HomeMy WebLinkAboutOIG No. 22-23 Inspector General G.O. Bond Quarterly ReportJoseph M. Centorino, Inspector General
January 4, 2023
TO: Honorable Mayor and Members of the City Commission
FROM: Joseph Centorino, Inspector General
RE: Inspector General G.O. Bond Quarterly Report
OIG No. 22-23
INTRODUCTION
This report is written in compliance with Section 2-256(j) of the City of Miami Beach Code, which
requires the Office of the Inspector General (OIG), on a quarterly basis, to prepare and submit to
the City Commission a written report concerning the planning and execution of the General
Obligation Bond Program, including, but not limited to, progress reports, financial analysis and
potential risks. The review is based on official city records, OIG attendance at implementation and
oversight committee meetings, interviews with staff and other department personnel as well as
regular discussions with the Program Director. This report is intended to provide the Mayor, City
Commission and the general public with useful information and periodic evaluations regarding the
implementation of the G.O. Bond projects to date.
UPDATE
The Program Director reported to the G.O. BOND Oversight Committee and the Commission that
31 of the 43 projects in Tranche 1 are in some form of "active" status and 11 projects have been
completed. Additionally, $55.1 million has been spent and another $17.4 million is encumbered
for a total of $72.5 million, or 48%, of the $151.1 million available in Tranche 1. The program must
spend 85% of the money in Tranche 1 before issuing Tranche 2 bonds.
In November 2021 and May 2022, the Program Director reported the cash flow projections to the
Oversight Committee and the expected dates for that critical 85% target. Since May 2022, the
target has been delayed by seven months in the Parks category, two months in the Infrastructure
category, and eight months in the Public Safety category. In December 2022, the Program
Director reported the following delays in the three bond categories:
1. Parks-Currently, the program has spent $24.4 million of the total $86 million
(approximately 28%) in this category. The target of 85% has been delayed for an
additional seven months. The drivers of the delay include the 72nd Street Complex
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(discussed below), Maurice Gibb Park (construction commencement revised from
September 2022 to February 2023), Par 3/Bayshore Park (construction
commencement revised from November 2022 to March 2023), and the Skate Park
(construction commencement revised from May 2023 to November 2024). The current
assumption is that the second Tranche will be ready to issue in December 2024. This
assumption is based on the following projections: a) construction of the 72nd Street
Complex will begin in November 2024, b) the Flamingo Park Lodge and softball fields
will begin construction in 2023 and the baseball fields will begin construction in 2024,
c) the Lummus Park design will begin in 2023, and d) the Pedestrian Bridge will begin
construction in June 2023.
2. Infrastructure-This category is projected to have a two-month delay. The Maurice
Gibb Seawall and Shoreline project will commence in 2023 rather than November
2022 and the Chase Avenue Shared Use Path, Traffic Calming and 23rd Streetscape
Improvements have delayed construction commencement targets of four to twelve
months. Tree planting, sidewalk improvement and street pavement are ongoing. The
expectation is that the second Tranche will be ready to issue within one year.
3. Public Safety-The projects in this category have an overall delay of eight months.
The main drivers are the Fire Station #1, Police Headquarters (No bids were received
during the procurement process. Procurement is working on an industry review to
determine what options are available.) and Street Lighting which is expected to be
delayed one year due to issues with the consultant. These projects are expected to
begin construction in 2023. The second Tranche will be ready to issue in 20 months.
In summary, the Program Director has reported that in 2023, the following projects will begin
construction:
1. Maurice Gibb Park
2. Bollards
3. Bayshore Park
4. Bike Lane Project on 23rd Street
5. Flamingo Park, The Lodge and Softball Fields
6. Pedestrian Bridge
7. Police Headquarters (This will depend on the results of the
industry review.)
8. Traffic Calming/Bayshore and Palm View Neighborhoods
9. North Shore Playground
10. Sound scape Storage
11 . Fire Station No. 1
72nd Street Project
After months of negotiations with the top bidder in the previous procurement (and the second
bidder as well) and having no contract awarded, the City is now seeking an RFQ for a design firm
and plans on issuing a subsequent RFQ for a Construction Manager at Risk. On December 14th ,
the Commission authorized the issuance of RFQ 2023-121-ND for architectural and design
services from respondents "which have proven experience in the development of high-profile,
design centric multi-level mixed use parking structures with over 300 parking spaces." This will
delay the project by at least a year while the procurement and design processes are underway.
According to CIP Director, David Martinez, the City's approach of moving from a design-build to
a construction manager at risk gives the City more control over the project. At the December G.O.
Bond Oversight Committee meeting, Mr. Martinez told the members that the contracted firm will
be instructed to design to budget and designs not within budget will need to be redesigned to
budget at no cost to the City. Committee members raised a number of questions about the
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money that has already been spent on design (approximately $2 million) as well as the impact of
inflation and other market influences on the overall project scope and length of time for delivery.
Mr. Martinez advised that the dollars spent in design will be not be wasted and he estimated that
the project will be delivered in 2027.
Maurice Gibb Park
At the November 16th Commission meeting, a contract was awarded to Lunacon Engineering
Group Corp. pursuant to 1TB No. 2022-607-ND. The Project is expected to begin in February
2023.
Bayshore Park/Par 3
On December 14th , the Commission approved the award of a contract to Buslam Company
Partners Inc. pursuant to 1TB No. 2022-310-AY and authorized the City Manager to execute a
contract upon confirmation of the state grant funding. Buslam Company Partners, Inc. was the
lowest bidder in the amount of $31,965,025. The project had a $13-$16 million shortfall. (The $16
million shortfall in the budget is being remedied by a capital budget amendment in the amount of
$9 million and a $4 million disbursement from stormwater funds. The remaining $3 million is
expected to come from a state grant.) Acting Chief Financial Officer Kathie Brooks advised the
Finance Committee at a special meeting on December 9th that Buslam Company Partners Inc.
will hold its bid for six months after the award of the contract. Until the grant is awarded, or the $3
million gap is funded from a different source, the contract will not be fully executed. Bayshore/Par
3 Park is now expected to begin construction in March 2023.
Fire Station #1
The design of the fire station is expected to reach 90% by the end of 2022 and a guaranteed
maximum price determined by the beginning of 2023. The project is facing a budget shortfall of
at least $2 million and the relocation of the child-care center remains an impediment to starting
construction. However, the budget gap is expected to be closed, in part, by a grant and CIP will
be taking over the development of the compound in Flamingo Park to temporarily house the child
care program.
G.O. Bond for Arts and Culture
In the November 8, 2022 election, voters approved a $159 million General Obligation Bond for
Arts and Culture which will be overseen by the G.O. Bond Oversight Committee. Chapter 2,
Division 26, Sec. 2-190.107 of the City Code was amended to state:
The purpose of the General Obligation Bond Oversight Committee is to make advisory
recommendations to the City Manager and the City Commission from a macro perspective
regarding the timely progress, overall goals, costs, including financial efficiencies, and the
timely completion of General Obligation Bond Program projects approved by the voters in
the City of Miami Beach Special Elections held on November 6, 2018 and November 8,
2022.
Other changes include Sec.2-190.109 which expands the Committee to 14 members, composed
of nine at large voting members, two of which must be City residents from any geographical area
of the City, with experience working with cultural/arts organizations, including experience with
respect to operations, facilities management or design, to be appointed by the Commission. An
additional non-voting member will be added by designation of the City's Cultural Arts Council for
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a total of five designees. The Oversight Committee, which had been meeting every other month,
will now resume monthly meetings.
At the December meeting of the Oversight Committee, the Program Director presented a draft
General Work Plan and an explanation of how the projects will be prioritized. The Program
Director is in the process of creating a timetable for the issuance of the bond(s) and the delivery
of the projects. Some of the projects in this bond are "shovel ready," reflect an urgency because
of the asset's deterioration, or are "quick wins" that can be accomplished immediately. A few of
the projects have longer lead times and will require more extensive planning. A copy of the draft
General Work Plan is attached . The combined value of the two bonds is approximately $600
million.
CONCLUSION
The G.O. Bond Oversight Committee continues to thoroughly assess the work being done on the
Tranche 1 projects and raise issues regarding the implementation. The Oversight Committee
chairperson and the Program Director are in regular communication with each other and staff
remains responsive to questions raised by Committee members. This productive working
relationship has been helpful as t_he City navigates challenges to schedules as a result of delays
and will prove beneficial now that their responsibilities include the recent Cultural Arts Bond . The
Oversight Committee has discussed with members of the City staff that changes to the scope of
the pending projects may be forthcoming. The transparency with which the City has engaged with
the Committee will assist in this decision-making process if needed.
The OIG appreciates the courtesies and inclusionary efforts extended to OIG staff by the
Oversight Committee and City departments involved in the G.O. Bond program.
ine Singer, lnve
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Date
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Date
cc: Alina T. Hudak, City Manager
Maria Hernandez, G.O. Bond Program Director
Karen Rivo , Chair Person of G.O.Bond Oversight Committee
OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach
1130 Washi ngton Avenue, 61h Floor, Miami Beach, FL 33139
Tel: 305.673.7020 • Fax: 305.206.5509• Hotline: 786.897.1111
Email: CiJ¥ofMiamiBeachOIG@miamibeachfl.gov
Website: www.mbinspectorgeneral.com
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