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June 16th FCWPC Afteraction finalC ommission C ommittee Reports - C6 F COMMISSION MEMORANDUM TO:Honorable Mayor and Members of the City Commission F ROM:J immy L. Morales, City Manager D ATE:J uly 26, 2017 S UB J E C T:R EP ORT OF T HE J U NE 16, 2017 FINANCE AND CIT Y WIDE P R OJE C T S C OMMIT T EE ME ET ING: 1. FY 2017/18 G ENE R AL PRE LIMINARY CS L (WIT H OUT AD J UST ING T H E OPERAT ING MIL LAGE R AT E FO R DEBT S ERVICE R E D U C T IO N). 2. PRO PO SE D U SE S O F L AW ENFO R C EME N T T RUS T F U N D S. 3. R EVIEW O F P R OP OS ED CAPITAL B U D GE T. 4. DISCUS S T H E K EY D EVE LOPMENT PARAME T E R S F OR T HE B ARCLAY PL AZA APART ME N T S WORK F ORC E HOUSING PROJ ECT. 5. DISC U SS IO N R EG AR D ING F U T URE U SE S O R T HE P OT ENT IAL S ALE OF VACANT CIT Y-OWNE D L AND LOCAT ED AT 228 87T H T ERRACE. 6. D IS CUSSION R EG AR D ING T HE BD O R EP ORT. 7. D IS CUSSION RE GARDING T HE NO RT H BEACH TOWN CE N T E R R EDE VEL OPME N T PROPOSAL, INVO LVIN G CIT Y-OWNE D PAR KIN G L OT S, MADE BY NO RT H BEACH TO WN CENT E R D EVE LOPMENT L LC, AN AFFILIAT E OF PACIF IC START CAPITAL, L LC. 8. DIS CUSSION REGARDIN G WASHIN GTON AVENUE PAR KING AND WORK F ORCE HOUSING OP T IONS AT 13T H S T RE ET AN D CO LL INS AVENUE. 9. DISCUSSIO N R EG AR D ING T HE COST S RE LAT ING T O H AVING MIAMI BE AC H COMM IT TO E N SURING T HAT AL L G OVE R N MENT BUILDINGS WIL L BE POWERED BY 100% RE NEWAB L E EL ECT R ICIT Y. 10. D IS CUSSION RE GARDING EXT ENDIN G T HE M IAMI BE ACH B OTAN ICAL GARDE N T O T HE COLL INS CAN AL. 11. D IS CUSSION R EGARDIN G T HE C ONDIT ION OF T HE LOG CAB IN S T RUCT URE L O C AT E D AT 8128 CO LL INS AVE N U E . 12. D IS C U SS ION RE GARDING FUNDIN G F OR T HE N ORT H BE AC H BANDS HEL L CANO PY. 13. D IS C USS ION REGARDIN G S PO N SOR ING T HE MIAMI BE ACH F IT FE ST IN NORT H BE AC H. 14. D IS CUSSION R EG AR D ING A R EVIEW O F RECO M M ENDE D C H AN GE S TO T H E CIT Y'S SE LF-FUNDE D H EALT H INS U R AN C E P LACE F OR T HE OCTOBE R 2017 P L AN Y EAR. 15. D IS CUSSION TO EXP LORE PL AC ING CAME R AS ON EVERY C ORNE R O F T HE MXE (MIXE D US E ENT ERTAINME N T ) D IS T RIC T AN D O N T H E BE AC H WAL K, AN D INS TAL LING E MERGE N C Y ACT IVAT IO N BO XES AL ONG T HE BE AC H WAL K. 16. D IS C U SS E N GAG ING IN A P IL OT PRO GRAM WIT H A COST R EDUCT ION C O N S ULTANT. 17. D IS C U SS ION RE GARDIN G T HE M AINT ENANCE O F PUB LIC BAT HROOMS C IT YWID E. 18. DISCUSS IO N RE GARDIN G T HE FEE S C H AR GE D T O DE VEL OP ERS T O APP EAR B EFORE T HE C IT Y'S L AN D U SE BO AR D S. 19. D IS CUSSION RE GARDIN G T HE L IVING WAG E RAT ES F OR FIS C AL YE AR 2017- 2018, IN ACCORDANCE WIT H C H APT ER 2, ART ICLE VI, DIVIS IO N 6, S ECT ION 2- 408, OF T H E C IT Y COD E. 20. DIS C U SS IO N RE GARDING WASHIN GTON AVENUE PARK ING AND WORKF ORCE H OUS ING OP T IONS AT 1234/1260 WAS HINGT O N AVE N U E. 21. DIS CUSSION RE GARDIN G T HE EVAL U AT ION OF C OS T IMPACT S O F IM PRO VING T H E AME N IT IE S AT SOUNDS C APE PAR K. 22. D IS CUSSION RE GARDING AN ECO N OMIC F E ASIBILIT Y ANALYS IS F OR T HE Page 555 of 3438 PROPOSED NO RT H BE AC H N EIGHBOR H OO D C ONS ERVAT ION D IS T RIC T. 23. D IS CUSSION T O EXP LORE A LE ASE T O BRING T H E WYNWOO D YAR D C ONCE PT TO NO RT H B EACH. R ECO MMENDATI ON See Memorandum attached. Legislativ e Tracking Finance AT TAC H ME N T S: Description Memorandum Page 556 of 3438 MIAMI BEACH COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members of the City Commi Sion FROM: Jimmy L. Morales, City Manager DATE: July 26, 2017 SUBJECT: REPORT OF THE FINANCE AND ITYWIDE PROJECTS COMMITTEE (FCWPC) MEETING ON FRIDAY, JUNE 16, 017 A meeting of the Finance and Citywide Projects Committee was held on Monday, June 16, 2017 at 2:30 p.m. in the Commission Chamber, 3rd Floor of City Hall. Commissioners in attendance: Commissioners Ricky Arriola, Joy Malakoff, John Elizabeth Aleman, and Micky Steinberg. Members from the Administration and the public were also in attendance. MEETING OPENED AT 1:06 P.M. BUDGET BRIEFING: NEW BUSINESS 1. FY 2017/18 General Fund Preliminary CSL (without adjusting the operating millage rate for debt service reduction) ACTION Tameka Otto Stewart, Interim Budget Director presented the item. They received the property values on June 1, 2017 from the property appraiser's office and the property values increased by 7.5%, which is slightly lower than what was received in previous years. The operating expenses are projected to go up by $11.3 million, there are additional revenues of $300,000. Right now overall we are projected $11.6 million in revenue increase and $11.3 million increase in expenditures. We are left with a projected surplus of $300,000 if we continue budgeting in the way that we do right now. Best Practices Tameka Otto Stewart explained the two best practices. During the FY2016/17 budget process, the City Commission set a goal of reducing the General Fund's reliance on transfers from the Parking Fund. The FY2016/17 budget included a reduction of this subsidy from $8.4 million to $6.4 million, and set a target to further reduce this subsidy during the FY2017/18 budget process by an additional $4.4 million. In addition, the City currently utilizes vehicle loans to purchase replacement vehicles and equipment in the General Fund. The CSL budget currently includes $290,000 in debt service payments to cover the cost of replacing the vehicles needed to be replaced in FY2017/18. The Administration believes it is best practice to fund these purchases with cash in lieu of debt, but doing so would add an additional $2.2 million to the FY2017/18 General Fund We are committed to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical, historic community. To request this material in accessible format, sign language interpreters, information on access for persons with disabilities, and/or any accommodation to review any document or participate in any city-sponsored proceeding, please contact 305-604-2489 (voice) or 305-673-7218 (TTY) five days in advance to initiate your request. TTY users may also call 711 (Florida Relay Service). Page 557 of 3438 budget. The overall gap would then be $6.3 million. Jimmy L. Morales, City Manager said that the practice has been for many years that we fund our vehicle purchases through that, so then our number of vehicle purchases continued to grow over time. He said he would like to try to start with this budget to pay as you go, like how we have some capital projects to try and get that number down. He said they have asked departments to look for 4% cuts to their budgets to see if we can get to some or all of that $6.3 million and come back with that information to the July 10th meeting. No efficiencies are included here. Tameka Otto Stewart said that the Finance and Citywide Projects Committee recommended that the Commission set aside a reserve for the future reduction in revenues from the homestead exemption if it is voted on. It would be another $1.6 million reduction in our revenues. She also said they will not be proposing any utility rate increases. Millar:le Rate Tameka Otto Stewart said they are proposing a reduction in the debt service millage rate only because debt service costs went down. The operating millage rate right now is being left the way it is for FY 17. Since the debt service costs went down the rate goes down. Jimmy L. Morales said the millage rate will actually be on the July 26, 2017 Commission meeting. One issue that will be discussed either today or at the July 10th meeting is educational funding. Generally, it will remain the same and then in September when we have the real numbers, that is when it can be lowered. 2. Proposed Uses Of Law Enforcement Trust Funds ACTION Tameka Otto Stewart, Interim Budget Director explained that these are funds collected from forfeiture of assets and they are available for the Police Department to submit requests every year. Currently, the federal fund balance that is available is $116,000. They are proposing using $100,000. The state fund has $229,000 and they are proposing using $217,000. The total amount they are requesting is $317,000. Tameka Otto Stewart went through the list of what the Police Department is requesting funding for FY 2018. Daniel Oates, Police Chief said they have traditionally used the money in this fashion. 3. Review Of Proposed Capital Budget • Potential New General Obligation Bond • Above Ground Funding Of Capital Projects • Funding For Public Safety Radio System ACTION Ron Starkman, Budget Advisory Committee spoke about their meeting from last night. They did take a close look at some of the big ticket items. They would like the City to plan better out in Page 558 of 3438 the future as far as sources of revenue. He explained the information that will be sent out in an LTC regarding motions that were made at last night's meeting. Tameka Otto Stewart, Interim Budget Director presented the item. The following items were requested by the Committee to fund. • Fire Station #4 Kitchen Equipment Renewal - Moved funding for this project in the amount of $41,849 to the proposed column. • Fire Station # 3 Kitchen Equipment Renewal - Moved funding for this project in the amount of $30,000 to the proposed column. • Street Lighting Improvements — The Committee directed that some funding be set aside for streetlight improvements in each area of the City. The Mid Beach Quality of Life Fund does not have sufficient dollars to fund both the lifeguard stands and the streetlights being requested in FY 2017/18. • Lincoln Road Washington Avenue to Lenox Avenue Refurbishment of Lincoln Road Pedestrian Mall - Moved funding for this project in the amount of $6,865,154 to the proposed column. • Euclid Avenue Between 17th & 5th Streets (Bike Lanes) - Removed the FY 2017/18 request for this project per direction from the Transportation department. • Bay Drive Neighborhood Greenway — Make this project a potential General Obligation Bond project. • Street Lighting Improvements — Moved funding for this project in the amount of $333,000 to the proposed column. • Ocean Drive Improvement — Removed this project, as it was a duplicate of the Ocean Drive Improvement project. • Rue Vendome Public Plaza - Moved funding for this project in the amount of $645,000 to the proposed column. • North Beach Bandshell Canopy - Moved funding for this project in the amount of $443,000 to the proposed column • North Beach Yard — Added this project and moved funding for this project in the amount of $553,467 to the proposed column Also moved the proposed FY 2017/18 funding to FY 2018/19, as there is no rate increase to cover the debt for the following projects: • Water Meter Replacement Program $250,000 • La Gorce Neighborhood Improvement $ 6,520,374 • Water and Sewer Lines on Venetian Bridge $1,000,000 • Waste Water Pump Stations Rehabilitations $1,000,000 • Scada and PLC Replacement for Water, Wastewater, Stormwater Pumping Stations $1,512,500 Page 559 of 3438 Property Management will physically inspect the following locations, and advise whether funding for these projects could be delayed until FY 2018/19: • Botanical Garden Roof • Fire #2 Garage Doors • Fire #3 Branch Lighting & Electrical The Committee also requested that the Administration explore the possibility of funding the Pocket Park at 20th Street & Sunset Drive project with Resort Tax Quality of Life dollars. Per discussion with the Parks department, there was mention of a new hotel, which may change the future use of the area, but based on the current use of the area, and the size and scope of the project, we would not see it as a tourist related activity. Commissioner Aleman asked if they should be putting more money in the initial year of roll out for the public safety radio system. She said it is a critical system for the safety of the personnel. Tameka Otto Stewart said those funds are for the IT fund, which is an operating department, so it is actually IT dollars. She would not recommend taking all of their fund balance in case of an emergency. John Woodruff, Chief Financial Officer said that this project is going to be financed over several years, he said we are actually trying to back load it instead of front loading it and then potentially pay ourselves back from the G.O. Bonds, because this is a perfect project for the proposed G.O. Bond program. He said we want to continue to move forward, there is already $500,000 identified and there is $2,000,000 worth of one-time funds from the IT fund we can use to have enough money in place up front to keep moving with the project. Commissioner Aleman said it sounds like we are going to wait for the bond to purchase the radio system. John Woodruff said instead of waiting, there is a plan to do it, but we would like to replace that plan with the G.O. Bond funding if and when it is approved. Commissioner Aleman confirmed that we wouldn't be waiting. John Woodruff said no, the project was approved last year; it just went to the last commission meeting. FINANCE AGENDA: OLD BUSINESS 4. Discuss The Key Development Parameters For The Barclay Plaza Apartments Workforce Housing Project Commission Item C4A, March 1, 2017 (Office of Housing and Community Services) Maria Ruiz, Director of Housing and Community Services ACTION Maria Ruiz, Director of Housing and Community Services presented the item. She said that this item follows up on the conversation the committee first started in April with regard to getting some data to what this Barclay population would be like once it is developed as workforce housing. A survey was sent to all City employees and they were able to get back quite a few responses. Of the 329 responses, 70% of them said yes they would like to take advantage of workforce housing, which would keep them within the City. They all have 2 or more vehicles Page 560 of 3438 also. In terms of income eligibilities for the site, 52% of the respondents have met the income eligibility, the big issue is that the vast majority of the them were not in public safety and she knows that is one of the issues that was discussed in the past. Commissioner Aleman asked if we know that the public safety personnel are not interested or they just didn't respond to the survey. Maria Ruiz said some conversations that she had with a couple of them were that they don't usually like to live in the City in which they work. Commissioner Aleman asked if that is true for fire employees as well. Maria Ruiz said she does not know. Many firemen have other jobs that they do on their off days as well. Maria Ruiz said she thinks there is a lot of interest with other City staff especially those who hold administrative positions, the ones that are probably going the greatest distance to come to work. Maria Ruiz said the goal of the program is to cultivate homeowners through the rental process. Commissioner Malakoff said if there are not enough City workers that want this housing, they can extend the offer to teachers who are interested in 1 bedrooms. Maria Ruiz said the final point of this would be confirmation of the items that were discussed and making sure how they evaluate these packages once they get responses back, they are looking at the number and configuration of units to be rehabbed and developed. She said she was considering giving bonus points to the responders who can give more, reflecting what the employee needs were. Also, giving bonus points to the responders proposing the lowest rents to try to keep rents as low as possible for participants. Maria Ruiz said they are looking at the RFP packages from many different vantage points, from the end user, which will be the employees participating in the program. Commissioner Aleman said she will not be at the June 28, 2017 commission meeting and there are some workforce housing incentives on the agenda that would affect this RFP. They have to specify 1.5 parking spaces per unit, but some of what is on the June 28, 2017 agenda would eliminate the parking. Since this is for City of Miami Beach workforce housing we don't really need the parking. Commissioner Malakoff said the City of Miami Beach employees that were surveyed said they do want the parking as that is one of the main amenities that they want. Commissioner Aleman said that they have their cars now because they live far away, but if they can live and work in the same City. Commissioner Malakoff said they may have two jobs or need the car for their spouse that works out of the City. Maria Ruiz said they were trying to time the release of this RFP after those development items get addressed and finalized so the developers have those options on the table when they are looking at responding to the City's package. Commissioner Aleman said it would be interesting to survey the teachers and see how many respond, she suggested working with Dr. Leslie Rosenfeld. Maria Ruiz said they can do that and they received some preliminary numbers from the School Board, which were about 78 employees who have expressed an interest in the program. VOTE OF ACCLAMATION TO MOVE FORWARD WITH THE RFP 5. Discussion Regarding Future Uses Or The Potential Sale Of Vacant City-Owned Land Located At 226 87th Terrace Page 561 of 3438 Commission Item C4A, October 19, 2016 (Sponsored by Commissioner Grieco) Eva Silverstein, Tourism, Culture and Economic Development Director ACTION ITEM WITHDRAWN NEW BUSINESS 6. Discussion Regarding The BDO Report Commission Item R9AC, May 17, 2017 (Finance) John Woodruff, Chief Financial Officer ACTION John Woodruff, Chief Financial Officer presented the item. John Woodruff gave some background on the BDO Report. He explained that it was presented on May 17, 2017, since then there has been a big update regarding the investigation, which Chief Oates will provide. He said there was also a review by the Audit Committee, the Chair of the Audit Committee is present along with Jim Sutter, the Internal Auditor to share their thoughts as well. Chief Oates said the big update is that the principal responsible for the theft has been arrested and the investigation continues. He said when they went to arrest him, he had been arrested by the State of New York a couple of hours prior. He is a career fraud criminal. The U.S. government including the U.S. Attorney's office and the FBI has been fabulous with their assistance on this case. Jim Sutter, Internal Auditor said they had an Audit Committee meeting on May 22, 2017, during which this item was discussed. The Audit Committee was receptive to the report and basically supported BDO's recommendations and the City's response to accept and implement corrective action for all items. The audit committee passed 3 related motions. The first motion was that the audit committee requested the City to implement BDO's recommendations and establish an internal audit plan to confirm they were implemented. He said as an Audit Department they will go in there around the 3 month period and verify that everything was done according to schedule. The second motion was that the audit committee requested the City seek an external auditor consultant to perform a citywide risk assessment and have the audit committee assist in the scope in selection of this process. BDO actually recommended this in one of their 58 recommendations. He said they are putting together a scope for an RFQ to work with Procurement and have it available for the City Commission. He said he will present it in the audit committee meeting next week, so they can look at it and give input. They will work on it to present it to the full commission on July 26, 2017. This assessment will be used to solidify and help internal audit to direct where the resources should go. The third motion was that the audit committee requested the City engage BDO in a form of follow up audit in about 6 months to retest the controls over treasury and cash management and have the audit committee assist in developing the scope. Ron Starkman, member of the audit committee spoke. He explained that one of the other areas of discussion was general organization. For example how compliance is managed in the City and he said he sees that the City Manager has already made a change which is to have the Page 562 of 3438 Internal Audit report directly to him instead of being under the budget department, which didn't give the right visibility. He said they also talked about whether or not there should be a broader compliance function and you could be looking at other areas where you would have in house resources to do that. He said perhaps that it could work in conjunction with a whistle blower program. He said BDO had made a specific recommendation in terms of involving the City Attorney and the committee. Staff felt it better to continue with the external. He said that maybe it could be thought about more; take a closer look at how this is set up. He said the committee also talked about how there should be some regular reporting to the Finance and Citywide Projects Committee, also if the committee has the ability to get an executive session if there are sensitive issues for them to hear it directly would be a good thing. Commissioner Arriola said that the City Manager is the one that determines how to align the departments, not this committee. NO ACTION TAKEN 7. Discussion Regarding The North Beach Town Center Redevelopment Proposal, Involving City-Owned Parking Lots, Made By North Beach Town Center Development, LLC, An Affiliate Of Pacific Start Capital, LLC Commission Item 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 ACTION DIRECTION: Defer to the June 30, 2017 FCWPC meeting. 8. Discussion Regarding Washington Avenue Parking And Workforce Housing Options At 13th Street And Collins Avenue Commission Item R9P, May 17, 2017 (Capital Improvement Projects) David Martinez, Capital Improvement Projects Director Saul Frances, Parking Director ACTION David Martinez, CIP Director presented the item. He said that at the last commission meeting the commission directed CIP to come to the FCWPC and look at 3 options for this particular garage to be located at 13th Street and Collins Avenue. The first option that was looked at was strictly parking element, but only going up to a 55 foot height. The other two options were developing to a 75 foot height, but involving ground floor retail with parking only for option 2 and option 3 the same thing but the top floor would involve workforce housing. He said they looked at the different costs and looked at potential gross revenue from the different elements, parking retail and the housing components. He said they worked with Maria Ruiz and her team. They used some of the report information and from the Parking department, and real estate helped with some numbers. Based on the number of parking spaces the last 2 columns in the memo are based strictly on net spaces, not accounting for the exiting 53 spaces on the surface lot and that is strictly for the garage portion. Commissioner Aleman asked how many housing units are in option 3. David Martinez said they have about 18,000 gross square feet of space, which translates to 14,000 square feet of living Page 563 of 3438 area. As an estimate, you can fit about 23 600 square foot 1 bedroom units, just to get a gauge. That is what the revenue projection is based on. Commissioner Malakoff said she thinks they should do the 75 foot height. All of the hotels on Washington Avenue have no parking along with the sidewalk cafes. She thinks they need to get the 192 parking spaces, which would be option 2 her preference. There is also a need for workforce housing, which would be option 3. Both of those require the 75 feet. The question is whether they want to put in the 23 600 square feet 1 bedroom units or do we want to have more parking spaces. 154 parking spaces versus 192. The total would be 207 or 245. Commissioner Arriola asked if this is for this year's budget. He said he just doesn't want to approve something that we wouldn't be able to finance or pay for. David Martinez said it is fully funded. He said when they priced this and put the budget request in is when they first started this, they were doing retail and parking only. It would be most comparable to option 2. Commissioner Arriola said to Commissioner Malakoff's point to workforce housing, it is desperately needed in the community. He asked how we would pay for that. David Martinez said they would have to look at it, because they should not be using parking funds for a housing element. They would have to take a look at it internally and figure out how it would be structured if that is the direction the committee wants them to take. He said we haven't done one yet. Commissioner Arriola asked John Woodruff if it would be a P3 and if it could contribute to the cost of building out the apartments. John Woodruff, Chief Financial Officer said it could be. He said we would look at the best way to do it, but obviously whatever instrument that is used, the revenue from the rent of those units is what would be pledged to pay that back. Commissioner Arriola confirmed that it is a long term, so it wouldn't just be paid for in cash in year one, he confirmed that it would be financed. John Woodruff said yes and it would pay for itself. It wouldn't be subsidized by the general fund or anything like that. Commissioner Arriola asked what needs to be done with this item today and as it pertains to the capital budget for option 3, which would have workforce housing. John Woodruff said that if the committee wanted to recommend option 3, then we would research the best way to do it because it would be self-sufficient, it wouldn't impact the prioritization of the exercise that was done earlier. Commissioner Aleman said her concern is that if there is 23 units, which comes out to a little over $7 million for that piece. It is a little bit more than $300,000 for that one bedroom, we did better than that when the London House was done. The variety of the units in the London House is superior and the price point for the residents is lower and we were able to restore a historic building. David Martinez mentioned that the only difference there was that there was already a structure and with this project we are starting from scratch. Commissioner Arriola asked on a per square footage basis what will the construction cost per unit be. David Martinez said they are somewhere in the $250-300 per foot including soft costs. Commissioner Aleman asked where the $7 million is coming from. Commissioner Arriola said that it doesn't matter how much it is, if it is self-funded it doesn't matter. It is not taxpayer dollars. John Woodruff said we would just have to validate that it self-funded. He said we would have to meet a certain price point to make it worthwhile. Commissioner Arriola said since we own the land and we don't have to use taxpayer dollars to do it, it's a no brainer. Page 564 of 3438 Commissioner Arriola said to move on option 3. David Martinez said remember they are still going through the design criteria process, which is why they are looking at all of these different things. He also needs to get some waivers for development regulations, so it allows him once commission formalizes it, he can continue with his waivers so at least they can put the pieces together, keep developing the criteria, and work with administration to figure out how to do the workforce housing component. MOTION: Commissioner Malakoff moved to go forward with option 3. Commissioner Aleman seconded it. 9. Discussion Regarding The Costs Relating To Having Miami Beach Commit To Ensuring That All Government Buildings Will Be Powered By 100% Renewable Electricity Commission Item R9AB, May 17, 2017 (Sponsored by Vice-Mayor Rosen Gonzalez) Margarita Wells, Environment and Sustainability Acting Director Adrian Morales, Property Management Director ACTION Commissioner Arriola said he thought this was taken care of at the Sustainability and Resiliency Committee and he asked Margarita Wells if there were any numbers to provide yet. Margarita Wells, Environment and Sustainability Acting Director said the first step would be to find an energy efficient building to proposed for the project. She said she believes they would bring this back to the Sustainability and Resiliency Committee either in July or September, once they have numbers and then it can come back to this committee with actual financial figures. Commissioner Malakoff said that they were looking for additional companies that would do energy monitoring to see where we can save money now as opposed to build a building that is completely 100% renewable electricity. DIRECTION: Remove the item until after the Sustainability and Resiliency committee hears it again in July or September. 10. Discussion Regarding Extending The Miami Beach Botanical Garden To The Collins Canal Commission Item C4H, June 7, 2017 (Sponsored by Vice-Mayor Rosen Gonzalez) David Martinez, Capital Improvement Projects Director ACTION Sandy Shapiro, Executive Director of the Miami Beach Botanical Garden spoke. She gave some background on the item; she mentioned it has been discussed in conjunction with the sea wall project going on. She said they have the updated estimates for the 3rd phase of what was started by Raymond Jungle a little while back. Raul Aguila, City Attorney said this would be incorporating City property into the Miami Beach Botanical Garden, which is also City property meaning there is no title problem. Commissioner Arriola asked where the money would come from. David Martinez, CIP Director said that there is a current project that is funded called Botanical Garden seawall that has Page 565 of 3438 available funding that they believe should be sufficient funds to do this. He said he would need direction to proceed with this. He said he would incorporate it into the current design build work that is being done for the seawall as part of the 19th Street pump station. He said they would have to bring back a change order to utilize this funding for incorporating this portion. MOTION: Commissioner Aleman motioned to incorporate this project into the current design and use the available funding for the project. Commissioner Malakoff seconded it. Vote of acclamation to move it to the full commission with a positive recommendation. 11. Discussion Regarding The Condition Of The Log Cabin Structure Located At 8128 Collins Avenue Commission Item C4N, June 7, 2017 (Property Management) Adrian Morales, Property Management Director ACTION Frank Garcia, Construction Manager presented the item. He presented some images of the log cabin structure. He gave some background information regarding a consultant that assessed the condition of the log cabin and provided some options for the structure. The consultant gave information of how to bring the structure up to code, relocate the structure somewhere else on site, and maintain the existing structure and repurpose it somehow as a gateway to the site. Frank Garcia said the log cabin has no historical designation; it is in very poor shape. It has termites and other vermin. The base floor is also below the flood elevation for the area. It would be need to be replaced with a new structure if the intent is to make it accessible to the public, or make it possible to use as storage on site. Commissioner Arriola confirmed that this is not a safe structure and it is not safe for the public. Frank Garcia said that is correct. Commissioner Malakoff said she thinks this building should be demolished and the site should be used for something else. Commissioner Aleman said she doesn't think money needs to be allocated to rebuild the building because we don't know what the use of the building should be. She agrees with funding the demolition and the removal of the structure since it is not safe. Commissioner Arriola said this is where the North Beach Yard would go. Commissioner Aleman said she would rather see the money go into that. Commissioner Aleman asked if John Woodruff can see if there is funding in the budget take care of this. MOTION: Commissioner Malakoff moved to fund the demolition and removal of the structure in the amount of $15,000. Commissioner Aleman seconded. 12. Discussion Regarding Funding For The North Beach Bandshell Canopy Commission Item C40, June 7, 2017 (Sponsored by Commissioner Arriola) David Martinez, Capital Improvement Projects Director ACTION Page 566 of 3438 The item was spoken about during the budget discussion. VOTE OF ACCLAMATION TO RECOMMEND FUNDING FOR THE PROJECT. 13. Discussion Regarding Sponsoring The Miami Beach Fit Fest In North Beach Commission Item C4P, June 7, 2017 (Sponsored by Commissioner Arriola) Eva Silverstein, Tourism, Culture, and Economic Development Director ACTION Carolina Jones, resident, spoke on behalf of Johnathan Strauss who is the event organizer. A couple of others who are a part of the Miami Beach Fit Fest were present at the podium. She explained this is the third year doing this event. She gave some background on the event. It is now a two-day festival in North Beach celebrating the community, fitness, and family. She explained they were here to talk about the event and ask for some potential waivers of fees. She said the square footage and fees come out to roughly $2,200. There are also hard cost fees for police, ocean rescue, and fire. Jenny Strauss said the foundation is raising funds to teach children to swim. Graham Winick, Film and Print Production Manager spoke. He said the request that had come in was specifically that they were seeking sponsorship development dollars. The application was done under the 501c3 H2O foundation. He said they already approved waivers of the application for permit fee and vehicle access passes. The additional potential waiver would be the square footage fee of the area, it would be around $2,500, not to exceed $3,000 would be sufficient. The primary ask was for the City to consider a sponsorship of the event itself. There are 4 different sponsorship levels for consideration. Commissioner Aleman asked if there is a funding source for any of the sponsorships. She asked that the special events office include a waiver for the square footage fee not to exceed $3,500. Graham Winick said since this is a new request it wasn't put into the fiscal budget, and it would be have to be identified if desired to do so for the current fiscal year. He said they are working with the commission on criteria for these kinds of requests and what restrictions should be. Commissioner Aleman asked if the swimming lessons are for Miami Beach adults and children or those outside of Miami Beach. Jenny Strauss said they do it for Miami Beach and all Miami- Dade County, but this would be specific for Miami Beach. Commissioner Malakoff asked the representatives if they expect to have their people coming for the Fit Fest staying in hotel rooms in Miami Beach. One of the representatives said that approximately 40% of the participants come from out of town and the host hotel is the Days Inn right on Ocean Terrace. The Saturday portion will be beach soccer and the Normandy Village farmers market will have a tent. Sunday will be the open water swim, the waiver will be used to teach about 100 kids how to swim. The $10,000 that they are requesting will be used for light posts around the City and iheart radio advertising will contribute to more kids learning how to swim. Commissioner Arriola said that he is supportive of this and they can talk about the dollar amount. He said don't rely on making Miami Beach the title sponsor. He said they would like to see non-profits prop themselves up with their own fundraising and not rely on City funds. Page 567 of 3438 Commissioner Malakoff said she would like to see the City be a patron sponsor for $10,000. She said she believes they can get funds from the VCA and asked if they have gone there. Graham Winick said in addition to the criteria that they may or may not be able to provide contracts, to meet the basic criteria; because this event is in 6 weeks they will not have sufficient time to apply to the VCA. Commissioner Malakoff said this event could start like the Food and Wine festival, it started as taste of the beach and now it is tremendous. She said this can go and be the same, but they must go well in advance to the VCA for next year's event. She thinks this will be a big tourist draw as well as for locals. Commissioner Aleman asked if the nonprofit would be willing to work with the City to deliver the swim lessons at the Normandy Park pool. She said the JCC where they are currently doing the lessons at is great, but it is a private facility and not just anyone can go in there and take lessons. Since this will be using taxpayer funds to support it, she would rather see the benefit benefitting the public. Jenny Strauss said they would love that. Benton Galay, North Beach Bandshell said this event has been great and they have a long record of accomplishment in Miami Beach. He said he sees this as an anchor event and to continue into the future in North Beach. MOTION: Commissioner Malakoff moved the patron sponsorship of support by the City plus the waivers for the square footage fees. Commissioner Aleman seconded it. 14. Discussion Regarding A Review Of Recommended Changes To The City's Self-Funded Health Insurance Plan For The October 2017 Plan Year Commission Item C4I, June 7, 2017 (Human Resources) Michael Smith, Human Resources Director ACTION Michael Smith, Human Resources Director presented the item. Michael Smith said that overall he is happy to say that the plan is performing very well. Since 2008 the cost has an average increase of 2.3%, which is well below the national trend of 8-10%. Our pharmacy costs have increased an average of 3-6.3% and the national trend has been 10- 12%. The change to Cigna last year was a very positive change. We have experienced lower administrative charges, the claims costs have been in excess of $100,000 cheaper due to the better discount arrangement that Cigna has. The pharmacy savings have saved an excess of a half a million dollars. Employees can enjoy a greater expanded network; this is especially true for retirees since most of them live out of the area. The wellness program with Humana G0365 NRG has been extremely successful and just recently the City of Miami Beach has been named one of the top 10 healthiest employers in Florida by the South Florida Business Journal. They have a competition every year; we have competed with employers such as Humana, Citrix, City Furniture, the School Board of Palm Beach County, and the Archdiocese of South Florida. Michael Smith said the aspects of next year's program we will be introducing something called the high deductible health plan, which is also known as a consumer driven health plan. There will be a high deductible of $2,500-$5,000 depending on single or family, with a corresponding Page 568 of 3438 health savings account to help offset some of that exposure of $1,000-$3,000; it will be on a card. There will be a wellness incentive introduced for people are actively participating in the wellness program, they will have to be at the gold, platinum, or silver stage, and they will get a $40 a month credit. We are implementing a smoking penalty of $50 a month, but also correspondingly adding a smoking cessation program. We are collapsing the top 2 tiers of the health plan into 1 to make it a little simpler, since the high deductible health plan will be introduced. An incentive for individuals will be provided for those that do not participate in the City's health plan, who may be doing it through a prior retirement program, another job, or spouse's coverage. We would also be embarking on a 3 year program to gradually try to balance the contributions of the employee versus the City because it has gotten out of balance with the City contributing more than employees. We want to get back to a point where we are at least having the employees pay 30% because we are down to about 24%. Commissioner Malakoff asked why we pay the employee a $250 stipend if their spouse is covering them in their insurance. Sonia Bridges, Risk Manager said it is not uncommon in City and County government to give employees that one time stipend for not being on their plan because the City's plan isn't carrying any of their claims since they are on someone else's plan. Commissioner Malakoff said she thinks the wellness program is fantastic and that it benefits the people in it to keep them healthier. She also thinks the smoking cessation program is great. Sonia Bridges said the smoking cessation seminar will be July 5, 2017, she said we are getting started now even before the new plan year so that if we have any smokers they have the opportunity to get started. They will even have a personal coach to help them along the way. The medicine that is attributed to quitting smoking is free; it is a part of the formulary. Commissioner Aleman asked if there is any cost to being a part of the smoking program. Sonia Bridges said not at all. Commissioner Malakoff confirmed if they do not stop smoking, they pay an additional fee. Sonia Bridges said yes, they pay a surcharge. Commissioner Malakoff asked if they could explain the Cadillac tax and if it will affect the City of Miami Beach at all. Garrett Moore, Gallagher, Benefits, and Services spoke on the tax. He said when they looked at the tax a few years ago, they saw it would hit in 2018 and thresholds had not been indexed up. They saw that there would be a little over a million dollar impact when the Cadillac tax took effect. Some of the changes that Michael Smith and Sonia Bridges and the City have done mitigate the cost of the health plan, the wellness program being one of those things. When they reran the numbers and taking into account it is now 2020 when the Cadillac tax would hit, the numbers were muted compared to what they looked at a few years ago. They are looking at a couple hundred thousand dollar liability. Since we have a self-funded health plan, there is a spike in high cost claims. The future is undeterminable, but what they see right now is that the Cadillac tax has been largely muted because of how the health plan is running and the efforts made by the Human Resources department. Commissioner Aleman said she commends the City employees who work on the Humana Vitality program. Michael Smith said they find that there is a spill over in the departments morale. MOTION: Commissioner Aleman moved the item as recommended with the amendment to eliminate the $250 stipend to employees who don't have health coverage with the City's plan. Page 569 of 3438 Commissioner Malakoff seconded. DEFERRED ITEMS 15. Discussion To Explore Placing Cameras On Every Corner Of The MXE (Mixed Used Entertainment) District And On The Beachwalk, And Installing Emergency Activation Boxes Along The Beachwalk Commission Item C4P, March 1, 2017 (Sponsored by Vice-Mayor Rosen Gonzalez) Daniel Oates, Police Chief ACTION DIRECTION: Defer to the September 8, 2017 FCWPC meeting, pending NCAC direction. 16. Discuss Engaging In A Pilot Program With A Cost Reduction Consultant Commission Item C4N, March 1, 2017 (Sponsored by Commissioner Arriola) James Sutter, Internal Auditor John Woodruff, Chief Financial Officer ACTION DIRECTION: Defer to the June 30, 2017 FCWPC meeting. 17. Discussion Regarding The Maintenance Of Public Bathrooms Citywide Commission Item C4N, February 8, 2017 (Sponsored by Commissioner Grieco) John Rebar, Parks and Recreation Director Adrian Morales, Property Management Director ACTION DIRECTION: Defer to the June 30, 2017 FCWPC meeting. 18. Discussion Regarding The Fees Charged To Developers To Appear Before The City's Land Use Boards Commission Item C4F, April 26, 2017 (Sponsored by Commissioner Aleman) Tom Mooney, Planning Director ACTION Jerry Libbin, President of Chamber of Commerce spoke on the item. He presented some background on the item. He wanted to make sure that while staff is coming up with a recommendation, he would like them to include that the goal is to have development. It is not necessary to recover all of the costs. He is hoping that they can come up with a reasonable cap. Commissioner Aleman said that the fees right now are all geared for brand new development and there is no cap, she said staff is going to look at different models with projects that have Page 570 of 3438 some revisions, not just the brand new development and possible scenarios with the cap. DIRECTION: Defer to the June 30, 2017 FCWPC meeting, pending formulation of a recommendation. 19. Discussion Regarding The Living Wage Rates For Fiscal Year 2017-2018, In Accordance With Chapter 2, Article VI, Division 6, Section 2-408, Of The City Code Commission Item C4G, April 26, 2017 (Procurement) Alex Denis, Procurement Director ACTION DIRECTION: Defer to the June 30, 2017 FCWPC meeting, pending completion of analysis. 20. Discussion Regarding Washington Avenue Parking And Workforce Housing Options At 1234/1260 Washington Avenue Commission Item R9P, May 17, 2017 (Capital Improvement Projects) David Martinez, Capital Improvement Projects Director Saul Frances, Parking Director ACTION DIRECTION: Defer to the June 30, 2017 FCWPC meeting, pending further analysis. 21. Discussion Regarding The Evaluation Of Cost Impacts Of Improving The Amenities At Soundscape Park Commission Item R7G, June 7, 2017 (Tourism, Culture, and Economic Development) Eva Silverstein, Tourism, Culture, and Economic Development Director ACTION DIRECTION: Defer to the June 30, 2017 FCWPC meeting, pending evaluation of costs. 22. Discussion Regarding An Economic Feasibility Analysis For The Proposed North Beach Neighborhood Conservation District Commission Item C4K, June 7, 2017 (Planning) Tom Mooney, Planning Director ACTION DIRECTION: Defer to the July 28, 2017 FCWPC meeting. OLD BUSINESS 23. Discussion To Explore A Lease To Bring The Wynwood Yard Concept To North Beach Page 571 of 3438 Commission Item R9AG, April 26, 2017 (Sponsored by Commissioner Arriola) Eva Silverstein, Tourism, Culture, and Economic Development Director ACTION Tameka Otto-Stewart, Interim Budget Director said that in order to include this item in the budget, they would need a placeholder amount of money. She said there is $553,000 available right now. Jimmy L. Morales, City Manager said for now they can block off $500,000 depending on the ultimate number when it goes to commission. Tameka Otto-Stewart said that they will put a place holder for $500,000. Commissioner Arriola said he thinks it will be a little more than that. Jimmy Morales said they will set aside the entire $553,000. Commissioner Aleman said she would like to have the entrance sign implemented because that is where everyone will be coming through to get to the North Beach Yard. Ken Lyon and Della Hyman from the North Beach Yard spoke. Mr. Lyon said that they just finished a 3 day charrette with the DPZ Group which is the architect who is designing the project. Some very interesting items were discussed regarding budget. He said they can bring a full report to the next meeting. Della Hyman said it looks like they will be able to accommodate 30 businesses on the site. 30 different local entrepreneurs will be included. DIRECTION: Come back to the next FCWPC meeting with a full report. NEW BUSINESS 24. Discussion Regarding Contingencies When The City Bids For Construction Contracts Commission Item R7K, June 7, 2017 (Public Works) Eric Carpenter, Assistant City Manager/Public Works Director ACTION Jay Fink, Assistant Public Works Director said that most of the items that come before this committee and the commission do include a 10% contingency. There was one item that came up recently that Commissioner Steinberg questioned that it did not have a contingency, that is only because it bounced up against the ceiling for the funding threshold. He said they will go into further detail and defer the item until next month. DIRECTION: Defer to next month's FCWPC meeting. Meeting adjourned at 4:13 pm. JLM/JW/MTG Page 572 of 3438