 925,028 64%- 2,560,279 City Audit 372,930 208,877 164,053 56%- 372,930 City Clerk 1,274,878 770,093 504,785 60%- 1,274,878 CRA Administration 691,422 470,311 221,111 68%- 691,422 Economic Development and Housing 1,954,501 1,416,839 537,662 72%27,509 1,982,010 Finance 2,938,832 2,109,572 829,260 72%- 2,938,832 Fire 33,798,143 24,954,035 8,844,108 74%772,824 34,570,967 Human Resources 2,233,506 1,317,721 915,785 59%- 2,233,506 Library 9,445,675 6,895,421 2,550,254 73%- 9,445,675 Non-Departmental 12,476,346 10,957,909 1,518,437 88%15,367,190 27,843,536 Office of Innovation 891,534 519,367 372,167 58%- 891,534 Parks & Recreation 39,337,937 30,041,121 9,296,816 76%- 39,337,937 Planning & Development 7,605,355 5,059,310 2,546,045 67%- 7,605,355 Police 53,505,918 39,916,370 13,589,548 75%249,769 53,755,687 Public Communications 1,573,275 1,033,623 539,652 66%- 1,573,275 Public Utilities 412,520 310,273 102,247 75%- 412,520 Public Works 11,780,468 7,604,860 4,175,608 65%- 11,780,468 Total Expenditures 184,419,750 136,397,166 48,022,584 74%16,517,292 200,937,042 For the Nine Month Period of October 1, 2022 - June 30, 2023 GENERAL FUND THIRD QUARTER REVIEW 8 2022/23 Variance %2022/23 MY Amended Third Qtr.YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget WATER & SEWER FUND Water & Sewer Revenues: Charges for Service 103,669,490 79,001,712 24,667,778 76%- 103,669,490 Judgments, Fines and Forfeits 271,000 209,908 61,092 77%- 271,000 Miscellaneous 2,939,610 2,658,462 281,148 90%- 2,939,610 Transfers In - - - ~- - Fund Equity - - - ~- - Total Revenues 106,880,100 81,870,082 25,010,018 77%- 106,880,100 Water & Sewer Expenditures: Public Utilities Administration 3,137,339 2,072,911 1,064,428 66%- 3,137,339 Wastewater Collection 13,624,801 11,947,710 1,677,091 88%- 13,624,801 Public Utilities Maintenance 8,225,723 6,585,465 1,640,258 80%- 8,225,723 WPC / Plant Operations 26,602,163 21,993,155 4,609,008 83%- 26,602,163 WPC / Laboratory Operations 611,067 404,033 207,034 66%- 611,067 WPC / Industrial Pretreatment 999,062 719,283 279,779 72%- 999,062 Water Distribution 19,485,328 16,812,201 2,673,127 86%- 19,485,328 Water Supply 23,124,370 18,901,272 4,223,098 82%- 23,124,370 Reclaimed Water 5,018,157 4,141,836 876,321 83%- 5,018,157 Total Expenditures 100,828,010 83,577,868 17,250,142 83%- 100,828,010 Increase/ (Decrease)Amendment Description: Water and Sewer Fund Revenues:- Water and Sewer Fund Expenditures:- For the Nine Month Period of October 1, 2022 to June 30, 2023 At third quarter, anticipated revenues of the Water and Sewer Fund exceed anticipated expenditures by $6,052,090 for fiscal year 2022/23. No amendments are proposed to Water and Sewer Fund revenues at third quarter. No amendments are proposed to Water and Sewer Fund expenditures at third quarter. UTILITY FUNDS THIRD QUARTER REVIEW 9 2022/23 Variance %2022/23 MY Amended Third Qtr.YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 to June 30, 2023 UTILITY FUNDS THIRD QUARTER REVIEW STORMWATER FUND Stormwater Revenues: Charges for Service 17,340,280 13,170,822 4,169,458 76%- 17,340,280 Judgments, Fines and Forfeits 73,000 34,332 38,668 47%- 73,000 Miscellaneous 301,560 636,014 (334,454) 211%- 301,560 Transfers In - - - ~- - Fund Equity - - - ~- - Total Revenues 17,714,840 13,841,168 3,873,672 78%- 17,714,840 Stormwater Expenditures: Stormwater Management 10,773,256 10,105,899 667,357 94%- 10,773,256 Stormwater Maintenance 6,018,454 3,877,680 2,140,774 64%- 6,018,454 Total Expenditures 16,791,710 13,983,579 2,808,131 83%- 16,791,710 Increase/ (Decrease)Amendment Description: Stormwater Fund Revenues:- Stormwater Fund Expenditures:- At third quarter, anticipated revenues of the Stormwater Fund exceed anticipated expenditures by $923,130 for fiscal year 2022/23. No amendments are proposed to Stormwater Fund revenues at third quarter. No amendments are proposed to Stormwater Fund expenditures at third quarter. 10 2022/23 Variance %2022/23 MY Amended Third Qtr.YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 to June 30, 2023 UTILITY FUNDS THIRD QUARTER REVIEW GAS FUND Gas Revenues: Charges for Service 55,595,170 38,688,277 16,906,893 70%- 55,595,170 Judgments, Fines and Forfeits 100,000 65,226 34,774 65%- 100,000 Miscellaneous 321,370 446,738 (125,368) 139%- 321,370 Transfers In - - - ~- - Fund Equity 3,815,800 - 3,815,800 0%- 3,815,800 Total Revenues 59,832,340 39,200,241 20,632,099 66%- 59,832,340 Gas Expenditures: Administration & Supply 29,734,623 16,302,286 13,432,337 55%- 29,734,623 Pinellas Gas Operations 14,305,023 11,012,839 3,292,184 77%- 14,305,023 Pasco Gas Operations 9,115,613 7,676,745 1,438,868 84%- 9,115,613 Marketing & Sales 6,677,081 4,307,923 2,369,158 65%- 6,677,081 Total Expenditures 59,832,340 39,299,792 20,532,548 66%- 59,832,340 Increase/ (Decrease)Amendment Description: Gas Fund Revenues:- Gas Fund Expenditures:- At third quarter, anticipated revenues of the Gas Fund equal anticipated expenditures for fiscal year 2022/23. No amendments are proposed to Gas Fund revenues at third quarter. No amendments are proposed to Gas Fund expenditures at third quarter. 11 2022/23 Variance %2022/23 MY Amended Third Qtr.YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 to June 30, 2023 UTILITY FUNDS THIRD QUARTER REVIEW SOLID WASTE AND RECYCLING FUND Solid Waste Revenues: Other Permits and Fees 1,000 5,412 (4,412) 541%- 1,000 Charges for Service 26,874,695 21,936,414 4,938,281 82%- 26,874,695 Judgments, Fines and Forfeits 95,000 53,909 41,091 57%- 95,000 Miscellaneous 625,000 977,624 (352,624) 156%- 625,000 Transfers In - - - ~- - Solid Waste Revenues 27,595,695 22,973,359 4,622,336 83%- 27,595,695 Recycling Revenues: Other Permits and Fees 350 - 350 0%- 350 Intergovernmental - - - ~- - Charges for Service 2,557,274 2,007,953 549,321 79%- 2,557,274 Judgments, Fines and Forfeits 8,000 4,988 3,012 62%- 8,000 Miscellaneous 220,281 154,256 66,025 70%- 220,281 Transfers In - - - ~- - Recycling Revenues 2,785,905 2,167,197 618,708 78%- 2,785,905 Fund Equity - - ~- - Total Revenues 30,381,600 25,140,556 5,241,044 83%- 30,381,600 Solid Waste Expenditures: Collection 20,030,254 13,605,886 6,424,368 68%- 20,030,254 Transfer 2,467,042 1,436,972 1,030,070 58%- 2,467,042 Container Maintenance 958,445 629,012 329,433 66%- 958,445 Administration 1,362,394 884,403 477,991 65%- 1,362,394 Solid Waste Expenditures 24,818,135 16,556,272 8,261,863 67%- 24,818,135 Recycling Expenditures: Residential 1,670,431 941,102 729,329 56%- 1,670,431 Multi-Family 430,139 288,617 141,522 67%- 430,139 Commercial 2,219,275 1,412,365 806,910 64%- 2,219,275 Recycling Expenditures 4,319,845 2,642,084 1,677,761 61%- 4,319,845 Total Expenditures 29,137,980 19,198,357 9,939,623 66%- 29,137,980 Increase/ (Decrease)Amendment Description: Solid Waste and Recycling Fund Revenues:- Solid Waste and Recycling Fund Expenditures:- At third quarter, anticipated revenues of the Solid Waste and Recycling Fund exceed anticipated expenditures by $1,243,620 for fiscal year 2022/23. No amendments are proposed to Solid Waste and Recycling Fund revenues at third quarter. No amendments are proposed to Solid Waste and Recycling Fund expenditures at third quarter. 12 2022/23 Third Qtr.Variance %2022/23 MY Amended Year to Date YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget MARINE FUND Marine Revenues: Intergovernmental - - - ~- - Charges for Service 6,399,710 5,056,453 1,343,257 79%- 6,399,710 Judgments, Fines and Forfeits 3,200 200 3,000 6%- 3,200 Miscellaneous Revenue 149,000 351,829 (202,829) 236%- 149,000 Transfers In - - - ~- - Fund Equity 486,730 - 486,730 0%- 486,730 Total Revenues 7,038,640 5,408,482 1,630,158 77%- 7,038,640 Marine Expenditures: Marina Operations 7,038,640 5,404,458 1,634,182 77%- 7,038,640 Total Expenditures 7,038,640 5,404,458 1,634,182 77%- 7,038,640 Increase/ (Decrease)Amendment Description: Marine Fund Revenues:- Marine Fund Expenditures:- For the Nine Month Period of October 1, 2022 - June 30, 2023 ENTERPRISE FUNDS THIRD QUARTER REVIEW At third quarter, anticipated revenues of the Marine Fund equal anticipated expenditures for fiscal year 2022/23. No amendments are proposed to Marine Fund revenues at third quarter. No amendments are proposed to Marine Fund expenditures at third quarter. 13 2022/23 Third Qtr.Variance %2022/23 MY Amended Year to Date YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 - June 30, 2023 ENTERPRISE FUNDS THIRD QUARTER REVIEW CLEARWATER HARBOR MARINA FUND Clearwater Harbor Marina Revenues: Intergovernmental - - - ~- - Charges for Service 913,500 696,654 216,846 76%- 913,500 Judgments, Fines and Forfeits 1,000 150 850 15%- 1,000 Miscellaneous Revenue 31,500 66,390 (34,890) 211%- 31,500 Transfers In - - - ~- - Fund Equity 57,610 - 57,610 0%- 57,610 Total Revenues 1,003,610 763,194 240,416 76%- 1,003,610 Clearwater Harbor Marina Expenditures Clearwater Harbor Marina Operations 1,003,610 778,086 225,524 78%- 1,003,610 Total Expenditures 1,003,610 778,086 225,524 78%- 1,003,610 Increase/ (Decrease)Amendment Description: Clearwater Harbor Marina Fund Revenues:- Clearwater Harbor Marina Fund Expenditures:- At third quarter, anticipated revenues of the Clearwater Harbor Marina Fund equal anticipated expenditures for fiscal year 2022/23. No amendments are proposed to Clearwater Harbor Marina Fund revenues at third quarter. No amendments are proposed to Clearwater Harbor Marina Fund expenditures at third quarter. 14 2022/23 Third Qtr.Variance %2022/23 MY Amended Year to Date YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 - June 30, 2023 ENTERPRISE FUNDS THIRD QUARTER REVIEW AIRPARK FUND Airpark Revenues: Intergovernmental 13,600 - 13,600 0%- 13,600 Charges for Service 18,000 8,433 9,567 47%- 18,000 Miscellaneous Revenue 364,000 238,401 125,599 65%- 364,000 Transfers In - - - ~- - Fund Equity 378,390 - 378,390 0%- 378,390 Total Revenues 773,990 246,834 527,156 32%- 773,990 Airpark Expenditures:- Airpark Operations 773,990 601,429 172,561 78%- 773,990 Total Expenditures 773,990 601,429 172,561 78%- 773,990 Increase/ (Decrease)Amendment Description: Airpark Fund Revenues:- Airpark Fund Expenditures:- At third quarter, anticipated revenues of the Airpark Fund equal anticipated expenditures for fiscal year 2022/23. No amendments are proposed to Airpark Fund revenues at third quarter. No amendments are proposed to Airpark Fund expenditures at third quarter. 15 2022/23 Third Qtr.Variance %2022/23 MY Amended Year to Date YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 - June 30, 2023 ENTERPRISE FUNDS THIRD QUARTER REVIEW PARKING FUND Parking Revenues: Charges for Service 9,561,080 7,186,311 2,374,769 75%125,000 9,686,080 Judgments, Fines and Forfeits 990,000 1,262,008 (272,008) 127%- 990,000 Miscellaneous Revenue 200,000 571,435 (371,435) 286%8,265 208,265 Transfers In - 2,560 (2,560) ~- - Fund Equity 8,116,050 - 8,116,050 0%- 8,116,050 Total Revenues 18,867,130 9,022,315 9,844,815 48%133,265 19,000,395 Parking Expenditures Public Works/Parking System 16,519,523 14,925,580 1,593,943 90%125,000 16,644,523 Public Works/Parking Enforcement 998,737 635,045 363,692 64%- 998,737 Fire Dept/Beach Guards 1,194,937 889,308 305,629 74%8,265 1,203,202 M&A/Seminole Street Boat Ramp 153,933 100,272 53,661 65%- 153,933 Total Expenditures 18,867,130 16,550,205 2,316,925 88%133,265 19,000,395 Increase/ (Decrease)Amendment Description: Parking Fund Revenues:133,265 Parking Fund Expenditures:133,265 At third quarter, anticipated revenues of the Parking Fund equal anticipated expenditures for fiscal year 2022/23. At third quarter,amendments to Parking Fund revenues reflect a net increase of $133,265.00.Amendments include the following: 1)an increase of $8,265.00 for Ruth Eckerd Hall reimbursement revenue for EMT event coverage at the Sound,and 2)an increase of $125,000.00 to general parking revenues to offset an increase in operating expenditures. At third quarter,amendments to Parking Fund expenditures reflect a net increase of $133,265.00.Amendments include the following:1)an increase of $8,265.00 to overtime salaries for Beach Guards (EMTs)offset by Ruth Eckerd Hall reimbursement revenue for event coverage at the Sound,2)an increase of $100,000.00 to contractual services for increased services provided by Cale,and 3)an increase of $25,000.00 to operating supplies &materials for the purchase of artistic kiosk wraps and parking bumpers for new event lots. 16 2022/23 Variance %2022/23 MY Amended Third Quarter YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget GENERAL SERVICES FUND General Services Revenues: Charges for Service 6,368,650 4,820,454 1,548,196 76%- 6,368,650 Miscellaneous Revenues 130,000 90,128 39,872 69%- 130,000 Transfers In - - - ~- - Fund Equity - - - ~- - Total Revenues 6,498,650 4,910,582 1,588,068 76%- 6,498,650 General Services Expenditures: Administration 512,198 290,739 221,459 57%- 512,198 Building & Maintenance 5,950,782 4,135,281 1,815,501 69%- 5,950,782 Total Expenditures 6,462,980 4,426,020 2,036,960 68%- 6,462,980 Increase/ (Decrease)Amendment Description: General Services Fund Revenues:- General Services Fund Expenditures:- At third quarter, anticipated revenues of the General Services Fund exceed anticipated expenditures by $35,670 for fiscal year 2022/23. No amendments are proposed to General Services Fund revenues at third quarter. No amendments are proposed to General Services Fund expenditures at third quarter. For the Nine Month Period of October 1, 2022 to June 30, 2023 INTERNAL SERVICE FUNDS THIRD QUARTER REVIEW 17 2022/23 Variance %2022/23 MY Amended Third Quarter YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 to June 30, 2023 INTERNAL SERVICE FUNDS THIRD QUARTER REVIEW ADMINISTRATIVE SERVICES FUND Administrative Services Revenues: Charges for Service 16,050,270 11,786,195 4,264,075 73%- 16,050,270 Miscellaneous Revenues 100,000 291,527 (191,527) 292%- 100,000 Transfers In - - - ~- - Fund Equity - - - ~- - Total Revenues 16,150,270 12,077,722 4,072,548 75%- 16,150,270 Administrative Services Expenditures: Info Tech / Admin 515,877 297,800 218,077 58%- 515,877 Info Tech / Network Ops & User Suport 4,854,345 3,670,218 1,184,127 76%- 4,854,345 Info Tech / Network Security & Architecture 2,646,074 1,591,655 1,054,419 60%- 2,646,074 Info Tech / Solutions & Programming 2,761,577 2,353,077 408,500 85%- 2,761,577 Info Tech / Telecommunications - - - ~- - Info Tech / Enterprise Systems & Training 1,091,360 322,219 769,141 30%- 1,091,360 Public Comm / Courier 198,577 99,048 99,529 50%- 198,577 Clearwater Customer Service 4,001,420 2,658,042 1,343,378 66%- 4,001,420 Total Expenditures 16,069,230 10,992,059 5,077,171 68%- 16,069,230 Increase/ (Decrease)Amendment Description: Administrative Services Fund Revenues:- Administrative Services Fund Expenditures:- No amendments are proposed to Administrative Services Fund revenues at third quarter. No amendments are proposed to Administrative Services Fund expenditures at third quarter. At third quarter, anticipated revenues of the Administrative Services Fund exceed anticipated expenditures by $81,040 for fiscal year 2022/23. 18 2022/23 Variance %2022/23 MY Amended Third Quarter YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 to June 30, 2023 INTERNAL SERVICE FUNDS THIRD QUARTER REVIEW GARAGE FUND Garage Fund Revenues Charges for Service 18,908,130 12,224,026 6,684,104 65%- 18,908,130 Miscellaneous Revenues 625,000 707,257 (82,257) 113%- 625,000 Transfers In - - - ~- - Fund Equity - - - ~- - Total Revenues 19,533,130 12,931,283 6,601,847 66%- 19,533,130 Garage Fund Expenditures: Fleet Maintenance 17,789,189 10,565,852 7,223,337 59%- 17,789,189 Radio Communications 1,681,211 479,485 1,201,726 29%- 1,681,211 Total Expenditures 19,470,400 11,045,337 8,425,063 57%- 19,470,400 Increase/ (Decrease)Amendment Description: Garage Fund Revenues:- Garage Fund Expenditures:- At third quarter, anticipated revenues of the Garage Fund exceed anticipated expenditures by $62,730 for fiscal year 2022/23. No amendments are proposed to Garage Fund revenues at third quarter. No amendments are proposed to Garage Fund expenditures at third quarter. 19 2022/23 Variance %2022/23 MY Amended Third Quarter YTD Actual vs.YTD vs.Proposed 3 Qtr Amended Budget Actual Adopted Bud Budget Amendment Budget For the Nine Month Period of October 1, 2022 to June 30, 2023 INTERNAL SERVICE FUNDS THIRD QUARTER REVIEW CENTRAL INSURANCE FUND Central Insurance Revenues: Charges for Service 35,413,700 23,954,396 11,459,304 68%- 35,413,700 Miscellaneous Revenues 340,000 893,614 (553,614) 263%- 340,000 Transfers In - - - ~- - Fund Equity - - - ~- - Total Revenues 35,753,700 24,848,010 10,905,690 69%- 35,753,700 Central Insurance Expenditures: Finance / Risk Management 438,663 265,845 172,818 61%- 438,663 HR / Employee Benefits 414,160 232,302 181,859 56%- 414,160 HR / Employee Health Clinic 1,731,900 887,331 844,569 51%- 1,731,900 Non-Departmental 33,167,607 23,772,789 9,394,818 72%- 33,167,607 Total Expenditures 35,752,330 25,158,267 10,594,063 70%- 35,752,330 Increase/ (Decrease)Amendment Description: Central Insurance Fund Revenues:- Central Insurance Fund Expenditures:- At third quarter, anticipated revenues of the Central Insurance Fund exceed anticipated expenditures by $1,370 for fiscal year 2022/23. No amendments are proposed to Central Insurance Fund revenues at third quarter. No amendments are proposed to Central Insurance Fund expenditures at third quarter. 20 CAPITAL IMPROVEMENT PROGRAM Third Quarter Summary FY 2022/23 21 The amended 2022/23 Capital Improvement Program budget report is submitted for the City Council's third quarter review. The proposed amendment is a net budget increase in the amount of $17,825,165. This review provides the opportunity to examine the status of all active projects and present formal amendments to the project budgets. Fiscally significant budget increases encompassed within this review are as follows: The City Council did not previously approve the following capital improvement budget activity: ➢ Pinellas New Mains/Service Lines – a budget increase of $62,663 in property owners share revenue. ➢ Clearwater Municipal Cemetery Renovation – a budget increase of $150,000 in General Fund revenue. ➢ Parks & Beautification R&R – a budget increase of $250,000 in General Fund revenue. ➢ MSB Renovations – a budget increase of $10,000,000 in General Fund revenue. ➢ New City Hall – a budget increase of $5,000,000 in General Fund revenue. All significant budget increases that have been previously approved by the City Council are listed below: Project Council Budget Increase Approval ➢ City Hall Demolition $240,000 06/15/23 Increase/ Amdmt Project (Decrease)Transfer Net Budget #Number Amount Amount Description Amendment City Hall Demolition 1 C2212 240,000 To record a budget increase of $240,000.00 in General Fund revenue as approved by City Council on June 15th, 2023.240,000 Municipal Services Building Renovations - NEW PROJECT 2 C2306 10,000,000 To establish the project and record a budget increase of $10,000,000.00 in General Fund revenue to fund the new city hall conceptual design ,as approved by City Council on June 15th, 2023.10,000,000 New City Hall 3 ENGF220001 5,000,000 To record a budget increase of $5,000,000.00 in General Fund revenue to fund the new city hall conceptual design, as approved by City Council on June 15th, 2023.5,000,000 Aerial Truck - CLOSE PROJECT 4 91244 (714,601) To record a budget transfer of $714,600.62 in penny revenue to project FD00190002,Fire Station 47 Replacement. This project is complete.(714,601) Fire Boat - CLOSE PROJECT 5 91271 (314,192) To record a budget transfer of $314,191.65 in penny revenue to project FD00190002,Fire Station 47 Replacement. This project is complete.(314,192) Fire Station 47 Replacement 6 FD00190002 2,122,505 1,158,184 To record a net increase of $3,280,686.67 in revenues representing the following project transfers:1)a transfer of $714,600.62 in penny revenue from project 91244,Aerial Truck;2)a transfer of $314,191.65 in penny revenue from project 91271,Fire Boat;3)a transfer of $129,392.02 in penny revenue from project 93530,Consolidated Eastside/SPC Library;and 4)a transfer of $2,122,502.38 in unspent General Fund revenues from special program G2011, Back to Business Grant. 3,280,690 Pinellas New Mains / Service Lines 7 96377 62,663 To record a budget increase of $62,662.97 in property owners share revenue to bring the budget in line with revenues received.62,663 Sanitary Sewer Extensions 8 96630 (1,200,000) To record a budget transfer of $1,2000,000.00 in sewer revenue to project 96686, Pump Station Replacement.(1,200,000) CAPITAL IMPROVEMENT PROGRAM Third Quarter Amendments FY 2022/23 22 Increase/ Amdmt Project (Decrease)Transfer Net Budget #Number Amount Amount Description Amendment CAPITAL IMPROVEMENT PROGRAM Third Quarter Amendments FY 2022/23 Pump Station Replacement 9 96686 1,200,000 To record a budget transfer of $1,2000,000.00 in sewer revenue from project 96630, Sanitary Sewer Extensions.1,200,000 Clearwater Municipal Cemetery Renovation 10 M2210 150,000 To record a budget increase of $150,000.00 in General Fund revenue to increase the scope of the project to fund new software.150,000 Consolidated Eastside/St. Petersburg College Library - CLOSE PROJECT 11 93530 (129,392) To record a budget transfer of $129,392.02 in penny revenue to project FD00190002,Fire Station 47 Replacement. This project is complete.(129,392) Parks & Beautification R&R 12 M2206 250,000 To record a budget increase of $250,000.00 in General Fund revenue to assist with increasing costs.250,000 17,825,168 - - 17,825,168 TOTAL 23 CAPITAL IMPROVEMENT PROGRAM PROGRAM & STATUS SUMMARY THIRD QUARTER: October 1, 2022 to June 30, 2023 Actual Expenditures Budget Amended Revised Project Open Available Amend Description 10/1/23 Prev Qtr Amdmts Budget To Date Encumbrance Balance Status Ref Other General Government 93535 Countryside Library Demolition 75,000 75,000 - 75,000 - - 75,000 94233 Motorized Equip-Cash 2,683,945 2,705,101 2,705,101 2,550,479 43,705 110,917 94246 Fleet Management & Mapping 710,000 710,000 - 710,000 615,964 - 94,036 94729 City-wide Connectivity 5,623,089 5,623,089 - 5,623,089 3,842,046 3,759 1,777,285 94736 Geographic Information Sys 1,260,997 1,260,997 - 1,260,997 954,455 - 306,542 94828 Financial Systems Upgrades 4,258,165 4,258,165 - 4,258,165 2,813,489 31,134 1,413,543 94829 CIS Upgrades / Replacement 1,457,376 1,457,376 - 1,457,376 605,653 135,605 716,118 94830 MS Licensing / Upgrades 1,350,000 1,350,000 - 1,350,000 842,601 - 507,399 94850 Backfile Conversion of Records 500,000 500,000 - 500,000 192,043 - 307,957 94857 Accela Permit & Code Enforce 450,000 450,000 - 450,000 328,512 - 121,488 94873 Citywide Camera System 460,000 460,000 - 460,000 279,700 - 180,300 94874 City Enterprise Timekeep Sys 410,000 410,000 - 410,000 202,802 - 207,198 94880 Granicus Agenda Mgt Sys 260,000 260,000 - 260,000 41,136 - 218,864 94883 Business Proc Review & Improve 1,225,735 1,225,735 - 1,225,735 452,549 65,246 707,940 94888 City EOC & Disaster Recovery Fac 3,360,000 3,360,000 - 3,360,000 3,167,902 71,022 121,077 C1901 Beach Radio Tower 852,370 852,370 - 852,370 - - 852,370 C2004 Lift Stations - General Gov 2,240,000 2,240,000 - 2,240,000 176,562 - 2,063,438 C2006 ADA Transition Plan 1,200,000 1,200,000 - 1,200,000 383,657 - 816,343 C2007 Citywide Audio/Visual Solutions 465,053 465,053 - 465,053 56,499 - 408,554 C2101 North Ward Preservation 77,920 77,920 - 77,920 63,470 - 14,449 C2106 Greenprint Implementation 837,848 837,848 - 837,848 531,809 149,380 156,658 C2212 City Hall Demolition 610,000 610,000 240,000 850,000 334,199 482,133 33,668 1 C2306 MSB Renovations - - 10,000,000 10,000,000 - - 10,000,000 2 G2211 ARPA Fiber Upgrades 3,500,000 3,500,000 - 3,500,000 - 783,475 2,716,525 G2214 ARPA Solar Panels 2,000,000 2,000,000 - 2,000,000 - - 2,000,000 ENGF220001 New City Hall 16,700,300 16,700,300 5,000,000 21,700,300 214,300 2,734,040 18,751,960 3 GSBM180001Air Cond Replace-City Wide 2,079,436 2,079,436 - 2,079,436 1,260,001 221,942 597,493 GSBM180002Flooring for Facilities 1,677,837 1,677,837 - 1,677,837 1,287,045 160,824 229,968 GSBM180003Roof Repair and Replacement 3,154,213 3,154,213 - 3,154,213 2,297,726 11,574 844,914 GSBM180004Painting of Facilities 1,042,923 1,042,923 - 1,042,923 429,297 30,156 583,469 GSBM180005Fencing of Facilities 183,170 183,170 - 183,170 73,199 - 109,970 GSBM180006Light Replacement & Repair 753,197 753,197 - 753,197 374,834 - 378,362 GSBM180007Elevator Refurbish/Modern 860,576 860,576 - 860,576 11,118 - 849,458 GSBM180008B&M Vehicle & Equipment 2,218,377 2,218,377 - 2,218,377 871,611 525 1,346,241 GSBM180009New A/C Chiller System 5,600,000 5,600,000 - 5,600,000 1,752,713 - 3,847,287 GSBM180010General Services R&R 600,000 600,000 - 600,000 413,723 - 186,277 GSBM180011Generator Maintenance 670,000 670,000 - 670,000 78,003 - 591,997 GSBM180012General Faci Bldg Major Reno 2,885,242 2,885,242 - 2,885,242 627,346 - 2,257,897 GSFL180001 Fleet Facility R&R 694,520 694,520 - 694,520 93,527 24,303 576,690 L1902 B&M Vehicle & Equipment 65,000 35,046 - 35,046 35,046 - - C L1906/M2202Telecommunications Upgrade 2,269,047 2,269,047 - 2,269,047 228,239 85,235 1,955,574 L1907/M1911IT Disaster Recovery 705,396 705,396 - 705,396 78,443 20,249 606,704 L1908/M1912Network Infra & Server R&R 2,766,417 2,766,417 - 2,766,417 2,030,623 235,495 500,299 L1910 Motorized Equip Replace - LP 24,448,827 24,448,827 24,448,827 17,652,368 3,413,749 3,382,710 L1911 Garage - Off Cycle Replacements 500,000 640,000 - 640,000 290,660 284,678 64,662 L2301 Motorized Equip Purchases - LP 2,139,150 2,139,150 - 2,139,150 1,035,702 655,578 447,870 M1914 Sustainability Initiatives 200,000 200,000 - 200,000 146,710 - 53,290 M2007 City EOC Maintenance 125,000 125,000 - 125,000 3,853 - 121,147 L2001/M2010P25 Radio Equipment & Infrast 4,507,104 4,507,104 - 4,507,104 2,888,872 - 1,618,232 M2201 Studio/Production Eqp.51,344 51,344 - 51,344 - - 51,344 M2211 Neighborhood Reinvest Fund 200,000 200,000 - 200,000 - - 200,000 Sub-Total 112,964,573 113,095,774 15,240,000 128,335,774 52,610,484 9,643,806 66,081,485 24 CAPITAL IMPROVEMENT PROGRAM PROGRAM & STATUS SUMMARY THIRD QUARTER: October 1, 2022 to June 30, 2023 Actual Expenditures Budget Amended Revised Project Open Available Amend Description 10/1/23 Prev Qtr Amdmts Budget To Date Encumbrance Balance Status Ref Police Protection 94238 Police Vehicles 2,752,032 2,752,032 - 2,752,032 2,491,068 - 260,964 C2201 Police CAD Replacement 900,000 900,000 - 900,000 312,791 - 587,209 C2206 PD Equipment Facility 750,000 750,000 - 750,000 - - 750,000 P1802 Police Equipment Replacement 809,686 855,547 - 855,547 772,235 34,227 49,084 P1803 Command Bus Refurbishment 200,000 154,139 - 154,139 154,139 - - C P1902 Police Information Systems 450,000 450,000 - 450,000 376,790 - 73,210 P2102 Training Range Sound Mitigation 820,000 820,000 - 820,000 787,787 15,408 16,805 PD00180001 Police District 3 Station 13,050,000 13,050,000 - 13,050,000 12,485,662 430,552 133,787 Sub-Total 19,731,718 19,731,718 - 19,731,718 17,380,472 480,187 1,871,059 Fire Protection 91218 Fire Engine Replacement 4,249,366 4,249,366 - 4,249,366 3,482,241 718,190 48,936 91244 Aerial Truck 3,368,080 3,368,080 (714,601) 2,653,479 2,653,479 - - 4 91260 Thermal Imaging Cameras 320,270 320,270 - 320,270 163,939 78,900 77,431 91261 Personal Protection Equip 2,664,250 2,664,250 - 2,664,250 2,158,296 271,060 234,894 91262 SCBA Upgrade - Fill Station 125,000 82,366 - 82,366 82,366 - - C 91264 Fire Hose Replacement 531,460 531,460 - 531,460 341,703 2,609 187,148 91271 Fire Boat 1,008,363 1,008,363 (314,192) 694,171 694,171 - (0) 5 C2207 FD Equipment Facility 750,000 750,000 - 750,000 13,582 - 736,418 FD00190001 Fire Station 46 - Beach 10,350,693 10,350,693 - 10,350,693 7,615,292 2,557,854 177,547 FD00190002 Fire Station 47 Replacement 4,839,441 4,839,441 3,280,687 8,120,127 1,199,068 115,345 6,805,715 6 M2005 Fire Training Tower 400,286 400,286 - 400,286 52,987 31,440 315,859 Sub-Total 28,607,208 28,564,574 2,251,894 30,816,469 18,457,125 3,775,398 8,583,946 Fire Rescue Services 91229 Replace & Upgrade Airpacks 1,341,680 1,384,314 - 1,384,314 921,668 51,401 411,246 91236 Rescue Vehicle 862,500 862,500 - 862,500 495,780 - 366,720 91257 AED Program 315,510 315,510 - 315,510 279,236 - 36,274 91263 Extrication Tools 177,000 177,000 - 177,000 125,708 48,910 2,382 ENGF190002 Beach Guard Tower 324,239 324,239 - 324,239 95,930 - 228,309 ENGF200002 Beach Guard Admin Building 135,000 135,000 - 135,000 65,660 2,700 66,640 Sub-Total 3,155,929 3,198,563 - 3,198,563 1,983,981 103,011 1,111,571 Gas Utility Services 96358 Environmental Remediation 2,134,794 2,134,794 - 2,134,794 1,947,828 88,855 98,111 96365 Line Relocation-Pinellas Maint 836,569 836,569 - 836,569 591,736 - 244,833 96367 Gas Meter Change Out-Pinellas 4,663,000 4,663,000 - 4,663,000 4,393,857 - 269,143 96374 Line Relocation-Pinellas Capital 3,333,500 3,333,500 - 3,333,500 3,144,345 16,100 173,055 96376 Line Relocation - Pasco Maint 361,384 361,384 - 361,384 146,186 - 215,198 96377 Pinellas New Mains / Serv Lines 45,431,671 45,496,393 62,663 45,559,056 37,819,671 131,313 7,608,071 7 96378 Pasco New Mains / Serv Lines 27,922,099 28,036,207 - 28,036,207 25,189,052 7,900 2,839,254 96379 Pasco Gas Meter Change Out 1,592,821 1,592,821 - 1,592,821 915,200 - 677,621 96381 Line Reloc-Pasco-Capitalized 1,847,300 1,847,300 - 1,847,300 1,278,075 - 569,225 96382 Gas Inventory - Work Mgmt Sys 2,492,000 2,492,000 - 2,492,000 856,268 - 1,635,732 96384 Gas System - Pinellas Building 28,857,855 28,857,855 - 28,857,855 28,069,368 - 788,487 96385 Gas Main Extensions 1,807,845 1,807,845 - 1,807,845 1,520,032 - 287,813 96386 Expanded Energy Conservation 16,128,589 16,128,589 - 16,128,589 12,456,287 - 3,672,302 96387 Natural Gas Vehicle 7,684,584 7,684,584 - 7,684,584 6,148,893 908,304 627,386 96389 Future IMS Software & Hardware 1,475,000 1,475,000 - 1,475,000 361,793 - 1,113,207 96391 Gas System Pasco Building 950,000 950,000 - 950,000 1,392 - 948,608 C2301 Pasco Gate Station 1,500,000 1,500,000 - 1,500,000 - - 1,500,000 M1904 Pinellas Building Equip R&R 1,000,000 1,000,000 - 1,000,000 - - 1,000,000 Sub-Total 150,019,009 150,197,840 62,663 150,260,503 124,839,983 1,152,473 24,268,047 25 CAPITAL IMPROVEMENT PROGRAM PROGRAM & STATUS SUMMARY THIRD QUARTER: October 1, 2022 to June 30, 2023 Actual Expenditures Budget Amended Revised Project Open Available Amend Description 10/1/23 Prev Qtr Amdmts Budget To Date Encumbrance Balance Status Ref Solid Waste Control Services 96426 Facility R & R - 1,862,066 - 1,862,066 1,862,066 - (0) C 96443 Res Container Acquisition - 1,733,081 - 1,733,081 1,733,081 - (0) C 96444 Comm Container Acquisition 4,695,420 4,352,448 - 4,352,448 4,352,448 - - C 96445 Solar Trash & Recycling Kiosks 364,414 239,182 - 239,182 239,182 - - C 96448 Solid Waste CNG Station 150,000 - - - - - - C 96449 Solid Waste Truck Wash Fac 555,500 - - - - - - C 96804 Recycling Carts/Dumpsters 1,426,650 925,855 - 925,855 925,855 - - C 96805 Recycling Expan/Particip/R&R 1,341,525 1,222,936 - 1,222,936 1,222,936 - - C C2005/L2005 Underground Refuse Program 2,195,090 2,169,736 - 2,169,736 1,717,107 10,003 442,626 C2302 Rebuild SW Adm Comp - 8,610,526 - 8,610,526 10,288 19,075 8,581,164 L2201 SW/Recyc Add Veh & Equip 185,000 - - - - - - C M2301 SW Facility R&R 200,000 200,000 - 200,000 7,480 53,069 139,451 SR00180003 Processing Ctr Building Replace 5,062,633 4,396 - 4,396 4,396 - 0 C SRTS180001 S.W.Transfer Station Rebuild 19,650,130 19,650,130 - 19,650,130 19,072,802 41,499 535,829 Sub-Total 35,826,361 40,970,356 - 40,970,356 31,147,642 123,645 9,699,069 Water-Sewer Combination Services 96212 Sanitary Sewer Upgrades/Impr 17,345,431 17,345,431 - 17,345,431 8,401,891 6,075,790 2,867,751 96213 Marshall Street Upgrades/Impr 20,044,299 20,044,299 - 20,044,299 10,612,687 4,263,737 5,167,875 96214 East Plant Upgrades/Improve 5,150,000 5,150,000 - 5,150,000 646,172 164,688 4,339,140 96215 N.E. Plant Upgrades/Improve 35,263,620 30,524,945 - 30,524,945 19,039,356 3,765,307 7,720,282 96216 Laboratory Upgrade/Improve 1,155,079 1,155,079 - 1,155,079 12,168 - 1,142,912 96217 Pump Station R&R 1,350,192 1,350,192 - 1,350,192 811,161 - 539,031 96523 Pub Utilities Adm Bldg R&R 556,703 556,703 - 556,703 436,694 - 120,009 96526 Public Utility Admin Building 1,104,306 1,104,306 - 1,104,306 - - 1,104,306 96630 Sanitary Sewer Extension 15,319,608 15,319,608 (1,200,000) 14,119,608 12,615,157 4,557 1,499,895 8 96634 Sanitary Sewer Relocation 4,392,493 4,400,885 - 4,400,885 3,356,534 126,640 917,710 96645 Laboratory Upgrade & R&R 1,146,761 1,146,761 - 1,146,761 1,126,761 - 20,000 96654 Facilities Upgrade & Improve 11,779,876 11,779,876 - 11,779,876 10,588,663 258,998 932,216 96664 Water Pollution Control R & R 30,081,864 30,081,864 - 30,081,864 20,848,249 4,568,354 4,665,261 96665 Sanitary Sewer R&R 84,663,458 83,663,458 - 83,663,458 54,638,059 19,734,917 9,290,482 96686 Pump Station Replacement 9,413,137 15,875,137 1,200,000 17,075,137 5,838,884 110,784 11,125,469 9 96721 System R & R - Maintenance 17,015,686 17,015,686 - 17,015,686 6,563,659 3,264,916 7,187,111 96722 Line Relocation - Maintenance 5,425,071 5,606,588 - 5,606,588 3,630,489 66,181 1,909,918 96739 Reclaimed Water Dist Sys 47,616,014 55,116,014 - 55,116,014 45,782,108 448,205 8,885,700 96742 Line Relocation-Capitalized 5,869,275 5,869,275 - 5,869,275 4,255,780 - 1,613,495 96744 System Expansion 3,945,043 3,945,043 - 3,945,043 3,552,120 - 392,923 96764 RO Plant Exp Res #1 16,499,527 16,499,527 - 16,499,527 13,243,654 39 3,255,834 96767 RO Plant at Res #2 50,495,439 44,495,439 - 44,495,439 41,875,094 882,605 1,737,740 96773 Groundwater Replenishm Fac 7,400,118 6,264,570 - 6,264,570 5,917,653 2,987 343,930 96782 RO Plant @WTP #3 3,069,594 3,069,594 - 3,069,594 998,290 1,222,091 849,213 96783 Water Sys Upgrades/Improve 8,953,600 8,953,600 - 8,953,600 2,663,427 882,862 5,407,310 96784 Reclaim Water Distrib Sys R&R 4,840,936 5,842,078 - 5,842,078 1,448,857 1,686,917 2,706,305 96785 Feasibility Studies/Evalu - Water 3,805,000 3,805,000 - 3,805,000 2,433,595 55,954 1,315,451 96786 Devices/Equipments - Water 1,100,000 1,100,000 - 1,100,000 - - 1,100,000 G2206 Portable Generators 630,000 630,000 - 630,000 - - 630,000 L1904/L1905 /M2008 Vehicle & Equip-Sewer 1,077,913 1,077,913 - 1,077,913 1,000,239 - 77,674 M1905 Marshall Street Plant R&R 4,160,000 4,160,000 - 4,160,000 376,642 95,269 3,688,089 M1906 Northeast Plant R&R 2,279,313 2,279,313 - 2,279,313 431,377 - 1,847,936 M1907 East Plant R&R 5,165,000 5,165,000 - 5,165,000 368,146 166,752 4,630,102 M1908 RO Plant Exp Res #1 R&R 1,300,000 1,300,000 - 1,300,000 47,996 - 1,252,004 M1909 RO Plant at Res #2 R&R 1,250,000 1,250,000 - 1,250,000 252,738 - 997,262 26 CAPITAL IMPROVEMENT PROGRAM PROGRAM & STATUS SUMMARY THIRD QUARTER: October 1, 2022 to June 30, 2023 Actual Expenditures Budget Amended Revised Project Open Available Amend Description 10/1/23 Prev Qtr Amdmts Budget To Date Encumbrance Balance Status Ref Water-Sewer Combination Services (continued) M1910 Water Treatment Plant #3 R&R 898,851 898,851 - 898,851 152,278 - 746,573 M2103 Utilities Bldg & Maint 1,000,000 1,000,000 - 1,000,000 281,593 - 718,407 Sub-Total 432,563,206 434,842,034 - 434,842,034 284,248,168 47,848,548 102,745,318 Flood Protection/SW Management C1908 Stormwater Vehicles & Equip 5,695,930 4,995,930 - 4,995,930 3,703,137 480,924 811,869 ENST180001 Stormwater Pipe System Improve 16,422,507 16,422,507 - 16,422,507 4,528,091 2,200,423 9,693,994 ENST180002 Allen's Creek 3,309,631 4,165,992 - 4,165,992 2,833,258 67,214 1,265,519 ENST180003 Stormwater System Expansion 1,339,146 482,785 - 482,785 50,853 4,147 427,785 ENST180004 Stevenson Creek 3,500,286 2,200,286 - 2,200,286 130,515 87,873 1,981,899 ENST180005 Coastal Basin 4,494,370 4,494,370 - 4,494,370 2,803,794 219,314 1,471,262 ENST180006 Alligator Creek Watershed 4,661,592 3,522,592 - 3,522,592 517,951 118,526 2,886,115 ENST180010 Lower Spring Branch Improve 2,320,000 5,459,000 - 5,459,000 354,030 95,264 5,009,706 Sub-Total 41,743,463 41,743,463 - 41,743,463 14,921,629 3,273,685 23,548,149 Other Physical Environment 93422 Dredging of City Waterways 1,346,204 1,346,204 - 1,346,204 483,487 - 862,717 C2208 Coopers Point 1,400,000 1,400,000 - 1,400,000 - - 1,400,000 C2214 Public Works Complex 1,813,738 1,813,738 - 1,813,738 - - 1,813,738 ENGF180006 City-wide Docks and Seawall 2,636,739 2,636,739 - 2,636,739 1,794,552 - 842,188 ENGF180011 Environmental Assmt & Clean-up 1,209,664 1,209,664 - 1,209,664 139,796 1,421 1,068,447 ENGF180014 Seminole Boat Launch Improve 6,752,000 6,752,000 - 6,752,000 4,295,199 25,429 2,431,372 M2002 Environ Park Remediate & Protect 200,000 200,000 - 200,000 29,025 14,750 156,225 M2006 Right of Way Tree Mgt Prog 800,000 800,000 - 800,000 287,425 - 512,575 M2210 CW Municipal Cemetery Reno 600,000 600,000 150,000 750,000 161,811 24,491 563,698 10 Sub-Total 16,758,345 16,758,345 150,000 16,908,345 7,191,296 66,091 9,650,959 Road and Street Facilities C2102 Fort Harrison Reconstruction 15,249,666 15,249,666 - 15,249,666 1,382,629 1,385,049 12,481,989 C2103 Downtown Streetscaping 17,601,407 17,601,407 - 17,601,407 12,361,106 4,748,252 492,049 C2105 Mercado - Downtown Gateway 927,795 927,795 - 927,795 927,795 - - C ENGF200003 Memorial Causeway Bridge Lighting 200,000 200,000 - 200,000 152,656 - 47,344 ENRD180002 Bridge Maintenance & Improve 9,896,497 9,896,497 - 9,896,497 4,123,327 759,629 5,013,541 ENRD180004 Streets and Sidewalks 25,777,514 25,786,429 - 25,786,429 18,245,213 3,894,064 3,647,152 ENRD180005 City-Wide Intersection Improve 4,522,907 4,522,907 - 4,522,907 1,199,475 19,591 3,303,841 ENRD180006 Traffic Signals 2,524,534 2,524,534 - 2,524,534 969,034 240,000 1,315,501 ENRD180007 Traffic Safety Infrastructure 1,407,155 1,429,186 - 1,429,186 966,129 116,542 346,515 G2213 ARPA Streets & Sidewalks 2,000,000 2,000,000 - 2,000,000 300,000 - 1,700,000 Sub-Total 80,107,475 80,138,421 - 80,138,421 40,627,363 11,163,127 28,347,931 Airports 94817 Airpark Maintenance & Repair 364,245 364,245 - 364,245 338,810 - 25,435 G1901 Replace Hangar C 1,305,000 1,305,000 - 1,305,000 1,264,714 29,765 10,522 G2108 Security System Upgrade 228,000 228,000 - 228,000 175,678 - 52,322 G2306 Apron Relayment 250,000 2,000,000 - 2,000,000 - - 2,000,000 G2307 Aviation Operation Center - 300,000 - 300,000 - - 300,000 Sub-Total 2,147,245 4,197,245 - 4,197,245 1,779,202 29,765 2,388,279 Water Transportation System 93415 Waterway Maintenance 900,000 900,000 - 900,000 738,342 49,590 112,068 Sub-Total 900,000 900,000 - 900,000 738,342 49,590 112,068 27 CAPITAL IMPROVEMENT PROGRAM PROGRAM & STATUS SUMMARY THIRD QUARTER: October 1, 2022 to June 30, 2023 Actual Expenditures Budget Amended Revised Project Open Available Amend Description 10/1/23 Prev Qtr Amdmts Budget To Date Encumbrance Balance Status Ref Parking Facilities ENPK180001 Parking Lot Resurfacing 808,476 808,476 - 808,476 61,304 - 747,172 ENPK180002 Parking Lot Improvements 2,418,802 1,018,802 - 1,018,802 741,012 127,684 150,107 ENPK180003 Parking Facilities 4,128,348 4,828,348 - 4,828,348 2,730,135 258,703 1,839,510 ENPK230001 Downtown Parking Garage 10,500,000 11,200,000 - 11,200,000 140,363 1,400,235 9,659,402 M2102 Seminole Boat Launch Maint 375,083 528,674 - 528,674 33,757 9,875 485,042 Sub-Total 18,230,709 18,384,301 - 18,384,301 3,706,572 1,796,496 12,881,233 Other Transportation 92842 City Wayfinding Project 2,050,000 2,050,000 - 2,050,000 1,280,339 573,065 196,596 ENGF180002 Downtown Intermodal 924,756 924,756 - 924,756 - - 924,756 ENGF180003 Miscellaneous Engineering 404,146 404,146 - 404,146 354,752 - 49,394 ENGF180004 Survey Equipment Replacement 40,288 40,288 - 40,288 - - 40,288 ENGF180013 Imagine Clearwater 84,661,322 84,661,322 - 84,661,322 72,149,959 12,381,871 129,492 Sub-Total 88,080,513 88,080,513 - 88,080,513 73,785,051 12,954,935 1,340,526 Libraries 93527 Books & Other Lib Materials 7,696,601 7,696,601 - 7,696,601 7,689,968 127 6,506 93530 Consolidated Eastside/SPC Libr 5,430,000 5,430,000 (129,392) 5,300,608 5,300,608 - - C 11 93532 Libr Maker Space Maint. & Up 282,560 282,560 - 282,560 227,620 367 54,573 93534 Library FF&E Repair & Replace 465,000 465,000 - 465,000 169,116 50 295,834 94861 Library Technology 1,550,000 1,550,000 - 1,550,000 1,321,171 - 228,829 C2211 Main Library Renovation 1,350,000 1,350,000 - 1,350,000 - 14,700 1,335,300 Sub-Total 16,774,161 16,774,161 (129,392) 16,644,769 14,708,483 15,245 1,921,041 Parks & Recreation 93133 Park Land Acquisition 1,977,351 1,977,351 - 1,977,351 1,968,186 3,200 5,965 93272 Bicycle Paths-Bridges 5,620,232 5,620,232 - 5,620,232 4,282,931 34,880 1,302,421 93602 Sp Events Equip Rep & Rplcmnt 410,000 410,000 - 410,000 323,389 - 86,611 93618 Miscellaneous Park & Rec Contract 1,185,000 1,185,000 - 1,185,000 608,882 301,706 274,412 93646 Rest Rm Expan-Barefoot Bch House 520,950 520,950 - 520,950 518,374 750 1,826 93667 Del Oro Park Renovations 2,686,000 2,686,000 - 2,686,000 2,626,579 24,506 34,915 C1904 Ruth Eckerd Hall 8,500,000 8,500,000 - 8,500,000 7,000,000 - 1,500,000 C2002 Ed Wright/Norton Park Renovations 839,110 855,272 - 855,272 - - 855,272 C2202 Long Center Major Reno 7,000,000 7,000,000 - 7,000,000 79,392 - 6,920,608 C2209 Neighborhood Park Renovations 400,000 400,000 - 400,000 - - 400,000 G2218 ARPA State Street Park Impv 700,000 700,000 - 700,000 - - 700,000 L1901 P&R Vehicle and Equip Additions 546,210 546,210 - 546,210 520,438 - 25,772 M2206 Parks & Beautification R&R 1,925,690 2,004,890 250,000 2,254,890 726,107 598,368 930,416 12 ENGF180007 Phillip Jones Park Renovations 224,726 224,726 - 224,726 64,044 54 160,628 Sub-Total 32,535,269 32,630,631 250,000 32,880,631 18,718,321 963,464 13,198,846 Cultural Services A1901 Miscellaneous Minor Public Art 227,079 227,079 - 227,079 124,833 102,246 A2201 Cultural Arts Plan 85,000 85,000 - 85,000 15,085 - 69,915 Sub-Total 312,078.62 312,079 - 312,079 139,918 - 172,160 28 CAPITAL IMPROVEMENT PROGRAM PROGRAM & STATUS SUMMARY THIRD QUARTER: October 1, 2022 to June 30, 2023 Actual Expenditures Budget Amended Revised Project Open Available Amend Description 10/1/23 Prev Qtr Amdmts Budget To Date Encumbrance Balance Status Ref Special Recreation Facilities 93410 Clwr Harbor Marina Maint R&R 447,500 447,500 - 447,500 390,095 - 57,405 93420 Fuel System R & R 272,752 272,752 - 272,752 168,573 - 104,178 93499 Pier 60/Sailing Center Maint 471,952 471,952 - 471,952 374,015 - 97,937 93642 Phillip-Jones Restroom/Concess 456,944 449,932 - 449,932 449,932 - (0) C 93650 Crest Lake Park Improvement 7,709,222 7,709,222 - 7,709,222 7,709,222 - - C C1905 Beach Marina Upgrade 15,992,258 15,992,258 - 15,992,258 969,590 645,372 14,377,296 C1906 Clw Harbor Marina Repl & Up 2,795,695 2,795,695 - 2,795,695 1,339,171 1,348,114 108,410 C2001 Athletic Flds & Fac Reno/Improve 8,500,000 8,500,000 - 8,500,000 - - 8,500,000 C2204 Soccer Reno EC Moore 100,000 100,000 - 100,000 - - 100,000 C2205 Enterprise Dog Park 260,000 250,849 - 250,849 250,849 - - C C2210 Sailing Center Dock Replacement 732,852 732,852 - 732,852 633,812 - 99,040 C2213 Athletic Field Shade Structures 700,000 770,000 - 770,000 722,595 - 47,406 M1902 Marine Fac Maint Dock R&R 614,970 614,970 - 614,970 456,396 22,990 135,584 M2204 Carpenter & BayCare R&R 2,404,483 2,404,483 - 2,404,483 1,165,254 112,427 1,126,801 M2205 Recreation Center R&R 1,218,101 1,218,101 1,218,101 366,372 55,318 796,411 M2207 Athletic Field R&R 1,367,568 1,367,568 - 1,367,568 166,359 11,906 1,189,303 M2208 Beach Walk/Pier 60 Park R&R 1,498,735 1,498,735 - 1,498,735 1,111,129 307,300 80,306 Sub-Total 45,543,031 45,596,868 - 45,596,868 16,273,364 2,503,427 26,820,077 TOTAL ALL PROJECTS 1,126,000,294 1,136,116,886 17,825,165 1,153,942,051 723,257,395 95,942,892 334,741,763 29 Increase/ Amdmt Program (Decrease)Intrafund Net Budget Number Number Amount Transfer Amount Description Amendment Public Safety Programs Foreclosure Registry - Nuisance Abatement 1 98609 3,100 To record a budget increase of $3,100.00 which represents foreclosure registry fees collected to date to bring the budget in line with actual receipts.3,100 Police Extra Duty 2 99215 415,981 To record a budget increase of $415,981.30 in police service revenue to bring the budget in line with actual receipts.415,981 Police Education Fund 3 99317 6,551 To record a budget increase of $6,550.69 in police education fine revenue which will bring the budget in line with actual receipts.6,551 Investigative Costs Recovery 4 99329 34,877 To record a budget increase of $34,876.71 in fines,forfeitures and penalties revenue to bring the budget in line with actual receipts. 34,877 Florida Contraband Forfeiture Fund 5 99330 33,320 To record a budget increase of $33,320.49 in fines,forfeitures and penalties revenue which will bring the budget in line with actual receipts.33,320 Vehicle Replacement Fund 6 99350 117,599 To record a budget increase of $90,977.64 in insurance reimbursements,and a transfer of $26,621.25 from 99215, Police Extra Duty for revenue collected for vehicle usage on extra duty jobs.117,599 Safe Neighborhood Program 7 99356 47,000 To record an increase of $47,000.00 transferred from 99330, Florida Contraband Forfeiture Fund to support community outreach programs.47,000 Crime Prevention Program 8 99364 5,585 To record a budget increase of $5,585.00 in donation revenues. This will bring the budget in line with actual receipts.5,585 Emergency Alert System - NEW PROGRAM 9 C2304 845,305 To establish the program and record a budget increase of $845,304.92 transferred from program D2001,Covid-19 Prep and Response, as approved by Council on August 3, 2023.845,305 Special Program Fund Third Quarter Amendments FY 2022/23 30 Increase/ Amdmt Program (Decrease)Intrafund Net Budget Number Number Amount Transfer Amount Description Amendment Special Program Fund Third Quarter Amendments FY 2022/23 Public Safety Programs (continued) Pedestrian/Bicycle Safety 2022 - CLOSE PROGRAM 10 G2110 (3,895) To record a budget decrease of $3,894.57 in grant revenue to bring the budget in line with revenues received and close completed program.(3,895) School Resource Officers (SRO) 11 P1801 409,507 To record a budget increase of $409,507.20 in reimbursement revenue from the Pinellas County School Board for the annual SRO agreement for the 2023/24 school year as approved by the Council on August 3, 2023.409,507 Mental Health Co-Responder Team 12 P2101 184,122 To record a budget increase of $184,122 in grant revenues from the Bureau of Justice Assistance for the following awards: 1)$144,000 for the 2022 Edward Byrne Discretionary Community Project Funding reimbursing the first year of the program;and 2)$40,122 for the 2022 Edward Byrne Memorial Justice Assistance Grant as approved by the Council on July 20, 2023.184,122 DEA Overtime Reimbursement 13 P2201 10,000 To record a budget increase of $10,000.00 in reimbursement revenue from the Drug Enforcement Agency (DEA)to account for special duty assignments.10,000 ESST Overtime Reimbursement - NEW PROGRAM 14 P2202 1,000 To record a budget increase of $1,000.00 in reimbursement revenue from the Florida Department of Law Enforcement (FDLE)to account for special duty assignments related to the Electronic Surveillance support Team (ESST).1,000 FBI Overtime Reimbursement 15 P2203 10,000 To record a budget increase of $10,000.00 in reimbursement revenue from the Federal Bureau of Investigation (FBI)to account for special duty assignments.10,000 Secret Service Overtime Reimbursement 16 P2204 10,000 To record a budget increase of $10,000.00 in reimbursement revenue from the US Secret Services Agency to account for special duty assignments.10,000 31 Increase/ Amdmt Program (Decrease)Intrafund Net Budget Number Number Amount Transfer Amount Description Amendment Special Program Fund Third Quarter Amendments FY 2022/23 Public Safety Programs (continued) PSO Countryside Christian - NEW PROGRAM 17 P2302 129,960 To establish the program,record a budget increase of $129,960.00 in reimbursement revenue and increase FTEs by 0.8 to implement the Police Safety Officer (PSO)program at Countryside Christen Academy as approved by Council on August 3, 2023. 129,960 Public Safety Program Totals:2,260,013 - 2,260,013 Physical Environment Programs Tree Replacement Program 18 99970 23,712 To record a budget increase of $23,712.00 in fines,forfeiture and penalties revenue to bring the budget in line with actual receipts.23,712 Physical Environment Program Totals:23,712 - 23,712 Economic Environment Programs Public Facilities 2021 - CLOSE PROGRAM 19 G2101 - (126,322) To record a budget transfer of $126,322.24 in Community Development Block Grant (CDBG)revenues to G2301,Public Facilities 2023 and close prior year program.(126,322) Public Facilities 2022 20 G2201 (100,000) To record budget transfers in Community Development Block Grant (CDBG)revenues of $80,000.00 to G2301,Public Facilities 2023; and $20,000.00 to G2402, Public Facilities 2024.(100,000) Economic Development 2022 21 G2202 (20,000) To record budget transfers in Community Development Block Grant (CDBG)revenues of $20,000.00 to G2402,Public Facilities 2024.(20,000) Program Administration 2022 - CLOSE PROGRAM 22 G2203 (27,221) To record a budget transfer of $27,221.05 in Community Development Block Grant (CDBG)revenues to G2402,Public Facilities 2024 and close prior year program.(27,221) 32 Increase/ Amdmt Program (Decrease)Intrafund Net Budget Number Number Amount Transfer Amount Description Amendment Special Program Fund Third Quarter Amendments FY 2022/23 Economic Environment Programs (Continued) Public Services 2022 - CLOSE PROGRAM 23 G2205 (40,687) To record a budget transfer of $40,687.18 in Community Development Block Grant (CDBG)revenues to G2301,Public Facilities 2023 and close prior year program.(40,687) Duke Energy ED Grant 24 G2209 25,000 To record a budget increase of $25,000 representing an additional year of grant funding from Duke Energy.25,000 Public Facilities 2023 25 G2301 67,009 To record the following budget transfers in Community Development Block Grant (CDBG)revenues:1)$126,322.24 from G2101,Public Facilities 2021;2)$40,687.18 from G2205, Public Services 2022;3)$80,000.00 from G2201,Public Facilities 2022;and 4)a transfer of $180,000.00 to G2402, Public Facilities 2024.67,009 Economic Development 2023 26 G2302 (225,000) To record budget transfers in Community Development Block Grant (CDBG)revenues of $26,863.44 to G2402,Public Facilities 2024,and $198,136.56 to G2403,Economic Development 2024.(225,000) Infill Housing 2023 - CLOSE PROGRAM 27 G2304 (135,000) To record a budget transfer of $135,000 in Community Development Block Grant (CDBG)revenues to G2405,Infill Housing 2024 and close prior year program.(135,000) Public Services 2023 - CLOSE PROGRAM 28 G2305 (30,000) To record budget transfers in Community Development Block Grant (CDBG)revenues of $5,043.95 to G2402,Public Facilities 2024,and $24.956.05 to G2405,Infill Housing 2024 and close prior year program.(30,000) Public Facilities 2024 - NEW PROGRAM 29 G2402 279,128 To establish the program and record the following transfers of Community Development Block Grant (CDBG)revenues:1) $20,000 from G2201,Public Facilities 2022;2)$20,000 from G2202,Economic Development 2022;3)$27,221.05 from G2203,Program Administration 2022;4)$180,000 from G2301,Public Facilities 2023;5)$26,863.44 from G2302, Economic Development 2023;and 6)$5,043.95 from G2305, Public Services 2023.279,128 33 Increase/ Amdmt Program (Decrease)Intrafund Net Budget Number Number Amount Transfer Amount Description Amendment Special Program Fund Third Quarter Amendments FY 2022/23 Economic Environment Programs (Continued) Economic Development 2024 - NEW PROGRAM 30 G2403 198,137 To establish the program and record a budget transfer of $198,136.56 in Community Development Block Grant (CDBG) revenues from G2302, Economic Development 2023.198,137 Infill Housing 2024 - NEW PROGRAM 31 G2405 159,956 To establish the program and record the following transfers of Community Development Block Grant (CDBG)revenues:1) $135,000 from G2304,Infill Housing 2023;and 2)$24,956.05 from G2305, Public Services 2023.159,956 Economic Environment Program Totals:25,000 - 25,000 Culture and Recreation Programs Library Special Account 32 99910 16,184 To record a budget increase of $16,183.50 in donation revenue to bring the budget in line with actual receipts.16,184 Clearwater for Youth Grants 33 G1907 22,252 To record a budget increase of $22,251.77 in donation revenue for youth programs.This will bring the budget in line with actual receipts.22,252 Special Events @ Coachman Park - NEW PROGRAM 34 PRSE230001 3,552 To record a budget increase of $3,552.38 in sales revenue received from opening events at Coachman Park to bring the budget in line with actual receipts.3,552 Culture and Recreation Program Total:41,988 - 41,988 2,350,712 - 2,350,712 Total Budget Increase/(Decrease): 34 Increase/ Amdmt Program (Decrease)Intrafund Net Budget Number Number Amount Transfer Amount Description Amendment Special Program Fund Third Quarter Amendments FY 2022/23 Intrafund/Interfund Transfers Fund Balance 27,509 To record a transfer of $27,509 from fund balance recognizing interest earned on ARPA revenue recovery funds.This revenue is transferred to the General Fund to direct costs in Economic Development for ARPA grant administration. Police Extra Duty 99215 26,621 To record a transfer of $26,621.25 to 99350,Vehicle Replacement,representing revenue collected for vehicle usage on extra duty jobs. Florida Contraband Forfeiture Fund 99330 47,000 To record a transfer of $47,000 in fines,forfeiture and penalty revenue to 99356, Safe Neighborhood Program. Covid-19 Prep & Response D2001 845,305 To record a transfer of $845,304.92 to special program C2304, Emergency Alert System,as approved by Council on August 3, 2023. Back-to-Business Grant Program - CLOSE PROGRAM G2011 2,122,502 To record a transfer of $2,122,502.38 in remaining General Fund revenues to capital project FD00190002,Fire Station 47 Replacement. This program is complete and will be closed. Economic Development 2023 G2302 127,190 To record a transfer of $127,190.00 to the General Fund to provide for demolition on the City's property at 1011 Engman Street as approved by Council on June 15, 2023. Total Interfund Transfers:3,196,128 35 SPECIAL PROGRAM STATUS SUMMARY THIRD QUARTER REVIEW: October 1, 2022 to June 30, 2023 Actual Expenditures Original Amended Revised Project Open Available Amend Description Budget Prev Qtr Amdmt Budget To Date Encumbr Balance Status Ref GENERAL GOVERNMENT PROGRAMS 99857 Stimulus-Elctrnc Plan Submit & Revw 289,000 289,000 - 289,000 149,927 - 139,073 99928 Nagano Sister City Program 378,899 378,899 - 378,899 188,470 - 190,429 M1913 Lien Foreclosure Program 850,984 1,169,784 - 1,169,784 557,703 - 612,082 M2101 Planning Studies Fund 1,025,000 1,025,000 - 1,025,000 396,753 62,172 566,075 Sub-Total 2,543,883 2,862,683 - 2,862,683 1,292,853 62,172 1,507,659 PUBLIC SAFETY PROGRAMS 98609 Foreclosure Registry-Nuisance Abtmnt 170,800 180,600 3,100 183,700 22,163 - 161,538 1 98610 Hurricane Irma 3,918,686 3,918,686 - 3,918,686 2,706,118 - 1,212,567 99215 Police Extra Duty 6,161,622 7,194,404 415,981 7,610,386 7,449,529 - 160,856 2 99279 Police Recruitments 261,010 261,010 - 261,010 109,002 - 152,008 99281 Fed Forfeitures - Treasury 195,885 196,485 - 196,485 141,189 19,389 35,906 99316 Police Volunteers 168,519 183,519 - 183,519 148,210 - 35,308 99317 Police Education Fund 1,445,364 1,463,289 6,551 1,469,839 1,304,567 - 165,272 3 99329 Investigative Recovery Costs 2,939,457 3,025,757 34,877 3,060,634 2,765,462 14,410 280,763 4 99330 FL Contraband Forfeiture Fund 1,158,234 1,282,358 33,320 1,315,678 1,181,028 - 134,651 5 99350 Vehicle Replacement Fund 771,971 859,648 117,599 977,247 528,097 - 449,150 6 99356 Safe Neighborhood Program 1,441,203 1,461,203 47,000 1,508,203 1,407,893 - 100,309 7 99364 Crime Prevention Program 241,674 247,024 5,585 252,609 237,161 - 15,449 8 99387 Federal Forfeiture Sharing 2,504,602 2,582,004 - 2,582,004 2,106,139 - 475,865 99927 Emergency Operations 4,328,870 4,328,870 - 4,328,870 3,267,559 6,954 1,054,357 99982 EMS Incentive/Recognition 69,700 69,700 - 69,700 41,088 - 28,612 C2304 Emergency Alert System - - 845,305 845,305 1,494,379 - (649,074) 9 D2001 COVID-19 Prep & Response 1,981,240 1,981,240 - 1,981,240 1,494,379 - 486,861 G2110 Pedestrian/Bicycle Safety Grant 2022 46,455 46,455 (3,895) 42,560 42,560 - (0) C 10 G2208 Pedestrian/Bicycle Safety Grant 2023 - 21,836 - 21,836 24,184 - (2,348) P1801 School Resource Officers 2,266,427 2,922,016 409,507 3,331,523 2,695,194 - 636,329 11 P2002 Police Body Worn Camera Program 882,922 882,922 - 882,922 812,924 - 69,998 P2101 Mental Health Co-Responder Team 393,800 398,300 184,122 582,422 361,375 - 221,047 12 P2201 DEA OT Reimbursement Program 20,000 35,000 10,000 45,000 32,073 - 12,927 13 P2202 ESST OT Reimbursement Program 2,000 2,000 1,000 3,000 1,471 - 1,529 14 P2203 FBI OT Reimbursement Program 20,000 35,000 10,000 45,000 33,456 - 11,544 15 P2204 Secret Service OT Reimb Program 20,000 35,000 10,000 45,000 32,633 - 12,367 16 P2301 The Sound Acoustic Study - 168,500 - 168,500 - 153,183 15,317 P2302 PSO - Countryside Christian - - 129,960 129,960 - - 129,960 17 Sub-Total 31,410,441 33,782,826 2,260,013 36,042,838 30,439,832 193,937 5,409,069 PHYSICAL ENVIRONMENT PROGRAMS 99970 Tree Replacement Program 1,996,074 2,035,074 23,712 2,058,786 1,062,966 - 995,820 18 Sub-Total 1,996,074 2,035,074 23,712 2,058,786 1,062,966 - 995,820 ECONOMIC ENVIRONMENT PROGRAMS 99802 Brownfield Revolving Loan 1,216,732 1,216,732 - 1,216,732 420,381 - 796,351 99846 Economic Development - QTI 166,879 166,879 - 166,879 71,591 - 95,288 G2010 CDBG-CV Fund 1,549,338 1,549,338 - 1,549,338 671,040 537,890 340,409 G2011 Back to Business Grant Program 3,550,000 3,550,000 - 3,550,000 3,550,000 - - C G2101 Public Facilities 2021 690,825 690,825 (126,322) 564,503 564,503 - - C 19 M2009 Afford Housing & Comm Development 290,853 290,853 - 290,853 16,913 - 273,940 M2105 ED Strategic Plan 153,896 153,896 - 153,896 - - 153,896 G2201 Public Facilities 2022 670,471 670,471 (100,000) 570,471 552,277 11,327 6,867 20 G2202 Economic Development 2022 110,246 110,246 (20,000) 90,246 72,603 608 17,036 21 G2203 Program Administration 2022 211,771 211,771 (27,221) 184,550 184,525 25 - C 22 G2205 Public Services 2022 233,512 233,512 (40,687) 192,825 192,825 - - C 23 G2207 Brownfield MAC Grant - 300,000 - 300,000 53,565 63,821 182,614 G2209 Duke Energy ED Grant 25,000 25,000 25,000 50,000 22,200 - 27,800 24 36 SPECIAL PROGRAM STATUS SUMMARY THIRD QUARTER REVIEW: October 1, 2022 to June 30, 2023 Actual Expenditures Original Amended Revised Project Open Available Amend Description Budget Prev Qtr Amdmt Budget To Date Encumbr Balance Status Ref - - - ECONOMIC ENVIRONMENT PROGRAMS (CONTINUED)- - - G2210 ARPA North Greenwood CRA 5,000,000 5,000,000 - 5,000,000 - - 5,000,000 G2212 ARPA Affordable Housing 3,300,000 3,300,000 - 3,300,000 1,280,595 - 2,019,405 G2219 ARPA Business Incubator 250,000 250,000 - 250,000 - - 250,000 G2301 Public Facilities 2023 636,582 636,582 67,009 703,591 251,586 444,209 7,797 25 G2302 Economic Development 2023 460,575 460,575 (225,000) 235,575 148,515 80,175 6,885 26 G2303 Program Administration 2023 179,495 179,495 - 179,495 149,748 29,584 163 G2304 Infill Housing 2023 135,000 135,000 (135,000) - - - - C 27 G2305 Public Services 2023 134,621 134,621 (30,000) 104,621 92,779 11,842 - C 28 G2402 Public Facilities 2024 - - 279,128 279,128 558,257 837,385 (1,116,514) 29 G2403 Economic Development 2024 - - 198,137 198,137 396,273 594,410 (792,546) 30 G2404 Program Administration 2024 - - - - - - - G2405 Infill Housing 2024 - - 159,956 159,956 319,912 479,868 (639,824) 31 G2406 Public Services 2024 - - - - - - - Sub-Total 18,965,797 19,265,797 25,000 19,290,797 9,570,088 3,091,142 6,629,567 HUMAN SERVICES PROGRAMS 98601 Next Steps to Better Nutrition 9,000 9,000 - 9,000 6,671 - 2,329 98607 Senior Citizens Services - Trips 14,000 14,000 - 14,000 13,960 - 40 99562 HUD Special Education 30,000 30,000 - 30,000 27,600 - 2,400 99844 United Way 18,080 18,080 - 18,080 12,431 - 5,649 99869 Health Prevention Program 190,269 190,269 - 190,269 180,134 - 10,135 G2107 JWB Youth Programming 1,196,323 1,665,220 - 1,665,220 1,131,860 - 533,361 G2215 ARPA Pinellas Community Foundation 1,000,000 1,000,000 - 1,000,000 262,748 737,252 - G2216 ARPA Non-profit Grants 1,000,000 1,000,000 - 1,000,000 571,150 - 428,850 G2217 ARPA Education Grants & Partnerships 750,000 750,000 - 750,000 375,000 375,000 - M2209 Opioid Settlement Funds - 135,281 - 135,281 - - 135,281 Sub-Total 4,207,672 4,811,850 - 4,811,850 2,581,554 1,112,252 1,118,045 CULTURE AND RECREATION PROGRAMS 98608 Clark-Turner Trust (Library)106,077 106,077 - 106,077 - - 106,077 99910 Library Special Account 910,161 940,394 16,184 956,577 924,913 - 31,664 32 C2303 Library - Machan Estate - 1,176,297 - 1,176,297 - - 1,176,297 G1907 Clearwater for Youth Grants 70,095 78,327 22,252 100,579 44,937 - 55,643 33 PRSE190001 Special Events 2,899,058 3,048,251 - 3,048,251 2,842,645 - 205,606 PRSE230001 Special Events @ Coachman Park - 610,620 3,552 614,172 118,690 171,543 323,940 34 Sub-Total 3,985,391 5,959,966 41,988 6,001,954 3,931,184 171,543 1,899,227 TOTAL ALL PROJECTS 63,109,258 68,718,196 2,350,712 71,068,908 48,878,477 4,631,045 17,559,387 37 City of Clearwater SPECIAL DEVELOPMENT FUND Third Quarter FY 2022/23 Increase/ (Decrease)Description Revenues Ad Valorem Taxes 54,408 An increase in ad valorem taxes to bring the budget in line with actual receipts for the year. Local Option Gas Tax 122,850 An increase in Local Option Gas Tax revenues to bring the budget in line with anticipated receipts for the year. Open Space Fees 27,363 An increase in open space fees to bring the budget in line with actual receipts for the year. Recreation Facility Impact Fees 8,327 An increase in recreation facility impact fees to bring the budget in line with actual receipts for the year. Recreation Land Impact Fees 67,258 An increase in recreation land impact fees to bring the budget in line with actual receipts for the year. Interest Earnings 350,000 An increase in interest earnings to bring the budget in line with anticipated receipts for the year. Fee in Lieu of Sidewalks 49,650 An increase in fee in lieu of sidewalks to bring the budget in line with actual receipts for the year. Multi-Modal Impact Fees 213,000 An increase in Multi-Modal Impact Fees to bring the budget in line with actual receipts for the year. 892,856$ Net Revenue Amendments Expenditures Transfer to Capital Improvement Fund - No Amendments are proposed to Special Development Fund expenditures at third quarter. -$ Net Expenditure Amendments 38 SPECIAL REVENUE FUNDS Third Quarter: October 1, 2022 - June 30, 2023 Original First Quarter Mid Year Third Quarter Budget Amended Budget Amended Budget Amended Budget 2022/23 2022/23 2022/23 2022/23 Amendments Revenues: Ad Valorem Taxes 4,050,410 4,050,410 4,050,410 4,104,818 54,408 Infrastructure Tax 16,441,000 16,441,000 16,441,000 16,441,000 - Interest Earnings 450,000 450,000 450,000 800,000 350,000 Open Space Fees - - - 27,363 27,363 Recreation Facility Impact Fees - - - 8,327 8,327 Recreation Land Impact Fees - - - 67,258 67,258 Fee in Lieu of Sidewalks - - - 49,650 49,650 Fee in Lieu of Drainage - - - - - Multi-Modal Impact Fees 140,000 140,000 140,000 353,000 213,000 Local Option Gas Tax 1,327,150 1,327,150 1,327,150 1,450,000 122,850 Allocation of Assigned Fund Balance 6,507,630 6,586,830 6,586,830 6,586,830 - 28,916,190 28,995,390 28,995,390 29,888,246 892,856 Expenditures: Transfer to Capital Improvement Fund - Road Millage 4,050,410 4,050,410 4,050,410 4,050,410 - Infrastructure Tax 22,948,630 22,948,630 22,948,630 22,948,630 - Recreation Facility Impact Fees - 79,200 79,200 79,200 - Multi-Modal Impact fees 140,000 140,000 140,000 140,000 - Local Option Gas Tax 1,327,150 1,327,150 1,327,150 1,327,150 - 28,466,190 28,545,390 28,545,390 28,545,390 - SPECIAL DEVELOPMENT FUND 39 SPECIAL REVENUE FUNDS Third Quarter: October 1, 2022 - June 30, 2023 Original First Quarter Mid Year Third Quarter Budget Amended Budget Amended Budget Amended Budget 2022/23 2022/23 2022/23 2022/23 Amendments Revenues: CDBG Program Income 897,475 897,475 897,475 897,475 - Interest Earnings 125,000 133,091 133,091 133,091 - Intergovernmental Revenue - 1,267,147 1,366,566 1,987,300 620,735 Charges for Service Revenue - 696,016 1,042,583 1,461,664 419,081 Judgments, Fines and Forfeit Revenue - 498,680 583,779 682,239 98,460 Miscellaneous Revenue - 169,614 1,389,387 1,682,897 293,510 Transfers from General Fund:- - 779,120 779,120 - Sister City Program 37,380 37,380 37,380 37,380 - Planning Study Fund 275,000 275,000 275,000 275,000 - United Way Campaign Fund 1,500 1,500 1,500 1,500 - Special Events 70,000 185,200 185,200 185,200 - Police Recruitments 30,000 30,000 30,000 30,000 - Police Mental Health Co-Responder Te 143,200 143,200 147,700 147,700 - Transfers from Special Programs - 283,834 319,713 1,238,639 918,926 1,579,555 4,618,138 7,188,493 9,539,205 2,350,712 Expenditures: General Government 312,380 631,180 631,180 631,180 - Public Safety 173,200 1,812,843 2,545,585 4,805,597 2,260,013 Physical Environment - 30,528 39,000 62,712 23,712 Economic Environment 498,117 798,117 798,117 823,117 25,000 Human Services 1,500 605,678 605,678 605,678 - Culture and Recreation 70,000 215,433 2,044,575 2,086,563 41,988 Interfund Transfers 399,358 399,358 399,358 399,358 - Transfer to Capital Fund 50,000 50,000 50,000 50,000 - 1,504,555 4,543,138 7,113,493 9,464,205 2,350,712 Revenues: HOME Investment Partnerships 509,528 509,528 509,528 509,528 - State Housing Initiatives Partnerships 781,532 781,532 781,532 781,532 - Total - HOME/SHIP Funds 1,291,060 1,291,060 1,291,060 1,291,060 - Expenditures: Economic Environment 988,161 988,161 988,161 988,161 - Interfund Transfers 302,899 302,899 302,899 302,899 - Total - HOME/SHIP Programs 1,291,060 1,291,060 1,291,060 1,291,060 - SPECIAL PROGRAM FUND OTHER HOUSING ASSISTANCE FUNDS 40 ADMINISTRATIVE CHANGE ORDERS Third Quarter Review FY 2022/23 41 In accordance with City of Clearwater Code Section 2.554(6), the City Manager may approve and execute change orders without City Council approval within certain limitations. The following change orders have been administratively approved since the last report to the Council based on the code specified criteria: 1. The city manager may increase any contract up to a total award of one hundred thousand dollars ($100,000.00). 2. The city manager may approve any increase of contract up to a maximum of ten percent (10%) over the most recent award of the city council. 3. No contract price increase shall be approved unless sufficient funds are available for such purpose. 4. Contract price decreases may be approved without limitation. 5. The time for completion may be extended up to ninety (90) days, in any one change or cumulatively for the same project, beyond the most recent city council approved completion time. ***** 05/30/23 Administrative Change Order #1 – Imagine Clearwater Enabling Work GMP 1 (17-0031-EN2). This change order increases and decreases items in accordance with field conditions resulting in a net decrease to the contract. Skanska USA Building, Inc. (74,523.58) 05/30/23 Administrative Change Order #2 – Imagine Clearwater Sitework GMP 2 (17-0031-EN2). This change order increases and decreases items in accordance with field conditions resulting in a net decrease to the contract. Skanska USA Building, Inc. (813,323.88) 05/30/23 Administrative Change Order #1 – WTP3 East Dome and Aerator and Misc. Improvements (20-0012-UT). This change order increases and decreases items in accordance with field conditions resulting in a net zero change to the contract. Razorback, LLC 0.00 06/28/23 Administrative Change Order #1 – MS WRF Process Control Gates Repair (18-0047-UT). This change order increases and decreases items in accordance with field conditions resulting in a net increase to the contract. Poole & Kent, Co. 316,157.82 ADMINISTRATIVE CHANGE ORDERS Third Quarter Review FY 2022/23 42 07/18/23 Administrative Change Order #1 – Municipal Parking Garage Rehabilitation (18-0032-EN). This change order increases, decreases and adds items in accordance with field conditions resulting in a net decrease to the contract. Restocon Corp. (165,416.80) 08/28/23 Administrative Change Order #5 – Cleveland Street Streetscape Phase 3 & Festival Core (16-0003-EN). This change order increases, decreases and adds items in accordance with field conditions resulting in a net-zero change to the contract. Gibbs & Register, Inc. (0.00) Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: 9739-23 2nd rdg Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: OrdinanceIn Control: City Attorney Agenda Number: 7.7 SUBJECT/RECOMMENDATION: Adopt Ordinance 9739-23 on second reading, amending the Code of Ordinances, Chapter 32, Utilities, Article VIII, Gas, providing for the use of subcontractors in the fulfillment of gas services, Amending Appendix A, Schedule of Fees, Rates and Charges, Section XXV, Clearwater Gas System Fees, Rates and Charges, to revise rates in accordance with the 2023 Cost of Service and Rate Study. Page 1 City of Clearwater Printed on 1/23/2024 Natural Gas Rate Study December 1, 2023 CITY OF Clearwater December 1, 2023 Mr. Jay Ravins Finance Director City of Clearwater 100 South Myrtle Ave. Clearwater, FL 33756 Subject: Natural Gas Rate Study Dear Mr. Ravins, Raftelis Financial Consultants, Inc. (Raftelis) is pleased to provide this Natural Gas Rate Study Report (Report) for the City of Clearwater (City) to address the needs facing the City’s natural gas utility. The major objectives of the study include the following: » Evaluate the adequacy of existing rate revenues to support the continued financial sustainability of the natural gas utility. » Determine the cost of serving each customer class in accordance with each class’s use of the natural gas system. » Recommend rate revenue adjustments to better align the cost of serving each class with the revenues generated by that class. » Recommend rate structure adjustments to better align the City’s rate structure with industry best practices for natural gas utility rates. The Report summarizes our key findings and recommendations. It has been a pleasure working with you, and we thank you and City staff for the support provided during the course of this study. Sincerely, Bart Kreps Vice President CITY OF CLEARWATER NATURAL GAS RATE STUDY REPORT Table of Contents 1. EXECUTIVE SUMMARY ............................................................ 1 1.1. INTRODUCTION ..................................................................................... 1 1.2. FINANCIAL PLAN .................................................................................. 1 1.3. COST OF SERVICE ANALYSIS ............................................................. 2 1.4. RATE DESIGN ........................................................................................ 3 2. FINANCIAL PLAN ...................................................................... 7 2.1. FINANCIAL PLANNING METRICS & PROCESS ................................... 7 2.2. PROJECTED REVENUES ...................................................................... 8 2.2.1. Existing Rates/Structure ............................................................................................8 2.2.2. Account Growth and usage forecast ...................................................................... 10 2.2.3. Projected Revenues Under Existing Rates ............................................................ 13 2.3. PROJECTED REVENUE REQUIREMENTS ......................................... 13 2.3.1. Operating Expenses ................................................................................................. 13 2.3.2. Capital Expenditures ................................................................................................ 14 2.3.3. Dividend to City of Clearwater ................................................................................ 16 2.3.4. Cash Flow Forecast ................................................................................................. 16 3. COST OF SERVICE ANALYSIS .............................................. 19 3.1. PROCESS ............................................................................................. 19 3.2. ALLOCATION OF COSTS TO COST DRIVERS .................................. 19 3.3. DETERMINATION OF UNITS OF SERVICE ......................................... 23 3.4. DISTRIBUTION OF COSTS TO CUSTOMER CLASSES ..................... 23 4. RATE DESIGN ......................................................................... 25 4.1. RATE RECOMMENDATIONS .............................................................. 25 4.1.1. PGA ........................................................................................................................... 25 4.1.2. Riders ........................................................................................................................ 25 4.1.3. Market Based Rates ................................................................................................. 26 CITY OF CLEARWATER NATURAL GAS RATE STUDY REPORT 4.1.4. Base Rates ................................................................................................................ 26 4.1.5. Rate Comparison to Neighboring Utilities ............................................................. 28 4.2. BILL IMPACTS ..................................................................................... 28 Report Tables Table 1 – Existing and Proposed Base Rates ................................................................................................. 5 Table 2 – Monthly Bill Impacts .......................................................................................................................... 6 Table 3 – Existing Base Rates ........................................................................................................................... 9 Table 4 – Historical and Projected Customer Account Growth .................................................................. 11 Table 5 – Historical and Projected Customer Usage (Therms) ................................................................... 12 Table 6 – Revenue Under Existing Rates....................................................................................................... 13 Table 7 – Forecast Operating Expenses ........................................................................................................ 14 Table 8 – Annual Debt Service ........................................................................................................................ 15 Table 9 – Capital Improvements Plan ............................................................................................................. 16 Table 10 - Cash Flow Forecast ........................................................................................................................ 17 Table 11 – Pro-forma Income Statement ........................................................................................................ 18 Table 12 – Return on Equity/Rate Base Calculation ..................................................................................... 18 Table 13 – Revenue Requirement Allocation to Cost Drivers (%) .............................................................. 21 Table 14 – Revenue Requirement Allocation to Cost Drivers ($) ................................................................ 22 Table 15 – Development of Distribution Factors .......................................................................................... 23 Table 16 – Distribution of Costs to Customer Classes ................................................................................ 24 Table 17 – Comparison of Cost of Service to Revenue Under Existing Rates .......................................... 24 Table 18 – Existing and Proposed Base Rates ............................................................................................. 27 Table 19 – Rate Comparison to Neighboring Utilities .................................................................................. 28 Table 20 – Monthly Bill Impact ........................................................................................................................ 29 Table 20 – Annual Cost Comparison CGS Gas Service vs. Electric Service ............................................. 29 Report Figures Figure 1 – CGS Cash Flow Forecast ................................................................................................................ 2 Figure 2 – Class Cost of Service vs. Current Revenues ................................................................................ 3 Figure 4 – Current Revenues and Cost of Service ....................................................................................... 24 CITY OF CLEARWATER NATURAL GAS RATE STUDY REPORT This page intentionally left blank to facilitate two-sided printing. NATURAL GAS RATE STUDY REPORT 1 1. Executive Summary 1.1. Introduction The City of Clearwater, Florida, (the City) owns and operates the Clearwater Gas System (CGS), which serves approximately 30,900 customers in Pinellas and Pasco Counties. The City engaged Raftelis Financial Consultants, Inc. (Raftelis) to conduct a comprehensive financial planning, cost of service and rate design study. Raftelis worked closely with City staff to develop an understanding of the financial and operational characteristics of the CGS system in order to develop appropriate assumptions and reasonable allocations. The primary outcomes of this study are rate recommendations which sustainably fund CGS operations, reasonably align cost recovery (i.e., what CGS charges customers) with cost incurrence (i.e., how those customers use the CGS system) and improve alignment with industry best practices for natural gas ratemaking. Developing these recommendations involves the following 3 steps: 1. Establish the overall level of revenue needed to fund CGS operations in a financially sustainable manner (Financial Plan) 2. Determine the cost of serving each customer class in accordance with each class’s use of the gas system (Cost of Service Analysis) 3. Calculate rate adjustments to better align the cost of serving each class with the revenues generated by that class and improve alignment with industry best practices (Rate Design). 1.2. Financial Plan Process The financial plan conducted for this study evaluated whether CGS’s existing revenue levels were appropriate, given projected operating and capital expenditures and defined financial performance metrics. This evaluation involved detailed projections of revenues and expenditures based on CGS’s customer billing data, budget, capital improvement plan and actual historical financial performance. Appropriateness for the purposes of this study was measured in terms of reserve levels, debt service coverage ratios, return on rate base and return on equity. CGS’s rate structure consists of three distinct groups of charges: a purchased gas adjustment (PGA) rate, rate riders and base rates. The PGA rate is the mechanism by which CGS recovers the cost of natural gas it purchases and distributes to customers. Rate riders include the Energy Conservation Adjustment (ECA), the usage and inflation adjustment (UIA) and the regulatory imposition adjustment (RIA). The ECA is designed to recover costs associated with energy conservation and demand management. The UIA is designed to mitigate operational and financial risk associated with fluctuations in demand and inflationary cost increases. The RIA is designed to recover the cost of regulatory imposed programs. The final component of CGS’s rate structure are the base rates (customer charge and commodity charge), which effectively recovers the cost of distributing natural gas to customers. Raftelis worked with City staff to develop a projection of future account and customer growth. These demand projections were used to calculate revenues based on CGS’s existing rate structure for comparison with projected operating and capital expenditures over a five-year forecast period. The sufficiency of projected revenues was then assessed based on established financial metrics targeting liquidity, debt management, and rate of return. 2 CITY OF CLEARWATER Findings and Recommendations Existing CGS revenues are lower than projected operating and capital expenses. However, given CGS’s strong liquidity position, the need for incremental revenue from an increase to base rates can be delayed until FY 2026, based on several key assumptions that will be outlined in this report. At this point, Raftelis projects a 10.0% rate adjustment to the base rates in FY 2026 and FY 2028. Figure 1 illustrates the financial plan over the forecast period with the projected rate adjustments to the base rates. Figure 1 – CGS Cash Flow Forecast 1.3. Cost of Service Analysis Process While the financial plan determines the overall level of rate revenue necessary to support the gas system, the cost of service analysis determines what proportion of that overall requirement should be recovered from each of the City’s customer classes. The driving principle of a cost of service analysis is to allocate costs to users in proportion to their use of the gas system. For this study, costs were broken down between commodity related costs (the cost of meeting annual system requirements), capacity related costs (the cost of meeting peak demand), customer related costs (the cost of connecting and serving individual customers) and direct costs (costs related to specific cost centers and rate riders). A cost of service analysis is performed using projected annual costs for a specific future year, referred to as a “test year.” For this study, the City’s fiscal year ending September 30, 2024 (FY 2024) is the test year. Findings and Recommendations Historically, the PGA and rate riders had recovered their direct costs as well as other operating costs including a portion of the dividend to the City of Clearwater. We recommend shifting these dividend costs out of the PGA and NATURAL GAS RATE STUDY REPORT 3 riders and into the base rates because they relate to providing service to CGS customers more generally, rather than being specifically related to either the purchase of natural gas or the activities covered by the riders. This shift in costs would improve the alignment between the intent of the PGA and rate riders and the costs which are recovered by them. The cost of service analysis also continues to show that the residential and commercial classes may need rate adjustments to cover their costs of service. Current residential revenues are not sufficient to cover the costs allocated to the class. This under recovery of costs by the residential class is offset by an over recovery by commercial classes. Figure 2 presents a comparison of customer class revenues under current base rates versus the results of the cost of service analysis. Given the current variance between revenue generation and cost of service, we recommend CGS consider a gradual movement towards cost of service in the future. Figure 2 – Class Cost of Service vs. Current Revenues 1.4. Rate Design Process The objective of rate design is to reasonably and fairly set rates to recover the net revenue requirement in a manner aligned with utility pricing objectives and industry practices. Although recovering the revenue requirement is the ultimate goal, rates must be reasonable and remain competitive with neighboring utilities. In the case of CGS, it is more prudent to establish a directional goal of achieving cost of service over time by implementing incremental shifts towards customer class parity while remaining competitive with neighboring utilities and fuel alternatives. Findings and Recommendations As described in further detail in Sections 3 and 4, we recommend that the City shift the dividend costs out of the PGA and rate riders and into the base rates, where they are more appropriately recovered. The following summarizes our recommendations. Purchased Gas Adjustment The PGA is reviewed by CGS monthly and adjusted periodically based on actual and projected gas supply costs, other applicable expenses, and projected demand. As such, Raftelis does not recommend a specific PGA rate as part of this study. However, we do recommend the following modification to the calculation methodology: all dividend 60%71% 40%29% Current Cost of Service Residential Commercial 4 CITY OF CLEARWATER costs recovered in the PGA should be shifted for recovery in base rates via the commodity charge. The decrease to the actual PGA rate should be $0.057 per therm, which is equivalent to the increase embedded in base rates as described below. Riders Similar to the PGA, Raftelis recommends that all divided costs recovered in the ECA and RIA should be shifted for recovery in base rates via the commodity charge. The decrease in the actual ECA rate should be $0.008 per therm and the decrease in the RIA should be $0.006 per therm. The UIA should reset to $0.00 at the beginning of FY 2024, with cost recovery shifted by $0.049 per therm to base rates as described below. It should be noted it is recommended the shift in cost recovery of the UIA is shared equally between residential and commercial customers. This will result in a slight increase in cost recovery from residential customers and a slight decrease in cost recovery from commercial customers. Directionally, this change aligns with the cost of service analysis which suggests costs should be shifted from commercial to residential over time. Base Rates Our recommendation is that the current commodity charge for residential customers be increased from $0.44 per therm to $0.56 per therm. The customer charge for residential should remain the same. Non-residential customers should also see an increase in their commodity charge of $0.12 per therm as shown in Table 1 below, while their customer charge stays the same. We also recommend that Central Pasco customers continue to pay the Pasco Surcharge in addition to the customer charge monthly. The Pasco Surcharge results in an additional $8.00 for single- family, $15.00 for small commercial, $40.00 for medium commercial, $65.00 for large commercial, and $150 for interruptible monthly. Tables 1 and 2 present the proposed base rates and customer bill impacts, respectively. Note that all customers will see a decrease based on an anticipated reduction in the PGA related to reduced gas commodity prices. This change is independent of the recommendations above but is included to show a complete picture of how average customer bills will change. The decrease for commercial is greater than for residential due to the directional shift between commercial and residential customers described above. NATURAL GAS RATE STUDY REPORT 5 Table 1 – Existing and Proposed Base Rates Pinellas & West Pasco Central Pasco Pinellas & West Pasco Central Pasco Residential Service (RS) Customer Charge Month 16.00$ 24.00$ 16.00$ 24.00$ Commodity Charge(1)Therm 0.44$ 0.44$ 0.56$ 0.56$ Small Multi-Family Residential Service (SMF) Customer Charge Month 25.00$ 40.00$ 25.00$ 40.00$ Commodity Charge(1)Therm 0.44$ 0.44$ 0.56$ 0.56$ Medium Multi-Family Residential Service (MMF) Customer Charge Month 40.00$ 70.00$ 40.00$ 70.00$ Commodity Charge(1)Therm 0.44$ 0.44$ 0.56$ 0.56$ Large Multi-Family Residential Service (LMF) Customer Charge Month 95.00$ 160.00$ 95.00$ 160.00$ Commodity Charge(1)Therm 0.44$ 0.44$ 0.56$ 0.56$ Small General Service (SGS) Customer Charge Month 25.00$ 40.00$ 25.00$ 40.00$ Commodity Charge(1)Therm 0.38$ 0.38$ 0.50$ 0.50$ Medium General Service (MGS) Customer Charge Month 40.00$ 70.00$ 40.00$ 70.00$ Commodity Charge(1)Therm 0.34$ 0.34$ 0.46$ 0.46$ Large General Service (LGS) Customer Charge Month 95.00$ 160.00$ 95.00$ 160.00$ Commodity Charge(1)Therm 0.30$ 0.30$ 0.42$ 0.42$ Interruptible Service (IS) Customer Charge Month 250.00$ 400.00$ 250.00$ 400.00$ Commodity Charge(1)Therm 0.24$ 0.24$ 0.28$ 0.28$ (1) Increase to be accompanied by a reduction in the PGA, ECA, RIA and UIA Customer Class Per Existing Proposed 6 CITY OF CLEARWATER Table 2 – Monthly Bill Impacts Customer Class Existing Bill (1)Proposed Bill (2)$ Change % Change Residential Service (RS) - Summer 29.00$ 28.79$ (0.21)$ -1% Residential Service (RS) - Winter 55.00$ 54.36$ (0.64)$ -1% Small Multi-Family Residential Service (SMF)90.00$ 88.93$ (1.07)$ -1% Medium Multi-Family Residential Service (MMF)3,420.00$ 3,364.35$ (55.65)$ -2% Large Multi-Family Residential Service (LMF)420.00$ 414.65$ (5.35)$ -1% Small General Service (SGS)478.82$ 451.51$ (27.31)$ -6% Medium General Service (MGS)3,181.59$ 2,986.49$ (195.09)$ -6% Large General Service (LGS)13,477.98$ 12,619.57$ (858.40)$ -6% (1) Based on current PGA of $0.69 (2) Based on reduction PGA, ECA and RIA to reflect dividend shift and reduction in PGA based on projected gas cost NATURAL GAS RATE STUDY REPORT 7 2. Financial Plan 2.1. Financial Planning Metrics & Process The financial plan establishes the overall level of revenue required to fund ongoing operations and capital repair, replacements, and improvements in a financially sustainable manner. This involves three steps: 1. A forecast of revenue under existing rates, which forms the baseline against which any adjustment of revenues can be considered. 2. A forecast of operation and maintenance (O&M) expenses and capital expenditures. 3. A detailed cash flow forecast which compares revenues and expenses and evaluates the appropriateness of existing revenues through the context of defined financial metrics. The specific financial metrics used in this study include days O&M expenses, debt service coverage, return on rate base, and return on equity. Days O&M Expenses is a measure of the ability of the utility to deal with unanticipated declines in revenue, emergency expenditures, or general working capital needs without reducing service quality or dramatically increasing rates. The City’s adopted policy for unrestricted utility fund balances (working capital reserves) requires at least six months, or 180 days, O&M expenses. While the number of days a utility will seek to maintain will vary by utility, we typically recommend a minimum of 180 days, which is consistent with City policy. This can be used for working capital (timing differences in revenues and expenditures), temporary revenue shortfalls, or emergency capital repairs. For the purpose of this study, the days O&M expenses calculation includes both O&M expenses and debt service (existing and proposed). Gas cost is excluded as this is a pass-through expense with a separate recovery mechanism (i.e., the PGA). Debt Service Coverage Ratios are a measure of how much current revenues exceed current debt service obligations, after operating expenses have been funded. A ratio above 1 indicates that current net revenues (operating revenues less expenses) are sufficient to meet current debt service obligations with additional free cash flow for capital investment and/or contributions to reserves. A ratio of less than 1 would mean that the utility does not have sufficient current revenues to cover operating expenses and meet debt service payment obligations. Coverage requirements vary by the type of debt issued and bond covenants, as well as an individual utility’s goals for credit ratings. For the purpose of this study, the financial plan developed for the City is based on maintaining a coverage ratio of at least 1.50 times. Return on Rate Base is the measurement of operating profit on investments in assets. It is calculated by dividing operating income (before allowance for dividends and interest on long-term debt) by rate base, or the value of assets less accumulated depreciation (net utility plant). Return on rate base is a common financial metric used by public service commissions when assessing the reasonableness of regulated natural gas utility rates. Return on Equity (ROE) is a subset of return on rate base and measures the profit available for equity holders after creditors have been paid. It is calculated by dividing operating income (after interest on long-term debt) by equity. ROE is also a common financial metric used by public service commissions when assessing the reasonableness of regulated natural gas utility rates; however, a reasonable ROE will differ by utility depending on its capital structure. These various metrics provide a framework to help determine the necessity for revenue adjustments. 8 CITY OF CLEARWATER 2.2. Projected Revenues 2.2.1. EXISTING RATES/STRUCTURE CGS provides natural gas and propane services to residential, commercial and industrial customers in Pinellas and Pasco Counties. CGS’s rate structure consists of three distinct groups of charges: a purchased gas adjustment rate, rate riders and base rates. The purchased gas adjustment (PGA) rate is the mechanism by which CGS recovers the cost of natural gas and propane it purchases to distribute to customers. Purchased gas and propane expenses can fluctuate significantly due to changes in market prices and weather conditions. The cost of these commodity purchases is passed on to CGS customers through the PGA. The PGA is reviewed monthly and adjusted periodically based on actual and projected gas and propane supply costs, all other applicable expenses, and projected demand. Per the City’s ordinance, the adjustment of the PGA to reflect the over or under recovery of costs is made at the discretion of the City Manager or designee. CGS employs different PGA rates for different classes of customers depending on the cost to purchase gas on their behalf, which varies based on service arrangements and location. Most CGS customers pay the firm PGA rate. Interruptible customers pay a reduced PGA, which excludes demand related charges because CGS can interrupt service to these customers during times of peak demand. CGS also employs contract rates for certain customers in situations where the firm rate would not be competitive with other providers. Finally, customers in central Pasco County (generally east of Suncoast Parkway), pay an additional surcharge which reflects the incremental cost of gas purchased to serve them. CGS also has multiple rate riders designed to recover certain costs or mitigate operational risk. Specifically, CGS’ rate structure includes an Energy Conservation Adjustment (ECA), a Usage and Inflation Adjustment (UIA), and a Regulatory Imposition Adjustment (RIA). The Energy Conservation Adjustment (ECA) is designed to recover costs associated with energy conservation and demand management including rebates and incentive programs. The ECA is applicable to all firm natural gas and propane customers. The ECA is reviewed monthly and adjusted periodically based on actual and projected energy conservation program costs and projected demand. The adjustment to the ECA to reflect the over or under recovery of costs is made at the discretion of the City Manager or designee. The Usage and Inflation Adjustment (UIA) is designed to mitigate operational and financial risks associated with fluctuations in demand and inflationary cost increases. The UIA is applicable to all firm natural gas and propane customers. The UIA may be implemented at the discretion of the City Manager or designee based on variations in estimated use per customer and inflationary assumptions identified in this rate study. The UIA forecasted revenues are based on August 2023 CPI of 298.9751 and an assumed increase of around 3.0% annually. The Regulatory Imposition Adjustment (RIA) is designed to recover the cost of environmental, operator qualification, distribution integrity, inspection, survey, and other regulatory imposed program requirements. The RIA is appliable to all firm natural and propane customers. The RIA is reviewed periodically and adjusted to reflect the over or under recovery of costs at the discretion of the City Manager or designee. 1 Consumer Price Index all items in South urban, all urban customers, not seasonally adjusted. NATURAL GAS RATE STUDY REPORT 9 The final component of CGS’s rate structure are the base rates. The primary2 customer classes served under the base rates fall into the categories indicated in Table 3. The size distinction (small, medium, large) is based on the average annual throughput of the customer. As noted above, the PGA rate is the mechanism by which the purchase of gas is recovered. The rate riders are intended to isolate the recovery of specifically defined costs in order to mitigate operational risk. Base rates, by contrast, are intended to recover CGS’s cost of distributing natural gas to customers after PGA and rider specific costs have been excluded. In other words, while the PGA and rider related costs are specifically defined, the costs recovered by the base rates are driven by demands placed on the CGS system by customers, which drive the design and operation of that system. Therefore, it is appropriate to design the base rates around each customer class’s proportionate contribution to these demands. Accordingly, the base rates are one of the focuses of the cost of service analysis in Section 3. Table 3 – Existing Base Rates 2 In addition to the rates shown above, CGS employs a variety of market based rates including propane rates, natural gas vehicle sales, and contract rates. Customers served under the market based rates have alternatives to CGS service. Accordingly, CGS sets these rates to be competitive with other providers. Customer Class Per Pinellas & West Pasco Central Pasco Residential Service (RS) Customer Charge Month 16.00$ 24.00$ Commodity Charge Therm 0.44$ 0.44$ Small Multi-Family Residential Service (SMF) Customer Charge Month 25.00$ 40.00$ Commodity Charge Therm 0.44$ 0.44$ Medium Multi-Family Residential Service (MMF) Customer Charge Month 40.00$ 70.00$ Commodity Charge Therm 0.44$ 0.44$ Large Multi-Family Residential Service (LMF) Customer Charge Month 95.00$ 160.00$ Commodity Charge Therm 0.44$ 0.44$ Small General Service (SGS) Customer Charge Month 25.00$ 40.00$ Commodity Charge Therm 0.38$ 0.38$ Medium General Service (MGS) Customer Charge Month 40.00$ 70.00$ Commodity Charge Therm 0.34$ 0.34$ Large General Service (LGS) Customer Charge Month 95.00$ 160.00$ Commodity Charge Therm 0.30$ 0.30$ Interruptible Service (IS) Customer Charge Month 250.00$ 400.00$ Commodity Charge Therm 0.24$ 0.24$ 10 CITY OF CLEARWATER 2.2.2. ACCOUNT GROWTH AND USAGE FORECAST To forecast revenue under existing rates, Raftelis worked with City staff to develop projections of future account growth and customer usage. Customer account growth is influenced by development within the CGS service area as well as customer conversion to natural gas from propane and electric service. Over the past decade, the City has experienced a consistent increase in natural gas customers that has expanded more rapidly over the past several years. The expansion of the system has, and continues to be, a priority identified in the City’s strategic plan. Specifically, the City’s strategic plan targets a net addition of approximately 2,000 accounts annually. Although current indications suggest continued robust levels of account growth, through discussion with City staff, it was determined that account growth assumed within the financial plan should be based on a reasonable level of conservatism. As such, the financial plan projects growth of approximately 1,300 – 1,600 accounts annually, which is less than the City’s target, but similar to the trend over the past several years. Table 4 presents the historical and projected account growth by customer class. Baseline natural gas usage needs to be normalized due to fluctuations in usage arising from weather. Typically, to normalize usage, a regression analysis is performed to assess the correlation between usage and heating degree-days, particularly for weather sensitive customer classes (e.g. residential and small commercial). The correlation can then be used to project usage based on normal or expected heating degree-days, which are based on a historical average. This leads to a normalized usage-per account. Due to the absence of significant seasonal variability in the CGS’s service area, a full weather normalization analysis was not performed, and a multi-year average of usage-per-account was used for each customer class instead. The financial plan assumes the calculated usage-per-account remains constant over the forecast period for all customer classes. Any lost revenue from future decline in usage-per-account, or any usage below the forecast, can be recovered through the UIA. For the purpose of this study, normalized usage per account for firm natural gas single-family residential customers and commercial customers was 195 therms and 5,501 therms, respectively. Table 5 presents historical and projected usage. NATURAL GAS RATE STUDY REPORT 11 Table 4 – Historical and Projected Customer Account Growth Description FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Natural Gas Service Residential Service 21,053 22,844 24,571 26,117 27,533 29,042 30,295 31,605 32,974 34,406 Small Multi-Family Residential Service 102 103 102 101 101 101 101 101 101 101 Medium Multi-Family Residential Service 2 2 2 2 2 2 2 2 2 2 Large Multi-Family Residential Service 1 1 1 1 1 1 1 1 1 1 Small General Service 2,105 2,149 2,197 2,234 2,293 2,354 2,416 2,480 2,546 2,614 Medium General Service 120 120 102 110 113 116 119 122 125 128 Large General Service 5 3 3 2 2 2 2 2 2 2 Residential Air Conditioning - - - - - - - - - - General Air Conditioning 1 1 - - - - - - - - Large Air Conditioning - - - - - - - - - - Street Lighting - No Maint 1 1 1 1 1 1 1 1 1 1 Street Lighting - Maint - - - - - - - - - - Natural Gas Vehicle Service 1 2 2 2 2 2 2 2 2 2 Natural Gas Generator/Standby 43 47 53 57 58 60 62 63 65 67 Interruptible Service - Standard 6 6 6 6 6 6 6 6 6 6 Interruptible Service - Contract 10 12 12 13 13 13 13 13 13 13 Contract Gas Service - Small 145 145 152 139 139 139 139 139 139 139 Contract Gas Service - Medium 24 27 26 22 22 22 22 22 22 22 Contract Gas Service - Large 3 3 3 3 3 3 3 3 3 3 Contract Transportation Service - - - - - - - - - - 1 ---------- Subtotal: Natural Gas Service 23,622 25,466 27,233 28,810 30,290 31,864 33,184 34,562 36,002 37,507 Propane Gas Service 1,928 1,950 1,986 2,016 2,016 2,016 2,016 2,016 2,016 2,016 1 ---------- Grand Total 25,550 27,416 29,219 30,826 32,306 33,880 35,200 36,578 38,018 39,523 Annual Change - %7.3%6.6%5.5%4.8%4.9%3.9%3.9%3.9%4.0% Annual Change - Accounts 1,866 1,803 1,607 1,480 1,574 1,320 1,379 1,440 1,504 12 CITY OF CLEARWATER Table 5 – Historical and Projected Customer Usage (Therms) Description FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Natural Gas Service Residential Service 3,802,055 4,222,259 4,842,636 5,001,552 5,253,271 5,546,923 5,788,713 6,041,587 6,306,075 6,582,738 Small Multi-Family Residential Service 68,514 72,679 70,340 69,054 69,239 69,239 69,239 69,239 69,239 69,239 Medium Multi-Family Residential Service 65,319 54,259 64,580 61,721 62,191 62,191 62,191 62,191 62,191 62,191 Large Multi-Family Residential Service 136 165 148 115 139 139 139 139 139 139 Small General Service 8,190,362 7,472,379 8,313,028 8,384,057 8,674,371 8,907,858 9,147,764 9,394,270 9,647,561 9,907,831 Medium General Service 2,946,760 2,814,489 2,686,618 2,879,491 2,853,356 2,928,446 3,005,545 3,084,708 3,165,990 3,249,451 Large General Service 673,888 487,101 390,508 380,322 307,589 315,278 323,160 331,239 339,520 348,008 Residential Air Conditioning - - 971 - - - - - - - General Air Conditioning 20,907 16,953 4,516 - - - - - - - Large Air Conditioning - - - - - - - - - - Street Lighting - No Maint - - - (8,006) - - - - - - Street Lighting - Maint - - - - - - - - - - Natural Gas Vehicle Service 543,853 638,561 659,655 656,976 906,027 906,027 906,027 906,027 906,027 906,027 Natural Gas Generator/Standby 7,396 6,443 10,040 16,229 13,139 13,469 13,806 14,153 14,507 14,871 Interruptible Service - Standard 1,052,482 1,117,805 1,118,250 1,120,675 1,078,712 1,078,712 1,078,712 1,078,712 1,078,712 1,078,712 Interruptible Service - Contract 5,124,827 6,326,276 6,398,475 6,116,619 6,033,828 6,033,828 6,033,828 6,033,828 6,033,828 6,033,828 Contract Gas Service - Small 732,819 660,694 775,996 664,425 682,320 682,320 682,320 682,320 682,320 682,320 Contract Gas Service - Medium 818,484 758,216 798,656 736,321 682,866 682,866 682,866 682,866 682,866 682,866 Contract Gas Service - Large 412,070 394,182 447,059 407,063 409,609 409,609 409,609 409,609 409,609 409,609 Contract Transportation Service - - - - - - - - - - 1 ---------- Subtotal: Natural Gas Service 24,459,872 25,042,462 26,581,476 26,486,612 27,026,656 27,636,904 28,203,918 28,790,885 29,398,584 30,027,829 Propane Gas Service 391,812 363,491 426,873 431,448 403,178 403,178 403,178 403,178 403,178 403,178 1 ---------- Grand Total 24,851,685 25,405,953 27,008,349 26,918,060 27,429,833 28,040,082 28,607,096 29,194,063 29,801,762 30,431,006 Annual Change - %2.2%6.3%-0.3%1.9%2.2%2.0%2.1%2.1%2.1% Annual Change - Usage 554,268 1,602,397 (90,289) 511,773 610,248 567,015 586,967 607,699 629,244 NATURAL GAS RATE STUDY REPORT 13 2.2.3. PROJECTED REVENUES UNDER EXISTING RATES Given the growth in accounts and usage over the forecast period and projected increase in base rates in both FY 2026 and FY 2028, both fixed and variable revenues are projected to increase. Table 6 shows projected revenue based on existing rates over the forecast period. In addition to natural gas sales, there are other ancillary sources of revenue from propane sales, gas service charges, appliance sales, installation charges, material charges, inspection fees, late payment fees, franchise fees, and gross receipts tax collection. In our projection, we assume that revenues collected for franchise fees, gross receipts taxes, and revenues from the riders are equal to the expenses incurred. Table 6 – Revenue Under Existing Rates 2.3. Projected Revenue Requirements 2.3.1. OPERATING EXPENSES The basis for the operating expense forecast is CGS’s FY 2023 budget. Based on a review of historical actual performance, and through discussions with CGS staff, we reduced the budget to 97% of the approved amounts to align with an expected budget execution rate. We then applied escalation factors each year to reflect anticipated inflation over the forecast period. As described above, CGS currently has a UIA rate which is designed to capture any inflation that occurs over time. The rate recommendations presented in this report assume that the UIA will be shifted to base rates, re-set to $0.00 and adjusted as needed to capture changes in inflation. Table 7 shows a summary of CGS’s forecast operating expenses. These expenses fall into 4 broad categories: PGA specific, Rider specific, Non- Fuel expenses, and Taxes. PGA specific costs include the cost of purchasing gas for customers as well as a portion of other operating costs including administrative costs and a portion of the dividend to the City of Clearwater. As described in further detail in Sections 3 and 4, we recommend that the City shift the dividend out of the PGA and into the base rates, where it is more appropriately recovered. Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Rate Revenue Non-Fuel Energy (NFE) Revenue Natural Gas NFE Revenue 15,630,342$ 16,118,333$ 18,087,632$ 18,668,454$ 20,998,941$ Propane NFE Revenue 656,869 656,869 722,388 722,388 794,458 1 ----- Subtotal: Non-Fuel Energy (NFE) Revenue 16,287,211$ 16,775,202$ 18,810,020$ 19,390,842$ 21,793,399$ Rider Revenue (ECA, RIA, UIA) ECA 3,133,231$ 3,198,644$ 3,265,787$ 3,334,707$ 3,405,452$ RIA 261,907 266,227 270,671 275,243 279,946 UIA 874,931 550,913 565,973 581,448 597,349 1 ----- Subtotal: Rider Revenue (ECA, RIA, UIA) 4,270,069$ 4,015,784$ 4,102,431$ 4,191,398$ 4,282,747$ PGA Revenue 22,112,197 22,629,421 23,159,592 23,703,035 24,260,081 1 ----- Subtotal: Rate Revenue 42,669,477$ 43,420,406$ 46,072,043$ 47,285,275$ 50,336,228$ Other Revenue Miscellaneous Revenues 4,285,420$ 4,285,420$ 4,285,420$ 4,285,420$ 4,285,420$ Gross Receipts Tax 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Franchise Fees 1,664,000 1,664,000 1,664,000 1,664,000 1,664,000 Interest Earnings 235,000 235,000 235,000 235,000 235,000 1 ----- Subtotal: Other Revenue 7,184,420$ 7,184,420$ 7,184,420$ 7,184,420$ 7,184,420$ ----- Grand Total Revenue 49,853,897$ 50,604,826$ 53,256,463$ 54,469,695$ 57,520,648$ 14 CITY OF CLEARWATER Rider specific costs include the specific costs associated with performing these activities (as described in Section 2.2.1) and a portion of other operating costs including administrative costs and a portion of the dividend to the City. As noted above, the costs associated with these riders are accounted for within specific costs centers in CGS’s detailed budgeting and financial reporting records. Raftelis segmented these costs from the overall budget to ensure that the costs associated with these riders are transparently excluded from base rates. Similar to the PGA, we are recommending the portion of the dividend recovered in the ECA and RIA be moved to base rates to improve alignment between the intent of the rider and the costs which are recovered by it. It is important to recognize that the shift of divided recovery from the PGA and riders to base rates would not impact what the customer pays3 but would improve alignment between the intent of the PGA and rider and the costs which are recovered by them. Non-Fuel costs include administrative and customer service costs not attributed to the PGA or riders and all other costs related to CGS’s operation of the gas system. Taxes relate to franchise fees and taxes imposed on CGS by governmental jurisdictions within which CGS provides gas service. CGS levies a charge on every purchase of gas within a jurisdiction to recover the costs assessed by governmental entities in accordance with the franchise agreement in force between CGS and other governmental entities. The fees collected within each governmental jurisdiction are used exclusively to pay the franchise fees and other governmental fees, taxes, and other impositions levied on services within that governmental jurisdiction. All taxes due to the appropriate governmental entity (such as but not limited to the State of Florida sales tax, county sales tax, municipal utility tax, and others) which may be legally levied on the purchase of gas are billed to the customers receiving such service. For the purposes of this rate study, franchise fees and taxes are shown as pass- through revenues and expenses. Table 7 – Forecast Operating Expenses 2.3.2. CAPITAL EXPENDITURES Capital expenditures are incurred to recapitalize and make additions to gas system assets. Capital expenditures include principal and interest payments on debt obligations and rate financed capital. CGS develops an annual Capital Improvements Plan (CIP) that identifies specific projects the City would like to undertake over the next five years. The current CIP identifies $48.9 million in project expenditures through FY 2028 and includes replacements and upgrades to the transmission and distribution system, service extensions, expanded energy conservation, new 3 The dividend is currently recovered on a per-them basis within the PGA and riders. Our recommendation shifts this recovery to the commodity rates, which are also charged per therm. The net impact of this change is $0.00 per therm. Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Non-Fuel Expenses 17,680,174$ 18,161,355$ 18,655,741$ 19,163,696$ 19,685,598$ Rider Related Expenses Energy Conservation Adjustment (ECA)2,633,231$ 2,698,644$ 2,765,787$ 2,834,707$ 2,905,452$ Regulatory Imposition Adjustment (RIA)261,907 266,227 270,671 275,243 279,946 Usage and Inflation Adjustment (UIA)- - - - - 1 ----- Subtotal: Rider Related Expenses 2,895,138$ 2,964,871$ 3,036,458$ 3,109,950$ 3,185,398$ Purchased Gas Expenses Natural Gas 21,242,645$ 21,739,577$ 22,248,949$ 22,771,072$ 23,306,266$ Propane 869,552 889,844 910,644 931,963 953,816 1 ----- Subtotal: Purchased Gas Expenses 22,112,197$ 22,629,421$ 23,159,592$ 23,703,035$ 24,260,081$ Taxes 2,664,000 2,664,000 2,664,000 2,664,000 2,664,000 1 ----- Total: Operating Expenses 45,351,509$ 46,419,647$ 47,515,791$ 48,640,682$ 49,795,077$ NATURAL GAS RATE STUDY REPORT 15 buildings, and other projects. Raftelis worked closely with City staff to develop a plan to finance these future investments. As shown in Table 8 below, a portion of the CIP is assumed to be funded from proceeds obtained from the issuance of additional debt. Debt funding can provide significant advantages by spreading out the cost of major capital programs over time, equitably spreading the cost of these assets over their beneficiaries (current and future customers). This study assumes one new revenue bond is issued in FY 2025. The annual debt service from the proposed new revenue bond has been shaped to smooth out the cash flow impacts of future debt service payments given CGS’s current debt profile. Specifically, CGS’s outstanding debt service fully matures in FY 2027, which provides flexibility to structure new debt repayment starting in FY 2028. Projects in the CIP identified specifically for expanded energy conservation should be funded through the ECA. The CIP sources and uses are shown in Table 8. Table 8 – Capital Improvements Plan The City has two outstanding debt obligations on the natural gas system. Annual debt service payments for these obligations are approximately $900,000 annually, with balloon principal payments due in FY 2025, FY 2026 and FY 2027. Table 9 presents CGS’s annual debt service payments over the forecast period, including the proposed new debt service mentioned above. Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Capital Projects Line Relocation Pinellas - Maintenance 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ Line Relocation Pasco - Maintenance 25,000 25,000 25,000 25,000 25,000 Gas Meter Changeout - Pinellas Capitalized 300,000 300,000 300,000 300,000 300,000 Gas Meter Change Out - Pasco Capitalized 200,000 200,000 200,000 200,000 200,000 Line Relocation Pinellas - Capitalized 300,000 300,000 300,000 300,000 300,000 Line Relocation Pasco - Capitalized 300,000 300,000 300,000 300,000 300,000 Pinellas New Mains & Service Lines 2,750,000 2,750,000 2,000,000 2,000,000 2,000,000 Pinellas New Mains & Service Lines - Special 3,850,000 3,850,000 - - - Pasco New Mains & Service Lines 4,000,000 2,500,000 2,500,000 2,500,000 2,500,000 Gas Inventory Work Management System - 1,500,000 1,500,000 - - Expanded Energy Conservation 500,000 500,000 500,000 500,000 500,000 Natural Gas Vehicles - - - - - Future IMS Software and Hardware - 250,000 25,000 - - Pasco training building and warehouse - - 1,700,000 - - Pasco Gate Station 500,000 500,000 500,000 - - Pinellas Building: Equipment Replacement and Repair 200,000 200,000 200,000 200,000 200,000 Gas Vehicle Additions - - - - - Capital Project Allowance - - - - - ----- Total: Capital Projects 12,950,000$ 13,200,000$ 10,075,000$ 6,350,000$ 6,350,000$ Financing Sources Revenue Bonds - 23,000,000 - - - PAYGO 12,450,000 3,000,000 3,000,000 3,000,000 5,850,000 ECA PAYGO 500,000 500,000 500,000 500,000 500,000 ----- Total: Financing Sources 12,950,000$ 26,500,000$ 3,500,000$ 3,500,000$ 6,350,000$ 16 CITY OF CLEARWATER Table 9 – Annual Debt Service 2.3.3. DIVIDEND TO CITY OF CLEARWATER Per adopted City policy, CGS makes an annual payment to the City in the form of a dividend. The dividend is calculated as 50% of CGS’ prior year net income but not less than $1.7 million. The projected dividend payment in the financial forecast is based on the FY 2023 budget. Transfers between the City owned utility and the City’s general government are common throughout the municipal utility industry. CGS benefits from a wide variety of services provided by the City but does not pay property taxes. If the City did not provide these services, CGS would need to either hire additional staff to perform the same functions or contract them out. The dividend, in part, recognizes the cost of services provided. It is our understanding that the City’s water and wastewater utilities pay a Payment in Lieu of Taxes (PILOT) based on a percentage of revenues, in recognition of this same concept. In addition, the dividend recognizes the investment City taxpayers have made in order to enter the competitive gas industry. As described in the next section, the dividend provides a reasonable return to City taxpayers in recognition of the investment they have made in the gas utility. 2.3.4. CASH FLOW FORECAST The final step in the financial planning process involves compiling a cash flow forecast and evaluating the appropriateness of CGS’s current revenue levels given the financial performance metrics identified in Section 2.1: days O&M expenses, debt service coverage ratios, return on rate base and return on equity (ROE). While projected expenses exceed projected revenues, CGS has existing cash on hand above the 180 day minimum. Raftelis recommends that CGS maintain existing revenue levels in FY 2024, evaluating the need for addition base rate adjustment FY 2026 and FY 2028, currently projected at 10%. Table 10 provides the cash flow forecast for the 5-year period, which includes the projected rate adjustments mentioned above. As shown, total revenues are projected to increase from $49.9 million in FY 2023 to over $57.5 million by the end of the forecast period. Under the projected rate adjustments, days cash and debt service coverage remain strong throughout the forecast and consistent with minimum targets. Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Gas Refunding Bonds Series 2013 Principal 440,000$ 1,485,000$ 1,520,000$ -$ -$ Interest 83,025 72,421 36,632 - - ----- Subtotal: Series 2013 523,025$ 1,557,421$ 1,556,632$ -$ -$ Gas Refunding Bonds Series 2014 Principal 305,000$ 315,000$ 325,000$ 2,040,000$ -$ Interest 79,700 71,556 63,146 54,468 - ----- Subtotal: Series 2014 384,700$ 386,556$ 388,146$ 2,094,468$ -$ Proposed New Debt Service (1) Principal -$ -$ -$ -$ 420,713$ Interest - - - - 1,150,000 ----- Subtotal: Proposed New Debt Service -$ -$ -$ -$ 1,570,713$ ----- Grand Total 907,724$ 1,943,977$ 1,944,778$ 2,094,468$ 1,570,713$ (1) For planning purposes, assumes 3 years of capitalized interest with principal repayment beginning in FY 2028. NATURAL GAS RATE STUDY REPORT 17 Table 10 - Cash Flow Forecast In order to assess the projected level of return on rate base and return on equity, Raftelis developed the pro-forma income statement shown on Table 11 for the forecast period. Table 12 then indicates the calculated return on rate base and return on equity, both of which range between 1.0% - 3.0% over the forecast period. Given the current interest rate environment, the projected return on rate base and return on equity are lower than what a regulated utility would likely be granted assuming a similar capital structure. However, since recent actual returns generated by CGS’s natural gas system have ranged from 7.0% to 8.0%, which is consistent with returns granted by state public service commissions, and due to CGS’s strong liquidity, it was determined, through discussions with City staff, that lower projected returns were not unreasonable but should be monitored carefully prior to the next rate study. Also, it is important to note that—unlike investor-owned utilities—the return being earned by CGS does not go to shareholders. It is used to fund general government services that would otherwise by funded by taxes. Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Revenue Rate Revenue Non-Fuel Energy (NFE) Revenue 16,287,211$ 16,775,202$ 18,810,020$ 19,390,842$ 21,793,399$ Rider Revenue (ECA, RIA, UIA) 4,270,069 4,015,784 4,102,431 4,191,398 4,282,747 PGA Revenue 22,112,197 22,629,421 23,159,592 23,703,035 24,260,081 1 ----- Subtotal: Rate Revenue 42,669,477$ 43,420,406$ 46,072,043$ 47,285,275$ 50,336,228$ Other Revenue 7,184,420$ 7,184,420$ 7,184,420$ 7,184,420$ 7,184,420$ ----- Grand Total Revenue 49,853,897$ 50,604,826$ 53,256,463$ 54,469,695$ 57,520,648$ Expenses Operating Expenses Non-Fuel Expenses 17,680,174$ 18,161,355$ 18,655,741$ 19,163,696$ 19,685,598$ Rider Related Expenses 2,895,138 2,964,871 3,036,458 3,109,950 3,185,398 Purchased Gas Expenses 22,112,197 22,629,421 23,159,592 23,703,035 24,260,081 Taxes 2,664,000 2,664,000 2,664,000 2,664,000 2,664,000 1 ----- Subtotal: Operating Expenses 45,351,509$ 46,419,647$ 47,515,791$ 48,640,682$ 49,795,077$ Capital Expenses PAYGO Capital 12,950,000$ 3,500,000$ 3,500,000$ 3,500,000$ 6,350,000$ Debt Service 907,724 1,943,977 1,944,778 2,094,468 1,570,713 1 ----- Subtotal: Capital Expenses 13,857,724$ 5,443,977$ 5,444,778$ 5,594,468$ 7,920,713$ ----- Grand Total Expenses 59,209,233$ 51,863,623$ 52,960,569$ 54,235,150$ 57,715,790$ Financial Performance Beginning Balance 28,026,334$ 18,670,998$ 17,412,201$ 17,708,095$ 17,942,640$ Surplus/ (Deficit)(9,355,336)$ (1,258,797)$ 295,894$ 234,545$ (195,142)$ ----- Ending Balance 18,670,998$ 17,412,201$ 17,708,095$ 17,942,640$ 17,747,498$ Days Cash (w/PGA)147 131 131 129 126 Days Cash (w/o PGA)282 247 246 242 239 Days Cash (NFE + Debt)385 350 346 342 329 Revenue Bond DSCR 4.96 2.15 2.95 2.78 4.92 18 CITY OF CLEARWATER Financial Plan – Key Findings and Recommendations » Key Findings – 1. Projected expenses exceed existing revenues, but liquidity remains strong. 2. Projected CGS revenues produce a rate of return lower than what would likely be expected by a regulated utility. However, given CGS’s strong liquidity, it was determined that lower rates of return are not unreasonable but should be monitored carefully. » Recommendations – Plan for projected increases in base rates in FY 2026 and FY 2028 to cover utility expenses and meet financial performance metrics. Table 11 – Pro-forma Income Statement Table 12 – Return on Equity/Rate Base Calculation Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Revenues 49,618,897$ 50,369,826$ 53,021,463$ 54,234,695$ 57,285,648$ Operating Expenses Non-Fuel Energy (NFE) Expenses 17,680,174$ 18,161,355$ 18,655,741$ 19,163,696$ 19,685,598$ Rider Related Expenses 2,640,421 2,710,154 2,781,741 2,855,233 2,930,681 Purchased Gas Adjustment (PGA) Expenses 20,666,914 21,184,138 21,714,309 22,257,752 22,814,798 Taxes 2,664,000 2,664,000 2,664,000 2,664,000 2,664,000 PILOT - - - - - Depreciation 4,373,757 4,810,423 5,210,280 5,318,947 5,427,614 ----- Subtotal Operating Expenses 48,025,266$ 49,530,070$ 51,026,072$ 52,259,629$ 53,522,691$ ----- Operating Income 1,593,631$ 839,756$ 1,995,391$ 1,975,066$ 3,762,957$ Non-Operating Rev/(Exp)72,276 91,024 135,223 180,532 (915,000) ----- Income/(Loss) Before Transfers 1,665,907 930,780 2,130,614 2,155,598 2,847,957 Dividends to GF (Transfer Out)(1,700,000) (1,700,000) (1,700,000) (1,700,000) (1,700,000) ----- Net Change in Fund Equity (34,093)$ (769,220)$ 430,614$ 455,598$ 1,147,957$ Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Return on Equity Income/(Loss) Before Transfers 1,665,907$ 930,780$ 2,130,614$ 2,155,598$ 2,847,957$ Divided by: Equity 104,978,695 92,168,272 98,877,992 101,949,045 102,871,431 ----- Equals: Return on Equity 1.6%1.0%2.2%2.1%2.8% Return on Rate Base Operating Income 1,593,631$ 839,756$ 1,995,391$ 1,975,066$ 3,762,957$ Divide by: Rate Base 110,663,695 119,053,272 123,917,992 124,949,045 125,871,431 ----- Equals: Return on Rate Base 1.4%0.7%1.6%1.6%3.0% NATURAL GAS RATE STUDY REPORT 19 3. Cost of Service Analysis While the financial plan determines the overall level of rate revenue required to support the gas utility, the cost of service analysis is one tool that can be used to determine each customer class’s responsibility for that revenue requirement based on the demands they place on the gas system. 3.1. Process Cost of service allocations provide a measure of determining the proportionate responsibility of each customer class for the service provided. Analysis of these costs provides guidelines for rate design and for comparing revenue derived by the present rates from each class with the cost associated with providing service. Cost of service allocations are based upon conditions estimated for a test year that reflect typical operations of the gas utility. For this study, the test year is the City’s fiscal year ending September 30, 2024 (FY 2024). Following the development of the test year revenue requirement, the proportion of the total revenue requirement (i.e. O&M and capital) allocable to each customer class must be determined. This allocation represents the level of revenues that should be recovered from each customer class, given the operational demands that class places on the gas utility system. This allocation is performed via the following steps: 1. Allocation of Costs to Cost Drivers 2. Determination of Units of Service 3. Distribution of Cost to Customer Classes 3.2. Allocation of Costs to Cost Drivers Cost drivers represent the types of customer demand which drive variation in CGS’s costs. The costs drivers used for this study are: » Commodity » Capacity » Customer - Readiness to Serve (RTS) » Meters/Regulators » Services » Customer – Accts » Direct (PGA, ECA, RIA) Commodity costs are associated with volumetric throughput. Capacity costs are associated with providing adequate capacity in the transmission and distribution system to meet peak demand. Customer-Readiness to Serve (RTS) costs are associated with extending the distribution system to customers such that service is available 24/7/365 regardless of how much gas is used. Meters/regulators, service lines and customer accounts costs are all associated with delivering, measuring, and administering service at the customer level. As discussed in Section 2.2, CGS has three distinct types of rates: the PGA, riders and base rates. Accordingly, the cost of service analysis segments these costs into these three categories for cost allocation purposes. Table 13 indicates the cost allocation of each component of the revenue requirement. 20 CITY OF CLEARWATER Costs related to the PGA and riders (ECA, RIA) are directly assigned to those cost drivers. This step is necessary to isolate the PGA and rider specific costs to ensure they are not included in the base rates. The one exception is the dividend, a portion of which has historically been recovered in the PGA and riders. We believe these costs are more appropriately recovered in base rates because they relate to providing service to CGS customers more generally, rather than being specifically related to either the purchase of gas, or the activities covered by the riders. It should be noted that a full shift of all dividend costs may take time due to rolling expiration of contracts for certain customers. Costs related to base rates are allocated primarily based on CGS’s plant investment. Raftelis utilized CGS’s plant investment records to develop the plant allocator used to allocate these costs. The use of a plant allocator to allocate costs is common throughout the municipal utility industry and is based on the presumption that CGS incurs operating costs in proportion to the investment in gas infrastructure used to provide service to customers. Administrative costs and taxes were allocated using a composite allocator based on the allocation of the other operating costs. In addition to allocating CGS expenses to cost drivers, it is also important to allocate additional sources of revenue recovered by CGS which represent offsets to the revenues which must be recovered from base rates, the PGA and the riders. These are indicated on Table 14. The primary groupings are as follows: 1. Miscellaneous and other services revenues, which represent payments from customers for ancillary services provided by CGS such as the sale and installation of natural gas appliances, service charges, and plumbing. 2. Market PGA, Market Base Rates and Propane revenues, which are driven by market conditions (and not cost of service), so these revenues are credited against system revenue requirements rather than being included in the cost of service analysis. 3. Taxes which represent a pass-through of revenue collected on behalf of the taxing jurisdictions, accordingly, it is shown as both an expense and a revenue credit. 4. Interest earnings which represent the interest income earned on CGS’ various investments. In addition to these four categories of credits is a cash flow credit (addition to/(use of) fund balance). The cash flow credit accounts for the fact that the FY 2024 test year assumes CGS will use existing cash, rather than current revenues, to fund approximately $9.4 million in utility expenses. This reduces the amount of revenue needed from customers rates by $9.4 million. Similar to the treatment of expenses, the revenue offsets are allocated based on either direct, plant or O&M allocators. As described throughout this report, the PGA and riders are evaluated on a monthly basis and adjusted such that the rates recover cost of service. Accordingly, the remainder of the cost of service analysis focuses on allocating the portion of the revenue requirement that will be recovered from base rates. NATURAL GAS RATE STUDY REPORT 21 Table 13 – Revenue Requirement Allocation to Cost Drivers Cost of Description Service Commodity Capacity Customer Meters/Reg Services Cust Accts Direct PGA Direct ECA Direct RIA Direct UIA Operating Expenses Non-Fuel Expenses Administrative 1,054,114$ 44,553$ 178,211$ 222,763$ 396,023$ 148,509$ 64,055$ -$ -$ -$ -$ Direct 15,615,744 891,152 3,564,607 4,455,758 3,576,813 2,970,506 156,909 - - - - Customer Service 1,010,317 - - - - - 1,010,317 - - - - Dividend - - - - - - - - - - - 1 ----------- Subtotal: Non-Fuel Expenses 17,680,174$ 935,704$ 3,742,817$ 4,678,521$ 3,972,836$ 3,119,014$ 1,231,281$ -$ -$ -$ -$ Rider Related Expenses Energy Conservation Adjustment (ECA) Administrative 96,373$ -$ -$ -$ -$ -$ -$ -$ 96,373$ -$ -$ Direct 2,392,981 - - - - - - - 2,392,981 - - Customer Service - - - - - - - - - - - Dividend 143,877 143,877 - - - - - - - - - 1 ----------- Subtotal: Energy Conservation Adjustment (ECA)2,633,231$ 143,877$ -$ -$ -$ -$ -$ -$ 2,489,354$ -$ -$ Regulatory Imposition Adjustment (RIA) Administrative 14,834$ -$ -$ -$ -$ -$ -$ -$ -$ 14,834$ -$ Direct 136,233 - - - - - - - - 136,233 - Customer Service - - - - - - - - - - - Dividend 110,840 110,840 - - - - - - - - - 1 ----------- Subtotal: Regulatory Imposition Adjustment (RIA)261,907$ 110,840$ -$ -$ -$ -$ -$ -$ -$ 151,067$ -$ Usage and Inflation Adjustment (UIA)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1 ----------- Subtotal: Rider Related Expenses 2,895,138$ 254,717$ -$ -$ -$ -$ -$ -$ 2,489,354$ 151,067$ -$ Purchased Gas Expenses Natural Gas Administrative 1,958,725$ -$ -$ -$ -$ -$ -$ 1,958,725$ -$ -$ -$ Direct 17,896,500 - - - - - - 17,896,500 - - - Customer Service - - - - - - - - - - - Dividend (1)1,387,420 1,058,632 - - - - - 328,788 - - - 1 ----------- Subtotal: Natural Gas 21,242,645$ 1,058,632$ -$ -$ -$ -$ -$ 20,184,013$ -$ -$ -$ Propane Administrative 63,960$ -$ -$ -$ -$ -$ -$ 63,960$ -$ -$ -$ Direct 747,729 - - - - - - 747,729 - - - Customer Service - - - - - - - - - - - Dividend 57,863 - - - - - - 57,863 - - - 1 ----------- Subtotal: Propane 869,552$ -$ -$ -$ -$ -$ -$ 869,552$ -$ -$ -$ 1 ----------- Subtotal: Purchased Gas Expenses 22,112,197$ 1,058,632$ -$ -$ -$ -$ -$ 21,053,564$ -$ -$ -$ Taxes 2,664,000 112,595 450,381 562,976 1,000,847 375,317 161,883 - - - - 1 ----------- Subtotal: Operating Expenses 45,351,509$ 2,361,649$ 4,193,198$ 5,241,498$ 4,973,683$ 3,494,332$ 1,393,165$ 21,053,564$ 2,489,354$ 151,067$ -$ Capital Expenses Debt Service 907,724$ 51,802$ 207,206$ 259,008$ 207,916$ 172,672$ 9,121$ -$ -$ -$ -$ PAYGO 12,450,000 710,491 2,841,962 3,552,453 2,851,694 2,368,302 125,099 - - - - ECA PAYGO 500,000 - - - - - - - 500,000 - - 1 ----------- Subtotal: Capital Expenses 13,857,724$ 762,292$ 3,049,168$ 3,811,460$ 3,059,609$ 2,540,974$ 134,220$ -$ 500,000$ -$ -$ ----------- Grand Total Expenses 59,209,233$ 3,123,941$ 7,242,366$ 9,052,958$ 8,033,292$ 6,035,305$ 1,527,385$ 21,053,564$ 2,989,354$ 151,067$ -$ (1) It is assumed dividend recovery from contract customers will be shift to base rates over time. Base Rates PGA/Riders 22 CITY OF CLEARWATER Table 14 – Revenue Requirement Offsets and Net Revenue Requirement Cost of Description Service Commodity Capacity Customer Meters/Reg Services Cust Accts Direct PGA Direct ECA Direct RIA Direct UIA Rate Revenue Natural Gas NFE Revenue - Contract (2,007,070)$ (114,538)$ (458,154)$ (572,692)$ (459,723)$ (381,795)$ (20,167)$ -$ -$ -$ -$ Propane NFE Revenue Propane NFE Revenue - Standard (655,189)$ (37,390)$ (149,560)$ (186,950)$ (150,072)$ (124,633)$ (6,583)$ -$ -$ -$ -$ Natural Gas NFE Revenue - Contract (1,680) (96) (383) (479) (385) (320) (17) - - - - 1 ----------- Subtotal: Propane NFE Revenue (656,869)$ (37,486)$ (149,943)$ (187,429)$ (150,457)$ (124,953)$ (6,600)$ -$ -$ -$ -$ Rider Revenue (ECA, RIA, UIA) ECA (3,133,231)$ -$ -$ -$ -$ -$ -$ -$ (3,133,231)$ -$ -$ RIA (261,907) - - - - - - - - (261,907) - UIA (874,931) - - - - - - - - - (874,931) 1 ----------- Subtotal: Rider Revenue (ECA, RIA, UIA) (4,270,069)$ -$ -$ -$ -$ -$ -$ -$ (3,133,231)$ (261,907)$ (874,931)$ PGA Revenue (22,112,197) - - - - - - (22,112,197) - - - 1 ----------- Subtotal: Rate Revenue (29,046,204)$ (152,024)$ (608,097)$ (760,122)$ (610,180)$ (506,748)$ (26,768)$ (22,112,197)$ (3,133,231)$ (261,907)$ (874,931)$ Other Revenue Miscellaneous Revenues (4,285,420)$ (244,558)$ (978,233)$ (1,222,791)$ (981,583)$ (815,194)$ (43,060)$ -$ -$ -$ -$ Gross Receipts Tax (1,000,000) (42,265) (169,062) (211,327) (375,693) (140,885) (60,767) - - - - Franchise Fees (1,664,000) (70,330) (281,319) (351,649) (625,153) (234,433) (101,116) - - - - Interest Earnings (235,000) (13,411) (53,643) (67,054) (53,827) (44,703) (2,361) - - - - 1 ----------- Subtotal: Other Revenue (7,184,420)$ (370,564)$ (1,482,257)$ (1,852,822)$ (2,036,256)$ (1,235,215)$ (207,305)$ -$ -$ -$ -$ ----------- Grand Total Revenue Offsets (36,230,624)$ (522,589)$ (2,090,355)$ (2,612,944)$ (2,646,436)$ (1,741,962)$ (234,073)$ (22,112,197)$ (3,133,231)$ (261,907)$ (874,931)$ Addition to/(Use of) Fund Balance (9,355,336) (533,886) (2,135,543) (2,669,429) (2,142,856) (1,779,619) (94,004) - - - - Grand Total Expenses Above 59,209,233 3,123,941 7,242,366 9,052,958 8,033,292 6,035,305 1,527,385 21,053,564 2,989,354 151,067 - 0 ----------- Net Revenue Requirement - Firm NFE Rates 13,623,273$ 2,067,466$ 3,016,469$ 3,770,586$ 3,244,000$ 2,513,724$ 1,199,309$ (1,058,632)$ (143,877)$ (110,840)$ (874,931)$ Base Rates PGA/Riders NATURAL GAS RATE STUDY REPORT 23 3.3. Determination of Units of Service The next step in the cost allocation process is to summarize the units of service, which are the basis for the allocation of the total revenue requirement to each of the customer classes. Costs are allocated to customer classes in proportion to the class responsibility for use of the gas system. The units used to allocate costs are commodity units, capacity units and customer units. Commodity units are used to distribute costs which are incurred to support average demand and are calculated from annual throughput (dekatherms or dth) to assign commodity related costs to each customer class. Capacity units are used to distribute costs related to peak demand. Load factors are used to calculate peak demand by showing the ratio of average load to peak load. Similar to an interstate highway system, a gas system must be designed and operated to meet both average and peak demands. Load factors attribute the cost of meeting peak demand with the customers that contribute to peak demand. A perfect load factor is 100%, meaning the customer uses gas at a constant rate without any fluctuations in demand. There have not been material changes to the composition the customers within each class since CGS prior rate study. Accordingly, the existing load factors are reasonable and have been maintained. Customer units are used to distribute costs which are incurred regardless of how much gas a customer uses. These include costs related to making the gas system available to customers, the cost of installing and maintaining meters, regulators and customer service lines and the cost of providing customer service and billing. A weighting factor is used to recognize differences in potential demand and the larger and more expensive equipment typically required to serve larger customers. Table 15 indicates the development of the distribution factors, which represent each customer class’s share of commodity, capacity and customer costs based on their unique demand characteristics. Table 15 – Development of Distribution Factors 3.4. Distribution of Costs to Customer Classes Table 16 indicates the application of the commodity, capacity and customer distribution factors from Table 15. For example, Single Family Residential (RS) customers represent 52% of the capacity units and are allocated 52% of the capacity cost (i.e. $3.0 million x 0.52 = $1.6 million). This process is repeated for each customer class and cost driver to determine class cost of service indicated in the “total” column in Table 16. Description RS SMF MMF LMF SGS MGS LGS IS Total Commodity Annual Throughput (Therms)5,546,923 69,239 62,191 139 8,907,858 2,928,446 315,278 1,078,712 18,908,786 Commodity Allocator 29.3%0.4%0.3%0.0%47.1%15.5%1.7%5.7%100.0% Capacity Load Factor 13%14%18%12%30%39%39%100% Peak Demand 117,312 1,329 967 3 81,826 20,765 2,242 2,955 227,400 Capacity Allocator 51.6%0.6%0.4%0.0%36.0%9.1%1.0%1.3%100.0% Customer Related Customer Count 29,042 101 2 1 2,354 116 2 6 31,624 Weighting Factor 1.00 2.08 3.33 7.92 2.08 3.33 7.92 7.92 - Weighted Customers 29,042 210 7 8 4,896 386 17 48 34,612 Customer Allocator 83.9%0.6%0.0%0.0%14.1%1.1%0.0%0.1%100.0% 24 CITY OF CLEARWATER Cost of Service Analysis – Key Findings and Recommendations » Key Findings – 1. PGA and riders recover costs, which could be more appropriately included in base rates. 2. Residential customers are paying less than cost of service. 3. Non-Residential customers are paying more than cost of service. » Recommendations – 1. Consider shifting revenue recovery (dividend) from PGA and riders to base rates 2. Consider other opportunities (e.g., UIA) to support a directional shift in costs to residential customers to align with results of cost of service analysis. Table 16 – Distribution of Costs to Customer Classes and Comparison to Revenue under Existing Rates The bottom of Table 16 also provides a comparison of the calculated cost of service to revenues under the existing base rates. Cost of service, in total, exceeds revenues under existing rates largely due to a shift of dividend costs from the PGA and riders to the base rates. In addition, there are significant variances between class cost of service and existing base rate revenue. In general, residential customers (single and multi) are paying less than the cost of service and non-residential customers are paying more than the cost of service. Figure 4 below illustrates the customer class revenues under current base rates compared to the calculated cost of service. Figure 3 – Current Revenues and Cost of Service Description RS SMF MMF LMF SGS MGS LGS IS Total Commodity 606,495$ 7,571$ 6,800$ 15$ 973,976$ 320,193$ 34,472$ 117,945$ 2,067,466$ Capacity 1,556,154 17,630 12,828 41 1,085,428 275,448 29,736 39,203 3,016,469 Customer 3,163,746 22,886 726 863 533,362 42,013 1,813 5,177 3,770,586 Meters/Reg 2,721,910 19,689 624 742 458,875 36,146 1,560 4,454 3,244,000 Services 2,109,164 15,257 484 575 355,575 28,009 1,209 3,451 2,513,724 Customer Accts 1,006,292 7,279 231 274 169,646 13,363 577 1,647 1,199,309 --------- Total 11,163,761$ 90,312$ 21,692$ 2,511$ 3,576,862$ 715,173$ 69,366$ 171,877$ 15,811,553$ %71%1%0%0%23%5%0%1%100% Current Revenue 8,016,701$ 60,765$ 28,324$ 1,201$ 4,091,148$ 1,051,263$ 96,979$ 276,891$ 13,623,273$ %59%0%0%0%30%8%1%2%100% $ Difference 3,147,059$ 29,547$ (6,632)$ 1,310$ (514,286)$ (336,091)$ (27,613)$ (105,014)$ 2,188,280$ % Difference 39%49%-23%109%-13%-32%-28%-38%16% 60%71% 40%29% Current Cost of Service Residential Commercial NATURAL GAS RATE STUDY REPORT 25 4. Rate Design The objective of rate design is to reasonably and fairly set rates to recover the net revenue requirement. While recovering the revenue requirement for each class is the ultimate goal, rates must be reasonable and remain competitive with neighboring utilities. In the case of CGS, for each class to recover the class revenue requirements determined in the cost-of-service analysis, major changes are needed to the rate structure. For single-family residential, the largest class in CGS, this would mean drastic increases that may lead to rate shock for customers. As a result, it is more prudent to establish a directional goal of achieving cost of service over time by implementing incremental shifts toward customer class parity while remaining competitive with neighboring utilities such as Teco/Peoples Gas, Florida City Gas and Florida Public Utilities. 4.1. Rate Recommendations 4.1.1. PGA The PGA is reviewed monthly and adjusted periodically based on actual and projected gas and propane supply costs, all other applicable expenses, and projected demand. As such, Raftelis does not recommend a specific PGA rate as part of this study. However, we do recommend the following modification to the calculation methodology: all dividend costs currently recovered in the PGA should be allocated for recovery in the commodity charge. The decrease to the actual PGA rate should be $0.057 per therm, which is equivalent to the increase embedded in base rates as described below. 4.1.2. RIDERS As discussed in Section 2.2.1, CGS has several rate riders that recover specific costs or are designed to mitigate financial and operational risk. Energy Conservation Adjustment The ECA is applicable to all firm natural gas and propane customers but not assessed to non-standard and contract customers. Raftelis recommends that all dividend costs currently recovered through the ECA be allocated for recovery in the commodity charge. The decrease in the ECA rate should be $0.008 per them. Since the ECA is reviewed by CGS staff on a monthly basis, Raftelis recommends the City adopt the new methodology and then calculate the resulting rate based on actual costs consistent with current practices. Usage and Inflation Adjustment Per City ordinances, the UIA should reset to $0.00 in the beginning of FY 2024. UIA cost recovery of $0.049 per therm should be shifted to base rates. It should be noted it is recommended the shift in cost recovery of the UIA to base rates is shared equally between residential and commercial customers. This will result in a slight increase in cost recovery from residential customers and a slight decrease in cost recovery from commercial customers. Directionally, this change aligns with the cost of service analysis which suggests costs should be shifted from commercial to residential over time. As noted previously, the financial forecast is based on an August 2023 CPI of 298.9754 and an assumed increase of around 3.0% annually. Normalized usage per account for firm natural gas single-family residential customers and commercial customers is 195 therms and 5,501 therms, respectively. To the extent that inflation or usage differs from these amounts, the City should adjust the UIA rate, as needed, to account for changes in inflation or customer usage. As noted above, the financial forecast assumes an inflationary increase in costs during FY 2024, so it would be expected that the UIA would be used to recover these costs during the test year. 4 Consumer Price Index for all items in South urban, all urban customers, not seasonally adjusted. 26 CITY OF CLEARWATER Regulatory Imposition Adjustment The RIA is applicable to all firm natural gas and propane customers but not assessed to non-standard and contract customers. Going forward, Raftelis recommends that all dividend costs currently recovered through the RIA be allocated for recovery in the commodity charge. The decrease in the RIA should be $0.006 per therm. Raftelis recommends the City adopt the new methodology and then calculate the resulting rate based on actual costs consistent with current practices. 4.1.3. MARKET BASED RATES We are not proposing any changes to the propane or contract rates at this time. CGS should continue to set the market based rates as needed to remain competitive with neighboring utilities and other sources of energy. 4.1.4. BASE RATES The base rates are intended to recover CGS’s cost of distributing natural gas to customers after the PGA and rider specific costs have been excluded. As indicated in Section 2, the PGA and the riders recover both their direct costs as well as other operating costs including a portion of the dividend to the City. In this study, Raftelis recommends shifting dividend costs out of the PGA and riders and into the base rates, specifically the commodity charge. We believe these costs are more appropriately recovered in the base rates because they relate to providing service to CGS customers more generally, rather than being specifically related to either the purchase of natural gas or the activities covered by the riders. This shift in costs would improve the alignment between the intent of the PGA and riders and the costs which are recovered by them. The result of the shift in costs described above is an increase to the commodity charge for residential customers from $0.44 per therm to $0.56 per therm. Non-residential customers would also see an increase in their commodity charge of $0.12 per therm as shown in Table 17 below. These increases to the commodity charges are to be accompanied by a reduction in the PGA and riders. Table 17 presents the existing and proposed base rates. NATURAL GAS RATE STUDY REPORT 27 Table 17 – Existing and Proposed Base Rates Note: The Central Pasco Surcharge will be maintained Pinellas & West Pasco Central Pasco Pinellas & West Pasco Central Pasco Residential Service (RS) Customer Charge Month 16.00$ 24.00$ 16.00$ 24.00$ Commodity Charge(1)Therm 0.44$ 0.44$ 0.56$ 0.56$ Small Multi-Family Residential Service (SMF) Customer Charge Month 25.00$ 40.00$ 25.00$ 40.00$ Commodity Charge(1)Therm 0.44$ 0.44$ 0.56$ 0.56$ Medium Multi-Family Residential Service (MMF) Customer Charge Month 40.00$ 70.00$ 40.00$ 70.00$ Commodity Charge(1)Therm 0.44$ 0.44$ 0.56$ 0.56$ Large Multi-Family Residential Service (LMF) Customer Charge Month 95.00$ 160.00$ 95.00$ 160.00$ Commodity Charge(1)Therm 0.44$ 0.44$ 0.56$ 0.56$ Small General Service (SGS) Customer Charge Month 25.00$ 40.00$ 25.00$ 40.00$ Commodity Charge(1)Therm 0.38$ 0.38$ 0.50$ 0.50$ Medium General Service (MGS) Customer Charge Month 40.00$ 70.00$ 40.00$ 70.00$ Commodity Charge(1)Therm 0.34$ 0.34$ 0.46$ 0.46$ Large General Service (LGS) Customer Charge Month 95.00$ 160.00$ 95.00$ 160.00$ Commodity Charge(1)Therm 0.30$ 0.30$ 0.42$ 0.42$ Interruptible Service (IS) Customer Charge Month 250.00$ 400.00$ 250.00$ 400.00$ Commodity Charge(1)Therm 0.24$ 0.24$ 0.28$ 0.28$ (1) Increase to be accompanied by a reduction in the PGA, ECA, RIA and UIA Existing Proposed PerCustomer Class 28 CITY OF CLEARWATER 4.1.5. RATE COMPARISON TO NEIGHBORING UTILITIES As previously mentioned, it is important to compare the City’s natural gas rates to neighboring utilities to assess overall competitiveness. The following table compares the City’s existing and proposed rates to a regional proxy group including Peoples Gas, Florida City Gas and Florida Public Utilities. Table 18 – Rate Comparison to Neighboring Utilities 4.2. Bill Impacts The changes to the rate structure discussed above are anticipated to have a small impact on customer bills. The proposed increases to the commodity charges are to be accompanied by a decrease in the PGA and rate riders. Table 19 demonstrates the impact on monthly bills for the CGS’ various customer classes. Note that all customers will see a decrease based on an anticipated reduction in the PGA related to reduced gas commodity prices. This change is independent of the recommendations above but is included to show a complete picture of how average customer bills will change. The decrease for commercial is greater than for residential due to the directional shift between commercial and residential customers described above. Existing Proposed % Change Existing Proposed % Change Single Family Customer(1)16.00$ 16.00$ 0%18.10$ 25.50$ 41%26.50$ 19.00$ Commodity(2)0.44$ 0.56$ 27%0.27$ 0.37$ 36%0.62$ 0.57$ Small Commercial Customer(1)25.00$ 25.00$ 0%45.00$ 69.00$ 53%70.00$ 31.00$ Commodity(2)0.38$ 0.50$ 32%0.31$ 0.49$ 55%0.63$ 0.58$ Medium Commercial Customer(1)40.00$ 40.00$ 0%82.00$ 129.00$ 57%150.00$ 44.00$ Commodity(2)0.34$ 0.46$ 35%0.27$ 0.42$ 56%0.56$ 0.49$ Large Commercial Customer(1)95.00$ 95.00$ 0%420.00$ 525.00$ 25%275.00$ 188.00$ Commodity(2)0.30$ 0.42$ 40%0.22$ 0.36$ 63%0.53$ 0.44$ (1) Central Pasco Surcharge to be maintained (2) Increase to be accompanied by a reduction in the PGA, ECA, RIA and UIA (3) Rates are for RS-2, GS-1, GS-2 and GS-3. Proposed rates effective 1/1/2024 (4) Rates are for RES-3, GS-2. GS-3, GS-4 effective 3/1/2023 (5) Rates are for RS-100, GS-1, GS-6K, GS-25k effective 5/1/2023 Customer Class Clearwater (Pinellas and West Pasco)Peoples Gas(3) Florida Public Utilities(4) Florida City Gas(5) NATURAL GAS RATE STUDY REPORT 29 Table 19 – Monthly Bill Impact Another important factor for CGS is remaining competitive against electric utilities. In Table 20 below, there is a comparison of the recommended CGS rate and the current Duke Energy rate, demonstrating the cost savings offered by natural gas. Table 20 – Annual Cost Comparison CGS Gas Service vs. Electric Service Customer Class Existing Bill (1)Proposed Bill (2)$ Change % Change Residential Service (RS) - Summer 29.00$ 28.79$ (0.21)$ -1% Residential Service (RS) - Winter 55.00$ 54.36$ (0.64)$ -1% Small Multi-Family Residential Service (SMF)90.00$ 88.93$ (1.07)$ -1% Medium Multi-Family Residential Service (MMF)3,420.00$ 3,364.35$ (55.65)$ -2% Large Multi-Family Residential Service (LMF)420.00$ 414.65$ (5.35)$ -1% Small General Service (SGS)478.82$ 451.51$ (27.31)$ -6% Medium General Service (MGS)3,181.59$ 2,986.49$ (195.09)$ -6% Large General Service (LGS)13,477.98$ 12,619.57$ (858.40)$ -6% (1) Based on current PGA of $0.69 (2) Based on reduction PGA, ECA and RIA to reflect dividend shift and reduction in PGA based on projected gas cost Description CGS(1)Duke Energy Total Rate per Unit 1.28$ 0.15$ Estimated Energy Use Therms kWh Heating(2)150 2,250 Hot Water 170 5,000 Cooking 45 2,000 -$ -$ Total 365 9,250 Annual Cost Heating 191.79$ 348.55$ Hot Water 217.36 774.55 Cooking 57.54 309.82 -$ -$ Total 466.69$ 1,432.92$ Savings vs. Electric $ Savings % Savings Heating (156.76)$ -45.0% Hot Water (557.19) -71.9% Cooking (252.28) -81.4%-$ -$ Total (966.23)$ -67.4% (1) Total cost per therm including base rates, PGA and riders (2) Duke rates effective 4/1/2023 (2) Electric Assumes 200 percent efficient air to air heat pump and gas assumes 90 percent efficient furnace 30 CITY OF CLEARWATER Rate Design – Key Findings and Recommendations » Key Findings – 1. Current PGA, ECA and RIA calculation includes a portion of dividend costs. 2. Residential base rate adjustments could be made while maintaining competitiveness with peer utilities and electric service. » Recommendations – 1. Consider reducing PGA/rate riders and increasing commodity charges to more closely align PGA/riders rate with PGA/riders costs. 2. Reset UIA to $0.00 in the beginning of FY 2024. 3. Exclude dividend costs from the calculation of PGA and riders. Recover these costs in base rates through the commodity charge. 4. Increase residential commodity charge from $0.44 to $0.56. 5. Increase non-residential commodity rates by $0.12 per therm. 6. Equivalent reduction in the PGA/rate riders. 7. Maintain Central Pasco Surcharges NATURAL GAS RATE STUDY REPORT 31 APPENDIX A: Proposed Rate Ordinance 1 Clearwater Gas System Comprehensive Natural Gas Utility Rate Study 1.Introduction 2.Rate Study Process 3.Financial Plan 4.Rate Recommendations 2 Agenda 3 Rate Study Process 1 Financial Plan Key Outcome – revenues that sustainably fund the ongoing provision of safe and reliable natural gas service and provide a rate of return to the City which is reasonable/competitive with peer utilities. 2 Cost of Service Analysis Key Outcome – revenue recovery from each customer class that reflects that class’s use of the gas system. 3 Rate Design Key Outcome – rates which reasonably align with class cost of service and meet the objectives of the City of Clearwater. Financial Plan Overview 1.Forecast Baseline Revenue 2.Forecast Operating and Capital Expenditures 3.Develop Cash Flow Forecast & Assess Revenue Sufficiency •Considerations ›Financial Plans driven by maintaining appropriate liquidity ›Capital costs have increased substantially since prior study ›Debt issuance assumed in 2025 to help cash flow 4 Financial Plan – Key Assumptions Forecast Baseline Revenue 1.Accounts: +1,400/yr 2.Usage 1.5-year avg. 2.2% usage growth/year 3.Pass Through Revenue a.PGA b.Taxes 5 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028Millions Existing Revenues Financial Plan Forecast Operating Expenses 1.97% realization factor 2.Inflation: 1.Rate has come down 2.Most costs have not come down 3.~3% blended rate 3.Pass-Through Expenses a.PGA b.Taxes 6 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028Millions PGA Expenses All Other Operating Expenses Existing Revenues Financial Plan Forecast Capital Expenses 1.Large upfront capital needs 2.Existing debt retired in 2027 3.Debt issuance assumed in 2025 4.Cash used for remaining needs 7 $- $5 $10 $15 $20 2024 2025 2026 2027 2028MillionsCapital Financing Sources Cash Debt $- $0.5 $1.0 $1.5 $2.0 $2.5 2024 2025 2026 2027 2028MillionsDebt Profile Existing New Financial Plan Forecast Capital Expenses 8 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028Millions PGA Expenses All Other Operating Expenses Debt Service PAYGO Capital Existing Revenues 1.Large upfront capital needs 2.Existing debt retired in 2027 3.Debt issuance assumed in 2025 4.Cash used for remaining needs Financial Plan – Key Assumptions Revenue Sufficiency 9 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028MillionsCash Flow Forecast PGA Expenses All Other Operating Expenses Debt Service PAYGO Capital Existing Revenues Proposed Revenues 0 50 100 150 200 250 300 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Days (Incl/PGA)147 131 131 129 126 Days (Excl/PGA)282 247 246 242 239 Target 180 180 180 180 180 Balance ($ millions)$19 $17 $18 $18 $18DaysReserve Balance Financial Plan Key Findings and Recommendations 1.Key Findings a.Projected expenses exceed projected revenues, due primarily to capital expenditures, inflation b.Liquidity position is strong, mitigating immediate need for additional revenue 2.Recommendation: Plan for projected increases in base rates in 2026 and 2028 to cover utility expenses and meet financial performance metrics. 10 Rate Recommendations Process, Findings and Recommendations 1.Process – Allocate costs to customer classes based on: a.Commodity (Average Usage) b.Capacity (Peak Day Usage) c.Customer (Readiness to Serve) 2.Findings a.Dividend currently recovered in PGA and Riders (ECA and RIA) b.Residential customers are paying less than cost of service. c.Non-Residential customers are paying more than cost of service. 3.Recommendations a.Shift dividend recovery from PGA and riders to base rates b.Reset UIA based on an average increase for residential and commercial 11 Rate Recommendations 12 [1] Based on current PGA of $0.69 [2] Based on reduction in PGA, ECA and RIA to reflect dividend shift and reduction in PGA based on projected cost of gas. Customer Class Existing Bill [1] Proposed Bill [2]$ Change % Change Residential Service (RS) - Summer $ 29.00 $ 28.79 $ (0.21)-1% Residential Service (RS) - Winter $ 55.00 $ 54.36 $ (0.64)-1% Small Multi-Family Residential Service (SMF)$ 90.00 $ 88.93 $ (1.07)-1% Medium Multi-Family Residential Service (MMF)$ 3,420.00 $ 3,364.35 $ (55.65)-2% Large Multi-Family Residential Service (LMF)$ 420.00 $ 414.65 $ (5.35)-1% Small General Service (SGS)$ 478.82 $ 451.51 $ (27.31)-6% Medium General Service (MGS)$ 3,181.59 $ 2,986.49 $ (195.09)-6% Large General Service (LGS)$ 13,477.98 $ 12,619.57 $ (858.40)-6% [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 1 ORDINANCE NO. 9433-21-C9739-23 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, RELATING TO UTILITIES; AMENDING THE CODE OF ORDINANCES, CHAPTER 32, UTILITIES, ARTICLE VIII, GAS, PROVIDING FOR THE USE OF SUBCONTRACTORS IN THE FULFILLMENT OF GAS SERVICES, AMENDING THE CODE OF ORDINANCES, APPENDIX A, SCHEDULE OF FEES, RATES AND CHARGES, SECTION XXVI, CLEARWATER GAS SYSTEM FEES, RATES AND CHARGES, TO REVISE RATES FOR CLEARWATER GAS SYSTEM CUSTOMERS IN ACCORDANCE WITH THE 2020 2023 CLEARWATER COST OF SERVICE AND RATE STUDY; PROVIDING AN EFFECTIVE DATE. WHEREAS, Clearwater Gas System wishes to revise the code of ordinances to provide for certain operational updates; and WHEREAS, the current gas rates and service charges of the Clearwater Gas System have been effective since November March 1, 201421; and WHEREAS, it is determined to be fair and reasonable to adopt the recommendations of the Clearwater Gas System to establish gas rates and service charges based on the cost to serve the various classes of customers; now therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. That Chapter 32, Article VIII of the Code of Ordinances of the City of Clearwater is hereby amended as follows: Article VIII. GAS [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 2 Sec. 32.330. Unified system. All municipal utility properties of the city supplying gas service in and to the city and citizens and inhabitants and users thereof shall be controlled, operated and maintained as provided in section 32.001. See appendix A to this Code, for gas system deposits, fees, service charges and rate schedules. Sec. 32.331. Gas code. The installation of gas pipes, fixtures, appliances and other equipment and appurtenances shall be installed in accordance with the gas code of the city, as adopted in section 47.051, Development Code of the City of Clearwater. The installation of the customer’s gas piping system, fixtures, appliances, and other equipment and appurtenances shall be installed in accordance with the latest edition of the Florida Building Code/ICC “Fuel Gas” and the latest edition of NFPA 58 LP Gas Code, or subsequent adopted replacement codes. Sec. 32.332. Application for service. An application for gas service shall be filed with the City of Clearwater, d/b/a Clearwater Gas System (CGS). If a building permit is required, a separate application for a building permit shall be filed with the building division. The applicant shall pay gas system deposits, fees or connection charges at the time the application is filed with CGS. Sec. 32.333. Permit. See city gas code, as adopted by section 47.051, Development Code of the City of Clearwater, for provisions regarding gas permits pursuant to this article. All installation work of the consumer’s piping system and appurtenances shall require applicable permits and successful inspections by the applicable jurisdictional authority. Sec. 32.334. Tapping and connection. Tapping of all gas mains and service connections shall be done by CGS or an authorized contractor for the city. Title to all service connections from the main to the meters and meter installations is vested in the city, and the same shall at all times be the sole property of the city and shall not be trespassed upon or interfered with in any respect. Such city property shall be maintained by CGS and may be removed or changed by it at any time. Only licensed gas or plumbing contractors shall make the final connection between CGS gas meter or LP (propane) gas service lines and the customer’s gas piping and only after proper permits have been issued by the appropriate jurisdictional authorities and have attained a successful final gas inspection. Only CGS employees and contractually approved subcontractors of CGS are permitted to turn on gas and initiate service. Sec. 32.335. Maintenance of meters and service lines. [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 3 CGS shall have the right to meter any and all gas service lines. CGS alone shall have the right to stipulate the size, type, make and location of meters, type of meter setting, and the gas delivery pressure. All meters shall be maintained by the City. The customer shall be held responsible for damage to a meter or service line when such damage results from the negligence of the customer. When such damage occurs, the city will furnish and set another meter and repair the damaged meter or make other necessary repairs, and the cost of such repairs, including replacement parts, labor and transportation charges, shall be paid by the customer. Sec. 32.336. Meters and LP Tank Locations and delivery pressure. Gas service will be delivered to the customer for each premise at one (1) point of service. The location of the meter or tank will be designated by the applicable gas system representative and will typically be within ten (10) feet of the nearest corner of the premise to the gas main and in a location that is expected to be maintained by the customer as accessible, i.e., not expected to be enclosed by fencing or hedges. Locations that have multiple gas meters shall have them installed in the same point of service area as described above. Each gas meter and service regulator and propane LP tank shall be installed in a location readily accessible for reading, inspection, repairs, testing and changing of the meter/tank and operation of the gas shutoff valve, and shall be protected from corrosion and other damage. The customer is responsible for maintaining bushes, vegetation, sprinklers, etc. clear from the meter/tank to allow access and good operational performance. Sprinklers and their flow must be maintained clear of the meter/tank to avoid premature corrosion. Upon discovery of a deficiency and notification to the customer, remedial actions must be made including potentially requiring the relocation of the gas facilities to ensure life safety and to maintain required clearances. If this work is done by CGS personnel, then normal Time and Material charges will apply. The standard delivery pressure of natural gas at the point of delivery to the consumer (the meter) is established at the option of CGS at either 2 pounds per square inch (PSI) or seven (7) inches water column (approximately ¼ PSI) and for propane (LP) from the tank is established at the option of CGS at either eleven (11) inches water column (approximately 3/8 PSI) or 2 PSI. An optional delivery pressure above the standard may be requested by the customer or the customer’s contractor in advance and may be approved at the sole discretion of CGS. There are advantages to each pressure and not all may be operationally available at any given location. Sec. 32.337. Status of gas quantity recorded. The quantity of gas recorded by the meter shall be conclusive, except when the meter is found to be registering inaccurately or has ceased to register. [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 4 In such cases, the quantity may be determined by the average registration of the meter in a corresponding past period or by the average registration of the new meter, whichever method is, in the opinion of the city, representative of the conditions existing during the period in question. Sec. 32.338. Testing. CGS reserves the right to remove or test any meter at any time and to substitute another meter in its place. In case of a disputed account involving the question of accuracy of the meter, the meter will be tested by the city upon written request of the customer. The customer agrees to accept the results of the test made by the city. If the meter tested is found to have an error in registration in excess of three two percent (2%) as based on the arithmetical average of one-fourth load and full load of the meter, there will be no charge for the testing; but should the test show error in registration less than three percent there shall be a charge for testing the meter. The billing for the testing will be charged to the customer's account. Sec. 32.339. Tampering. No person other than an agent of the city shall remove, inspect or alter any part of the gas piping system leading up to and including the gas meter. The customer shall notify the city of any damage to or any failure of the meter or service line. Sec. 32.340. Authority to turn on gas. (1) Generally. It shall be unlawful for any person other than a CGS employee or a specifically designated and approved agent of the City to turn on, or in any way alter or damage, any gas meter which has been turned off by the City. The customer serviced by the meter shall be held responsible for any actions. (2) Unauthorized connections. A fee shall be charged for the removal of any device which has been installed in lieu of or in addition to a gas meter, except where the pipe or device has been authorized in writing by the City. (3) Open meter bypass servicing. A fee, over and above the bill established from the meter reading, shall be charged for the service of turning off the meter bypass valve, when such opening was not previously authorized in writing by the City. (4) Broken stop locks. A replacement fee shall be charged for the replacement of meter stop locks which have been broken or removed. Sec. 32.341. Responsibility for gas in service lines. [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 5 The City is responsible for the gas contained within the service lines. The term "service line" means a distribution line that transports gas from a common source of supply to a customer meter outlet or the outlet of the second stage LP gas regulator connection to a customer's house piping, or the connection to a customer's piping if there is no customer meter. A customer meter is the meter that measures the transfer of gas from CGS, the gas supplier, to a consumer. The customer is responsible for all maintenance, line locating, and repair of their customer-owned piping system, which is beyond the gas meter outlet or beyond the outlet of the second stage LP gas regulator. Sec. 32.342. Optional Services provided by Clearwater Gas System beyond the meter/LP tank. The provision of propane (LP) gas service, gas service and repair services, gas installation services, and gas appliance/equipment sales are all competitive services rendered in the market place by other providers. CGS retains the sole right to elect where and when to provide these optional services at the sole discretion of the CGS Executive Director. At any time, CGS may elect to discontinue providing these optional services and may instruct the customer to acquire same from another market vendor of these services. Section 2. That Appendix A – Schedule of Fees, Rates and Charges of the Code of Ordinances of the City of Clearwater is hereby amended as follows: XXVI. CLEARWATER GAS SYSTEM FEES, RATES AND CHARGES: Rate schedules, fees and charges (§ 32.068): (1) Natural gas service rates. The following monthly rates shall apply to all customers who are provided the availability of natural gas service by the Clearwater Gas System (CGS), based on their applicable class of service: (a) Residential natural gas service (rate RS): Firm natural gas service for domestic uses in all residences of three units or fewer. Monthly customer charge . . . . . . . . . . . . $1416.00* Non-fuel energy charge, per therm . . . . $0.44$0.56 [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 6 Minimum monthly bill . . . . . . . . . . . . . . . $1416.00* *Note: Monthly customer charge and Minimum monthly bill amount will increase to $16 per month, effective 3/1/22 (b) Small multi-family residential service (rate SMF): Firm natural gas service for all domestic applications within the living units of multi-family buildings of four units or more and the total annual consumption at the premise is 0 - 17,999 therms. Monthly customer charge . . . . . . . . . . . . $25.00 Non-fuel energy charge, per therm . . . . $0.5644 Minimum monthly bill . . . . . . . . . . . . . . . $25.00 (c) Medium multi-family residential service (rate MMF): Firm natural gas service for all domestic applications within the living units of multi-family buildings of four units or more and the total annual consumption at the premise is 18,000 - 99,999 therms. Monthly customer charge . . . . . . . . . . . . $40.00 Non-fuel energy charge, per therm . . . . $0.5644 Minimum monthly bill . . . . . . . . . . . . . . . $40.00 (d) Large multi-family residential service (rate LMF): Firm natural gas service for all domestic applications within the living units of multi-family buildings of four or more and the total annual consumption at the premise is 100,000 therms or more. Monthly customer charge . . . . . . . . . . . . $95.00 Non-fuel energy charge, per therm . . . . $0.5644 Minimum monthly bill . . . . . . . . . . . . . . . $95.00 (e) Small natural gas general service (rate SGS): Firm natural gas service for all commercial, industrial, and other applications where no other rate is applicable and the customer's annual consumption at the premise is 0 - 17,999 therms. Monthly customer charge . . . . . . . . . . . . $25.00 Non-fuel energy charge, per therm . . . . $0.5038 [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 7 Minimum monthly bill . . . . . . . . . . . . . . . $25.00 (f) Medium natural gas general service (rate MGS): Firm natural gas service for all commercial, industrial, and other applications where no other rate is applicable and the customer's annual consumption at the premise is 18,000 - 99,999 therms. Monthly customer charge . . . . . . . . . . . . $40.00 Non-fuel energy charge, per therm . . . . .$0.4634 Minimum monthly bill . . . . . . . . . . . . . . . $40.00 (g) Large natural gas general service (rate LGS): Firm natural gas service for all commercial, industrial, and other applications where no other rate is applicable and the customer's annual consumption at the premise is 100,000 therms or more. Monthly customer charge . . . . . . . . . . . . $95.00 Non-fuel energy charge, per therm . . . . $0.4230 Minimum monthly bill . . . . . . . . . . . . . . . $95.00 (h) Interruptible natural gas service (rate IS): Interruptible natural gas service available under a standard agreement for typically commercial and industrial applications where the customer's annual consumption at the premise is 100,000 therms or more; the customer agrees contractually to purchase a minimum of 250 therms/day (excluding curtailment days); and where the customer has either installed alternative fuel capability and/or contractually agrees to curtail service at the request of the CGS, subject to penalties for failure to comply. Monthly customer charge . . . . . . . . . . . . $250.00 Non-fuel energy charge, per therm . . . . $0.284 Minimum monthly bill . . . . . . . . . . . . . . . $250.00 [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 8 Plus the non-fuel therm rate for the minimum number of contract therms per day Note: All customers being served under Contract Rates as of February 28January 31, 20214, will be allowed to remain on their existing contracts until their next expiration date, at which time that contract will automatically be discontinued, and the customer will be moved to the applicable standard rate unless a new contract is executed. (i) Contract natural gas service (rate CNS): Contract natural gas service for special applications and conditions approved by the City Manager or designee. This rate is typically applicable where competitive fuel sources are confirmed to be available to the customer and special rates with special conditions are required to obtain/retain the customer. This rate may be used to construct a special standby rate where the customer requires capability to serve, but normally uses an alternative energy source. Such service must fall within the normal construction feasibility formula to insure a profitable payback to the City. Contract customers are charged for a contracted Purchased Gas Adjustment (PGA) charge but no other gas rider charges. Monthly customer charge.... The same as the normally applicable service class Non-fuel energy charge.... Per therm as established by contract Minimum monthly bill.... Monthly customer charge plus the non-fuel therm rate for a contract level of monthly consumption Note: All customers being served under Contract Rates as of February 28January 31, 20214, will be allowed to remain on their existing contracts until their next expiration date, at which time that contract will automatically be discontinued, and the customer will be moved to the applicable standard rate unless a new contract is executed. (j) Residential natural gas air conditioning/emerging technology service (rate RAC): [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 9 RESERVED FOR FUTURE USE (k) General natural gas air conditioning/emerging technology service (rate GAC): RESERVED FOR FUTURE USE (l) Large natural gas air conditioning/emerging technology service (rate LAC): RESERVED FOR FUTURE USE (m) Natural gas street lighting service (rate SL): Natural gas service for lighting of public areas located in the right of way or private property, to include service for all types of decorative lighting to enhance ambient conditions. Service may be either metered or contracted with an estimated annual usage when metering is not operationally feasible. The customer may elect to either: • subscribe for normal street lighting maintenance and relighting labor service, or • call CGS for repair service and pay normal hourly labor charges (see other miscellaneous gas charges), or • maintain their own lights. Repair equipment and/or parts supplied by CGS will be billed as required. When the gas system provides poles, fixtures, piping, and/or installation labor beyond the service connection point, facilities contract charges may be assessed including any right-of-way permitting and utilization charges. The standard PGA will be utilized, but no other gas rider charges will apply unless contracted for. Monthly customer charge . . . . . . . . . . . . $20.00 * Non-fuel energy charge, per therm . . . . .$0.260 Normal maintenance and relighting labor service charge, per therm . . . . $0.15 additional Plus any required equipment/parts Minimum monthly bill . . . . . . . . . . . . . . . $20.00 * * Monthly customer charge not applicable if another customer charge is being billed at the same premise. [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 10 Plus any applicable facilities contract charges (n) Contract natural gas transportation service (rate CTS): Service for transportation of someone else's natural gas through CGS for supply to another gas system or an individual customer. This is a contract natural gas service and must be approved by the City Manager or designee. Provision of this service must fall within the normal construction feasibility formula to insure a profitable payback to the City. Contract PGA will be utilized, but no otherNo gas rider charges will apply for this rate class unless contracted for or listed below. Monthly customer charge.... As established by contract (typically the same as the normally applicable service class) Non-fuel energy charge.... Per therm as established by contract (typically the same as the normally applicable service rate plus charges for balancing services and any additional services desired by the customer) Minimum monthly bill.... Monthly customer charge plus the non-fuel therm rate for a contracted level of minimum monthly flow as well as any facilities contract charges for special facilities and metering required to provide this transportation service (o) Natural gas vehicle service (rate NGV): Natural gas service for fleet vehicle fueling and for Compressed Natural Gas (CNG) Fueling Stations operated by CGS. This is a contract rate approved by the City Manager or designee. Provision of this service must fall within the normal construction feasibility formula to insure a profitable payback to the City. NGV fleet services will be separately metered and must service exclusively fleet fueling facilities. CNG Fueling Station rates will be metered through dispensing apparatus and billed at rates similarly approved by the City Manager or designee, except that contracts, under section (i) Contract Natural Gas Service [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 11 Rate (CNS), may be established for certain customer fleets based on volumes. Note: This rate is not applicable for residential or small general service rate applications (fewer than 18,000 therms of annual use for the customer’s fleet vehicles). Such non-fleet applications will be billed under the customer’s normal rate applicable to the premise, but a separate meter may be requested by the customer to allow measurement for federal or state excise tax credit purposes. Where an additional meter is requested, CGS may charge for its initial installation and any future additional maintenance required but will not add an additional monthly customer charge to the premise. Note: The total energy charges for this service including all adjustments, facilities charges, taxes, etc. may be expressed as a rate "per gallon equivalent of gasoline or diesel." Contract PGA will be utilized but no other gas rider charges will apply unless contracted for. (p) Natural gas emergency generator or other standby service (rate NSS): Natural gas service to a metered account, separately established for back-up service, where no substantial gas service is used for year round purposes. Note: This rate is not applicable for Residential single-family applications. Such residential emergency generator applications are handled under the RS rate application. Monthly customer charge . . . . . . . . . . . . $50.00 Non-fuel energy charge, per therm . . . . .$0.4438 Minimum monthly bill . . . . . . . . . . . . . . . $50.00 Plus any facilities contract charges for the facilities and metering required to serve this account (2) Propane (LP) gas service rates. The following rates shall apply to all customers who are provided the availability of propane (LP) gas service by CGS, based on their applicable class of service. Clearwater Gas requires all residential customer accounts have year-round, whole house water heating as a minimum criteria for qualifying for service. [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 12 (a) Residential Bulk Propane Gas Service (Rate BRLP): Bulk delivered LP service for “year round” domestic uses (such as water heating, cooking, heating, clothes drying, and lighting) in all residences of three (3) units or fewer. Usage Class Annual Units/Gallons Non-fuel Energy Charge per Gallon Non-refundable Annual Customer Charge* 0 No Fills in Past 12 Months $1.80 $375395.00 1 0.1--- 60 $1.80 $250270.00 2 60.1---120 $1.60 $205225.00 3 120.1---300 $1.00 $115135.00 4 >300 $0.90 $100120.00 *Note: The Non-refundable Annual Customer Charge will increase by $20 per year, effective 3/1/22, for all Usage Classes. (b) Residential "Will Call" Propane Gas Service (Rate WRLP: Bulk delivered LP Service for all customers with exclusively “leisure living” domestic uses (such as pool/spa heating, fireplaces, and grills) plus customers with “year-round” appliances who request “will call” status in all residences of three (3) units or fewer. A “Will Call” customer is responsible for monitoring tank fuel level, assessing when they will need a fill, and requesting propane delivery. No trip charge for delivery if customer can wait for a normally scheduled four (4)-business day delivery. Trip charges for early delivery are located in (3)(h). Note that the four (4) business days start on the next business day after the customer’s request, i.e. if the customer calls with a “Will Call” fill request on Monday, then we will fill no later than the following Friday. [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 13 Usage Class Annual Units/Gallons Non-fuel Energy Charge per Gallon Non-refundable Annual Customer Charge* 0 No Fills in Past 12 Months $1.80 $375395.00 1 0.1 – 60.0 $1.80 $235255.00 2 60.1 - 120 $1.60 $175195.00 3 120.1 - 300 $0.90 $100120.00 4 >300 $0.80 $85105.00 *Note: The Non-refundable Annual Customer Charge will increase by $20 per year, effective 3/1/22, for all Usage Classes. (c) Residential Loop System Propane Gas Service (Rate LRLP): Metered delivery LP service for all domestic uses within a loop delivery system (Propane Distribution system serving multiple customers.) Monthly Customer Charge . . . . . $1416.00* Non-Fuel Energy Charge Per gallon . . . . . . . . . . . . . $0.90 Minimum Monthly Bill . . . . . . . . . .$146.00* *Note: Monthly customer charge and Minimum monthly bill amount will increase to $16 per month, effective 3/1/22. (d) Commercial Propane Gas Service (Rate BCLP): Bulk delivered LP service for commercial, industrial, and other applications where no other rate is applicable. [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 14 Usage Class Annual Units/Gallons Non-fuel Energy Charge per Gallon Non- refundable Annual Customer Charge 1 0---2500 $0.25 $90.00 2 >2500 $0.20 $90.00 (e) Residential Metered Propane Gas Service (Rate MRLP): Metered delivered LP service for all domestic uses in all residences of three (3) units or fewer. Monthly customer charge . . . . . . $146.00* Non-fuel energy charge: Per gallon . . . . . . . . . . . . . $1.90 Minimum monthly bill . . . . . . . . . $1416.00* *Note: Monthly customer charge and Minimum monthly bill amount will increase to $16 per month, effective 3/1/22. (f) Multi-family Metered Propane Gas Service (Rate MMLP): Metered delivered LP service for all domestic applications within the living units of multi-family buildings of four (4) units or more. Monthly customer charge . . . . . . $25.00 Non-fuel energy charge: Per gallon . . . . . . . . . . . . . $1.90 Minimum monthly bill . . . . . . . . . . $25.00 (g) General Metered Propane Gas Service (Rate MGLP): Metered delivered LP service for all commercial, industrial, and other applications where no other rate is applicable and the annual consumption at the premise is 0---2,500 gallons. [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 15 Monthly customer charge . . . . . . $25.00 Non-fuel energy charge: Per gallon . . . . . . . . . . . . . $0.30 Minimum monthly bill . . . . . . . . . . $25.00 (h) Large Metered Propane Gas Service (Rate MLLP): Metered delivered LP service for all commercial, industrial, and other applications where no other rate is applicable and the annual consumption at the premise is more than 2,500 gallons. Monthly customer charge . . . . . . $40.00 Non-fuel energy charge: Per gallon . . . . . . . . . . . . . $0.25 Minimum monthly bill . . . . . . . . . . $40.00 (i) Contract Propane Gas Service (Rate CLP): Contract metered, or bulk delivered LP gas service for special applications and conditions approved by the city manager or designee. This rate is typically applicable where competitive fuel sources are confirmed to be available to the customer and a special rate with special conditions is required to obtain/retain the customer. Such service must fall within the normal construction feasibility formula to insure a profitable payback to the city. Monthly customer charge. The same as the normally applicable service class Non-fuel margin rate. Per gallon as established by contract Minimum monthly bill. Monthly customer charge plus the non-fuel usage rate for contracted level of monthly consumption. Note: All customers being served under Contract Rates as of February 28, 2021, will be allowed to remain on their existing contracts until their next expiration date, at which time that contract will automatically be discontinued, and the customer will be moved to the applicable standard rate unless a new contract is executed. [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 16 Contract PGA charges will be utilized, but no other gas rider charges will apply unless contracted for. (j) Propane (LP) Gas Vehicle Service (Rate LPV): Propane gas service for fleet vehicle fueling. This is a contract rate approved by the City Manager or designee. Provision of this service must fall within the normal construction feasibility formula to insure a profitable payback to the city. Note: This rate is not applicable for residential or small general service rate applications (fewer than 20,000 gallons of annual use for the customer’s fleet vehicles). LPV services will be on a separate account servicing exclusively fleet fueling facilities. Monthly customer charge. $40.00 for general service applications only if a customer charge is not already being billed on another metered account at the premise on a firm rate schedule. Non-fuel energy charge. Per gallon as established by contract, which includes any applicable customer-specific or public, fill station facilities charges required to provide this service. Minimum monthly bill. Monthly customer charge plus any applicable monthly facilities contract charges for special facilities, metering or fleet conversion costs required to provide this service. Standard PGA charges will be utilized but no other gas rider charges will apply unless contracted for. Note: The total energy charges for this service including all adjustments, facilities charges, taxes, etc., may be expressed as a rate "per gallon equivalent of gasoline." (k) Commercial Propane Metered Gas Emergency Generator or Other Standby Service (Rate LPSM): LP gas service to an account separately established for back-up service, where no other substantial gas service is used for year-round purposes. Monthly customer charge . . . . . . $50.00 Non-fuel energy charge: Per gallon . . . . . . . . . . . . . . $1.00 Minimum monthly bill . . . . . . . . . . $50.00 [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 17 Initial metered usage charge. A one-time charge for the number of gallons required to initially fill the LP tank (size as requested by the customer). (l) Commercial Propane Bulk-Delivered Gas Emergency Generator or Other Standby Service (Rate LPSB): LP gas service to an account separately established for back-up service, where no other substantial gas service is used for year-round purposes. Annual customer charge . . . . . . . $420.00 Non-fuel energy charge: Per gallon . . . . . . . . . . . . . . . $1.00 Initial delivery charge. A one-time charge for the number of gallons required to initially fill the LP tank (size as requested by the customer) plus the initial annual customer charge. Standard PGA charges will be utilized, but no other gas rider charges will apply unless contracted for. (m) Effect of Energy Conservation Measures on Usage Classes in (a) and (b) above: Should the customer install a more energy efficient appliance or appliances while a customer of CGS and this causes their usage to drop, such that their Usage Class would change thereby increasing the Annual Customer Charge and/or the Non-Fuel Energy Rate, then the estimated effect of the more efficient appliance on annual usage may be added to the actual annual usage to determine the customer’s applicable Usage Class. This is intended to ensure that the customer is not adversely impacted for such energy efficient installation. (3) Other gas charges. The following charges and fees may also be applied to customers of CGS served under an applicable natural gas or propane (LP) gas service rate: (a) Facilities contract charge (rider FCC): A rider applicable to any of the above rates to cover installation of facilities beyond those typically provided to other customers of the class or beyond the costs incorporated into the applicable gas rate. [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 18 On-going FCC charges.... A monthly flat or per unit consumed charge calculated to cover the on-going estimated maintenance costs associated with the special or additional facilities. These charges will be contractual and subject to annual revisions upward based on the CPI index or based on a revised cost calculation at the discretion of the City Manager or designee. Time-limited FCC charges.... A monthly flat or per unit consumed charge calculated to cover the costs associated with additional facilities as requested by the customer, excess main and service construction costs which do not meet the construction feasibility formula, or appliance/equipment sales costs. Such charges may include other applicable costs associated with furnishing the requested facilities, including financing costs. Where such FCC charges result from the additional costs incurred by CGS at the request of the developer to achieve feasibility, such FCC charges are binding upon the future customers/occupants of such applicable accounts for the period necessary to meet the feasibility calculation for the project. Public fill station facilities charge.... A natural gas per therm or propane (LP) per gallon charge calculated to recover the common facilities costs to provide such service. This will be calculated and may be updated from time-to-time by the gas system and approved by the City Manager or designee. (b) Purchased gas adjustment (rider PGA): A rider applicable to all natural gas therm rates and propane (LP) gallon rates to recover the cost of CGS’s purchased gas supply, including losses and use by gas system facilities/equipment and other [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 19 applicable expenses. The currently calculated PGA rates for all rate schedules, unless specifically broken out by contract, are: Natural gas firm standard rate schedule PGA, per therm. . . . $0.63 57 Natural gas interruptible and contract (non-standard) rate schedule PGA, per therm . . . $0.5348 Propane (LP) gas rate schedule PGA, Per gallon . . . $1.3965 The above PGA rates are based on the weighted average cost of gas (WACOG) as currently approved for March 1, 2021February 1, 2024. These PGA rates will normally be adjusted on a annually quarterly basis in October and may be adjusted upward or downward from time-to-time with the approval of the City Manager or designee based on actual and projected supply costs and projected consumption levels in order to recover the total cost of the gas system's supply plus all costs attributable to the acquisition of system supply gas and other applicable expenses. The over or under recovery of these PGA costs will be computed monthly and an adjustment in the PGA rate will be made at the discretion of the City Manager or designee. The differential between the Natural Gas firm standard rate schedules PGA and the Natural Gas Interruptible and contract (non-standard) rate schedules PGA will be established and approved by the City Manager or designee for each annual period based on the available records for the most recent 12 months. This differential will typically be computed by dividing the transmission pipeline "reservation charges" component of the WACOG by the therms sold to all of the natural gas firm rate schedules. The gas system may also segment specific gas purchases for specific targeted customer(s) based on contract. Additionally, a fixed monthly amount may be added to the customer charge of applicable classes of natural gas service rates to recover the estimated impact of the added costs associated with gas purchased through a third-party transporter (including generally east of the Suncoast Parkway in Pasco County). These added monthly customer charges shall be credited to the overall PGA recovery account and will be initially set at: Residential ……………………………………….. $ 8.00 per month Small General Service & Multi-Family ..………. $ 15.00 per month Medium General Service & Multi-Family … ….. $ 30.00 per month [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 20 Large General Service & Multi-Family ………... $ 65.00 per month Interruptible Service …………………………….. $150.00 per month Contract Rates --- Apply the same as the normal class of customer using the above schedules based on usage level Similarly, a differential between LP Gas standard rates and contract LP rates may be computed to exclude a portion of the other costs attributed to LP PGA other than physical gas. This differential will be calculated by the Gas System Executive Director annually based on historical costs and will be approved by the City Manager or designee. The gas system may also segment specific LP gas purchases for specific targeted customer(s) based on contract. These added monthly customer charges may be adjusted upward or downward from time-to-time with the approval of the City Manager or designee based on actual and projected added PGA costs. (c) Energy conservation adjustment (rider ECA): A rider applicable to all firm standard (non-contract) natural gas therm rates and non- contract propane (LP) gallon rates to recover the cost of energy conservation programs undertaken by CGS as approved by the Gas System Executive Director. The ECA will not be applied to interruptible natural gas or other non-standard contract rates. The currently calculated ECA rates are: Natural Gas Rate Schedule ECA, per therm . . . .$0.18 13 Propane (LP) Gas Rate Schedule ECA, per gallon . . . $0.18 13 The above ECA rates are as currently approved for March 1, 2021February 1, 2024. These ECA rates will normally be reviewed annually in October and may be adjusted upward or downward from time-to-time with the approval of the City Manager or designee based on actual and projected energy conservation program costs and projected consumption levels in order to recover the total cost of applicable gas system programs, including energy conservation incentive payments as well as the applicable labor and other costs attributable to such energy conservation programs and other applicable expenses. The over or under recovery of these ECA costs will be computed and an adjustment in the ECA rate will be made at the discretion of the City Manager or designee. (d) Regulatory imposition adjustment (rider RIA): A rider applicable to all firm standard (non-contract) natural gas therm rates and non- [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 21 contract propane (LP) gallon rates to recover the cost of environmental, operator qualification, distribution integrity, inspection, survey, and other regulatory imposed program requirements imposed on CGS by federal, state or local regulatory agencies. The RIA will not be applied to interruptible natural gas or other non-standard contract rates. The currently calculated RIA rates are: Natural Gas Rate Schedule RIA, per therm . . . . $0.0001 Propane (LP) gas rate schedule RIA, per gallon . . . . $0.0001 The above RIA rates are as currently approved for March 1, 2021February 1, 2024. Note that this RIA rider incorporates the former Environmental Imposition Adjustment (EIA), which covers the environmental project costs as well as the labor and other costs attributable to such environmental projects. This RIA also includes Other Regulatory Adjustment (ORA) charges, such as operator qualification, distribution integrity, required inspections, survey and other regulatory imposed program requirements and regulatory fees imposed on CGS by federal, state or local regulatory agencies. These RIA rates (EIA + ORA) will normally be reviewed annually in October and may be adjusted upward or downward from time to time to reflect the over or under recovery of these RIA costs at the discretion of the City Manager or designee. (e) Usage and Inflation adjustment (rider UIA): A rider applicable to all standard non-contract natural gas therm rates and standard non-contract propane (LP) gallon rates to recover loss of planned base non-fuel revenues to CGS due to changes in use per customer from the test year values as set in the 20230 Gas Rate Study (see below) as well as the change in inflation as measured by the Consumer Price Index for U. S. City average of all urban consumers (CPI-U). The currently calculated UIA rates are: Natural gas rate schedule UIA, per therm . . . . $0.007 for Residential $0.0013 for Commercial Propane (LP) gas rate schedule UIA, per gallon . . . . $0.07 00 for Residential $0.13 00 for Commercial [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 22 The above UIA rates are as currently approved for March 1, 2021February 1, 2024 and incorporate revenue shortfalls from Fiscal Year 2020 and 2021 prior to this Ordinance being approved. Future UIA adjustments will be based on the current rate ordinance. The UIA rates may be implemented at the sole discretion of the City Manager or designee based on variations from the most recent established Gas Rate Study values: CPI-U (South Region) as prepared by the U. S. Department of Labor, Bureau of Labor Statistics (basis is August 20230 Gas Rate Study projected index of 298.975249.639) Residential Use per customer based on 19585 annual therms/natural gas single-family customer. Note that this factor may be applied to all residential standard (non-contract) rate classes for natural gas as well as propane. Commercial Use per customer based on 5,501877 annual therms/natural gas standard and contract general service customers excluding Interruptible customers. Note that this factor may be applied to all general service standard (non-contract) rate classes for natural gas as well as propane. (f) Franchise and other city/county fees recovery clause (rate FFR): A charge levied by CGS on every purchase of gas within a municipality or county area to recover the costs assessed by governmental entities in accordance with the franchise agreement in force between the City of Clearwater and that other governmental entity and including any other otherwise unrecoverable fees, special taxes, payments in lieu of taxes, or other impositions by any governmental entity (including the City of Clearwater) on the services of CGS sold within such municipality or county area. The fees collected within each governmental jurisdiction shall be used exclusively to pay the franchise fees and other governmental fees, taxes, and other impositions levied on services within that governmental jurisdiction. Within the City of Clearwater where a franchise agreement is not in force, the City of Clearwater will levy a six percent (6.0%) payment in lieu of taxes on all gross firm natural gas sales (excluding interruptible) and CGS will bill this in the same manner as if it were a franchise fee. (g) Tax clause (TAX - Various): All taxes due the appropriate governmental entities (such as but not limited to State of Florida gross receipts tax, State of Florida sales tax, county sales tax, [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 23 municipal utility tax, and others which may be legally levied from time to time on the purchase of gas) will be billed to the customer receiving such service and rendered to the governmental entity in accordance with the applicable statute, ordinance, or other legally enforceable rule. (h) Other miscellaneous gas charges: The following charges are applicable whenever gas services are rendered to the customer: The miscellaneous rates listed in this section may be reviewed and adjusted from time-to-time by the Gas Executive Director, with the approval of the City Manager or designee. Additionally, the Gas Executive Director may approve “Contract Service Charge Rates” for customers who regularly use CGS’ Service & Repair and will contractually subscribe for such use. 1. Meter and/or Pilot light turn-on (Residential): Account for new customers, seasonal reconnects, and after nonpayment disconnect. Scheduled two (2) business days or beyond . . . $ 65.00 Scheduled next business day or beyond. . . . . . . . . . . . . . .$ 80.00 Scheduled same business day . . . . . . . . . . . . . .$140.00 2. Meter and/or Pilot light turn-on (Commercial/Industrial): Account for new customers, seasonal reconnects, and after nonpayment disconnect (up to 4 appliances). Scheduled two (2) business days or beyond . . . $135.00 Scheduled next business day or beyond . . . . . . . . . . . . . . .$175.00 Scheduled same business day . . . . . . . . . . . . . .$215.00 * Beyond 4 appliances, per each, add $20.00 3. Meter read for account change (no meter turn-on required). Scheduled two (2) business days or beyond . . . $ 50.00 Scheduled next business day or beyond . . . . . . . . . . . . . . .$ 6550.00 Scheduled same business day . . . . . . . . . . . . . .$140.00 4. Replace broken stop or locks on meters . . . Time and materials 5. Meter or LP Tank Connection or Re-connection to customer-owned piping system . . . Time and materials 6. Relocate gas meter . . . Time and materials [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 24 7. Install bumper posts or other necessary protection for meters, LP tanks, or other gas equipment …. Time and materials 8. Standard Time and Labor Rates: Service and Repair, Installation, Maintenance or other work performed by CGS personnel, plus any applicable material charges: 1-person crew . . . $125180.00 for Trip Charge and up tothe first 1 hour of labor, plus $2535.00 for each additional time on-site/quarter hour or portion thereof. Minimum charge is $50.00 for the trip if no labor is performed or if the customer does not show for an appointment. 2-person crew. . . $195250.00 for Trip Charge and up tothe first 1 hour of crew hour of labor, plus $4050.00 for each additional time on-site/quarter hour or portion thereof. Minimum charge is $80.00 for the trip if no labor is performed or if the customer does not show for an appointment. The above Time and Labor Rates are based on work within the CGS Natural Gas Service Territory. Where customers request work to be done outside of the normal CGS Service Territory . . . Added time will be assessed for the travel to and from the Territory border to the Customer’s Site. The time and trip charges associated with providing all quotes and developing plans will be added to the cost of the billed job. 9. Overtime surcharge for all work including installation, service and repair, and maintenance as requested by the customer for after operational hours, including weekends and holidays . . . Double normal applicable charges 10. Overtime surcharge for call-out turn-ons or lighting of pilots as requested by the customer for after operational hours, including weekends, and holidays . . . Double same day charge 11. Special meter reading at customer request, as scheduled by CGS, including billing inquiries where reading is determined to be accurate (per account) . . . . . . . . . . . . . . . . . . . $5065.00 12. Gas meter test at customer request, as scheduled by CGS, if results are within limits (per meter) . . . . . . . . . $150.00 [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 25 13. Reset residential gas meter after same customer requests removal (per meter), as scheduled by CGS . . . $150.00 14. Unauthorized tampering meter bypass or hookup . . . Time and materials plus ten percent (10%) of the average monthly bill for each day since last reading deemed to be accurate 15. Emergency response for non-CGS consumers or other utilities . . . Time and materials 16. Propane Fuel recovery and ownership of L.P. gas from tank . . . Time and materials. The LP fuel in the tank is non-refundable. If the customer provides an approved for service, listed LP gas container, then we will transfer as much LP gas as practical. Full abandonment and/or removal of buried LP tank is at CGS’ sole discretion. If the underground tank is removed, then any required landscaping or site restoration is the responsibility of the customer. If the tank is abandoned on-site, CGS will make it safe by removing the gas and filling it with water (water provided by the customer) and the tank ownership then becomes the customer. Tanks will be considered out of service and fuel abandoned by the customer if container is on site more than 12 months without a contract for service or paying entity for the annual customer charge. In such case, CGS will, at its sole discretion, either remove or abandon the tank. Other services not normally provided including work on customer property beyond the meter outlet or the outlet of the second stage LP regulator, such as for gas leak surveys, Cathodic protection corrosion control, customer-owned gas line locating; any related repairs to the customer facilities or master-metered gas distribution systems as required by regulation as well as any work required to correct deficiencies or any work required to move facilities. . . . Time and materials 17. Collector fee: See Appendix A - Public Works Utility Tariffs, Section (4)(a)3 18. Dishonored check service fee: See Code of Ordinances, Section 2.528 19. Missed appointment - Customer not present at time as arranged or equipment not accessible. Residential and Commercial . . . $50.00 [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 26 20. Residential “Will Call” and special request delivery Propane Gas Service trip charges for early delivery: $55.00 trip charge if the customer requesting scheduled delivery for 2 business day out and no more than 4 business days $75.00 trip charge for next business day (or beyond) delivery $150.00 trip charge for same business day delivery service requests during normal business hours $250.00 trip charge for all “call out” fills received after 3:30 pm on normal operational days, or on holidays, or on weekends. Trip charges will be applied even if LP tank is inaccessible or customer is not present when required (CGI). 21. A minimum fill charge of $100.00 for bulk, “Will Call” or metered delivery customers that request a delivery, in fewer than 4 business days. “Will Call” or special request delivery charges will also apply. 22. Leak investigation (make safe only) . . . No charge If turn-on of pilots the applicable charges apply Additional repairs . . . Time & Materials 23. Special seasonal gas turn-on.... The City Manager or designee is authorized to reduce or eliminate the normal gas turn-on charge to attempt to levelize the workload at the beginning of the heating season. 24. Pipeline Damage Claims Any person or company who actively engages in excavating, boring, tunneling, horizontal directional drilling, backfilling, digging, removal of above ground structures by mechanical means and other earth moving operations, within CGS service territory, shall be required to notify the one call notification system 48 hours excluding weekends [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 27 and holidays before digging commences (References Florida Statutes §556 and OSHA 1926.651). If a person or company causes damage to an above or underground pipeline facilities owned by CGS and through negligence or accident or otherwise has been deemed liable for the damages, then that entity shall be responsible for all costs associated with the damage. This will include the cost of gas lost (billed at the purchased gas adjustment rate), time and materials to repair the damage, all labor costs associated with turning off and on gas accounts that were affected as a result of the damage, and any third party claims plus administrative costs. The party or parties responsible shall remit payment for all claims directly to CGS upon receipt of invoice or notification of the City of Clearwater Risk Management Department. (4) Gas contract and rate application policies: The following represent policies of the City of Clearwater as applied by CGS: (a) Uniformity of rate and service application: To the extent that the customer requests a review of his/her rate account, all rates, charges and contract provisions are intended to be consistently and uniformly applied to all customers of the same type with the same usage characteristics, fuel options, and equipment capabilities. Any customer who feels that they have been treated unjustly and is unable to resolve the dispute CGS personnel and management has full access to the normal City of Clearwater utilities dispute resolution process as defined in the City Code of Ordinances, Chapter 32, Section 32.004. (b) Contract rate level determination: It is the policy of CGS to offer a customer or potential customer who currently uses or has access to an alternate energy source and has the capability to use this alternate energy source, or is otherwise deemed to be a threat to discontinue gas usage, a rate level adequate to acquire or preserve the gas load, provided that such a rate application provides a profit margin to CGS greater than the capital investment to serve such a customer as outlined in section (4)(d)2 below and the alternative energy source generates more greenhouse gas emissions than natural gas. (c) Rate schedule reductions or minor changes: The City Manager, or designee, is authorized to reduce the billing charge(s) for any rate schedule(s) or to make minor rate schedule modifications in keeping [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 28 with achieving the "cost of service based rates" as recommended in the most recent rate study done for CGS. (d) Main and service extension construction feasibility: Whenever a prospective customer requests a new gas service, CGS will extend service to the prospective customer under the following conditions: 1. Design considerations. The extension of gas service to the perspective customer can be reasonably accomplished within good engineering design, access can be secured though easements or right-of-way, and the service will not jeopardize the reliability and/or quality of gas service to existing customers. 2. Main and Service line extension construction feasibility. The maximum capital investment which will be made by CGS to extend main lines and service lines to serve a new customer(s) shall be 10 times the annual Non-Fuel Energy (NFE) Rate times the Calculated Annual Therms/Gallons (CAT/CAG) to be derived from the facilities PLUS 10 times the annual gas customer charge revenues. The formula shall be: 10 x (NFE Rate) x (CAT or CAG) + 10 x (Annual Customer Charge Revenues)______ = Maximum Investment for Construction Feasibility In order to qualify for the above CGS Capital Investment, Residential customers must maintain a year-round gas utility account and install a minimum one (1) year-round appliance (i.e., Water heater, furnace, dryer, cooking) AND a secondary gas appliance, which can be year-round or seasonal/intermittent (i.e., pool/spa heating, fireplace, generator, grills) AND have a minimum of 150 CAT/CAG consumption. All appliance consumption amounts (i.e., CAT/CAG) and “year-round” or “seasonal” determination will be set by CGS departmental policy. All line extension feasibilities for commercial and industrial customers will solely rely on the Capital Investment formula listed in this section. 3. Customer contribution required. If the capital construction costs to extend the main and/or service line exceed the Maximum Investment for Construction Feasibility, the developer/customer(s) will be required to either provide a Contribution In Aid of Construction (CIAC) to cover the excess investment amount or satisfy this [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 29 deficiency by entering into a Facilities Contract Charge (FCC) rider sufficient to cover this deficiency within a period of 10 years. 4. Refund of Customer Contribution in Aid of Construction. a. At the end of the first year following the date on which Gas Service to the customer meter is turned on, at the Customer’s request, CGS shall recalculate the Maximum Investment for Construction Feasibility and determine if any customer CIAC should be refunded. A re-estimation of the annual revenue (considering the actual revenue derived during the first year) shall be used in such recalculation. CGS shall refund to the customer an amount equal to the positive difference (if any) determined by subtracting the Maximum Investment for Construction Feasibility as originally calculated under section (4)(d)2, to the actual revenues received pursuant to the provisions of section (4)(d)2. b. For each additional customer taking Gas Service from any point on an extended Main or Service facilities within a period of two (2) years from the in-service date of a main extension, CGS shall refund to the customer(s), who provided a CIAC, provided this customer requested refund consideration as described in paragraph 4a above, the amount by which the Maximum Investment for Construction Feasibility of the new customer exceeds the cost of connecting such new customer, provided that an additional Main extension shall not have been necessary to serve such additional customer. c. The aggregate refund to any customer made through the provisions of (a) and (b) above shall not exceed the original CIAC of such customer. d. The extension shall at all times be the property of CGS, and any unrefunded portion of said CIAC at the end of two (2) years shall accrue to CGS. 5. Conversion of equipment to natural gas. CGS will provide the “labor only” to convert the customer's existing appliance orifice(s) (if convertible) to accept natural gas at no labor cost to the customer, provided that the customer’s gas use is year-round. The customer will be responsible for the cost of all other related conversion parts such as controls, gas valves, gas safety devices, additional piping, appliance venting, provisions for combustion or make-up air, or to correct any code deficiency, or to provide any required engineering evaluation for unlisted or unlabeled appliances plus the cost of gas [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 30 inspections and related permits. A commercial or industrial customer must enter into an agreement to exclusively use the natural gas service of CGS for a period to allow for recovery of Clearwater Gas costs; and this amount, when added to the other cost to serve amounts, still renders the project feasible. 6. Relocation of gas service facilities. When alterations or additions to structures or improvements on any premise, roadway right-of-way or public easement, which requires CGS to relocate metering, LP tank, service line, or main line, or when such relocation is requested by the customer, or others, for whatever reason, the customer or others, will be required to reimburse CGS for all or any part of the costs incurred to accomplish such relocation of gas system facilities to remain code compliant and resolve their potential structure conflict. 7. Gas service will be delivered to the customer for each premise at one (1) point of delivery designated by CGS (see City Code of Ordinances, Chapter 32, Section 32.336). CGS highly discourages the installation of multiple meters on the same premise or the use of multiple fuels (natural gas, propane, fuel oil) on such premise. If such installations are justified due to extraordinary circumstances (such as life safety), these must be approved by the CGS Executive Director, and then the multiple meters or fuel sources must be well marked in a permanent fashion. For life safety control purposes, Clearwater Gas will not permit a fuel source (propane or fuel oil) supplied by another company to co-exist on the same premise or commercial occupancy with a Clearwater Gas natural gas service. Section 3. Should any section, paragraph, sentence or word of this ordinance be declared for any reason to be invalid, the same shall not affect the validity of the ordinance as a whole, or any part thereof other than the part declared to be invalid. Section 4. All ordinances or parts of ordinances in conflict herewith are to the extent of such conflict hereby repealed. Section 5. This ordinance shall become effective upon adoption and shall be applicable to all gas bills and services rendered on or after March February 1, 20212024. [GM19-2064-094/263624/1] Ordinance No. 94339739-21 Page 23 Page 31 PASSED ON FIRST READING _____________________________ PASSED ON SECOND AND FINAL READING AND ADOPTED _____________________________ _____________________________ Frank V. HibbardBrian J. Aungst, Sr. Mayor Approved as to form: Attest: ____________________________ _____________________________ Laura MahonyMichael Fuino Rosemarie Call Senior Assistant City Attorney City Clerk [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 1 ORDINANCE NO. 9739-23 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, RELATING TO UTILITIES; AMENDING THE CODE OF ORDINANCES, CHAPTER 32, UTILITIES, ARTICLE VIII, GAS, PROVIDING FOR THE USE OF SUBCONTRACTORS IN THE FULFILLMENT OF GAS SERVICES, AMENDING THE CODE OF ORDINANCES, APPENDIX A, SCHEDULE OF FEES, RATES AND CHARGES, SECTION XXV, CLEARWATER GAS SYSTEM FEES, RATES AND CHARGES, TO REVISE RATES FOR CLEARWATER GAS SYSTEM CUSTOMERS IN ACCORDANCE WITH THE 2023 CLEARWATER COST OF SERVICE AND RATE STUDY; PROVIDING AN EFFECTIVE DATE. WHEREAS, Clearwater Gas System wishes to revise the code of ordinances to provide for certain operational updates; and WHEREAS, the current gas rates and service charges of the Clearwater Gas System have been effective since March 1, 2021; and WHEREAS, it is determined to be fair and reasonable to adopt the recommendations of the Clearwater Gas System to establish gas rates and service charges based on the cost to serve the various classes of customers; now therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. That Chapter 32, Article VIII of the Code of Ordinances of the City of Clearwater is hereby amended as follows: Article VIII. GAS Sec. 32.330. Unified system. [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 2 All municipal utility properties of the city supplying gas service in and to the city and citizens and inhabitants and users thereof shall be controlled, operated and maintained as provided in section 32.001. See appendix A to this Code, for gas system deposits, fees, service charges and rate schedules. Sec. 32.331. Gas code. The installation of gas pipes, fixtures, appliances and other equipment and appurtenances shall be installed in accordance with the gas code of the city, as adopted in section 47.051, Development Code of the City of Clearwater. The installation of the customer’s gas piping system, fixtures, appliances, and other equipment and appurtenances shall be installed in accordance with the latest edition of the Florida Building Code/ICC “Fuel Gas” and the latest edition of NFPA 58 LP Gas Code, or subsequent adopted replacement codes. Sec. 32.332. Application for service. An application for gas service shall be filed with the City of Clearwater, d/b/a Clearwater Gas System (CGS). If a building permit is required, a separate application for a building permit shall be filed with the building division. The applicant shall pay gas system deposits, fees or connection charges at the time the application is filed with CGS. Sec. 32.333. Permit. See city gas code, as adopted by section 47.051, Development Code of the City of Clearwater, for provisions regarding gas permits pursuant to this article. All installation work of the consumer’s piping system and appurtenances shall require applicable permits and successful inspections by the applicable jurisdictional authority. Sec. 32.334. Tapping and connection. Tapping of all gas mains and service connections shall be done by CGS or an authorized contractor for the city. Title to all service connections from the main to the meters and meter installations is vested in the city, and the same shall at all times be the sole property of the city and shall not be trespassed upon or interfered with in any respect. Such city property shall be maintained by CGS and may be removed or changed by it at any time. Only licensed gas or plumbing contractors shall make the final connection between CGS gas meter or LP (propane) gas service lines and the customer’s gas piping and only after proper permits have been issued by the appropriate jurisdictional authorities and have attained a successful final gas inspection. Only CGS employees and contractually approved subcontractors of CGS are permitted to turn on gas and initiate service. Sec. 32.335. Maintenance of meters and service lines. [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 3 CGS shall have the right to meter any and all gas service lines. CGS alone shall have the right to stipulate the size, type, make and location of meters, type of meter setting, and the gas delivery pressure. All meters shall be maintained by the City. The customer shall be held responsible for damage to a meter or service line when such damage results from the negligence of the customer. When such damage occurs, the city will furnish and set another meter and repair the damaged meter or make other necessary repairs, and the cost of such repairs, including replacement parts, labor and transportation charges, shall be paid by the customer. Sec. 32.336. Meters and LP Tank Locations and delivery pressure. Gas service will be delivered to the customer for each premise at one (1) point of service. The location of the meter or tank will be designated by the applicable gas system representative and will typically be within ten (10) feet of the nearest corner of the premise to the gas main and in a location that is expected to be maintained by the customer as accessible, i.e., not expected to be enclosed by fencing or hedges. Locations that have multiple gas meters shall have them installed in the same point of service area as described above. Each gas meter and service regulator and propane LP tank shall be installed in a location readily accessible for reading, inspection, repairs, testing and changing of the meter/tank and operation of the gas shutoff valve, and shall be protected from corrosion and other damage. The customer is responsible for maintaining bushes, vegetation, sprinklers, etc. clear from the meter/tank to allow access and good operational performance. Sprinklers and their flow must be maintained clear of the meter/tank to avoid premature corrosion. Upon discovery of a deficiency and notification to the customer, remedial actions must be made including potentially requiring the relocation of the gas facilities to ensure life safety and to maintain required clearances. If this work is done by CGS personnel, then normal Time and Material charges will apply. The standard delivery pressure of natural gas at the point of delivery to the consumer (the meter) is established at the option of CGS at either 2 pounds per square inch (PSI) or seven (7) inches water column (approximately ¼ PSI) and for propane (LP) from the tank is established at the option of CGS at either eleven (11) inches water column (approximately 3/8 PSI) or 2 PSI. An optional delivery pressure above the standard may be requested by the customer or the customer’s contractor in advance and may be approved at the sole discretion of CGS. There are advantages to each pressure and not all may be operationally available at any given location. Sec. 32.337. Status of gas quantity recorded. The quantity of gas recorded by the meter shall be conclusive, except when the meter is found to be registering inaccurately or has ceased to register. [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 4 In such cases, the quantity may be determined by the average registration of the meter in a corresponding past period or by the average registration of the new meter, whichever method is, in the opinion of the city, representative of the conditions existing during the period in question. Sec. 32.338. Testing. CGS reserves the right to remove or test any meter at any time and to substitute another meter in its place. In case of a disputed account involving the question of accuracy of the meter, the meter will be tested by the city upon written request of the customer. The customer agrees to accept the results of the test made by the city. If the meter tested is found to have an error in registration in excess of two percent (2%) as based on the arithmetical average of one-fourth load and full load of the meter, there will be no charge for the testing; but should the test show error in registration less than three percent there shall be a charge for testing the meter. The billing for the testing will be charged to the customer's account. Sec. 32.339. Tampering. No person other than an agent of the city shall remove, inspect or alter any part of the gas piping system leading up to and including the gas meter. The customer shall notify the city of any damage to or any failure of the meter or service line. Sec. 32.340. Authority to turn on gas. (1) Generally. It shall be unlawful for any person other than a CGS employee or a specifically designated and approved agent of the City to turn on, or in any way alter or damage, any gas meter which has been turned off by the City. The customer serviced by the meter shall be held responsible for any actions. (2) Unauthorized connections. A fee shall be charged for the removal of any device which has been installed in lieu of or in addition to a gas meter, except where the pipe or device has been authorized in writing by the City. (3) Open meter bypass servicing. A fee, over and above the bill established from the meter reading, shall be charged for the service of turning off the meter bypass valve, when such opening was not previously authorized in writing by the City. (4) Broken stop locks. A replacement fee shall be charged for the replacement of meter stop locks which have been broken or removed. Sec. 32.341. Responsibility for gas in service lines. [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 5 The City is responsible for the gas contained within the service lines. The term "service line" means a distribution line that transports gas from a common source of supply to a customer meter outlet or the outlet of the second stage LP gas regulator connection to a customer's house piping, or the connection to a customer's piping if there is no customer meter. A customer meter is the meter that measures the transfer of gas from CGS, the gas supplier, to a consumer. The customer is responsible for all maintenance, line locating, and repair of their customer-owned piping system, which is beyond the gas meter outlet or beyond the outlet of the second stage LP gas regulator. Sec. 32.342. Optional Services provided by Clearwater Gas System beyond the meter/LP tank. The provision of propane (LP) gas service, gas service and repair services, gas installation services, and gas appliance/equipment sales are all competitive services rendered in the market place by other providers. CGS retains the sole right to elect where and when to provide these optional services at the sole discretion of the CGS Executive Director. At any time, CGS may elect to discontinue providing these optional services and may instruct the customer to acquire same from another market vendor of these services. Section 2. That Appendix A – Schedule of Fees, Rates and Charges of the Code of Ordinances of the City of Clearwater is hereby amended as follows: XXV. CLEARWATER GAS SYSTEM FEES, RATES AND CHARGES: Rate schedules, fees and charges (§ 32.068): (1) Natural gas service rates. The following monthly rates shall apply to all customers who are provided the availability of natural gas service by the Clearwater Gas System (CGS), based on their applicable class of service: (a) Residential natural gas service (rate RS): Firm natural gas service for domestic uses in all residences of three units or fewer. Monthly customer charge . . . . . . . . . . . . $16.00 Non-fuel energy charge, per therm . . . . $0.56 [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 6 Minimum monthly bill . . . . . . . . . . . . . . . $16.00 (b) Small multi-family residential service (rate SMF): Firm natural gas service for all domestic applications within the living units of multi-family buildings of four units or more and the total annual consumption at the premise is 0 - 17,999 therms. Monthly customer charge . . . . . . . . . . . . $25.00 Non-fuel energy charge, per therm . . . . $0.56 Minimum monthly bill . . . . . . . . . . . . . . . $25.00 (c) Medium multi-family residential service (rate MMF): Firm natural gas service for all domestic applications within the living units of multi-family buildings of four units or more and the total annual consumption at the premise is 18,000 - 99,999 therms. Monthly customer charge . . . . . . . . . . . . $40.00 Non-fuel energy charge, per therm . . . . $0.56 Minimum monthly bill . . . . . . . . . . . . . . . $40.00 (d) Large multi-family residential service (rate LMF): Firm natural gas service for all domestic applications within the living units of multi-family buildings of four or more and the total annual consumption at the premise is 100,000 therms or more. Monthly customer charge . . . . . . . . . . . . $95.00 Non-fuel energy charge, per therm . . . . $0.56 Minimum monthly bill . . . . . . . . . . . . . . . $95.00 (e) Small natural gas general service (rate SGS): Firm natural gas service for all commercial, industrial, and other applications where no other rate is applicable and the customer's annual consumption at the premise is 0 - 17,999 therms. Monthly customer charge . . . . . . . . . . . . $25.00 Non-fuel energy charge, per therm . . . . $0.50 Minimum monthly bill . . . . . . . . . . . . . . . $25.00 [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 7 (f) Medium natural gas general service (rate MGS): Firm natural gas service for all commercial, industrial, and other applications where no other rate is applicable and the customer's annual consumption at the premise is 18,000 - 99,999 therms. Monthly customer charge . . . . . . . . . . . . $40.00 Non-fuel energy charge, per therm . . . . .$0.46 Minimum monthly bill . . . . . . . . . . . . . . . $40.00 (g) Large natural gas general service (rate LGS): Firm natural gas service for all commercial, industrial, and other applications where no other rate is applicable and the customer's annual consumption at the premise is 100,000 therms or more. Monthly customer charge . . . . . . . . . . . . $95.00 Non-fuel energy charge, per therm . . . . $0.42 Minimum monthly bill . . . . . . . . . . . . . . . $95.00 (h) Interruptible natural gas service (rate IS): Interruptible natural gas service available under a standard agreement for commercial and industrial applications where the customer's annual consumption at the premise is 100,000 therms or more; and where the customer has either installed alternative fuel capability and/or contractually agrees to curtail service at the request of the CGS, subject to penalties for failure to comply. Monthly customer charge . . . . . . . . . . . . $250.00 Non-fuel energy charge, per therm . . . . $0.28 Minimum monthly bill . . . . . . . . . . . . . . . $250.00 Plus the non-fuel therm rate for the minimum number of contract therms per day Note: All customers being served under Contract Rates as of January 31, 2024, will be allowed to remain on their existing [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 8 contracts until their next expiration date, at which time that contract will automatically be discontinued, and the customer will be moved to the applicable standard rate unless a new contract is executed. (i) Contract natural gas service (rate CNS): Contract natural gas service for special applications and conditions approved by the City Manager or designee. This rate is typically applicable where competitive fuel sources are confirmed to be available to the customer and special rates with special conditions are required to obtain/retain the customer. This rate may be used to construct a special standby rate where the customer requires capability to serve, but normally uses an alternative energy source. Such service must fall within the normal construction feasibility formula to insure a profitable payback to the City. Contract customers are charged for a contracted Purchased Gas Adjustment (PGA) charge but no other gas rider charges. Monthly customer charge.... The same as the normally applicable service class Non-fuel energy charge.... Per therm as established by contract Minimum monthly bill.... Monthly customer charge plus the non-fuel therm rate for a contract level of monthly consumption Note: All customers being served under Contract Rates as of January 31, 2024, will be allowed to remain on their existing contracts until their next expiration date, at which time that contract will automatically be discontinued, and the customer will be moved to the applicable standard rate unless a new contract is executed. (j) Residential natural gas air conditioning/emerging technology service (rate RAC): RESERVED FOR FUTURE USE (k) General natural gas air conditioning/emerging technology service (rate GAC): RESERVED FOR FUTURE USE (l) Large natural gas air conditioning/emerging technology service (rate LAC): [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 9 RESERVED FOR FUTURE USE (m) Natural gas street lighting service (rate SL): Natural gas service for lighting of public areas located in the right of way or private property, to include service for all types of decorative lighting to enhance ambient conditions. Service may be either metered or contracted with an estimated annual usage when metering is not operationally feasible. The customer may elect to either: • subscribe for normal street lighting maintenance and relighting labor service, or • call CGS for repair service and pay normal hourly labor charges (see other miscellaneous gas charges), or • maintain their own lights. Repair equipment and/or parts supplied by CGS will be billed as required. When the gas system provides poles, fixtures, piping, and/or installation labor beyond the service connection point, facilities contract charges may be assessed including any right-of- way permitting and utilization charges. The standard PGA will be utilized, but no other gas rider charges will apply unless contracted for. Monthly customer charge . . . . . . . . . . . . $20.00 * Non-fuel energy charge, per therm . . . . .$0.26 Normal maintenance and relighting labor service charge, per therm . . . . $0.15 additional Plus any required equipment/parts Minimum monthly bill . . . . . . . . . . . . . . . $20.00 * * Monthly customer charge not applicable if another customer charge is being billed at the same premise. Plus any applicable facilities contract charges (n) Contract natural gas transportation service (rate CTS): Service for transportation of someone else's natural gas through CGS for supply to another gas system or an individual customer. This is a contract natural gas service and must be approved by the City Manager or designee. Provision of this service must fall within the normal [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 10 construction feasibility formula to insure a profitable payback to the City. No gas rider charges will apply for this rate class unless contracted for or listed below. Monthly customer charge.... As established by contract (typically the same as the normally applicable service class) Non-fuel energy charge.... Per therm as established by contract (typically the same as the normally applicable service rate plus charges for balancing services and any additional services desired by the customer) Minimum monthly bill.... Monthly customer charge plus the non-fuel therm rate for a contracted level of minimum monthly flow as well as any facilities contract charges for special facilities and metering required to provide this transportation service (o) Natural gas vehicle service (rate NGV): Natural gas service for fleet vehicle fueling and for Compressed Natural Gas (CNG) Fueling Stations operated by CGS. This is a contract rate approved by the City Manager or designee. Provision of this service must fall within the normal construction feasibility formula to insure a profitable payback to the City. NGV fleet services will be separately metered and must service exclusively fleet fueling facilities. CNG Fueling Station rates will be metered through dispensing apparatus and billed at rates similarly approved by the City Manager or designee, except that contracts, under section (i) Contract Natural Gas Service Rate (CNS), may be established for certain customer fleets based on volumes. Note: This rate is not applicable for residential or small general service rate applications (fewer than 18,000 therms of annual use for the customer’s fleet vehicles). Such non-fleet applications will be billed under the customer’s normal rate applicable to the premise, but a separate meter may be requested by the customer to allow [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 11 measurement for federal or state excise tax credit purposes. Where an additional meter is requested, CGS may charge for its initial installation and any future additional maintenance required but will not add an additional monthly customer charge to the premise. Note: The total energy charges for this service including all adjustments, facilities charges, taxes, etc. may be expressed as a rate "per gallon equivalent of gasoline or diesel." Contract PGA will be utilized but no other gas rider charges will apply unless contracted for. (p) Natural gas emergency generator or other standby service (rate NSS): Natural gas service to a metered account, separately established for back-up service, where no substantial gas service is used for year round purposes. Note: This rate is not applicable for Residential single-family applications. Such residential emergency generator applications are handled under the RS rate application. Monthly customer charge . . . . . . . . . . . . $50.00 Non-fuel energy charge, per therm . . . . .$0.44 Minimum monthly bill . . . . . . . . . . . . . . . $50.00 Plus any facilities contract charges for the facilities and metering required to serve this account (2) Propane (LP) gas service rates. The following rates shall apply to all customers who are provided the availability of propane (LP) gas service by CGS, based on their applicable class of service. Clearwater Gas requires all residential customer accounts have year-round, whole house water heating as a minimum criteria for qualifying for service. (a) Residential Bulk Propane Gas Service (Rate BRLP): Bulk delivered LP service for “year round” domestic uses (such as water heating, cooking, heating, clothes drying, and lighting) in all residences of three (3) units or fewer. Usage Class Annual Units/Gallons Non-fuel Energy Charge per Gallon Non-refundable Annual Customer Charge [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 12 0 No Fills in Past 12 Months $1.80 $395.00 1 0.1--- 60 $1.80 $270.00 2 60.1---120 $1.60 $225.00 3 120.1---300 $1.00 $135.00 4 >300 $0.90 $120.00 (b) Residential "Will Call" Propane Gas Service (Rate WRLP: Bulk delivered LP Service for all customers with exclusively “leisure living” domestic uses (such as pool/spa heating, fireplaces, and grills) plus customers with “year-round” appliances who request “will call” status in all residences of three (3) units or fewer. A “Will Call” customer is responsible for monitoring tank fuel level, assessing when they will need a fill, and requesting propane delivery. No trip charge for delivery if customer can wait for a normally scheduled four (4)-business day delivery. Trip charges for early delivery are located in (3)(h). Note that the four (4) business days start on the next business day after the customer’s request, i.e. if the customer calls with a “Will Call” fill request on Monday, then we will fill no later than the following Friday. Usage Class Annual Units/Gallons Non-fuel Energy Charge per Gallon Non-refundable Annual Customer Charge 0 No Fills in Past 12 Months $1.80 $395.00 1 0.1 – 60.0 $1.80 $255.00 2 60.1 - 120 $1.60 $195.00 3 120.1 - 300 $0.90 $120.00 [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 13 4 >300 $0.80 $105.00 (c) Residential Loop System Propane Gas Service (Rate LRLP): Metered delivery LP service for all domestic uses within a loop delivery system (Propane Distribution system serving multiple customers.) Monthly Customer Charge . . . . . $16.00 Non-Fuel Energy Charge Per gallon . . . . . . . . . . . . . $0.90 Minimum Monthly Bill . . . . . . . . . .$16.00 (d) Commercial Propane Gas Service (Rate BCLP): Bulk delivered LP service for commercial, industrial, and other applications where no other rate is applicable. Usage Class Annual Units/Gallons Non-fuel Energy Charge per Gallon Non-refundable Annual Customer Charge 1 0---2500 $0.25 $90.00 2 >2500 $0.20 $90.00 (e) Residential Metered Propane Gas Service (Rate MRLP): Metered delivered LP service for all domestic uses in all residences of three (3) units or fewer. Monthly customer charge . . . . . . $16.00 Non-fuel energy charge: Per gallon . . . . . . . . . . . . . $1.90 [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 14 Minimum monthly bill . . . . . . . . . $16.00 (f) Multi-family Metered Propane Gas Service (Rate MMLP): Metered delivered LP service for all domestic applications within the living units of multi-family buildings of four (4) units or more. Monthly customer charge . . . . . . $25.00 Non-fuel energy charge: Per gallon . . . . . . . . . . . . . $1.90 Minimum monthly bill . . . . . . . . . . $25.00 (g) General Metered Propane Gas Service (Rate MGLP): Metered delivered LP service for all commercial, industrial, and other applications where no other rate is applicable and the annual consumption at the premise is 0---2,500 gallons. Monthly customer charge . . . . . . $25.00 Non-fuel energy charge: Per gallon . . . . . . . . . . . . . $0.30 Minimum monthly bill . . . . . . . . . . $25.00 (h) Large Metered Propane Gas Service (Rate MLLP): Metered delivered LP service for all commercial, industrial, and other applications where no other rate is applicable and the annual consumption at the premise is more than 2,500 gallons. Monthly customer charge . . . . . . $40.00 Non-fuel energy charge: Per gallon . . . . . . . . . . . . . $0.25 Minimum monthly bill . . . . . . . . . . $40.00 (i) Contract Propane Gas Service (Rate CLP): Contract metered, or bulk delivered LP gas service for special applications and conditions approved by the city manager or designee. This rate is typically [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 15 applicable where competitive fuel sources are confirmed to be available to the customer and a special rate with special conditions is required to obtain/retain the customer. Such service must fall within the normal construction feasibility formula to insure a profitable payback to the city. Monthly customer charge. The same as the normally applicable service class Non-fuel margin rate. Per gallon as established by contract Minimum monthly bill. Monthly customer charge plus the non-fuel usage rate for contracted level of monthly consumption. Note: All customers being served under Contract Rates as of February 28, 2021, will be allowed to remain on their existing contracts until their next expiration date, at which time that contract will automatically be discontinued, and the customer will be moved to the applicable standard rate unless a new contract is executed. Contract PGA charges will be utilized, but no other gas rider charges will apply unless contracted for. (j) Propane (LP) Gas Vehicle Service (Rate LPV): Propane gas service for fleet vehicle fueling. This is a contract rate approved by the City Manager or designee. Provision of this service must fall within the normal construction feasibility formula to insure a profitable payback to the city. Note: This rate is not applicable for residential or small general service rate applications (fewer than 20,000 gallons of annual use for the customer’s fleet vehicles). LPV services will be on a separate account servicing exclusively fleet fueling facilities. Monthly customer charge. $40.00 for general service applications only if a customer charge is not already being billed on another metered account at the premise on a firm rate schedule. Non-fuel energy charge. Per gallon as established by contract, which includes any applicable customer-specific or public, fill station facilities charges required to provide this service. Minimum monthly bill. Monthly customer charge plus any applicable monthly facilities contract charges for special facilities, metering or fleet conversion costs required to provide this service. Standard PGA charges will be utilized but no other gas rider charges will apply unless contracted for. [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 16 Note: The total energy charges for this service including all adjustments, facilities charges, taxes, etc., may be expressed as a rate "per gallon equivalent of gasoline." (k) Commercial Propane Metered Gas Emergency Generator or Other Standby Service (Rate LPSM): LP gas service to an account separately established for back-up service, where no other substantial gas service is used for year-round purposes. Monthly customer charge . . . . . . $50.00 Non-fuel energy charge: Per gallon . . . . . . . . . . . . . . $1.00 Minimum monthly bill . . . . . . . . . . $50.00 Initial metered usage charge. A one-time charge for the number of gallons required to initially fill the LP tank (size as requested by the customer). (l) Commercial Propane Bulk-Delivered Gas Emergency Generator or Other Standby Service (Rate LPSB): LP gas service to an account separately established for back-up service, where no other substantial gas service is used for year-round purposes. Annual customer charge . . . . . . . $420.00 Non-fuel energy charge: Per gallon . . . . . . . . . . . . . . . $1.00 Initial delivery charge. A one-time charge for the number of gallons required to initially fill the LP tank (size as requested by the customer) plus the initial annual customer charge. Standard PGA charges will be utilized, but no other gas rider charges will apply unless contracted for. (m) Effect of Energy Conservation Measures on Usage Classes in (a) and (b) above: Should the customer install a more energy efficient appliance or appliances while a customer of CGS and this causes their usage to drop, such that their Usage Class would change thereby increasing the Annual Customer Charge and/or the Non-Fuel Energy Rate, then the estimated effect of the more efficient appliance on annual usage may be added to the actual annual usage to determine the customer’s applicable Usage Class. This is [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 17 intended to ensure that the customer is not adversely impacted for such energy efficient installation. (3) Other gas charges. The following charges and fees may also be applied to customers of CGS served under an applicable natural gas or propane (LP) gas service rate: (a) Facilities contract charge (rider FCC): A rider applicable to any of the above rates to cover installation of facilities beyond those typically provided to other customers of the class or beyond the costs incorporated into the applicable gas rate. On-going FCC charges.... A monthly flat or per unit consumed charge calculated to cover the on-going estimated maintenance costs associated with the special or additional facilities. These charges will be contractual and subject to annual revisions upward based on the CPI index or based on a revised cost calculation at the discretion of the City Manager or designee. Time-limited FCC charges.... A monthly flat or per unit consumed charge calculated to cover the costs associated with additional facilities as requested by the customer, excess main and service construction costs which do not meet the construction feasibility formula, or appliance/equipment sales costs. Such charges may include other applicable costs associated with furnishing the requested facilities, including financing costs. Where such FCC charges result from the additional costs incurred by CGS at the request of the developer to achieve feasibility, such FCC charges are binding upon the future customers/occupants of such applicable accounts for the period necessary to meet the feasibility calculation for the project. [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 18 Public fill station facilities charge.... A natural gas per therm or propane (LP) per gallon charge calculated to recover the common facilities costs to provide such service. This will be calculated and may be updated from time-to-time by the gas system and approved by the City Manager or designee. (b) Purchased gas adjustment (rider PGA): A rider applicable to all natural gas therm rates and propane (LP) gallon rates to recover the cost of CGS’s purchased gas supply, including losses and use by gas system facilities/equipment and other applicable expenses. The currently calculated PGA rates for all rate schedules, unless specifically broken out by contract, are: Natural gas firm standard rate schedule PGA, per therm. . . . $0.57 Natural gas interruptible and contract (non-standard) rate schedule PGA, per therm . . . $0.48 Propane (LP) gas rate schedule PGA, Per gallon . . . $1.65 The above PGA rates are based on the weighted average cost of gas (WACOG) as currently approved for February 1, 2024. These PGA rates will normally be adjusted on a quarterly basis with the approval of the City Manager or designee based on actual and projected supply costs and projected consumption levels in order to recover the total cost of the gas system's supply plus all costs attributable to the acquisition of system supply gas and other applicable expenses. The over or under recovery of these PGA costs will be computed monthly and an adjustment in the PGA rate will be made at the discretion of the City Manager or designee. The differential between the Natural Gas firm standard rate schedules PGA and the Natural Gas Interruptible and contract (non-standard) rate schedules PGA will be established and approved by the City Manager or designee for each annual period based on the available records for the most recent 12 months. This differential will typically be computed by dividing the transmission pipeline "reservation charges" component of the WACOG by the therms sold to all of the natural gas firm rate schedules. The gas system may also segment [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 19 specific gas purchases for specific targeted customer(s) based on contract. Additionally, a fixed monthly amount may be added to the customer charge of applicable classes of natural gas service rates to recover the estimated impact of the added costs associated with gas purchased through a third-party transporter (including generally east of the Suncoast Parkway in Pasco County). These added monthly customer charges shall be credited to the overall PGA recovery account and will be initially set at: Residential ……………………………………….. $ 8.00 per month Small General Service & Multi-Family ..………. $ 15.00 per month Medium General Service & Multi-Family … ….. $ 30.00 per month Large General Service & Multi-Family ………... $ 65.00 per month Interruptible Service …………………………….. $150.00 per month Contract Rates --- Apply the same as the normal class of customer using the above schedules based on usage level Similarly, a differential between LP Gas standard rates and contract LP rates may be computed to exclude a portion of the other costs attributed to LP PGA other than physical gas. This differential will be calculated by the Gas System Executive Director annually based on historical costs and will be approved by the City Manager or designee. The gas system may also segment specific LP gas purchases for specific targeted customer(s) based on contract. These added monthly customer charges may be adjusted upward or downward from time-to-time with the approval of the City Manager or designee based on actual and projected added PGA costs. (c) Energy conservation adjustment (rider ECA): A rider applicable to all firm standard (non-contract) natural gas therm rates and non-contract propane (LP) gallon rates to recover the cost of energy conservation programs undertaken by CGS as approved by the Gas System Executive Director. The ECA will not be applied to interruptible natural gas or other non-standard contract rates. The currently calculated ECA rates are: Natural Gas Rate Schedule ECA, per therm . . . .$0.13 Propane (LP) Gas Rate Schedule ECA, per gallon . . . $0.13 The above ECA rates are as currently approved for February 1, 2024. These ECA rates will normally be reviewed annually in [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 20 October and may be adjusted upward or downward from time-to-time with the approval of the City Manager or designee based on actual and projected energy conservation program costs and projected consumption levels in order to recover the total cost of applicable gas system programs, including energy conservation incentive payments as well as the applicable labor and other costs attributable to such energy conservation programs and other applicable expenses. The over or under recovery of these ECA costs will be computed and an adjustment in the ECA rate will be made at the discretion of the City Manager or designee. (d) Regulatory imposition adjustment (rider RIA): A rider applicable to all firm standard (non-contract) natural gas therm rates and non- contract propane (LP) gallon rates to recover the cost of environmental, operator qualification, distribution integrity, inspection, survey, and other regulatory imposed program requirements imposed on CGS by federal, state or local regulatory agencies. The RIA will not be applied to interruptible natural gas or other non-standard contract rates. The currently calculated RIA rates are: Natural Gas Rate Schedule RIA, per therm . . . . $0.01 Propane (LP) gas rate schedule RIA, per gallon . . . . $0.01 The above RIA rates are as currently approved for February 1, 2024. Note that this RIA rider incorporates the former Environmental Imposition Adjustment (EIA), which covers the environmental project costs as well as the labor and other costs attributable to such environmental projects. This RIA also includes Other Regulatory Adjustment (ORA) charges, such as operator qualification, distribution integrity, required inspections, survey and other regulatory imposed program requirements and regulatory fees imposed on CGS by federal, state or local regulatory agencies. These RIA rates (EIA + ORA) will normally be reviewed annually in October and may be adjusted upward or downward from time to time to reflect the over or under recovery of these RIA costs at the discretion of the City Manager or designee. (e) Usage and Inflation adjustment (rider UIA): A rider applicable to all standard non-contract natural gas therm rates and standard non- contract propane (LP) gallon rates to recover loss of planned base non-fuel revenues to CGS due to changes in use per customer from the test year values as set in the 2023 Gas Rate Study (see below) [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 21 as well as the change in inflation as measured by the Consumer Price Index for U. S. City average of all urban consumers (CPI-U). The currently calculated UIA rates are: Natural gas rate schedule UIA, per therm . . . . $0.00 for Residential $0.00 for Commercial Propane (LP) gas rate schedule UIA, per gallon . . . . $0.00 for Residential $0.00 for Commercial The above UIA rates are as currently approved for February 1, 2024. Future UIA adjustments will be based on the current rate ordinance. The UIA rates may be implemented at the sole discretion of the City Manager or designee based on variations from the most recent established Gas Rate Study values: CPI-U (South Region) as prepared by the U. S. Department of Labor, Bureau of Labor Statistics (basis is August 2023 Gas Rate Study projected index of 298.975) Residential Use per customer based on 195 annual therms/natural gas single-family customer. Note that this factor may be applied to all residential standard (non-contract) rate classes for natural gas as well as propane. Commercial Use per customer based on 5,501 annual therms/natural gas standard and contract general service customers excluding Interruptible customers. Note that this factor may be applied to all general service standard (non-contract) rate classes for natural gas as well as propane. (f) Franchise and other city/county fees recovery clause (rate FFR): A charge levied by CGS on every purchase of gas within a municipality or county area to recover the costs assessed by governmental entities in accordance with the franchise agreement in force between the City of Clearwater and that other governmental entity and including any other otherwise unrecoverable fees, special taxes, payments in lieu of taxes, or other impositions by any governmental entity (including the City of Clearwater) on the services of CGS sold within such municipality or county area. The fees collected within each governmental jurisdiction shall be used exclusively to pay the franchise fees and other governmental fees, taxes, and other [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 22 impositions levied on services within that governmental jurisdiction. Within the City of Clearwater where a franchise agreement is not in force, the City of Clearwater will levy a six percent (6.0%) payment in lieu of taxes on all gross firm natural gas sales (excluding interruptible) and CGS will bill this in the same manner as if it were a franchise fee. (g) Tax clause (TAX - Various): All taxes due the appropriate governmental entities (such as but not limited to State of Florida gross receipts tax, State of Florida sales tax, county sales tax, municipal utility tax, and others which may be legally levied from time to time on the purchase of gas) will be billed to the customer receiving such service and rendered to the governmental entity in accordance with the applicable statute, ordinance, or other legally enforceable rule. (h) Other miscellaneous gas charges: The following charges are applicable whenever gas services are rendered to the customer: The miscellaneous rates listed in this section may be reviewed and adjusted from time-to-time by the Gas Executive Director, with the approval of the City Manager or designee. Additionally, the Gas Executive Director may approve “Contract Service Charge Rates” for customers who regularly use CGS’ Service & Repair and will contractually subscribe for such use. 1. Meter turn-on (Residential): Account for new customers, seasonal reconnects, and after nonpayment disconnect. Scheduled next business day or beyond. . . . . . .$ 80.00 Scheduled same business day . . . . . . . . . . . . . .$140.00 2. Meter turn-on (Commercial/Industrial): Account for new customers, seasonal reconnects, and after nonpayment disconnect (up to 4 appliances). Scheduled next business day or beyond. . . . . . .$175.00 Scheduled same business day . . . . . . . . . . . . . .$215.00 * Beyond 4 appliances, per each, add $20.00 3. Meter read for account change (no meter turn-on required). Scheduled next business day or beyond. . . . . . .$ 50.00 Scheduled same business day . . . . . . . . . . . . . .$140.00 4. Replace broken stop or locks on meters . . . Time and materials 5. Meter or LP Tank Connection or Re-connection to customer- owned piping system . . . Time and materials [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 23 6. Relocate gas meter . . . Time and materials 7. Install bumper posts or other necessary protection for meters, LP tanks, or other gas equipment …. Time and materials 8. Standard Time and Labor Rates: Service and Repair, Installation, Maintenance or other work performed by CGS personnel, plus any applicable material charges: 1-person crew . . . $180.00 for the first 1 hour of labor, plus $35.00 for each additional time on-site/quarter hour or portion thereof. Minimum charge is $50.00 for the trip if no labor is performed or if the customer does not show for an appointment. 2-person crew. . . $250.00 for the first 1 hour of labor, plus $50.00 for each additional time on-site/quarter hour or portion thereof. Minimum charge is $80.00 for the trip if no labor is performed or if the customer does not show for an appointment. The above Time and Labor Rates are based on work within the CGS Natural Gas Service Territory. Where customers request work to be done outside of the normal CGS Service Territory . . . Added time will be assessed for the travel to and from the Territory border to the Customer’s Site. The time and trip charges associated with providing all quotes and developing plans will be added to the cost of the billed job. 9. Overtime surcharge for all work including installation, service and repair, and maintenance as requested by the customer for after operational hours, including weekends and holidays . . . Double normal applicable charges 10. Overtime surcharge for call-out turn-ons or lighting of pilots as requested by the customer for after operational hours, including weekends, and holidays . . . Double same day charge 11. Special meter reading at customer request, as scheduled by CGS, including billing inquiries where reading is determined to be accurate (per account) . . . . . . . . . . . . . . . . . . . $65.00 12. Gas meter test at customer request, as scheduled by CGS, if results are within limits (per meter) . . . . . . . . . $150.00 [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 24 13. Reset residential gas meter after same customer requests removal (per meter), as scheduled by CGS . . . $150.00 14. Unauthorized tampering meter bypass or hookup . . . Time and materials plus ten percent (10%) of the average monthly bill for each day since last reading deemed to be accurate 15. Emergency response for non-CGS consumers or other utilities . . . Time and materials 16. Propane Fuel recovery and ownership of L.P. gas from tank . . . Time and materials. The LP fuel in the tank is non-refundable. If the customer provides an approved for service, listed LP gas container, then we will transfer as much LP gas as practical. Full abandonment and/or removal of buried LP tank is at CGS’ sole discretion. If the underground tank is removed, then any required landscaping or site restoration is the responsibility of the customer. If the tank is abandoned on-site, CGS will make it safe by removing the gas and filling it with water (water provided by the customer) and the tank ownership then becomes the customer. Tanks will be considered out of service and fuel abandoned by the customer if container is on site more than 12 months without a contract for service or paying entity for the annual customer charge. In such case, CGS will, at its sole discretion, either remove or abandon the tank. Other services not normally provided including work on customer property beyond the meter outlet or the outlet of the second stage LP regulator, such as for gas leak surveys, Cathodic protection corrosion control, customer-owned gas line locating; any related repairs to the customer facilities or master-metered gas distribution systems as required by regulation as well as any work required to correct deficiencies or any work required to move facilities. . . . Time and materials 17. Collector fee: See Appendix A - Public Works Utility Tariffs, Section (4)(a)3 18. Dishonored check service fee: See Code of Ordinances, Section 2.528 19. Missed appointment - Customer not present at time as arranged or equipment not accessible. Residential and Commercial . . . $50.00 [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 25 20. Residential “Will Call” and special request delivery Propane Gas Service trip charges for early delivery: $75.00 trip charge for next business day (or beyond) delivery $150.00 trip charge for same business day delivery service requests during normal business hours $250.00 trip charge for all “call out” fills received after 3:30 pm on normal operational days, or on holidays, or on weekends. Trip charges will be applied even if LP tank is inaccessible or customer is not present when required (CGI). 21. A minimum fill charge of $100.00 for bulk, “Will Call” or metered delivery customers that request a delivery, in fewer than 4 business days. “Will Call” or special request delivery charges will also apply. 22. Leak investigation (make safe only) . . . No charge If turn-on of pilots the applicable charges apply Additional repairs . . . Time & Materials 23. Special seasonal gas turn-on.... The City Manager or designee is authorized to reduce or eliminate the normal gas turn-on charge to attempt to levelize the workload at the beginning of the heating season. 24. Pipeline Damage Claims Any person or company who actively engages in excavating, boring, tunneling, horizontal directional drilling, backfilling, digging, removal of above ground structures by mechanical means and other earth moving operations, within CGS service territory, shall be required to notify the one call notification system 48 hours excluding weekends and holidays before digging commences (References Florida Statutes §556 and OSHA 1926.651). [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 26 If a person or company causes damage to an above or underground pipeline facilities owned by CGS and through negligence or accident or otherwise has been deemed liable for the damages, then that entity shall be responsible for all costs associated with the damage. This will include the cost of gas lost (billed at the purchased gas adjustment rate), time and materials to repair the damage, all labor costs associated with turning off and on gas accounts that were affected as a result of the damage, and any third party claims plus administrative costs. The party or parties responsible shall remit payment for all claims directly to CGS upon receipt of invoice or notification of the City of Clearwater Risk Management Department. (4) Gas contract and rate application policies: The following represent policies of the City of Clearwater as applied by CGS: (a) Uniformity of rate and service application: To the extent that the customer requests a review of his/her rate account, all rates, charges and contract provisions are intended to be consistently and uniformly applied to all customers of the same type with the same usage characteristics, fuel options, and equipment capabilities. Any customer who feels that they have been treated unjustly and is unable to resolve the dispute CGS personnel and management has full access to the normal City of Clearwater utilities dispute resolution process as defined in the City Code of Ordinances, Chapter 32, Section 32.004. (b) Contract rate level determination: It is the policy of CGS to offer a customer or potential customer who currently uses or has access to an alternate energy source and has the capability to use this alternate energy source, or is otherwise deemed to be a threat to discontinue gas usage, a rate level adequate to acquire or preserve the gas load, provided that such a rate application provides a profit margin to CGS greater than the capital investment to serve such a customer as outlined in section (4)(d)2 below and the alternative energy source generates more greenhouse gas emissions than natural gas. (c) Rate schedule reductions or minor changes: The City Manager, or designee, is authorized to reduce the billing charge(s) for any rate schedule(s) or to make minor rate schedule modifications in keeping with achieving the "cost of service based rates" as recommended in the most recent rate study done for CGS. [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 27 (d) Main and service extension construction feasibility: Whenever a prospective customer requests a new gas service, CGS will extend service to the prospective customer under the following conditions: 1. Design considerations. The extension of gas service to the perspective customer can be reasonably accomplished within good engineering design, access can be secured though easements or right-of-way, and the service will not jeopardize the reliability and/or quality of gas service to existing customers. 2. Main and Service line extension construction feasibility. The maximum capital investment which will be made by CGS to extend main lines and service lines to serve a new customer(s) shall be 10 times the annual Non-Fuel Energy (NFE) Rate times the Calculated Annual Therms/Gallons (CAT/CAG) to be derived from the facilities PLUS 10 times the annual gas customer charge revenues. The formula shall be: 10 x (NFE Rate) x (CAT or CAG) + 10 x (Annual Customer Charge Revenues)______ = Maximum Investment for Construction Feasibility In order to qualify for the above CGS Capital Investment, Residential customers must maintain a year-round gas utility account and install a minimum one (1) year-round appliance (i.e., Water heater, furnace, dryer, cooking) AND a secondary gas appliance, which can be year-round or seasonal/intermittent (i.e., pool/spa heating, fireplace, generator, grills) AND have a minimum of 150 CAT/CAG consumption. All appliance consumption amounts (i.e., CAT/CAG) and “year-round” or “seasonal” determination will be set by CGS departmental policy. All line extension feasibilities for commercial and industrial customers will solely rely on the Capital Investment formula listed in this section. 3. Customer contribution required. If the capital construction costs to extend the main and/or service line exceed the Maximum Investment for Construction Feasibility, the developer/customer(s) will be required to either provide a Contribution In Aid of Construction (CIAC) to cover the excess investment amount or satisfy this deficiency by entering into a Facilities Contract Charge (FCC) rider sufficient to cover this deficiency within a period of 10 years. [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 28 4. Refund of Customer Contribution in Aid of Construction. a. At the end of the first year following the date on which Gas Service to the customer meter is turned on, at the Customer’s request, CGS shall recalculate the Maximum Investment for Construction Feasibility and determine if any customer CIAC should be refunded. A re-estimation of the annual revenue (considering the actual revenue derived during the first year) shall be used in such recalculation. CGS shall refund to the customer an amount equal to the positive difference (if any) determined by subtracting the Maximum Investment for Construction Feasibility as originally calculated under section (4)(d)2, to the actual revenues received pursuant to the provisions of section (4)(d)2. b. For each additional customer taking Gas Service from any point on an extended Main or Service facilities within a period of two (2) years from the in-service date of a main extension, CGS shall refund to the customer(s), who provided a CIAC, provided this customer requested refund consideration as described in paragraph 4a above, the amount by which the Maximum Investment for Construction Feasibility of the new customer exceeds the cost of connecting such new customer, provided that an additional Main extension shall not have been necessary to serve such additional customer. c. The aggregate refund to any customer made through the provisions of (a) and (b) above shall not exceed the original CIAC of such customer. d. The extension shall at all times be the property of CGS, and any unrefunded portion of said CIAC at the end of two (2) years shall accrue to CGS. 5. Conversion of equipment to natural gas. CGS will provide the “labor only” to convert the customer's existing appliance orifice(s) (if convertible) to accept natural gas at no labor cost to the customer, provided that the customer’s gas use is year-round. The customer will be responsible for the cost of all other related conversion parts such as controls, gas valves, gas safety devices, additional piping, appliance venting, provisions for combustion or make-up air, or to correct any code deficiency, or to provide any required engineering evaluation for unlisted or unlabeled appliances plus the cost of gas inspections and related permits. A commercial or industrial customer must enter into an agreement to exclusively use the natural gas service of CGS for a period to allow for recovery of Clearwater Gas [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 29 costs; and this amount, when added to the other cost to serve amounts, still renders the project feasible. 6. Relocation of gas service facilities. When alterations or additions to structures or improvements on any premise, roadway right-of-way or public easement, which requires CGS to relocate metering, LP tank, service line, or main line, or when such relocation is requested by the customer, or others, for whatever reason, the customer or others, will be required to reimburse CGS for all or any part of the costs incurred to accomplish such relocation of gas system facilities to remain code compliant and resolve their potential structure conflict. 7. Gas service will be delivered to the customer for each premise at one (1) point of delivery designated by CGS (see City Code of Ordinances, Chapter 32, Section 32.336). CGS highly discourages the installation of multiple meters on the same premise or the use of multiple fuels (natural gas, propane, fuel oil) on such premise. If such installations are justified due to extraordinary circumstances (such as life safety), these must be approved by the CGS Executive Director, and then the multiple meters or fuel sources must be well marked in a permanent fashion. For life safety control purposes, Clearwater Gas will not permit a fuel source (propane or fuel oil) supplied by another company to co-exist on the same premise or commercial occupancy with a Clearwater Gas natural gas service. Section 3. Should any section, paragraph, sentence or word of this ordinance be declared for any reason to be invalid, the same shall not affect the validity of the ordinance as a whole, or any part thereof other than the part declared to be invalid. Section 4. All ordinances or parts of ordinances in conflict herewith are to the extent of such conflict hereby repealed. Section 5. This ordinance shall become effective upon adoption and shall be applicable to all gas bills and services rendered on or after February 1, 2024. PASSED ON FIRST READING _____________________________ [GM19-2064-094/263624/1] Ordinance No. 9739-23 Page 30 PASSED ON SECOND AND FINAL READING AND ADOPTED _____________________________ _____________________________ Brian J. Aungst, Sr. Mayor Approved as to form: Attest: ____________________________ _____________________________ Michael Fuino Rosemarie Call Senior Assistant City Attorney City Clerk Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: 9740-24 2nd rdg Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: OrdinanceIn Control: City Attorney Agenda Number: 7.8 SUBJECT/RECOMMENDATION: Adopt Ordinance 9740-24 on second reading amending the Community Development Code Article 3, Development Standards, Parking and Loading Division, Article 4. Development Review and Other Procedures, General Procedures division, Appendix B., US 19 Zoning District and Development Standards, General Provisions, Subdistrict Standards, Site Design Standards, Building Design Standards, and Administration Division, Appendix C., Downtown District and Development Standards, Character District Standards, Frontage Standards, Site Design Standards, Building Design Standards, Flexibility, and Administration divisions. Page 1 City of Clearwater Printed on 1/23/2024     1   ORDINANCE NO. 9740-24 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA MAKING AMENDMENTS TO THE COMMUNITY DEVELOPMENT CODE BY AMENDING ARTICLE 3. DEVELOPMENT STANDARDS, PARKING AND LOADING DIVISION; BY AMENDING ARTICLE 4. DEVELOPMENT REVIEW AND OTHER PROCEDURES, GENERAL PROCEDURES DIVISION; BY AMENDING APPENDIX B. US 19 ZONING DISTRICT AND DEVELOPMENT STANDARDS, GENERAL PROVISIONS, SUBDISTRICT STANDARDS, SITE DESIGN STANDARDS, BUILDING DESIGN STANDARDS, AND ADMINISTRATION DIVISIONS; BY AMENDING APPENDIX C. DOWNTOWN DISTRICT AND DEVELOPMENT STANDARDS, CHARACTER DISTRICT STANDARDS, FRONTAGE STANDARDS, SITE DESIGN STANDARDS, BUILDING DESIGN STANDARDS, FLEXIBILITY, AND ADMINISTRATION DIVISIONS; CERTIFYING CONSISTENCY WITH THE CITY’S COMPREHENSIVE PLAN AND PROPER ADVERTISEMENT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Clearwater (“the City”) adopted the Community Development Code on January 21, 1999, which took effect on March 8, 1999; and WHEREAS, the City desires for the Community Development Code to function effectively and equitably throughout the City; and WHEREAS, on April 4, 2023, the City adopted Ordinance No. 9643-23 amending the Community Development Code, making a variety of changes where it had determined clarification and revision were needed, including the addition of new requirements in Article 3. Division 14. Parking and Loading; Article 4. Division 2. General Procedures; Appendix B. Division 1. General Provisions, Division 3. Subdistrict Standards, Division 5. Site Design Standards, Division 6. Building Design Standards, and Division 8. Administration; and Appendix C. Division 3. Character District Standards, Division 4. Frontage Standards, Division 5. Site Design Standards, Division 6. Building Design Standards, Division 8. Flexibility, and Division 9. Administration; and WHEREAS, on June 28, 2023, the Governor of Florida signed Senate Bill 250 (“SB 250”): Natural Emergencies in which Bill Section 14 placed certain restrictions on municipalities entirely or partially within 100 miles of where either Hurricanes Ian or Nicole made landfall; and WHEREAS, SB 250 established that municipalities may not “propose or adopt more restrictive or burdensome amendments to their comprehensive plan or land development regulations” prior to October 1, 2024, declaring that any such amendment “shall be null and void ab initio” and the provision applies retroactively to September 28, 2022; and WHEREAS, the City adopted Ordinance No. 9712-23, which rescinded portions of Ordinance No. 9643-23 which were determined to be “more restrictive or burdensome” and therefore null and void ab initio pursuant to SB 250; and WHEREAS, on November 13, 2023, the Governor of Florida signed House Bill 1-C (“HB 1-C”): Disaster Relief in which Bill Section 14 amended the language of certain restrictions from within 100 miles of where either Hurricanes Ian or Nicole made landfall to certain specific counties, which removed those restrictions from the City of Clearwater; and     2 Ordinance No. 9740-24   WHEREAS, to ensure transparency with the public and proper processing, a new ordinance reestablishing the previously approved changes which are null and void ab initio is advised; and WHEREAS, the City has determined that these amendments to the Community Development Code promote and support the public health, safety, morals, and welfare, of the City's residents; and WHEREAS, at a duly noticed public meeting the Clearwater Community Development Board, pursuant to its responsibilities as the Local Planning Agency, has reviewed these amendments, conducted a public hearing, considered all public testimony and has determined that these amendments are consistent with the City of Clearwater’s Comprehensive Plan and recommended that the City Council adopt these amendments; and WHEREAS, the City Council has fully considered the recommendation of the Community Development Board and testimony and evidence submitted at its public hearing; now therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. That Article 3. Development Standards, Division 14. Parking and Loading, be amended to read as follows: Section 3-1407. – Parking restrictions in residential areas.   A. Restrictions. For the dual purpose of preserving attractive residential areas within the city and promoting safe unimpeded traffic circulation throughout such neighborhoods, the following parking restrictions shall apply except as provided in paragraph B of this section: 1. Within street right-of-way. The following vehicles shall not be parked or stored on any public right-of-way in a residential zoning district, residentially designated downtown property, or on any right-of-way contiguous to such properties a residentially zoned property: a. Any boat or boat trailer; b. Any hauling trailer; c. Any of the following recreational vehicles: travel trailers, motor homes and camping trailers; d. Any commercial vehicle. e. Any race car, dune buggy, farm equipment, go kart, ATV, or other similar vehicle not designated for street operation. 2. Between principal structure and right-of-way. The following vehicles shall not be parked or stored, in whole or in part, in a front setback and/or forward of the building line of the principal structure and any right-of-way line in a residential zoning district or on a residentially designated downtown property up to a maximum of two frontages: a. Boat in excess of 20 feet; b. Any boat trailer in excess of 25 feet total length or in excess of five feet longer than any boat occupying the trailer; c. Hauling trailer; d. Recreational vehicles, travel trailers, motor homes and camping trailers.     3 Ordinance No. 9740-24   e. Any commercial vehicle which measures in excess of 20 feet in total chassis and body length, seven feet in total width or seven feet in total height, including appurtenances, equipment and cargo. f. Any race car, dune buggy, farm equipment, go kart, ATV, or other similar vehicle not designated for street operation. 3. Parking in the side or rear setback. The following vehicles may be parked or stored, in whole or in part, in a side or rear setback behind the front building line of the principal structure in a residential zoning district or on a residentially designated downtown property provided such vehicles are screened with a six-foot high solid fence, wall or hedge: a. Boat in excess of 20 feet; b. Boat trailer in excess of 25 feet; c. Hauling trailer; d. Recreation vehicles, trailers, motor homes and camping trailers; and e. Any race car, dune buggy, farm equipment, go kart, ATV, or other similar vehicle not designated for street operation. 4. Large vehicles. The following vehicles shall not be parked or stored in any residential zoning districts or on any residentially designated downtown property: a. Commercial vehicles measuring in excess of 20 feet in total chassis and body length, seven feet in total width or seven feet in total height, including appurtenances, equipment and cargo are prohibited; and b. Semi-tractor trailer, semi-tractor cab or any garbage truck, pump-out truck, chemical truck, gasoline truck, fuel oil truck or similar vehicle designed to transport wastes or hazardous or noxious materials. * * * * * * * * * * Section 3-1408. - Parking restrictions in commercial nonresidential areas. A. Commercial trucks, semi-tractor trailers, cabs and other commercial vehicles shall be permitted to be parked or stored on commercial property only if such vehicles are associated with the property on which they are located. B. Boats or boat trailers, hauling trailers, and recreational vehicles shall not be parked or stored on any public right-of-way in nonresidential areas. Section 2. That Article 4. Development Review and Other Procedures, Division 2. General Procedures, Section 4-201. Optional pre-application conference, be renamed and amended to read as follows: Section 4-201. – Optional Ppre-application conference. A. Applicants for a proposed development in the US 19 or Downtown zoning districts shall have a pre-application conference with the Community Development Coordinator or his/her designee prior to development application, unless otherwise waived by the Community Development Coordinator, to review the preliminary site plan, building elevations, and other materials required by the Community Development Coordinator. Those development projects that are exempt from the US 19 Zoning District and Development Standards pursuant to Section B-104.C or the Downtown District and Development Standards pursuant to Section C-104.B shall be exempt from this requirement.     4 Ordinance No. 9740-24   B. Projects in all other zoning districts. An applicant for development approval may request an informal conference with the community development coordinator prior to filing an application for the purpose of discussing the proposed development and to identify the views and concerns of the applicant and the city's professional staff. Section 3. That Appendix B. US 19 Zoning District and Development Standards, Division 1. General Provisions, Section B-104. Applicability of Development Standards, be amended to read as follows: Section B-104. – Applicability of Development Standards. * * * * * * * * * * C. Exemptions The following types of development are exempt from all or a portion of the Development Standards as follows. * * * * * * * * * * 5. Change of Use. Projects involving only a change in use are exempt from the Development Standards in Appendix B, Divisions 4, 5 and 6, but shall comply with the bicycle parking standards in Section B-303.D when the change of use results in an increase in the minimum number of bicycle parking spaces required. When applicable, this shall only apply to the increase in bicycle parking required for the new use. 6. Improvement, Remodel, or Reconstruction. Building improvement and remodel projects, including reconstruction of buildings in the general location or footprint of buildings being replaced, with up to 5 percent additional gross floor area, shall be exempt from the Development Standards as follows. a.  Building improvement, remodel, or reconstruction projects valued at less than 25 percent of the total assessed building value as reflected in the Property Appraiser’s current records at the time of application are exempt from the Development Standards in Appendix B, Divisions 4, 5 and 6, except that the location of any new floor area, including accessory structures, shall be compliant with the setback requirements in Division 4 of these standards to the greatest extent practicable as determined by the Community Development Coordinator, and bicycle parking shall be provided for any new floor area consistent with the bicycle standards in Section B- 303.D.  b. Building improvement, remodel, or reconstruction projects valued at 25 percent or more of the total assessed building value as reflected in the Property Appraiser’s current records at the time of application, are exempt from all but the pedestrian walkway standards in B-503.C, the surface parking and service area standards in B- 504.A.1, the bicycle parking standards in B-504.C, and the landscape requirements in B-505.A of these standards, which shall be brought into compliance to the greatest extent practicable as determined by the Community Development Coordinator. Additionally, the location of any new floor area, including accessory structures, shall be compliant with the setback requirements in Division 4 of these standards to the greatest extent practicable as determined by the Community Development Coordinator, and bicycle parking shall be provided for any new floor area consistent with the bicycle standards in Section B-303.D. Landscape requirements in B.504.A.1 and B.505.A may be modified as part of a comprehensive landscape program pursuant to the criteria set forth in Section 3-1202.G.     5 Ordinance No. 9740-24   * * * * * * * * * * Section 4. That Appendix B. US 19 Zoning District and Development Standards, Division 3. Subdistrict Standards, be amended to read as follows: Section B-303. – Permitted Uses & Parking   A. Use & Off-Street Parking Table Permitted uses and approval levels by Subdistricts, along with off-street parking requirements, are listed in Table 2. Use & Off-Street Parking. Active uses are required at identified key corners, as defined in Section B-303.B. Pursuant to Section B-801, new construction projects on sites of 10 acres or more shall require at a minimum a Level One (flexible standard development) approval unless the proposed use or proposal otherwise requires a Level Two (flexible development) approval. Table 2. Use and Off-Street Parking Use Regional Neighborhood Corridor Use Specific Standards Minimum Off- Street Parking Spaces * * * * * * * * * * Footnotes: 1. The parcel proposed for development is not contiguous to a parcel of land which is designated as residential in the Zoning Atlas. 2. The parcel proposed for development is not located within 500 feet of a parcel of land used for purposes of a place of worship or a public or private school unless the intervening land uses, structures or context are such that the location of the use is unlikely to have an adverse impact on such school or use as a place of worship. Key:  BCP = Level 1 Minimum Standard (Building Construction Permit).  FLS = Level 1 Flexible Standard Development (Community Development Coordinator approval required).  FLD = Level 2 Flexible Development (Community Development Board approval required).  X = Not Permitted New construction projects on sites of 10 acres or more shall require, at a minimum, a Level One (flexible standard development) approval unless the proposed use or proposal otherwise requires a Level Two (flexible development) approval. * * * * * * * * * * D. Bicycle Parking 1. Short-term and long-term bicycle parking requirements are listed in Table 4. Bicycle Parking. Table 4. Bicycle Parking Use Short Term Spaces Long Term Spaces Attached Dwellings (1 – 100 units) 2 min., or 1 space per 10 units 1 per 2 dwelling units. Units with private garage or private storage space are exempt. Attached Dwellings (101+ units) 1 space per 20 units 1 per 4 dwelling units. Units with private garage or private storage space are exempt. Bars, Brewpubs, Restaurants 2 min., or 1 per 5,000 SF GFA None     6 Ordinance No. 9740-24   Offices 2 min., or 1 per 10,000 SF GFA 2 min., or 1 per 10,000 SF GFA Parking Garages 6 min., or 1 per 20 vehicle parking spaces, whichever is greater None Public Transportation Facilities 10 min., or 1 per 5,000 SF GFA 4 min., or 1 per 10,000 SF GFA Retail Sales and Services, Retail Plazas, Alcoholic Beverage Sales 2 min., or 1 per 5,000 SF GFA None All Other Nonresidential Uses 2 min., or 1 per 10,000 SF GFA None 2. All short-term bicycle parking areas shall be in highly visible locations along pedestrian walkways and near building entries. 3. All bicycle parking provided shall comply with the bicycle parking standards in Section 3-1411 of this Development Code. Section 5. That Appendix B. US 19 Zoning District and Development Standards, Division 5. Site Design Standards, Section B-503. Access and circulation, be amended to read as follows: Section B-503. – Access and circulation. * * * * * * * * * * D. Cross Parcel Connections To facilitate circulation and improve accessibility, vehicle and pedestrian facilities on adjacent sites shall be interconnected. Existing and planned parking lot drive aisles and pedestrian walkways shall be aligned and connected with abutting sites. In cases where no connection exists on an abutting developed site, and drive aisle and pedestrian walkway stub outs shall be constructed on properties abutting undeveloped sites to allow for future connections. Section 6. That Appendix B. US 19 Zoning District and Development Standards, Division 6. Building Design Standards, be amended to read as follows: * * * * * * * * * * Section B-602. – Façade treatment and design. * * * * * * * * * * B. Limited Blank Facades Blank sections of ground floor building façades fronting or within view of streets, pedestrian walkways, or other and public spaces shall not exceed 20 feet in length. Elements such as windows, doors, balconies, columns, pilasters, changes in material, or other architectural details that provide visual interest shall be distributed across the façade in a manner consistent with the overall design of the building. * * * * * * * * * * E. Upper Floor Facade Articulation and Fenestration * * * * * * * * * *     7 Ordinance No. 9740-24   3. To minimize blank façade areas along street frontages, façades fronting streets and new primary drives shall provide fenestration (doors, windows or other openings) to an extent of a minimum of 20 percent of each floor's façade area as measured between finished floor and finished ceiling. * * * * * * * * * * Section 7. That Appendix B. US 19 Zoning District and Development Standards, Division 8. Administration, Section B-801. Site plan approvals, be amended to read as follows: Section B-801. – Site plan approvals. A. Required Pre-Application Conference A pre-application conference shall be required for all development applications within the US 19 District unless the development is exempt from the Development Standards pursuant to Section B-104.C or this requirement is otherwise waived by the Community Development Coordinator. B. Approval Authority The final decision-making authority for site plans is either the Community Development Coordinator for Level One approvals or the Community Development Board for Level Two approvals, as specified in Article 4. The level of approval required varies by use and subdistrict as specified in Table 2. Use & Off-Street Parking, which identifies whether a use can be approved as a Building Construction Permit (Level 1 Minimum Standard), or if Community Development Coordinator (Level One Flexible Standard Development) or Community Development Board (Level Two Flexible Development) approval is required. Projects on sites of 10 acres or more shall require at a minimum a Level One (flexible standard development) approval. Projects requesting flexibility in the application of Design Standards shall follow the process established in Section B-702. Section 8. That Appendix C. Downtown District and Development Standards, Division 3. Character District Standards, Table 1. Use and Off-Street Parking be amended to read as follows: * * * * * * * * * * Table 1. Use and Off-Street Parking Use Downtown Core Old Bay South Gateway Prospect Lake Downtown Gateway Use Specific Criteria Minimum Off-Street Parking Spaces * * * * * * * * * * NONRESIDENTIAL USES * * * * * * * * * * Overnight Accommodations (Hotel) BCP BCP X BCP BCP None 0.75/unit * * * * * * * * * * Self Storage Warehouses FLS X FLS FLS FLS 1. The use shall be secondary to and shall not exceed 25 percent of the gross floor area of the building in which it is located another principal use. N/A     8 Ordinance No. 9740-24   Table 1. Use and Off-Street Parking Use Downtown Core Old Bay South Gateway Prospect Lake Downtown Gateway Use Specific Criteria Minimum Off-Street Parking Spaces 2. Leasing office and other non-storage customer service areas shall be incorporated into the building frontage along the primary street. 3. Outdoor storage of any kind shall be prohibited. 4. Access to individual storage spaces shall be provided from within the building. 45. All loading areas, including bays and loading zones used for the placement of personal products onto, or removal from, a transportation vehicle shall be provided along the interior side or rear of the building and screened from view. * * * * * * * * * * * * * * * * * * * * Section 9. That Appendix C. Downtown District and Development Standards, Division 4. Frontage Standards, be amended to read as follows: * * * * * * * * * * Section C-405. – Storefront 2 frontage. * * * * * * * * * * C. Front Setback Improvements. 1. Where front setbacks are provided, the area within the setback shall be improved primarily as a hardscape extension of the public streetscape with no change in elevation from adjacent sidewalks. 2. Landscape areas may account for 35 percent maximum of the front setback area. Such landscaping shall comply with landscape requirements in Section 3-1202. 3. Low curbing up to six inches in height may be used to define the edge of landscape areas but no permanent physical obstructions such as walls, railing, or fencing are permitted. * * * * * * * * * * Section C-406. – Workshop/flex frontage. * * * * * * * * * *     9 Ordinance No. 9740-24   C. Front Setback Improvements. 1. The front setback area shall be improved as a landscape area with walkway connections between sidewalks and front building entries. Low curbing up to six inches in height may be used to define the edge of landscape areas but no permanent physical obstructions such as walls, railings, or fencing are permitted between the street and front building façade. * * * * * * * * * * Section 10. That Appendix C. Downtown District and Development Standards, Division 5. Site Design Standards, be amended to read as follows: * * * * * * * * * * Section C-503. – Access and circulation. * * * * * * * * * * D. Cross Parcel Connections. To facilitate circulation and improve accessibility, vehicle and pedestrian facilities on adjacent sites shall be interconnected, except for detached dwellings and duplexes on interior lots along Street Type F. Parking Existing and planned parking lot drive aisles, private drives, private service drives, and pedestrian walkways shall be aligned and connected with abutting sites. In cases where no connection exists on an abutting developed site, and drive aisle and pedestrian walkway stub outs shall be constructed on properties abutting undeveloped sites to allow for future connections. * * * * * * * * * * Section C-510. – Swimming Pools. Swimming pools for all attached dwellings except duplexes, shall be located on the roof of the building or internal to the development site as a courtyard pool, surrounded on all four sides by building(s), and not along street frontages as illustrated in Figure 31. Swimming pools for detached dwellings and duplexes shall comply with the accessory structure provisions in Article 3, Division 2 of this code.     10 Ordinance No. 9740-24   Figure 31. Swimming Pools (Insert two new images for Figure 31 and renumber subsequent Figures accordingly)        Rooftop Swimming Pool Courtyard Swimming Pool * * * * * * * * * * Section 11. That Appendix C. Downtown District and Development Standards, Division 6. Building Design Standards, be amended to read as follows: * * * * * * * * * * Section C-602. – Façade treatment and design. * * * * * * * * * * C. Facade Materials All building facades within view of a public street, pedestrian walkway, waterfront, or other public space, including side and rear facades, shall be constructed of high quality materials such as brick, stone, architectural block, concrete with an architectural finish, and traditional cementitious stucco. Side and rear facades shall use materials and design features similar to or complementary to those of the front facade. The use of metal facades shall not be permitted. D. Upper Floor Façade Fenestration. To minimize blank façade areas along street frontages, façades fronting streets and new primary drives shall provide fenestration (doors, windows or other openings) to an extent of a minimum of 20 percent of each floor's façade area as measured between finished floor and finished ceiling. *** RELETTER REMAINING SUBSECTIONS, PENDING APPROVAL OF NEW D. ABOVE *** * * * * * * * * * *     11 Ordinance No. 9740-24   Section 12. That Appendix C. Downtown District and Development Standards, Division 8. Flexibility, be amended to read as follows: * * * * * * * * * * Section C-803. – Flexibility provisions. Flexibility may be approved subject to the standards below. K. Site Design Standards – Swimming Pools. Flexibility in the application of swimming pool requirements in Section C-510 may be approved consistent with one of the following. 1. For buildings at corner locations, flexibility may be approved to allow at-grade swimming pools within in a courtyard of a “U”-shaped or “L”-shaped building along a secondary street frontage. Where flexibility in this standard is allowed, non-opaque or picket-style fencing may be permitted to a maximum height of 6 feet in line with or setback from the front building façade. 2. For buildings on Through-Lots or Multi-Frontage Lots, flexibility may be approved to allow at-grade swimming pools within a courtyard of a “U”-shaped building along Street Type D. Where flexibility in this standard is allowed, non-opaque or picket-style fencing may be permitted to a maximum height of 6 feet in line with or setback from the front building façade. *** RELETTER REMAINING SUBSECTIONS, PENDING APPROVAL OF NEW K. ABOVE *** * * * * * * * * * * Section 13. That Appendix C. Downtown District and Development Standards, Division 9. Administration, be amended to read as follows: Section C-901. – Site plan approvals. A. Required Pre-Application Conference A pre-application conference shall be required for all development applications within the Downtown District unless the development is exempt from the Development Standards pursuant to Section C-104.B or this requirement is otherwise waived by the Community Development Coordinator. B. Approval Authority The final decision-making authority for site plans is either the Community Development Coordinator for Level One approvals or the Community Development Board for Level Two approvals, as specified in Article 4. The level of approval required varies by use and character district as specified in Table 1. Use & Off-Street Parking, which identifies whether a use can be approved as a Building Construction Permit (Level 1 Minimum Standard), or if Community Development Coordinator (Level 1 Flexible Standard Development) or Community Development Board (Level 2 Flexible Development) approval is required. Projects requesting flexibility in the application of development standards shall follow the process established in Appendix C, Section C-802. * * * * * * * * * * Section C-903. – Regulating plan adjustments. * * * * * * * * * *     12 Ordinance No. 9740-24   B. Street Type on Existing or New Public Streets. Upon approval of a development project which includes new streets or existing public streets where a street type was not previously depicted in Figure 2. Regulating Plan–Street Types and Key Corners, the Community Development Coordinator will make an administrative adjustment to Figure 2. Regulating Plan–Street Types and Key Corners to reflect the approved street type(s). Section 14. Amendments to the Community Development Code of the City of Clearwater (as originally adopted by Ordinance No. 6348-99 and subsequently amended) are hereby adopted to read as set forth in this Ordinance. Section 15. The City of Clearwater does hereby certify that the amendments contained herein, as well as the provisions of this Ordinance, are consistent with and in conformance with the City’s Comprehensive Plan. Section 16. Should any part or provision of this Ordinance be declared by a court of competent jurisdiction to be invalid, the same shall not affect the validity of the Ordinance as a whole, or any part thereof other than the part declared to be invalid. Section 17. Notice of the proposed enactment of this Ordinance has been properly advertised in a newspaper of general circulation in accordance with applicable law. Section 18. This Ordinance shall take effect immediately upon adoption. PASSED ON FIRST READING  ____________________________ PASSED ON SECOND AND FINAL  ____________________________ READING AND ADOPTED      ____________________________ Brian J. Aungst, Sr. Mayor Approved as to form:     Attest: ____________________________    ____________________________ Matthew J. Mytych, Esq.    Rosemarie Call, MPA, MMC Senior Assistant City Attorney     City Clerk   PLANNING & DEVELOPMENT DEPARTMENT   COMMUNITY DEVELOPMENT BOARD STAFF REPORT    MEETING DATE: January 18, 2024  AGENDA ITEM: E.1  CASE: TA2023‐11004  ORDINANCE NO.: 9740‐24  REQUEST: Recommendation to City Council to approve amendments to the  Community Development Code reestablishing certain provisions  that were rescinded pursuant to Senate Bill 250 (2023) through  Ordinance No. 9712‐23 and are permitted to be reestablished with  the approval of House Bill 1‐C (2023) on November 13, 2023.  INITIATED BY: City of Clearwater, Planning and Development Department    BACKGROUND    City Council approved Ordinance No. 9712‐23 on November 2, 2023, which rescinded certain amendments  to the Community Development Code (CDC) that were determined to be null and void ab initio pursuant to  Senate Bill 250 (herein after SB 250). The Governor signed SB 250 into law on June 28, 2023.   In early November 2023, the Florida Legislature held a special session in which House Bill 1‐C (herein after  HB 1‐C), was presented. HB 1‐C amended portions of the previously approved SB 250, which pertains to  natural emergencies. SB 250, Section 14 placed certain restrictions on municipalities entirely or partially  within 100 miles of where either Hurricanes Ian or Nicole made landfall. HB 1‐C amended that section from  the 100‐mile distance of landfall to certain specific counties, of which Pinellas County was not included. As  such, the city of Clearwater is no longer within the area for which these restrictions apply.          Planning & Development Department Community Development Code Text Amendment Long Range Planning Division Community Development Board – January 18, 2024  TA2023‐11004 – Page 2  AMENDMENT PROPOSAL  Proposed Ordinance No. 9740‐24 reestablishes certain amendments, reverting to the codified language that  existed prior to November 2, 2023 (i.e., when Ordinance No. 9712‐23 was adopted). Generally, the provisions  being reestablished in this Ordinance are:  1. New standards for the US 19 and Downtown Districts (e.g., new long‐term bike parking requirements  in US 19 District; new swimming pool standards in Downtown District; upper‐story fenestration;  criteria for self storage warehouses).  2. Changes  to  processes  (e.g.,  mandatory  pre‐application  meeting  for projects in the US 19 or  Downtown Districts; Development Review Committee (DRC) review for properties 10+ acres in the  US 19 District).  3. New restrictions of the use of property or the city’s right‐of‐way (e.g., application of residential  parking restrictions to residentially designated downtown property; prohibiting parking of certain  vehicles or trailers in the right‐of‐way in commercial areas).   ANALYSIS    CDC  Section  4‐601  sets  forth  the  procedures  and  criteria  for  reviewing  text  amendments.    All  text  amendments must comply with the following:  1. The proposed amendment is consistent with and furthers the goals, policies, and objectives of the  Comprehensive Plan.   Proposed Ordinance No. 9740‐24 is consistent with the Clearwater Comprehensive Plan as it is reverting  certain provisions and standards in the Community Development Code back to an earlier version that  had previously been determined to be consistent with the city’s Comprehensive Plan.     2. The proposed amendments further the purposes of the Community Development Code and other City  ordinances and actions designed to implement the Plan.  Similarly, the proposed text amendment will further the purposes of the CDC. Although the city chose to  amend the CDC earlier this year, the previous language was originally adopted and determined to meet  these same review criteria.         Planning & Development Department Community Development Code Text Amendment Long Range Planning Division Community Development Board – January 18, 2024  TA2023‐11004 – Page 3  RECOMMENDATION  The Development Review Committee (DRC) reviewed the proposed text amendments to the Community  Development Code at the DRC meeting of January 4, 2024. The Planning and Development Department,  having  reviewed  the  requirements  of  the  Community  Development  Code,  recommends APPROVAL of  Ordinance No. 9740‐24.           Prepared by Planning and Development Department Staff:     ___________________________  Kyle Brotherton  Senior Planner    ATTACHMENTS: Ordinance No. 9740‐24                Resume  Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: 9741-24 2nd rdg Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: OrdinanceIn Control: City Attorney Agenda Number: 7.9 SUBJECT/RECOMMENDATION: Adopt Ordinance 9741-24 on second reading, amending Code of Ordinances Chapter 33, Waterways and Vessels by amending Article I - In General, Article II - City Owned Docking Facilities, and Article III - Vessels, to clarify, revise and modify existing articles and sections; amending Section 33.026 establishing a civil penalty for unpermitted commercial activity in a city owned marine facility and establishing citation procedures. Page 1 City of Clearwater Printed on 1/23/2024 1 Business Impact Estimate Proposed ordinance’s title/reference: AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA MAKING AMENDMENTS TO CHAPTER 33 WATERWAYS AND VESSELS, BY AMENDING ARTICLE I- IN GENERAL, ARTICLE II - CITY OWNED DOCKING FACILITIES, AND ARTICLE III - VESSELS TO CLARIFY, REVISE AND MODIFY EXISTING ARTICLES AND SECTIONS; AMENDING SECTION 33.026 ESTABLISHING A CIVIL PENALTY FOR UNPERMITTED COMMERCIAL ACTIVITY IN A CITY OWNED MARINE FACILTY AND ESTABLISHING CITATION PROCEDURES; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. This Business Impact Estimate is provided in accordance with section 166.041(4), Florida Statutes. If one or more boxes are checked below, this means the City of Clearwater is of the view that a business impact estimate is not required by state law1 for the proposed ordinance, but the City of Clearwater is, nevertheless, providing this Business Impact Estimate as a courtesy and to avoid any procedural issues that could impact the enactment of the proposed ordinance. This Business Impact Estimate may be revised following its initial posting. ☐ The proposed ordinance is required for compliance with Federal or State law or regulation; ☐ The proposed ordinance relates to the issuance or refinancing of debt; ☐ The proposed ordinance relates to the adoption of budgets or budget amendments, including revenue sources necessary to fund the budget; ☐ The proposed ordinance is required to implement a contract or an agreement, including, but not limited to, any Federal, State, local, or private grant or other financial assistance accepted by the municipal government; ☐ The proposed ordinance is an emergency ordinance; ☐ The ordinance relates to procurement; or ☐ The proposed ordinance is enacted to implement the following: a. Part II of Chapter 163, Florida Statutes, relating to growth policy, county and municipal planning, and land development regulation, including zoning, development orders, development agreements and development permits; b. Sections 190.005 and 190.046, Florida Statutes, regarding community development districts; c. Section 553.73, Florida Statutes, relating to the Florida Building Code; or d. Section 633.202, Florida Statutes, relating to the Florida Fire Prevention Code. In accordance with the provisions of controlling law, the City of Clearwater hereby publishes the following information: 1 See Section 166.041(4)(c), Florida Statutes. 2 1. Summary of the proposed ordinance (must include a statement of the public purpose, such as serving the public health, safety, morals and welfare): Chapter 33 Waterways and Vessels sets forth the rules and use regulations that govern all City of Clearwater waterways, the conduct of all persons using such waterways and city owned marine facilities. These Articles have not been amended or updated since 2010. This Ordinance is needed to clarify, modify, and revise use regulations for the marine facilities and the conduct that occurs at the facilities. the City has determined that these amendments to the Code of Ordinances promote and support the safety and welfare of the City's residents, users of the City’s marine facilities, as well as the business interest of the City which runs some of the facilities as a for-profit business. 2. An estimate of the direct economic impact of the proposed ordinance on private, for- profit businesses in the City of Clearwater, if any: (a) An estimate of direct compliance costs that businesses may reasonably incur; The only increase cost to business may be a civil citation to the unpermitted businesses running in the Marine Facilities or a late fee that may be given to a lessee that doesn’t pay their contracted fees timely. (b) Any new charge or fee imposed by the proposed ordinance or for which businesses will be financially responsible; and There will be late fees that will be assessed to lessees in accordance with the contract terms they have agreed to with the City. Also, the fine for unpermitted commercial business to operate in a City-owned Marine Facility is $180. (c) An estimate of the [City’s/Town’s/Village’s] regulatory costs, including estimated revenues from any new charges or fees to cover such costs. The Marine staff and Police officers already manage or patrol these areas and there should be no additional cost to any enforcement of the amendments or new civil citation. 3. Good faith estimate of the number of businesses likely to be impacted by the proposed ordinance: 80 businesses could be impacted – 51 commercial operators that are subject to late charges, and about 30 illegal charters operating at our marine facilities. 3 4. Additional information the governing body deems useful (if any): N/A 1 ORDINANCE NO. 9741-24 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA MAKING AMENDMENTS TO CHAPTER 33 WATERWAYS AND VESSELS, BY AMENDING ARTICLE I- IN GENERAL, ARTICLE II - CITY OWNED DOCKING FACILITIES, AND ARTICLE III - VESSELS TO CLARIFY, REVISE AND MODIFY EXISTING ARTICLES AND SECTIONS; AMENDING SECTION 33.026 ESTABLISHING A CIVIL PENALTY FOR UNPERMITTED COMMERCIAL ACTIVITY IN A CITY OWNED MARINE FACILITY AND ESTABLISHING CITATION PROCEDURES; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Chapter 33 sets forth the rules and use regulations that govern activities on all waterways and city-owned marine facilities in the City of Clearwater (“City”); WHEREAS, this Chapter 33 has not been amended or updated since 2010; WHEREAS, this Ordinance is necessary to clarify, revise, and modify use regulations for the City waterways and the City owned marine facilities; WHEREAS, the City Council determines that the adoption of this Ordinance to be in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA, THAT: Section 1: Section 33.002 is amended as follows: Sec. 33.002. - Definitions. The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: City council means the City Council of the City of Clearwater, Florida Commercial vessel means: (a) Any vessel primarily engaged in the taking or landing of saltwater fish or saltwater products or freshwater fish or freshwater products, or any vessel licensed pursuant to Florida Statutes from which commercial quantities of saltwater products are harvested, from within and without the navigable waters for sale either to the consumer, retail dealer, or wholesale dealer. Any vessel that takes passengers for hire, fee, or consideration, including commercial fishing vessels engaged in the taking or landing of saltwater fish or saltwater products. (b) Any other vessel, except a recreational vessel as defined in this section. A vessel used as a place of business or for-profit enterprise to include but not limited to: charters, bareboat charters, sight-seeing tours, dinner cruises, AirBnB and the like. (c) Any advertisement or insured as charter or certification for commercial purposes will be prima face evidence of commercial activity. 2 Derelict vessel means any vessel that is left, stored, or abandoned: (a) In a wrecked, junked, or substantially dismantled condition upon any navigable waters within the city; (b) At any port or mooring facility in this city without the consent of the agency having jurisdiction thereof; or (c) Docked, grounded at, or beached upon the property of another without the consent of the owner of the property. Direct sewage pump-out connection means a connection between a vessel and the city sewer system for the purpose of removing sewage from the holding tank or head on a vessel. Disabled, as used to describe a vessel, means that the vessel is unable to move under its own mechanical power or sail because of a mechanical failure or emergency. Discharge means but is not limited to any spilling, leaking, pumping, pouring, emitting, emptying, or dumping. Dock means as defined by section 8-102 of the Clearwater Community Development Code an accessory structure, not offered for sale or rental, including a pier, wharf, loading platform, tie poles, dolphins, accessory structures, or boat lift which is constructed on pilings over open water, or which is supported by flotation. Harbormaster means the harbormaster of the city, or the harbormaster's designee or duly appointed substitute or deputy. Hazardous chemicals or substances means the term as defined by state and federal law or regulations. Holding tank means a receptacle on a vessel which is used to contain sewage. Length means the measurement from end to end over the deck parallel to the centerline excluding sheer. Live-aboard vessel means: (a) Any vessel used solely as a residence and not for navigation; (b) Any vessel represented as a place of business, or a professional or other commercial enterprise; however, a commercial fishing boat is expressly excluded from the term "live- aboard vessel;" or (c) Any vessel for which a declaration of domicile has been filed pursuant to Florida Statutes (d) A vessel used as a residence that does not have an effective means of propulsion for safe navigation City- Owned Marina facilities means as defined by section 8-102 of the Clearwater Community Development Code. City of Clearwater owned marinas, docks, piers, boat ramps, boat launches, as well as the seawalls, bulkheads and upland property and structures that support them. 3 Marine sanitation device means equipment other than a toilet, for installation on board a vessel, which is designed to receive, retain, treat, or discharge sewage, and any process to treat such sewage. Mooring means the act of docking, anchoring, intentional grounding, or otherwise securing a vessel such that any portion of the vessel is in the water. Motorboat means any vessel equipped with machinery for propulsion, irrespective of whether the propulsion machinery is in actual operation. Navigable waters means all portions of those waters, up to and including the mean high-water mark, located within the corporate limits of the city, which are of such size and so situated as may be used for purposes common or useful to the public, and shall include all waterways or portions of waterways which are susceptible to being used in their natural and ordinary condition as a highway for commerce, over which trade and travel are or may be conducted in the customary modes of trade and travel on water. This definition shall not apply to landlocked inland waters to which the general public does not have access or the right of use. Operate means to be in charge of or in command of or in actual physical control of a vessel upon the navigable waters, or to exercise control over or to have responsibility for a vessel's navigation or safety while the vessel is underway upon the navigable waters, or to control or steer a vessel being towed by another vessel upon the navigable waters. Owner means a person, other than a lienholder, having the property in or title to a vessel. The term includes a person entitled to the use or possession of a vessel subject to an interest in another person, reserved or created by agreement and securing payment of performance of an obligation, but the term excludes a lessee under a lease not intended as security. Person means an individual, partnership, corporation, or other legal entity. As used in this chapter, the term includes but is not limited to any owner, master, officer, or employee of any vessel. Personal watercraft means a vessel less than 16 feet in length which uses an inboard motor powering a water jet pump, as its primary source of motive power and which is designed to be operated by a person sitting, standing, or kneeling on the vessel, rather than in the conventional manner of sitting or standing inside the vessel. Petroleum products means oil, gasoline, diesel fuel, petroleum or chemical compositions of any kind which contain petroleum in any form, including fuel oil, oil sludge, oil or fuel residue, and oil refuse. Recreational vessel means any vessel: used for a noncommercial purposes. (a) Manufactured and used primarily for noncommercial purposes; or (b) Leased, rented, or chartered to a person for the person's noncommercial use. Sewage means human body wastes and the contents and wastes from toilets, marine sanitation devices, and other receptacles designed, intended, or used to receive or retain human body wastes. 4 Sewage pump-out station means a system consisting of a pump, with or without a tank, with sewer transfer lines having an approved connection to the city sewer system, which can be temporarily connected to a vessel for the purpose of removing sewage from the vessel's holding tank or head. Any such system may be either fixed or portable. Vessel is synonymous with boat as referenced in s. 1(b), Art. VII of the State Constitution and includes every description of watercraft, barge, and airboat, other than a seaplane on the water, used or capable of being used as a means of transportation on water. ***** Section 2: Section 33.006 is amended as follows: Sec. 33.006. Clearwater Marina building leases. The city manager is authorized to approve and execute on behalf of the city all Clearwater Marina building leases, except as provided herein, subject to the following conditions and limitations; (1) Term. The maximum term of any lease shall be three years, with an additional two- year option, giving a five year total term if approved by the city manager. (2) Rental rates. Rental rates shall be generally consistent with the rates for commercial space on Clearwater Beach, and with the rates historically earned by spaces in the marina. Rental rates may include a flat rate, a percentage of gross revenues, or a combination thereof. The rental of a space for a flat rate or a percentage of gross revenues, or combination thereof, less than 100 percent of that paid by the prior lessee shall require the approval of the city council. (3) Rental payments; deposits. Each lease shall provide that rent shall be paid on the first day of each month and shall be delinquent if not paid on or before the fifth day of the month. Delinquent payments shall bear interest at a rate determined by the city manager, plus a late charge of $10.00 as designated in the agreement between the City and the lessee. At the commencement of each lease, the lessee shall pay the first month's rent and a security deposit in an amount equal to one month's rent to secure the faithful performance of the lessee's obligations, which deposit may be used to pay for damage to the premises or any other lawful purpose. At the end of the term of the lease, the deposit amount or balance thereof, if any, shall be credited to the lessee's last monthly rental payment. The lessee shall not be entitled to interest earned on the deposit. (4) Use of premises. The premises shall be used only for lawful and proper purposes, and the purposes shall be specified in the lease agreement. (5) Assignment. The lessee shall not assign, sublease, mortgage, pledge, or hypothecate the premises, the lease agreement, or any rights thereunder without the prior written consent of the city manager. (6) Taxes and utility services. The lessee shall promptly pay all taxes levied against the premises or the leasehold interest therein, and all charges for utility services, including but not limited to electricity, water, sewer, telephone, and cable television. (7) Improvements. The lessee may be required to perform improvements to the premises at lessee's cost, subject to approval of the city manager, as may be agreed by the parties. 5 (8) Signs. All signs shall comply with the sign code requirements of the city, and shall be subject to the approval of the city manager, who may delegate the authority to approve signs to the harbormaster. (9) Insurance, hold-harmless, and indemnification. The lease agreement shall require the lessee to obtain liability insurance, with the city named as an additional insured, and to agree to indemnify and save the city harmless from liability for damage to property and injury to persons resulting from or in connection with the lessee's use and occupancy of the premises, other than liability arising from the city's own negligence. a. Without limiting the generality of the foregoing, the lessee shall indemnify and save the city harmless from any mechanic's liens or other claims which may arise from improvements to the premises, and shall require any contractor performing improvements to the premises to furnish a performance and payment bond assuring the completion of the improvements and the payment of subcontractors and material suppliers. b. The minimum insurance, hold-harmless and indemnification requirements shall be in accordance with the latest version of the city's risk management guide. (10) Other provisions. The lease agreement may contain such other provisions as are customary in a commercial lease agreement or which are determined advisable by the city manager, as agreed upon by the parties. The inclusion of certain provisions in this section shall not be deemed to exclude other provisions, not inconsistent with this section, to which the parties may agree. (11) Form of standard lease agreement. The city manager shall develop the form of a standard lease agreement, which shall be used in negotiating the lease of spaces in the marina building. Except for those provisions, which are required by this section, the city charter, or Florida law, the standard lease agreement shall be subject to negotiation in each case. ***** Section 3: Section 33.004 is amended as follows: Sec. 33.004. - Diving or jumping from city-owned docks, piers, bridges. It shall be unlawful for any person to dive or jump from any dock, pier, seawall, piling, bridge, bridge structure, or any other structure which is owned, operated, or leased by the city and located on, over, within, or adjacent to any public waters, regardless of navigability, within the city. This prohibition shall not apply where such an activity is specifically permitted by the harbormaster, which permission shall be evidenced by official city signs or written consent. ***** 6 Section 4: Section 33.023 is amended as follows: Sec. 33.023. - Designation of rental areas and specific uses- rental and permit requirements. Under the direction of the city manager, the Harbormaster is authorized to designate specific areas City-owned marine facilities from which where rent, lease, license or a permit is required for commercial or other use is to be obtained and to establish the specific use to be made thereof for all marine properties owned by the city including marinas, docks, piers, wharfs, launch ramps and publicly owned upland facilities associated therewith. City-owned marine facilities. ***** Section 5: Section 33.024 is amended as follows: Sec. 33.024. - Permitted uses; division of uses. City-owned or controlled boat slips and docking spaces controlled marine facilities and docking spaces shall be used only for recreational vessels and commercial vessels. Use of those areas set aside for recreational vessels shall be limited to wet storage of recreational, noncommercial vessels. Unless otherwise authorized by the Harbormaster, use of city-owned boat slips or docking spaces shall be limited to one vessel per space. No commercial activity shall be permitted in or from docking spaces designated for use by recreational, noncommercial vessels nor shall commercial vessels occupy those spaces. Use of those areas set aside for commercial vessels shall be limited to the following types of commercial activities: 1) passenger-carrying or passenger service-oriented, such as, but not limited to open party boats, excursion boats, charter fishing boats, and personal watercraft rental; or 2) non-passenger-carrying, vessels engaged in commercial or charter fishing, or other similar enterprises as defined within this chapter. ***** Section 6: Section 33.025 is amended as follows: Sec. 33.025. - Permit required for certain uses. Written permits shall be issued to authorize the use of any city-owned docking space except for overnight or short-term use by transient vessels. Such permits shall be uniform except as to rental to be charged for different types of spaces and as to the types of activities to be permitted therein. Such permits shall be on a month-to-month basis only, except where specifically excepted from such requirements by the city manager. The permit issued pursuant to this section shall not be construed to convey or grant any interest in the docking city-owned marine facility and shall be considered to be a license agreement. ***** 7 Section 7: Section 33.026 is amended as follows: Sec. 33.026. - Use without permit prohibited; exception. (1) No person shall dock any vessel of any type whatsoever at any city-owned docking space for which a charge has been established for the use thereof, without first having obtained a written permit for the use of such space. Transient vessels shall not be required to obtain a written permit, provided that the operators of such vessels register their vessels and pay the appropriate dockage fee immediately upon arrival at a city-owned facility and keep such fees current throughout their visit. (2) No person shall engage in commercial activity in a city owned marine facility in the absence of a permit or commercial license agreement with the City. (3) Any person who pleads guilty or nolo contendere or is convicted of violating this section shall be guilty of a class II civil infraction pursuant to Section 1.12 of this Code of Ordinances. ***** Section 8: Section 33.027 is amended as follows: Sec. 33.027. - Authority to revoke permits or registrations. (1) Any permit issued pursuant to section 33.025 or registration pursuant to 33.026 for the use of any city-owned dock space may be immediately revoked by the city manager harbormaster for failure to pay the appropriate dockage charge in the manner specified or for any other breach of the conditions of the written permit, registration or marina rules. Upon notification of such revocation, the person named in the permit or registration shall immediately remove the vessel named in the permit from the docking space assigned under the permit from the marine facility. Failure to remove the vessel may be subject to removal or protective storage. (2) The docking permit for any vessel permitted to dock at any city-owned marine facility may be revoked at any time such vessel is operated in violation of any ordinance, law, regulation or act of the city, county, state, or the federal government, any rule established in accordance with Ordinance 33.021 or at any time any illegal activity is conducted on board the vessel, whether under way or moored or at anchor. ***** Section 9: Section 33.029 is amended as follows: Sec. 33.029. Payment of dockage fees. Dockage fees for city-owned dock space assigned to commercial vessels or recreational vessels on a month-to-month basis, or other time frame as approved by the city manager, shall be paid monthly in advance. Dockage fees for transient vessels shall be paid daily, weekly or monthly in advance. A late fee will be assessed 5 business days after the first of the month as designated on the agreement between the City and the vessel owner or operator. 8 ***** Section 10: Section 33.030 is amended as follows: Sec. 33.030. - Failure to pay dockage; impoundment. (1) If any person to whom a written docking permit or registration has been issued fails to pay the appropriate dockage charges in the manner specified in the permit or registration, the vessel named in the permit may, upon ten days' written notice, be impounded by the city until such delinquent charges, together with impoundment fees, have been paid. (2) During any period of impoundment pursuant to this section, the daily transient wet storage rate in effect on the date of impoundment shall be charged for each day of impoundment in addition to the impoundment fee. (3) Upon impoundment, the harbormaster shall immediately notify the owner or person holding the registration of the vessel, provide such owner or registrant with any opportunity to reclaim the vessel following the payment of charges assessed for impoundment, and provide such owner or registrant with an opportunity to provide any reason such owner or registrant may have as to why the charges should not be assessed prior to the time that such assessment becomes final. ***** Section 11: Section 33.031 is amended as follows: Sec. 33.031. Sale of petroleum products. The city manager shall have authority to designate locations on city-owned property at or from which petroleum products for the use of boats may be sold and no such products may be used, sold or delivered except from such locations. The locations for sale of petroleum products by the city at the Clearwater Municipal Marina are the marina fuel dock located at the southeast end of the marina and the marina commercial fuel dock located along the seawall on the east end of the marina. A fully qualified fuel vendor, as approved by the city manager and under an annual fuel contract with the city, shall provide all petroleum products sold at the Clearwater Municipal Marina. The city manager shall establish retail prices for such petroleum products, which prices, insofar as federal regulations permit, shall be comparable with prices for similar products sold in similar quantities by other marine fuel outlets in the area. ***** Section 12: Section 33.054 is amended as follows: Sec. 33.054. - Parking, storing vehicle, trailer, vessel in the parking area of public docking city-owned marine facilities over 72 hours. No vehicle, vessel or trailer may be parked or stored in the parking area of any public dock, launching ramp or other public waterfront city-owned marine facilities for a period of more than 72 consecutive hours. Any vehicle, vessel or trailer found parked or stored in violation of the time provision set out in this section shall in addition to the penalty provided in section 1.12 be 9 deemed derelict and/or abandoned and subject to removal as provided by law. Within this section, the term "vehicle" shall mean any device in, upon or by which any person or property is or may be transported or drawn upon a street or highway, and the term "trailer" shall mean any vehicle with or without motive power designed for carrying persons or property and for being drawn by a motor vehicle. ***** Section 13: Section 33.055 is amended as follows: Sec. 33.055. Prohibited mooring, beaching or placing of vessels. (1) No vessel of any kind whatsoever shall moor to or tie up to a private seawall or dock or be beached upon private property within the city limits without the permission of the owner thereof. (2) It is unlawful for a person, firm, or corporation to store, leave, or abandon any derelict vessel in any navigable waters within the city. No vessel that is in an unregistered, derelict, wrecked, junked, or substantially dismantled condition shall be permitted to dock, moor, or tie up at any private seawall, dock, or moorage space within the city, except that such vessel may moor at licensed marine facilities for the purpose of repair. (3) No vessel shall be moored or otherwise placed in such a manner as to impede, restrict, or otherwise interfere with the use of city-owned marine facilities, public docks, launching ramps or other public waterfront facilities. (4) No vessel shall be permitted to occupy any of the city-owned Island Way Grill, non-leased public dock slips for more than four hours per day between the hours of 8:01 a.m. and 9:59 p.m. and at all between the hours of 10:00 p.m. and 8:00 a.m., except in an emergency or hours may be adjusted to coincide with special events as authorized by the city harbormaster. The harbormaster will determine whether the circumstance constitutes an emergency or a special event circumstance. (5) No vessel shall be permitted to occupy the city-owned recreation center (Sand Pearl), non- leased public dock slips for more than four hours per day between the hours of 8:01 a.m. and 9:59 p.m. and at all between the hours of 10:00 p.m. and 8:00 a.m., except in an emergency or hours may be adjusted to coincide with special events as authorized by the city harbormaster. The harbormaster will determine whether the circumstance constitutes an emergency or a special event circumstance. (6) No vessel shall be permitted to occupy the city-owned side tie, non-leased public mooring section of the downtown boat slips, for more than four hours per day between the hours of 8:01 a.m. and 9:59 p.m. and at all between the hours of 10:00 p.m. and 8:00 a.m., except in an emergency or hours may be adjusted to coincide with special events as authorized by the city harbormaster. The harbormaster will determine whether the circumstance constitutes an emergency or a special event circumstance. (7) Vessels in violation of this section shall be subject to punishment all remedies as provided by law, including, but not limited to those enforcement procedures contained in article 7 of the Clearwater Community Development Code, and all costs of towing and storage of vessels in violation of this section shall be assessed to the vessel owner. Coding: Words in strikeout type are deletions from existing text. Words in underline type are additions. 10 Section 11: Should any of the clauses, sentences, paragraphs, sections, or parts of this Ordinance be deemed invalid, unconstitutional, or unenforceable by a court of law or administrative agency with jurisdiction over the matter, such action shall not be construed to affect any other valid portion of this Ordinance. Section 12: This Ordinance shall become effective immediately upon adoption by City Council. PASSED ON FIRST READING ____________________ PASSED ON SECOND AND FINAL ____________________ READING AND ADOPTED ____________________________ Brian J. Aungst Sr. Mayor Approved as to form: Attest: _________________________ ____________________________ Matthew J. Mytych, Esq. Rosemarie Call Assistant City Attorney City Clerk Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0083 Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: City Manager Verbal Report In Control: Council Work Session Agenda Number: 8.1 SUBJECT/RECOMMENDATION: Discuss March 21, 2024 and May 3, 2024 council meetings. Page 1 City of Clearwater Printed on 1/23/2024 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0118 Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: Council Discussion Item In Control: Council Work Session Agenda Number: 10.1 SUBJECT/RECOMMENDATION: Continuum of Care Update - Councilmember Beckman SUMMARY: Page 1 City of Clearwater Printed on 1/23/2024 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0084 Agenda Date: 1/29/2024 Status: Agenda ReadyVersion: 1 File Type: Presentation(s) for Council Meeting In Control: Council Work Session Agenda Number: 14.1 SUBJECT/RECOMMENDATION: Clearwater Lawn Bowling Day: February 17, 2024 - Ellen O'Donnell, Clearwater Lawn Bowls Club President, and Dick Judycky, Vice President. Page 1 City of Clearwater Printed on 1/23/2024