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June 30th FCWPC afteraction finalC ommission C ommittee Reports - C6 G 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 30, 2017 FINANCE AND CIT Y WIDE P R OJE C T S C OMMIT T EE ME ET ING: 1. DISCUSSIO N R EG AR D ING T HE MAIN T E N AN C E OF PUB LIC B AT HROOMS CIT Y WIDE. 2. D IS C U SS ENGAGING IN A P IL OT PROGRAM WIT H A C OS T REDUC T ION CON SULTANT. 3. D IS C U SS ION R EGARDING T HE L IVING WAGE RAT ES FOR F IS C AL Y EAR 2017-2018, IN AC C ORDANC E WIT H CHAP T E R 2, ART IC LE VI, D IVISION 6, SECT IO N 2-408, OF T HE C IT Y C ODE. 4. UP D AT E ON ENE R GO V PE RMIT T ING SY ST EM. 5. D IS CUSSION T O EXP LORE A LE ASE T O BRING T H E WYNWOO D YAR D C ONCE PT TO N ORT H B EACH. 6. DISC U SS IO N RE GARDING T H E C IT Y CL ERK R AFAE L E. G R AN AD O'S ANNUAL P ERFOR MANCE EVAL U AT ION. 7. D IS CUSSION REGARDIN G T H E CIT Y AT TO R N EY RAUL J. AG U IL A'S ANNUAL PE R F ORMAN C E EVAL U AT ION. 8. D IS C U SS ION R EG AR D ING C ONT ING ENCIES WH EN T HE C IT Y B IDS FOR CONST RUCT IO N CON T RACT S. 9. D IS C U SS ION R EGARDING T HE NORT H BE ACH T OWN CE N T E R REDE VEL OP MENT PROPOSAL, INVOLVIN G CIT Y-OWNE D PARK ING LOT S, MADE BY NORT H BE ACH TO WN CE N T E R DEVELOP M ENT, L LC, AN AF F IL IAT E OF PAC IFIC START CAPITAL, L LC. 10. DISCUSS IO N RE GARDING A N EW LE ASE AGRE EMENT BE T WE EN T H E CIT Y AND S OB E TO SCANA L L C (NE W T E N AN T ), INVOLVING T HE USE O F APP R OXIM AT E LY 2,216 S QUARE FE ET OF CIT Y OWNE D UNIM PRO VED L AND, LO C AT E D AT 22 WAS H INGT ON AVE N U E, MIAMI BE ACH, F LOR IDA, P R EVIOUS LY U SE D AS AN OU T DOOR SE AT ING ARE AS; SAID L EAS E HAVING AN INIT IAL T ERM OF FIVE (5) YE AR S, WIT H ONE (1) R ENE WAL T ERM OF FO U R (4) Y EARS AND N INE (9) MONT HS, AT T HE CIT Y'S OP T ION, AN D T O RUN CON CURREN T WIT H T HE T E NANT 'S L E ASE/US E OF AN AD J ACENT EXIS T IN G R ES TAURANT LOCAT ED AT 816 CO MMERCE ST R EE T, MIAMI B EACH, FL ORIDA. 11. D IS CUSSION T O E XPL ORE PL AC ING C AMERAS ON EVE RY C ORNE R OF T HE MXE (MIXED USE ENT ERTAIN MENT ) D IS T RICT AND ON T HE BE ACHWAL K, AND INSTAL L IN G E M ERG ENCY AC T IVAT ION B OXE S ALON G T H E BEACHWALK. 12. D IS CUSSION R EG AR D ING T HE FE ES CHARGE D TO DE VEL OP ERS TO APPEAR B EFO R E T HE CIT Y'S LAND USE BO AR D S. 13. DISCUS SION R EG AR D ING WASHIN GTON AVENUE PARK ING AN D WO R KFO R C E HOUS ING OPT IO N S AT 1234/1260 WASHIN GTON AVENUE. 14. DISCUS SION REGARDIN G AN ECONO M IC F EAS IB IL IT Y ANALYS IS F OR T H E P R OP OS ED NO RT H BE AC H NEIGHB ORHO OD CO N SE RVAT ION D IS T RICT. 15. D IS C U SS ION RE GARDING T H E EVAL U AT ION OF CO ST IMPAC T S OF IMP ROVING T H E AME N IT IE S AT S OUNDS C APE PARK. 16. D IS C U SS ION R EGARDING S U STAINAB LE F UNDIN G S OURCE S FOR E D U C AT IONAL ENHANCEME N T S IN MIAMI B EACH PUB LIC SCHOOL S. 17. D IS C U SS ION R EGARDING A RE QUE ST FOR T HE CIT Y TO SP ONS OR T HE ST ING SWIM Page 573 of 3438 C LUB. Legislativ e Tracking Finance AT TAC H ME N T S: Description J une 30, 2017 FC W P C Afterac tion Page 574 of 3438 COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: July 26, 2017 SUBJECT: REPORT OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE (FCWPC) MEETING ON FRIDAY, JUNE 30, 2017 A meeting of the Finance and Citywide Projects Committee was held on Friday June 30, 2017 at 2:30 p.m. in the Commission Chamber, 3rd Floor of City Hall. Commissioners in attendance: Commissioners Ricky Arriola and Joy Malakoff. Members from the Administration and the public were also in attendance. MEETING OPENED AT 2:41 P.M. OLD BUSINESS 1. 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 Adrian Morales, Property Management Director presented the item. He said this was dual referral to this committee and the NCAC. The reason it is here is because the new janitorial contract is going out to bid in July, he said they need a little more time, but they can certainly bring it back to the Committee after they get the results of those proposals. Commissioner Malakoff said it is very important that the bathrooms are cleaned on a regular basis. She said she hears complaints from runners and walkers along the beachwalk, the restrooms that are also used by homeless and others. Adrian Morales said the current vendor is struggling to perform and they are working on new contract specifications and it will go to Commission in July, they will put it out to bid and get proposals back. NO ACTION TAKEN 2. 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 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 575 of 3438 John Woodruff, Chief Financial Officer ACTION Jim Sutter, Internal Auditor presented the item. At the last meeting this was discussed, they noted there was additional opportunity to look at a revenue enhancement study that was done in 2009 and redo it for the utilities in the City and make sure everything is being billed properly. He said they were tasked to go back and look at if it was feasible to do and come up with the items they will issue an RFQ for. He explained the analysis included in the memorandum, which identifies 5 different sections: credit card processing services, insurance policies, security services, shipping services, and elevator services. He said we also have a history and are currently engaged in doing FPL bills with another vendor and telecommunications have been completed so he does not recommend going back to look at those areas, but there are other areas they would like to explore. He said he would like to get the Commission to approve an RFQ to get these services done. There is no cost to the City because there is cost recovery, any invoices that have incorrect billings they go out and seek payment and they take a percentage of that. Commissioner Malakoff asked if we have an idea of what the total capital recovery period of what they are doing will be. She was referring to the one that was done in 2010, Amaresco. Jim Sutter said it depends on the agreement that is reached with these cost consultants. The Amaresco contract was a long-term contract, which we still have. MOTION: Commissioner Malakoff moved that the Finance and Citywide Projects Committee approve the issuance of an RFQ for both the revenue enhancement, the utilities and cost reduction evaluations of the 5 areas named. Commissioner Arriola seconded. DIRECTION: Come back to the July 28, 2017 FCWPC meeting with scope of the RFQ to make sure it is consistent with what the committee would like to do. 3. 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 Alex Denis, Procurement Director presented the item. He explained at the May 19, 2017 FCWPC meeting the Committee was presented with a couple of options based on the code. They were to increase the living wage rates for 1 year, to increase the living wage rates as a catch up option for all years in which there had been no increases, or to do no increase at all. At that time the representatives from SEIU were present. Also, proposed options included different rates and the committee asked staff to go back and analyze SEIU’s recommendations as well as some of the language that they had proposed. John Woodruff, Chief Financial Officer said that this item is usually discussed along with the budget because there is usually an impact to the budget. On July 10, 2017 the operating portion of the budget will be discussed. He said if the Committee does not want to make a decision at this meeting, it can come back on July 10th or to the subsequent meeting as well. Depending on what we can afford to do, that could be a part of the decision. Page 576 of 3438 Commissioner Arriola asked if the budget that they were primarily looking at included some rate increases. John Woodruff said the CSL numbers that were presented did not include any increases for living wage because we treat that as an enhancement to the budget that is discussed as part of a policy discussion. He said the way it is usually handled is we discuss what we are doing for the City staff, which is usually a result from union discussions and different things that have already been bargained and negotiated, so that becomes part of the CSL budget. An item like living wage is somewhat disconnected from that because we can choose not to do it if we don’t want to, but often times we try to treat them the same if possible. At the July 10th meeting the committee will see some efficiencies and potential reductions that may create more bandwidth to be able to fund different things including something like this. Commissioner Malakoff asked if this is applies for the security guard contracts. Alex Denis said this is for contractor employees. Commissioner Arriola confirmed that this will flow through our numbers because we know we will be using those services, but we don’t make that automatic adjustment. The two representatives from SEIU spoke. They said the rate of the living wage ordinance has fallen behind its original intent. They are proposing that Miami Beach tracks what Miami-Dade County does, they are proposing that Miami Beach adopts the rates of Miami-Dade County, which will be on October 1st, which will adjust to $13 an hour with health insurance and $16.16 without health insurance. Also, to make sure the rate is able to keep up with inflation, the original intent of the ordinance was to keep workers out of poverty and to allow workers to afford health insurance. They are proposing that the City also adopts the same methodology that Miami-Dade County has for indexing, which means automatic increases based on inflation and also the healthcare rate to index that to what is specific to medical care so the workers can continue buying health insurance plans. Commissioner Arriola asked John Woodruff if we catch up to Miami-Dade County’s rates there is a potential fiscal impact of $2.3 million. John Woodruff said that is what the table seems to indicate. Alex Denis said that is correct. John Woodruff said potentially we can try to phase that impact fiscally and try to get there over time, we can try to do it in one year, but he is guessing it will be a challenging year. Commissioner Arriola said that we do not have $2.3 million in surplus, so we have to find it. There is still cost efficiency analysis going on; we are going to have to figure out how to phase into a situation where we are living with the intent of this legislation. Because of the rapid increase in health care, it has not kept up with the rate of inflation. He understands why there is a gap and we do have to narrow it. He said he thinks it will be tough to do it in year one, but when we meet July 10th, we can figure out how to do something now and phase it in over a period of a couple of years. If there are cost efficiencies that can be gained that allow us to do it more rapidly, then we can approach it that way as well. Commissioner Malakoff asked what the Miami Beach catch up option is. Alex Denis said the code currently allows the City to catch up for those years in which there was no living wage increase. For example, last year there was no increase so this year the catch up option could be the increase for this year and the increase for last year. Commissioner Malakoff said that would have a fiscal impact of $799,000. Alex Denis said it is a much higher increase. On an individual basis it is not big number, when you aggregate all of the contractor employee hours, it has a larger impact. Commissioner Arriola said that it assumes taking all of the numbers of hours worked in the last fiscal year, attaching the new rate so we are not taking efficiencies and other things. Alex Denis Page 577 of 3438 said that is also assuming every contractor’s employee is at that base line and would require an increase. Commissioner Malakoff confirmed that right now they are at the $11.62 without health benefits at $13.31. Alex Denis said that is the current rate. Commissioner Arriola asked if that is what we require all contractors to pay their employees at a minimum. Alex Denis this ordinance applies to all service contractors. Commissioner Arriola asked if they are paying above that if the fiscal impact would not be so great. Alex Denis said the only time that would come into effect is for example, the security guard contract, where the supervisor and the security guard are very close together. By contract when we increase one, we have to increase the other. The representatives from SEIU said they have been working very well with Alex Denis and they really encourage working cooperatively with the Commission as well to catch up the Miami Beach living wage, so that it is in fact a living wage. Commissioner Arriola asked if we have to increase the rate we are paying security guards to be closer to the true living wage, do we have to cut back on the number of security guards. He asked if there are ways to make the fiscal impact not as great, but for those who are affected by this, catch them up. Alex Denis asked if the committee would like them to come up with a phased in approach of not going full the first year, but maybe phasing the rates in. Commissioner Arriola asked for some guidance, since he does not know every category that this applies to. He said he would like to know if there is a way to have less of a fiscal impact on the City. John Woodruff said it might be helpful to bring this discussion back to the July 10th meeting where there will hopefully be a full Commission and bring some major contract information and the level of service and see if we lower the level of service what it would look like. During that meeting, the committee will probably have a better idea of what we can afford to do. Commissioner Malakoff said we have been mechanizing garages in the City, she asked if we are also looking at decreasing security guards. John Woodruff said he knows there is a lot of analysis going on about the security guard contract right now, he would probably need to have Chuck Tear, Emergency Management Director be available since he manages the contract. Commissioner Arriola said operationally to get clever, to figure out ways to minimize the fiscal bite to the City, but let us catch up on the living wage deficiency that currently exists because of the rising cost of health care. Alex Denis said they will do their best. DIRECTION: Come back to the July 10th FCWPC budget briefing meeting to discuss the item further. 4. Update On Energov Permitting System Commission Item C7M, April 26, 2017 (Information Technology) Mark Taxis, Assistant City Manager Ariel Sosa, Information Technology Director ACTION Page 578 of 3438 Mark Taxis, Assistant City Manager spoke and stated that extensive work was done to gather a list of all things that needed to be done and received good information. There are two side issues that have nothing to do with this project that is causing frustration. He stated that one of those issues is the City website. The City of Miami Beach will receive a brand new website that will be out in the next couple of months, and that will resolve some of the frustration with the residents. The other issue is that the City has an Egov App, which has nothing to do with Energov. The Egov App is utilized to report problems, and right now there is not a bridge where Egov and Energov can talk to each other. Tyler has provided an API into their system that will allow the City to build a bridge, and enable both application systems to communicate with each other. Once those two things happen, there will be significant improvements from the user standpoint within the next 60 days. Mark Taxis further explained to Commissioner Malakoff that when a resident reports a problem on the Egov App, Code Enforcement now has to maintain two systems. They will close out the report on Egov, and enter it in Energov, and the resident now has no way of tracking their concern. Once the bridge is complete, these problems will go away. Rusty Smith, CEO of Tyler Technologies spoke and mentioned that since last meeting the City went live with the Payroll and HR application which is a Tyler system, and all 2,000 employees were paid with no issues. Mr. Smith stated that at the status of their last meeting they were concluding a week of assessment with both the City and Tyler, all departments and the public were surveyed and a total of 189 items were reported. He explains that even though it seems like a high number, there are duplications on that list and other items that were distilled down to 18 root causes. Some of these causes are software changes that Tyler is willing to make, some of those are implementation changes that the City is willing to make and some are joint efforts, such as cleaning up the addresses that the City has. Mr. Smith stated that in the documents provided to the Committee, 4 of those issues are considered to be gaps, things that the old system could do the new system needs to be able to do; and the other 14 issues are just improvements on existing functionality. Most of those issues should be resolved by September 2017, and the remainder to be resolve throughout the balance of the remainder of the year. Commissioner Arriola asked if there is an ETA on when everything will be finalized, or what the next big milestone is. Mark Taxis stated that gap issues should be addressed in the next 60 days, and the list of 189 items will be exhausted by the end of December. He added that users will continue to suggest for things to be added; these are enhancements, and the City will continue to address them. Commissioner Arriola asked if any member of the public wanted to speak. Henry Stoler spoke and asked where the City currently stands with the Citizens Access Portaland proposed a way to move forward. He spoke with City senior staff and Tyler senior officials, and expressed his appreciation for their sincere hard work and dedication, and Tyler had expressed their willingness to fix what is broken, or what is not working right and to do it at Tyler’s cost. Mr. Stoler stated that at this point, 14 months after the cutover date of April 26, 2016 transparency and public access to public records has reduced dramatically. Cases are assigned 2 sets of numbers, and the term ”completed” is broadly used to mean simply assigned for investigation when the normal meaning of completed means that is done. Where the City stands now and as of the last 14 months is that the imposition upon City Hall Staff for individualized requests have increased substantially. Mr. Stoler considered his meeting with the City and Tyler the previous day, to be long, constructive, and positive, but there was much talk about Egov vs. Energov, APIs, Bridges, Tyler Responsibilities, things that mean absolutely nothing to the public. Handout material was provided to the Committee by Mr. Stoler. Mr. Stoler spoke regarding the material that was presented to the Committee, and he explained that they are Code Compliance Reports printout from the old system, and the new system. Mr. Page 579 of 3438 Stoler guides the Committee through a comprehensive comparison of the reports generated by the previous system, and the new Tyler system. Mr. Stoler emphasized on the simplicity of use, and the user’s ability to generate reports, track their cases, and the overall amount of information that was provided to them with the old system. Commissioner Arriola acknowledged that Mr. Stoler had a constructive meeting the previous day with the City and Tyler, and asked Mr. Stoler if there was anything from the meeting that would lead him to believe that the City is not on a path fixing this issue. Mr. Stoler replied, not at all. Mr. Stoler suggested keeping this item on the agenda to revisit, and move this item to the September meeting. Commissioner Malakoff asked Mark Taxis when will the City go live with the new website. Mr. Taxis stated that it will be in November. DIRECTION: Come back to the September 8, 2017 FCWPC meeting. 5. Discussion To Explore A Lease To Bring The Wynwood Yard Concept To North Beach Commission Item R9AG, April 26, 2017 (Sponsored by Commissioner Arriola) Eva Silverstein, Tourism, Culture, and Economic Development Director ACTION Eva Silverstein, Tourism, Culture, and Economic Development Director presented the item. Item received favorable recommendation from LUDC and Planning Board. On June 8, 2017, the City helped organize a community outreach program in North Beach, 80 community participants attended, 60 of who were North Beach residents. The reception was very favorable, Wynwood Yard organizers created image boards outlining and detailing potential activations family friendly programming national source gardens, music, entertainment, cooking, and residents were able to provide feedback. Eva Silverstein discussed the specifics and the City’s term sheet for the Wynwood Yard. The terms outlined are a 5-year lease with two 2 year renewal options. The first year will be $1 rent with no proceeds going to CMB, the next year they will pay 2.5 % of rental receipts. In the subsequent years, that percentage will go up to 2.5% and if they renew for the two 2 year terms it would stay at 5%, all of this is subject to the Committee’s direction or negotiation. Commissioner Malakoff stated that this looks like it can be a big money maker; it seems that they have many restaurants and cooking facilities and entertainment is a plus. It seems that there is more opportunity to make more money with the Wynwood Yard than the Botanical Garden, and the Bandshell. Commissioner Arriola explains that we have some structures that are not being utilized, and by bringing in an operator, the City is activating the neighborhood and is well received by the North Beach community. Commissioner Arriola states that a lot the operation has to do with programming, there is a lot activity and it is a neighborhood enhancement that has come to bear. He mentioned that part of the NOBE Master plan is to serving as a catalyst to get things going on the North Beach community the deal were working on here is one which the City will benefit not only from all the activation but also from rent. In addition, the City will get resort tax revenue, and parking revenue and those projections are good. The North Beach Yard is as successful as the City wants it to be from resort tax and parking is very lucrative. Commissioner Malakoff asked if there will be a new parking facility with higher fees. Commissioner Arriola replied that the fees will be determined. Commissioner Arriola believes that the parking projection is based on the current fee of $1.25 an hour, and added that the City will receive revenue both day and night, the City will increase revenue for parking for other things other than what is going on during the day. Kathie Brooks, Assistant City Manager added Page 580 of 3438 that the surrounding lots were some of the lowest utilized lots and currently they don’t charge in the evenings, but it can be put in place specifically for those lots if the City moves forward with this project. Raul Aguila, City Attorney spoke and stated that some of the issues that the City want to look for are issues regarding cleanliness of the area, potential noise, and how the City addresses potential noise and nuisance issues, maintenance standards. Concern also with regard to what the schedule would be for the City’s required financial contribution as proposed on the lease versus the contribution that the Lessee North Beach yards will be making as well to the property. The goal is to bring a substantial full lease agreement hopefully as early as July 26. Raul Aguila requested that if the Committee moves forward with the item to allow the City Attorney’s office to continue to negotiate the lease and present it before the City Commission. Commissioner Malakoff asked about the log cabin. Raul Aguila stated that the City will have to make a determination on what to do with the log cabin in order to meet the proposed lease timelines. Commissioner Arriola added that the City needs to move forward with the North Beach Yard project first, then figure out what to do with the cabin. Committee agreed to move forward. Raul Aguila said they would continue to negotiate the terms of the lease. He said that the goal is to bring something in front of the Commission at the July 26, 2017 meeting. VOTE OF ACCMALATION TO MOVE THE PROJECT FORWARD 6. Discussion Regarding The City Clerk Rafael E. Granado’s Annual Performance Evaluation Commission Item C4G, May 17, 2017 (Office of the City Clerk) Rafael E. Granado, City Clerk ACTION Commissioner Arriola said it is customary that the Chairman of the Finance and Citywide Projects Committee sit with the City Clerk and the City Attorney on an annual basis and review their performance and as the Commission is satisfied with their performance he negotiates with them on their contract. He said he had the distinct pleasure of meeting with these 2 outstanding public servants a couple of weeks ago. The recommendation that he has for the Committee is in the packet. Commissioner Arriola said in the case of Rafael E. Granado the recommendation is to extend his employment agreement by 1 additional year, the new termination would be on April 30, 2020. He will receive a salary merit increase of 3% effective May 1st, and contribute to the City’s 547b retirement plan to the full amount consistent to what is provided for the City Manager and City Attorney $24,000 a year from $6,000 a year. Also, a designated parking spot is assigned at the City Hall garage, consistent with the City Manager and the City Attorney. MOTION: Commissioner Malakoff moved to approve this evaluation. Commissioner Arriola seconded. 7. Discussion Regarding The City Attorney Raul J. Aguila’s Annual Performance Evaluation Commission Item C4I, May 17, 2017 (Office of the City Attorney) Page 581 of 3438 Raul Aguila J. Aguila, City Attorney ACTION Commissioner Arriola said that he had the pleasure of sitting with Raul J. Aguila, City Attorney and had the same discussion as with the City Clerk. The summary of the discussion and negotiation is also in the packet. There will be a salary increase of 2% effective May 16th. Also, since he is maxed out in the 457b retirement plan, $6,700 will be put into Raul Aguila’s IRA account. Commissioner Malakoff asked if there is a number of years for this. Commissioner Arriola said to Raul Aguila that they did discuss extending an additional year, but he is in the DROP. Raul Aguila, City Attorney said right now he is in his 4th year as the City Attorney, his current contract still provides for 2 additional years, which means it will not expire until 2020. At this time, he said to Commissioner Malakoff that since there are new Commissioners and a new Mayor coming into office in the new election cycle, he did not want to bring a contract extension forward since he does have 2 years left on his term. Commissioner Arriola said that he and Raul Aguila discussed that next year when this is done again, it would be an appropriate time to include a 1 year extension to his contract. He confirmed with Raul Aguila that he is in the retirement DROP and that will be expiring in 2022. Raul Aguila said he speaks for him and Rafael Granado that they appreciate this on a personal level and that the Commission’s recognition of them is the recognition of their offices and he appreciates that on behalf of his office. Commissioner Malakoff said both of their offices are outstanding. She also said she just reviewed a contract that one of his city attorney’s drafted and was excellent. MOTION: Commissioner Malakoff moved to approve this evaluation. Commissioner Arriola seconded. 8. 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 Eric Carpenter, Assistant City Manager/Public Works Director presented the item. He said the reason this item was referred is because of a specific incident with a contract on 17 Street, which he shared with Commissioner Steinberg that is was a very rare occurrence. He said 99% of the construction contracts that are put out have a contingency associated with them. It is typically 10% and in some cases as high as 15%. He said they build that in because there are unforeseen conditions that come up during the course of a construction contract that we do not want to have to bring back every little thing to this body. There are also other circumstances where they add scope to contracts that are significant and they may need to come back for, what are deemed change orders, but are significant scope increases. Commissioner Steinberg just wanted to make sure that Eric Carpenter differentiated on the record, the difference between contingency use for unforeseen conditions that are within that 10% and scope increases that may be significantly larger than that 10% contingency would be able to bare. Page 582 of 3438 NO ACTION TAKEN NEW BUSINESS 9. 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 July 28, 2017 FCWPC meeting. 10. Discussion Regarding A New Lease Agreement Between The City 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, Miami Beach, Florida, Previously Used As An Outdoor Seating Area; Said Lease Having An Initial 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 ACTION Mark Milisits, Asset Manager introduced the item. Mr. Milisits stated that a lease was brought to the Committee in November for the previous tenant Florida Food District Inc. They have asked if the lease could be issued to Sobe Toscana, and since that time, they ceased operating. The Office of the City Attorney had recommended that the City negotiate a new lease directly with Sobe Toscana. The restaurant has space for approximately 60 seats; the outdoor seating area can accommodate 65 seats. Sobe Toscana is going to operate a Pizzeria. They have experience operating in South Beach and are affiliated with successful operators. The lease is to run concurrent with the lease for the restaurant space which will be an initial 5 years, and then option for 4 years and 9 months. The base rent is $22.51 per square feet; the renewal option is subject up to the City Manager’s sole discretion, and subject to increasing the rate to a market rate at that time or a percentage of their sale at that time. The City will be receiving a security deposit for three months for roughly $12,000. The only item that is not mentioned that has come up as an issue is the City has included a termination for convenience clause. Sobe Toscana has requested that the City does not include that option since they will be investing money on the restaurant space. Commissioner Arriola asked if it is standard in all City leases to include the termination of convenience clause, and if it was included in the prior two leases for that location. Mr. Milisits stated that most of the agreements include that clause and it will be in all agreements moving forward, as far as the agreements for the previous two sites, there was not a termination for Page 583 of 3438 convenience included in their agreements for this particular space. Commissioner Malakoff suggested moving the item including the termination for convenience. Discussion held regarding termination for convenience. Mr. Milisits explained that for the restaurant space they are paying $76 per square foot plus all the expenses, this agreement will be roughly a third of that for the outdoor seating area. Edward Hoc spoke and stated that they have an issue with termination of convenience. Having a lease is useless if the City can terminate at will. Besides the termination clause they have issues with the concurrency fees and the parking fees. He stated that for the last 15 years no one has paid concurrency fees but, they understand that they will pay if they must, but is a heavy burden starting that operation. Commissioner Arriola responded that just because the City did something in the past, it does not mean that it will be done again in the future. He mentioned that when South of Fifth was a more up and coming area, there were different reasons why the City might had waived a few things, now they are a more upscale market and the City will not continue to go on that path. He asked how much the fees are for Sobe Toscana. Mr. Edward stated the following: $29,500 for concurrency fees, $13,000 for parking yearly, and DERM fees for $50,000. Eric Carpenter, Assistant City Manager/Public Works Director spoke and explained that Durham fees are based on a number of seats for a restaurant. The installation of the grease traps or the upsizing of the grease traps is based on how many service locations a restaurant has. Restaurants are typically measured by square footage or by seats. In this case Sobe Toscana is doubling their seats. Commissioner Arriola asked about parking fees and asked if the City is waiving parking fees for South of Fifth. Commissioner Malakoff stated that they did not waive the fees, but gave the business two years to pay for their yearly parking fees. She asked if they can do a payment plan for their parking fees. Kathie Brooks, Assistant City Manager stated that Planning can work out a payment plan. Commissioner Arriola stated that he understands the concern for the business and asked the Committee if there is anything that can be done. Eve Boutsis, Chief Deputy City Attorney explained that there is no payment plan on the City code and that the only payment plan that the City authorized was when the parking fee was past due and the City extended their payment deadline for another year. Mr. Edward asked if anything can be done about the concurrency fees. Mr. Milisits suggested possibly waiving their security deposit. Commissioner Arriola suggested that if for any reason the City had to terminate for convenience, the City would pay back the non-amortized portion of the concurrency and DERM fee back to the business. Discussion was held regarding termination of convenience. Mr. Milisits stated that he couldn’t recall a situation when the City had terminated a business under this clause. The Committee discussed there may be future plans development of the sidewalk but it would not affect Mr. Edward’s business. Sobe Toscana should not be terminated under this clause. Further discussion was held and Mr. Carpenter explained the unamortized monetary amount of the fees that would be returned to Mr. Edward in the event the City would terminate Sobe Toscana. The Committee agreed to move forward with the lease, and if the City exercises the termination of convenience it would return the unamortized portion of the concurrency fees, and DERM fees up to five years, the initial term. VOTE OF ACCLAMATION TO MOVE FORWARD WITH THE LEASE 11. Discussion To Explore Placing Cameras On Every Corner Of The MXE (Mixed Used Entertainment) District And On The Beachwalk, And Installing Emergency Activation Page 584 of 3438 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. 12. 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 Alemán) Tom Mooney, Planning Director ACTION DIRECTION: Defer to the July 28, 2017 FCWPC meeting, pending formulation of a recommendation. 13. 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 July 28, 2017 FCWPC meeting, pending further analysis. 14. 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, pending further analysis. 15. 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 Page 585 of 3438 DIRECTION: Defer to the September 8, 2017 FCWPC meeting, pending evaluation of costs. 16. Discussion Regarding Sustainable Funding Sources For Educational Enhancements In Miami Beach Public Schools Commission Item R9F, March 1, 2017 (Sponsored by Commissioner Grieco) Dr. Leslie Rosenfeld, Chief Learning Development Officer ACTION DIRECTION: Defer to the September 8, 2017/October 13, 2017 FCWPC meeting after school reconvenes and the Quality of Education Committee meets. 17. Discussion Regarding A Request For The City To Sponsor The Sting Swim Club Commission Item C4D, June 28, 2017 (Sponsored by Vice-Mayor Rosen Gonzalez) Eva Silverstein, Tourism, Culture, and Economic Development ACTION DIRECTION: Defer to the July 28, 2017 FCWPC meeting. Meeting adjourned at 3:55 pm. JLM/JW /MTG Page 586 of 3438