OIG No. 23-12: G.O. Bond Quarterly ReportJoseph M. Centorino, Inspector General
TO:
FROM:
RE:
July 5, 2023
Honorable Mayor and Members of the City Commission
Joseph Centorino, Inspector General
Inspector General G.O. Bond Quarterly Report
OIG No. 23-12
INTRODUCTION
This report is written in compliance with Section 2-256U) of the City of Miami Beach Code, which
requires the Office of the Inspector General (OIG), on a quarterly basis, to prepare and submit to
the City Commission a written report concerning the planning and execution of the General
Obligation Bond Program, including, but not limited to, progress reports, financial analysis and
potential risks. The review is based on official city records, OIG attendance at implementation and
oversight committee meetings, interviews with staff and other department personnel as well as
regular discussions with the Program Director. This report is intended to provide the Mayor, City
Commission and the general public with useful information and periodic evaluations regarding the
implementation of the G.O. Bond projects to date.
IMPLEMENTATION:
The most current implementation update on the 44 General Obligation Bond projects for the first
tranche of funding in the amount of $152,466,449, prepared by the administration, can be found
at https://docmgmt.miamibeachfl.gov/Weblink/DocView.aspx?id=289278&dbid=0&repo=CityClerk.
The OIG has previously reported that one of the performance measures driving the progress of
the program is the rate of spending. Twice a year, the Program Director presents an analysis of
the rate of spending in each bond category to the Oversight Committee. The analysis identifies
critical targets and specific milestones that must be met for the program to achieve the required
85% minimum spending threshold. Meeting this threshold facilitates the City's ability to return to
the bond market for additional funds to begin Tranche 2 projects. In OIG Report No 21-35, it was
documented that the cumulative expenditures had begun to slow.
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As of today, the project financials are as follows:
Parks Infrastructure Public Total
Safet
Spent $25,082,780 $17,545,487 $17,055,770 $59,684,037
Encumbered $12,263,060 $6,052,669 $3,818,189 $22,133,918
Available $49,387,106 $4,401,819 $15,532,008 $69,320,933
Future $81,167,054 $168,000,025 $34,809,033 $283,976,112
Total $167,900,000 $196,000,000 $71,215,000 $435,115,000
The chart below is an overview of spending trends.
Expenditure Timeline by Category
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0
Parks Infrastructure
Spent ■Encumbered ■Available ■Future
Public Safety
In late 2021, the Program Director projected that the minimum spending thresholds would be met
in Fall 2023 for the Parks Category, Spring 2023 for the Infrastructure Category and Summer
2023 for the Public Safety Category. This quarter, however, the rate of spending has continued
to slow and the projections for achieving the 85% milestone have changed. Within the Parks
Category, the new assumption is that the second tranche of money will not occur until April 2025.
To get to that milestone, the City must spend approximately $73.7 million and has currently spent
$25 million. The Infrastructure Category has been delayed until April 2024 and the Public Safety
Category until March 2025. Overall, approximately $59 million has been expended and another
$22.6 million is encumbered for a total of $81.6 million out of the $152 million of available Tranche
1 funds. The Program Director has advised the Oversight Committee that $41 million worth of
projects will begin in 2023.
According to the Program Director, these projections have been adjusted due to the impacts of
rising inflation, construction cost escalation (50%-60% increases according to Assistant City
Manager, Eric Carpenter), COVID-19 supply chain issues and shifting timelines for design and
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construction. The Program Director is confident that once construction starts, spending will
increase rapidly. Links to the Program Director's cash flow analysis are below:
https://docmgmtmiamibeachfl_goyu/yebL_ink/PdfViewer._aspx?file=ego0%2F289495%2F1-
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https://docmgmt_miamibeachfl_gov/yebLink/Pdfiewer_aspx?file=edoc%2F289495%2F1-
%20Agenda%20%20Handouts 5-24-23.pdf%3Fdbid%3D0%26repo%3DCityClerk%26pdNiew%3Dtrue -
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https://docmgmt_miamibeachfl_goy/yebL_ink/PdfViewer.aspx?file=edoc%2F289495%2F1-
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There were eleven previously identified projects that were to begin construction in 2023. Those
projects were:
1. Maurice Gibb Park
2. Bollards
3. Bayshore Park
4. Bike Lane Project on 23" Street
5. Flamingo Park, The Lodge and Softball Fields
6. Pedestrian Bridge
7. Police Headquarters
8. Traffic Calming/Bayshore and Palm View Neighborhoods
9. North Shore Playground
10. Soundscape Storage
11. Fire Station #1
Flamingo Park (Lodge and Softball Fields), Traffic Calming/Bayshore and Palm View
Neighborhoods and Fire Station #1 have been removed from the list of projects expected to begin
this year. The North Shore Playground will receive additional funds from the G.O. Bond for Arts
and Culture for artistic playgrounds and is expected to begin construction at the end of this year.
The Program Director has advised that the bond may be extended beyond the 12 years due to
delays in projects not just G.O. Bond related. Most notably are the neighborhood infrastructure
projects. The Program Director has explained that the original intention was to utilize Tranche 3
funds to complete the above ground infrastructure projects after the utility work had been done.
However, many of the utility projects have been 'delayed and it is unlikely the work can be
completed in 12 years.
To date, there has been a total savings in Tranche 1 of $3,683,181. A portion of the savings,
$2,273,272 has been transferred to other projects. Those projects were G.O. Bond Project #10,
Maurice Gibb Park, in the amount of $1.2 million and G.O. Bond Project #48, Police Headquarters
Facility in the amount of $1.1 million. There is currently $1.4 million in savings available.
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PROJECT UPDATES:
The construction of protected bicycle lanes and shared-use paths for Chase Avenue from Alton
Road to Praire Avenue on 34 Street, approved by the Commission, is 90% designed. The
Commission action was based on the recommendation of the Neighborhood Community Affairs
Committee which, in 2019, approved a conceptual plan consisting of a new 10 foot wide shared-
use path. As proposed and accepted, the 10 foot wide shared use path narrows to 8 feet adjacent
to a single family residence at 3186 Praire Avenue (See Resolution 2019-31036).
According to David Martinez, the 90% design documents have been approved by FOOT and the
permitting process is nearly complete. Based on the specific design of the shared use path, the
City is receiving a $495,075.00 grant from FOOT. FOOT utilized the Bicycle Facilities Manual of
Uniform Minimum Standards for Design, Construction and Maintenance for Streets and highways
{Florida Green book) which, for this project, requires a width of 10 feet for the path. This is
inconsistent with Resolution 2019-31036.
The project has a budget of $830,000 and $296,386 has been spent. At the May 23° Public
Safety and Neighborhood Quality of Life Committee meeting, Committee members stated that
they received a complaint from a resident regarding the 10-foot width of the proposed path.
Committee members asked staff to consider redesigning a portion of the path, bifurcating the
pedestrian path from the bike path, to accommodate the resident. Staff is considering other
options; however, this is dependent on FOOT agreeing with what the administration presents, as
the agency has jurisdiction over the final design. The Committee has asked for a report at its July
meeting. It was anticipated that the selection of a contractor would begin in June 2023. The project
is now delayed. The Oversight Committee at its June 22° meeting discussed this project at length
and passed a unanimous motion to support the staff's ultimate recommendation and move the
project forward as expeditiously as possible.
The Program Director has identified Fire Station #1 as a critical project to commence if spending
targets are to be met. Commencement of the project has been contingent on finding a location
for the day care center currently housed in the South Shore Community Center, the proposed site
for the new fire station. On June 13, the Historic Preservation Board reviewed the application for
the day care center to be constructed in Flamingo Park. The application was approved by the
Board. David Martinez advised the Oversight Committee that once the contract for the
construction manager at risk is awarded by the Commission in September, the day care center
will be ready for occupancy by the end of this year. Subsequent to that, the South Shore
Community Center will be demolished and construction can proceed. The project has been 90%
designed and the plans have been shared with all City Departments to review.
The Pedestrian Bridge has also been identified as one of the projects that must start construction
if spending goals will be met. An independent peer review of the structural components of the
bridge was conducted. Currently, however, the structure as designed, was found to be in conflict
with utilities in the area. The developer's design team is sorting through those utility conflicts that
are in close proximity to the foundations and columns associated with the bridge itself. Those
utilities include water and sewer lines that are close to the structure and which would be difficult
to maintain under the current design. The developer's team has met with the CIP Director and
Public Works Director, both of whom have provided feedback. There is a potential that the
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conflicts cannot be resolved and the pedestrian bridge would have to be redesigned causing a
significant delay.
At the June 20 meeting of the Land Use and Sustainability Committee, members stated their
expectation that the pedestrian bridge would be done in conjunction with the Baywalk links, which
has been prioritized and expedited by the City Commission pursuant to Resolution 2021-31630.
Committee members questioned CIP Director David Martinez regarding a potential funding gap
as well as the status of the agreements with the South Bay Club, Bay Garden Manor and Bayview
Terrace condominiums, which are required for the project to be completed. Mr. Martinez advised
the Committee that the potential funding gap will need to be addressed in 2025. There is currently
no agreement with Bay Garden Manor. The City has expanded the role of its consultant to include
finalizing the South Bay Club agreement. The project will be heard again at the July meeting for
an update on the pedestrian bridge and the status of the agreements.
On June 6", the City entered into an agreement with Calvin, Giordano and Associates, Inc. for
architectural design services for the Ocean Drive Corridor Improvement and Lummus Park
Enhancement Project. At the G.O. Bond Oversight Committee meeting on April 20, CIP Director,
David Martinez, advised that prior to completing the design for Ocean Drive and Lummus Park,
the City must perform a myriad of traffic studies in the area in order to make recommendations
for the ultimate design of Ocean Drive. Once the traffic studies are complete, conceptual plans
and a master plan for Ocean Drive will be prepared.
Finally, the conceptual design of the Marine Patrol Station was approved on June 6" by the
Design Review Board. It is expected that the procurement will begin in the middle of 2024.
There are three projects in Tranche 1 that are pending and have not started. The first is Project
#13, the North Shore Path and Fields. The Program Director has advised that this project will not
begin until Tranche 2. The project was originally scheduled to begin in January 2020 and now has
no anticipated start date. Carolina Jones, a member of the resident parks board, advised that the
board will revisit the project and work with the Parks Department to finalize design and scope for
the project.
The second project that has not started is Project #18, the Scott Rakow Ice Rink floor. The project
is the last subproject at the Scott Rakow Center, which had 10 subprojects. At the most recent
internal meeting with staff to discuss the status of the G.O. Bond projects, it was reported that this
project has not begun because there are other projects at the youth center, not funded by the
G.O. Bond, which will require the ice rink floor to be demolished. To avoid having to build the floor
twice, the Parks Department has elected to wait on constructing the ice rink. The Scott Rakow
project has savings available that could be used to fund other projects, but these cannot be utilized
until this final sub-project is completed.
Also, Project #52, LED Lighting for Parks, has a subproject that has not started. That project is in
Flamingo Park at the softball and baseball fields and will be done concurrently with the softball
and baseball field projects.
Finally, Project #9, Marjory Stoneman Douglas Park Lighting is in the design phase but will not
advance until a priority lighting project for the Parks Department, the South Point Park lighting
project, is reviewed by the Florida Fish and Wildlife Commission. Until that process is complete,
the pending subproject for Marjory Stoneman Douglas Park will not begin. Construction is
currently expected to begin in August 2024.
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CONCLUSION
The G.O. Bond Oversight Committee continues to thoroughly assess the work being done on the
Tranche 1 projects and to raise issues regarding the implementation. Although not detailed above,
one Committee member did request an updated timeline for project implementation. At the May
24" Oversight Committee meeting, the Program Director opined that the projects in Tranches 1&2
can likely be completed within the 12 years of the bond. However, because of the cost of
neighborhood projects and the consequent delay in starting them, the Tranche 3 projects, most
of which are above ground infrastructure, will be delayed.
Assistant City Manager Eric Carpenter attended the May 24th meeting and provided the
Committee with his assessment of the current situation. He explained that the above ground
portion of the infrastructure projects is between 5 and 10% of the overall cost of the projects. Due
to construction cost escalation over the past 3 to 5 years, there has been a 50 to 60% cost
increase, and, according to Mr. Carpenter, the City is reworking its capital budget projections on
all of its large scale capital projects, not just the ones in the G.O. Bond. While there have been
gaps in some of the G.O. Bond projects that have been filled, those same issues exist with respect
to the utility projects in the City. Mr. Carpenter has cautioned the Oversight Committee that, until
the City can identify the process by which it is going to cover the utilities funding gaps, it is not
going to be in a position to say definitively that the City can move forward with all of the projects.
As the implementation of the G.O. Bond continues to face obstacles, some projects may be
reduced in scope or eliminated altogether. Staff has been transparent with the Oversight
Committee regarding this possibility and continues to be responsive to all requests for additional
information.
ector General •/38° 6e
076ls3 7 Date
cc: Alina T. Hudak, City Manager
Maria Hernandez, G.O. Bond Program Director
Karen Riva, Chair Person of G.O. Bond Oversight Committee
OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach
1130 Washington Avenue, 6 Floor, Miami Beach, FL 33139
Tel: 305.673.7020 • Hotline: 786.897.1111
Email: CilyofMiamiBeachQIG@mniamibeach~l.gov
Website: www,mbinspectorgeneral,com
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