2003-25412 Reso
RESOLUTION NO. 2003-25412
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING FOLLOWING THE DULY NOTICED
THIRTY (30) DAY CITIZEN COMMENT PERIOD, SUBSTANTIVE AMENDMENTS
TO THE ONE-YEAR ACTION PLANS FOR FISCAL YEARS 2002/03 AND 2003/04,
FOR THE REALLOCATION OF $400,000 IN COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) FUNDS ORIGINALLY ALLOCATED FOR THE BYRON
CARLYLE THEATER PROJECT, TO BE REDISTRIBUTED AS FOLLOWS:
$300,000 FOR NORMANDY ISLE PARK AND POOL PROJECT AND $100,000
FOR THE CONSTUCTION OF THE NEW FIRE STATION # 4 FACILITY; FURTHER
AUTHORIZING THE REALLOCATION OF $300,000 IN CITY OF MIAMI BEACH
QUALITY OF L1FEIRESORT TAX FUNDING FROM FISCAL YEAR 2000/2001
(YEAR 6), ORGINALL Y ALLOCATED FOR THE NORMANDY ISLE PARK AND
POOL PROJECT, TO THE BYRON CARLYLE THEATER RENOVATION
PROJECT; AND THE REALLOCATION OF $100,000 IN THE GENERAL FUND
UNDESIGNATED FUND BALANCE FOR FIRE STATION 4, TO THE BYRON
CARLYLE THEATER RENOVATION PROJECT; AND FURTHER AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE THE RELATED AGREEMENTS
FOR THE REALLOCATION OF THE AFOREMENTIONED FUNDS.
WHEREAS, On May 29, 2002, the Mayor and City Commission approved
Resolution 2002-24864, reallocating City of Miami Beach Community Development
Block Grant (CDBG) funds, in the amount of $400,000, for the rehabilitation of the
Byron Carlyle Theater; and
WHEREAS, using Federal CDBG funds for the renovation project of the
Byron Carlyle Theater will trigger the Davis-Bacon Act and require all phases of the
construction to include prevailing wage provisions, which will impact the overall
construction costs of the project between 5-30%; and
WHEREAS, the Administration prefers to minimize the impact on project
costs of the Byron Carlyle Theater renovation project by reallocating current CDBG
funds, in the amount of $400,000, into other on-going CDBG funded projects already
subject to Davis-Bacon Act wage guidelines; and
WHEREAS, the two projects identified for the redistribution of $400,000 of
CDBG construction funds will be allocated as follows: $300,000 into the Normandy
Park and Pool Project, and $100,000 into Fire Station # 4 which both currently have
CDBG funds for construction; and
WHEREAS, the amounts identified above will be substituted with $300,000
of Miami Beach Quality of Life/Resort Tax from Fiscal Year 2000101 (Year 6),
originally allocated for the Normandy Park and Pool Project, and $100,000 from the
General Fund Undesignated Fund Balance for the construction of Fire Station #4;
and
WHEREAS, HUD requires that the respective One-Year Action Plans for
Fiscal Years 2002/03 and 2003/04 be amended to reallocate previously awarded
CDBG funds for the Byron Carlyle Theater Renovation Project into other CDBG
funded construction projects; and
WHEREAS, in accordance with HUD regulations and the City's Citizen
Participation Plan concerning substantive amendments, the Administration held a 30-
day citizen comment period, which was advertised from November 13th through
December 12th, 2003, and no comments have been received to date.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission approve amendments to the One Year Action Plans for Federal Funds
for Fiscal Years 2002/2003 and 2003/2004, to reprogram CDBG funds in the amount
of $400,000 from the Byron Carlyle Theater, and into Normandy Isle Park and Pool,
in the amount of $300,000, and Fire Station #4, in the amount of $100,000; further
authorizing the reallocation of $300,000 in City of Miami Beach Quality of LifelResort
Tax Funding from Fiscal Year 2000/2001 (Year 6), originally allocated for the
Normandy Isle Park and Pool Project, for the Byron Carlyle Theater Project: and the
reallocation of $100,000 in the General Fund Undesignated Fund Balance for Fire
Station # 4, for the Byron Carlyle Theater Renovation Project; and further authorizing
the Mayor and City Clerk to execute the related agreements for the reallocation of
the aforementioned funds.
PASSED AND ADOPTED this 25th day of
,2003.
ATTEST:
~r PaJ-ck
CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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T:\NEIG\HSG..cD\John\COMMISSION\2003~04\Byron Carlyle COBG Reallocation Reso.doc
Ll-/f -03
Date
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
m
Condensed Title:
A RESOLUTION TO REALLOCATE $400,000 IN CDBG FUNDS FROM THE BYRON CARLYLE
THEATER RENOVATION PROJECT; AND SUBSTITUTE $400,000 IN CDBG FUNDS WITH $300,000
FROM QUALITY OF LIFE/RESORT TAX AND $100,000 FROM THE UNDESIGNATED BALANCE OF
THE GENERAL FUND FOR THE RENOVATION OF THE BYRON CARLYLE THEATER.
Issue:
Whether CDBG funds in the amount of $400,000 for the Bryon Carlyle Theater project should be
substituted with $300,000 from Quality of Life/Resort Tax funds and $100,000 from the undesignated
balance of the General Fund to minimize the project costs of the Byron Carlyle Theater project.
Item Summary/Recommendation:
Adopt the Resolution for the reallocation of CDBG funds in the amount of $400,000 as follows: $300,000
for the Normandy Isle Park and Pool Project, and $100,000 for the construction of Fire Station #4; and
reallocate $300,000 from Quality of Life/Resort Tax for the Byron Carlyle Theater renovation project; and
reallocate $1 00,000 from the undesignated fund balance of the General Fund for the Byron Carlyle Theater
renovation project.
Advisory Board Recommendation:
None. Staff to advise the Community Development Advisory Committee at the next regularly scheduled
meeting of January 27, 2004.
Financial Information:
Source of Amount Account Approved
Funds: 1 $400,000 132.5820.000346 - CDBG Funds
D 2 $300,000 301 - General Fund
3 $100,000 161.6235.000343 - Quality of Life/Resort
Tax
4
Finance Dept. Total $400,000
Ci Clerk's Office Le islative Trackin
Christina Cuervo, Assistant City Manager
Si n-Offs:
I?epartment Director
Assistant City Manager
City Manager
Agenda Item
Date
C,7T
//-;:),5'-03
CITY OF MIAMI BEACH .
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and Date: November 25, 2003
Members of the City Commission
Jorge M. Gonzalez \ ~
City Manager 0
A RESOLUTION OF THE MAYOR AND CITY cOMMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING
SUBSTANTIVE AMENDMENTS TO THE ONE-YEAR ACTION
PLANS FOR FISCAL YEARS 2002/03 AND 2003/04 FOR THE
REALLOCATION OF $400,000 IN COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) FUNDS ORIGINALLY ALLOCATED FOR
THE BYRON CARLYLE THEATER RENOVATION PROJECT, TO
BE REDISTRIBUTED AS FOLLOWS: $300,000 FOR NORMANDY
ISLE PARK AND POOL AND $100,000 FOR THE CONSTRUCTION
OF THE NEW FIRE STATION # 4 FACILITY; AND FURTHER
AUTHORIZING THE REALLOCATION OF $300,000 IN CITY OF
MIAMI BEACH QUALITY OF LIFE/RESORT TAX FUNDING FROM
FISCAL YEAR 2000/2001 (YEAR 6) ORGINALL Y ALLOCATED
FOR THE NORMANDY ISLE PARK AND POOL PROJECT, TO
THE BYRON CARLYLE THEATER RENOVATION PROJECT; AND
THE REALLOCATION OF $100,000 IN THE GENERAL FUND
UNDESIGNATED FUND BALANCE FOR FIRE STATION 4, TO THE
BYRON CARLYLE THEATER RENOVATION PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
Community Development Block Grant (CDBG) funds in the amount of $400,000 were
awarded to the Byron Carlyle Theater Renovation project on May 29, 2002 via Resolution #
2002-24864. Once CDBG funds were added to the construction funds for the theater
renovation project, the whole project became subject to the rules and regulations of the
Davis Bacon Federal Labor Standards. Whenever CDBG funds in the amount of $2,000 or
more are used for construction or renovation, Davis Bacon wage guidelines must be used
on all phases of the project - including previously phased construction/renovation stages.
From the outset, the Byron Carlyle Theater project has had limited funding and thus, was
projected and designed to be completed in phases as funding became available. Among
the contemplated improvements for the theater and performance space were substantial
City Commission Memorandum
November 25, 2003
Re: Reallocation of CDBG Funds from Byron Carlyle Theater project
Page 2 of 3
interior renovations of the two theaters located on the east side of the building. The facility
is being renovated to fill a need from the local community based cultural arts organizations
for performance and rehearsal space.
Davis Bacon labor standards proved to have a significant impact on the construction costs
element on this project. Davis Bacon requirements can typically increase construction
costs from 5% to 30%. Initially, it was believed that Davis Bacon wage requirements would
not be triggered if the City used its own labor pool through the Property Management
Division of the Public Works Department. As such, CDBG funds were awarded and were
anticipated to be used on the renovation phase of the theater. However, using CDBG
funds on this project "tainted" additional funds from other non-federal sources and required
the use of Davis Bacon wage standards, thus increasing the cost of the project. Once this
issue was raised, staff sought to obtain an opinion from the U.S. Department of Housing
and Urban Development (HUD) for an exemption of using the prevailing wage provisions
since the intended use of the CDBG funded improvements did not clearly fit the usual
written determination of activities which require labor standards and the payment of higher
prevailing wages. The HUD Office of Labor Relations researched the request extensively,
but ultimately denied the request for an exemption based on precedents established on
other similar projects, and stated that Davis Bacon wage guidelines would have to be used
throughout all phases of construction on the Byron Carlyle Theater.
Given the funding restraints of this project and the increased construction costs that would
be required as a result of utilizing the CDBG funds, the Administration sought to maximize
the use of all construction funds identified for this project, and identified a way to reallocate
the CDBG allocation of $400,000 by substituting with other construction projects which
already have CDBG construction dollars awarded to them and are already subject to Davis
Bacon prevailing wage requirements. This would allow the Byron Carlyle Theater
renovation project to continue without the burden of additional costs.
Two projects were identified which already have CDBG funds allocated for construction.
They are the Normandy Isle Park and Pool project and the construction of the new Fire
Station # 4. Respectively, the amounts of CDBG funds already allocated to these projects
are $138,838 and $501,221. It should be further noted that even if neither of these
projects had no CDBG funds allocated to them, they would still be subject to prevailing
wage rates. This is due to the fact that the City of Miami Beach Prevailing Wage
Ordinance requires all construction contracts over $1,000,000, and which the City is a party
to, that all laborers and mechanics be paid current prevailing wages. To make up the
difference in funding for the Byron Carlyle Theater, the original $400,000 in CDBG funds
will be substituted with $100,000 in General Fund Undesignated Fund Balance funds from
Fire Station # 4 and $300,000 from Quality of LifelResort Tax funds from the Normandy
Isle Park and Pool.
The City of Miami Beach is an entitlement recipient of federal formula grant programs from
the U.S. Department of Housing and Urban Development (HUD). As such, each year, the
City prepares an annual One-Year Action Plan detailing how it intends to allocate funds
received from HUD to conduct eligible activities for the benefit of low and moderate-income
City Commission Memorandum
November 25, 2003
Re: Reallocation of CDSG Funds from Byron Carlyle Theater project
Page 3 of 3
Miami Beach residents. HUD requires that the respective One-Year Action Plans be
amended whenever a substantive amendment has been made. An amendment is
considered substantive when a proposed CDBG-funded activity has not been previously
described in the previous years Action Plan(s) or a change has been made in the method
of distribution of funds. The $400,000 in CDBG funds originally awarded to the Byron
Carlyle Theater for renovation improvements are being proposed to be redistributed
between the Normandy Isle Park and Pool project and the construction of Fire Station #4.
As part of the substantive amendment process required by HUD, a thirty day public
comment period is being advertised for the Notice of the Intent to Amend the One-Year
Action Plans for FY 2002/03 and FY 2003/04. The comment period is from November 13th
through December 12'h 2003. No comments to the contrary of the proposed amendment
are anticipated. However, if any negative comments are received during the comment
period, said comments will be presented to the Mayor and Commission for their
subsequent review and any subsequent action, if necessary.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the Resolution
for the reprogramming of CDBG funds from the Byron Carlyle Theater to Normandy Isle
Park and Pool and Fire Station # 4, and the subsequent reallocation of $100,000 in
General Fund Undesignated Fund Balance funds from Fire Station # 4 and $300,000 from
Quality of LifelResort Tax funds from the Normandy Isle Park and Pool..
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