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20120718 SM1MIAMI BEACH City Commission Meeting SUPPLEMENTAL MATERIAL 1 City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive July 18, 2012 Mayor Matti Herrera Bower Vice-Mayor Jorge R. Exposito Commissioner Michael G6ngora Commissioner Jerry Libbin Commissioner Edward L. Tobin Commissioner Deede Weithorn Commissioner Jonah Wolfson Interim City Manager Kathie G. Brooks City Attorney Jose Smith City Clerk Rafael E. Granado Visit us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings. ATTENTION ALL LOBBYISTS Chapter 2, Article VII, Division 3 of the City Code of Miami Beach entitled ,;Lobbyists" requires the registration of all lobbyists with the City Clerk prior to engaging in any lobbying activity with the City Commission, any City Board or Committee, or any personnel as defined in the subject Code sections. Copies of the City Code sections on lobbyists laws are available in the City Clerk's office. Questions regarding the provisions of the Ordinance should be directed to the Office of the City Attorney. SUPPLEMENTAL AGENDA C7 -Resolutions C7D A Resolution Approving And Authorizing The Mayor And City Clerk To Execute Amendments To The Contracts Between The City Of Miami Beach And, Respectively, 1.) Central Poly Corp.; 2.) Dermatec Direct; 3.) Hospitality Purchasing LLC; 4.) Hudson Plastic Corp.; 5.) Janitor's Supply Outlet; 6.) Pride Enterprises; 7.) Rex Chemical Corp.; 8.) Songahi, Inc.; 9.) Totalpack, Inc.; And 10.) Troy Industries, Inc.; Dated August 8, 2011, For The Purchase Of Janitorial Supplies, In The Total Estimated Annual Amount Of $183,000; Said Amendments Approving The First Year Renewal Option Of The Contracts, And Further Amending Section 2.2 Thereof (Terms) To Allow Subsequent Renewal By The City Manager. (Procurement) (Resolution) 1 Supplemental Agenda, July 18, 2012 C7 -Resolutions (Continued) C7H A Resolution Accepting The Recommendation Of The City Manager To Reject All Proposals Received Pursuant To Request For Proposals (RFP) No. 20-11/12, To Install And Maintain An Externally Web Hosted Software For Parks And Recreation; And To Re-Issue A Request For Proposals (RFP) With Certain Amended Minimum Requirements. (Parks & Recreation/Procurement) (Revised Resolution) C7K A Resolution Approving And Authorizing The Mayor And City Clerk To Execute Amendment No. 1 To The Contract With Radio Satellite Integrators, Inc, Dated June 27th, 2011, In An Amount Not To Exceed $268,220, To Implement The Public Safety Automated Vehicle Locator (AVL) For Police And Fire Department Vehicles. (Procurement) (Resolution) C7Q A Resolution Approving And Authorizing The Mayor And City Clerk To Execute Professional Services Agreements, In Substantially The Attached Form, For General Transportation Planning And Traffic Engineering Consulting Services On An As-Needed Basis, For The City Of Miami Beach, Pursuant To Request For Qualifications No. 55-08/09, With The Following Five Firms: AECOM USA, Inc., Atkins Global, Inc., The Corradino Group, Inc., Florida Transportation Engineering, Inc., And Gannett Fleming, Inc. (Public Works) (Resolution) C7S A Resolution Accepting A Utilities Easement, In Substantially The Form Attached To This Resolution From Dr. Modesto Mora, As The Owner Of Lot 8 And Lot 9 Of The Corrected Plat Of Star Island, For The Construction, Installation, Operation, And Maintenance Of A Stormwater Outfall Pipe, To Be Located Within The Easement Area, As Such Area Is Described In This Resolution And In The Proposed Easement. (Public Works) {Resolution) C7X A Resolution Approving A Request By The Miami Beach Garden Conservancy, Inc., To Increase The Facility Rental Rates For The Miami Beach Botanical Garden, As Recommended By The Finance And Citywide Projects Committee On July 10, 2012. (Real Estate, Housing & Community Development) (Memorandum & Resolution) 2 ii Supplemental Agenda, July 18, 2012 R7 -Resolutions R7B A Resolution Setting 1) The Proposed Operating Millage Rate; 2) The Required Debt Service Millage Rate; 3) The Calculated "Rolled-Back" Rate; And, 4) The Date, Time, And Place Of The First Public Hearing To Consider The Millage Rates And Budgets For Fiscal Year (FY) 2012/13; Further Authorizing The City Manager To Transmit This Information To The Miami-Dade County Property Appraiser In The Form Required By Section 200.065, Florida Statutes. (Budget & Performance Improvement) (Memorandum) R7C A Resolution Of The Board Of Directors Of The Normandy Shores Local Government Neighborhood Improvement District Setting 1) The Proposed General Operating Millage Rate For The Normandy Shores Neighborhood Improvement District; 2) The Calculated Rolled-Back Rate; And, 3) The Date, Time And Place Of The First Public Hearing To Consider The Operating Millage Rate And Budget For Fiscal Year (FY) 2012/13; Further Authorizing The City Manager To Transmit This Information To The Miami-Dade County Property Appraiser In The Form Required By Section 200.065, Florida Statutes. (Budget & Performance Improvement) (Resolution) R7N Resolution Approving The Issuance And Sale Of Not To Exceed $145,000,000 Principal Amount Of City Of Miami Beach Health Facilities Authority Hospital Revenue Refunding Bonds, Series 2012 (Mount Sinai Medical Center Of Florida), By The City Of Miami Beach Health Facilities Authority, Including The Approval Required By Section 147(f) Of The Internal Revenue Code Of 1986, As Amended; Providing That Said Bonds Shall Not Constitute A Debt, Liability Or Obligation Of The City Or The State Of Florida Or Any Political Subdivision Thereof But Shall Be Payable Solely From The Revenues Provided Therefor; And Providing An Effective Date. (Finance Department) (Health Facilities Authority Bond Resolution) R70 A Resolution Accepting The Recommendation Of The City Manager To Reject All Proposals Received Pursuant To Request For Proposals No. 23-11/12 To Provide Security Guard Services (The RFP) And, In The Alternative, Retroactively Approving The Third Renewal Term Of Security Alliance's Current Contract For Security Guard Services, Dated April2, 2007, With Such Third Renewal Term Being Effective As Of May 1, 2012, To April 30, 2013; And Further Authorizing The Issuance Of A New Request For Proposals (RFP) For Security Guard Services. (Parking/Police/Procurement) (Resolution) R7Q A Resolution Approving And Authorizing The Mayor And City Clerk To Execute An Employment Agreement Between The City And Kathie G. Brooks, Engaging Ms. Brooks As Interim City Manager For The City Of Miami Beach. (City Attorney's Office) (Resolution & Agreement) 3 iii Supplemental Agenda, July 18, 2012 Redevelopment Agency Items 1A A Resolution Of The Chairperson And Members Of The Miami Beach Redevelopment Agency (RDA), Florida, Authorizing The Executive Director, Or Her Designee, To Select, Negotiate, Award And Reject All Bids, Contracts, Agreements, Purchase Orders, Change Orders And Grant Applications; Renew Existing Contracts Which May Expire; And Terminate Existing Contracts, As Needed, From The Last RDA Meeting On July 18, 2012, Until The First Regularly Scheduled Meeting On September 12, 2012, Subject To Ratification By The RDA At Its First Regularly Scheduled Meeting On September 12, 2012. Joint City Commission & Redevelopment Agency (Procurement) (Resolution) 4 iv RESOLUTION NO.----- A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENTS TO THE CONTRACTS BETWEEN THE CITY OF MIAMI BEACH AND, RESPECTIVELY, 1.) CENTRAL POLY CORP.; 2.) DERMATEC DIRECT; 3.) HOSPITALITY PURCHASING LLC; 4.) HUDSON PLASTIC CORP.; 5.) JANITOR'S SUPPLY OUTLET; 6.) PRIDE ENTERPRISES; 7.) REX CHEMICAL CORP.; 8.) SONGAHI, INC.; 9.) TOTALPACK, INC.; AND 10.) TROY INDUSTRIES, INC.; DATED AUGUST 8, 2011, FOR THE PURCHASE OF JANITORIAL SUPPLIES, IN THE TOTAL ESTIMATED ANNUAL AMOUNT OF $183,000; SAID AMENDMENTS APPROVING THE FIRST YEAR RENEWAL OPTION OF THE CONTRACTS, AND FURTHER AMENDING SECTION 2.2 THEREOF (TERMS) TO ALLOW SUBSEQUENT RENEWAL BY THE CITY MANAGER. WHEREAS, at its July 13, 2011 City Commission, the Mayor and City Commission awarded contracts to Best Janitorial & Supplies, Inc.; Calico Industries, Inc.; Central Poly Corp.; Dermatec Direct; Hospitality Purchasing LLC; Hudson Plastic Corp.; lnterboro Packaging Corp.; Janitor's Supply Outlet; Pride Enterprises; Quill Corp.; Rex Chemical Corp.; Songahi, Inc.; Totalpack, Inc.; and Troy Industries, Inc., as primary and secondary vendors per line item, pursuant to Invitation to Bid (ITB) No. 5-10/11, for the purchase of janitorial supplies Citywide, in the total estimated annual amount of $183,009; and WHEREAS, the purpose of this Resolution is to recommend the first year renewal of these contracts, and to amend Section 2.2 of such contract, to allow renewal for the second option year by the City Manager, at his/her sole discretion. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and authorize the Mayor and City Clerk to execute amendments to the contracts between the City and 1.) Central Poly Corp.; 2.) Dermatec Direct; 3.) Hospitality Purchasing LLC; 4.) Hudson Plastic Corp.; 5.) Janitor's Supply Outlet; 6.) Pride Enterprises; 7.) Rex Chemical Corp.; 8.) Songahi, Inc.; 9.) Totalpack, Inc.; and 10.) Troy Industries, Inc.; dated August 8, 2011, for the purchase of janitorial supplies, in the total estimated annual amount of $183,000; said Amendments approving the first year renewal option of the contracts, and further amending Section 2.2 thereof (Terms) of such contracts to allow subsequent renewals by the City Manager. PASSED and ADOPTED this ___ day of-----' 2012. ATTEST: CITY CLERK MAYOR T:\AGENDA\2012\7 -18-12\ITB 5-10-11 Purchase of Janitorial Supplies RESO.doc :Agenda Item C 7 D ORe 7-fS-JL. APPROVED AS TO FORM & LANGUAGE & FO~ EXECUTION THIS PAGE INTENTIONALLY LEFT BLANK 6 RESOLUTION NO. ----- A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER TO REJECT ALL PROPOSALS RECEIVED PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 20-11/12, TO INSTALL AND MAINTAIN AN EXTERNALLY WEB HOSTED SOFTWARE FOR PARKS AND RECREATION; AND TO RE-ISSUE A REQUEST FOR PROPOSALS (RFP) WITH CERTAIN AMENDED MINIMUM REQUIREMENTS. WHEREAS, on December 14, 2011, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 20-11/12, to Install and Maintain an externally Web Hosted Software for the City of Miami Beach Parks and Recreation Department (RFP); and WHEREAS, RFP No. 20-11/12 was issued on January 18, 2012, with an opening date of February 29, 2012; and WHEREAS, a pre-proposal conference to provide information to the proposers submitting a response was held on February 2, 2012; and WHEREAS, BidNet issued bid notices to 155 prospective proposers, and 15 additional proposers were notified via e-mail, which resulted in the receipt of six (6) proposals; and WHEREAS, on April 26, 2012, The Active Network was notified via letter that its proposal was deemed non responsive because The Active Network did not meet minimum requirement No. 7 (d), which stated that all revenue collected from customers must be deposited into the City's bank account within no more than three (3) days of collection, including internet based payments such as Pay Pal; and WHEREAS, on June 12, 2012, Vermont Systems, Inc was notified via letter that its proposal was deemed non responsive because Vermont Systems, Inc did not meet the minimum requirement which required vendors to have successfully completed at least ten (10) externally hosted software packages for a Parks and Recreation municipality equally to most, if not all the above specifications, including software merging of an existing data/history within the past four years; and WHEREAS, on June 12, 2012, Unlocked Media, LLC -Stadiumroar.com was notified via letter that its proposal was deemed non responsive because Unlocked Media, LLC - Stadiumroar.com did not meet the minimum requirement which required vendors to have successfully completed at least ten (1 0) externally hosted software packages for a Parks and Recreation municipality equally to most, if not all the above specifications, including software merging of an existing data/history within the past four years; and WHEREAS, on June 12, 2012, Energov Solutions was notified via letter that its proposal was deemed non responsive because Energov Solutions did not meet the minimum requirement which required vendors to have successfully completed at least ten (1 0) externally hosted software packages for a Parks and Recreation municipality equally to most, if not all the above specifications, including software merging of an existing data/history within the past four years; and 7 lAgenda Item C 7 H Date i-11-IL WHEREAS, on May 4, 2012, the City Manager via Letter to Commission (LTC) No. 125-2012, appointed an Evaluation Committee (the "Committee") consisting of the following individuals: • Theresa Buigas, Parks and Recreation Analyst, Parks and Recreation Department; • Bob Biles, Applications System Manager, IT Department; • Modesto Mora, Resident and Leadership Academy Graduate; • Tony Lopez, Parks and Recreation Director, Town of Miami Lakes; • Jon Groff, Resident and Chairman of the Parks and Recreational Facilities Board; • Bruce Reich, Resident and Leadership Academy Graduate • Meryl Wolfson, member of the Parks and Recreational Facilities Board; Alternates • Esther Egozi Choukroun, resident and Scott Rakow Board member; and WHEREAS, the Parks and Recreation department developed a scripted demo outline to be performed by the proposers during their presentation; and WHEREAS, the Committee convened on June 29, 2012 to receive software demonstrations from the two (2) responsive proposers; and WHEREAS, the Committee was provided with an overview of the project, information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided with general information on the scope of services, Performance Evaluation Surveys, pertinent information from all responsive proposers, and engaged on a 30-minute Question and Answer session; and WHEREAS, the Committee discussed its individual perceptions of the proposers' qualifications, experience, and competence, and further scored and ranked the proposers accordingly; and WHEREAS, a motion was presented by Bruce Reich, seconded by Jon Groff, and unanimously approved by all Committee members, to recommend rejecting all proposals received and issue a new RFP with revised minimum requirements which would allow for greater competition; and WHEREAS, in the alternative, the Committee further recommended, as a second motion, that should the City Manager not concur with its first motion of reject all proposals that they would recommend entering into negotiations with the top ranked proposer, Capturepoint, contingent upon the administration's review of their user/resident interface. If negotiations were not successful with the top ranked, the Committee recommended entering into negotiations with the second ranked proposer, REC1, contingent upon the request of a revised cost estimate, and a further review of the security provisions, administrative features, and their clients feedback since no Performance Evaluation Surveys were requested by the proposers from its clients and therefore, no client feedback was presented to the Committee for consideration; and WHEREAS, after considering the recommendation of the Committee, the City Manager exercised her due diligence and concurs with the Committee's recommendation and is recommending that the Mayor and the City Commission reject all proposals received and re-issue the RFP with the amended minimum requirements. 8 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the City Manager to reject all proposals received pursuant to Request for Proposals (RFP) No. 20-11/12, to install and maintain an externally Web Hosted Software for Parks and Recreation; and to re-issue a request for proposals (RFP) with certain amended minimum requirements. PASSED AND ADOPTED THIS ___ DAY OF ____ 2012. ATTEST: CITY CLERK MAYOR T:\AGENDA\2012\7-18-12\RFP-20-11-12Web Hosted Software-RESO.doc 9 APPROVED AS TO FORM & LANGUAGE & FOR XECUTION THIS PAGE INTENTIONALLY LEFT BLANK 10 RESOLUTION NO. ----- A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO.1 TO THE CONTRACT WITH RADIO SATELLITE INTEGRATORS, INC, DATED JUNE 27TH, 2011, IN AN AMOUNT NOT TO EXCEED $268,220, TO IMPLEMENT THE PUBLIC SAFETY AUTOMATED VEHICLE LOCATOR (AVL) FOR POLICE AND FIRE DEPARTMENT VEHICLES. WHEREAS, on December 8, 2010, the Mayor and City Commission approved Resolution No. 2010-7561, accepting the City Manager's recommendation pertaining to the ranking of proposals pursuant to Request for Proposals (RFP) No. 39-09/10, for the acquisition of an automated vehicle locator (AVL) system, and authorized the Administration to enter into negotiations with the top-ranked proposer, Radio Satellite Integrators, Inc (RSI); and further authorized the Mayor and City Clerk to execute an agreement upon the conclusion of successful negotiations by the Administration; and WHEREAS, the Administration successfully negotiated with RSI and executed a contract on June 27, 2011; subsequently, 177 devices were installed in vehicles from the Building, Code Compliance, and Parking Departments; and WHEREAS, and additionally, a small number have been installed in Police vehicles on a test basis; and WHEREAS, as stated above, the first phase of this implementation included Code Compliance, Building Inspectors, and Parking Enforcement vehicles; the second phase extends the implementation of the AVL system devices to Police patrol and Fire vehicles; and WHEREAS, the contract with RSI allows for the installation of the AVL system devices on additional City vehicles; and WHEREAS, accordingly, the Administration would recommend that the Mayor and City Commission approve and authorize the Manager and City Clerk to execute an amendment to the RSI contract, to provide for the purchase and installation of 331 AVL system devices for Police and Fire Department vehicles (250 for Police vehicles, and 61 for Fire vehicles). NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and authorize the Mayor and City Clerk to execute Amendment No. 1 to the contract with Radio Satellite Integrators, Inc, dated June 2ih, 2011, in an amount not to exceed $268,220, to implement the Public Safety Automated Vehicles Locator (AVL) for Police and Fire Department vehicles. 11 :Agenda Item Date PASSED AND ADOPTED THIS ___ DAY OF ____ 2012. ATTEST: CITY CLERK MAYOR T:\AGENDA\2012\7-18-12\Public Safety AVL -RESO.doc 12 RESOLUTION NO. ----- A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE PROFESSIONAL SERVICES AGREEMENTS, IN SUBSTANTIALLY THE ATTACHED FORM, FOR GENERAL TRANSPORTATION PLANNING AND TRAFFIC ENGINEERING CONSULTING SERVICES ON AN AS-NEEDED BASIS, FOR THE CITY OF MIAMI BEACH, PURSUANT TO REQUEST FOR QUALIFICATIONS NO. 55- 08/09, WITH THE FOLLOWING FIVE FIRMS: AECOM USA, INC., ATKINS GLOBAL, INC., THE CORRADINO GROUP, INC., FLORIDA TRANSPORTATION ENGINEERING, INC., AND GANNETT FLEMING, INC. WHEREAS, the City Commission, pursuant to Resolution No. 2010-27325, authorized the administration to negotiate with AECOM USA, Inc., Atkins Global, Inc., The Corradino Group, Inc., Florida Transportation Engineering, Inc., and Gannet Fleming, Inc. to provide General Transportation Planning and Traffic Engineering Consulting Services on As-Needed Basis pursuant to Request for Qualifications No. 55-08/09; and WHEREAS, the Administration has successfully negotiated agreements with the selected firms, in the form attached as Exhibit "A" to this resolution. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approves and authorizes the Mayor and City Clerk to execute Professional Services Agreements, in substantially the form as attached in Exhibit "A" hereto, for general transportation planning and traffic engineering consulting services on an as-needed basis, with the following five firms: AEOCOM USA, Inc., Atkins Global, Inc., The Corradino Group, Inc., Florida Transportation Engineering, Inc., and Gannett Fleming, Inc. PASSED AND ADOPTED THIS 18th DAY OF JULY 2012. ATTEST: CITY CLERK MAYOR APPROVED AS TO T:\AGENDA\2012\7-18-12\Professional Services Contracts RESO.docx FORM & LANGUAGE & F()~ EXECUTION ~ 1 JJ. j'l- ~~::::?fi:z::t:.~- !Agenda Item 13 Date C7G 7-18:/z.... THIS PAGE INTENTIONALLY LEFT BLANK 14 RESOLUTION NO.---- A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING A UTILITIES EASEMENT, IN SUBSTANTIALLY THE FORM ATTACHED TO THIS RESOLUTION FROM DR. MODESTO MORA, AS THE OWNER OF LOT 8 AND LOT 9 OF THE CORRECTED PLAT OF STAR ISLAND, FOR THE CONSTRUCTION, INSTALLATION, OPERATION, AND MAINTENANCE OF A STORMWATER OUTFALL PIPE, TO BE LOCATED WITHIN THE EASEMENT AREA, AS SUCH AREA IS DESCRIBED IN THIS RESOLUTION AND IN THE PROPOSED EASEMENT. WHEREAS, Star Island Drive has recently been experiencing flooding; and WHEREAS, Dr. Modesto Mora, the owner of Lot 8 and Lot 9 on Star Island, has offered to grant the City a utilities easement for a new drainage outfall (the Easement); and WHEREAS, City staff has prepared a stormwater infrastructure design that features a proposed 36-inch outfall through the proposed Easement; and WHEREAS, the Easement area will be 9 to 12 feet in width, and approximately 407 feet in length, for an area of approximately 4, 709 square feet, generally on the north side of Lot 9; and WHEREAS, this Easement provides the City with the ability to construct, install, inspect, operate, and maintain a stormwater outfall pipe, utilities infrastructure, and all appurtenant facilities thereto, with the right to reconstruct, improve, change and remove all or any of the facilities within the Easement. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission accept a utilities easement, in substantially the form attached to this resolution from Dr. Modesto Mora, as the owner of lot 8 and lot 9 of the corrected plat of Star Island, for the construction, installation, operation, and maintenance of a stormwater outfall pipe, to be located within the easement area, as such area is described in this resolution and in the proposed easement. PASSED AND ADOPTED this 185 t day of July, 2012. ATTEST: Matti Herrera Bower, Mayor Rafael Granado, City Clerk T:\AGENDA\2012\7-18-12\revocable permits and easements\Star Island Utility Easement-RESO.doc 15 APPROVED AS TO FORM & LANGUAGE &FO CUTION . v ' '\ \ ~ t.\ \ v l tome~~ oa1e .. Agenda Item C'1 5 I ~~=-- Date 1-lf-lt. THIS PAGE INTENTIONALLY LEFT BLANK 16 COMMISSION ITEM SUMMARY Condensed Title: A Resolution approving a request by the Miami Beach Garden Conservancy, Inc., to increase the facility rental rates for the Miami Beach Botanical Garden, as recommended by the Finance And Citywide Projects Committee on July 10, 2012. Key Intended Outcome Supported: Increase resident satisfaction with the level of services and facilities and with recreational programs. Supporting Data (Surveys, Environmental Scan, etc.): Approximately 85% of residents surveyed ranked Miami Beach recreational programs as excellent or good. Issue: Shall the Miami Beach Botanical Garden increase its event rental rates to be comparable with other arden facilities? Item Summary/Recommendation: The Agreement between the City and the Garden Conservancy requires the Garden Conservancy to present for approval by the City Manager and/or his designee on or before July 31st of each year, a proposed line item budget identifying the funding it anticipates raising as well as the level of funding it is requesting from the City to subsidize the operations at the Botanical Garden. Several months ago, the Garden Conservancy requested authorization for an increase of the rental rates at the facility. In light of the City's annual contribution to the Garden Conservancy, approval of the proposed increased rates was deferred by the Finance and Citywide Projects Committee (FCWPC) until the City's budget review process was underway. During the May 17, 2012 meeting of the FCWPC when the Garden Conservancy's contract renewal option was discussed, the Garden Conservancy's request for authorization to increase the rental rates of the facility was also discussed, but FCWPC requested that a revenue projection be provided to the City demonstrating the proposed rate structure and resulting income, and that this projection be submitted in July for consideration during the budget meetings. The Garden Conservancy notes that, due to the typical lead time involved in booking the larger events at the facility, which in some cases can be as much as a year ahead of time, most of the events on the books for the next fiscal year will have been booked at the current rate structure. If the new increased rates are approved by the City, they will go into effect on January 1, 2013, and the additional revenue will not be consistent in FY12/13. A full year of increased rates will be realized in FY13/14. Garden Conservancy staff conducted extensive market research and visited other facilities to compile comparable rates. The results of this research and the proposed increased rental rate structure for the Miami Beach Botanical Garden are summarized in the attachment to the Commission Memorandum. Compared to the rates charged by venues like Fairchild Tropical Garden, the Deering Estate, and other venues, the proposed rates are reasonable and viable. In addition, increased rental revenues may assist in reducing the need and/or level of the City's subsidy funding for the Garden. Adviso Board Recommendation: Finance and Citywide Project Committee May 17, 2012, and July 10, 2012. Financial Information: Source of Amount Account Funds: 1 N/A I I 2 3 OBPI Total Financial Impact Summary: Garden Conservancy's prediction that revenues under the new rate structure would not significantly impact its budget until the second quarter of FY13/14. On July 10, 2012, the FCWPC deferred review of the City's contribution until the City's final budget and other City contributions are reviewed, but recommended that the proposed rate increase be immediately approved. City Clerk's Office Legislative Tracking: Anna Parekh ext. 7260 . S1 n-Offs: Department Director AP MIAMI BEACH 17 anager KGB AGENDA ITEM __....:C:::.,_7___.:...X_ DATE 7-{Jr/2- ~ MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov TO: FROM: DATE: SUBJECT: COMMISSION MEMORANDUM Mayor Matti Herrera Bower and Members of the City Commission Kathie G. Brooks, Interim Cijy Manager ~.,/t. y--· July 18, 2012 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A REQUEST BY THE MIAMI BEACH GARDEN CONSERVANCY, INC., TO INCREASE THE FACILITY RENTAL RATES FOR THE MIAMI BEACH BOTANICAL GARDEN, AS RECOMMENDED BY THE FINANCE AND CITYWIDE PROJECTS COMMITTEE ON JULY 10,2012. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND On June 6, 2012, the Mayor and City Commission approved a renewal of the Management Agreement between the City of Miami Beach and the Miami Beach Garden Conservancy, Inc., for an additional five-year term, commencing on July 1, 2012 through June 30, 2017. The Agreement between the City and the Garden Conservancy requires the Garden Conservancy to present for approval by the City Manager and/or his designee on or before July 31st of each year, a proposed line item budget identifying the funding it anticipates raising through facility rentals, grants, donations, and other sources, as well as the level of funding it is requesting from the City to subsidize the operations at the Botanical Garden. At the time the Garden Conservancy requested to exercise its five-year renewal option, it also requested authorization for an increase of the rental rates at the facility. In light of the City's annual contribution to the Garden Conservancy, approval of the proposed increased rates was deferred by the Finance and Citywide Projects Committee (FCWPC) until the City's budget review process was underway. During the May 17, 2012 meeting of the FCWPC when the Garden Conservancy's contract renewal option was discussed, the Garden Conservancy's request for authorization to increase the rental rates of the facility was also discussed. At that time, the FCWPC requested that, in order to determine the Garden Conservancy's level of funding for FY 2012/13, a revenue projection be provided to the City demonstrating the proposed rate structure and resulting income, and that this projection be submitted in July for consideration during the budget meetings. While the FCWPC had requested at the May 17, 2012 meeting that a detailed income projections be provided, the Garden Conservancy maintains that, without City approval 18 Proposal for Increased Rates for the Miami Beach Botanical Garden Commission Memorandum July 18, 2012 Page 2 of3 for the proposed rate increases, it cannot accurately project revenues for the next fiscal year. Also, revenue projections cannot be based on prior years because they will not take into account any potential drop-off in bookings that may result due to increased rates. The Garden Conservancy notes that, due to the typical lead time involved in booking the larger events at the facility, which in some cases can be as much as a year ahead of time, most of the events on the books for the next fiscal year will have been booked at the current rate structure. If the new increased rates are approved by the City, they will go into effect on January 1, 2013, and the additional revenue will not be consistent in FY12/13. A full year of increased rates will be realized in FY13/14. Therefore, the Garden Conservancy has requested that the City's contribution remain at $137,228 for FY12/13. This is the same amount as the Garden Conservancy received during the past two fiscal years. On July 10, 2012, the FCWPC deferred review of the City's contribution until the City's final budget and other City contributions are reviewed, but recommended that the proposed rate increase be immediately approved. PROPOSED RATE INCREASE During the time the Botanical Garden was closed for construction, Conservancy staff conducted extensive market research and visited other facilities in Miami-Dade and Broward counties, to learn about their respective rental policies, pricing and amenities. The results of this research are summarized in the side-by-side comparison attached matrix, which includes the current and proposed rental rate structures for the Botanical Garden. It should be noted that the rates reflected for each of the venues is strictly limited to rental of their respective facilities and does not include catering or any additional services. Based on the attached schedule, the Conservancy is proposing to increase the rate for rental of the Banyan Room, which can accommodate up to 120 people, from $850 for a period of up to four hours, to $2,500 for non-City residents and/or business and $1 ,500 for City residents. Each additional hour would be charged at a rate of $200 per hour, reflecting an increase of $25 from the current plan. Also, under the new plan, the rental rate would also include access to the Great Lawn, which previously was mostly reserved for stand-alone events for up to 600 people. However, since the renovations have converted much of the area occupied by the Great Lawn into a signature water feature, it is now included as an additional amenity for renting the Banyan Room. For the remaining areas of the Garden that can still be rented out for smaller events, including the Palm Grove and the Japanese Garden, the rents under the new plan would also remain the same. Additional charges including state sales tax and insurance; an annual family membership fee of $50.00 for non-members; $25 per hour for a garden attendant and $125 per hour for janitorial services, shall also still apply under the new plan. Copies of the current and proposed rate plans for the Botanical Garden are included as Exhibit B to this Memorandum. It should be noted that compared to the rates charged by venues like Fairchild Tropical Garden in Coral Gables, the Deering Estate in Miami, the Bonnet House and Gardens in Ft. Lauderdale and the Shane Rowing Center and Bass Museum in Miami Beach, the rates being proposed for the Botanical Garden are reasonable and certainly viable. In addition, increased rental revenues may assist in reducing the need and/or level of the City's subsidy funding for the Garden in the future. 19 Proposal for Increased Rates for the Miami Beach Botanical Garden Commission Memorandum July 18, 2012 Page 3 of 3 RECOMMENDTION In light of the results of the market analysis, the proposed rates appear reasonable. Therefore, The Administration recommends authorization be granted for the proposed increased rental rates as they were presented to the FCWPC on May 17, 2012, and recommended for approval by FCWPC on July 10, 2012. Once approved by the Mayor and City Commission, the new rates could be in effect immediately. Regarding the City's annual contribution, it is difficult for an informed recommendation to be made by the Administration without having the benefit of projections or forecasts for revenues. Therefore, and in light of the Garden Conservancy's prediction that the revenues under the new rate structure would not significantly impact its budget until the second quarter of FY13/14, the Administration recommends that the City's contribution be considered as part of the annual budget process as in previous years. KGB/MS/AP/KOB Attachments: Miami Beach Botanical Garden Proposed New Rental Rates 20 RESOLUTION NO.---- A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A REQUEST BY THE MIAMI BEACH GARDEN CONSERVANCY, INC., TO INCREASE THE FACILITY RENTAL RATES FOR THE MIAMI BEACH BOTANICAL GARDEN, AS RECOMMENDED BY THE FINANCE AND CITYWIDE PROJECTS COMMITTEE ON JULY 10, 2012 WHEREAS, on January 17, 2007, the City executed a Management Agreement with the Miami Beach Garden Conservancy, Inc., for the management and operation of the Miami Beach Botanical Garden ( the Management Agreement) and WHEREAS, the Management Agreement expressed that the Botanical Garden shall be managed and developed as a multi-purpose community resource centered on an outstanding public botanical garden, and that the City and the Conservancy intend that the activities programmed in and pertaining to the Botanical Garden continuously increase in scope and number; and WHEREAS, on June 6, 2012, the Mayor and City Commission approved a renewal of the Management Agreement for an additional five-year term, commencing on July 1, 2012, through June 30, 2017; and WHEREAS, the Management Agreement requires that the Miami Beach Garden Conservancy, Inc. present, for approval by the City Manager and/or her designee, on or before July 31st of each year, a proposed line item budget identifying the funding it anticipates raising through facility rentals, grants, donations, and other sources, as well as the level of funding it is requesting from the City to subsidize the operations at the Botanical Garden; and WHEREAS, the Garden Conservancy has requested authorization for an increase of the rental rates at the facility; and WHEREAS, the Garden Conservancy maintains that, without City approval for the proposed rate increases, it cannot accurately project revenues for the next fiscal year; and WHEREAS, the Garden Conservancy conducted extensive market research and visited other facilities in Miami-Dade and Broward Counties, and compiled a proposed rate structure based upon comparable conditions in other facilities; and WHEREAS, compared to the rates charged by venues like Fairchild Tropical Garden in Coral Gables; the Deering Estate in Miami; the Bonnet House and Gardens in Ft. Lauderdale; and the Shane Rowing Center and Bass Museum in Miami Beach, the rates being proposed for the Miami Beach Botanical Garden are reasonable and viable; and WHEREAS, the proposed rate structure was discussed by the City's Finance and Citywide Projects Committee on May 17, 2012, and July 10, 2012; and 21 WHEREAS, the Finance and Citywide Projects Committee approved the proposed rate structure on July 10, 2012. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH that the Mayor and City Commission hereby approved a request by the Miami Beach Garden Conservancy, Inc. to increase the facility rental rates at the Miami Beach Botanical Garden; with such new rate structures attached and incorporated as Exhibit "A" to this Resolution. PASSED and ADOPTED this 181h day of July 2012. ATTEST: RAFAEL E. GRANADO, CITY CLERK MA TTl HERRERA BOWER, MAYOR 22 APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION AREA Butterfly Room Banyan Room, Terrace a Gmt Lawn Japanese Garden The Entire Garden EXHIBIT 'A' Miami Beach Botanical Garden Proposal New Rental Rates DESCRIPnON INCLUDES RENTAL RATE Slze-18' X 35' 3Tablesand tJSO.OO I 04 Hours !vent And A Venuefor40 40Chalrs Security Deposit: People s:ap.ao (From this deposit we will retain a non- refundable application fee of s100.oo that won't be refunc:t.d) Room Size3o' x (u) 8ft rectangular S2,JGO.GO I.,. Hours l'lltlntAMA SO' banquet table$ 11100 s.curil:y Daposibtlao.Do Venue forl.OO·p folding chalts (From this depOSit we will maln a non- People refundable appliCation fee of s :a.oo.oo that won't be refunded) Venue for .so For ceremonies and 1550M Jolt HCIUI'I&vent And A People CQc:lc.Wllsnu:eptlons Security DestOiib USO.OO Landscaped Area ONLY (From thls deposit we will retain a non· refundable application fee oft :a.oo.oo that won't be refunded) All areas (1.2) 8ft rectang!Jiar t~t,po.oo lit HOI.II'S lvent And A Venue for soo banquet tables a (:r.zl 5ecuritr Depolit: People 6o" round tables a UOOD.oo aoo folding chairs (From this deposit we will retlln a non· refundable application fee of • 3.00.00that won't be muncltd) ADD HOURS t soo.ao,., Add Hour ' ....... ,.,.,, HGur (lndr.tftl factlit.y ~fn) • UJ.OO,., AM How (lncludesjacifA:y llttentltmt/WJ t JOO.OO ,.,.AM Hour (lncludafadllly llttentlfmt/ft) Please Note: Additional fas to the base rental fee and security deposit will be charge: .., Annual Membership fee of sso.oo. If not yet a member oftbe garden • .,796 Sales Tax to all rental amounts due Mlllmi Beach Bounical Garden • .., Fee for Garden Attendant is SJ.s.ao an hour and 13.25.00 fee for janitorial service$ • .,Insurance premium($) chllrge s :a...oo per expecbld numberofpartlcipantslprectlld number of people in attendance and liquor sold, If any, upon Miami Beach Botanlal Garden IRftlilel. Miami Beach Resident Rate $ 1,soo.oo plus additional fees. (Please provide ID proof or utility bills) 23 THIS PAGE INTENTIONALLY LEFT BLANK 24 COMMISSION ITEM SUMMARY Condensed Title: ~RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA SETIING 1) HE PROPOSED OPERATING MILLAGE RATE; 2) THE REQUIRED DEBT SERVICE MILLAGE RATE; 3) THE CALCULATED "ROLLED-BACK" RATE; AND, 4) THE DATE, TIME, AND PLACE OF THE FIRST PUBLIC HEARING 0 CONSIDER THE MILLAGE RATES AND BUDGETS FOR FISCAL YEAR (FY) 2012/13; FURTHER AUTHORIZING HE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY PROPERTY ~PPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA STATUTES Key Intended Outcome Supported: Ensure expenditure trends are sustainable over the long term; Control costs of payroll including salary and fringes; Minimize taxes; Improve the City's overall financial health and maintain overall bond rating Supporting Data (Surveys, Environmental Scan, etc.): • Over the last several years, the City of Miami Beach has adopted budgets that provided tax and fee relief while the providing improved services that address needs and priorities identified by the community and enhancing capital funding and reserves. However, these objectives became increasingly challenging in the last five years: first through property tax reform where tax rates were dramatically reduced; and subsequently with the decline in property values as well as increasing pension costs. In the last four years, the General Fund has absorbed more than $42 million in reductions (and more than $48 million and 269 positions across all funds) in a General Fund budget that is $244.3 million in FY 2011/12, almost 17 percent. Further, a total of approximately $20 million in employee "give-backs" were achieved between FY 2009110 and FY 2011/12. Along with efficiencies and reductions, this represents more than $68 million in combined "givebacks" and reductions over 5 vears. In FY 2010/11 the city's approach to addressing the then deficit of $32 million included a distribution of the shortfall between taxpayers and employees. Taxpayers had their tax rate increased from 5.6555 to 6.2155, an increase of 0.56 mills. The goal of the Commission has been to bring them back to that level as property values increase over time. It should be remembered that between FY 2009/10 and FY 2010/11 values declined by $2.6 billion driving the need for an increase in the millage. FY2012/13 values are still short ofFY2009/10 values by $1.6 billion. As values approach FY 2009/10 values, through further increases in the future, this will provide the opportunity for further reductions in the millage. In FY2011/12 the City took its first step in that direction with a reduction in the millage rate of 0.05 mills. The proposed millage rate for FY2012/13 reduces the operating millage by an additional 0.0533 mills and a total reduction of 0.0849 mills including the reduction in debt service millage for a total of 0.1033 mills between FY 2010/11 and the proposed FY 2012/13 millage. Over two years, this reduction represents 17% of the goal to get back to a millage rate of 5.6555. • On the employee side, the costs across all employee groups have increased due to cost of living adjustments, health cost increases and continuing increase in pension costs, driving the need for further employee givebacks. These ~ivebacks will similarly be discussed and evaluated over the summer. Issue: I Shall the Mayor and City Commission adopt the resolution? Item Summary/Recommendation: The total proposed operating millage is 6.1122 mills, including a general operating millage rate of 6.0039 and a Capital Renewal and Replacement millage of 0.1083. The proposed voted debt service millage rate is reduced from 0.2884 to 0.2568. Adviso Board Recommendation: Financial Information: ~ource of Funds: Amount Account I I 1 OBPI ifotal Financial Impact Summary The July 1, 2012 Certification of Taxable Value from the Miami-Dade County Property Appraiser reflects a 5 percent increase in Citywide property tax values from the July 1, 2011 tax roll certification. Given that the City Center RDA had a 5.4 percent increase, the increase outside the City Center RDA, which impacts the City's General Fund revenues, was 4.9 percent. The proposed millage reduces this increased revenue by approximately $1 million. City Clerk's Office Legislative Tracking: MIAMI BEACH 25 AGENDA ITEM --=-R.;_7..;..,.8~­ DATE ]-lf-/1.... C9 MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM, Kathie G Brooks, Interim City Manager ~A r-' DATE: July 18, 2012 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA SETTING 1) THE PROPOSED OPERATING MILLAGE RATE; 2) THE REQUIRED DEBT SERVICE MILLAGE RATE; 3) THE CALCULATED "ROLLED-BACK" RATE; AND, 4) THE DATE, TIME, AND PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER THE MILLAGE RATES AND BUDGETS FOR FISCAL YEAR (FY) 2012/13; FURTHER AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA STATUTES. ADMINISTRATION RECOMMENDATION The Administration recommends that the Mayor and City Commission adopt the attached resolution which authorizes the City Manager to transmit the following information to the Miami- Dade County Property Appraiser: 1) Proposed Millage Rates for FY 2012/13: General Operating 6.0039 mills Capital Renewal & Replacement 0.1 083 mills Sub-Total Operating Millage 6.1122 mills (6.16551ast year, .0533 decrease) Voted Debt Service 0.2568 mills (0.28841ast year .. 0316 decrease) Total 6.3690 mills (6.4539 last year, .0849 decrease) 2) "Rolled-Back" Rate (Truth in Millage) 5.6184 mills 3) The first public hearing to consider the proposed millage rates and tentative budgets for FY 2012/13 shall be Wednesday September 12, 2012 at 5:01 p.m., in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida The "Rolled-Back" millage rate for FY 2012/13 is the millage rate required to produce the same level of property tax revenues in the General Fund in FY 2012/13 as anticipated to be received in FY 2011/12. It is important to note, that the January 1, 2011 tax roll Citywide declined by $1.2 billion (5.6%) between the July 1, 2011 valuation and the July 1, 2012 valuation due to appeals, adjustments, etc, which is part of the reason the FY 2012/13 "roll-back rate" is dramatically lower than the FY 2011/12 current millage rate and lower than it would be if the rollback rate was only adjusted for the increase in revenues generated by higher property values. The area outside of City Center RDA, which impacts General Fund revenues, declined in value by almost $1 billion during the same period of time. 26 FY 2011/12 Proposed Millage Rate July 13, 2011 Page2 SUMMARY In FY 2010/11 the city's approach to addressing the then deficit of $32 million included a distribution of the shortfall between taxpayers and employees. Taxpayers had their tax rate increased from 5.6555 to 6.2155, an increase of 0.56 mills. The goal of the Commission has been to bring them back to that level as property values increase over time. It should be remembered that between FY 2009/10 and FY 2010/11 values declined by $2.6 billion driving the need for an increase in the millage. FY 2012/13 values are still short of FY 2009/1 0 values by $1.6 billion. As values approach FY 2009/10 values, through further increases in the future, this will provide the opportunity for further reductions in the millage. In FY 2011/12 the City took its first step in that direction with a reduction in the millage rate of 0.05 mills. The proposed millage rate for FY 2012/13 reduces the operating millage by an additional 0.0533 mills and a total reduction of 0.0849 mills including the reduction in debt service millage for a total of 0.1 mills between FY 2010/11 and the proposed FY 2012/13 millage. Over two years, this reduction represents 17% of the goal to get back to a millage rate of 5.6555. On the employee side, givebacks for general employees have continued, however wage concessions by the International Association of Firefighters (IAFF) and the Fraternal Order of Police (FOP) have expired. Further, the costs across all employee groups have increased due to cost of living adjustments, health cost increases and continuing increases in pension costs, driving the need for further employee givebacks. These givebacks will similarly be discussed and evaluated over the summer. The Administration is recommending a total combined millage rate for the City of Miami Beach of 6.3690. The total proposed operating millage declines to 6.1122 mills, including a general operating millage rate of 6.0039 and a General Fund Capital Renewal and Replacement millage of 0.1083. The proposed voted debt service millage rate is adjusted from 0.2884 to 0.2568, a decrease of 0.0316 mills. It is important to remember that in prior years, the City of Miami Beach significantly reduced tax rates as property values increased. Between FY 1999/00 and FY 2009/10, total combined City of Miami Beach property tax rates declined approximately 2.8 mills. In FY 2007/08 alone, the millage rate declined by approximately 1.8 mills, with annual savings to the average homesteaded property of over $400. Further, despite an adjustment of 0.56 mills in the operating tax rate in FY 2010/11, City of Miami Beach proposed combined millage rates today remain more than 2.3 mills lower than in FY 1999/00 (25 percent), and approximately 1.3 mills lower than 2007/08 when property values were above today's values. The budget development process is still underway, and the City's Proposed Work Plan and Budget will be released later this summer. However, at this point in time, the gap between current service level revenues and expenditures is estimated at $4.2 million primarily due to previously bargained salary increases for union positions and continued increases in health and pension costs, offset by increased revenues. It is also important to point out that, subject to Commission approval in September, the Current Service Level (CSL) (i.e. the cost of providing the same level of service as in the prior fiscal year-CSL expenditures) budget will need to be increased by approximately $200,000 to incorporate the impact of adjustments to the living wage that will be presented to the Commission at that time, as well as the maintenance impacts for capital projects coming on line by 2012/13. 27 FY 2011/12 Proposed Millage Rate July 13, 2011 Page3 Through refinements to revenue projections that typically occur over the summer (estimated at $1 million), potential efficiencies at levels similar to past years (estimated at $0.6 million), and use of approximately $4 million in projected increases in Resort Tax revenues, it is anticipated that the gap could be replaced by a surplus of approximately $1.2 million, which could be used to reduce the millage. Every million results in a reduction of 0.533 mills, which together with the 0.316 mills decline in debt service results in a total decline of 0.816 mills. However, at the July 9, 2012 Finance and Citywide Projects Committee (FCWPC) meeting, the Committee supported the transfer of approximately $1.4 million to the City's Pay-As-You-Go fund to support ongoing and previously unfunded capital projects but at the same time provided direction that the millage should be reduced. This reduction of 0.8 mills brings the gap back up to $1.4 million, This additional shortfall as well as any desired service enhancements would need to be addressed through additional efficiencies, employee givebacks or service reductions. POTENTIAL ADDITIONAL REDUCTIONS TO FURTHER REDUCE MILLAGE OR FUND ENHANCEMENTS At the July 9th FCWPC meeting, the committee gave direction to further explore opportunities to further reduce the millage rate, as well as offset increased funding for enhancements. As a result, efficiencies, employee givebacks and potential service reductions will be considered prior to final budget adoption in September. At the July 9th FCWPC meeting several residents spoke in favor of keeping the millage rate at the current level. These residents expressed the opinion that they would rather see no further service reductions or delays in capital projects, even if it meant paying higher taxes. Employee Givebacks One of the categories of cost under consideration is employee givebacks. The timing for this is appropriate given that all of the union contracts except AFSCME are set to expire on September 30, 2012 (AFSCME expires April 30, 2013). The process of negotiating these contracts is just beginning and potential givebacks will be discussed during those meetings. The FY 2009/1 0 budget, which was developed for year one of an equivalent contract period when the city was negotiation during part of the contract year, included $4.1 million in givebacks ($3.5 million in the General Fund). Subsequent negotiations resulted in actual savings of $1.5 million in FY 2009/10 and $15 million over 2 years. Examples of potential employee givebacks to be considered for FY 2012/13 include: freezes in merits and steps, Fair Labor Standards Act guidelines for overtime and holiday pay, and elimination of shift differential. Efficiencies, Service Reductions and Revenue Enhancements As with the preparation of budgets for the last four years, departments are continuing to analyze and present their budget from two perspectives: 1) a review for potential efficiencies, reorganizations to reduce cost, etc. without impacting services; and 2) performing a modified zero-based analysis of each department budget, identifying potential service reduction alternatives versus core functions. For each of the potential service reductions, departments 28 FY 2011/12 Proposed Millage Rate July 13, 2011 Page4 provided the type of impact and the magnitude of the impact. Core functions were defined as those functions which, if cut, render it impossible for the department to provide basic service at a reasonable level. The July 25, 2012 FCWPC is scheduled for the review of potential efficiencies, potential service reductions and revenue enhancements. While the proposed operating millage recommended for adoption reflects today a modest amount of decrease based on discussions at FCWPC meetings on July gth and 1Oth, it is anticipated that additional cost reductions or revenue enhancements recommended by the Committee at subsequent meetings will be used to further reduce the millage or provide service enhancements. BACKGROUND Over the last several years, the City of Miami Beach has adopted budgets that provided tax and fee relief while at the same time providing improved services that address needs and priorities identified by the community (primarily in public safety, cleanliness, landscaping and beautification, recreation and cultural arts programming, renewal and replacement funding for our facilities, and building/development functions); and providing structural changes that enhance capital funding and reserves. However, these objectives became increasingly more challenging in the last five years: first through property tax reform where tax rates were dramatically reduced to offset increases in property values; and subsequently with the decline in property values without revisions to the property tax rate, as well as increasing pension costs. In the last four years, the General Fund has absorbed almost $42 million in reductions (approximately 17 percent of the $244 million FY 2011/12 General Fund budget) and reductions of more than $48 million and269 positions across all funds. Further, a total of approximately $15 million in employee "give-backs" were achieved between FY 2009/10 and FY 2010/11, and $20 million through FY 2011/12, through a combination of freezing cost of living adjustments for all employees for two and one-half years, elimination of merit increases for all employee except members of the Fraternal Order of Police (FOP) and International Association of Firefighters) IAFF, increased contribution to pension for all employees except members of FOP and IAFF, pension plan changes for the Miami Beach Employees Retirement Plan, increased contributions for take-home vehicles by FOP members for 18 months, reduced holiday pay for IAFF members, and increased contributions to health insurance by members of the FOP and IAFF for 18 months. Along with more than $48 million in reductions, this represents a/most $69 million in combined "givebacks" and reductions over 5 years. 29 FY 2011/12 Proposed Millage Rate July 13, 2011 Page5 FY2011/12 Adopted General Fund $Impacts FT Public Safety ($352,755) - Operations (89,331) (1.4) Administrative Support (61 ,184) (1.0) Econ & Cultural Dev - - Cit)Wide (75,000) - Subtotal $ (578,270) (2.4) Transfers (114,115) - Total $ (692,385) (2.4) Internal Service Funds (100,000) - Enterprise Funds (774,293) (7.6) GRAND TOTAL REDUCTIONS $ (1,566,678) (10.0) I, I GIVEBACKS GRAND TOTAL REDUCTIONS AND GIVEBACKS $ (1,566,678) (10.0) 5-Year Total PT $Impacts FT PT -$ (7,635,095) (69.0) 1.0 -{5,805,867) (61.0) (23.0) 1.0 (2,858,694) (32.9) 1.0 -(1 '193,426) (17.0) - -(1 ,467,642) - - 1.0 $ (18,960,724) (179.9) (21.0) -(22,734,851) -- 1.0 $ (41,695,575) (179.9) (21.0) -{3,498,225) (37.1) - -{3,333,021) (39.0) 8.0 1.0 $ (48,526,821) (256.0) (13.0) I $ {20,349,360) 1.0 $ (68,876,181) (256.0) (13.0) * FY 2010/11 Budget included reductions for contracting out/converting positions to part-time mid-year, resulting in $221 ,901 in department savings offset by increased operating contingency in the General Fund. These were not implemented and the FY 2010/11 reductions shown above exclude these "Plan B" reductions ** The City Center RDA also includes the reduction of 1 full time position as part of minimal service impact efficiencies (4 full time positions as part of "Plan B" were not implemented) Although the economy has stabilized, the impact of the recent recession has impacted both property tax revenues as well as pension costs for FY 201 0/11 and FY 2011/12 and likely further into the future. Therefore, the City's strategy continues to consider the long term financial sustainability of the City. Beginning with the development of the FY 2009/1 0 budget, a strategy was developed to address short-term, mid-term and long-term financial needs. • Strategies to address short-term financial needs included ongoing efficiencies and wage concessions by employees. • Mid-term financial sustainability was addressed by pension concessions from current employees in the Miami Beach Employees Retirement Plan • Longer term financial sustainability is enhanced by the pension plan restructures that have been put in place for new employees in the Miami Beach Employee Retirement Plan. For example, for General Employees, the plan restructure proposed for new employees is projected by the City's actuary to reduce the City's annual required contribution by almost $1 million in FY 2012/13, with additional reductions annually as the number of employees in the Miami Beach Employees Retirement Plan hired after October 1, 2010 continues to increase. Further, additional pension plan reform recommendations have been developed by the City's Budget Advisory Committee for the Fire and Police Pension Plan which are anticipated to be reviewed by the Commission over the summer. All of the givebacks achieved, except the 18 month increased contribution to health by FOP and IAFF and the increased contributions for take-home vehicles by FOP members for 18 months, represent ongoing, recurring savings to the City and the employee give-backs contribute significantly towards the City's strategic goal (key intended outcome) to control payroll costs. 30 FY 2011/12 Proposed Millage Rate July 13, 2011 Page6 INITIAL BUDGET GAP On the revenue side for FY 2012/13, based on the July 1, 2012 Certification of Taxable Value from the Miami-Dade County Property Appraiser, values of existing properties increased by 5 percent from the July 1, 2011 tax roll certification. This increase compares to taxable value increases of at least 8 percent per year from July 1, 2001 through July 1, 2007, but decreases of an average of 6.4% per year between FY 2008/09 and FY 2011112. In total, revenues are expected to increase by $5.3 million for FY 2012/13 principally due to increased property tax as a result of higher property values as well as increased licenses and permits revenue offset by decreases across a number of categories. These decrease include decreases in the following categories: other taxes due to declining telephone utility tax revenue, intergovernmental revenue due to trends in gas tax revenue and revenues received for 911 costs which have been moved to a separate fund, charges for services due to fire transport fees, fines & forfeits due to lower than expected red light camera revenue, investment interest due to market conditions, miscellaneous revenue due to corporate sponsorship one-time signing bonus revenue in FY 2011/12 and other revenue due to a small decrease in the year end set aside of surplus revenue. Further, similar to the FY 2010/11 and FY 2011/12 budgets, FY 2012/13 CSL revenues reflect the use of $3.4 million in prior year surplus specifically set aside for this purpose along with $7.2 million in prior year Parking Fund operating surplus as planned last year during the development of the FY 2011/12 budget. Building Department reserves of $1.5 million are also included. On the expenditure side, CSL expenditures typically have increased between 6% and 8% annually due to salary and benefit increases and other normal cost of living adjustments. In FY 2012/13, increases are estimated to result in an approximately $9.5 million (3.9%) increase in expenditures, the majority of which is due to the following: • A $1.5 million increase to reflect previously bargained salary adjustments for employees, including the impact of 5% step increases for employees not at the maximum of their range in the FOP and IAFF bargaining units; and a maximum of 2 percent performance-based merit increase for employees in the Government Supervisor's Association (GSA) bargaining unit, the American Federation of State, County and Municipal Employees bargaining unit (AFSCME) and unclassified employees. There is no COLA included for any employees nor are there merits for CWA employees consistent with the status quo of their current agreement. • A $0.2 million increase primarily due to Fire Department overtime cost. • A $4.1 million increase in pension costs which includes an increase of approximately $6.1 million ($7.6 million citywide) offset by a onetime credit of $2.1 million ($2.5 million citywide), as well as $0.1 million increase in other pension costs. • A $1.6 million increase in health care costs which reflects both an anticipated 10% increase in health insurance costs as well as the impact of the expiration of the IAFF and FOP 5.0 percent of salaries to reduce city health costs. • A $0.3 million increase in Other Benefits, primarily due to leave payouts associated with employees leaving employment with the City. • A $3.2 million Increase in Internal Service Fund charge-backs to Departments primarily due to similar increases in salary and pension costs as described above that are then charged back to the General Fund, as well as equivalent increases in health insurance costs for retirees, increases in Police liability claims and increases in debt service for fleet vehicles. It is important to note that fuel prices in FY 2012/13 are budgeted at current prices. Should 31 FY 2011/12 Proposed Millage Rate July 13, 2011 Page 7 prices increase further, the General Fund will need to fund these increases. • A $1.5 million drop in other operating costs primarily due to the offsetting move of 911 expenditures to a separate fund, decreased rent as Fire Prevention is now in a city facility, decreased copier rental costs associated with the new contract, as well as continued refinement and efficiencies in operating needs. • A $.1 million increase in capital costs due to increased transfers to the Renewal and Replacement Fund as a result of the increased values and the dedicated millage. The resulting gap between General Fund CSL expenditures and CSL revenues as of the July 1, 2011 Certified values is approximately $4.2 million, and improved from the June 1 estimate by approximately $1 million. Attachment 1 summarizes the revenues and expenditures. DECISION-MAKING PROCESS Development of the FY 2012/13 budget began early with a discussion at the June 6th Committee of the Whole meeting that included a review of the preliminary General Fund budget with projected revenues and expenditures. Primary drivers for revenues and expenditures were discussed with the Committee. Additional budget briefings were held with the FCWPC on July 9th and July 1oth The next meeting is scheduled for July 25, 2012 to review potential employee givebacks, efficiencies, potential service adjustments and enhancements, and potential revenue enhancements. It is anticipated that the Proposed Work Plan and Budget that will be published later this summer will continue our focus on providing "value of services for tax dollars paid". STATUTORY REQUIREMENTS FS 200.065, entitled "Method of Fixing Millage" establishes specific guidelines that must be used by all local government entities in setting millage (property tax) rates. Under the statute, the City is required, within 35 days of receipt of the "Certification of Taxable Value" (received July 1, 2011 ), to advise the Miami-Dade County Property Appraiser of the proposed general operating millage rate, the calculated "rolled-back" rate and the date, time, and place of the first public hearing to consider the proposed millage rates and tentative budgets for FY 2012/13. The required Debt Service millage rate must also be set at the same time as the general operating millage. After setting the proposed operating millage rate, the Commission may, at any time prior to the final adoption, lower the rates by adjusting priorities. However, increasing the millage rate may only be accomplished by an expensive mailing and advertising process to every property owner on Miami Beach. ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH On July 1, 2012, the City received the "2012 Certification of Taxable Value" from the Property Appraiser's Office stating that the taxable value for the City of Miami Beach is $23,072,321,980 including $96,864,87 4 in new construction. The preliminary 2012 value represents an increase of $ 1.1 billion or 5.0 percent more than the July 1, 2011 Certification of Taxable Value of $21 ,978,289,928 , and an increase of 5.0 percent excluding new construction. The comparative assessed values for the Miami Beach Redevelopment Agency City Center 32 FY 2011/12 Proposed Millage Rate July 13, 2011 Page8 redevelopment district increased from $3,423,353,944 to $3,608,718,451, an increase of $0.1854, billion or a 5.4 percent increase in values over 2011 certified values. In addition, assessed values within the geographic area formerly known as the South Pointe redevelopment district increased from $3,446,036,913 to $3,618,097,360, an increase of $0.172 billion, or a 5 percent increase in values over 2011 certified values. As a result, taxable values in the areas outside the City Center RDA/South Pointe area increased by 4.9 percent, from $15.1089 billion to $15.8455 billion, an increase of $0.7366 billion. Citywide values excluding City Center increased from $18.555 billion to $19.463 billion, an increase of $0.9086 billion or 4.9 percent. Values outside the City Center area determine General Fund revenues. !Jan. I :lUI:.! Value (in Change from 2011 Jan. 1 2011 Value (in billions) billions) Value (Budget) AS Of JUly I KeVISea AS Ot JUly I 2011 Value (For 2011 (For FY FY Change in (For 2011/12 2011/12 2011 2011/12 $ Budget) ProJection) Values %Chg. Budget) (in billions) %Chg RDA -City Ctr $ 3.4234 $ 3.1299 $ (0.2935) -9% $ 3.6087 $ 0.1854 5.4% South Pointe * 3.4460 3.2393 (0.2067) -6% 3.6181 $ 0.1721 5.0% General Fund excl S. Pte 15.1089 14.3860 (0.7229) -5% 15.8455 $ 0.7366 4.9% Total Citywide $ 21.9783 $ 20.7552 $ (1.2231 I -6% $23.0723 $ 1.0940 5.0% Citywide Net of City Ctr -5% $ 18.555 $ 17.625 $ (0.930) $ 19.464 $ 0.9087 4.9% * Revised values for South Pointe not available, but are assumed to be impacted by the same percentage as citywide. DETERMINING THE OPERATING MILLAGE LEVY The first building block in developing a municipal budget is the establishment of the value of one mill of taxation, wherein the mill is defined as $1.00 of ad valorem tax for each $1,000 of property value. For the City of Miami Beach, this value for each mill is determined by the 2012 Certification of Taxable Value and has been set at $23,072,322. Florida Statutes permit a discount of up to five percent for early payment discounts, delinquencies, etc. Therefore, the 95 percent value of the mill is $21 ,918, 706. Impacts of Decline in Property Values In FY 2011/12, the operating millage rate for general City operations was adopted at 6.1655. Based on the July 1, 2012 Certification of Taxable Value, 6.1655 mills would generate approximately$ 135,139,781 in general tax revenues, an increase of $6,407,992 over FY 2011/12 budgeted property tax revenues Citywide (General Fund, City Center RDA and the South Pointe area). The General Fund property tax revenues will increase by $5.76 million, if the FY 2011/12 millage rate is maintained. Further, the January, 1 2011 tax roll Citywide declined by $1.2 billion between the July 1, 2011 valuation and the July 1, 2012 valuation due to appeals, adjustments, etc., which is part of the reason that the FY 2012/13 "roll-back rate" is significantly less than the FY 2011/12 current millage rate. The area outside of City Center RDA declined by almost $1 billion. 33 FY2011/12 Proposed Millage Rate July 13, 2011 Page9 Further, pursuant to recently enacted State legislation, the City may elect to approve millage rates above the roll-back rate up to the constitutional cap of 1 0 mills subject to the following votes by the Commission or referendum: • Option 1: A majority of the Commission is required to approve a millage up to 8.0844 (equivalent to 1 00.44 7% of prior year maximum ad valorem proceeds allowed by a majority vote, net of the impact of the Tax Increment Districts). The adjustment of 100.447% reflects the statewide per capita personal income increase for the prior year • Option II: A two-thirds approval (5 of 7 votes) of the Commission is required to approve a millage up to 8.8928 (equivalent to a 10% increase in the ad valorem revenues above Option 1). • Option Ill: A unanimous approval of the Commission or referendum is required to approve a millage above 8.8928 up to the 1 0 mill cap DETERMINING THE VOTED DEBT SERVICE MILLAGE LEVY The general obligation debt service payment for FY 2012/13 is approximately $5.9 million. Based on the July 1, 2012 Certified Taxable Value from the Property Appraiser, these bonds would require the levy of a voted debt service millage of 0.2568 mills. This represents a decrease of 0.0316 mills. OPTIONS FOR REDUCING THE MILLAGE An analysis was performed to determine what the impact on property tax revenue would be with differing levels of millage reduction. The following table illustrates the corresponding millage rate for several scenarios: Scenario one reduces the additional property tax revenue by $1 million (which is inclusive of the debt service millage reduction), reduces the overall millage by approximately 0.8 mills; Scenario two reduces one half of the additional property tax revenue and scenario three eliminates all of the additional revenue. General Fund Renewal & Operating Debt Total Change In Millage Replmnt Millage Millage Millage Total Millage Rate Rate Rate Rate Rate Rate Revised Gap 1 Decrease of $1 million from revenue at current millage rate 6.0039 0.1083 6.1122 0.2568 6.3690 (0.08) (5,192,000) 2 Decrease of 1/2 from revenue at current millage rate 5.9154 0.1083 6.0237 0.2568 6.2805 (0.17) (6,853,000) 3 Eliminate all additional property tax revenue 5.7736 0.1083 5.8819 0.2568 6.1387 (0.32) (9,514,000) State Defined Rollback rate 5.5101 0.1083 5.6184 0.2568 5.8752 (0.58) (13,145,000) The recommendation is to initially reduce the millage rate in accordance with Scenario one, which reduces the millage rate by .0849 with the possibility of further millage rate reductions to be determined before the budget is adopted. 34 FY 2011/12 Proposed Millage Rate July 13, 2011 Page 10 COMBINING THE OPERATING AND VOTED DEBT SERVICE MILLAGE LEVIES Illustrated below is a comparison of the combined millage rates and ad valorem revenues to the City of Miami Beach for FY 2010/11 (final) and FY 2011/12 (preliminary) including RDA. It is recommended that in the General Fund, 0.1 083 mills of the total operating millage continue to be dedicated to renewal and replacement, resulting in approximately $1.86 million in renewal and replacement funding. % lnc/(Dec) From From FY I lnc/(Dec) FY10/11 06/07 --~·-·-···---~----~Opera!~~---~---~,,· Capital Renewal & Replacement ---·~~,~~~::!c>,~J_Qp~ra,~,!lj_'!!~~~ge._, Debt Service If these recommended millage rates are tentatively adopted, then the City of Miami Beach's total operating millage will decrease by .0533 from the current year, and the voted debt service millage will decrease by 0.0316 mills. IMPACT OF JULY 18 PROPOSED MILLAGE LEVY IMPACT ON PROPERTY OWNERS Homesteaded Properties Amendment 10 to the State Constitution took effect on January 1, 1995 and limited the increase in assessed value of homesteaded property to the percentage increase in the consumer price index (CPI) or three percent (3% ), whichever is less. For 2011, the CPI has been determined to be 3.2 percent and therefore, the increase is capped at 3% for increased values as of January 1, 2012. Overall, based on an analysis of the homesteaded properties in the 2010 tax roll (the latest available from the Miami-Dade County Property Appraiser at this time), the median value of homesteaded property in Miami Beach for 2012 (as of August 2011) was $119,461, and the average $277,201. Applying the increase to the market value of all existing homesteaded properties from the 2011 tax roll, and the 3 percent CPI adjustment, the impact of the millage rate adjustment to homesteaded properties would be as shown in the following table. 35 FY 2011/12 Proposed Millage Rate July 13, 2011 Page 11 Homesteaded Properties FY 2011112 (as of January 1 2011)* with3%CPI Median Average Median Average Taxable Value $ 119,461 $ 277,201 $ 123,045 $ 285,517 City of Miami Beach Taxes Operating $ 737 $ 1,709 $ 752 $ 1,745 Voted Debt 34 71 32 73 Total Miami Beach $ 771 $ 1,780 $ 784 $ 1,818 $ Change in Taxes Operating $ 15 $ 36 Voted Debt (2) 2 Total Miami Beach $ 13 $ 38 * Source: Miami-Dade County Property Appraiser File as of 8/17/1 0 Historical Perspective It is important to remember that in prior years, the City of Miami Beach significantly reduced tax rates as property values increased. Between FY 1999/00 and FY 2009/10, property tax rates declined approximately 2.8 mills. In FY 2007/08 alone, the property tax rate declined by approximately 1.8 mills, with annual savings to the average homesteaded property of over $400. In addition, in FY 2005/06 and FY 2006/07, the City funded $200 and $300 homeowner dividends paid to homesteaded property owners in the City. Total Combined Millage ~ ,---------~==~=----------------- 01 co ""' \1) In "'I' M N '1"1 0 98 99 '00 '01 '02 '03 '04 'OS '06 '07 '08 '09 '10 11 12 13 Fiscal Years The combined millage rate overall remains approximately 2.3 mills lower than it was in FY 1999/00. In addition, the millage rate is almost 1.3 mills lower than it was in FY 2006/07, when property values were above the July 1, 2012 certified values. As a result, the proposed property tax levy is lower in FY 2012/13 than it was in FY 2006/07. 36 FY 2011/12 Proposed Millage Rate July 13, 2011 Page 12 Property Values and Tax Levy '07 '08 '09 '10 '11 '12 '13 t!liJIID Property Values -11-Tax Levy including Debt Property_ Value, Millage and Prope_rq Tax Levy Millage Rates Tax Levy (in millions) General Fund Final/ Total Taxable Revised (including S. Property Taxable Total General Total Pointe, and Values Value Citywide Fund/RDA including Renewal & Budget Year (billions) (billions) Millage Millage Debt Replcmnt) FY1997/98 $ 6.46 $ 6.40 9.2100 7.4990 $ 57.45 $ 46.78 FY1998/99 6.97 $ 6.87 8.9830 7.4990 $ 60.37 $ 44.66 FY1999/00 7.66 $ 7.54 8.6980 7.4990 $ 64.29 $ 47.36 FY2000/01 8.37 $ 8.22 8.5550 7.3990 $ 69.08 $ 49.75 FY2001/02 9.40 $ 9.22 8.3760 7.2990 $ 75.97 $ 54.37 FY2002/03 10.56 $ 10.41 8.3220 7.2990 $ 84.81 $ 61.05 FY2003/04 12.09 $ 11.85 8.1730 7.2990 $ 95.39 $ 68.17 FY2004/05 14.04 $ 13.86 8.1730 7.4250 $ 110.74 $ 79.38 FY2005/06 17.45 $ 17.15 8.0730 7.4810 $ 135.91 $ 111.69 FY2006/07 22.74 $ 22.26 7.6730 7.3740 $ 168.38 $ 140.31 FY2007/08 26.85 $ 26.14 5.8970 5.6555 $ 150.42 $ 125.33 FY2008/09 26.90 $ 25.89 5.8930 5.6555 $ 150.59 $ 125.94 FY2009/10 24.70 $ 23.24 5.9123 5.6555 $ 138.70 $ 115.73 FY2010/11 22.10 $ 20.97 6.5025 6.2155 $ 136.55 $ 112.14 FY2011/12 21.98 $ 20.76 6.4539 6.1655 $ 135.80 $ 111.29 FY2012/13 23.10 6.3690 6.1122 $ 140.91 $ 114.72 Tl he final millage column contains final property values except for FY 2011/12 which is not finalized yet. FIRST PUBLIC HEARING The first public hearing on the proposed millage rates and tentative budgets for FY 2011/12 must be held no later than 80 days (September 18th) or earlier than 65 days (September 3rd) from the start of the TRIM ("Truth In Millage") calendar (July 1st). Other guidelines are: 1) the public hearing cannot be scheduled on a Sunday or on those days utilized by Miami-Dade County or the Miami-Dade County School Board for their public hearings; and 2) if on a day 37 FY 2011/12 Proposed Millage Rate July 13, 2011 Page 13 other than Saturday, the public hearing must be after 5:00P.M. Based on these guidelines, the first hearing must be held between September 3rd and September 18th. These dates are unavailable for the following reasons: September 9 and 16 September 6 and 20 July 26th and September 5 Sundays Proposed dates for Miami-Dade County Public Hearings Miami-Dade County School Board Public Hearing Of the remaining days, it is recommended that the first public hearing be set for Wednesday, September 12, 2012 at 5:01 P.M., in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. KGB:PDW~ Attac~ 38 MIAMI BEACH FY 2012/13 GENERAL FUND BUDGET AS OF JULY 2012 GENERAL FUND REVENUES Property Taxes Property Taxes-Normandy Shores Other Taxes Licenses & Permits Intergovernmental Charges For Services Fines and Forefeits Interest Rents and Leases Miscellaneous Resort Taxes Other Reserves -Bldg Dept Parking Surplus Transfer Prior year set aside Total GENERAL FUND EXPENDITURES COLA: MERIT/STEP: HEALTH & LIFE INS Salaries Overtime/Other Wages Benefits Pension -F&P Pension -MBERP Other Pension Costs Health and Life Other Benefits Total Benefits Total Salary and Benefits Operating Internal Service Funds Capital & Debt Total I Net Revenues Less Expenditures ATTACHMENT 1 FY2012/13 Prelim. Est. as of FY2011/12 July 1 -Current $ Change from Budget Millage Budget % Change from Budget $110,394,099 $ 115,717,000 $5,322,901 4.8% $108,469 $ 129,000 20,531 18.9% $24,278,385 $ 24,023,000 (255,385) -1.1% $17,074,053 $ 19,383,000 2,308,947 13.5% $10,091,000 $ 9,547,000 (544,000) -5.4% $10,684,371 $ 10,437,000 (247,371) -2.3% $2,574,000 $ 2,192,000 (382,000) -14.8% $3,430,000 $ 2,983,000 (447,000} -13.0% $6,034,143 $ 6,439,000 404,857 6.7% $12,423,449 $ 11,750,000 (673,449) -5.4% $26,965,440 $26,965,000 (440) 0.0% 7,981,502 $7,978,000 (3,502) 0.0% $1,546,709 $1,500,000 (46,709) -3.0% $7,200,000 $7,200,000 -0.0% $3,551,120 $3,400,000 (151,120) -4.3% $ 244,336,740 $ 249,643,000 $ 5,306,260 -5% 0.0% 2% Max for General Merit except CWA-CWA 0%-Police and Fire Steps 10% increase (plus increases due to the expiration of IAFF and FOP health giveback) FY2012/13 FY2011/12 Prelim. Est. as of $ Change from Budget July 1 Budget % Change from Budget $101,126,813 102,645,000 $1,518,187 1.5% $10,419,043 $10,658,000 $238,957 2.3% $35,602,142 $37,330,000 $1,727,858 4.9% 10,964,684 $13,198,000 $2,233,316 20.4% 5,802,867 $5,913,000 $110,133 1.9% 9,147,658 $10,792,000 $1,644,342 18.0% 4,043,146 $4,302,000 $258,854 6.4% $ 65,560,497 $ 71,535,000 $ 5,974,503 9.1% $ 177,106,353 $ 184,838,000 $ 7,731,647 4.4% $26,983,687 $25,465,000 ($1,518,687) -5.6% 36,131,881 39,322,000 3,190,119 8.8% $4,114,819 4,210,000 $95,181 2.3% 244,336,740 253,835,000 9,498,260 2.2% I$ I$ (4,192,ooo) I $ (4,192,000)1 39 THIS PAGE INTENTIONALLY LEFT BLANK 40 RESOLUTION NO. _____ _ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT SETTING 1) THE PROPOSED GENERAL OPERATING MILLAGE RATE FOR THE NORMANDY SHORES NEIGHBORHOOD IMPROVEMENT DISTRICT; 2) THE CALCULATED ROLLED-BACK RATE; AND, 3) THE DATE, TIME AND PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER THE OPERATING MILLAGE RATE AND BUDGET FOR FISCAL YEAR (FY) 2012/13; FURTHER AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA STATUTES. WHEREAS, Section 200.065, Florida Statutes, has specified the method by which municipalities may fix the operating millage rate and adopt an annual budget for dependent taxing districts; and WHEREAS, the Mayor and City Commission of the City of Miami Beach, acting as the Board of Directors of the Normandy Shores Local Government Neighborhood Improvement District propose that the District's General Operating Millage Rate be set at 1.14 78 mills and that the Rolled-Back Rate be set at 1.0063 mills; and WHEREAS, the City of Miami Beach is required to advise the Miami- Dade County Property Appraiser of the Proposed Normandy Shores Neighborhood Improvement District Operating Millage Rate, the Rolled-Back Rate, and the date, time, and place of the first public hearing. NOW THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, that the following recommendations of the Administration be and are hereby ratified for transmittal to the Miami-Dade County Property Appraiser, as specified in Section 200.065, Florida Statutes: 41 Agenda Item R l (_ Date 1-l '51-f '2- 1) Proposed Normandy Shores Local Government Neighborhood Improvement District Operating Millage Rate for FY 2012/13 General Operating 1.1478 mills 2) "Rolled-Back Rate" 1.0063 mills 3) The first public hearing on the proposed Normandy Shores Local Government Neighborhood Improvement District operating millage rate and tentative budget for FY 2012/13 shall be held on Wednesday, September 12, 2012 at 5:02p.m., in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. ATTEST: PASSED and ADOPTED this 18th day of July, 2012. CITY CLERK 42 MAYOR APPROVED AS TO FORM & LANGUAGE &FO CUTION 1\ l~\~v Date MIAMI/4279053.3 RESOLUTION A RESOLUTION (i) authorizing the issuance of City of Miami Beach Health Facilities Authority Hospital Revenue Refunding Bonds, Series 2012 (Mount Sinai Medical Center of Florida) (the "Bonds") of the City ofMiami Beach Health Facilities Authority (the "Authority") in an aggregate principal amount not to exceed $145,000,000, for the purpose of providing funds to be used, together with other available moneys, if any, to: (a) refund all or portions of the currently outstanding City of Miami Beach Health Facilities Authority Hospital Revenue Bonds, Series 1998 (Mount Sinai Medical Center of Florida Project), and City of Miami Beach Health Facilities Authority Hospital Revenue Bonds, Series 2001A (Mount Sinai Medical Center of Florida Project), previously issued for the benefit of Mount Sinai Medical Center of Florida, Inc., (b) fund a deposit to a debt service reserve, if any, and (c) pay expenses in connection with the issuance of the Bonds and the refunding of the Refunded Bonds, to be issued under the provisions of a Trust Indenture and a Loan Agreement, and to be further secured by an Amended and Restated Master Trust Indenture, a Supplemental Master Trust Indenture for Obligation No. 9, an Obligation No. 9, a Fee and Leasehold Mortgage, Assignment and Security Agreement and an Amended and Restated Guaranty and Security Agreement; (ii) providing that the Bonds shall not constitute a debt, liability or obligation of the City of Miami Beach, Florida or of the State of Florida or of any political subdivision thereof but shall be payable solely from the sources provided therefor under the Trust Indenture; (iii) delegating to the Chairman, or in his absence, the Vice Chairman, the fixing of the terms of the Bonds and other details within the parameters set forth herein; (iv) authorizing the execution and delivery by the Authority of the Trust Indenture and the Loan Agreement; (v) approving the forms of Supplemental Master Trust Indenture for Obligation No. 9, Obligation No. 9 and Amended and Restated Guaranty and Security Agreement; (vi) providing for the redemption of the Refunded Bonds and authorizing, as necessary, the execution and delivery by the Authority of an Escrow Deposit Agreement and the purchase of Escrow Securities; (vii) authorizing the negotiated sale of the Bonds; (viii) authorizing the execution and delivery by the Authority of a Purchase Contract; (ix) appointing a Bond Trustee and Bond Registrar under the Trust Indenture; (x) approving the use of a Preliminary Official Statement and an Official Statement; (xi) authorizing the execution and delivery of additional documents required; (xii) recommending approval of the Bonds by the Mayor and City Commission of the City of Miami Beach, Florida; and (xiii) providing for other related matters. 43 Agenda Item R 11} Date 1-i~~( 2- WHEREAS, the City of Miami Beach Health Facilities Authority (the "Authority") has ·been created pursuant to the Health Facilities Authorities Law, being Chapter 74-323, Laws of Florida, and Part III of Chapter 154 of the Florida Statutes, as amended (the "Health Act"), and has been determined to be needed by the Mayor and City Commission (collectively, the "Commission") of the City of Miami Beach, Florida (the "City") under Section 4 of the Health Act; and WHEREAS, the Authority is also a "local agency" as defined in Section 3 of the Florida Industrial Development Financing Act, being Chapter 69-104, Laws of Florida, and Part II of Chapter 159 of the Florida Statutes, as amended (the "Industrial Act" and, together with the Health Act, the "Act"); and WHEREAS, the Authority is authorized pursuant to the Act to issue its refunding bonds and to loan the proceeds thereof to "health facilities" (as defined in the Health Act) located in the City to refund revenue bonds issued by the Authority for the benefit of health facilities; and WHEREAS, as a result of the current low interest rate environment, Mount Sinai Medical Center of Florida, Inc., a Florida not-for-profit corporation (the "Medical Center") is requesting the Authority to assist the Medical Center in providing funds to be used, together with other available moneys, if any, to (i) refund all or portions of the currently outstanding City of Miami Beach Health Facilities Authority Hospital Revenue Bonds, Series 1998 (Mount Sinai Medical Center of Florida Project) (the "Series 1998 Bonds"), and City of Miami Beach Health Facilities Authority Hospital Revenue Bonds, Series 2001A (Mount Sinai Medical Center of Florida Project) (the "Series 2001A Bonds;" the Series 1998 Bonds and Series 2001A Bonds or portions thereof to be refunded hereinafter referred to as the "Refunded Bonds"), previously issued for the benefit of the Medical Center, (ii) fund a deposit to a debt service reserve, if any, and (iii) pay MIAMI/4279053.3 2 44 expenses in connection with the issuance of the Bonds (hereinafter defined) and the refunding of the Refunded Bonds, through the issuance by the Authority of not to exceed $145,000,000 principal amount of City of Miami Beach Health Facilities Authority Hospital Revenue Refunding Bonds, Series 2012 (Mount Sinai Medical Center of Florida) (the "Bonds"); and WHEREAS, the Bonds will be issued under the provisions of a Trust Indenture (the "Trust Indenture") to be entered into between the Authority and U.S. Bank National Association, a national banking association, as trustee (the "Bond Trustee"), and the proceeds thereof will be loaned to the Medi?al Center and their repayment secured by a Loan Agreement (the "Loan Agreement") to be entered into between the Authority and the Medical Center; and WHEREAS, the Medical Center has previously entered into an Amended and Restated Master Trust Indenture (the "Master Indenture") with U.S. Bank National Association, a national banking association, successor master trustee (the "Master Trustee"), under which the Medical Center and certain other affiliated entities which may be included therein in the future are jointly and severally liable for the payment of obligations outstanding thereunder; and WHEREAS, in connection with the issuance of the Bonds by the Authority and the loan ofthe proceeds thereof to the Medical Center, the Medical Center will enter into a Supplemental Master Trust Indenture for Obligation No. 9 ("Supplemental Indenture No. 10") with the Master Trustee, supplementing and amending the Master Indenture, pursuant to which Obligation No.9 ("Obligation No. 9") will be issued securing the obligation of the Medical Center to make payments under the Loan Agreement in respect of the Bonds; and WHEREAS, Mount Sinai Medical Center Foundation, Inc., a Florida not-for-profit corporation (the "Foundation"), will guarantee to the Bond Trustee the payment of the principal of, redemption premium, if any, and interest on the Bonds, all as more specifically set forth in an MIAMI/4279053.3 3 45 Amended and Restated Guaranty and Security Agreement (the "Restated Guaranty Agreement") to be entered into between the Foundation and the Bond Trustee; and WHEREAS, as security for Obligation No. 9 and any other obligations outstanding under the Master Indenture from time to time, but subject to release in accordance with its terms, the Medical Center has previously delivered to the Master Trustee, a Fee and Leasehold Mortgage, Assignment and Security Agreement, as previously amended, which will be modified in connection with the issuance of Obligation No. 9; and WHEREAS, on this date, a public hearing was held in accordance with Section 147(£) of the Internal Revenue Code of 1986, as amended, for which there was reasonable public notice published on June 28, 2012 in The Miami Herald, for the purpose of giving all interested persons an opportunity to express their views on the proposed issuance of the Bonds; and WHEREAS, the Medical Center has advised the Authority that the Bonds will have an Investment Grade Rating from Fitch and Moody's (as those terms are defined in the Authority's Administrative Procedures); and WHEREAS, the Authority desires to authorize the issuance of the Bonds for the above described purposes and to recommend for approval to the Commission the issuance of the Bonds; and WHEREAS, the Authority further desires to authorize the sale of the Bonds through a negotiated sale to Raymond James & Associates, Inc., as underwriter (the "Underwriter"), since the Medical Center had requested such negotiated sale to the Underwriter and for the reasons hereinafter set forth. NOW THEREFORE, Be It Resolved by the City of Miami Beach Health Facilities Authority as follows: 4 MIAMI/4279053.3 46 Section 1. Findings. The Authority hereby finds and determines that: (1) The Medical Center is a "health facility" within the meaning of Section 154.205(8) of the Health Act and a "health care facility" within the meaning of section 159.27(16) of the Industrial Act. (2) Pursuant to Sections 154.209(10) and 154.235 of the Health Act and Sections 159.28(7) and 159.41 of the Industrial Act, the Authority is authorized and empowered to issue the Bonds for the purposes described herein. (3) The issuance of the Bonds by the Authority for the purposes described herein will serve a valid public purpose by advancing the commerce, welfare and prosperity of the City and its people. (4) The Authority and the City are each a "local agency" as defined m Section 159.27(4) ofthe Industrial Act. (5) Review and comment from the Health Council of South Florida, Inc. (the "Health Council") as to the issuance of the Bonds was requested and the Health Council has advised that it has no material concerns. (6) Pursuant to Section 218.385 of the Florida Statutes, as amended, the sale of the Bonds to the Underwriter on the basis of a negotiated sale rather than a public sale by competitive bid is in the best interest of the Authority and the Medical Center, and the Authority hereby further finds and determines that the following reasons necessitate such sale of the Bonds to the Underwriter through a negotiated sale: (a) Bonds issued by public bodies for the benefit of not-for-profit hospitals such as the Medical Center ("health care bonds") generally involve specialized situations and transactions which need detailed analysis, structuring and explanation throughout the 5 MIAMI/4279053.3 47 course of the issue by sophisticated financial advisors, investment bankers and similar parties, such as the Underwriter, experienced in the structuring of issues of health care bonds ("health care investment bankers"), much of which would not generally be available on a timely basis in the case of health care bonds issued pursuant to a public competitive sale. (b) Health care bond issues generally involve a rather detailed and often complicated explanation to potential investors of the structure of the issue, the nature of the underlying obligor and the impact upon each of the foregoing of Federal and state health care regulations, including Medicare and Medicaid practices and procedures, and the assistance of a health care investment banker in preparing necessary offering documents and related information is extremely desirable in ensuring full and accurate disclosure of all relevant information. (c) For the reasons described in (a) and (b) above and other related reasons, most of the health care bonds heretofore issued throughout the United States have involved participation throughout the structuring and offering process of health care investment bankers who have purchased or arranged for the purchase of the health care bonds through a negotiated sale rather than through a public sale by competitive bid; accordingly, the market may well be more receptive to an issue of health care bonds sold on a negotiated basis than to one sold by competitive public sale. (d) Finally, the market for health care bonds such as the Bonds is volatile, making the presence of the Underwriter, who has participated and will participate in the structuring of the Bond issue, desirable in attempting to obtain the most attractive financing for the Authority and the Medical Center. 6 MIAMI/4279053.3 48 Section 2. Authorization of the Bonds. There is hereby authorized the issuance, under and pursuant to the Trust Indenture, of the Bonds, to be designated as "City of Miami Beach Health Facilities Authority Hospital Revenue Refunding Bonds, Series 2012 (Mount Sinai Medical Center.of Florida)", in an aggregate principal amount not exceeding $145,000,000, and the loan of the proceeds thereof to the Medical Center to (i) refund the Refunded Bonds, (ii) fund a deposit to a debt service reserve, if any, as shall be determined by the Medical Center, and (iii) pay expenses in connection with the issuance of the Bonds and the refunding of the Refunded Bonds. The principal of, premium, if any, and interest on the Bonds shall not be deemed to constitute a debt, liability or obligation of the City or of the State of Florida or of any political subdivision thereof, but shall be payable solely from the sources pledged therefor under the Trust Indenture and neither the faith and credit nor any taxing power of the City or of the State of Florida or of any political subdivision thereof is pledged to the payment of the principal of, premium, if any, or interest on the Bonds. Section 3. Terms of the Bonds. The Bonds shall be payable as to principal and interest in lawful money of the United States of America in accordance with the provisions of the Trust Indenture, and shall be issued only as fully registered bonds without coupons in denominations of $5,000 and integral multiples thereof. The Bonds shall be initially issued in book-entry-only form through The Depository Trust Company, New York, New York ("DTC") and shall be registered in the name of Cede & Co. The Chairman ofthe Authority or, in his absence, the Vice ------~~---. -------·······---·--··· - Chairman of the Authority is hereby authorized on behalf of the Authority to approve, subject to the limitations contained herein, the final terms of the Bonds, which approval will be evidenced 7 MIAMI/4279053.3 49 by the execution of the Purchase Contract (hereinafter defined) on behalf of the Authority as provided herein. The aggregate principal amount of the Bonds shall not exceed $145,000,000; the interest rates on the Bonds shall result in net present value debt service savings on the Refunded Bonds of not less than 3% and shall not exceed the maximum rate permitted by law; the term of the Bonds shall not exceed 35 years; and the Bonds may be issued as serial and/or term bonds and may be subject to optional and mandatory redemptions and purchase as shall be provided in the Trust Indenture. The Bonds shall be initially dated such date as shall be approved by the Chairman, or in his absence, the Vice Chairman, and shall be executed on behalf of the Authority with the official manual or facsimile signature of its Chairman or, in his absence, its Vice Chairman and attested with the official manual or facsimile signature of a Designated Member (hereinafter defined). Section 4. Designation of Attesting Members. The members of the Authority, other than the Chairman or Vice Chairman to the extent the Chairman or Vice Chairman execute the documents described herein, (individually a "Designated Member"), are each hereby designated and authorized on behalf of the Authority to attest to the seal of the Authority and to the signature of the Chairman or Vice Chairman of the Authority as they appear on the Bonds, the Trust Indenture, the Loan Agreement, the Escrow Deposit Agreement (hereinafter defined), if any, and any other documents which may be necessary or helpful in connection with the issuance and delivery of the Bonds, the application of the proceeds thereof and the refunding of the Refunded Bonds. Section 5. Authorization ofExecution and Delivery of Trust Indenture. The Authority does hereby authorize and approve the execution by the Chairman or Vice Chairman and a 8 MIAMI/4279053.3 50 Designated Member of the Authority and the delivery of the Trust Indenture. The Trust Indenture shall be in substantially the form thereof attached hereto and marked Exhibit A and hereby approved, with· such changes therein as shall be approved by the Chairman or Vice Chairman executing the same, with such execution to constitute conclusive evidence of such officer's approval and the Authority's approval of any changes therein from the form of Trust Indenture attached hereto. Section 6. Authorization of Execution and Delivery of Loan Agreement. The Authority does hereby authorize and approve the execution by the Chainnan or Vice Chairman and a Designated Member of the Authority and the delivery of the Loan Agreement. The Loan Agreement shall be in substantially the form thereof attached hereto and marked Exhibit B and hereby approved, with such changes therein as shall be approved by the Chairman or Vice Chairman executing the same, with such execution to constitute conclusive evidence of such officer's approval and the Authority's approval of any changes therein from the form of Loan Agreement attached hereto. Section 7. Approval of Other Documents. The Authority does hereby approve the forms of Supplemental Indenture No. 10, Obligation No. 9 and Restated Guaranty Agreement and consents to the amendments contained in the Restated Guaranty Agreement in order to extend the guarantee thereunder to the payment of amounts due under the Loan Agreement. Supplemental Indenture No. 10, Obligation No.9 and the Restated Guaranty Agreement shall be in substantially the forms attached hereto and marked Exhibits C, D and E, respectively, and ------------- hereby approved, with such changes therein as shall be approved by the Chairman or Vice Chairman, with the execution of the Trust Indenture by such officer to constitute conclusive evidence of such officer's approval and the Authority's approval of any changes therein. 9 MIAMI/4279053.3 51 Section 8. Refunding and Redemption of Refunded Bonds. The Medical Center shall determine the Series 1998 Bonds and/or Series 2001A Bonds which shall constitute the Refunded Bonds, which Refunded. Bonds shall be called for optional redemption prior to maturity, and the date(s) of redemption of the Refunded Bonds, all as shall be provided in the Trust Indenture and, if applicable, the Escrow Deposit Agreement (hereinafter defined). In the event that all or any of the Refunded Bonds are not redeemed on the date of initial delivery ofthe Bonds, the Authority does hereby authorize and approve the execution by the Chairman or Vice Chairman and a Designated Member of the Authority and the delivery of an Escrow Deposit Agreement with respect to such Refunded Bonds (the "Escrow Deposit Agreement") to be entered into among the Authority, the Medical Center and the trustee for the Refunded Bonds (the "Refunded Bonds Trustee"), in the form customarily used by the Authority. In such event, there is also hereby authorized the purchase of Escrow Securities (as shall be defined in the Escrow Deposit Agreement) as shall be provided in the Escrow Deposit Agreement and the Chairman or Vice Chairman and the Refunded Bonds Trustee are hereby authorized to execute and/or file any necessary direction letters and subscription forms for the purchase of such Escrow Securities. Section 9. Application of Bond Proceeds. The proceeds of the Bonds shall be applied, together with certain other available moneys, if any, as provided in the Trust Indenture, the Loan Agreement and, if applicable, the Escrow Deposit Agreement. Section 10. Authorization of Negotiated Sale. Pursuant to the findings in Section 1 hereof, the Authority does hereby authorize and approve the sale of the Bonds to the Underwriter through a negotiated sale rather than a public sale by competitive bid. 10 MIAMI/4279053.3 52 Section 11. Authorization of Execution and Delivery of Purchase Contract. The sale of the Bonds in an aggregate principal amount not to exceed $145,000,000 to the Underwriter, at an aggregate purchase price reflecting an underwriter's discount not to exceed 1.10% of the aggregate principal amount of the Bonds, in accordance with a Purchase Contract (the "Purchase Contract") to be entered into among the Authority, the Medical Center and the Underwriter, is hereby in all respects authorized and approved and there shall be executed on behalf of the Authority in furtherance thereofthe Purchase Contract. The Authority does hereby authorize and approve the execution and delivery of the Purchase Contract on behalf of the Authority by its Chairman or Vice Chairman and such Purchase Contract shall be in substantially the form thereof attached hereto and marked Exhibit F, and hereby approved, with such changes as shall be necessary and appropriate to reflect the final terms of the sale of the Bonds by the Authority and such further changes therein as shall be approved by the Chairman or Vice Chairman executing the same, with such execution to constitute conclusive evidence of the award of the Bonds to the Underwriter and of such officer's approval and the Authority's approval of any changes therein from the form of Purchase Contract attached hereto; provided that the Purchase Contract shall comply with the provisions of this resolution and that the final terms of the Bonds contained in the Purchase Contract shall be within the parameters established in this resolution. Prior to the execution of the Purchase Contract by the Authority, the Authority must be presented with a disclosure statement prepared by the Underwriter in compliance with Section 218.385, Florida Statutes, which disclosure statement shall be filed in the records of the Authority. -------· Section 12. Appointment of Bond Trustee and Bond Registrar. U.S. Bank National Association, a national banking association, is hereby appointed the Bond Trustee and bond registrar (the "Bond Registrar") under the Trust Indenture. 11 MIAMI/4279053.3 53 Section 13. Approval of Preliminary Official Statement. The Authority hereby approves the use and distribution of the Preliminary Official Statement relating to the Bonds (the "Preliminary Official Statement") by the Underwriter in connection with the offer and sale of the Bonds, in substantially the form attached hereto and marked Exhibit G, with such changes as shall be necessary and appropriate to reflect the expected terms of the Bonds and to ensure accurate disclosure of all relevant information; provided, however, that except as specifically set forth in the Preliminary Official Statement, the Authority makes no representations with respect to the information contained in the Preliminary Official Statement. Section 14. Approval of Official Statement. The Authority hereby approves the use and distribution of the Official Statement relating to the Bonds (the "Official Statement") by the Underwriter in connection with the offer and sale of the Bonds in substantially the form of the Preliminary Official Statement attached hereto and marked Exhibit G, with such changes as shall be necessary and appropriate to reflect the final terms of the Bonds and to ensure accurate disclosure of all relevant information; provided, however,_ that except as specifically set forth in the Official Statement, the Authority makes no representations with respect to the information contained in the Official Statement. Section 15. Delivery ofthe Bonds. Upon the execution of the Bonds in accordance with the provisions of the Trust Indenture, the Chairman or the Vice Chairman shall deposit the same with the Bond Registrar for authentication and delivery upon the order of the purchasers thereof. The Bond Registrar is hereby requested to authenticate and deliver the Bonds in accordance with ----- the Trust Indenture. Section 16. Authorization of Execution and Delivery of Certain Additional Documents. The Authority does hereby authorize the subsequent execution and delivery of such additional 12 MIAMI/4279053.3 . 54 documents as may be required in connection with the issuance and sale of the Bonds, the application of the proceeds thereof and the refunding of the Refunded Bonds, in such form or forms and with such party or parties as shall be approved by the Chairman or Vice Chairman, including, without limitation, a Tax Certificate and Agreement to be entered into among the Authority, the Medical Center and the Bond Trustee and, if necessary, a letter of representations from the Authority to DTC. Section 17. Authorization and Ratification of Acts. The members, officers, agents and employees of the Authority are hereby authorized and directed to do all such acts and things and to execute all such documents, including, without limitation, the execution and delivery of any closing documents, as may be necessary to carry out and comply with the provisions of this resolution, the documents attached hereto as Exhibits A through G, respectively, and any documents executed and delivered pursuant to Section 16 hereof, and all of the acts and doings of such members, officers, agents and employees of the Authority which are in conformity with the intent and purposes of this resolution, whether heretofore or hereafter taken or done, shall be and are hereby ratified, confirmed and approved. Section 18. Recommendation to the City of Miami Beach, Florida. A public hearing having been conducted on this date pursuant to the provisions of Section 147(f) of the Internal Revenue Code of 1986, as amended, for the purpose of giving all interested persons an opportunity to express their views on the proposed issuance of the Bonds, for which hearing reasonable public notice was given, the Authority hereby recommends that the Commission ------- approve the issuance of the Bonds. Section 19. Severability. If any section, paragraph, clause or provision of this resolution shall be held to be invalid or ineffective for any reason, the remainder of this resolution shall 13 MIAMI/4279053.3 55 continue in full force and effect, it being expressly hereby found and declared that the remainder of this resolution would have been adopted despite the invalidity or ineffectiveness of such section, paragraph, clause or provision. Section 20. Effective Date. This resolution shall take effect immediately upon its adoption, and any provisions of any previous resolutions in conflict with the provisions herein are hereby superseded. Adopted this 12th day of July, 2012. (SEAL) ---~~------·---~------·--·-- MIAMI/4279053.3 14 56 STATE OF FLORIDA ) ) SS: COUNTY OF MIAMI-DADE) We, the undersigned, do hereby certify that we are duly qualified and acting Members of the City of Miami Beach Health Facilities Authority (the "Authority"). We further certify that we were present at the meeting of the Authority held on July 12, 2012 and according to the official records of the Authority in our possession the above and foregoing constitutes a true and correct copy of a resolution adopted at said meeting of the Authority. We further certify that at such meeting said resolution, pursuant to motion made by Sidney Goldin and seconded by Arthur Unger, was adopted by the following vote: Aye: Sidney Goldin Arthur Unger Nay: None Present but not voting (per F.S. Section 154.207(9)): Marc Umlas Absent: Mark Sinnreich Allison Stone We further certify that provision has been made for the preservation and indexing of said resolution, which is open for inspection by the public at all reasonable times at the office of the Chief Financial Officer of the City of Miami Beach, Florida, in the City of Miami Beach, Florida. ---------------------------------------··---. 15 MIAMI/4279053.3 57 · IN WITNESS WHEREOF, we have hereunto set our hands and affixed the official seal of the Authority this 12th day of July, 2012. Vice Chairman Member Member Member [SEAL] SUBSCRIBED AND SWORN to before me, a Notary Public in the State and County aforesaid, this lih day of July, 2012. (\ ~ ( ( o ary Public My Commission expires: J~'a :;27;MI3 [Notarial Seal] 16 MIAMI/4279053.3 58 EXHIBITS A THROUGH G ON FILE WITH THE AUTHORITY MIAMU4279053.3 59 THIS PAGE INTENTIONALLY LEFT BLANK 60 RESOLUTION NO. ----- A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER TO REJECT ALL PROPOSALS RECEIVED PURSUANT TO REQUEST FOR PROPOSALS NO. 23-11/12 TO PROVIDE SECURITY GUARD SERVICES (THE RFP) AND, IN THE ALTERNATIVE, RETROACTIVELY APPROVING THE THIRD RENEWAL TERM OF SECURITY ALLIANCE'S CURRENT CONTRACT FOR SECURITY GUARD SERVICES, DATED APRIL 2, 2007, WITH SUCH THIRD RENEWAL TERM BEING EFFECTIVE AS OF MAY 1, 2012, TO APRIL 30, 2013; AND FURTHER AUTHORIZING THE ISSUANCE OF A NEW REQUEST FOR PROPOSALS (RFP) FOR SECURITY GUARD SERVICES. WHEREAS, At its December 6, 2011 meeting, the Committee recommended that the Administration proceed to issue a new Request for Proposals (RFP) for security guard services, but that the results of the new RFP process be compared with the City's current agreement, and to determine whether it was in the City's best interest to award a new contract, or for security guard services with Security Alliance (the Current Agreement) exercise the last renewal term from under the Current Agreement; and WHEREAS, on January 11, 2012, the Mayor and City Commission authorized the issuance of RFP No. 23-11/12 for Security Guard Services; and WHEREAS, RFP No. 23-11/12 was issued on January 30, 2012, with a bid opening date of March 2, 2012 in which ten (1 0) proposals were received; and WHEREAS, on March 20, 2012, the City Manager via Letter to Commission (LTC) No. 082-2012, appointed an Evaluation Committee (the "Committee") consisting of the following individuals: • Lt. Eduardo Yero, Community Affairs Unit and Contracts Administrator, Police • Department; • Recio Alba, Financial Analyst Ill, Parking Department; • Gabriel J. Paez, Miami Beach Resident, Citizens Police Academy Graduate and Alumni; • Nick Pietrocarlo, Miami Beach Resident, Citizens Police Academy Graduate and Alumni (Chair); • Cornelius O'Regan, Police Support Services, Police Department; and ·• Carol Lang, Miami Beach Resident, Co-Treasurer of the Citizens Police Academy; and WHEREAS, the Committee convened on April 2, 2012 to shortlist the proposals and were also provided with an overview of the project, information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law, general information on the scope of services, Performance Evaluation Surveys, and additional pertinent information from all responsive proposers; and WHEREAS, the Committee unanimously ranked and short-listed ·the following four (4) proposers and invited them to return for interviews 1. Allied Barton; 2. Security Alliance; 3. G4S Secure Solutions; 4. Kent Security; and 61 Agenda Item R1 0 Date 1-(l...-I"Z..,. WHEREAS, on April 16, 2012, the Committee reconvened to listen to 1 0-minute presentations from each short-listed proposer, followed by a 20-minute Question and Answer (Q&A) session; and WHEREAS, the Committee unanimously recommended that the Administration enter into negotiations with the top top-ranked proposer, Security Alliance; and should the negotiations be unsuccessful, that it negotiate with the second ranked proposer, Allied Barton; and WHEREAS, an analysis was conducted to compare the results of the new RFP process to the Current Agreement, in order to determine whether it would be in the City's best interest to either authorize the negotiations and, if successful, award a new contract pursuant to the new RFP, or, in the alternative, reject proposals and renew the Current Agreement for the last and final one year renewal term; and WHEREAS, after considering the review and recommendation of the Committee, as well as reviewing the Administration's analysis with regard to the City's options (i.e. accept a proposal vs. rejection of all proposals and, in the alternative, exercise the third renewal term under the Current Agreement), the City Manager has exercised her due diligence and recommends that it would be in the City's best interest to authorize the Administration to renew the Current Agreement for the third (and last) one year renewal term; and WHEREAS, in exercising the last renewal term under the Current Agreement, the City Manager further recommends that the Administration limit the adjustment of the billing rate to the straight dollar to dollar (plus FICA/MICA) for the proposed living wage adjustment, effective October 1, 2013; and WHEREAS, the Manager further recommends that the City Commission authorize the issuance of a new RFP for security guard services. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the City Manager to reject all proposals received pursuant to Request for Proposals No. 23-11/12 to Provide Security Guard Services (the RFP) and, in the alternative, recommends retroactively approving the third renewal term of Security Alliance's current contract for security guard services, dated April 2, 2007, with such third renewal being effective as of May 1, 2012 to April 30, 2013. The Manager further recommends authorizing the issuance of a new Request for Proposals (RFP) for security guard services. PASSED AND ADOPTED THIS ___ 'DAY OF ___ _,..;2012. ATTEST: CITY CLERK ---------------~APPROVED AS TO MAYOR FORM & LANGUAGE 6 FOR EXECUTION T:\AGENDA\2012\7-18-12\RFP 23-11-12 Security Guard Services Reject and Renew-R 1\~t-\\v Date 62 RESOLUTION NO.--------- A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN EMPLOYMENT AGREEMENT BETWEEN THE CITY AND KATHIE G. BROOKS, ENGAGING MS. BROOKS AS INTERIM CITY MANAGER FOR THE CITY OF MIAMI BEACH WHEREAS, on June 8, 2012, the Mayor and Commission appointed Kathie G. Brooks as Interim City Manager (Manager) of the City of Miami Beach (City); and WHEREAS, the Manager desires to accept the position pursuant to the terms and conditions set forth in the attached Employment Agreement. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and authorize the Mayor and City Clerk to execute the attached Employment Agreement between the City and Kathie G. Brooks, engaging Ms. Brooks as Interim City Manager for the City of Miami Beach. PASSED AND ADOPTED this _____ day of _____ 2012 ATTEST: Rafael Granado, City Clerk Matti Herrera Bower, Mayor F:\ATIO\AGUR\AGREEMENT\Kathie Brooks-Employment Agreement RESO 7-12-12.docx 63 Agenda Item R'7 Q Date 7-t 8-LZ.. EMPLOYMENT AGREEMENT This Employment Agreement (Agreement) is made and entered into as of the 18th day of July, 2012, by and between the City of Miami Beach, a municipal corporation (City), and Kathie G. Brooks (Manager). The City and Manager may also be referred to herein, individually, as a "Party" and, collectively, as the "Parties." WITNESETH: WHEREAS, the City desires to secure and retain the services of Manager as the Interim City Manager of the City of Miami Beach during such time as the City Commission conducts its search process for a new permanent City Manager; and WHEREAS, the Manager desires to accept the position under the terms and conditions contained in this Agreement; and WHEREAS, the Parties acknowledge that in accepting this engagement, Manager has taken (and been given) leave from her position as the City's Director of the Office of Budget and Performance Improvement (Director) and that, upon the normal expiration of the term of this Agreement and successful completion of her services as the Interim City Manager, it is the intent of the Parties that she return to her position as Director, or such other higher level executive staff level position as the new permanent City Manager may appoint her to (since it is contemplated that, during the term of this Agreement, the City will have conducted and successfully completed the aforestated search process for a permanent City Manager). NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: Section 1. Duties The City hereby agrees to engage Manager, and Manager agrees to be engaged, as the Interim City Manager, to perform the functions and duties of the City Manager, as specified in the City Charter and the City Code. Section 2. Term a. The term of this Agreement (Term) and, accordingly, the Manager's services under this Agreement, shall be deemed to have commenced retroactively as of July 8, 2012 (Commencement Date), and shall terminate on January 7, 2013 (Termination Date), subject to the earlier termination or extension provisions set forth herein. Upon the normal termination of this Agreement, Manager shall automatically revert to her position as Director, or shall accept such other higher executive staff level position as the new permanent City Manager may appoint her to; provided, however, that if such position is not acceptable to Manager, in her sole and reasonable discretion, and Manager elects to terminate her employment with the City, then Manager shall be entitled to a severance 1 64 payment equal to A) 20 weeks salary at the rate of pay in effect upon the date of termination; and B) 20 weeks of the benefits listed in Section 7 through 9 of the Agreement (Items A and B shall collectively be defined as the Severance Payment). b. The Term of this Agreement may be extended by mutual agreement of the Parties, and by written amendment to this Agreement duly executed by the Parties and approved by the Mayor and City Commission. c. Notwithstanding subsection 2(a) herein, this Agreement may be terminated by the City Commission at any time, without liability to the City, in the event the City Commission engages the new, permanent City Manager prior to the Termination Date. In the event of a termination of this Agreement under this subsection 2(c), Manager shall either: (i) automatically revert to her position as Director; or (ii) shall accept such other higher executive staff level position as the new permanent City Manager may appoint her to; provided, however, that if such position is not acceptable to Manager, in her sole and reasonable discretion, and Manager elects to terminate her employment with the City, then Manager shall be entitled to a severance payment equal to A) 20 weeks salary at the rate of pay in effect upon the date of termination; and B) 20 weeks of the benefits listed in Section 7 through 9 of the Agreement (Items A and B shall collectively be defined as the Severance Payment). d. In addition to the termination provision provided in subsection 2(c) herein, the City Commission may also terminate this Agreement, at any time, without cause and for convenience, upon fifteen (15) days prior written notice for Manager. In the event of such termination, Manager's remedies shall be the same as those provided in subsections 2(c)(i) and (ii) hereof. e. In the event this agreement is terminated pursuant to subsections 2(a), 2(c) or 2(d), and the Manager elects to either (i) automatically revert to her position as Director; or (ii) accept such other higher executive staff level position as the new permanent City Manager may appoint her to, it is contemplated that her salary will be adjusted to the level set forth by the City's standard practice when an employee moves from a higher level position to a lower level position. Section 3. Exclusivity of Service The Manager agrees to remain in the exclusive service of the City as long as this Agreement remains in full force and effect; provided, however, that nothing in this Section shall be construed to preclude occasional teaching, writing, pro bono activities, community, and civic or charitable work, as is customary in high executive positions. Section 4. Termination for Cause The City Commission may, at any time during the Term, by majority vote, terminate this Agreement for cause, as reasonably determined by the City Commission; provided, however, that prior to any such termination being effective, the Manager shall be given at least thirty (30) days prior written notice of such termination. "Cause" shall be defined as: malfeasance, misfeasance, or nonfeasance; fraud; conviction of felony; refusal to perform the duties and responsibilities of the position; and/or committing any act which is found to be a violation of any applicable City of Miami Beach, State, or Federal, law protecting the rights of City employees. 2 65 In the event the Manager is terminated for cause, the City shall have no obligation to pay, and the Manager shall have no right to collect, the Severance Payment under this Agreement, unless the Parties otherwise agree. Section 5. Voluntary Resignation In the event the Manager voluntarily resigns her position with the City prior to the Termination Date, then the Manager shall give the City at least thirty (30) days advance written notice and the City shall have no obligation to pay, and Manager shall have no right to collect, the Severance Payment under this Agreement, unless the Parties otherwise agree. Section 6. Salary The City agrees to pay the Manager for services rendered pursuant to this Agreement a salary annualized at Two Hundred and Twenty Thousand Dollars ($220,000), payable in bi-weekly installments at the same time as other employees of the City are paid. In addition, the Manager shall be entitled to an automobile allowance, as provided in Section 7; health and life insurance benefits, as provided in Section 9; continued participation in the Miami Beach Employees' Retirement Plan as provided in Section 10, at the respective employer/employee contribution level based upon her annualized salary as Manager; and such other amenities which are customarily provided to other general unclassified employees of the City. Section 7. Automobile The Manager shall receive an automobile allowance commensurate with that of an Assistant City Manager position, in recognition of her use of her personal automobile for City business. Section 8. Vacation and Sick Leave The Manager shall be entitled to accrued vacation, sick, and other City permitted leave in the same manner as other general unclassified employees of the City, including the same provisions governing payment thereof upon termination of employment. Section 9. Health and Life Insurance The City agrees to pay the premiums for the Manager for the following insurance policies, up to the amount and to the extent that the City would pay such premiums (or portions of such premiums as the case may be) for other general unclassified employees of the City of Miami Beach: life, accident, dental, sickness, major medical and dependants' coverage group insurance covering the Manager and her dependents; with all such policies to be of the same type and manner as those that are made available to other general unclassified employees of the City. 3 66 Section 10. Retirement The Manager will remain a member of the Miami Beach Employees' Retirement Plan so long as her engagement continues. Section 11. Dues and Subscriptions The City agrees to budget and to pay for the professional dues and subscriptions of the Manager necessary for her continuation and full participation in national, regional, state and local associations and organizations necessary and desirable for the Manager's continued professional participation, growth and advancement, and for the good of the City. Section 12. Professional Development a. The City hereby agrees to budget for and to pay the travel and subsistence expense of the Manager for professional and official travel, meetings and occasions adequate to continue the professional development of the Manager, and to adequately pursue necessary official and other functions for the City. b. The City also agrees to budget for and to pay for the travel and subsistence expenses of the Manager for those courses, institutes and seminars that are necessary for the professional development of the Manager. Section 13. General Expenses The City recognizes that certain expenses of a non-personal and generally job- affiliated nature are incurred by the Manager and agrees to reimburse or to pay said general expenses, and the City's Finance Department is hereby authorized to disburse such monies upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits. There shall be an annual review of those expenses by the City's independent auditor. Section 14. Organization Membership The City recognizes the desirability of representation in and before local civic, social, and other organizations, and the Manager is authorized to become a member of such civic clubs or organizations, for which the City shall pay all job related expenses. No civic club or organization authorized hereunder may engage in discrimination as to race, sex, sexual orientation, color, creed, religion, national origin, or disabilities. Section 15. Bonding The City shall bear the full cost and any fidelity or other bonds required of the Manager under any law or ordinance. Section 16. Other Terms and Conditions of Employment a. The City Commission shall fix any such other terms and conditions of employment, as it may reasonably determine from time to time during the Term, 4 67 relating to the performance of the Manager; provided such terms and conditions do not reduce the salary and benefits provided in Sections 6, 7, 8 and 9 of this Agreement, (except for a reduction or reductions in accordance to Section 17 hereof), nor conflict with the City Charter or any other law. b. All provisions of the City Charter and Code, and regulations and rules of the City relating to vacation and sick leave, holidays, other fringe benefits, and working conditions, as they now exist or hereafter may be amended, shall also apply to the Manager as they would to any other general unclassified employee of the City. Section 17. No Reduction of Benefits The City shall not at any time during the Term reduce the salary or those benefits of the Manager, provided in Sections 6, 7, 8 and 9 of this Agreement, except to the degree of a reduction (or reductions) in salaries and/or benefits which are made across-the-board for and apply to all general unclassified employees of the City. Section 18. Computer/Equipment The City shall pay for all equipment, systems software and portable communications equipment necessary for the Manager. Section 19. Notices Notices pursuant to this Agreement shall be given by deposit in the custody of the U.S. postal Service, postage prepaid, addressed as follows: City: Mayor Matti Herrera Bower City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Jose Smith, City Attorney City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Manager: Kathie G. Brooks, City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Alternatively, notices required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service. 5 68 Section 20. General Provisions a. The text herein shall constitute the entire Agreement between the parties. b. This Agreement shall be binding upon and inure to the benefit of the heirs at law and personal representatives of the Manager. c. If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect. d. No alteration, modification or amendment of this contract shall be effective unless contained in writing, executed between the parties in a document of equal dignity with this contract; and approved by the Mayor and City Commission. Section 21. Expression of Intent While the City Commission acknowledges that, pursuant to the City Charter, the City Manager, as the chief executive officer and head of the administrative branch of the City government, is the individual authorized by the Charter to appoint and remove, at will, all City employees in the unclassified service of the City (including, without limitation, Assistant City Managers, City department directors, and City division heads), the City Commission also hereby expresses its intent and wishes -which the Commission recognizes to be non- binding and soley advisory in nature-that, should the Manager successfully complete the services to be rendered by her pursuant to this Agreement, that the new permanent City Manager consider appointing her to the position of Assistant City Manager. Section 22. Investment Disclosure The Manager hereby advises the City Commission that she has a fiscal interest in a corporation that owns an investment property in El Portal, Florida that is managed by her son. Section 23. Governing Law and Exclusive Venue This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in state court, and the U.S. District Court, Southern District of Florida, if in federal court. BY ENTERING INTO THIS AGREEMENT, CITY AND MANAGER EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT. Section 24. Limitation of City's Liability The Severance Payment, when applicable, as provided in this Agreement shall constitute the agreed, stipulated and liquidated damages, and shall constitute of the maximum amount of financial liability for which the City may be liable in the event of a termination and/or breach of this Agreement. Notwithstanding the preceding, in no event 6 69 and/or circumstances shall the City be liable under this Agreement for any consequential incidental, punitive, or indirect damages arising from or in relation to this Agreement. IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day and year first above written. Attest: FOR CITY OF MIAMI BEACH, FLORIDA: Rafael E. Granado, City Clerk Matti Herrera Bower, Mayor ___ day of _____ , 2012. FOR MANAGER: Witness Signature Kathie G. Brooks, _day of _____ , 2012. Print Name Witness Signature Print Name F:\ATIO\AGUR\AGREEMENT\Kathie Brooks-Employment Agreement (7-12-12).docx 7 70 RESOLUTION NO. ___ _ A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), FLORIDA, AUTHORIZING THE EXECUTIVE DIRECTOR, OR HER DESIGNEE, TO SELECT, NEGOTIATE, AWARD AND REJECT ALL BIDS, CONTRACTS, AGREEMENTS, PURCHASE ORDERS, CHANGE ORDERS AND GRANT APPLICATIONS; RENEW EXISTING CONTRACTS WHICH MAY EXPIRE; AND TERMINATE EXISTING CONTRACTS, AS NEEDED, FROM THE LAST RDA MEETING ON JULY 18, 2012, UNTIL THE FIRST REGULARLY SCHEDULED MEETING ON SEPTEMBER 12, 2012, SUBJECT TO RATIFICATION BY THE RDA AT ITS FIRST REGULARLY SCHEDULED MEETING ON SEPTEMBER 12, 2012. WHEREAS, between the last meeting on July 18, 2012, and the first regularly scheduled meeting on September 12,2012, the RDA will not be in session; and WHEREAS, during this period, there may be bids or contracts in excess of the $25,000, which may need to be rejected, awarded or terminated; and WHEREAS, the RDA has historically, during its August recess, assigned the Executive Director with the authority to select, negotiate, award and/or renew contracts, as needed, subject to ratification by the RDA; and WHEREAS, it is therefore requested that the Executive Director, or her designee, be authorized to sign all contracts, agreements, purchase orders, change orders, and grant applications; renew any existing contracts, which may expire, for an appropriate period of time; terminate existing contracts, as needed, from the last RDA meeting on July 18, 2012, until the first regularly scheduled RDA meeting on September 12, 2012, subject to ratification by the RDA at its first regularly scheduled meeting on September 12, 2012. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, Chairperson and Members hereby authorize the Executive Director, or her designee, to select, negotiate, award and reject all bids, contracts, agreements, purchase orders, change orders, and grant applications; renew existing contracts which may expire; and terminate existing contracts, as needed, from the last RDA meeting on July 18, 2012, until the first regularly scheduled meeting on September 12, 2012, subject to ratification by the RDA at its first regularly scheduled meeting on September 12, 2012. PASSED and ADOPTED this ____ day of _____ , 2012 ATTEST: City Clerk T:\AGENDA\2012\7-18-12\August Recess Reso RDA.doc 71 Mayor APPROVED AS TO FORM & LANGUAGE & FOR EXECUTiON ~! {~ s'-1>(tz-Jrv (;1:. City~ Dale f"' Agenda Item ___.I._.A'""=:-- Date 1-J&-jL THIS PAGE INTENTIONALLY LEFT BLANK 72