Clearwater City Council Meeting – July 16, 2026

The Clearwater City Council met on July 16, 2026, at 6:00 PM in the Main Library Council Chambers. The meeting covered a 30-year franchise agreement with Duke Energy, the tentative millage rate for FY 2026-27, allocation of hotel density units for the Palm Pavilion redevelopment, and appointment of a new city attorney, among other items. Public comment was heard on several agenda items, particularly the Duke Energy franchise.

Consent Calendar

• The consent agenda (items 5.1–5.16) was approved unanimously, including purchase orders for citywide custom apparel, seawall repairs, underdrain improvement, pedestrian crosswalk enhancements, temporary right-of-entry for new City Hall, vehicle repair services, fire training indemnification, lift station platforms, reverse osmosis filters, and various board appointments.

Public Comments & Testimony

• Duke Energy Franchise (6.1): Over 20 speakers addressed the council. Several residents and a representative from Duke Energy expressed support for the franchise renewal, citing Duke’s investments, reliability, and community partnerships. Speakers from the “Dump Duke” campaign urged the council to pursue a municipal utility, citing feasibility study findings of 10–15% potential savings, lower rates in other cities (e.g., Winter Park), and dissatisfaction with Duke’s customer service and rate increases. Some speakers criticized the rushed process and lack of public education. Others praised Duke’s weatherization programs in North Greenwood.
• Palm Pavilion Hotel (6.5): Residents from adjacent Pura Vida condominiums and other community members voiced opposition to the 144-room hotel, citing traffic concerns, scale, and lack of notice. They requested a pause until a traffic study due in November 2026 was completed.
• Budget (6.2): One speaker urged the council to educate residents about the potential impact of the November property tax referendum.

Discussion Items

• 6.1 – Duke Energy Franchise Agreement: Staff presented the 30-year franchise agreement and a related Memorandum of Understanding (MOU) with Duke. Key MOU benefits included a $20,000/year economic development plan for five years, $100,000 for downtown retail strategy, $100,000/year for six years for infrastructure resiliency, $20,000/year for five years for North Greenwood CRA, a loop feed for police headquarters, naming rights for Coachman Park, and vegetation management collaboration. Council members expressed support, citing the city’s feasibility study and appraisal (which showed municipalization could save money but carried litigation and financial risks). The proposed franchise fee remained at 6%.
• 6.2 – Tentative Millage Rate and Budget: Budget Director Kayleen Castle presented the FY 2026-27 proposed budget of $800.2 million, with a proposed millage rate of 5.8850 mills (same as current year). After discussion, Councilmember Mannino moved to set the rate at the rollback rate of 5.8773 mills, reducing revenue by approximately $145,000. The motion passed 5-0, with council members noting it was a symbolic step toward taxpayer relief. Public hearing dates were set for September 15 and 21, 2026.
• 6.3 – Affordable Housing Advisory Committee: Continued to the next meeting due to a vacancy.
• 6.4 – Surplus Property Transfer: Approved unanimously to transfer 103 N. East Ave. to the CRA.
• 6.5 – Palm Pavilion Hotel Density Allocation: The council approved setting a second public hearing for August 20, 2026, on the development agreement allocating 91 units from the Hotel Density Reserve. Council members expressed support for the project, noting its compliance with Beach by Design, but also agreed to a future strategic discussion on the remaining 19 units and traffic issues.
• 6.6 – Sister Cities Advisory Board Appointment: Cheryl Acton was appointed as the business community representative.
• 7.1–7.5 – Ordinances: All second and third reading ordinances were approved unanimously, including parking modernization, right-of-way vacation, and annexation/zoning at 1903 Douglas Avenue.
• 11.1 – City Attorney Selection: After discussion, the council unanimously selected Owen Kohler as the next city attorney, citing his performance as interim city attorney, institutional knowledge, and stability.

Key Outcomes

• Duke Energy Franchise: Ordinance 9929-26 passed on first reading unanimously (5-0). A second reading will be required.
• Millage Rate: Set at 5.8773 mills (rollback rate) for FY 2026-27, with public hearings on September 15 and 21, 2026.
• Palm Pavilion: Second public hearing scheduled for August 20, 2026, at 6:00 PM.
• City Attorney: Owen Kohler appointed as city attorney; contract to be drafted by outside counsel.
• Board Appointments: Cheryl Acton to Sister Cities Advisory Board; Robyn Fiel and Todd St. John-Fulton to Affordable Housing Advisory Board; Kinard Robinson to North Greenwood CRA CAC; Eleanor Nartker, Stephanie Chill, and Natasa Karac to Sister Cities Advisory Board.
• Other: All consent agenda items approved; surplus property transferred to CRA; three ordinances adopted on third reading.