20121114 SM1lD MIAMI BEACH
City Commission Meeting
SUPPLEMENTAL MATERIAL 1
City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive
November 14, 2012
Mayor Matti Herrera Bower
Vice-Mayor Michael Gongora
Commissioner Jorge R. Exposito
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
C70 A Resolution Approving And Authorizing The Mayor And City Clerk To Execute Amendment No.
2, In A Negotiated Not-To-Exceed Amount Of $145,876, To The Agreement Between The City
Of Miami Beach And Superior Landscaping & Lawn Services, Inc., Dated June 15, 2011, For
Ground Maintenance Services For The North Shore/Washington Avenue Area; Said
Amendment For The Inclusion Of The Miami Beach Convention Center (MBCC) Ground
Maintenance.
(Convention Center/Procurement)
(Resolution}
1
Supplemental Agenda, November 14, 2012
C7-Resolutions (Continued)
C7F A Resolution Waiving By 5/7ths Vote, The Formal Competitive Bidding Requirement, Finding Such
Waiver To Be In The Best Interest Of The City, And Authorizing The City Manager To Negotiate And
Execute An Agreement With Terremark North America Inc., In The Not To Exceed Amount Of
$328,560, For A Period Of One (1) Year, To Provide Internet Access, Managed Router Services, And
Hardware Co-Location Space At The Network Access Point (NAP) Of The Americas Data Center
Facility.
(Information Technology/Procurement)
(Resolution)
C71 A Resolution Rejecting All Bids Received Pursuant To Invitation To Bid (ITB) No. 47-11/12, To
Provide Grounds Maintenance Services On Selected Sites Throughout The South Beach District, And
Authorizing The Administration To Issue A New Invitation To Bid.
(Parks & Recreation/Procurement)
(Resolution)
C7 J A Resolution Approving And Authorizing The Mayor And City Clerk To Execute Amendment No.2 To
The Contract With Radio Satellite Integrators, Inc. (RSI), Dated June 27, 2011, In An Amount Not To
Exceed $193,000, To Install The Automated Vehicle Locator (AVL) Device In Parks And Recreational
Department Vehicles, Public Works Department Vehicles, Property Management Division Vehicles,
And Additional Fire Department Vehicles; With Funding Previously Appropriated In The FY 2012/13
Budget.
(Public Works)
(Resolution)
C7N A Resolution Approving And Authorizing The Following Actions With Regard To The City's
Neighborhood Stabilization Program 1 (NSP1) Agreements: 1 )Approving And Authorizing The Mayor
And City Clerk To Execute Amendment Number 4 To The Subgrant Agreement Between The State
Of Florida Department Of Economic Opportunity (DEO), And The City Modifying The Expiration Date
Of The SubgrantAgreement From November 23,2012 To February 15,2013, Re-Allocating Unspent
Administration Funds, And Modifying The Program Budgets; 2) Approving And Authorizing The Mayor
And City Clerk To Execute Amendment No.8 To The NSP1 Agreement Between The City And Miami
Beach Community Development Corporation (MBCDC), Dated January 21, 2010, Modifying The
Expiration Date Of Such Agreement From November 23, 2012 To February 15, 2013, And Allocating
The City's Unspent Administration Funds In The Amount Of Approximately $248,000, To Reduce The
Debt Service On The Neptune Apartments; And 3) Further Authorizing The City Manager Or Her
Designee To Take Such Actions, As May Be Required, With Regard To Preparing And Having The
Mayor And City Clerk Execute Modifications Of Mortgages For The Referenced NSP1 Funded
Projects; Such Modifications Revising The Mortgage Amounts To Reflect The Final Budgeted
Amounts For Each Project.
(Real Estate, Housing & Community Development)
(Resolution)
ii
2
Supplemental Agenda, November 14, 2012
R5-Ordinances
R5D An Ordinance Amending Chapter 2 Of The Miami Beach City Code Entitled "Administration," By
Amending Article VI, Entitled "Procurement," By Amending Division 5, Entitled "Debarment Of
Contractors From City Work," By Amending Section 2-397, Entitled "Purpose Of Debarment," To
Provide The Purpose For Suspensions; By Amending Section 2-398, Entitled "Definitions," To Provide
Additional Definitions Regarding Suspension Of Contractors; By Amending Section 2-399, Entitled
"List Of Debarred Contractors," To Provide For The Additional Listing Of Suspended Contractors; By
Amending Section 2-400, Entitled "Effects Of Debarment" To Provide For The Effects Of Suspension;
By Amending Section 2-401, Entitled "Continuation Of Current Contracts," To Provide That
Suspension May Affect The Continuation Of Current Contracts Or Bids; By Amending Section 2-402,
Entitled "Restrictions On Subcontracting," To Provide For Restrictions On Suspended Contractors; By
Amending Section 2-403; Entitled "Debarment," To Provide For The Suspension Of Contractors; By
Amending Section 2-404, Entitled "Causes For Debarment," By Providing For Additional Causes For
Debarment, And To Provide For Causes For Suspension; By Amending Section 2-405, Entitled
"Debarment Procedures," To Amend The Procedures For Debarment And To Provide Procedures For
The Suspension Of Contractors; By Amending Section 4-206, Entitled "Period Of Debarment," By
Providing For Periods Of Suspension And Requests For Reducing Periods Of Suspension; Providing
For Repealer; Severability; Codification; And An Effective Date. First Reading
(Requested by Mayor Matti Herrera Bower)
(Legislative Tracking: City Attorney's Office)
(Ordinance)
R7 -Resolutions
R7H A Resolution Adopting The Third Amendment To The Fiscal (FY) 2011/12 General Fund Budget And
The Second Amendment To The Enterprise, Internal Service And Special Revenue Funds Budget.
(Budget & Performance Improvement)
(Memorandum)
iii 3
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. 2, IN A NEGOTIATED NOT-TO-EXCEED AMOUNT OF $145,876, TO THE
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND SUPERIOR LANDSCAPING &
LAWN SERVICES, INC., DATED JUNE 15, 2011, FOR GROUND MAINTENANCE SERVICES
FOR THE NORTH SHORE/WASHINGTON AVENUE AREA; SAID AMENDMENT FOR THE
INCLUSION OF THE MIAMI BEACH CONVENTION CENTER (MBCC) GROUND
MAINTENANCE.
WHEREAS, the Miami Beach Convention Center (MBCC) is in the process of improving the
esthetics of both the exterior and interior of the facility by replacing old high maintenance plants, as well as
plants that have outgrown their space; and
WHEREAS, on August 22, 2012, Request for Quote No. 02-11/12 (an informal bid process) was
issued, with an opening dated of September 7, 2011, to all of the full-service landscape providers currently
contracted to maintain public areas Citywide; and
WHEREAS, four (4) addenda were issued to provide additional information and to respond to all
questions submitted by the prospective bidders, thus extending the bid opening due date to September
21, 2012; and
WHEREAS, on September 21, 2012 three (3) bids were received which exceeded the current
available funding, as reflected in the adopted Capital Budget FY 2011/2012; and
WHEREAS, since Superior was the lowest bidder pursuant to the Request for Quotes, the
Administration determined that it would be in the City's best interest to proceed to negotiate with Superior,
using the price submitted by Superior under the Request for Quote process as a starting point; and
WHEREAS, the negotiated total of $145,876 consists of purchase and installation of new
landscaping and plant inventory in the amount of $122,518 and ground maintenance for the first year at a
cost of $23,358. Annual landscape ground maintenance is being bid out citywide and the Convention
Center will be included; and
WHEREAS, the City currently has a grounds maintenance contract with Superior Landscaping &
Lawn Services, Inc., which was awarded pursuant to ITB No. 20-09/10 (the Contract} and the
Administration recommends amending the City's existing ground maintenance service contract with
Superior (as the lowest bidder in response to the Request for Quotes), in the not to exceed negotiated
amount of $145,876.
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 execute Amendment No. 2, in a negotiated not-to-exceed amount of $145,876, to the
existing Agreement between the City and Superior Landscaping and Lawn Services, Inc., dated June 15,
2011, for ground maintenance services for North Shore/Washington Avenue areas; with said Amendment
providing for the inclusion of the Miami Beach Convention Center (MBCC) grounds maintenance.
PASSED AND ADOPTED THIS ___ DAY OF ____ 2012.
ATTEST:
CITY CLERK MAYOR
Agenda Item ~;.......f.:-.'!7----:-=;
D ate __.li.!IL-l-...__._=
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RESOLUTION NO. ___ _
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, WAIVING BY 5/7THS VOTE, THE FORMAL
COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN
THE IN THE BEST INTEREST OF THE CITY, AND AUTHORIZING THE CITY
MANAGER, TO NEGOTIATE AND EXECUTE AN AGREEMENT WITH
TERREMARK NORTH AMERICA INC., IN THE NOT TO EXCEED AMOUNT OF
$328,560, FOR A PERIOD OF ONE (1) YEAR, TO PROVIDE INTERNET
ACCESS, MANAGED ROUTER SERVICES, AND HARDWARE COLOCATION
SPACE AT THE NETWORK ACCESS POINT (NAP) OF THE AMERICAS
DATA CENTER FACILITY.
WHEREAS, the Information Technology (IT) Department requires the continued use of
Terremark North America, Inc., site as part of the City's Disaster Recovery program to provide
internet access, managed router services and hardware collocation space at the Network Access
Point (NAP) of the Americas Data Center facility; and
WHEREAS, this space, consisting of 100 and 260 square feet of hardened Category 5 rated
co-location space, and its associated network connectivity serve, as an off-site disaster recovery
and production data center location for the City's critical server/network, and public safety
infrastructure; and
WHEREAS, the contracted services will also provide for the City's overall connectivity to the
internet; and
WHEREAS, the IT Department has been using the Terremark North America, Inc., site for
the past three (3) years, as authorized by a piggyback memo, utilizing Miami-Dade County Contract
No. 7662-4/10, for Internet Access and Managed Router Services, (as it offered discounted rates);
and
WHEREAS, the City can no longer piggyback on the County contract, as the Board of Miami-
Dade County Commissioners authorized the continued use of such contract as a bid waiver which
is not permissible and the City Code only allows the piggyback of competitively bid contracts; and
WHEREAS, the Administration recommends that the Mayor and City Commission hereby
waive, by 5/?ths vote, the formal competitive bid process, and authorize the City Manager, to
negotiate and execute an agreement with Terremark North America, Inc., in the not to exceed
amount of $328,560, for a period of one (1) year, as part of the City's Disaster Recovery program to
provide internet access, managed router services and hardware collocation space at the Network
Access Point (NAP) of the Americas Data Center facility, finding such waiver to be in the best
interest of the City;
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 waive, by
5/?ths vote, the formal competitive bidding requirement, finding such waiver to be in the best interest
of the City, and authorize the City Manager, to negotiate and execute an agreement with Terre mark
North America, Inc., in the not to exceed amount of $328,560, for a period of one (1) year, to provide
T:\AGENDA \20 12\11-14-12\BidWaiverTerremarkN orthAmerica-Reso.doc
Agenda Item C 7 F ,
Date /1-14 -I 2..-i 6
internet access, managed router services, and hardware co-location space at the Network Access
Point (NAP) of the Americas Data Center Facility.
PASSED AND ADOPTED this ___ day of ___ , 2012.
ATTEST:
CITY CLERK MAYOR
T:\AGENDA\2012\11-14-12\BidWaiverTerremarkNorthAmerica-Reso.doc
APPROVED AS TO
FORM & LANGUAGE
& FnA EXECUTION
7
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, REJECTING ALL BIDS RECEIVED PURSUANT TO INVITATION TO
BID (ITB) NO. 47-11/12, TO PROVIDE GROUNDS MAINTENANCE SERVICES ON
SELECTED SITES THROUGHOUT THE SOUTH BEACH DISTRICT, AND AUTHORIZING
THE ADMINISTRATION TO ISSUE A NEW INVITATION TO BID.
WHEREAS, the ITB was issued on August 17, 2012, with an opening date of
September 19, 2012; and
WHEREAS, a pre-bid conference to provide information to prospective proposers
was held on August 30, 2012; and
WHEREAS, Bidsync sent notices to 55 prospective proposers resulting in the receipt
of four (4) proposals by Everglades Environmental Care, Inc., SFM Services, Inc., Superior
Landscaping & Lawn Services, Inc., and Valleycrest Landscape Maintenance; and
WHEREAS, on October 8, 2012, the Parks and Recreation Department met with the
Procurement Division to review the proposals received and to discuss inconsistencies
regarding the pricing sheets; and
WHEREAS, the recommendation by the Parks and Recreation Department is to
reject the bids received and to reissue the ITB with a revised and simplified pricing sheet in
addition to including locations in the City Center, Mid Beach, and South Beach Districts; and
WHEREAS, after considering the review and recommendation of the Parks and
Recreation Department, the Interim City Manager exercised her due diligence and
recommends that the Mayor and City Commission reject all bids received and reissue the
ITB upon revisions of the pricing sheet and other specifications.
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 rejecting all bids
received pursuant to Invitation to Bid (ITB) No. 47-11/12, to provide grounds maintenance
services on selected sites throughout the South Beach District, and authorize the
Administration to issue a new Invitation to Bid.
PASSED AND ADOPTED THIS ___ DAY OF ____ 2012.
ATTEST:
CITY CLERK MAYOR
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
Agenda Item C. 1 1:.
Date tl-14 -It-
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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. 2 TO THE CONTRACT
WITH RADIO SATELLITE INTEGRATORS, INC. (RSI), DATED JUNE 27,
2011, IN AN AMOUNT NOT TO EXCEED $193,000, TO INSTALL THE
AUTOMATED VEHICLE LOCATOR (AVL) DEVICE IN PARKS AND
RECREATIONAL DEPARTMENT VEHICLES, PUBLIC WORKS
DEPARTMENT VEHICLES, PROPERTY MANAGEMENT DIVISION
VEHICLES, AND ADDITIONAL FIRE DEPARTMENT VEHICLES; WITH
FUNDING PREVIOUSLY APPROPRIATED IN THE FY 2012/13 BUDGET.
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; and
WHEREAS, at its July 18, 2012 meeting, the City Commission approved Amendment
No. 1 to the RSI Agreement (Resolution No. 2012-27945) that extended the implementation of
AVL installations; and
WHEREAS, over 350 AVL devices have been installed to date in vehicles from the
Building, Code Compliance, Parking, Police and Sanitation Departments/Divisions; and
WHEREAS, funding for a third phase of AVL installation was appropriated in the FY
2012/13 Budget; and
WHEREAS, additional phases will extend to all City vehicles and most equipment.
' 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. 2 to the contract
with Radio Satellite Integrators, Inc. (RSI), dated June 27, 2011, in an amount not to exceed
$193,000, to install the Automated Vehicle Locator (AVL) device in Parks and Recreational
Department vehicles, Public Works Department vehicles, Property Management Division
vehicles, and additional Fire Department vehicles; with funding previously appropriated in the
FY 2012/13 budget.
Agenda Item
Date 10
PASSED and ADOPTED this 14th day of November, 2012.
ATTEST:
Rafael Granado, City Clerk
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~ ~-r,\o\c7...-
~
T:\AGENDA\2012\11-14-12\AVL RSI Amend. 2-RESO.doc
Matti Herrera Bower, Mayor
11
RESOLUTION NO. ________ _
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE FOLLOWING
ACTIONS WITH REGARD TO THE CITY'S NEIGHBORHOOD STABILIZATION
PROGRAM 1 (NSP1) AGREEMENTS: 1) APPROVING AND AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 4 TO THE
SUBGRANT AGREEMENT BETWEEN THE STATE OF FLORIDA DEPARTMENT
OF ECONOMIC OPPORTUNITY (DEO) AND THE CITY MODIFYING THE
EXPIRATION DATE OF THE SUBGRANT AGREEMENT FROM NOVEMBER 23,
2012, TO FEBRUARY 15,2013, RE-ALLOCATING UNSPENT ADMINISTRATION
FUNDS, AND MODIFYING THE PROGRAM BUDGETS; 2) APPROVING AND
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO.
8 TO THE NSP1 AGREEMENT BETWEEN THE CITY AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC), DATED JANUARY 21,
2010, MODIFYING THE EXPIRATION DATE OF SUCH AGREEMENT FROM
NOVEMBER 23,2012 TO FEBRUARY 15,2013, AND ALLOCATING THE CITY'S
UNSPENT ADMINISTRATION FUNDS IN THE AMOUNT OF APPROXIMATELY
$248,000 TO REDUCE THE DEBT SERVICE ON THE NEPTUNE APARTMENTS;
AND 3) FURTHER AUTHORIZING THE CITY MANAGER OR HER DESIGNEE TO
TAKE SUCH ACTIONS, AS MAY BE REQUIRED, WITH REGARD TO
PREPARING AND HAVING THE MAYOR AND CITY CLERK EXECUTE
MODIFICATIONS OF MORTGAGES FOR THE REFERENCED NSP1 FUNDED
PROJECTS; SUCH MODIFICATIONS REVISING THE MORTGAGE AMOUNTS TO
REFLECT THE FINAL BUDGETED AMOUNTS FOR EACH PROJECT.
WHEREAS, on July 31, 2008, the United States Congress enacted the Housing and
Economic Recovery Act of 2008, thereby creating the Neighborhood Stabilization Program 1
(NSP1 ), which directed the Department of Housing and Urban Development (HUD) to allocate $3.93
billion to states and units of local government as emergency assistance for the purchase and
redevelopment of abandoned and foreclosed homes; and
WHEREAS, on March 18,2009, the City approved Resolution No. 2009-27039, approving
the City's planned use of and application of NSP1 funds to purchase and rehabilitate one or more
foreclosed or abandoned multi-family buildings to be made available as rental housing properties for
income qualified households; and
WHEREAS, the City was awarded a total of $9,305,268 in NSP1 funds through an initial
allocation plus two subsequent allocations; and
WHEREAS, the State of Florida Department of Economic Development (DEO) is the entity
managing the NSP1 allocation to the City of Miami Beach; and
WHEREAS, the Administration conducted a duly-noticed procurement process for award of
the first allocation, resulting in the City Commission's approval on September 9, 2009, of Resolution
No. 2009-27194 which authorizing the execution of an Agreement with Miami Beach Community
Development Corporation to carry out the City's planned use of, and application for, NSP1 funds
("MBCDC Agreement"); and
WHEREAS, the initial strategy was to fund the acquisition and rehabilitation of one
affordable housing project, which resulted in the acquisition of the 16-unit foreclosed building
located at 7871 Crespi Blvd., which was later named The Madeleine; and
Agenda Item C. 7 N
Date 11-/1.·1-ll..
I
12
. -
WHEREAS, on February 3, 2010, the City's Agreement with MBCDC was amended per
Resolution No. 2010-27335, to allow for the allocation of additional NSP1 funds received by the City;
and
WHEREAS, the additional acquisition and rehabilitation funds resulting from the second and
third allocations were authorized for the acquisition and rehabilitation of The Neptune, a 35-unit
foreclosed apartment building located at 1632 Meridian Avenue; and The Lottie, a nine-unit
foreclosed apartment building which contains large apartments and is suitable for families, located
at 530 75 Street;
WHEREAS, a total of 60 units were purchased with NSP1 funds and rehabilitated for
income-eligible Miami Beach residents; and
WHEREAS, the City was allowed to use a maximum of 6.8% of the total NSP1 allocation for
administrative expenses, resulting in a total of $632,758 being allocated for administration expenses
and $8,672,510 being allocated for NSP1 project development; and
WHEREAS, as required by NSP1 program monitors and as is the City's customary practice,
estimated budgets were prepared for each project prior to plans approval and permitting, and
corresponding mortgages were recorded at the time of the acquisitions; and
WHEREAS, unanticipated construction costs arose, resulting in necessary budget
modifications and requiring MBCDC to cover a project budget shortfall in the amount of $82,506;
and
WHEREAS, the City's NSP1 grant agreements with the State DEO and with MBCDC expire
November 23, 2012; and
WHEREAS, the State's DEO has requested that both Miami Beach contracts be extended
through February 15, 2013, in order to close out the grant and resolve the pending issue of the
City's unspent administrative funding; and
WHEREAS, of the available $632,758 NSP1 administrative funding allocated to the City, as
of September 30, 2012, remaining unexpended administrative funds were $300,947.93; and
WHEREAS, the Administration projects that, based on current administrative expenditure
rates, the projected balance of unspent administrative funds, as of February 15, 2013, will be
approximately $247,304.05; and
WHEREAS, the State DEO has informed the City that the unexpended administrative funds
should be loaned to MBCDC for either debt reduction on The Neptune Apartments, or to establish
an operating reserves account for the 60 units; and
WHEREAS, MBCDC has requested that the City utilize the unspent administrative funds to
provide assistance in covering its current construction budget gap in the amount of $82,506, and/or
that the City allocate the unspent administrative funds to reduce its debt service on The Neptune
Apartments; and
WHEREAS, while two of the three NSP1 projects were 100% NSP1-funded, The Neptune's
acquisition, closing costs, and rehabilitation required additional funding sources; and
WHEREAS, on May 12, 2010, the City Commission approved Resolution No. 2010-27390,
authorizing: the reallocation of NSP1 funds in the amount of $246,898.53 from The Madeleine
project to The Neptune; utilizing the second NSP1 allocation in the amount of $4,432,328.24;
utilizing FY2009/1 0 US HUD HOME funds in the amount of $650,000; subordination of the City's
first lien position to private bank financing acquired by MBCDC in the amount of $700.000; and 13
WHEREAS, MBCDC's resulting annual debt service to International Finance Bank (IFB) on
The Neptune is $53,613, with a November 2, 2012, loan balance in the amount of $686, 132.52; and
WHEREAS, while current rents are affordable pursuant to HUD and NSP1 guidelines, the
amounts exceed the capability of some low to moderate income residents; and
WHEREAS, MBCDC has provided an analysis which demonstrates that if the current debt
service is reduced, a further reduction of rent can be achieved so that 18 rental units may be rented
for $620 per month, instead of the HUD-approved maximum rent of $722; and
WHEREAS, in order to comply with the State DEO close-out instructions for the NSP1 grant,
the Administration recommends extending the end dates of both the NSP1 Subgrant Agreement and
the MBCDC Agreement, so that they both expire on February 15, 2013, as directed by the State
DEO, transferring the City's unspent administration funds in the amount of $248,000 to reduce the
debt service at The Neptune Apartments, and modifying the budgets and mortgages for the NSP1
projects.
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 the City Clerk to execute Amendment No. 4 to the Subgrant
Agreement between the State of Florida Department of Economic Development (DEO) and the
City modifying the expiration date of the Subgrant Agreement from November 23, 2012, to
February 15, 2013, re-allocating unspent Administration funds, and modifying the program
budgets; and approve and authorize the Mayor and City Clerk to execute Amendment No.8 to the
NSP1 Agreement between the City and Miami Beach Community Development Corporation
(MBCDC), dated January 21, 2010, modifying the expiration date of such Agreement from
November 23, 2012 to February 15, 2013, and allocating the City's unspent Administration funds
in the amount of approximately $248,000, to reduce the debt service on The Neptune Apartments;
and further authorize the City Manager or her designee to take such actions, as may be required,
with regard to preparing and having the Mayor and City Clerk execute modifications of mortgages
for the referenced NSP1 funded projects; such modifications revising the mortgage amounts to
reflect the final budgeted amounts for each project.
PASSED AND ADOPTED this ___ day of ______ ,, 2012.
ATTEST:
CITY CLERK MAYOR
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ORDINANCE NO. _____ _
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE
MIAMI BEACH CITY CODE ENTITLED "ADMINISTRATION," BY
AMENDING ARTICLE VI, ENTITLED "PROCUREMENT," BY
AMENDING DIVISION 5, ENTITLED "DEBARMENT OF
CONTRACTORS FROM CITY WORK," BY AMENDING SECTION 2·
397, ENTITLED "PURPOSE OF DEBARMENT," TO PROVIDE THE
PURPOSE FOR SUSPENSIONS; BY AMENDING SECTION 2-398,
ENTITLED "DEFINITIONS," TO PROVIDE ADDITIONAL DEFINITIONS
REGARDING SUSPENSION OF CONTRACTORS; BY AMENDING
SECTION 2-399, ENTITLED "LIST OF DEBARRED CONTRACTORS,"
TO PROVIDE FOR THE ADDITIONAL LISTING OF SUSPENDED
CONTRACTORS; BY AMENDING SECTION 2-400, ENTITLED
"EFFECTS OF DEBARMENT" TO PROVIDE FOR THE EFFECTS OF
SUSPENSION; BY AMENDING SECTION 2-401, ENTITLED
"CONTINUATION OF CURRENT CONTRACTS," TO PROVIDE THAT
SUSPENSION MAY AFFECT THE CONTINUATION OF CURRENT
CONTRACTS OR BIDS; BY AMENDING SECTION 2-402, ENTITLED
"RESTRICTIONS ON SUBCONTRACTING," TO PROVIDE FOR
RESTRICTIONS ON SUSPENDED CONTRACTORS; BY AMENDING
SECTION 2-403; ENTITLED "DEBARMENT," TO PROVIDE FOR THE
SUSPENSION OF CONTRACTORS; BY AMENDING SECTION 2-404,
ENTITLED "CAUSES FOR DEBARMENT," BY PROVIDING FOR
ADDITIONAL CAUSES FOR DEBARMENT, AND TO PROVIDE FOR
CAUSES FOR SUSPENSION; BY AMENDING SECTION 2-405,
ENTITLED "DEBARMENT PROCEDURES," TO AMEND THE
PROCEDURES FOR DEBARMENT AND TO PROVIDE PROCEDURES
FOR THE SUSPENSION OF CONTRACTORS; BY AMENDING
SECTION 4-206, ENTITLED "PERIOD OF DEBARMENT," BY
PROVIDING FOR PERIODS OF SUSPENSION AND REQUESTS FOR
REDUCING PERIODS OF SUSPENSION; PROVIDING FOR
REPEALER; SEVERABILITY; CODIFICATION; AND AN EFFECTIVE
DATE.
WHEREAS, the Mayor and City Commission of the City of Miami Beach deem it in the
best interest of the City to amend the City's debarment provisions and to create provisions and
procedures for the suspension of contractors under certain specified circumstances.
NOW, THEREFORE, BE IT DULY ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS:
SECTION 1.
That Division 5, entitled "Debarment of Contractors from City Work," of Article VI, entitled
"Procurement," of Chapter 2, entitled "Administration," of the Miami Beach City Code is hereby
amended as set forth below. Other sections in Division 5 are also provided for reference
purposes.
Agenda Item Bs D
Date \I-f 4-1 ~ 16
CHAPTER2
ADMINISTRATION
* * *
ARTICLE VI. PROCUREMENT
DIVISION 5. Debarment of Contractors from City Work
Sec. 2-397. Purpose of debarment and suspension.
(a) The city shall solicit offers from, award contracts to, and consent to
subcontractors with responsible contractors only. To effectuate this policy, the
debarment and suspension of contractors from city work may be undertaken.
(b) The serious nature of debarment and suspension requires that this sanction be
imposed only when it is in the public interest for the city's protection, and not for
purposes of punishment. Debarment and suspension shall be imposed in
accordance with the procedures contained in this division.
Sec. 2-398. Definitions.
As used in this division:
(a) Affiliates. Business concerns, organizations, lobbyists or other individuals are
affiliates of each other if, directly or indirectly, (i) either one controls or has the power
to control the other, or (ii) a third party controls or has the power to control both.
Indicia of control include, but are not limited to, a fiduciary relation which results from
the manifestation of consent by one individual to another that the other shall act on
his behalf and subject to his control, and consent by the other so to act; interlocking
management or ownership; identity of interests among family members; shared
facilities and equipment; common use of employees; or a business entity organized
by a debarred entity, individual, or affiliate following debarment of a contractor that
has the same or similar management, ownership, or principal employees as the
contractor that was debarred or suspended.
(b) Civil judgment means a judgment or finding of a civil offense by any court of
competent jurisdiction.
2 17
(c) Contractor means any individual or other legal entity that:
(1) Directly or indirectly (e.g., through an affiliate), submits offers for or is
awarded, or reasonably may be expected to submit offers for or be awarded,
a city contract, including, but not limited to, vendors, suppliers, providers,
bidders, proposers, consultants, subcontractors, and/or design professionals;
or
(2) Conducts business, or reasonably may be expected to conduct business,
with the city as an agent, representative or subcontractor of another
contractor.
(d) Conviction means a judgment or conviction of a criminal offense, be it a felony or
misdemeanor, by any court of competent jurisdiction, whether entered upon a verdict
or a plea, and includes a convictions entered upon a plea of nolo contendere.
(e) Debarment means action taken by the debarment committee to exclude a contractor
(and, in limited instances specified in this division, a bidder or proposer) from city
contracting and city approved subcontracting for a reasonable, specified period as
provided in subsection U) below; a contractor so excluded is debarred.
(f) Debarment committee means a group of seven individual members, each appointed
by the mayor and individual city commissioners, to evaluate and, if warranted, to
impose debarment.
(g) Greater weight of the evidence means proof by information that, compared with that
opposing it, leads to the conclusion that the fact at issue is more probably true than
not.
(h) Indictment means indictment for a criminal offense. An information or other filing by
competent authority charging a criminal offense shall be given the same effect as an
indictment.
(i) Legal proceeding means any civil judicial proceeding to which the city is a party or
any criminal proceeding. The term includes appeals from such proceedings.:.
U) List of debarred contractors means a list compiled, maintained and distributed by the
city's procurement office, containing the names of contractors debarred under the
procedures of this division.
3 18
{)sl List of suspended contractors means a list compiled, maintained and distributed by
the city's procurement office containing the names of contractors suspended under
the procedures of this division.
ill Suspension means action taken by the debarment committee to exclude a
contractor, (and. in limited instances specified in this division, a bidder or proposer
from city contracting and city approved subcontracting for a reasonable specified
period as provided in subsection (k) above; a contractor so excluded is suspended.
Sec. 2-399. List§. of debarred and suspended contractors,
(a) The city's procurement office, as the agency charged with the implementation of
this division, shall:
(1) Compile and maintain a current, consolidated list (list) of all contractors
debarred and all contractors suspended by city departments. Such list§.
shall be public record and shall be available for public inspection and
dissemination;
(2) Periodically revise and distribute the list and issue supplements, if
necessary, to all departments, to the office of the city manager, and to the
mayor and city commissioners; and
(3) Included in the list§. shall be the name and telephone number of the city
official responsible for its maintenance and distribution.
(b) The debarment and suspension list§. shall indicate:
(1) The names and addresses of all contractors debarred, or suspended, in
alphabetical order;
(2) The name of the department that recommends initiation of the debarment
or suspension action;
(3) The cause for the debarment or suspension action, as is further described
herein, or other statutory or regulatory authority;
(4) The effect of the debarment or suspension action;
(5) The termination date for each listing;
4 19
(6) The contractor's certificate of competency or license number, when
applicable;
(7) The person through whom the contractor is qualified, when applicable;
(8) The name and telephone number of the point of contact in the department
recommending the debarment or suspension action.
(c) The city's procurement office shall:
( 1)
(2)
(3)
In accordance with internal retention procedures, maintain records
relating to each debarment or suspension;
Establish procedures to provide for the effective use of the debarment
and suspension list§., including internal distribution thereof, to ensure that
departments do not solicit offers from, award contracts to, or consent to
subcontracts with contractors on the list; and
Respond to inquiries concerning listed contractors and coordinate such
responses with the department that recommended the action.
Sec. 2-400. Effects of debarment and suspension.
(a) Debarred and suspended contractors are excluded from receiving contracts, and
departments shall not solicit offers from, award contracts to, or consent to
subcontracts with these contractors, unless the city manager determines that an
emergency exists justifying such action, and obtains approval from the mayor
and city commission, which approval shall be given by a five-sevenths vote of the
city commission at a regularly scheduled city commission meeting. Debarred and
suspended contractors are also excluded from conducting business with the city
as agents, representatives, subcontractors or partners of other contractors.
(b) Debarred and suspended contractors are excluded from acting as individual
sureties.
Sec. 2-401. Continuation of current contracts/disqualification from bids.
(a) Commencing on the effective date of this division, all proposed city contracts, as
well as request for proposals (RFP), request for qualifications (RFQ), requests for
letters of interest (RFLI), or bids issued by the city, shall incorporate this
ordinance and specify that debarment and suspension may constitute grounds
for termination of the contract, as well as disqualification from consideration on
any RFP, RFQ, RFLI, or bid.
5 20
(b) The debarment or suspension shall take effect in accordance with the notice
provided by the city manager pursuant to subsection 2-405(h) below, except that
if a city department has contracts or subcontracts in existence at the time the
contractor was debarred, or suspended, the debarment or suspension period
may commence upon the conclusion of the contract, subject to approval of same
by a five-sevenths vote of the mayor and city commission at a regularly
scheduled meeting.
(c) City departments may not renew or otherwise extend the duration of current
contracts, or consent to subcontracts with debarred or suspended, contractors,
unless the city manager determines that an emergency exists justifying the
renewal or extension or for an approved extension due to delay or time extension
for reasons beyond the contractor's control, and such action is approved by a
five-sevenths vote of the mayor and city commission at a regularly scheduled
meeting.
(d) No further work shall be awarded to a debarred or suspended contractor in
connection with a continuing contract, where the work is divided into separate
discrete groups and the city's refusal or denial of further work under the contract
will not result in a breach of such contract.
Sec. 2-402. Restrictions on subcontracting.
(a) When a debarred or suspended contractor is proposed as a subcontractor for
any subcontract subject to city approval, the department shall not consent to
subcontracts with such contractors unless the city manager determines that an
emergency exists justifying such consent, and the mayor and city commission
approves such decision, by a five-sevenths vote, at a regularly scheduled
meeting.
(b) The city shall not be responsible for any increases in project costs or other
expenses incurred by a contractor as a result of rejection of proposed
subcontractors pursuant to subsection 2-402(a) above, provided the
subcontractor was debarred or suspended prior to bid opening or opening of
proposals, where the contract was awarded by the city pursuant to an RFP, RFQ,
RFLI, or bid.
6 21
Sec. 2-403. Debarment and suspension.
(a) The debarment committee may, in the public interest, debar or suspend a
contractor for any of the causes listed in this division, using the procedures
outlined below. The existence of a cause for debarment or suspension, however,
does not necessarily require that the contractor be debarred or suspended; the
seriousness of the contractor's acts or omissions and any mitigating factors
should be considered in making any debarment or suspension decision.
(b) Debarment constitutes debarment of all officers, directors, shareholders owning
or controlling 25 percent or more of the stock, partners, divisions or other
organizational elements of the debarred contractor, unless the debarred decision
is limited by its terms to specific divisions, organizational elements, or
commodities. The debarment committee's decision includes any existing affiliates
of the contractor, if they are (i) specifically named and (ii) given written notice of
the proposed debarment and an opportunity to respond.
(c) Suspension constitutes suspension of all officers, directors, shareholders owning
or controlling 25 percent or more of the stock, partners, divisions or other
organizational elements of the suspended contractor, unless the suspension
decision is limited by its terms to specific divisions, organizational elements, or
commodities. The debarment committee's decision includes any existing affiliates
of the contractor, if they are (i) specifically named and (ii) given written notice of
the proposed suspension and an opportunity to respond.
{9.2 A contractor's debarment or suspension shall be effective throughout city
government.
@2 Nothing in this division shall preclude the City from pursuing any other available
legal or equitable remedies against the contractor.
Sec. 2-404. Causes for debarment and suspension.
(a) Debarment. The debarment committee shall debar a contractor for a conviction
or civil judgment:
(1) For comm1ss1on of a fraud or a criminal offense in connection with
obtaining, attempting to obtain, performing, or making a claim upon a
public contract or subcontract, or a contract or subcontract funded in
whole or in part with public funds;
7 22
(2) For violation of federal or state antitrust statutes relating to the
submission of offers;
(3) For commission of embezzlement, theft, forgery, bribery, falsification or
destruction of records, making false statements, or receiving stolen
property;
(4) Which makes the city the prevailing party in a legal proceeding, and a
court determines that the lawsuit bet'.veen the claim(s) filed by the
contractor a-FIG against the city was frivolous or filed in bad faith""~
(§.} For commission of any offense indicating a lack of business integrity or
business honesty that seriously and directly affects the present
responsibility of a City contractor or subcontractor;
@.2 For commission of any criminal activity as defined in Chapter 772 of the
Florida Statutes and as that Chapter may be amended; or the aiding or
abetting of any offense in subsections (a)(1 )-(3) or (a)(5).
_(Q} Suspension. The debarment committee may suspend a contractor for any of the
causes in subsection (a) using the procedures in Section 2-405. In addition. the
debarment committee may, upon adequate evidence, suspend a contractor: (i) for any
other cause so serious or compelling of a nature that it affects the present responsibility
of the contractor; (ii) by reason of a contractor's admitted commission. aiding, or abetting
of any offense specified in subsection (a); or (iii) for knowingly failing to disclose criminal
or fraudulent conduct relating to public procurement, public officials, or the public trust.
(c) The committee may debar or suspend a contractor (and, in limited instances set
forth hereinbelow, a bidder or proposer) based upon the greater weight of the evidence,
for:
. (1) Violation of the terms of a city contract or subcontract, or a contract or
subcontract funded in whole or in part by city funds, such as failure to perform in
accordance with the terms of one or more contracts as certified by the city
department administering the contract; or the failure to perform, or
unsatisfactorily perform in accordance with the terms of one or more contracts,
as certified by an independent registered architect, engineer, or general
contractor.
8 23
(2) Violation of a city ordinance or administrative order which lists debarment
or suspension as a potential penalty.
Sec. 2-405. -Debarment and suspension procedures.
(a) Requests for the debarment or suspension of contractors may be initiated by a
city department or by a citizen-at-large and shall be made in writing to the office
of the city manager. Upon receipt of a request for debarment or suspension, the
city manager shall transmit the request to the mayor and city commission at a
regularly scheduled meeting. The mayor and city commission shall transmit the
request to a person or persons who shall be charged by the city commission with
the duty o( promptly investigating and preparing a written report(s) concerning
the proposed debarment or suspension, including the cause and grounds for
debarment or suspension, as set forth in this division.
(b) Upon completion of the aforestated written report, the city manager shall forward
said report to the debarment committee. The city's procurement office shall act
as staff to the debarment committee and, with the assistance of the person or
persons which prepared the report, present evidence and argument to the
debarment committee. The City Attorney's office shall represent the debarment
committee and may present evidence and testimony at the debarment hearing
and may rebut evidence and cross-examine testimony presented to the
debarment committee.
(c) Notice of proposal to debar or suspend. Within ten working days of the
debarment committee having received the request for debarment or suspension
and written report, the city's procurement office, on behalf of the debarment
committee, shall issue a notice of proposed debarment or suspension advising
the contractor and any specifically named affiliates, by certified mail, return
receipt requested, or personal service, containing the following information:
(1) That debarment or suspension is being considered;
(2) The reasons and causes for the proposed debarment or suspension in
terms sufficient to put the contractor and any named affiliates on notice of
the conduct or transaction(s) upon which it is based;
(3) That a hearing shall be conducted before the debarment committee on a
date and time not less than 30 days after service of the notice. The notice
shall also advise the contractor that it may be represented by an attorney,
may present documentary evidence and veffia.l testimony, and may
9 24
cross examine rebut evidence and cross-examine testimony presented
against it.
(4) The notice shall also describe the effect of the issuance of the notice of
proposed debarment, and of the potential effect of an actual debarment.
(d) No later than seven working days prior to the scheduled hearing date, the
contractor must furnish the city's procurement office a list of the defenses the
contractor intends to present at the hearing. If the contractor fails to submit the
list, in writing, at least seven working days prior to the hearing, or fails to seek an
extension of time within which to do so, the contractor shall have waived the
opportunity to be heard at the hearing. The debarment committee has the right to
grant or deny an extension of time, and, for good cause, may set aside the
waiver to be heard at the hearing, and its decision may only be reviewed upon an
abuse of discretion standard.
(e) Hearsay evidence shall be admissible at the hearing but shall not form the sole
basis for initiating a debarment or suspension procedure nor the sole basis of
any determination of debarment or suspension. The hearing shall be transcribed,
taped or otherwise recorded by use of a court reporter, at the election of the
committee and at the expense of the city. Copies of the hearing tape or transcript
shall be furnished at the expense and request of the requesting party.
(f) Debarment committee's decision. In actions based upon a conviction or
judgment, or in which there is no genuine dispute over material facts, the
debarment or suspension committee shall make a decision on the basis of all the
undisputed, material information in the administrative record, including any
undisputed, material submissions made by the contractor. Where actions are
based on disputed evidence, the debarment committee shall decide what weight
to attach to evidence of record, judge the credibility of witnesses, and base its
decision on the greater weight of the evidence standard. The debarment
committee shall be the sole trier of fact. The committee's decision shall be made
within ten working days after conclusion of the hearing, unless the debarment
committee extends this period for good cause.
(g) The committee's decision shall be in writing and shall include the committee's
factual findings, the principal causes of debarment or suspension as enumerated
in this division, identification of the contractor and all named affiliates affected by
the decision, and the specific term, including duration, of the debarment or
suspension imposed.
10 25
(h) Notice of debarment committee's decision.
(1) If the debarment committee decides to impose debarment or suspension,
the city manager shall give the contractor and any named affiliates
involved written notice by certified mail, return receipt requested, or hand
delivery, within ten working days of the decision, specifying the reasons
for debarment or suspension and including a copy of the committee's
written decision; stating the period of debarment or suspension, including
effective dates; and advising that the debarment or suspension is
effective throughout the city departments.
(2) 1f Ggebarment or suspension is not imposed, the city manager shall notify
the contractor and any named affiliates, by certified mail, return receipt
requested, or personal service, within ten working days of the decision.
(i) All decisions of the debarment committee shall be final and shall be effective on
the date the notice is signed by the city manager. Decisions of the debarment
committee are subject to review by the Appellate Division of the Circuit Court. A
debarred or suspended contractor may seek a stay of the debarment or
suspension decision in accordance with the Florida Rules of Appellate
Procedure.
Sec. 2-406. -Period of debarment or suspension.
(a) The period of debarment or suspension imposed shall be within the sole
discretion of the debarment committee. Debarment and suspension shall be for a
period commensurate with the seriousness of the cause(s), and, where
applicable, within the guidelines set forth below, but in no event shall debarment
exceed five years or suspension exceed two years
(b) Debarment. The following guidelines for the period of debarment shall apply
except where mitigating or aggravating circumstances justify deviation:
(1) For commission of an offense as described in subsection 2-404(a)(1 ):
Five years.
(2) For commission of an offense as described in subsection 2-404(a)(2):
Five years.
11 26
(3) For commission of an offense as described in subsection 2-404(a)(3):
Five years.
(4) For commission of an offense as described in subsection 2-404(a)(4):.(§l:
Two to five years.
(5) For commission of an offense as described in subsections 2-404(c)(1) or
(2): Two to five years.
(c) Suspension. The following guidelines for the period of suspension shall apply
except where mitigating or aggravating circumstances justify deviation:
For commission of an offense as described in subsection 2-404(b): Up to
two years .
.(Ql The debarment committee may, in its sole discretion, reduce the period of
debarment or suspension, upon the contractor's written request, for reasons such
as:
(1) Newly discovered material evidence;
(2) Reversal of the conviction or civil judgment upon which the debarment or
suspension was based;
(3) Bona fide change in ownership or management;
(4) Elimination of other causes for which the debarment or suspension was
imposed; or
(5) Other reasons the debarment committee deems appropriate.
(e) The debarred or suspended contractor's written request shall contain the reasons
for requesting a reduction in the debarment or suspension period. The city's
procurement office, with the assistance of the affected department, shall have 30
days from receipt of such request to submit a written response thereto.
SECTION 2. Repealer.
All ordinances or parts of ordinances in conflict herewith be and the same are hereby
repealed.
12 27
SECTION 3. Severability.
If any section, sentence, clause or phrase of this ordinance is held to be invalid or
unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect
the validity of the remaining portions of this ordinance.
SECTION 4. Codification.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is
hereby ordained that the provisions of this ordinance shall become and be made a part of the
Code of the City of Miami Beach, Florida. The sections of this ordinance may be renumbered or
re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section,"
"article," or other appropriate word.
SECTION 5. Effective Date.
This Ordinance shall take effect the __ day of October, 2012.
PASSED and ADOPTED this __ day of _______ , 2012.
ATTEST:
RAFAEL E. GRANADO, CITY CLERK
MATTI HERRERA BOWER
MAYOR
Underline denotes additions and strike through denotes deletions
APPROVED AS TO
FORM & LANGUAGE
& FOR , -CUTION
-1-'+~~rney=p{ n.J!) •:~
F:\ATTO\TURN\ORDINANC\Debarment and Suspension of Contractors from City Work.docx
13 28
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29
COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
ADOPTING THE THIRD AMENDMENT TO THE FY 2011/12 GENERAL FUND BUDGET AND THE SECOND
AMENDMENT TO THE ENTERPRISE, INTERNAL SERVICE AND SPECIAL REVENUE FUNDS BUDGETS FOR
FISCAL YEAR (FY) 2011/12
Key Intended Outcome Supported:
Ensure expenditure trends are sustainable over the long term
Improve the City's overall financial health and maintain overall bond rating
Supporting Data (Surveys, Environmental Scan, etc.}:
The $3.4 million in prior years surplus set-aside for FY 201/13 will not be available for FY 2013/14, immediately
creating a gap that will need to be addressed in FY 2013/14.
Item Summary/Recommendation:
Overall, there is a preliminary estimated operating budget surplus of $5,162,214 (2.2 percent) in the
General Fund. A significant portion of the surplus is due to Building Department revenues in excess of
budget by $3.8 million, resulting in a surplus of $535,000 attributable to Building rather than a loss of $2.3
million as budgeted. As a result, it is recommended that $535,000 be set aside for building department
reserves to offset future Building Department needs, in accordance with state law.
The estimated expenditures include $2.2 million set aside for FY 2012/13 to help offset increases in
pension costs as anticipated during the preparation of the FY 2012/13 budget. This $2.2 million was
derived from the pension savings in each department in FY 2011/12 based on the annual required
contribution (ARC) to the City's pension plans that was less than budgeted due to a one-time pension
credit pursuant to a rule from the State Division of Retirement which was subsequently rescinded.
Additionally, there are $440,000 in encumbrances from FY 2011/12 for goods or services which have been
procured but not yet received and expended, which will need to be re-appropriated in FY 2012/13. There
are also approximately $530,000 in projects that were budgeted in FY 2011/12 and which have not yet
been expended or encumbered and the funding is recommended to be carried forward to be spent in FY
2012/13 along with a set aside for the severance pay for the former City Manager's although this has not
yet been finalized. The amendment of the FY 2012/13 Budget for these items will require a separate
budget amendment which will be brought to the Commission for consideration once the year-end close-out
process is complete. As a result of the reserves required for these encumbrances and set asides, the
surplus is reduced from $5.2 million to $3.2 million. Since it is still very early in the annual close-out
process, an additional $500,000 is held as contingency for the close-out process and $2.7 million in
surplus be carried forward to FY 2013/14. This, similarly, will require a separate budget amendment which
will be brought to the Commission for consideration once the year-end close-out process is complete.
Only the Sewer Fund Enterprise Fund requires a budget amendment primarily due to increased sewer
treatment expenses, although funded by associated increased revenues. Only the Fleet Management
Internal Service Fund requires a budget amendment primarily due to increases in contributions for "Other
Post Employment Benefits", fuel and fuel-related costs, repair and maintenance cost, and increased debt
service. The 2 percent Resort Tax Fund expenditures are in excess of budget due to payments to the
Visitor's Convention Authority (VCA) which are based on a percent of revenues exceed budget and
enhanced efforts for Memorial Day, Spring Break, and other special events. The 1 percent Resort Tax
Fund expenditures are in excess of budget due the debt service and transfers for capital projects and arts
and cultural programs which increase as revenues increase.
Financial Information·
Source of
Funds: FY 2011/12
I I ..
OBPI
Financial Impact Summary:
Sign-Offs:
Department Director
Amount Account
$2,333,320 General Fund
$340,761 Enterprise Funds
$1,869,390 Resort Tax Fund
$548,610 Internal Service Funds
Assistant City Manager
AGENDA ITEM -R~7._H!....l-_
D.ATE I \-I y-I 2
30
(9 MLL\MIBE
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 Managejf'A I-
DATE: November 14, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING THE THIRD AMENDMENT TO THE FISCAL
{FY) 2011/12 GENERAL FUND BUDGET AND THE SECOND AMENDMENT TO
THE ENTERPRISE, INTERNAL SERVICE AND SPECIAL REVENUE FUNDS
BUDGET
ADMINISTRATION RECOMMENDATION
Adopt the resolution amending the FY 2011/12 General Fund, Enterprise Funds, Internal
Service Funds, and Special Revenue Funds budgets.
GENERAL FUND ANALYSIS
The Fiscal Year 2011/12 year-end budget to preliminary actual comparisons is presented in the
following pages. It is important to note that the Finance Department is still preparing year-end
accruals and adjustments through November 15, 2012, as part of the year-end accrual process.
The proposed budget amendment represents the budget amendment required by state law for
departments or accounts that exceed their appropriated authority.
In past years, the preliminary year-end analysis has been prepared in the early part of the next
calendar year. In an effort to provide this information on a more timely basis, the analysis and
recommended amendments presented herein are therefore still subject to change. However,
staff in the Office of Budget and Performance Improvement and the Finance Departments has
worked to identify any major adjustments that might be needed, particularly in the expenditure
area that would impact the required appropriation authority. We will continue to refine the
estimate and present an update once the year-end close-out process is complete, typically in
the March timeframe.
The following comparisons show that, overall, there is a preliminary estimated operating budget
surplus of $5,162,214 (2.2 percent) in the General Fund.
31
Third Amendment to the FY 2011/12 General Fund Budget and Second Amendment to the FY 2011/12 Enterprise,
Internal Service and Special Revenue Funds Budgets
Page 2
Adopted Budget as Preliminary FY
amended through 2011-12
General Fund February 8, 2012 year-end Budget/ Projected
Revenues $ 245,651 ,521 $ 247,984,841 $ 2,333,320
Expenditures* 245,651,521 242,822,627 (2,828,894)
Surplus/(Deficit) $ -$ 5,162,214 $ 5,162,214
Note: Excludes $1,031 ,000 in unrealized gains on investments
Includes $2.21 million pension credit surplus to be set aside for FY 2012/13
It is important to note that the estimated revenues are more than the third quarter projections
primarily due to increases in Property Taxes, and Licenses and Permits revenues. The third
quarter projections included a decline of approximately $2 million in property taxes due to the
difference between the certified taxable value used for calculations of property tax revenue in
the adopted budget and the final taxable value after value adjustments. The preliminary year-
end revenues do not reflect a decline from budget, despite the six percent decline in values,
which will need to be researched further as part of the year-end close-out process.
Further, it is important to note that a significant portion of the surplus is due to Building
Department revenues in excess of budget by $3.8 million, resulting in a surplus of $535,000
attributable to Building rather than a loss of $2.3 million as budgeted. As a result, it is
recommended that $535,000 be set aside for building department reserves to offset future
Building Department needs, in accordance with state law.
The estimated expenditures include $2.2 million set aside for FY 2012/13 to help offset
increases in pension costs as anticipated during the preparation of the FY 2012/13 budget. This
$2.2 million was derived from the pension savings in each department in FY 2011/12 based on
the annual required contribution (ARC) to the City's pension plans that was less than budgeted.
Beginning in FY 2010/11, the State Division of Retirement began monitoring employer
contribution payments based on percent of payroll, and is now requiring that City's adjust their
ARC at year-end based on this calculation. In the Fire and Police Pension Plan, this resulted in
a credit at year-end of $1.7 million that was applied to the FY 2011/12 ARC payment. The
MBERP pension plan has a similar credit of $0.5 million applied to the FY 2011/12 ARC
payment. However, this approach by the State Division of Retirement was subsequently
suspended and no further credits of this nature are anticipated.
Additionally, there are $440,000 in encumbrances from FY 2011/12 for goods or services which
have been procured but not yet received and expended, which will need to be re-appropriated in
FY 2012/13. There are also approximately $530,000 in projects that were budgeted in FY
2011/12 and which have not yet been expended or encumbered and the funding is
recommended to be carried forward to be spent in FY 2012/13. We are further recommending
that $420,000 be set aside for the severance pay for the former City Manager's contract
although this has not yet been finalized. The amendment of the FY 2012/13 Budget for these
items will require a separate budget amendment which will be brought to the Commission for
consideration once the year-end close-out process is complete.
As a result of the reserves required for these encumbrances and set asides, as well as the
additional Building operations reserve, the surplus is reduced from $5.2 million to $3.2 million.
32
Third Amendment to the FY 2011/12 General Fund Budget and Second Amendment to the FY 2011/12 Enterprise,
Internal Service and Special Revenue Funds Budgets
Page 3
Projected Surplus
Changes in Expenditure Appropriations
Reserve -Set Aside for Future Building Department Needs
Reserve-Encumbrances
Reserve-Set Aside for FY 2011/12 Projects in FY 2012/13, and
former City Managers Severance
Revised Net Surplus
$
$
$
5,162,214
535,000
440,000
950,000
3,237,214
Historically, surplus funds at year-end have been reserved for future years' budgets. The FY
2010/11, FY 2011/12, and FY 2012/13 budgets have included the use of $3.7 million, $3.6
million, and $3.4 million, respectively. It is recommended that approximately $0.5 million remain
in department budgets to address any unforeseen items that may arise through the year-end
close-out process since it is still very early in the process, and that $2.7 million in surplus be
carried forward to FY 2013/14. This, similarly, will require a separate budget amendment which
will be brought to the Commission for consideration once the year-end close-out process is
complete.
Although the estimated net surplus is similar to the $3.4 million projected as of the third quarter,
there are some three major differences in the components: 1) a difference of $2 million in
property tax revenues as described above; 2) An increase in Citywide Accounts expenditures
(excluding transfers and operating contingency) of $2.7 million above the 3rd quarter report (and
$3.4 million above budget), and 3) offsetting decreases in department expenditures due to
department vacancies as well as a slowdown in department spending.
The increase in Citywide Accounts expenditures was driven by a significant increase in leave
liability payouts which has two primary components:
• The most significant portion of this increase was due to an increase in leave used for
pension buybacks. This was impacted by the 2010 pension plan changes that came into
effect on June 27, 2012 with the Third District Court of Appeal unanimous decision that the
collective bargaining process set out in the Public Employee Relations Act is the final word
on implementing the collective bargaining rights guaranteed by the Florida Constitution.
Included in the negotiated pension changes was the ability for a member to exercise their
right to buyback prior creditable service upon vesting (ten years of service) compared to the
previous pension benefit that provided the ability for a member to buyback prior creditable
service upon twenty years of creditable service with the City. The 225 members that had
ten or more years of creditable pension service time as of September 30, 2010, were
notified that they had until September 30, 2013, to exercise their right to purchase these
buybacks. As a result, there was an influx of members who exercised this right and
purchased creditable pension service time immediately following the Third District Court of
Appeal's decision. Given the potential for additional purchases in FY 2012/13, this will need
to be closely monitored over the next year, but thereafter would be expected to decline to
prior year levels.
• The City also had significant increases in leave payouts due in part to higher numbers of
police and fire fighters retiring as well as payouts to several high level, long-term City
employees, including the former City Manager.
33
Third Amendment to the FY 2011/12 General Fund Budget and Second Amendment to the FY 2011/12 Enterprise,
Internal Service and Special Revenue Funds Budgets
Page 4
As in FY 2008/09, FY 2009/10, and 2010/11 no use of the General Fund surplus is
recommended to address the City's FY 2011/12 accrued liability for post employment benefits
(primarily health insurance) pursuant to recently enacted reporting requirements of
Governmental Accounting Standards Board Statement #45 (GASB 45).
An explanation of major variances are provided on the following pages, as well as a summary of
estimated actual FY 2011/12 revenues and expenditures.
GENERAL FUND OPERATING REVENUE AND EXPENDITURE VARIANCES
Revenues
On the revenue side, approximately $3.4 million in additional revenues are reflected in the City's
financials, of which $1,031,000 are a result of unrealized gains on investments reflected on the
City's financials which have a non-cash impact for FY 2011/12. Governmental Accounting
Standards Board Statement #31 (GASB 31) implemented in 1997 requires the City to report its
investments at fair market value as if they were immediately liquidated on September 30 each
year, and to recognize these impacts as "unrealized gains or losses on investments" on the
City's financials, even though there is no cash impact until the investments are actually
liquidated in the future. Estimated preliminary year-end actual revenues net of these unrealized
gains total $247,984,841; $2.4 million or 1 percent higher than the amended FY 2011/12
budget. The $2.4 million is primarily due to increases in Licenses and Permit fees, Fines and
Forfeitures and Miscellaneous revenues. These were offset by declines in Charges for Services
-Golf Course revenues, declines in Interest Earnings (net of the unrealized gains), not using
the Building Department Operations Reserve, and minor declines in Intergovernmental
revenues, Charges for Services -Other, and Rents and Leases.
Detailed comments on those revenue categories with significant variances over $300,000 or 10
percent are shown in the following section.
1. Licenses and Permits • This category is comprised of licenses and building and special
use permits. In total, the actual collections for Licenses and Permits exceeded budget by
$4.5 million, or 25.2 percent. The majority of this increase was from building development
process fee revenues, as a result of an increased number of permits and larger projects.
2. Fines and Forfeits -Year-end collections are above budget by 18.7 percent or $482,000.
This is mainly due to a $0.5 million settlement for a past violation for the Museum Walk
project.
3. Charges for Services -Golf Courses -Year-end collections are below budget by
approximately $.5 million consistent with third quarter projections due primarily to a wet
spring and summer which resulted in lower green fees and cart fees.
4. Interest-Year-end collections are below budget by 20.0 percent or $687,000. This is due
to unrealized gains in the amount of $1 million.
5. Reserve -Building Department Operations -As detailed above, no funds from the
Building Department Operations Reserve have been used in FY 2011/12.
34
Third Amendment to the FY 2011/12 General Fund Budget and Second Amendment to the FY 2011/12 Enterprise,
Internal Service and Special Revenue Funds Budgets
Page 5
Operating Expenditures
Preliminary year-end actual expenditures are approximately $2.8 million (1.2 percent) less than
the amended budget or $242,822,627. The department expenditures reflect the savings in each
department associated with the one-time pension credit of $2.2 million, offset by the set aside to
be carried forward to FY 2012/13. Even if this pension credit had not occurred, no department
would have exceeded its budget. Some departments were more than $300,000 or 10 percent
under budget as shown below. These departments are highlighted below.
1. City Clerk
In addition to the pension credit savings of approximately $7,000, the department is preliminarily
estimated to be below budget by approximately $240,000. $67,000 saving in salaries resulted
from the vacancies in the City Clerk and Assistant City Clerk for part of the year and
replacement of these positions with a lower salaried position and a part-time position for the
Assistant City Clerk, pending recruitment of a full-time position. In addition, there are estimated
to be $72,000 savings in professional services as the department did the majority of Spanish
translations in-house and a $97,000 savings in advertising, which is utilized as-needed.
2. Homeless Services
Expenditures
Prelimina Actual i ····················· $s2o;ooa···;
In addition to the pension credit savings of $2,356, the department is estimated to have
$143,949 in salary savings. The FY 2011/12 adopted budget included an enhancement
package, which provided Homeless Services with three new part-time positions; two Case
Worker lis and an Office Associate II which were vacant for much of the fiscal year.
Additionally, there were two full-time Case Worker II positions that were vacant during the early
part of the fiscal year due to resignations and layoffs.
3. Parks and Recreation -Excluding Golf Courses
················!· .................. !:\f!l~D9~9 1?~9gf:lt ............. Pr~lif!lit:l?r¥1:\~t~?l .. ; .... .
$21,894,546 $21,200,000 i
. 'Y~9Y~?rLLl::!Q9~rl ..
-3.2%
In addition to the pension credit savings of $92,000, the department is estimated to have salary
savings of approximately $400,000 primarily due to vacancies within the Recreation and the
Greenspace Management divisions some of which were held during the management transition
process. Approximately $250,000 in estimated savings in the professional services line item
were mostly due to savings associated with the independent contractor agreements, utilizing in-
house employees in certain areas rather using independent contractors as well as utilizing more
grant funding to cover expenditures normally covered by the general fund.
4. Public Works
35
Third Amendment to the FY 2011/12 General Fund Budget and Second Amendment to the FY 2011/12 Enterprise,
Internal Service and Special Revenue Funds Budgets
Page 6
In addition to the pension credit savings of approximately $25,000, the department is estimated
to be below budget by approximately $630,000 primarily due to $375,000 saving in salaries
which resulted from vacancies throughout the year including the City Engineer, the Streets
Operations Supervisor (position eliminated in the FY2012/13 budget), and the Environmental
Resource Manager. In addition, the department experienced a $142,000 saving in professional
services, which are utilized on an as needed basis only. The department's budget also included
an appropriation of $132,000 for the building assessments, which they have requested to be
rolled over to the FY2012/13 budget and is part of the recommended set aside for funding to be
carried forward to FY2012/13.
5. Capital Improvements Program
..... .Pr~li.~.i .. ~.?..r.¥. ... ~~!.1:1.c:l.l mj
$4,066,872 1
.m •••••••• % .... QY~~.L.(\d.Qq~r} ...
-14.8%
In addition to the pension credit savings for the Capital Improvement Projects Department of
approximately $28,000, the department also had salary saving of approximately $548,000. This
was primarily as a result of the vacancies during the fiscal year including: Assistant Director,
the Special Assistant to the City Manager, Financial Analyst I, two Capital Project Coordinators
positions, Performance/Scheduling Analyst and a Records Supervisor.
6. Fire
················~···
In addition to the pension credit savings for the Fire Department of approximately $811,000, the
department also had savings of $133,648 in holiday pay and $66,000 in uniforms which was
partially offset by $145,267 in overtime. Total operating expenditure savings of $233,354 due to
moving the cost of maintenance for beach restrooms and showers to Citywide Accounts were
offset by $193,890 in excess internal service charges largely due to increased fuel costs and
vehicle repairs and maintenance charged back to the department via fleet management.
7. Police
I
'''""'"'''''l' %9Y~F!.{!:!D9~rL.
-2.6%
In addition to the pension credit savings of approximately $1.1 M, the department is preliminarily
estimated to be below budgeted by approximately $1.3M primarily due to a $1.4M savings in
salaries which resulted from vacancies throughout the department caused by retirements,
resignations and some restructuring throughout the department. This saving was offset by a
$950,000 increase in overtime over the budget, primarily to cover vacancies, especially in the
Patrol division. The department also experienced savings in repairs and maintenance
($85,000), holiday pay ($70,000), contract maintenance ($85,000), other operating expenses
($1 01 ,000); and court overtime ($25,000) which are utilized on an as-needed basis. The
department also experienced $248,000 savings in professional services, as they did not
sponsor Officers to the Police Academy and $99,000 in rental expenses, due mainly to the
reimbursement of some rental expense by two outside agencies for five rental vehicles used by
our detectives while assisting other Task Forces.
36
Third Amendment to the FY 2011/12 General Fund Budget and Second Amendment to the FY 2011/12 Enterprise,
Internal Service and Special Revenue Funds Budgets
Page 7
REVENUES
Ad Valorem Taxes
Ad valorem 'raxes~s'"F>te costs·
1\(JVaTCirem cap.R.enewal &. Replace:
Ad valorem. Taxes~Normsfiores Other faxes· ·· ··· ····· ·
FY 2011/12
FY 2011/12
FY 2011/12 FY 2011/12 FY 2011/12 Preliminary
Adopted Amended Amended Estimated
Budget 1·11·12 2·08·12 Actual Over/(Under)
i I J ,98,19~!_()23JJ 98,198,923' $ 98,198,923! $ 98,228,000: $ 2.?!£77
10,439,424: '1o,439,424: · 16,439,4241 ... :~1·o~443!o6of' 3,576
·· T,i55,752 i ~1,755,752 ,· · {755;752: 1,756,ooo: 248
····· ·1os.4e9r· .:.·1o~.~~9j ·· ... '1os.4~~r· .:.jo~.Qq§J 531
24:278,3s5r·· 24,278,385 1 24,278,385 1 24,49o,ooo i 211,615
17,oi4:o53 !' .. '17,674;653 r ' 17:686,'553; '22~14'i~o6o'' ....... i(46b,447 Licenses arid Permits
lnter9o;,erriri1eriiaT·····
cfi'arges tor s€;rvices ······ bCiifcalir8es ···· · ........ -i~~~~a·~~·r··· :·~~~;J.~~~~J ..•...... 1 ·~:~;~:~~~·r··· ·•·• ~·:·;~n~6·r· :m~~~~~
5,805,119; 5,805,119! 5;sci5,11~J 5;298;66()f (56?;119)
Filles anCi'i=orfeits
Interest
····Unrealized 88'in8i(LossesFinvesiineni
Rentsan'ci'Leases · ··~···· • ·· ··
rV!Tscellaneous
Other-Resort Tax contribution
6iiler':"i'ion'operating revenues
R:eser¥e=suiiCiiri9oepartmei1tops.··
Prior~Year~i:ilC!'surplus's8t Aside
F'rlorYr suri)il1's''rrom Parkfn'9'bper i=Ci
TOTAL REVENUES
Total Net of Unrealized Gains/ (Losses)
EXPENDITURES
F>roc'urement
citY:'A!tCirileY: ·
R.eaiE~s!ate,·Housing & commDev community services · · .................................... ..
... Homeless services
sllildin 9 · · · ·
·ccicie compliance F'lanning. ... · ·· ·
'fouris·m & culturaiDe~iopmeni · ····· P8ikS and ·RecreatTon··········· . .. . .... .. . .. .............. -~ .. .
Golf courses
Public Works
capilai'.imilroveinei1Crro9ram Fire • · ~ ...
Police
citywiJ6'A.ccounts
cii'ywide.Acc~6peralil19coiiiingency
citywide l\ccoui1ts=~iorn1aiidy shore · ··
citywide Accounts-transfers .... .. .
cariTFaT'R'eiwwai & .. Replacement
Reserve -Carryforward Pension Credit Surplus
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER/
(UNDER) EXPENDITURES
-·~.!~?4.~oo L. ··:z~sF.Oaar· · 2,574,ooo . ·3.o56;oool · 4s2.aa·a
.3!43o!ooq: .... ~.4~~.ooqj ··... ·3;43g:,oa.o.; .. 2,743,ooo: ·~ @3y,6oo)
6,o34;143 i ·· 6,o3(1'43f · 6,034,143 1 ·· ~·:~~~:~~6f · · 1 '~~H~·~)
...... 1?!1?~:+~~·1..~.:. 12.:A2.3.449.T 12,423;449 · ·· 1·2;575,oo'o i 151,551
2€)!96~!~~9) 26,965,440 ~ · ·· 26;965)140 r · 26,965;44ci ; ·
.. 7!~.?..1 ... 502 : 7.9s1':'5o2 r ····7,981 .so:zf· ·· ·. 7·.981!qoo ,. ·· (5o2)
1,546,709' 1,546,769] 1,546,769i (1,546 .. !£.~)
...... 3;5~'1.)?o.r · 4.253.,461 r ... · 4.253.401 :"'
7,2oo,ooo : 7,2oo.ooo 1 7,2oo:ooo : ·
$244,336,740 i $ 245,039,021 ! $ 246,651,521 i $
$244,336,740 ; $ 245,039,021 . $ 245,651,521 i $ 247,984,841 $ 2,333,320
1,583,448 : 1 ,58~,~;1:8,;, 1 ,583,448 ' 1,550,000 : $ (33,448)
2,33·5:776[ 2,~~6, ~?6 .. : .. .. ~·~3.?.:?76 .. 2:216~oocrr · · (125;?76)
9o9:73o 1 909, 73o 909, 73o a6o,06o r (49, 730) .. ::~~~:ir~r~ . {J~~:!~~ , ...•. {~~~~·~~~ : " ~}~~~~:b~~ i .. . . iii~:!~§~
1,917,136: 1,917,136! · 1,917,136: 1.ii1a·:aao: · ·(1o7,136)
.. 1.f??:3~8_C · 1,772,35sf · ·1.7??.J3tis<J · . 1.?~o~~oo: ·(T32,3sa)
962,664 I , . 962,(364 i 9(32!.~64 : 870,000 ' (92,664)
4,159,498! 4,159,498[ 4,159,498: 4,12o,ooo: · (39,498)
·· · .. 8~$.!0il1 : · .. il1s:·a9'1l ·a15;o91 ao6,oob 1 • (15,691)
434,834 : . 434,834l. ....... 43(834 ; . 436,000 i (4;834)
921.844 ···· ~92'1.844 ,. · 92(84'4 r ......... ~:z~:.~ag.L~: J~§~!~~4)
.... ~~)?~!o4tr·· 1o.·;1543!~1f: .. 1o,655,84r·: · 1o,4oo.ooo 1 (255,841)
4,355A9.1.: 4,355,491 i · 4,355,4911 .. 4
3
..•. 1
1
)
4
.. o
0
.},o
0
: .. o0~o0 .. J.••···· ·. :: (1(_
6
95
8
.... A
3
...
2
9
4
1))
3,!~!.! 333 .i 3,208~'324 i 3,268~324 : .
2.426,925 : 2!4.?.f.Q~6'[. 2,427,686 . 2',3oo:ooo ! ·· T127:os6)
21;894;546 r 21 ,894,546 : 21 ,s9,(54sr · 21,26o;o6o r (694,546)
r~iN~~ ! · ... f~~~~~~·~+~ .... ~:~~~:~~·~ -· ··.:·.:·· ·~:~~~:~ti~F ... ·i~~~:!~~~
.
5
... 48~ .. ·.'
9
!.4
4
.,4
2
: .. o
3
9
9
4
1
·.!
1
;. ··· 4,i77,185'T '"4)i(18.ti.: 4,o7o,i:i66T ···· (767,18 5)
· 59;·66'1,686, 59,oo1,68o i ···· .........
8
fi8
9
.. o
6
':
0
o
0
g.:o
0
o
0
:o
0
:
1
;·:::((
2
J .. :o
3
o
9
'
3
I ... 2~81J53 .... )) 91,992,541! ....... 91;993;213i . 91 ,993,213[
8!~?2!525 1 ... 9.255;6 .. 95 r 9,255;695: ~ .... ~12;7oo,ooor-· 3,444 ... 365
951,612 i ,~51,(3,1?:.. 951,612 i ...... ' t (951;612)
'166:a7sl 166,875 · :. 1?E3:S.t~.I f6~ .. 8fs r
'797,385'1 · ·· 797:385 · 797,385 i 72o,ooo · (!7· .. ~.8,!))
:: 1. 75.5,75? c· :· .. 1 !.755, 752 ........ 1.?~6',t62! · 055:!52 : .. . . .. . .
1 2.21o.ocio r 2,21o,ooo
$244,336,740 i $ 245,039,021 , $ 245,651,521 $ 242,822,627 I $ (2,828,894)
l
of$ . ·oj$
37
Third Amendment to the FY 2011/12 General Fund Budget and Second Amendment to the FY 2011/12 Enterprise,
Internal Service and Special Revenue Funds Budgets
Page 8
GENERAL FUND BUDGET FY 2011/12 AMENDMENT
Although the total General Fund expenditure is below budget, Florida Statues require that actual
expenditures not exceed budget at the level at which the budget is adopted, which in Miami
Beach is at the Department level. Therefore, a budget amendment is required for departments
that overspent their appropriation and to allow the transfer to the set aside amounts for future
years' budgets.
ENTERPRISE FUNDS FY 2011/12 BUDGET AMENDMENT
The City accounts for proprietary operations in Enterprise Funds. Convention Center, Parking,
Sanitation, Sewer, Stormwater, and Water are in this grouping. As highlighted in prior quarterly
projections, the Sewer Fund requires a budget amendment as the FY2011/12 year end
expenses are projected to exceed the adopted budget by approximately $341,000. This is
primarily due to sewer treatment expenses exceeding the budget by $1.6M (offset by other
expenses being under budget including personnel costs and other operating expenses). Since
the sewer treatment expense is driven by consumption, the department also experienced a
significant increase in revenue over budget, thus allowing for a projected surplus of
approximately $450,000.
ENTERPRISE FUNDS
Sewer
Revenue Appropriation $ 34,478,643
Charges for Service 35,269,399
Total Revenue Increase $ 790,756
Expenditure Appropriation $ 34,478,643
Payroll and Fringes (268,154)
Operating Costs 633,631
Funded for Future Renewal & Replacement 0
Sewer Treatment 1,594,029
Operating Contingency (988,302)
Internal Service Charges 23,388
Capital & Debt Service (653,831)
Total Expenditure Increase $ 340,761
All other Enterprise funds are anticipated to be under budget despite absorbing increases in
contributions for "Other Post Employment Benefits" (OPEB).
INTERNAL SERVICE FUNDS FY 2011/12 BUDGET AMENDMENT
The City accounts for those goods and services provided by one department to other
departments citywide on a cost reimbursement basis. Central Services, Fleet Management,
Information Technology, Property Management, and Risk Management (Self Insurance) are
included in this grouping.
All Internal Service Funds are anticipated to be under budget, except Fleet Management.
38
Third Amendment to the FY 2011/12 General Fund Budget and Second Amendment to the FY 2011/12 Enterprise,
Internal Service and Special Revenue Funds Budgets
Page 9
Despite absorbing increases in contributions for "Other Post Employment Benefits" (OPEB).
Fleet Management is anticipated to have expenditures in excess of budget by approximately
$660,000 primarily due to increases in contributions for "Other Post Employment Benefits"
(OPEB), increased fuel costs (including associated increases in tire costs), and increased
repairs and maintenance, and debt service. These increases are offset by personnel cost
savings due to vacancies and turnover.
INTERNAL SERVICE FUNDS
Additional Revenue Appropriation
Interdepartmental Revenues
Total Revenue Increase
Additional Expenditure Appropriation
Payroll and Fringes
Operating Costs
Internal Services
Depreciation
Capital & Debt
Total Expenditure Increase
SPECIAL REVENUE FUNDS 2011/12 BUDGET AMENDMENT
FLEET
MANAGEMENT
$
$
$
$
548,610
548,610
(46,220)
308,926
(37,190)
323,094
548,610
The City's Resort Tax Fund is primarily supported by resort taxes collected pursuant to Chapter
67-930 (Section 6) of the Laws of Florida, as amended, and Section 5.03 of the City of Miami
Beach Charter, as amended. This legislation authorizes the use of resort taxes for the
promotion of the tourist industry, which includes, but is not restricted to the following: Publicity,
advertising, news bureau, promotional events, convention bureau activities, capital
improvements and the maintenance of all physical assets in connection therewith; and for the
payment of the reasonable and necessary expenses of collecting, handling and processing of
said tax.
The City imposes a two percent tax on the rent of rooms in any hotel, motel, rooming house or
apartment house. This two percent tax is also levied upon the total sales price of all food and
beverages (including alcoholic beverages). In addition to funding collection of the tax,
contributions to the Miami Beach Visitor and Convention Authority, and the Greater Miami
Visitor and Convention's Bureau, the City has considered the following services as "Services
related to the promotion of tourism":
• Police officers serving entertainment areas
• A portion of fire rescue services from Fire Stations 1 &2
• Ocean rescue services
• Sidewalk pressure cleaning in south, middle and north beach visitor areas
• South Beach sanitation
• Enhanced code compliance provided to respond to evening entertainment area
violations and staffing of special events
• Other code compliance activities in tourism and visitor related facilities/areas
39
Third Amendment to the FY 2011/12 General Fund Budget and Second Amendment to the FY 2011/12 Enterprise,
Internal Service and Special Revenue Funds Budgets
Page 10
• Tourism and Culture Department and the Cultural Arts Council
• Museums and Theatres (Garden Center, Bass Museum, Colony)
• Golf courses (net of revenues)
• Memorial Day and other special event costs
• Homeless services
• July 41h, Visitor Center funding, Holiday Lights, Festival of the Arts, Jewish Museum,
MDPL, Orange Bowl, Monuments, etc.
These allowable uses have led to increased tourist activities, such as special events, Art Basel,
and various concerts.
An additional one percent resort tax is levied on room rent. The proceeds of the additional one
percent (1 percent) tax are used as follows. Fifty percent of the amount earned is committed to
the payment of a portion of the debt service on the Miami Beach Redevelopment Agency City
Center/ Bonds. The remaining fifty percent is allocated equally among North Beach, Middle
Beach, and South Beach for capital projects that enhance Miami Beach's tourist related areas
and various arts and cultural programs. Actual revenues from the additional one percent that
exceed budget are automatically allocated to these categories, and, therefore, any revenues
collected in excess of budget, result in expenditures in excess of budget, thereby requiring a
budget amendment.
The 2 percent Resort Tax Fund operating revenues are in excess of budget by approximately
$6.3 million and, as a result, payments to the Visitor's Convention Authority (VCA) which are
based on a percent of revenues exceed budget by $300,000. In addition, expenditures related
to Memorial Day, Spring Break, and other special events exceed budget by approximately
$600,000 due to significantly enhanced efforts during these events.
As a result, there is an estimated net operating surplus of approximately $5.7 million 2 percent
Resort Tax revenues and expenditures.
RESORT TAX FUND
Additional Revenue Appropriation
2% Resort Tax
1% Resort Tax
Other Revenues
Total Revenue Increase
Additional Expenditure Appropriation
Other Operating/Other Uses
Transfer to Service and Special Improvement Districts Funds
Contributions to VCA and GMCVB
Marketing
Contingency
2% Debt Service
1% Debt Service
Transfer to Capital and the Arts (1 %)
Total Expenditure Increase
Additional 2% Resort Tax Revenues (Surplus)
$
$
488,402
1,300,000
80,988
1,869,390
447,897
218,993
(97,500)
650,000
650,000
$ 1,869,390
$ 5,700,000
40
Third Amendment to the FY 2011/12 General Fund Budget and Second Amendment to the FY 2011/12 Enterprise,
Internal Service and Special Revenue Funds Budgets
Page 11
In addition to the uses of the 2 percent Resort Tax, the proceeds of the additional one percent
(1 percent) tax are used as follows. Fifty percent of the amount earned is committed to the
payment of a portion of the debt service on the Miami Beach Redevelopment Agency City
Center/ Bonds. The remaining fifty percent is allocated equally among North Beach, Middle
Beach, and South Beach for capital projects that enhance Miami Beach's tourist related areas
and various arts and cultural programs. The 1 percent Resort Tax Fund operating revenues in
excess of budget by approximately $1.3 million and, as a result, the debt service and transfers
to North Beach, Middle Beach, and South Beach for capital projects and the transfers to the arts
and cultural programs exceed budget as shown below.
CONCLUSION
It should be noted that this actual is preliminary in nature due to the fact that the City's financial
records will not be closed until after the external auditors complete their review. Historically, this
occurs in April, with the City's Comprehensive Annual Financial Report (CAFR) For the Year
Ended September 30, 2012, usually available in May and the External Auditor's Report
available in July. However, this analysis has considered all year-end entries to date and
adjusted for pending entries where appropriate.
The resolution amending FY 2011/12 budgets will allow the third amendment to the
departmental appropriations within the General Fund, and the second amendment to the
Enterprise Funds, Internal Service Funds and Resort Tax Fund budgets to be enacted. This
action is necessary to comply with Florida Statutes which stipulate that we may not expend
more than our appropriations provide.
KGB\VK
41