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HomeMy WebLinkAboutOrdinance 2026-4825ORDINANCE NO. 2026-4825 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF THE CITY OF MIAMI BEACH, ENTITLED "ADMINISTRATION," BY AMENDING ARTICLE II, ENTITLED "CITY COMMISSION," BY AMENDING SECTION 2-18 ENTITLED "STOP THE PAUSE POLICY" TO ESTABLISH MINIMUM VOTING THRESHOLDS FOR THE CITY COMMISSION RELATING TO SPECIFIED PROJECTS AT ADVANCED STAGES OF COMPLETION HAVING AN ESTIMATED CONSTRUCTION COST ABOVE A STATED THRESHOLD; TO FULLY INFORM THE PUBLIC OF THE DETAILS AND ADDITIONAL EXPENSE OF MATERIAL CHANGES TO SUCH PROJECTS; AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. WHEREAS, the City of Miami Beach enacted Ordinance No. 2024-4648 on September 21, 2024, establishing voting thresholds for critical infrastructure projects; and WHEREAS, the City Commission now desires to expand the coverage of the ordinance to include all capital projects having an estimated construction cost above a stated threshold at stated points of completion where substantial taxpayer funds have already been expended except in the case of unforeseen site conditions that materially impact the cost of the project; and WHEREAS, the City Commission further finds that material changes to increase the scope of a project could result in significant cost overruns or negate the project entirely, and therefore should require a higher voting threshold than a simple majority; and WHEREAS, these amendments will ensure clarity, fiscal responsibility, and continuity in the execution of capital projects, as well as greater transparency of their costs and consequences; and WHEREAS, the City Commission finds that it is prudent to establish a higher threshold of approval by the Commission and heightened awareness by the public of the anticipated additional expense to pause, delay, stop, or materially modify capital projects at advanced stages to ensure continuity, timely completion, and accountability, while allowing for exceptions in the case of unforeseen site conditions that materially impact the cost of the project, and provided, this policy shall not in any way limit the City Commission's ability to accept the recommendation of the City Manager to reject all bids or to take any action the Commission deems necessary to protect the City's rights under a contract with a design consultant or contractor; and WHEREAS, the City will ensure robust communications in advance of design and throughout the project, including public meetings, a project specific web page, a map of active projects, dedicated Public Information Outreach (PIO) firm, door-to-door distributions, onsite coordination, and other mechanisms to clarify information and timely address stakeholder questions and feedback, and WHEREAS, the 30, 60, and 90-percent design completion points are significant milestones, and as the design advances, changes become more difficult and costly, and WHEREAS, the City will utilize robust communications to inform the community about the nature, process and critical timelines of important design milestones and engage the community for feedback prior to important design milestones being reached leading up to and including any action by the City to materially modify the specified projects; and WHEREAS, the City Commission finds that holding a public project "kick-off' meeting immediately following execution of the design contract will serve the community well by providing an opportunity for residents to meet the design consultants and provide feedback at the earliest phase of project development; and WHEREAS, such early engagement will assist in the development of the 30% design documents, allowing community concerns and input to be meaningfully incorporated into the design process, provided such input remains within the authority and project definition resolved by the City Commission; and WHEREAS, establishing such higher thresholds of approval and cost transparency to pause, delay, stop or materially modify projects will also result in substantial cost savings to taxpayers. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS: SECTION 1. Article II of Chapter 2 of the Code of the City Miami Beach is hereby amended to create Section 2-18 as follows: CHAPTER 2 ADMINISTRATION ARTICLE II. CITY COMMISSION Sec. 2-18. Stop the Pause Policy. Definitions. For purposes of this section only: (a) Capital projects shall include all protects contained in the City's five-year Capital Improvement Program (CIP). (b) 30% Design Completion Milestone shall mean the stage at which the overall vision and main ideas for the project have been developed. At this stage the design will reveal the prolect's size, shape, and purpose. Deliverables generally include: (i) Site plan and basic floor plans showing overall layout, adjacencies, and key dimensions; (ii) Initial building systems approach (structural concept, preliminary (MEP) strategies); (iii) Preliminary architectural concepts (massing, elevations, basic materials): (iv) Initial code and regulatory analysis identifying major constraints: and (v) Preliminary cost estimate (c) 60% Design Completion Milestone shall mean the stage at which drawings and documents have much more detail, showing how different systems and materials will come together and how the building will actually function, based on the concept developed at the 30% level. At 60%, the design has been substantially developed, enabling detailed cost reconciliation and value engineering decisions. Deliverables typically include: Updated architectural drawinas, includina developed plans. elevations. and building sections: (ii) Detailed engineering documents, including structural framing plans, MEP system layouts, and civil/utility design progress. (iii) Outline specifications expanded to identify all major materials, equipment, and performance criteria. (iv) More refined code compliance analysis. (v) Second phase cost estimate from the Architect (required at each benchmark). (d) 90% Design Completion Milestone shall mean documents are nearly complete and suitable for final cost setting and the start of permitting, including: Full architectural and enaineerina construction drawinas. nearina final coordination level. (ii) Final technical specifications covering all divisions. (iii) Integrated MEP, structural, civil, landscape, and specialty systems with minimal outstanding decisions. (iv) Quality control and interdisciplinary coordination completed, with only minor adjustments anticipated. (v) 90% cost estimate (A/E) supporting preparation of the City's bid documents or the CM's Guaranteed Maximum Price ("GMP"). 2) Public Outreach Reauirements (a.) Immediately following execution of the design contract for any capital project subject to this section, the City shall hold a public "project kick-off' meeting for the purpose of introducing the design consultants, presenting the scope and objectives of the project, and obtaining community feedback. Input received at this meeting shall be considered in the development of the 30% Design Completion Milestone documents, to the extent such input remains within the authority and project definition resolved by the City Commission. (b.) Once a project reaches the 30% Design Completion Milestone, the City shall hold a public meeting to present the preliminary proiect concepts and design, prior to presentations to Design Review Board or Historic Preservation Board. 3 Votinq Requirements to Pause, Delay, Stop or Materially Modify Capital Projects. A 5/7th vote of the city commission shall be required before taking any action that has the effect of pausing, delaying, stopping, or materially modifying (including, without limitation, material modifications increasing or decreasing the proiect scope) a capital proiect having an estimated construction cost of $1,000,000 or more that has reached or exceeded the 60% Design Completion Milestone. A 6/7th vote of the city commission shall be required before taking any action that has the effect of pausing, delaying, stopping, or materially modifying (including, without limitation, material modifications increasing or decreasing the proiect scope) a capital proiect having an estimated construction cost of $1,000,000 or more that has reached or exceeded the 90% Design Completion Milestone and has obtained all required permits necessary for commencement of construction. In connection with any vote taken by the City Commission pursuant to subsections (a) or (b), a detailed estimate of additional costs expected to be incurred due to any pause, delay, stop, or material modification shall be included in any public information provided by the City prior to the vote, and the amount of such estimate shall be stated in the text of any resolution for approval of same. Notwithstanding subsections (a) and (b), only a 4/7th vote shall be required for the city commission to take such action in the event of unforeseen site conditions that impact the cost of construction and provided, the provisions of this section shall not in any way limit the commission's ability, on a 4/7th vote, to accept the recommendation of the city manager to reject all bids, to value engineer a proiect to reduce costs if it is more than 10% over budget, or to take any action the commission deems necessary to protect the city's rights under a contract with a design consultant or contractor. SECTION 2. REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 3. SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 4. CODIFICATION. It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby ordained that the provisions of this Ordinance shall become and be made part of the Code of the City of Miami Beach, Florida. The sections of this Ordinance may be renumbered or relettered to accomplish such intention, and the word 'ordinance" may be changed to "section," "article," or other appropriate word. SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect on the day of 4111, , 2026. PASSED AND ADOPTED this ay day of 774 *P— 2026. or ATTEST: JUN 2 6 2026 Rafael E. Granado, City Clerk (Sponsored by Commissioner Alex J. Fernandez) Steven Meiner, Mayor Underline denotes additions StFikethmugh denotes deletions Double underline denotes additions on second reading APPROVED AS TO FORM & LANGUAGE & F CUTION 17 City Attorney ;M Date Ordinances - R5 O MIAMI BEACH COMMISSION MEMORANDUM TO Honorable Mayor and Members of the City Commission FROM: City Attorney Ricardo J. Dopico DATE: June 24, 2026 9 55 a m. Second Reading Public Hearing TITLE: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF THE CITY OF MIAMI BEACH, ENTITLED "ADMINISTRATION," BY AMENDING ARTICLE II, ENTITLED CITY COMMISSION." BY AMENDING SECTION 2-18 ENTITLED "STOP THE PAUSE POLICY" TO ESTABLISH MINIMUM VOTING THRESHOLDS FOR THE CITY COMMISSION RELATING TO SPECIFIED PROJECTS AT ADVANCED STAGES OF COMPLETION HAVING AN ESTIMATED CONSTRUCTION COST ABOVE A STATED THRESHOLD, AND PROVIDING FOR REPEALER, SEVERABILITY. CODIFICATION, AND AN EFFECTIVE DATE. RECOMMENDATION BACKGROUND/HISTORY ANALYSIS The City of Miami Beach enacted Ordinance No. 2024-4648 on September 21, 2024, establishing voting thresholds for critical infrastructure projects. The sponsor of this proposed Ordinance, Commissioner Alex Fernandez, now desires to expand the coverage of the ordinance to include all capital projects having an estimated construction cost above a stated threshold at stated points of completion where substantial taxpayer funds have already been expended except in the case of unforeseen site conditions that materially impact the cost of the project. The sponsor contends that material changes to increase the scope of a project could result in significant cost overruns or negate the project entirely, and therefore should require a higher voting threshold than a simple majority. If adopted, the proposed Ordinance would require that (with designated exceptions) (1.) A 5/7th_vot_e of the city commission shall be required before takina anv action that has the effect of pausing, delaying, stopping. or materially modifying (including, without limitation, material modifications increasing or decreasing the project scope) a capital project having an estimated construction cost of $1 000 000 or more that is at least at 60% design completion. (2.) A 6/7th vote of the city commission shall be required before taking any action that has the effect of pausing, delaying, stopping or materially modifying (including without limitation, material modifications increasing or decreasing the project 1131 of 2591 scope) a capital project having an estimated construction cost of $1,000,000 or more that is at least at 90% design completion and has obtained all required permits necessary for commencement of construction. (3.) Notwithstanding subsections (a) and (b), only a 4/7th vote shall be required for the city commission to take such action in the event of unforeseen site conditions that impact the cost of construction and provided, the provisions of this section shall not in any way limit the commission's ability, on a 4/7th vote, to accept the recommendation of the city manager to reject all bids, to value engineer a project to reduce costs if it is more than 10% over budget, or to take any action the commission deems necessary to protect the city's rights under a contract with a design consultant or contractor. The City's General Obligation Bond Oversight Committee voted unanimously, at its January 22, 2026 meeting, to recommend enactment of this Ordinance, as -written. SECOND READING AMENDMENTS The second reading of this Ordinance includes enhanced public outreach standards to ensure early and meaningful community involvement in capital projects. These updates strengthen the requirement for robust communication efforts before major design milestones, particularly prior to completion of the 30% design phase. As part of these improvements, the sponsor of the item met with the Neighborhood Resiliency Projects Advisory Committee to identify more effective methods for reaching residents early in the process. This collaboration focused on ensuring that the community is well-informed and supportive of the project concepts before the 30% design milestone is finalized, reinforcing the City's commitment to transparency, engagement, and proactive consensus -building. FISCAL IMPACT STATEMENT 0M Does this Ordinance require a Business Impact Estimate? Yes (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: 3/4/2026 See BIE at: hops://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/ FINANCIAL INFORMATION CONCLUSION Applicable Area Citywide Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond pursuant to City Code Section 2-17? Project? 1132 of 2591 Yes Yes Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec 2-481 includes a principal engaged in lobbying? No If so, specify the name of lobbyist(s) and principal(s): Department City Attorney Sponsor(s) Commissioner Alex Fernandez Co-sponsor(s) Condensed Title 9:55 a.m. 2nd Rdg, Expand Stop the Pause Ordinance. (Fernandez) CA Previous Action (For City Clerk Use Only) Continued from 5/20/2026 - R5 N; Continued from 4/22/2026 - R5 K; Continued from 3/18/2026 - R5 G; First Reading Public Hearing on 2/25/2026 - R5 S; Not reached on 2/5/2026 - R5 AA 1133 of 2591