LTC 188-2016 Project Update - Mt. Sinai Erosion Project with the US Army Corps of Engineers MAM1 BEAC H
OFFICE OF THE CITY MANAGER
NO. LTC# 188-2016 LETTER TO COMMISSION
TO: Mayor Philip Levine and Members of t, e City Corn ission
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FROM: Jimmy L. Morales, City Manager
DATE: April 29, 2016
SUBJECT: Project Update — Mount Sinai 'edical Center's Erosion Project with the U.S.
Army Corps of Engineers Under the Continuing Authorities Program (CAP), Section 14.
On April 9, 2014, the City Commission adopted City Resolution No. 2014-28535, in which the
City of Miami Beach entered into a Cooperative Agreement with Mount Sinai Medical Center
(Mount Sinai) to serve as their non-Federal sponsor for a mitigation project with the U.S. Army
Corps of Engineers (USACE), which aims to provide protection for critical infrastructure from
flooding and storm damages due to erosion. Mount Sinai has agreed to indemnify the City
against the cost.
The Total Project Cost is ultimately cost shared 65% Federal and 35% Non-Federal Sponsor,
with the Federal limit capped at $5 million. Financial responsibilities for Federal and Non-Federal
partners are as follows:
Maximum Funding Total Phase 1 Phases 2 & 3
Federal Cost Share— maximum allowable 5,000,000 162,500 4,837,500
Non-Federal Sponsor Cost 2,692,308 162,500 2,529,808
Maximum Project Cost 7,692,308 325,000 7,367,308
Mount Sinai has secured non-Federal matching funds in the amount of $2 million from the State
of Florida for this project. Mount Sinai needs to draw the matching funds from the State trust fund
to ensure these monies are not surrendered in the upcoming legislative year. In the interest of
securing these funds for the USACE project, the State of Florida has allowed the City to
encumber the funds on behalf of Mount Sinai. The City and Mount Sinai are having discussions
regarding entering into an Agreement, which would fully and legally commit the State funds to
the USACE project. The funds will be kept in a fully audited escrow account with Mount Sinai
bearing the escrow auditing requirements. Mount Sinai will pay the City a 1% audit fee for its
administrative efforts.
Project Status
On September 25, 2015, the City entered into an agreement with the USACE to begin the first of
three phases of the project - the Feasibility Study. The total cost of the Feasibility Study is
estimated to be $325,000, with the cost share agreement requiring a 50% match from the Non-
Federal sponsor. The Federal share is $162,500 and the required Non-Federal matching share
is $162,500. The amount of the Non-Federal matching share, $162,500 includes two credits in
the amounts of$25,000 (Study Coordination Team & audit costs) and $81,250 (in-kind services),
and one initial contribution in the amount of $56,250. Mount Sinai provided the $56,250 to the
City, which transferred it to the USACE in to the beginning of the Feasibility Study phase.
This project provides a unique opportunity to showcase the benefits of incorporating green
infrastructure with traditional gray infrastructure investments. To this end, the City has partnered
with The Nature Conservancy to hold a workshop on the benefits and feasibility of including a
hybrid or living shore line design as an option. Department of Emergency Management
personnel will continue to collaborate with the Public Works Department, the Chief Resiliency
Officer, the Environment and Sustainability Department, the City's Grants Officer and the
Finance Department to coordinate with Mount Sinai and the USACE on a regular basis to
facilitate this project.
JLM/CT/CRF/AST/CBR
F:\EMGT\$ALL\105 Director's Office\Correspondence\LTC 2016.02.03-Mt Sinai CAP Project-Update.docx