Resolution 2021-31900RESOLUTION NO. 2021-31900
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND ECONOMIC RESILIENCY COMMITTEE (FERC), TO PROCEED
WITH THE DEVELOPMENT OF THE 72ND STREET COMMUNITY COMPLEX
PROJECT BY IMPLEMENTING OPTION 1, AS PROPOSED BY THE
ADMINISTRATION TO: (1) CONTINUE TO NEGOTIATE AN AGREEMENT
WITH THE HASKELL COMPANY, THE FIRST RANKED FIRM; (2) ADDRESS
THE FUNDING SHORTFALL BY ISSUING PARKING BONDS IN THE AMOUNT
OF APPROXIMATELY $19.4 MILLION; AND (3) IDENTIFY FUNDING
SOURCES FOR THE $17.7 MILLION REMAINING FUNDING GAP BEFORE
AWARDING ANY CONTRACTS RELATED TO THE PROJECT; AND
FURTHER, REFERRING A DISCUSSION ITEM TO FERC TO EXPLORE WAYS
TO MOVE FORWARD WITH THE BYRON CARLYLE THEATER PROJECT.
WHEREAS, on November 6, 2018, Miami Beach residents approved a ballot measure,
which, in pertinent part, authorized the issuance of a general obligation bond (G.O. Bond) for the
design, permitting, installation, and construction of the 72nd Street Community Complex (the
"Project"); and
WHEREAS, a total of $53.8 million of general obligation bonds are allocated to fund the
Project and additional $10.6 million has been allocated from different funding sources bringing
the total Project budget to $64.4 million; and
WHEREAS, the Project programming as described in the Design Criteria Package (DCP)
includes a multi-level mixed-use, 500 space parking garage, 50 -meter competition pool with
support amenities, 25 -meter multi-purpose pool, 7,500 SF library, 5,000 SF commercial/retail,
7,500 SF fitness center, 5,000 SF community center, 60,000 SF of active green space, and a
jogging path; and
WHEREAS, on June 24, 2020, the Mayor and City Commission authorized the issuance
of Request for Proposals (RFP) 2020 -180 -ND for Design/Build Services for the 72nd Street
Community Complex; and
WHEREAS, the RFP stipulated a two-phase process; and
WHEREAS, Phase I required the submittal and consideration of the Design/Build firm's
qualifications and Phase II required the submittal and consideration of the Design/Build firm's
Technical Proposal which included each firm's proposed design, project approach during design
and construction, Project schedule and the Guaranteed Maximum Price (GMP); and
WHEREAS, on June 26, 2020, the RFP was issued; and
WHEREAS, on August 10, 2020, the City received seven (7) Phase I proposals; and
WHEREAS, on September 16, 2020, the Mayor and City Commission adopted Resolution
No. 2020-31387, shortlisting the following firms to be further considered in Phase II: Kaufman
Lynn Construction, Inc, PCL Construction Services, Inc. and The Haskell Company (Haskell); and
WHEREAS, on December 14, 2020, the City received proposals in response to Phase
II of the RFP from the three short-listed proposers; and
WHEREAS, on January 29, 2021, The Evaluation Committee, appointed by the City
Manager via LTC # 276- 2020, convened to consider the Phase II technical proposals received
and the evaluation process resulted in the ranking of proposers, with their associated GMPs as
follows:
1. The Haskell Company - $94,200,025
2. PCL Construction Services, Inc. - $80,202,724
3. Kaufman Lynn Construction, Inc. - $79,976,000
WHEREAS, on March 17, 2021, the Mayor and City Commission adopted 2021-31648,
authorizing the Administration to enter into negotiations relating to Request for Proposals No.
2020 -180 -ND with the top ranked proposer, The Haskell Company; further, if the Administration
is not successful in negotiating an agreement with Haskell, authorizing the Administration to enter
into negotiations with PCL Construction Services, Inc., as the second ranked proposer; further, if
the Administration is not successful in negotiating an agreement with PCL Construction Services,
Inc., authorizing the Administration to enter into negotiations with Kaufman Lynn Construction
Inc., as the third ranked proposer; provided, however, that the final negotiated agreement shall
be subject to the prior approval of the Mayor and City Commission; and
WHEREAS, in addition, the City Commission also referred the Project to the Finance and
Economic Resiliency Committee (FERC) to look for options to bond the parking garage or other
options to increase available funding; and
WHEREAS, on April 12, 2021, City staff entered into negotiations with Haskell; and
WHEREAS, several meetings were held to clarify and confirm the program requirements
for the facility and refine the proposal; and
WHEREAS, the proposer re-evaluated early design assumptions which increased the
Project cost and continued to evaluate additional cost savings measures while meeting the
minimum requirements of the DCP; and
WHEREAS, the final results of these negotiations were anticipated by the end of June
along with an estimate from a third -party cost estimator; and
WHEREAS, the current total Project budget is $64AM and this includes an estimated
design -build cost of $55M, as well as Project soft costs such as FP&L costs, design criteria
consultant, permitting fees, testing, Arts in Public Places, GOB oversight, Project management
and a 10% owner's contingency; and
WHEREAS, Project soft costs increase as the design -build cost increases; and
WHEREAS, the following chart outlines total Project costs including design -build cost
ranges and associated soft costs of approximately twenty-seven percent (27%) and related
estimated budget deficits are also quantified:
Design -Build Cost
Total Project Budget
Budget Deficit
$70,000,000
$89,000,000
$24,600,000
$80,000,000
$101,300,000
$36,900,000
$90,000,000
$113,500,000
$49,100,000
WHEREAS, the current North Shore Branch Library site made up of 5 parcels (3 ocean
front and 2 on Collins Avenue) was evaluated and has been appraised to have a value of $75
million less legal, brokerage, and subdivision fees; and
WHEREAS, it. is important to note that the City Attorney has opined that the sale of the 3
ocean front lots would require the approval of the City's voters in a Citywide referendum pursuant
to City Charter Section 1.03(b)(1); and
WHEREAS, the appraised value for the 2 non -waterfront parcels on Collins Avenue is
$10.5 million; and
WHEREAS, the sale of the two non -waterfront parcels would not require referendum
approval; and
WHEREAS, in order to potentially use all or a portion of this value to offset the funding
gap for the Project, the Library site would need to be sold and leased back from the new property
owner until the current library was ready to move into the new 72nd Street complex once it is
complete, estimated to be approximately 3 years later; and
WHEREAS, as part of the sale or development agreement, the value of the FAR for the
Project would be evaluated and may contribute to the value of the property; and
WHEREAS, the cost negotiations with Haskell are complete and the cost for the parking
garage portion of the Project was identified for potential bonding or a bank loan, which could help
partially close the funding gap for the Project related to the parking garage, and in no case could
additional parking funds or parking bond funds be used to offset the non -parking garage portion
of the Project; and
WHEREAS, as part of the current FERC item to lessen the City's dependence on tourism
revenue, the Facility and Fleet Management Department has worked with CBRE to maximize the
value of City -owned assets across the real estate portfolio, and at the April 30th FERC meeting,
the Facility and Fleet Management Department identified 5 vacant parcels, in addition to the North
Shore Branch Library site, that could potentially be sold to generate approximately $16.2 million
(updated from $10 million following the receipt of all 5 appraisals); and
WHEREAS, other potential funding sources include the $1 million set aside from the
Ocean Terrace legal settlement for the 72nd Street Project, an additional $1.6 million (net of legal
fees) from the Ocean Terrace legal settlement that is currently uncommitted, a potential $7.4
million from the proposed Seagull Hotel street vacation, and $1.5 million of savings in the Parks
category in the GO Bond program; and
WHEREAS, on May 21, 2021, the item was heard at the FERC meeting and the direction
was to continue to negotiate with the selected bidder, explore value engineering options for the
Project, obtain an appraisal for the entire North Shore Branch Library site property, including a
separate appraisal for the two non -ocean front parcels on Collins Avenue, look at the value of
potential FAR on the site, and research potentially bonding the parking portion of the Project; and
WHEREAS, on June 11, 2021, the item was heard at the FERC meeting to discuss the
impact to the Project budget and potential funding options to offset the funding gap; and
WHEREAS, on June 18, 2021, the item was presented at the FERC Budget Briefing and
the Administration discussed potential funding options to help close the anticipated funding gap;
and
WHEREAS, on July 13, 2021, Haskell submitted the revised GMP proposal in the amount
of $84,871,516 million (approximately $85 million) and this amount assumes the current scope in
the Design Criteria Package; and
WHEREAS, on July 16, 2021, the item was discussed at the FERC Budget Briefing and
the preliminary estimated funding shortfall range for this Project has been from $24.6 to $49.1
million and since then, the CIP department completed negotiations with Haskell; and
WHEREAS, the all -in cost for the Project is $107 million and includes the $85 million GMP;
and
WHEREAS, the current budget appropriation for this Project is $64.4 million and the
difference is a funding gap of $42.6 million; and
WHEREAS, this amount can be reduced through the application of the $1 million
dedicated allocation to this Project from the Ocean Terrace settlement and saving $4.5 million by
reducing the 10% contingency to 5% and the difference is the net gap of $37.1 million; and
WHEREAS, one of the strategies for closing the funding gap was to determine the amount
for the parking portion of the Project (500 spaces) and use parking bonds to close the gap
between the total parking cost and the $10.6 million of parking funds already budgeted in the
Project; and
WHEREAS, of the $85 million design/build contract, approximately $30 million of it is
parking related; and
WHEREAS, netting out the $10.6 million, there is a potential to issue parking bonds for
$19.4 million, which would reduce the funding gap to $17.7 million; and
WHEREAS, three different options were presented by the Administration to move the
Project forward: Option 1 is to continue to negotiate an agreement with Haskell, the selected
bidder, and identify funding options to close the remaining $17.7 million gap;, Option 2 is to
terminate negotiations with Haskell and enter into negotiations with the second proposer to
develop a design/build contract GMP; and Option 3 is to revise the scope iri the Design Criteria
Package in order to reduce costs to help close the funding gap and depending on the degree of
changes to the scope, this option may require a new procurement process; and
WHEREAS, on July 30, 2021, FERC further discussed the Project and again
recommended to proceed with Option 1, including identifying the funds to close the $17.7 million
gap before awarding any contracts related to the Project and over the next few months, results
from the RFPs for the North Shore Library site and the listing of 4 vacant properties should be
available to inform this process; and
WHEREAS, having a clearer idea of the potential funding available would also inform
the City's next steps for the Byron Carlyle Theater, including necessary funding, and FERC will
explore ways to move forward with the Byron Carlyle Theater; and
WHEREAS, The Administration recommends that the City Commission accept FERC's
recommendation to proceed with Option 1, as recommended by the Administration to: (1) continue
negotiating with Haskell; (2) address the funding shortfall by issuing parking bonds, in the amount
of approximately $19.4 million; and (3) identify $17.7 million of the remaining funds needed to
close the funding gap in the Project before awarding any contracts related to the Project.
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
hereby accept the recommendation of the Finance and Economic Resiliency Committee (FERC)
to proceed with the development of the 72nd Street Community Complex Project by implementing
option 1, as proposed by the Administration to: (1) continue to negotiate an agreement with The
Haskell Company, the first ranked firm, pending execution; (2) address the funding shortfall by
issuing parking bonds in the amount of approximately $19.4 million; and (3) identify funding
sources for the $17.7 million remaining funding gap before awarding any contracts related to the
Project; and further, refer a discussion item to FERC to explore ways to move forward with the
Byron Carlyle Theater project.
PASSED and ADOPTED this 13 day of 0&k be/ , 2021.
Dan Gelber, Mayor
ATTEST:
OCT 1 5 2021 = `;r�
Rafael E. Granado, City Clerk :_MCORXRbi
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
4to ?AZ1
,��/ City Attorney � ate
Resolutions - R7 H
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: October 13, 2021
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE (FERC), TO
PROCEED WITH THE DEVELOPMENT OF THE 72ND STREET
COMMUNITY COMPLEX PROJECT BY IMPLEMENTING OPTION 1, AS
PROPOSED BY THE ADMINISTRATION TO: (1) CONTINUE TO
NEGOTIATE AN AGREEMENT WITH THE HASKELL COMPANY, THE
FIRST RANKED FIRM; (2) ADDRESS THE FUNDING SHORTFALL BY
ISSUING PARKING BONDS IN THE AMOUNT OF APPROXIMATELY $19.4
MILLION; AND (3) IDENTIFY FUNDING SOURCES FOR THE $17.7
MILLION REMAINING FUNDING GAP BEFORE AWARDING ANY
CONTRACTS RELATED TO THE PROJECT; AND FURTHER, REFERRING
A DISCUSSION ITEM TO FERC TO EXPLORE WAYS TO MOVE
FORWARD WITH THE BYRON CARLYLE THEATER PROJECT.
BACKGROUND/HISTORY
On November 6, 2018, Miami Beach residents approved a ballot measure, which authorized the
issuance of a general obligation bond (G.O. Bond) for the design, permitting, installation, and
construction of the 72nd Street Community Complex. A total of $53.8 million of general
obligation bonds are allocated to fund the project,. An additional $10.6 million has been
allocated from different funding sources bringing the total project budget to $64.4 million. The
Project programming as described in the Design Criteria Package (DCP) includes a multi-level
mixed-use, 500 space parking garage, 50- meter competition pool with support amenities, 25 -
meter multi=purpose pool, 7,500 SF library, 5,000 SF commercial/retail, 7,500 SF fitness
center, 5,000 SF community center, 60,000 SF of active green space, and a jogging path.
On June 24, 2020, the Mayor and City Commission authorized the issuance of Request for
Proposals (RFP) 2020 -180 -ND for Design/Build Services for the 72nd Street Community
Complex. The RFP stipulated a two-phase process. Phase I required the submittal and
consideration of the Design/Build firm's qualifications. Phase II required the submittal and
consideration of the Design/Build firm's Technical Proposal which included each firm's
proposed design, project approach during design and construction, project schedule and the
Guaranteed Maximum Price (GMP). On June 26, 2020, the RFP was issued.
Page 689 of 1095
On August 10, 2020, the City received seven (7) Phase I proposals. On September 16, 2020,
City Commission adopted Resolution No. 2020-31387 shortlisting the following firms to be
further considered in Phase II: Kaufman Lynn Construction, Inc, PCL Construction Services,
Inc. and The Haskell Company (Haskell). On December 14, 2020, the City received proposals
in response to Phase I I of the RFP from the three short-listed proposers.
On January 29, 2021, The Evaluation Committee, appointed by the City Manager via LTC #
276- 2020, convened to consider the Phase I I technical proposals received. The evaluation
process resulted in the ranking of proposers, with their associated GMPs as follows:
1. The Haskell Company - $94,200,025
2. PCL Construction Services, Inc. - $80,202,724
3. Kaufman Lynn Construction, Inc. - $79,976,000
On March 17, 2021, City Commission authorized the Administration to enter negotiations
relating to Request for Proposals No. 2020 -180 -ND with the top ranked proposer The Haskell
Company, further, if the Administration is not successful in negotiating an agreement with
Haskell, authorizing the Administration to enter into negotiations with PCL Construction
Services, Inc., as the second ranked proposer, further, if the Administration is not successful in
negotiating an agreement with PCL Construction Services, Inc., authorizing the Administration to
enter into negotiations with Kaufman Lynn Construction Inc., as the third ranked proposer;
provided, however, that the final negotiated agreement shall be subject to prior approval of the
Mayor and City Commission.
In addition, the City Commission also referred the project to the Finance and Economic
Resiliency Committee (F E RC) to look for options to bond the parking garage or other options to
increase the budget.
ANALYSIS
On April 12, 2021, City staff entered into negotiations with Haskell. Several meetings were held
to clarify and confirm the program requirements for the facility and refine the proposal. The
proposer re-evaluated early design assumptions which increased the project cost and continued
to evaluate additional cost savings measures while meeting the minimum requirements of the
DCR The final results of these negotiations were anticipated by the end of June along with an
estimate from a third -party cost estimator.
Impact to Project Budget
The current total project budget is $64.4M. This includes an estimated design -build cost of
$55M, as well as project soft costs such as FP&L costs, design criteria consultant, permitting
fees, testing, Arts in Public Places, GOB oversight, project management and a 10% owner's
contingency. Project soft costs increase as the design -build cost increases. For reference, the
following chart outlines total project costs including design -build cost ranges and associated soft
costs of approArnately 27 percent. Related estimated budget deficits are also quantified.
Design -Build Cost (Total Project Budget IBudget Deficit
Page 690 of 1095
0.000.000 I$101
111
The current North Shore Branch Library site made up of 5 parcels (3 ocean front and 2 on
Collins Avenue) was evaluated and has been appraised to have a value of $75 million less legal,
brokerage, and subdivision fees. It is important to note that the City Attorney has opined that the
sale of the 3 ocean front lots would be subject to voter referendum. The appraisal for the 2
parcels on Collins Avenue is $10.5 million and their sale would not be subject to voter
referendum.
In order to potentially use all or a portion of this value to offset the funding gap in the 72nd
Street project, the parcel would need to be sold and leased back from the new property owner
until the current library was ready to move into the new 72nd Street complex once it is complete
approximately 3 years later. As part of the sale or development agreement, the value of the FAR
for the project would be evaluated and may contribute to the value of the property.
The cost negotiations with Haskell are complete and the cost for the parking garage portion of
the project was identified for potential bonding or a bank loan, which could help partially close
the funding gap for the project related to the parking garage. However, in no case could
additional parking funds or parking bond funds be used to offset the non -parking garage portion
of the project.
As part of the current FERC item to lessen the City's dependence on tourism revenue, the
Facility and Fleet Management Department has worked with CBRE to maximize the value of
City -owned assets across the real estate portfolio. At the April 30th FERC meeting, the Facility
and Fleet Management Department identified 5 vacant parcels, in addition to the North Shore
Branch Library site, that could potentially be sold to generate approximately $16.2 million
(updated from $10 million following the receipt of all 5 appraisals).
Other potential. funding sources include the $1 million set aside from the Ocean Terrace legal
settlement for the 72nd Street project, an additional $1.6 million (net of legal fees) from the
Ocean Terrace legal settlement that is currently uncommitted, a potential $7.4 million from the
proposed Seagull Hotel street vacation, and $1.5 million of savings in the Parks category in the
GO Bond program.
On May 21, 2021, the item was heard at the FERC meeting and the direction was to continue to
negotiate with the selected bidder, explore value engineering options for the project, obtain an
appraisal for the entire North Shore Branch Library site property, including a separate appraisal
for the two non -ocean front parcels on Collins Avenue, look at the value of potential FAR on the
site, and research potentially bonding the parking portion of the project.
On June 11, 2021, the item was heard at the FERC meeting to discuss the impact to the project
budget and potential funding options to offset the funding gap.
On June 18, 2021, the item was presented at the FERC Budget Briefing. The Administration
discussed potential funding options to help close the anticipated funding gap.
On July 13, 2021, Haskell submitted the revised GMP proposal in the amount of $84,871,516
Page 691 of 1095
million (approximately $85 million). This amount assumes the current scope in the Design
Criteria Package.
On July 16, 2021, the item was discussed at the FERC Budget Briefing (Attachment A). The
preliminary estimated funding shortfall range for this project has been $24.6 to $49.1 million.
Since then, the CIP department completed negotiations with Haskell. The all-in cost for the
project is $107 million. Which includes the $85 million GMP. The current budget appropriation
for this project is $64.4 million. The difference is a funding gap of $42.6 million. This amount
can be reduced through the application of the $1 million dedicated allocation to this project from
the Ocean Terrace settlement and saving $4.5 million by reducing the 10% contingency to 5%.
The difference is the net gap of $37.1 million.
One of the strategies for closing the funding gap was to determine the amount for the parking
portion of the project (500 spaces) and use parking bonds to close the gap between the total
parking cost and the $10.6 million of parking funds already budgeted in the project. Of the $85
million design/build contract, approximately $30 million of it is parking related. Netting out the
$10.6 million, there is a potential to issue parking bonds for $19.4 million, which would reduce
the funding gap to $17.7 million.
Three different options were presented by the Administration to move the project forward:
Option 1 is to continue to pursue an agreement with Haskell, the selected bidder, and identify
funding options to close the remaining $17.7 million gap. Option 2 is to terminate negotiations
with Haskell and enter into negotiations with the second proposer to develop a design/build
contract GMP. Option 3 is to change the scope in the Design Criteria Package in order to
reduce costs to help close the funding gap. Depending on the degree of changes to the scope,
this option may require a new procurement process.
The Committee discussed the options and recommended to proceed with option 1. In addition
-the Committee also discussed other options on how to fund the $17.7 million gap including
issuing an RFP for the North Shore Library site and listing 4 of the 5 vacant properties identified
by Facilities and Fleet Management Departments asset inventory study.
On July 30, 2021, FERC further discussed the project and again recommended to proceed
with Option 1, including identifying the funds to close the $17.7 million gap before awarding any
contracts related to the project. Over the next few months, results from the RFP's for the North
Shore Library site and the listing of 4 vacant properties should be available to inform this
process. Having a clearer idea of the potential funding available would also inform the funding
needed for the Byron Carlyle Theater. FERC will explore ways to move forward with the Byron
Carlyle Theater.
SUPPORTING SURVEY DATA
Results from the 2019 Resident Survey show that 33% of residents rated park improvements
as the most important capital improvement projects. Additionally, 8% of residents rated city
facility improvements as the most important.
CONCLUSION
The FERC favorably accepted the recommendation from the Administration to proceed with
Option 1, including issuance of parking bonds of approximately $19.4 million and identifying the
Page 692 of 1095
$17.7 million of the remaining funds needed to close the funding gap in the project before
awarding any contracts related to the project. FERC will explore ways to move forward with the
Byron Carlyle Theater.
The Administration recommends that the City Commission accept the recommendation of the
FERC and approve the Resolution.
Applicable Area
North Beach
Is this a "Residents Right Does this item utilize G.O.
to Know" item, pursuant to Bond Funds?
City Code Section 2-14?
Yes Yes
Strategic Connection
Prosperity - Revitalize targeted areas and increase investment.
Legislative Tracking
Capital Improvement Projects
ATTACHMENTS:
Description
❑ Attachment A- FY2022 Preliminary Capital Budget
❑ Resolution
Page 693 of 1095
ATTACHMENT A
BUDGET BRIEFING 1.
MIAMI BEACH -
COMMITTEE MEMORANDUM
TO: Finance and Economic Resiliency Committee Members .
FROM: Alina T. Hudak, City Manager
DATE: July 16, 2021
SUBJECT: FISCAL YEAR 2022 PRELIMINARY CAPITAL BUDGET UPDATE
Applicable Area
Not Applicable
Is this a "Residents Right
to Know" item, pursuant to
City Code Section 2-14?
No
Does this item utilize G-0.
Bond Funds?
No
ATTACHMENTS:
Description Type
❑ FY 2022 Preliminary Capital Budget Update Memo Memo
❑ FY 2022 Preliminary Capital Budget Update Presentation Other
❑ Attachment A — Preliminary FY 2022 Capital Budget and FY 2022-2026 _Capital Other
ImproNement Program
❑ Attachment B — Preliminary FY 2022 Capital Projects by Location and Funding Other,
Source
Page 693f 6#7095
ATTACHMENT A
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMITTEE MEMORANDUM
TO: Finance and Economic Resiliency Committee
FROM: Alina T. Hudak, City Manager
DATE: July 16, 2021
SUBJECT:; Fiscal Year 2022 Preliminary Capital Budget Update
The FY 2022 Preliminary Capital Budget was reviewed by the Finance and Economic Resiliency
Committee ("FERC") at the June 18, 2021 FERC 1St Budget Briefing.
Attachment A contains a comprehensive funding summary of the FY 2022-2026 Preliminary
Capital Improvement Program ("CIP"). The following is an update on several items discussed at
the June 18th Budget Briefing.
CAPITAL BUDGET PRESENTATION FOLLOW UP
At the June 18, 2021 FERC Budget Briefing, Commissioner Gongora requested a breakdown of
the all capital projects recommended to be funded in FY 2022 by area. The table below
summarizes the recommended funding amounts by location and percentages. Attachment B
provides a detailed report of projects, stratified by location and funding source.
lioccliion
:
%
Citywide'`
58,334,232
83
North Beach
3,928,000
6
Middle Beach
3,101,505
4
South Beach
5,225,000
7
Total
$70,588,737
1000/0
'Parking, fleet, Greenspace, Resiliency/Utility /City Hall Projects included in Citywide
At the June 18, 2021 FERC Budget Briefing, Commissioner Richardson requested an estimated
cost for a conceptual design for the City Hall South Facade. This item was researched by the
Property Management Department and the estimated cost is $19,000. The recommendation is
to fund this item during FY 2021 so the design can be completed during FY 2022 and be ready to
inform decision making regarding potential funding for construction of the project as part of the
FY 2023 Capital Budget process.
NEW CAPITAL PROJECTS
At the Commission meeting on June 23rd, the City Commission approved $2.5 million of funding
for the Sabrina Cohen Foundation's Adaptive Fitness & Recreation Center. The $2.5 million of
funding will come from the General Fund Reserve. This project will be added to the FY 2021
Page 150 647095
ATTACHMENT A
FY 2022 Preliminary Capital Budget Update
Page 2
Capital Budget through a capital Budget Amendment at the July 281h City Commission meeting.
The Commission Chambers Renovation project is proposed by the Administration to be added to
the FY 2022 Capital Budget. This project will address ADA compliance issues, enhance lighting,
acoustics, and audio/visual technology, and convert the ground floor conference room in City Hall
into a multi-purpose press room. The proposed renovation would take place over several months
during Summer of 2022. The cost of the project is $900,000 and the recommended funding
source is the General Fund Reserve to be transferred to the PAYGO fund.
J
CAPITAL PROJECT GAPS
At the June 18, 2021 FERC Budget Briefing, several key capital projects with existing funding
gaps were discussed.
North Beach Oceanside Park
The funding gap of $1.9 million is proposed to be addressed in the FY 2021 Capital Budget
through a Capital Budget Amendment at the July 28th City Commission meeting. The
Administration's recommendation is to close the project gap by applying $1.9 million of savings in
the Middle Beach Recreational Corridor 2 project available due to awarded grant funds.
Maurice Gibb Park
The funding gap of $1.2 million is proposed to be addressed in the FY 2021 Capital Budget
through a Capital Budget Amendment at the July 28th City Commission meeting. The
Administration's recommendation is to close the, project gap by applying $1.2 million of $1.5
million of savings available in the Parks & Recreation category of the G.O. Bond Program.
Bayshore Park (Par 3)
The funding gap of $1.9 million is proposed to be addressed in the FY 2021 Capital Budget
through a Capital Budget Amendment at the July 28th City Commission meeting. The
Administration's recommendation is to close the project gap by (1) applying $1.5 million of savings
in the Middle Beach Recreational Corridor 2 project available due to awarded grant funds; and
(2) add $400,000 of appropriation through the FY 2022 Capital Budget process from Quality of
Life — Mid Beach funds.
First Street
The funding gap of $20 million is proposed to be added to the FY 2022 Capital Budget and funded
primarily from the Resiliency Fund.
Fire Station #1
The construction contract for this project is not due to be awarded .until October 2022. The
Administration's recommendation is to update the estimated shortfall of $6 to $10 million next
Summer, which maybe less if COVID-19 cost pressures unwind over the next year. The updated
gap amount would likely need to be funded from the sale of 5 vacant parcels identified by Property
Management and CBRE's asset inventory study.
Police Headquarters Renovation
The construction contract for this project is due to be awarded in October 2021. However, this
project is phased over time as funding is split between Tranche 1 and Tranche 2. The
Administration's recommendation is to review the scope for potential changes and use existing
Tranche 1 funding to complete the short-term elements of the project and potentially supplement
Tranche 2 funds in future years if needed.
Page 69H 647095
ATTACHMENT A
FY 2022 Preliminary Capital Budget Update
Page 3
72nd Street Complex
This project was discussed at the June 18, 2021 FERC Budget Briefing. The preliminary
estimated funding shortfall range for this project has been $24.6 to $49.1 million. Since then, the
CIP department completed negotiations with Haskell, the selected bidder. The final negotiated
design/build contract GMP is $85 million. This amount assumes the current scope in the Design
Criteria Package. The all -in cost for the project is $107 million. The current budget appropriation
for the project is $64.4 million. The difference is a funding gap of $42.6 million. This amount can
be reduced through the application of the $1 million dedicated allocation to this project from the
Ocean Terrace Settlement and saving $4.5 million by reducing the 10% contingency to 5%. The
difference is the net gap of $37.1 million.
One of the strategies for closing the funding gap is to determine the amount for the parking portion
of the project (500 spaces) and use parking bonds to close the gap between the total parking cost
and the $10.6 million of parking funds already budgeted in the project. Of the $85 million
design/build contract, approximately $30 million of it is parking related. Netting out the $10.6
million there is potential to issue parking bonds for $19.4 million, which would reduce the funding
gap to $17.7 million.
At this point, the City Commission has at least 3 options. Option 1 is to continue to pursue an
agreement with Haskell, the selected bidder, and identify funding options to close the remaining
$17.7 million gap. Option 2 is to enter into negotiation with the second proposer to develop a
design/build contract GMP. Option 3 would be to change the scope in the Design Criteria
Package in order to reduce costs to help close the funding gap. Depending on the degree of
changes to the scope, it may require a new procurement process.
Funding for this project was discussed at the Finance & Economic Resiliency Committee on May
21St, June 11th, and at the FERC -Capital Budget Briefing on June 18d'. Options to close the
remaining budget gap for the project are addressed in the section below.
Capital Budget Funding Options
There are several funding options available to help close the gap in existing capital projects and/or
fund unfunded projects.
The current North Shore Branch Library site made up of 5 parcels (3 ocean front and 2 on Collins
Avenue) was evaluated and has been appraised to have a value of $75 million less legal,
brokerage, and subdivision fees. It is important to note that the City Attorney has opined that the
sale of the 3 ocean -front lots would be subject to voter referendum. The appraisal for the 2 parcels
on Collins Avenue is $10.5 million and their sale would not be subject to voter referendum. The
City Commission requested a second appraisal that should be available by the end July. One
option would be to sell the non -ocean -front lots without going to voter referendum. The second
option is to sell all 5 parcels and go to voter referendum in the Spring to avoid project delays. The
Administration recommendation is to issue an RFP with different options, evaluate the
submissions, and determine if voter referendum will be necessary.
The Property Management Department is exploring best practices and methods to maximize the
value of City -owned assets across the City's real estate portfolio. To facilitate this efforts, CBRE
was engaged to conduct an inventory review of real estate assets owned by the City. As part of
the overall analysis, 5 vacant parcels were identified as strong candidates for potential sale.
These parcels have been reviewed by the Finance & Economic Resiliency Committee at their
March, April, and June meetings. Recent appraisals estimate that the 5 properties below could
be worth $16.2 million in total.
Page 955f 6#7095
ATTACHMENT A
FY 2022 Preliminary Capital Budget Update
Page 4
0 8100 Hawthorne Avenue — appraised value of $984,000
0 226-87 Terrace — appraised value of $4,600,000
0 16300 Pine Tree Drive — appraised value of $3,400,000
o Commerce Street.— appraised value of $1,500,000
o Sunset Drive — appraised value of $5,700,000
The Administration's recommendation is to issue RFP's for each parcel or approve bid waivers
so that the properties can be listed with pre -approved vendors as soon as possible.
On May 261h, the City Commission approved the Seagull Hotel street vacation, which included a
voluntary monetary payment to the City in the amount of $7.4 million. The public benefit cash
payment to the City will be provided as follows:
The first payment of $750,000 shall occur within 30 days of Historic Preservation Board
approval;
• The second payment of $3,325,000 shall occur prior to issuance of a building permit; and
• The third payment of $3,325,000 shall be prior to TCO or CO, whichever comes first.
The first two payments will likely be received in the next 6 months. However, the third payment
is likely to be received in approximately 2 to 3 years following construction of the project.
The Barclay Plaza apartment building (Barclay) was acquired by the Miami Beach Community
Development Corporation (MBCDC) in 2007 using City Redevelopment Agency funds as
affordable workforce housing. This property is located to the east of the Miami Beach Convention
Center and south of Miami Beach Senior High School. In 2014, the property was red -tagged by
the City's Building Department for having repeatedly failed to complete its 40 year assessment.
The property was vacated of tenants by MBCDC that same year. In 2015, the Barclay, which had
received U.S. Department of Housing and Urban Development funds from the City, was acquired
by the City since MBCDC was in default of its funding agreement. The City acquired the building
vacant and boarded and has remained so the duration of the City's ownership. Subsequent to its
acquisition, the City issued two Requests for Proposals in search of a private workforce housing
developer for the site. Unfortunately, there were no responsive respondents to these RFP's.
Currently a feasibility study is underway and the results should be available near the end of July.
An appraisal of the property was recently completed showing that the Barclay has a value of $8.3
million.
As the 2018 G.O. Bond program is implemented, savings have been identified from various
projects that are available to supplement other G.O. Bond projects in the same category that have
funding gaps. For example, if a G.O. Bond project in the Parks & Recreation category needs
additional funds and there are savings from various projects in the Parks & Recreation category,
then the savings can be applied to help close those gaps. Currently there is $1.5 million of savings
in the Parks category and $1 million of savings in the Public Safety category that is available. The
Administration recommends applying $1.2 million of the $1.5 million of Parks & Recreation
category savings to the Maurice Gibb Park funding gap to fully fund the project. This funding
realignment is included in a proposed capital budget amendment on the July 28th City
Commission meeting agenda.
If any other one-time sources of funding are identified, the Administration will evaluate
opportunities to use them to close funding gaps for existing projects or help fund unfunded capital
projects.
Page 6986114095
ATTACHMENT A
FY 2022 Preliminary Capital Budget Update
Page 5
CONCLUSION
The Preliminary FY 2022 Capital Budget has been updated, as noted above, subsequent to the
June 181h Capital Budget presentation. Any remaining capital items can be addressed at the
FERC -Budget Briefing on July 23rd or at the first public hearing on the proposed FY 2022 Capital
Budget on September 17th or at the second public hearing when the final FY 2022 Capital Budget
is adopted on September 30, 2021.
Attachment A — Preliminary FY 2022 Capital Budget and FY 2022-2026 Capital Improvement Plan
Prioritization by Funding Source
Attachment B — Preliminary FY 2022 Capital Projects by Location and Funding Source
Page 696114095
1
2
ATTACHMENT A
...............1...,....... ............. .................................. ... i
New
® Adaptive Fitness & Recreation Center
o Allocated from General Fund Reserve and transferred
to PAYGO
o Total of $2.5 million included in Capital Budget
Amendment for the Commission meeting on July 28th
Page TONA4095 1
3
4
ATTACHMENT A
............. ............... ................... I ........ I..........., `
UN
New
Commission Chambers Renovation
o Address ADA compliance issues
o Enhanced lighting, acoustics, and audio/visual
technology
o Convert ground floor conference room into a multi-
purpose press room
o Implement renovation during Summer 2022
o Recommend allocation of $900K from General Fund
Reserve and transfer to PAYGO
..........................................................................................
City Hall South Entrance
Conceptual design for the City Hall South Facade is
estimated at $19,000
Recommend funding in FY 2021 to inform decision
making for the FY 2023 Capital Budget process
Page 70 M 4095 2
Nall-
MtM
Yip - £
'6=TT
4_
W-4
'�s1
7
8
ATTACHMENT A
............. I .... ... ....... .............. 111— ....... .... .................
&V
QiW
Potential Capital Project
GO Bond projects
o 72nd Street Complex:
o Bayshore Park (Par 3):
o Maurice Gibb Park:
o Fire Station #1
o Police Headquarters:
Other
o NB Oceanside Park:
o First Street:
>$20 million
$6 to $7 million
$1.2 million
$6 to $10 million
$4 to $5 million
$1.9 million
$20 million
..... ............. 1. ...... 1. ..................... ................................
Potential Capital Project
GO Bond projects
o 72nd Street Complex: To be. discussed in next slides
o Bayshore Park (Par 3): July 28th Capital Budget Amendment
o Maurice Gibb Park: July 281h Capital Budget Amendment
o Fire Station #1 Future
o Police Headquarters: Future
Other
o NB Oceanside Park: July 28,h Capital Budget Amendment
o First Street: Included in FY 2022 Capital Budget
................ ............................ .............. I .............
4
Page HIM 4095
I
10
ATTACHMENT A
. ............i ...... ....... ... .. f
72nd Street Complex
Design/build contract GMP update is $85 million
o Original proposal was $94 million
0 2nd place bidder is $80.2 million
0 3rd place bidder is $79.9 million
o Third party cost estimator is $71 million
o Assumes current scope in Design Criteria Package
.......�..,. ... .......... ...... .............. .. .... ... ........ .. ......... ............. .. 4
..... .............. ...................... . -y
72nd Street Complex
Design/build contract update is $85 million
o All -in cost is $107 million
o less current budget of $64.4 million
o Updated shortfall of $42.6 million
Net shortfall is $37.1 million
o Apply $1 million from Ocean Terrace Settlement
o Reduce 10% contingency to 5% to save $4.5 million
10
Page 76,V A 4095 5
11
12
ATTACHMENT A
................................... .... .............i
72nd Street Complex
Design/build contract update is $85 million
o Approximately $30 million is parking related (500 spaces)
o Less current parking budget of $10.6 million
o Potential to issue parking bonds for $19.4 million
Reduces shortfall to $17.7 million
....................... .............................,,,....................................
now,
72nd Street Complex
® Option # 1: Continue to pursue an agreement with
Haskell and identify additional funding options
Option #2: Enter into negotiations with 2nd proposer
Option #3: Change the scope in the Design -Criteria
Package to reduce costs; may require new
procurement process
..................................................... .
Page 70,%6fl4095 6
13
14
Capital Project'
ATTACHMENT A
L3,
North Shore Library Site: $TBD
0 Site consists of 5 parcels; 3 ocean front and 2 on Collins Avenue; sale of ocean
front parcels triggers voter referendum
0 Would need to negotiate lease -back until new library site is complete as part of
72nd Street Complex project
0 Option #1: sell non -ocean front properties without going to voter referendum; first
appraisal value at $10.5 million; Commission requested second appraisal that
should be available at end of July
0 Option #2: sell all parcels and go to voter referendum in the Spring (to avoid
project delays); appraised value of at least $75 million
0 Recommendation: Issue RFP with both options and determine if voter referendum
will be necessary
t
Capital Project
t
a Potential sale of 5 vacant parcels identified by Property Management
and CBRE's asset inventory study: Appraised at $16.2M
0 8100 Hawthorne Avenue — appraised value of $984,000
0 226-87 Terrace — appraised value of $4,600,000
0 16300 Pine Tree Drive — appraised value of $3,400,000
0 Commerce Street — appraised value of $1,500,000
0 Sunset Drive — appraised value of $5,700,000
0 Recommend issuing RFP or bid waiver to list properties with pre -approved vendors
7
Page 786114095
FA
yropaty Management D.pmlmoat
DlAston d Asset Management
Officet Yet Estab
Maximizing Value of City Assets
• Folio No. 02-3203-001-3450
• 8100 Hawthorne Avenue, Miami Beach, FL
33141
• Pump Station Vacant Lot; 8,700 Square
Feet
• Value: $984,000 (less legal, brokerage and
subdivision fees)
15
haperty Management Depmtme.f
Dtrtston of Asst Manogemet
Ogke t pet E to
16
ATTACHMENT A
Maximizing Value of City Assets
• Folio No. 02-3202-006-0430
• 226 — 87 Terrace, Miami Beach, FL 33141
Vacant Lot; 15,313 Square Feet
• Value: $4,600,000 (less legal, brokerage and
subdivision fees)
15
Page TOW504095
16
Property Managam—t D•partment
Duran d Auet Management
Dflke W Real Wet.
Maximizing Value of City Assets
• Folio No. 02-3211-014-0050
• Pine Tree Drive
• Vacant Lot; 12,105 Square Feet
• Value: $3,400,000 (less legal, brokerage and
subdivision fees)
17
ATTACHMENT A
17
Property Managoment Department
Division d Arad Management
Oflke of Real f tato
Maximizing Value of City Assets
• Folio No. 02-4203-009-2140
• Commerce Street
• Vacant Lot; 2,757 Square Feet
• Value: $1,500,000 (less legal, brokerage and
subdivision fees)
77
- 18
18
Page 20EW4095 9
ATTACHMENT A
P.P.,ty M.-O.—I D.P.0 n t
DIvWon of Asset ManaQomoM
D16co W Rea! E.W.
Maximizing Value of City Assets
• Folio No. 02-3228-001-1280
Sunset Drive
Vacant Lot; 31,808 Square Feet
Value: $5,700,000 (fess legal, brokerage and
subdivision fees)
UJ Z
LA
w 25TH ST
{
19
19
20
Capital Project � . , =f �:: � , .
Vk�
Seagull Hotel street vacation: $7.4M
o 1 Payment: $750K within 30 days of HPB approval
o 2nd Payment: $3.325M prior to issuance of building permit
o 3rd Payment: $3.325M prior to TCO or CO, whichever comes first
Barclay appraisal: $8.3M
Savings in various GO Bond projects
o Parks category: $1.5M (allocated $1.2M to Maurice Gibb Park)
o Public Safety category: $1 M
Other
.................................................................... 20
10
Page 209M4095
FERC Budget
Briefing
Finalize maximum
Finalize Capital &
millage rates for
Property Appraiser
Operating Budgets
JUI 28th
, Y
July 23rd
FIRST PUBLIC HEARING
o Adopt tentative millage rates
a Adopt tentative operating and
capital budgets
September 17th
SECOND PUBLIC HEARING
c Adopt final millage rates
c Adopt final operating and capital
budgets
September 301h
City Manager and
OMB finalize
Proposed Budget
August
Beginning of
Fiscal Year 2021
October 15t
ATTACHMENT A
25
Page 242)fifl 4095
13