FINANCE AGENDA 6 30 17MIAMIBEACH
Cary of iliqmi Bcoch, 1700 Convention Center Drive, Miomi Beoch, Florido 33 I39, www.miomibeochfl.gov
COMMITTEE MEMORANDUM
Members of the Finance and Citywifie ProjectJCommittee
Jimmy L. Morales, city Manas", h b.-
June 30,2017
SUBJECT: MEETING OF THE FINANCE ANt[ CITYWIDE PROJECTS COMMITTEE
ON FRIDAY, JUNE 30,2017
A meeting of the Finance and Citywide Projects Committee has been scheduled for Friday,
June 30, 2017 at 2:30 pm in the Commission Chambers, 3'd Floor of City Hall.
The agenda for the meeting is as follows:
OLD BUSINESS
1. Discussion Regarding The Maintenance Of Public Bathrooms Cityrvide
Commission ltem C4N, February 8,2017
(Sponsored by Commissioner Grieco)
John Rebar, Parks and Recreation Director
Adrian Morales, Property Management Director
Sfafus; Discussion at commitlee.
Discuss Engaging ln A Pilot Program with A cost Reduction consultant
Commission Item C4N, March 1,2017
(Sponsored by Commissioner Arriola)
James Sutter, lnternal Auditor
John Woodruff, Chief Financial Officer
Sfatus,' ltem enclosed.
Discussion Regarding The Living Wage Rates For Fiscal Year 2017-2018, ln
Accordance With Chapter 2, Article Vl, Division 6, Section 2408, Of The City Code
Commission ltem C4G, April 26,2017
(Procurement)
Alex Denis, Procurement Director
Sfafus; ltem to be submitted as supplemental.
TO:
FROM:
DATE:
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4. Update On Energov Permitting System
Commission ltem C7M, April 26,2017
(lnformation Technology)
Mark Taxis, Assistant City Manager
Ariel Sosa, !nformation Technology Director
Sfafus; Discussion at committee.
5. Discussion To Explore A Lease To Bring The Wynwood Yard Goncept To North
Beach
Commission ltem R9AG, April 26, 2017
(Sponsored by Commissioner Arriola)
Eva Silverstein, Tourism, Culture, and Economic Development Director
Sfafus; ltem to be submitted as supplemental.
6. Discussion Regarding The City Clerk Rafael E. Granado's Annuat Performance
Evaluation
Commission ltem C4G, May 17,2017
(Office of the City Clerk)
Rafael E. Granado, City Clerk
Sfafus.' ltem enclosed.
7. Discussion Regarding The City Attorney Raul J. Aguila's Annua! Performance
Evaluation
Commission ltem C4l, May 17,2017
(Office of the City Attorney)
RaulAguila J. Aguila, City Attorney
Sfafus; ltem enclosed.
8. Discussion Regarding Contingencies When The City Bids For Construction
Contracts
Commission ltem R7K, June 7,2017
(Public Works)
Eric Carpenter, Assistant City Manager/Public Works Director
Stafus; ltem enclosed.
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NEW BUSINESS
9. Discussion Regarding The North Beach Town Center Redevelopment Proposal,
!nvolving Gity-Owned Parking Lots, Made By North Beach Town Center
Development, LLC, An Affiliate Of Pacific Start Gapital, LLC
Commission ltem C4C, May 17,2017
(Sponsored by Commissioner Malakoff and Co-sponsored by Commissioner Arriola)
Eva Silverstein, Tourism, Culture, and Economic Development Director
Kathie Brooks, Assistant City Manager
Sfafus.' ltem enclosed.
10. Discussion Regarding A New Lease Agreement Between The Gity And Sobe
Toscana LLC (New Tenant), lnvolving The Use Of Approximately 2,216 Square
Feet Of City Owned Unimproved Land, Located At22 Washington Avenue, Miami
Beach, Florida, Previously Used As An Outdoor Seating Area; Said Lease Having
An lnitial Term Of Five (5) Years, With One (1) Renewal Term Of Four (4) Years And
Nine (9) Months, At The City's Option, And To Run Concurrent With The Tenant's
Lease/Use Of An Adjacent Existing Restaurant Located At 816 Commerce Street,
Miami Beach, Florida
(Tourism, Culture, and Economic Development)
Eva Silverstein, Tourism, Culture, and Economic Development Director
Sfafus; ltem enclosed.
DEFERRED ITEMS
11. Discussion To Explore Placing Gameras On Every Gorner Of The MXE (Mixed
Used Entertainment) District And On The Beachwalk, And lnstalling Emergency
Activation Boxes Along The Beachwalk
Commission ltem C4P, March 1,2017
(Sponsored by Vice-Mayor Rosen Gonzalez)
Daniel Oates, Police Chief
Sfafus; ltem deferred pending direction from the Neighborhood and Community
Affairs Committee.
12. Discussion Regarding The Fees Charged To Developers To Appear Before The
Gity's Land Use Boards
Commission ltem C4F, April 26,2017
(Sponsored by Commissioner Alem6n)
Tom Mooney, Planning Director
Sfafus; Deferred to the July 28, 2017 FCWPC meeting, pending formulation of a
recommendation.
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13. Discussion Regarding Washington Avenue Parking And Workforce Housing
Options At 12341 1260 Washington Avenue
Commission ltem R9P, May 17,2017
(Capital I m provement Projects)
Saul Frances, Parking Director
David Martinez, Capital lmprovement Projects Director
Sfafus.' Deferred to the July 28, 2017 FCWPC meeting, pending further analysis.
14. Discussion Regarding An Economic Feasibility Anatysis For The Proposed North
Beach Neighborhood Conservation District
Commission ltem C4K, June 7,2017
(Planning)
Tom Mooney, Planning Director
Sfafus.' Deferred to the July 28,2017 FCWPC meeting, pending further analysis.
15. Discussion Regarding The Evaluation Of Gosts lmpacts Of lmproving The
Amenities At Soundscape Park
Commission ltem R7G, June 7,2017
(Tourism, Culture, and Economic Development)
Eva Silverstein, Tourism, Culture, and Economic Development Director
Stafus.' Deferred to the September 8, 2017 FCWPC meeting, pending evaluation of
cosfs,
16. Discussion Regarding Sustainable Funding Sources For Educational
Enhancements ln Miami Beach Public Schools
Commission ltem R9F, March 1,2017
(Sponsored by Commissioner Grieco)
Dr. Leslie Rosenfeld, Chief Learning Development Officer
Sfafus; Deferred to the September 8, 2017/October 13, 2017 FCWPC meeting after
school reconvenes and the Quality of Education Committee meets.
Finance and Citvwide Proiects Committee Meetinqs for 2017:
July 10 - Budget Briefing
July 21- Budget Briefing
July 28
August Recess
September 8
October 13
November 3
December I
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Committee Members
Commissioner Ricky Arriola, Chair
Commissioner Joy Malakoff, Vice Chair
Commissioner John Alem6n, Member
Commissioner Micky Steinberg, Alternate
JWMTG
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Cc. Mayor and Members of the City Commission
Management Team
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MIAMIBEACH
City of Miomi Beoch, 1700 Convention Center Drive, Miomi Beoch, Florido 33,l39, www.miomibeochfl.gov
COMMI EE MEMORANDUM
Finance and City Wide Projects
Jimmy L. Morales, City Manager
DATE: June 30,2017
SUBJECT: DISCUSS ENGAGING lN A PILOT PROGRAM WITH A COST REDUCTION
CONSULTANT
BACKGROUND
At the March 31,2017 Finance and City Wide Committee meeting, a referral from the
City Commission was (ltem C4N) was discussed regarding the engagement of a Cost
Reduction Consultant. ln addition, it was discussed to repeat the revenue enhancement
study of the City's Utilities department previous performed in 2009. Direction was given
to identify other areas for cost reduction potential so that an RFQ can be issued for both
the revenue enhancement and cost reduction review.
Cost reduction consultants perform audits of water, sewer, gas, electric, trash, telecom,
and other service contracts' (air conditioning/elevators) invoices searching to find errors
in billing and overcharges. Once these errors are identified, the consultant works to
obtain refund checks, negotiates best rates and reduces monthly operational costs for
their clients moving fonrvard. This consultant does not charge any up-front fees or costs
as they are compensated by receiving a percentage of refunds/savings.
There are other service providers which provide these services.
The City has utilized the following consultants in the past:o ln 2007, the City selected through an RFP process, Research Enhancement
SeMces to review the City's water, sewer, and storm water utility for unread,
misread, and unmetered services. Their review completed in April of 2009,
identified an estimated annual lost revenues of $550,000.. ln 2010, the City executed an energy management contract with Ameresco. This
consisted with a two year implementation period and then starting in 2013, the
City has been receiving the benefit of nearly $1.4 million in energy and water
savings. The total capital recovery period is 13 years at the end of which the City
will have recovered their costs and recognize the benefit of the retrofit.. ln 2015, Eric Ryan Corporation (ERC) was selected through an RFP process to
perform an audit of the telecommunication services. This included telephone
lines and network circuits. After an extensive audit, ERC made
recommendations to discontinue many services. Their recommendations fell into
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Finance and City Wide Projects Committee
Engaging in A Pilot Program With A Cost Reduction Consultant
June 30, 2017 Page2
the following three distinct categories.o The first category of recommendations was not feasible as there was a
need for the services that ERC was not aware of.o The second category of recommendations was implemented and upon
disconnect, the true need for the services was discovered and they had to
be restored.o The third and final type of recommendations was the actual verified
disconnects that did not interrupt any viable service. Of this third type of
recommendation, there are already $100,552 confirmed annual savings
and $778,241 pending disconnects to verify if valid.o The City is currently engaging ERC to perform the audit on the FPL bills for
utilities and on the AT&T, Verizon and Sprint bills for cellular services.
ANALYSIS
ln reviewing those areas previously reviewed by the City, it is recommended to solicit:. a revenue enhancement study of the City's Utilities department since the last
study was performed in 2009o a cost reduction consultant for the other areas not covered by previous reviews
as follows:o Credit Card Processing Serviceso lnsurance Policieso Security Serviceso Fedex, UPS shippingo Elevator Services
CONGLUSION
The Administration recommends that the Finance and City Wide Projects Committee
approval the issuance of an RFQ for both the revenue enhancement and cost reduction
evaluations.
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DISCuSSIoN Ar CoTUMITTEe MEETING
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MIAMI BEACH
City of Miomi Beoch, 'l 200 Convention Cenler Drive, Miomi Beoch, Florido 33 139, www.miomibeochfl.gov
COMMITTEE MEMORANDUM
To: Members of the Finance and Citywide Projects Committee
FRoM: Rafaet E. Granado, City Cterk
7*/DATE: July 30, 2017
SUBJECT: ANNUAL PERFORMANCE EVALUATION OF THE CITY CLERK
Commissioner Ricky Arriola, as Chair of the City's Finance and Citywide Projects Committee,
was charged with and has Gonducted City Clerk Rafael E. Granado's performance evaluation
and salary benefits review.
ln consideration and recognition of the City Clerk's performance for Contract Year April 30, 2016
through April 30, 2017, Commissioner Arriola recommended the following amendments to the
City Clerk's Employment Agreement:
Term: A One-year extension of the Employment Agreement, with a new termination
date of April 30, 2020.
Salary: A one-time 3% merit increase of $5,930, effective May 1,2017; for a new base
salary of $203,586.94.
457 Funding: An increase to the City's current contribution to the City Clerk's 457(b) Deferred
Compensation Plan, from $6,000 to $24,000 a year. (This amount is equivalent
to that received by the City Manager and City Attorney.)
Parking: lssuance of a designated parking spot at the City Hall Garage.
A copy of the City Clerk's accomplishments during Contract Year April 30, 2016 through April
30,2017 is attached hereto.
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CITY CLERK
Significant Prior Year Accomplishments:
. Elections. Successfully conducted Special Elections in March, August and November 2016. Due
to the large number of voters, Early Voting at City Hall, during these three Special Elections,
was held in the First Floor Conference Room, where for the first time a fully air conditioned tent
was erected that extended the voting area to the Breezeway in order to accommodate over 100
voter privacy booths.
o Electronic Election Filinq Svstem: lmplemented an electronic filing system for the Campaign
Treasurer's Reports. Previously, the required Treasurer's Reports had to be submitted on paper
in person or by mail to the Office of the City Clerk. Although the process worked well, it was time
consuming for City Staffers and inconvenient to the candidates, PCs, and ECOs. The new
electronic system, which took effect in January 2017, provides for: 1. Automatic auditing of
campaign finance reports for completeness and timeliness; 2. Availability of all campaign
finance forms required by Florida Statutes for filing; 3. Complete paperless reporting capability;
4. The use of e-mail notifications; 5. Direct data entry or capability of uploading data from third
party vendor software; 6. lnternet web-based search capability for the public, media, candidates,
PCs, and ECOs regarding reported campaign finance data; 7. Electronic referrals to the Florida
Elections Commission by filing officers; and 8. Migration of campaign finance data from prior
years.
Webpaqe: Significantly expanded the Office of the City Clerk's Election web presence, which
now includes: State of Florida Political Committee Database; City of Miami Beach Political
Committee and Electioneering Communication Organization Database; Most Commonly Used
Forms; and lnformation relating to the current year's election.
Public Records Requests: Responded to public record requests (PRRs). Ninetythree percent
(93%) of the public records requests received for records maintained by the Office of the City
Clerk were processed in 7 days or less. The Office coordinated and monitored all Citywide
PRRs to ensure prompt response.
Citv Commission Aoenda Preparation: Produced City Commission agenda materials for 27 City
Commission meetings and Workshops, oversaw the agenda preparation process, and updated
the City's webpage.
After-Actions: Produced 27 After-Action Reports for City Commission meetings and Workshops,
generated Log Notes for CommissionA/Uorkshop meetings and burned CD's for archival
purposes.
Automated Aqenda Svstem: The Office of the Clerk implemented NovusAGENDA. This
automated agenda process saves the City both time and money, and provides easy access to
City government for the residents and visitors of Miami Beach. The Office of the City Clerk
provides training in the NovusAGENDA to City departments as needed.
Aoenda Video lndexinq: lmplemented indexing of video content for each agenda item, which
provides the public with 24-hour, 365-day access to meetings of the City Commission. This new
feature allows the public to easily access and view videos of the item that is of interest to them,
rather than stream through the entire meeting. The video indexing of the items is accomplished
within one to three hours from the time the meeting ends.
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Ordinance and Resolution Reqistrv: Maintained a web-based Ordinance and Resolution registry
to provide an easy research tool for the public. Processed 72 Ordinances, 435 Resolutions and
546 contracts. The information is available at:
Ordinance:
http://docmomt.miamibeachfl.qov/weblinU0/edoc/147802/Ordinances%202016-present.pdf
Resolutions:
http://docmomt.miamibeachfl.oov/weblinUO/edoc/147801/Resolutions%20Reoistrv%202016-
present.pdf
Personnel Board: conducted employee election for the Personnel Board.
LaserFiche/Scannino: Scanned, indexed, quality-controlled and published all LTCs, Lobbyists
Affidavits, Board and Committees Applications, Financial Disclosure Forms, Ordinances and
Resolutions into LaserFiche; giving the public web-based access to all these documents.
Citv Code Updates: Transmitted Ordinances to Municipal Code Corporation for codification and
updated in the City's Code Book (paper and electronic version). Supplement 66 is the current
version.
Historical Archives: The Office of the City Clerk, pursuant to City Commission direction,
collaborated with the Florida lnternational University (FlU) to digitize the City's historical
photographic archives. A total of 24,348 historical photographs were digitized in 2016. The link
to the FIU server is http://dpanther.fiu.edu/dPanther/collections/mbda. ln addition, the project
was continued in 2017, with the digitalization of historical Ordinances, from 1915 to the 1g80's.
A total of 3,950 pages have been scanned to date, along with 8,439 Kardveyer contents or
index cards used prior to record keeping in electronic form.
Centennial Photo Exhibit: A Centennial Photo Exhibit, comprising of photographs from each
decade of the City's history, is now permanently displayed in the Fourth Floor City Hall Gallery,
pursuant to City Commission approval. The photographs depicted in the Centennial Photo
Exhibit were selected from the Office of the City Clerk's Historical Archives by City Clerk staff,
City residents, local historians and City staff.
Lobbvists: Processed 252 lobbyist registrations, 503 lobbying issues and maintained the
lobbyists annual disclosure records.
Boards and Committees: Maintained records for 32 Boards and Committees with 376 members.
Processed 206 Board and Committee Applications and 132 appointments. Posted on the Office
of the City Clerk's website a searchable database of all Boards and Committees on a weekly
basis. Created and posted on the Office of the City Clerk's webpage a database of current
Board and Committee openings, to assist residents wishing to become involved in City
government. Produced the Board and Committees Quarterly Attendance Report and the Board
and Committees Biannual Report. Authored the Board and Committee Minority Report.
Board and Committee Ethics Trainino Workshop: The Office of the City Clerk and the Miami-
Dade County Commission on Ethics and Public Trust hosted a 90 minutes presentation to an
audience of 96 members of the City of Miami Beach Boards and Committees, as well as City of
Miami Beach employees. The presentation was a comprehensive overview of the public
Records Act, Sunshine Laws, Miami-Dade County Code of Ethics, Financial Disclosures, and
Gift Policy for Public Officers and employees.
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Annual Reports: Processed Outside Employment, Gift Disclosure, Financial Disclosures and
Lobbyist Expenditure Forms, as required by the State, County and City.
Public Notices: Published the following advertisements: 45 meeting notices; 186 public
hearings; and 120 election information notices.
Special Master: Processed 1,427 new Special Master Appeals, Building Cases, Code Cases
and Fire Cases. Heard 299 Red Light Camera Appeals. Mailed 1,200 condominium common
area violations courtesy notices on 53 cases. Processed the recording and release of g30 liens.
Records Retention: Destroyed 867 cubic feet of records in FY lstl6.lmplemented an electronic
records system to simplify destroying records and tracking boxes once they are sent to GRM
Offsite Records Storage. Presently, a software web based database for Records Retention is
being custom designed by tr to track the retention schedule deadlines.
Assisted the Finance Department, Public Works Operations and Communications with records
destruction.
Held a Records Management class hosted by the State of Florida Library Division of Records to
educate City Hall employees.
Staff: Continued supplementing staff by recruiting senior and student interns.
Central Services Division
Mail Equipment. lmplemented a package tracker that follows packages from the time they
arrive at the Central Services Division, until they are delivered and signed for by the intendei
recipient, eliminating lost packages and wasted time searching for packages.
Copier Equipment: Central Services Division operates high speed, high volume photocopiers
and a digital color duplicator that reproduces professional results. These machines not only
copy, but also collate and staple finished documents, achieving cost effective digital
reproduction of printed materials.
Pfintinq Production: Central Services Division received approximately 1,450 print jobs in Fy
2015116, and produced approximately 3,581,000 impressions (Black and White/Color), at an
average of 298,000 impressions per month. These jobs included: Commission Meeting Agenda
Books, MB Line Magazines, Supplemental to City Code, After-Actions, Agenda Reviews,
Commission Committees Meeting Agendas, Proposed and Final Capital BuOgLt Books, Open
Enrollment Books/lnsurance Packages, Zoning Notifications, Proclamations, Posters, Flyers,
Brochures, Maps, Business Cards, Courtesy Notices, Meeting Notices (Board of Adjustments,
Planning Board, etc.), Permit Cards, Work Permits, Unsafe Stickers, Surveys, Vehicle Safety
and Storage Receipts, lnspection Handouts, Daily Reports, lnformation Logs, Code ViolationForms, Employees Applications, Retiree Enrollment Applications, Door Hangers,
Transportation Element, Residential Parking Permit Application, Residential parking permit
Renewal, Players/Parents Code of Conduct, Release of Liability, Rules and Regulations,
Warning Signs, Off-Duty Applications, Police Department Forms, Meter Parking Formi, etc.
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MIAM!BEACH
Cify of Miomi Beoch, ,l700 Convention Center Drive, Miomi Beoch, Florido 331 39, www.miomibeochfl.gov
COMMITTEE MEMORANDUM
TO: Members of the Finance and Citywide Projects Committee
FRoM: Raul J. Aguila, City Attornqf.(- U.>
DATE: July 30,2017
SUBJECT: ANNUAL PERFORMANCE EVALUATION OF THE CITY ATTORNEY
Commissioner Ricky Arriola, as Chair of the City's Finance and Citywide Projects Committee,
was charged with and has conducted the City Attorney Raul Aguila's performance evaluation
and salary benefits review.
ln consideration and recognition of the City Attorney's performance for Contract Year May 16,
2016 through May 16 2017, Commissioner Arriola recommends the following amendments to
the City Attorney's Employment Agreement:
Salary: A2o/o merit increase of $5,486.12, effective May 16,2017; for a new
base salary of $279,792.36.
IRA Contribution: City's contribution to the City Attorney's lRA Account in the amount
of $6,700
F:\ATTO\AGUR\FCWPC MEMO 2017 2.doc
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MIAMIBEACH
City of Miomi Beoch, 1700 Convention Cenler Drive, Miomi Beoch, Florido 33,l 39, www.miomibeochfl.gov
Finance and Citywide Projects
Jimmy L. Morales, City Manager
June 30,2017
Contingencies When The City
BACKGROUND
At the City Commission meeting on June 6, 2017, during a discussion regarding ltem R7K, a
resolution authorizing a change order for a construction project along Washington Avenue,
concern was raised that the original contract award did not have a contingency built in to the
project. Subsequently, a motion was made to further discuss this issue at the Finance and
Citywide Projects Committee.
ANALYSIS
The Department of Public Works is involved with many construction related projects throughout
the City. Contracts are necessary for all aspects of these projects from engineering services
including surveying, design, and construction oversight to the actual construction contractor.
Prior to entering into these contracts, an estimate is performed to develop a budgetary number.
lnevitably situations arise during the course of the execution of the contract that were not
anticipated during the initial project cost development. As such, a contingency is added to the
cost estimate. This is generally 10 to 15 percent based on the type of the project and the
degree of uncertainty that the project cost is based upon. When a project is presented to the
City Commission for approval, the budgetary cost estimate including the contingency is
provided.
During the execution of the scope of the work, the unanticipated work or additional work
required can be absorbed by the contingency. However, should the amount of additional work
or an unforeseen circumstance arise that causes such cost to exceed the projected budgeted
and approved amount, a change order is required and additional City Commission approval is
required.
CONCLUSION
The following is presented to the members of the Finance and Citywide Projects Committee for
discussion and further direction.
rMt#)uP
TO:
FROM:
DATE:
SUBJECT:
ITTEE MEMORANDUM
Construction Contracts
F :/fiorel lalcity comm ittee/fcwpc/contract conti ngency 063020 1 7
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DATE:
Jimmy L. Morales, City Manager
June 30, 2017
TTEE MEMORANDUM
THE POTENTIAL EXCHANGE OF
oF iflAMr BEACH (C!TY) AND NORTH
MIAMIBEACH
Ciiy of Miomi Bcoch, l70O Convenlion Cenler Drive, Miomi Beoch, Florido 33 139, www.miomibeochfl.gov
TO:Finance and Cigwide Projeds
SUBJECT: A DTSCUSSION
PROPERTIES BETI'WEN THE
BEACH TOWN CENTER DEVELOPilENT, LLC (NBTCD); SA|D pROpERTtES
LOCATED AT 6995 BYRON AVENUE AND 6960 HAROING AVENUE, MtAMt
BEACH, FLORIDA, CONSISTING OF APPROXffiATELY 31,375 SQUARE
FEET (CITY PROPERTIES), AND 6957 & 6965 BRYON AVENUE AND 6948,
6956 & 6964 ABBOTT AVENUE, MtAiit BEACH, FLORIDA, CONSISTING OF
AppRoxtmATELy 30,500 SQUARE FEET (NBTCD PROPERTIES).
BACKGROUND
At its November 18, 2008 nreeting, the Finance and Citywide Projects Committee, authorized
the Administration to approach City National Bank to explore a joint development agreement, or
a land swap, for one of the preferred parking garage sites identified in the North Beach Town
Center Plan (adopted July, 20Ol).
The Administration subsequently held numerous discussions with representatives from City
National Bank. Discussions ended because City National was engaged in developing numerous
new branch locations and was not ready to consider development proposals.
ln March 2017, an entity controlled by North Beach Town Center Development, LLC ('NBTCD')
purchased all the sites owned by City National Bank. NBTCD is interested in developing a
mixed-use projec't within the North Beach Town Center, and has approached the City regarding
exchanging various properties in the area to facilitate its development, and provide the City with
municipal parking and (at Cig's option) workforce housing.
ANALYSIS
The City is the owner of two (2) properties located at: 1) 6995 Byron Avenue, Folio #: 02-9211-
002-0950, consisting of 12,625 square feet (.29 acres), and currently utilized as Parking Lot
P80, containing 30 parking spaces; and 2) 6960 Harding Avenue, Folio #: 02-3211-OO2-O91O,
consisting of 18,750 square feet (.43 acres), and currently utilized as Parking Lot P&4,
containing 53 parking spaces ("City Properties' or'subject Sites 1 and 2") (collectiveiy, the 'Cig
Properties'). The City Properties are outlined in red, and identified as Numbers 1 and 2 on
Exhibit "A," attached hereto.
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Finane and Citywrte Priects Committee Memuandum
Notth Beadt Tam Center
June 30,2017
Page 2 of 3
North Beach Town Center &velopment, LLC ("NBTCD) is the owner of five (5) properties
located at: 1) 6957 Byron Avenue, Folio #: 02-3211-002-0990, consisting of 6,250 square feet
(.14 acres); 2) 6965 Byron Avenue, Folio #: 02-3211-002-0970 (south hatf only), consisting of
6,250 squarc feet (.'14 acres); 3) 6948 Abbott Avenue, Folio #: 02-3211-0f,l2-1010, consisting of
6,000 square feet (,14 acres); 4) 6956 Abbott Avenue, Folio #: 02-3211-@2-1020, consisting of
6,000 square feet (.14 acres); and 5) 6964 Abbott Avenue, Folio #: 02-3211-002-1030,
consisling of 6,000 square feet (.14 acres) (collectively, the "NBTCD Properties"). Said
properties are outlined in blue, and identified as Number 3, on Exhibat ?," attached hereto.
The City received a term sheet from NBTCD, attached hereto as Exhibit 'B' ('Term Sheet"), for
the exchange of the above referenced properties. The Administration met with representatives
from NBTCD on June 1,2017, to discussthe proposed terms.
NBTCD is proposing a mixed-use development including retail, office, residential and parking,
between Byron and Harding Avenures. NBTCD will construct and convey to the Clty a public
parking garage with at bast 270 spaes. Additionally, NBTCD and the City will explore building
up to three (3) floors of workforce housing above the parking garage.
As further described in Sec'tion B of Exhibit "B' (Term Sheet), attached hereto, the fee
ownership of the properties between Byron and Abbott Avenues will be divided into Parcels A
and B. ParcelA and Parcel B will be joined together via a Covenant in Lieu of Unity of Titte ClL.
Parcel A will be owned entirely by NBTCD. Parcel B will have ground floor retail owned by
NBTCD. The City will own the parking garage ramp that starts at the ground floor and the
parking garage situated above the ground floor on Parcel B. The parking garage ramp will also
serve as acess to NBTCD's parking garage located on Paroel A.- NBTCO witt pay its
proportionate share of maintaining the ramp and any other commonly used facilities such as
elevators and stairways, etc. An Easement and Operating Agreement will identify the
commonly used facilities and will provide for easernents and cost sharing.
The proposed conveyance of the City Properties is subject to compliane with:
(1) Section 1.03(bX4) of the City Charter, which requires approval by 4l7h
vote d the Planning Board, and 6/7th vote of the City Commission; and
(21 Sections 82.36 through 8240 of the City Code ('Sale or Lease of Public
Property').
NBTCD proposes the exchange as an "even swap', with no monetary consideration trading
hands. The Administration has ordered, at NBTCD's expense, an appraisal of the respective
City and NBTCD Properties to assist in analyzing the proposed transaction. Appraisal of the City
Properties is required pursuant to Section 82-39(b) of the City Code, unless waived by Sflh vote
of the City Commission (findirq that the public interest would be served by such waiver).
The proposed exchange cannot be predetermined to have no monetary consideration untit the
market values of the properties are determined in the context of the proposed development.
The proposed transaction would be subject to, amongst other things, the results of the appraisal
and the City receiving fair market value for the exchange of the properties which, likely, vrould
include additional compensation to the City since the combining of the properties woukt allow for
more intense development. The appraisers have been instruded to consider the cunent and
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Fhance and Cilyvvkle Prcieots Committee Memorand.tm
North Beactn Tatn Center
June 30, 2017
Page 3d 3
future zoning districts (TC-l and TC-3 for the Subject Sites), including implications such as
maximum FAR, maximum height and main permitted uses. The appraisal should be finalized by
the end of this month.
As further described in Section C(5) of the Term Sheet, NBTCD has proposed that the parking
spaoes in the City garage be metered but allow for two (2) free hours of parking. At this time,
the Administration is generally receptive to this @ncept, so long as there is a contribution from
the developer and/or tenants towards the garage revenues. While there is a similar parking
arangement at the stn & Atton Municipal Garage (GE) regarding the first two (2) hours of
parkirg; additional research needs to be performed to determine the best policy for this location.
Additionally, in the event the demand for parking decreases in the future, and/or the parking
spaoes are not fully utilized, the City would reserue the right to convert the parking area to
alternative uses.
coNcLustoN
The Administration is seeking a preliminary Ecommendation from the Finance and Citywide
Projects Commiftee regarding the potential excfrange of the properties.
Exhibits:A Subject SitesB Term Sheet
JLIIUKGB/ES/MMM
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MIAMIBEACH
City of Miomi Beoch, ,l700 Convention Center Drive, Miomi Beoch, Florido 33.l39, www.miomibeochfl.gov
COMMITTEE MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Jimmy L. Morales, City Manager
June 30, 2017
A DISCUSSION REGARDING A LEASE AGREEMENT BETWEEN THE
clTY AND SOBE TOSCANA LLC (NEW TENANT), INVOLVING THE USE OF
APPROXIMATELY 2,216 SQUARE FEET OF CITY OWNED UNIMPROVED
LAND, LOCATED AT 22 WASHINGTON AVENUE, MIAM! BEACH, FLORIDA,
PREVIOUSLY USED AS AN OUTDOOR SEATING AREA; SAID LEASE
HAVING AN lNrTrAL TERM OF FIVE (5) YEARS, WITH ONE (1) RENEWAL
TERM OF FOUR (4) YEARS AND NINE (9) MONTHS, AT THE CITY'S
OPTION, AND TO RUN CONGURRENT WITH THE TENANT'S LEASE/USE
OF AN ADJACENT EXISTING RESTAURANT LOCATED AT 816 GOMMERCE
STREET, MIAMI BEACH, FLORIDA.
BACKGROUND
On November 9, 2016, the City Commission adopted Resolution No. 2016-29638 approving
and authorizing a new lease agreement with Florida Food District lnc., involving the use of
approximately 2,216 square feet of City owned unimproved land, located at 22 Washington
Avenue, Miami Beach, Florida (Property). The Property is adjacent to an existing restaurant
space located at 816 Commerce Street, Miami Beach, Florida (Restaurant), and was used as
an outdoor seating area. The Restaurant accommodates approximately 60 seats and the
Property accommodates outdoor seating for approximately 65 seats. On May 16,2017, Florida
Foods District lnc. requested the assignment of their lease agreement to Sobe Toscana, LLC
(New Tenant). The City Attorney's Office recommends that a new lease agreement be executed
with the New Tenant since Florida Food District lnc. has ceased operations and vacated the
Property.
ANALYSIS
The principal of Sobe Toscana, Catherine Arrighi Guitera, has extensive experience operating
restaurants in Miami Beach, including Ocean's 10, located at 960 Ocean Drive, for over fifteen
(15) years. The new restaurant at 816 Commerce Street will be operated as an ltalian pizzeria.
The basic terms and conditions of the proposed lease agreement are generally consistent with
the previous lease, with the continuation of the base rent schedule and annual rent increases,
as follows:
Finance and Citywide Projects
Premises:22 Washington Avenue
31
Finance and Citywide Projects Commiftee Memorandum
NewLease Agreement - Sobe Toscana, LLC.
June 30, 2017
Page 2 of 2
Size:
!nitialTerm:
Approximately 2,216 square feet
Five (5) years, commencing August 1,2017 and ending July 31 ,2022
Base Rental Rate: $22.51 per rentable square foot ($49,882.20 annually, $4,156.85
monthly), plus applicable sales tax.
lncreases:The Base Rental Rate shall be increased by three percent (3%) annually.
Renewa! Option: Tenant shall have one (1) renewal option, at the City Manager's sole
discretion, for a period of four (4) years and nine (9) months. Subject to
the City's approval of the renewal term, the City has the right to re-
negotiate the Base Rent amount based upon a percentage of gross
receipts or may continue to be assessed as a flxed annual rent, based
upon the fair market rent at the time, to be escalated annually by three
percent (3%); however, at no time will the Base Rent during the renewal
term be less than the rent for the previous lease year plus the three
percent (3%) escalation.
Security Deposit: $12,470.55 (three (3) month's rent)
Personal Guaranty: A rolling six (6) month personal guaranty shall be provided by Tenant's
principal, Catherine Arrighi Guitera.
lmprovement
Allowance:
Tenant shall accept the Premises in "as-is" condition.
CONCLUSION
Due to its limited size and shape, the Property serves little more than to provide access to 816
Commerce Street. lt is unlikely the City would generate any other revenue from the Property
other than as an outdoor seating area for the Restaurant at 816 Commerce Street.
The Administration recommends in favor of executing a new lease agreement with Sobe
Toscana LLC in accordance with the above stipulated terms and conditions. The Administration
is seeking a recommendation from the Finance and Citywide Projects Committee.
ES/MMM/GA
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