SUBJECT/RECOMMENDATION:
Title
Approve a Purchase Order with Station Square Condominium Association, Inc., of Clearwater FL, for increased building insurance premiums and the 2024 Condo Association owners’ fees in a cumulative not-to-exceed amount of $139,863.42 pursuant to Clearwater Code of Ordinances Section 2.563(1)(d), Non-Competitive purchases, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
In 2009, the City entered into an agreement with Station Square Condominium Association Inc. (Station Square) to own and operate the first 100 parking spaces in that garage as public parking. Due to this agreement, the City is a member of Station Square. Membership requires the City to pay Condo fees to the association. In 2011, the City entered into a Maintenance Agreement that clarified some of the City’s maintenance responsibilities, and that Agreement renews each year along with the Association’s budget. Each year Station Square passes a budget and the City encumbers funds to pay a share of the assessed fees. In the budget passed for 2024 by Station Square Condominium Association, the City’s share of the assessed fees due are $90,113.52.
In addition, Station Square was made aware in early 2023 that their insurance company was canceling coverage. The Association Board conducted a search for a new insurance carrier, resulting in a significant premium increase of $419,000.00. The 2023 Station Square budget was not adequate to cover the increase, hence in June 2023, the Station Square Board voted to approve a special assessment, divided among all the property owners in Station Square. As a property owner in the building, the City’s portion of the new fees was an additional $49,749.90 for a combined total of $139,863.42 owed to Station Square Condo Association Inc. for calendar year 2024.
APPROPRIATION CODE AND AMOUNT:
To fund this years’ increase, midyear budget amendments will transfer $117,335.04 to 4351333-530330, Parking System Contractual Services, offset by an increase of $117,335.04 of general parking revenue to fund Fiscal Year 2024 Condo Association owners’ fees. The remaining portion of $22,528.38 will be included in the budget for Fiscal Year 2025.
4351333-530300, Contractual Services
STRATEGIC PRIORITY:
This item includes objectives 1.2, maintaining public infrastructure through systematic management efforts, 1.3, maintaining responsive level of service for a public facility, and 2.1, strengthening public-private initiative with Station Square