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20170125 AA WorkshopAfter Action January 25, 2017 Commission Workshop City of Miami Beach Page 1 of 13 Commission Workshop City Hall, Commission Chamber, 3rd Floor, 1700 Convention Center Drive January 25, 2017 - 3:00 PM Mayor Philip Levine - Absent Commissioner John Elizabeth Alemán Commissioner Ricky Arriola Commissioner Michael Grieco Commissioner Joy Malakoff Commissioner Kristen Rosen Gonzalez Commissioner Micky Steinberg City Manager Jimmy L. Morales City Attorney Raul J. Aguila 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 Office of the City Clerk. Questions regarding the provisions of the Code should be directed to the Office of the City Attorney. To request this material in alternate format, sign language interpreter (five-day notice required), information on access for persons with disabilities, and/or any accommodation to review any document or participate in any City-sponsored proceedings, call 305.604.2489 and select 1 for English or 2 for Spanish, then option 6; TTY users may call via 711 (Florida Relay Service).In order to ensure adequate public consideration, if necessary, the Mayor and City Commission may move any agenda item to an alternate meeting. In addition, the Mayor and City Commission may, at their discretion, adjourn the Commission Meeting without reaching all agenda items. COMMISSION WORKSHOP ON AFFORDABLE/WORKFORCE/SENIOR HOUSING Vice-Mayor Malakoff called the Commission Workshop to order at 3:12:49 p.m. After Action January 25, 2017 Commission Workshop City of Miami Beach Page 2 of 13 REGULAR AGENDA R9 - New Business and Commission Requests 3:13:10 p.m. R9 A DISCUSSION REGARDING WORKFORCE/AFFORDABLE HOUSING IN THE CITY AND PROVIDING THE ADMINISTRATION DIRECTION AS TO POLICIES AND STRATEGIES TO BE EMPLOYED BY THE ADMINISTRATION. Housing and Community Services ACTION: Discussion held. Referrals made to Commission Committees (See Clerk’s Note). See Motions below. Lilia Cardillo to place referral items on the Commission Agenda, if received. Clerk’s Note: All below motions to refer items to Commission Committees are being treated as direction to staff, as no formal action was to be taken at the Workshop. All such referrals will be presented in a future Commission Meeting, so the Commission may formally take action. Summary of Motions MOTION 1: REFERRAL TO THE LAND USE & DEVELOPMENT COMMITTEE Motion made by Commissioner Rosen Gonzalez; seconded by Commissioner Alemán to refer the development of the City’s response to the County’s Workforce Ordinance, as well the below listed discussion item, to the Land Use & Development Committee. Referral approved by acclamation. Absent: Mayor Levine. Lilia Cardillo to place on the Commission Agenda, when received. Thomas Mooney to place on the Committee Agenda. Maria Ruiz to handle. DISCUSSION AT THE LAND USE & DEVELOPMENT COMMITTEE TO INCLUDE: 1. Draft a Resolution in compliance with the County’s Workforce Ordinance. Said Resolution, which must be adopted by December 31, 2017, must state whether the City will adopt a voluntary or mandatory workforce housing program. Maria Ruiz to handle. 2. Assess demand to provide workforce affordable housing to City personnel, including educators, City employees and safety personnel. Determine who falls into the workforce housing parameters, for example: teachers, nurses, firefighters and other City workers Maria Ruiz to handle. 3. Study and recommend possible housing locations and development of sites. Maria Ruiz to handle. 4. Discuss modifying the size minimums and averages for workforce housing; as well exemptions for parking requirements. Thomas Mooney to handle. 5. Update the City’s Comprehensive Plan to reflect a more realistic goal for the number of affordable housing units built in the City. Maria Ruiz to handle. TO DO: Maria Ruiz to provide a copy of the County Workforce Ordinance to the City Commission. After Action January 25, 2017 Commission Workshop City of Miami Beach Page 3 of 13 MOTION 2: MOTION TO REFER TO THE FINANCE & CITYWIDE PROJECTS COMMITTEE Motion made by Commissioner Steinberg to refer the discussion regarding financial analysis to Finance & Citywide Projects Committee, to analyze the type of build out, employees’ tenure with the City and employees’ length of residence in the City; seconded by Commissioner Alemán. Voice-vote: 6-0. Absent: Mayor Levine. Allison Williams to place on the Finance & Citywide Projects Committee. Maria Ruiz, Thomas Mooney and Saul Frances to handle. DISCUSSION AT THE FINANCE & CITYWIDE PROJECTS COMMITTEE TO INCLUDE: 1. Provide additional financial information relating funding alternatives for the different proposals. See what funding mechanisms have been utilized by other jurisdictions. Maria Ruiz to handle. 2 Floor Area Ratio (FAR) for affordable and workforce housing. Thomas Mooney to handle. 3. Discuss build out options for the Barclay Plaza Apartments for consideration in the P3 RFP issuance. Maria Ruiz to handle. MOTION 3: REFERRAL TO THE NEIGHBORHOOD/COMMUNITY AFFAIRS COMMITTEE Motion made by Commissioner Alemán to refer the discussion of workforce housing tenant policies to the Neighborhood/Community Affairs Committee and research how other jurisdictions are addressing the issue, the discussion to be placed on the agenda after assessment of the Barclay workforce housing consultant by the City’s P3 consultant; seconded by Commissioner Arriola; Approved 6-0;. Absent: Mayor Levine. Lilia Cardillo to place on the Commission Agenda, when received. Morgan Goldberg to place on the Committee Agenda. Maria Ruiz to handle. Summary of Presentation and Discussion Maria Ruiz, Housing and Community Services Director, acknowledged stakeholders representatives in the audience: Miguell Del Campillo, Executive Director, Housing Authority of the City of Miami Beach; Beatriz Cuenca-Barberio, Executive Director, Miami Beach Community Development Corporation; members from the City’s Committee on the Homeless and the Affordable Housing Advisory Committee; as well as individuals who actually need affordable housing. Ms. Ruiz explained that Affordable Housing is a major issue in every City across the country, and while Miami Beach has an acute issue due to the type of geography of the island, the City Commission has the ability to make changes and influence the future of the next generation to mitigate hopefully the existing problems. PowerPoint presented . Discussion continued regarding the Comprehensive Plan and the goal of creating 16,000 affordable units. Jimmy L. Morales, City Manager, added that $200,000 has been collected for homeless services and affordable/workforce housing funds, based on the short-term rental fines generated by the Special Master cases. Ms. Ruiz added that pursuant the City Commission’s direction, the first $200,000 collected from these fines would be used for homeless services, with 80% of any additional fines collected above the first $200,000 to be used for affordable/workforce housing purposes and 20% for homeless purposes. After Action January 25, 2017 Commission Workshop City of Miami Beach Page 4 of 13 Discussion continued regarding amending the Comprehensive Plan to a realistic number of affordable housing units. Ms. Ruiz explained that the 16,000 figure is in the Comprehensive Plan, but there is no documentation as to what methodology was used to formulate that figure. Commissioner Arriola explained that to get to 16,000 affordable units, the City would have to build affordable housing units at a cost of $3.9 billion; which is a very high number. Ms. Ruiz explained that the number of affordable housing units must be amended in the Comprehensive Plan to reach a realistic number. Discussion continued. Commissioner Alemán added that the Lottie Apartments is calculated at less than $145,000 per unit to renovate, and The London House rehabilitation was around $250,000 per unit. Even at 8,000 units at $145,000 per unit, it adds up to more than a billion dollars. She asked about assessing the demands for housing for vital personnel, teachers, firefighters, police, nurses, and essential City personnel required to support the community they live in. She requested prioritizing workforce housing for vital personnel from a community sustainability standpoint. City Manager Morales commented that the Federal dollars are tied into an 80% Maximum AMI threshold, and the Federal Government only funds projects up to 80%. The challenge is what subsidy will be given to attract developers to build workforce affordable housing. For instance, the subsidy could be free land, free development rights, or a cash subsidy from the County. Since the City is not using Federal or State monies, the City Manager opines that there is more flexibility in terms of putting conditions, such as requiring tenants to fall in the City resident or employee category. Maria Ruiz summarized that the consensus is to first assess the demands to provide workforce affordable housing to the vital personnel, inclusive of educators, municipal employees and safety personnel in the City. The PowerPoint presentation continued. Ms. Ruiz suggested referring the issue of complying with the County’s Workforce Ordinance to Committee in order to flush out answers for the County with respect to the City’s needs and what is practical for our City. Ms. Ruiz suggested discussing at Committee what the responses to the County’s Ordinance needs to be, as well as lay out a plan, either through volunteer or mandatory action, to promote workforce housing in the community. The deadline to submit to a response to the County is December 31, 2017. The issue of the complying with the County Workforce Ordinance is an administrative issue; the County wants to know if the City has the capacity and the desire to do something about workforce housing, and must know if the actions are voluntary or mandatory in nature. The County also requires that the City determine what incentives are planned to address the issue as a whole. The City is not required to create a mandatory number of workforce housing units. Discussion continued. Commissioner Steinberg requested bifurcating the issues and referring this portion to the Land Use and Development Committee. After Action January 25, 2017 Commission Workshop City of Miami Beach Page 5 of 13 Vice-Mayor Malakoff informed that the City must adopt a voluntary or mandatory workforce housing program by December 31, 2017; the City must show that they are taking steps to increase workforce housing within the City. MOTION 1: REFERRAL TO THE LAND USE & DEVELOPMENT COMMITTEE Motion made by Commissioner Rosen Gonzalez; seconded by Commissioner Alemán to refer the development of the City’s response to the County’s Workforce Ordinance, as well the below listed discussion item, to the Land Use & Development Committee. Referral approved by acclamation. Absent: Mayor Levine. Lilia Cardillo to place on the Commission Agenda, when received. Thomas Mooney to place on the Committee Agenda. Maria Ruiz to handle. DISCUSSION AT THE LAND USE & DEVELOPMENT COMMITTEE TO INCLUDE: 1. Draft a Resolution in compliance with the County’s Workforce Ordinance. Said Resolution, which must be adopted by December 31, 2017, must state whether the City will adopt a voluntary or mandatory workforce housing program. Maria Ruiz to handle. 2. Assess demand to provide workforce affordable housing to City personnel, including educators, City employees and safety personnel. Determine who falls into the workforce housing parameters, for example: teachers, nurses, firefighters and other City workers Maria Ruiz to handle. 3. Study and recommend possible housing locations and development of sites. Maria Ruiz to handle. 4. Discuss modifying the size minimums and averages for workforce housing; as well exemptions for parking requirements. Thomas Mooney to handle. 5. Update the City’s Comprehensive Plan to reflect a more realistic goal for the number of affordable housing units built in the City. Maria Ruiz to handle. TO DO: Maria Ruiz to provide a copy of the County Workforce Ordinance to the City Commission. Discussion continued regarding direction to develop workforce housing, parameters to use and locations. Ms. Ruiz asked for clarification as to whom they are building the units for at The Barclay, what they would pay, etc. The Barclay has a great deal of work that needs to be done, but also maintaining this historic building is costly. Commissioner Rosen Gonzalez stated that City employees should have a requirement of working for the City for at least two years before being eligible for workforce affordable housing. Discussion continued regarding Barclay Plaza Apartments. Vice-Mayor Malakoff asked if the City is allowed to charge a monthly maintenance fee. Ms. Ruiz answered that if they are not using US Department of Housing and Urban Development (HUD) monies, the City could define the terms going forward. The Manager clarified that maintenance fees are associated with ownership and that such fees would occur if the City were looking to make these units for home ownership instead of rental as currently directed. Discussion continued. After Action January 25, 2017 Commission Workshop City of Miami Beach Page 6 of 13 Commissioner Steinberg recommended referring the financial analysis and data to the Finance and Citywide Projects Committee to make a more informed decision. She suggested bifurcating issues and referring to different committees simultaneously in order to move forward. Ms. Ruiz asked that their P3 consultant assist them with the financial analysis, as this could be a key piece to what the space will look like in the future. City Manager Morales suggested including in the referral the issue of the development of the site. Commissioner Alemán suggested including scenarios of what the locations would be; employees’ tenure with the City, and what happens if a City employees leaves the City, whether it is their decision or the Administration, how would that work. Ms. Ruiz explained that some jurisdictions do not immediately terminate the lease upon leaving employment, but instead will not renew the lease. Ms. Ruiz stated that a decision was made earlier regarding the assessment from what the vital workers are, and that information would be relevant to this discussion. She explained that the referral should take place after the assessment is complete. Commissioner Rosen Gonzalez added that residents with a long history of residency in Miami Beach should be given preference. City Manager Morales explained that when using Federal or State monies, they could not have that preference; if monies are not tied to HUD, then they could look at those preferences. MOTION 2: MOTION TO REFER TO THE FINANCE & CITYWIDE PROJECTS COMMITTEE Motion made by Commissioner Steinberg to refer the discussion regarding financial analysis to Finance & Citywide Projects Committee, to analyze the type of build out, employees’ tenure with the City and employees’ length of residence in the City; seconded by Commissioner Alemán. Voice-vote: 6-0. Absent: Mayor Levine. Allison Williams to place on the Finance & Citywide Projects Committee. Maria Ruiz, Thomas Mooney and Saul Frances to handle. DISCUSSION AT THE FINANCE & CITYWIDE PROJECTS COMMITTEE TO INCLUDE: 1. Provide additional financial information relating funding alternatives for the different proposals. See what funding mechanisms have been utilized by other jurisdictions. Maria Ruiz to handle. 2 Floor Area Ratio (FAR) for affordable and workforce housing. Thomas Mooney to handle. 3. Discuss build out options for the Barclay Plaza Apartments for consideration in the P3 RFP issuance. Maria Ruiz to handle. City Manager Morales explained that any of these sites must be consistent with the available Floor Area Ratio (FAR). Commissioner Rosen Gonzalez favors an increase in FAR for affordable and workforce housing, if voted via Referendum. Discussion continued regarding FAR Referendum. Commissioner Arriola agreed with Commissioner Rosen Gonzalez regarding FAR increases going out to the voters, and other ideas such as transferring development rights (TDRs); which After Action January 25, 2017 Commission Workshop City of Miami Beach Page 7 of 13 allows them to create incentives and funding mechanisms to build affordable housing; so he suggested not only taking the set of laws existing in the books today, but thinking about ways to modify them to create the right economic structures to accomplish this goal. Vice-Mayor Malakoff explained that they looked at options with the TDRs when doing the Washington Avenue Master Plan and in North Beach, and the problem seems to be doing the bookkeeping of where the credits come from, how they are being used, how the money is being spent and who is tracking the expenses from the historic properties that are transferring over the TDRs, and that is where they ended up looking to have a fee rather than a TDR; but they could certainly look at it again. Commissioner Alemán stated that one of the recommendations from Michael O’Hara, Director of Housing Development Program, was to adjust the FAR, possibly to 1.5 in the RM-1 District, including Local Historic Districts for affordable housing developments. She would be in favor of a referendum on this issue. She asked if it would be helpful to obtain the opinion from the Historic Preservation Board (HPB) or take it to the voters first. Commissioner Steinberg clarified that for a ballot question there has to be specific language and definition. Discussion continued. Ms. Ruiz clarified, for the record, that The Concourse Group P3 consultant, is now working with them on the development of the RFP and they are bringing them onboard to obtain the information the City Commission requested. Clerk’s Note: At its January 25, 2017 Workforce/Affordable Housing Workshop, the City Commission was presented with a variety of issues associated with the Barclay Plaza Apartments workforce housing project that required greater Commission direction in order to prepare the development Request For Proposals (RFP). As a reminder, the City has retained Concourse Group as its Public/Private Partnership (P3) consultant. Concourse Group is currently undertaking a financial analysis of the site in anticipation of the RFP process. There were specific areas impacting the Barclay Plaza site that call for direction: 1. Will the project charge Market or Fair Market rents to its workforce tenants? 2. For those City employees who would be housed at this location, will there be a two-year minimum employment with the City to determine eligibility? 3. What are the build-out options on the Barclay Apartments property that can be developed as additional housing, i.e. parking lot? 4. Can there be a commercial component to the site to meet the needs of the area’s residents? The Barclay Apartments property is located on a unique lot that is fronted by Park Avenue on the east and Washington Avenue on the west. The property is comprised of the historic, 66-unit main building built in 1935 that rests on the east side of the property facing the historic district. To the west of the building, lies a pool and parking lot, which face the Convention Center on Washington Avenue. After Action January 25, 2017 Commission Workshop City of Miami Beach Page 8 of 13 The lot size is approximately 26,250 square feet. The Commission has already earmarked this property for the development of workforce housing serving persons employed in the education, public safety and municipal fields earning 120 to 140 percent Area Media income. This income range varies from $59,640 to $69,580 for a household of one. Affordable housing is defined as housing costing no more than 30 percent of a household’s income. Using this formula, rents should be no greater than $1,491 (for a household of one) to $2,884 (for a household of six). In comparison, the current Fair Market Rents as posted the Department of Housing and Urban Development, which have risen by about seven percent from the FY 2016 levels. For example, a one bedroom cost $774 in FY 2016 and is now valued at $831 in FY 2017. The restoration of the existing building will be extensive as the building has been poorly maintained, is not compliant with its 40-year recertification and suffered a fire in its historic lobby in February 2015. More so, vagrants have gutted its wiring and destroyed several windows and access points. The on-site pool is currently covered as a precaution for Zika. Staff had undertaken a preliminary site assessment in advance of selecting Concourse Group as its P3 consultant. Below please find the very preliminary figures as requested at the Workforce/Affordable Housing Workshop to be used for conversational purposes only as we await the Concourse Group’s analysis. The initial development investment for the property is $7,238,823 estimated at $200 per square foot with a 20 percent premium for LEED certification. The cost increases to $13,014,903 if the adjacent parking lot is developed as additional housing units. Adding the 10% design cost and fees, the project cost estimate becomes $15,097,287. Adding parking in lieu of fees ($1,140,000), the overall estimated development costs are $16,237,287. Please note that the Commission can waive the parking fees. Given the high development cost and narrow tenant requirements, staff recommends that projected rents be established at 30% of the targeted 120 to 140 percent median income ranges and adjusted for unit size. These proposed minimum ranges are lower than the Citywide average market rates for one- bedroom units that vary from $1,575 to $2,300. At its Workforce/Affordable Housing Workshop, the Commission suggested that a minimum tenure of working in the City and/or living in the City be established for incoming tenants. However, a firm period of tenure was not provided. Staff would need to establish a firm tenure period to provide direction to Concourse Group for the fiscal analysis as well as to provide guidance, ultimately, to the site’s developer. Staff recommends two years as a minimum tenure. This standard would apply for the length of employment for municipal employees and feeder pattern educators as well eligible current residents of the City seeking to relocate to the property. The property has a 10-space parking lot on its west side along with a full-size pool. This lot and the adjacent pool area have the potential for development to After Action January 25, 2017 Commission Workshop City of Miami Beach Page 9 of 13 maximize further the number of units that can be developed. Staff recommends including this area for development within the RFP would increase the project’s viability while also maximizing the number and size of units that could be offered on this site. Please note that these cost projections were included in the preliminary site analysis above. Finally, the exploration of mixed used developments was broached at the Commission Workshop meeting. This site, located across from the Convention Center and one block south of a new hotel being constructed at 21 st Street and Park Avenue, can possibly house an accessory use, i.e. dry cleaner, gym, etc. to increase operational revenues. While staff is reluctant to promote specifically an accessory use, it wishes to note that certain financing resources for the rehabilitation of the historic structure may require a commercial component for funding approval. As such, staff recommends that the Commission allow for an accessory use if tied to the project’s funding and only upon specific use approval by the Commission. This will enable respondents to the RFP to have broad latitude in conceptualizing the development site within the context of the surrounding neighborhood. PowerPoint presentation continued with the 2660 Collins Avenue project. Vice-Mayor Malakoff added that they still want to have as residents the vital workers, the teachers, nurses, firefighters and the City workers, who would fall under the workforce housing parameters. Ms. Ruiz announced, for the record, that the Shep Davis Plaza terminated its Section 8 agreement and elderly tenants there will most probably need to vacate the 49 units. Vice-Mayor Malakoff suggested combining affordable and workforce housing in a mixed use garage, with the skin of the garage containing some type of convenience stores. Discussion continued. Commissioner Rosen Gonzalez suggested building or rehabbing on top of existing parking garages workforce or affordable housing. She requested an inventory of existing multi-level parking lots. Saul Frances and David Martinez to handle. City Manager Morales explained that some garages have FAR height restriction issues, and other garages will have to be studied to determine if they can physically withstand the additional housing on top; but they could look into it. Discussion continued regarding minimum unit size at Shep Davis. Kathie G. Brooks, Assistant City Manager, stated that one of the things the Planning Department and the Administration have discussed is coming back to the City Commission with some exemptions for workforce housing in terms of unit size minimums and averages; as well exemptions for parking requirements. With the City’s trolley routes expanding, parking for these household units could possibly be reduced. Commissioner Alemán agrees with eliminating the parking requirement for City workforce housing, but suggested considering smaller units for the affordable housing as the residents will be mostly seniors. After Action January 25, 2017 Commission Workshop City of Miami Beach Page 10 of 13 Commissioner Rosen Gonzalez explained that in the overall work plan, she favors the business model where they would take historic buildings, renovate them and preserve them, as well as adding affordable housing. She asked since portions of North Beach have been declared historic, is the Administration looking at acquiring some of the smaller historic buildings, as those may be less expensive to renovate. Ms. Ruiz stated that there are not sufficient funds coming from HUD, and it is hard to project future funds. The allocations from the Federal Government are so small, that she would have to accumulate multiple year allocations to acquire and rehab properties; it would be a long-term endeavor that would tie up the funds without any real outcome. City Manager Morales explained that at the February 8, 2017 Commission Meeting, a referral item will be placed to the Neighborhood/Community Affairs Committee to talk about the West Lots. One of the recommendations made from Dover Kohl is to generate as much money as possible from the West Lots and then buy older buildings, instead of building new workforce housing on those lots. That would be an opportunity to generate a level of income that could be dedicated within North Beach to different types of projects, including workforce housing. Clerk’s Note: See item C4 A of the February 8, 2017 Commission Agenda. Commissioner Rosen Gonzalez asked if the sale of those lots has to go to voter referendum, and the answer was in the affirmative. She also asked that in Miami Beach Community Development Corporation (MBCDC) buildings, if they put some of the City’s monies, for example $200,000, could the City begin acquiring some of those smaller buildings now in North Beach for small-size families. She believes they need both strategies, one where they are investing in more land, and at the same time building affordable housing. City Manager Morales added that the challenge is when they try to access Federal and State monies to buy those properties, they will have the income restriction of 80% AMI, so it could work for affordable housing, but not for workforce housing. Discussion continued. Vice-Mayor Malakoff stated they need more information; there are different scenarios, including the West Lots, ground leases sales and rehabbing, and each one has a price tag. They need to be more informed. Discussion continued. City Manager Morales explained that the Housing Authority is looking at two sites and lots available in North Beach for future opportunities. Ms. Ruiz summarized that for this item there is an inclination for mixed use, which is inclusive of elderly workforce in that commercial piece; more analysis in order to make a decision; and additionally pursue an inventory of multi-level garages to determine which ones have the feasibility of including additional workforce housing on top. She added that those items were recommended by the Land Use & Development Committee, but they have yet to come to the City Commission for consideration. There was consensus to bring those items passed by the Land Use & Development Committee to the full Commission for consideration. PowerPoint presentation continued. After Action January 25, 2017 Commission Workshop City of Miami Beach Page 11 of 13 Ms. Ruiz asked for guidance as to whether they should use all the proceeds as the City Commission and City Manager alluded, from the sale of City assets, and/or a percentage of the General Fund be committed to this cause on an annual basis. There are communities that have earmarked a percentage of the General Fund, as it is a drastic issue within their communities. Ms. Ruiz stated that we need to determine how the City going to pay for this big-ticket item, which is such an important part of the discussion. City Manager Morales asked to what extent will the City offer development rights or offer the developer free air rights, or land as a subsidy for the workforce housing; it could be either cash or whatever their costs are. If the developer receives reduced land cost or air rights cost, that is a subsidy. Vice-Mayor Malakoff stated that the determination of what the appropriate subsidy is should be done on an individual basis. Ms. Ruiz agreed with Vice-Mayor Malakoff, and stated that it makes sense to do an analysis for each site, as there will be more people interested in some sites than others. Vice-Mayor Malakoff added that using moneys from the General Fund would not be a site-by- site comparison, which would be more policy determination. Ms. Ruiz responded that it would be a policy decision whether to create a recurring source of funds that could be drawn from. Commissioner Rosen Gonzalez stated that she would love for a percentage of the General Fund to go into investing for more properties; it does not have to be a significant percentage. Vice-Mayor Mayor Malakoff is concerned about funds coming out of the City’s Contingency Funds, because if a hurricane strikes, if we do not have a causeway working for months, storm surge hits the City, or any other terrible event happens, the City needs to have Contingency Fund large enough to sustain the City. Each year at budget time, she asks how the City can build up its contingency fund. Currently, the City has a healthy percentage in its Contingency Fund, but Vice-Mayor Malakoff asked if it was enough. Vice-Mayor Malakoff stated that we need to compare what we need to what we have. City Manager Morales agreed that the use of the General Fund is probably a dangerous one, as it may fluctuate; if the City experiences a big storm one year it could affect our property taxes. City Manager Morales stated that they could look at what other jurisdictions have done in terms of identifying other potential sources of funding for workforce and affordable housing. City Manager Morales is not sure if the penalties from short-term rental will suffice. There could be some other approaches for funding. City Manager Morales reiterated that the Administration would look to see what other jurisdiction have done. Maria Ruiz to handle. Commissioner Rosen Gonzalez added that they could use the parking and transportation funds to build workforce housing. During the last budget, there were $40 million set aside for the train project. Vice-Mayor Malakoff clarified that those funds were earmarked. Kathie G. Brooks, Assistant City Manager, explained that the parking funds has to be from prior year surplus pursuant to the bond covenant, and it has to be earmarked for usage at the end of the year, if they determine that there is a surplus. Surplus parking funds are currently being After Action January 25, 2017 Commission Workshop City of Miami Beach Page 12 of 13 committed for either building parking garages or to help fund transportation needs, for example the trolley project. Commissioner Arriola added that another idea was with the General Obligation Bond and earmarking some of that for affordable housing; this housing is an economic stimulus and an investment in the community and it is a wise thing to include some appropriations coming from the General Obligation Bond to buy affordable housing. If the Commission could provide workforce housing in the City, it helps the local community, and the money is recycled back into the community. Discussion continued. Commissioner Alemán stated there is a need to research what other jurisdictions have done with tenant policies. Maria Ruiz to handle. City Manager Morales suggested referring to the Neighborhood/Community Affairs Committee to see how other jurisdictions have dealt with different policies. MOTION 3: REFERRAL TO THE NEIGHBORHOOD/COMMUNITY AFFAIRS COMMITTEE Motion made by Commissioner Alemán to refer the discussion of workforce housing tenant policies to the Neighborhood/Community Affairs Committee and research how other jurisdictions are addressing the issue, the discussion to be placed on the agenda after assessment of the Barclay workforce housing consultant by the City’s P3 consultant; seconded by Commissioner Arriola; Approved 6-0;. Absent: Mayor Levine. Lilia Cardillo to place on the Commission Agenda, when received. Morgan Goldberg to place on the Committee Agenda. Maria Ruiz to handle. Commissioner Steinberg stated that what comes out of each committee might take them on another path on how they look at this; there will be more questions and more direction as well. Vice-Mayor Malakoff thanked Ms. Ruiz and everyone in the audience for discussing the item. City Clerk’s Note: See Item R10 A, in the January 25, 2017 Presentation & Awards City Commission. 4:28:00 p.m. R10 A from the January 25, 2017 Presentation & Awards City Commission Meeting. Raul J. Aguila, City Attorney, announced that pursuant to §286.011, Florida Statutes, the City Attorney hereby advises the Mayor and City Commission that he desires advice concerning the following pending litigation matter: BAKE HOUSE SB, LLC v. THE CITY OF MIAMI BEACH, CASE NO. 17-CV- 20217-JAL, UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT OF FLORIDA. Therefore, A Private Closed Attorney-Client session will be held at 4:45 P.M. on January 25, 2017, in the City Manager’s Large Conference Room, Fourth Floor, City Hall to discuss settlement negotiations and/or strategy related to litigation expenditures with regard to the above-referenced litigation matter. The following individuals will be in attendance: Mayor Philip Levine; members of the City Commission; Micky Steinberg, Joy Malakoff, Michael Grieco, Ricky Arriola, Kristen Rosen Gonzalez, and John Elizabeth Alemán; City Manager Jimmy L. Morales, City Attorney Raul J. Aguila, Chief Deputy City Attorney Don Papy, and First Assistant City Attorney Robert Rosenwald. Meeting adjourned at 4:28:22 p.m. After Action January 25, 2017 Commission Workshop City of Miami Beach Page 13 of 13 Handouts or Reference Materials: 1. LTC 536-2016 2. Ad No. 1261 published in The Miami Herald