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Meeting Minutes 5.26.22 General Obligation Bond Oversight Committee City of Miami Beach MEETING MINUTES No. 33 May 26, 2022 Members in Attendance Via Zoom: Karen Rivo, Chair Jason Greene, Vice-Chair Scott Needelman Laura Veitia Francisco Diez-Rivas Adam Kravitz Carolina Jones Jason Koslowe Dave Grieser Jack Glottmann Absent: Carmen Browne Staff and Guests Attendance: Maria Hernandez, Liaison Devin Ramirez Thais Vieira Allison Novack David Martinez John Woodruff Alex Denis Joe Gomez Frank Garcia Virgil Fernandez Lauren Firtel Elizabeth Estevez Jose Del Risco Giancarlo Pena Rodney Knowles Rickelle Williams Justin Karr Robert Rabinowitz David Mckinney Clive Pearce Meeting Start Time: 4:30 pm General Notes: These meeting minutes are condensed and seek to capture the overall intent of discussions as interpreted by the meeting coordinator. Each paragraph indicates the time on the audio recording where the discussion commenced during the meeting. For more detail on the discussion, please refer to the audio recording in its entirety. All current and past meeting materials including agendas, handouts, minutes, presentations, and audio recordings are available by visiting: www.GOMBInfo.com/OversightCommittee/Meeting Records. I. Roll Call and Introductions G.O. Bond Oversight Committee Meeting Minutes No. 33 May 26, 2022 Page 2 of 10 (Refer to the Meeting Audio Recording Part 1 on the G.O. Bond Website.) 1:25 Chair Karen Rivo called the meeting to order. Roll call was completed. II. Committee Business Adoption of Meeting Minutes from 03-31-2022 4:28 Chair Karen Rivo asked for a motion to approve the March 31st meeting minutes. Motion: 4:34 Jason Greene made a motion to approve the minutes as presented. 4:37 Jack Glottmann seconded the motion. Motion passed unanimously. Updated Motions Log (Refer to pages 2-4 on the Agenda & Handout Packet on the G.O. Bond website.) 6:05 Maria Hernandez reported that since this Committee made a motion at the March 31st Committee Meeting to recommend the allocation of $1,073,000 from savings to fund Project #48 Police Headquarters Facility, the Motions Log was updated. LTC #158-2022 dated April 22, 2022 advised the Mayor and City Commission of the motion made by member Carmen Browne and seconded by Scott Needelman, which passed unanimously. III. Program Cashflow status (Refer to pages 5-9 on the Agenda & Handout Packet on the G.O. Bond website.) 7:00 Maria Hernandez reported that the last time Staff updated the Committee on the cashflow projections for Tranche 1 was at the November 18, 2021 meeting. The projects listed, found on page 5 of the Agenda Handout Package, are the projects that really make a difference to the status of Tranche 1. All 3 categories have been separated into 3 charts, found on pages 6-8 of the Agenda Handout Package. For example, when looking at the Park’s Category Cashflows on page 6, the dark green shade on the chart was where spent funds were when this was last reported. The medium green shade is what has spent from November to present day. The dark green solid line on the graph shows Staff’s projections from November. What can be seen in the graph is that some of the cashflow projections have slipped because the construction timelines have slipped. There is a projection of a 7-month slippage in the Parks category, a 6-month slippage in the Infrastructure category and a 5-month slippage in the Public Safety category. All this information is important because the slippage in all categories is going to require additional funding swaps in the future that would be recommended by this Committee. The Tranche 1 Summary chart, found on page 9, summarizes that out of the 42 projects being commenced in Tranche 1, 18 projects are projected to be completed and out of the 84 subprojects being commenced 63 are projected to be completed. 15:44 Jason Greene explained that due to COVID, price increases, and contracts the delay should not be a surprise. He noted that the amount of work Staff has done is incredible. He does not have any concerns because most of the time when there is a delay in a project, Staff has no control over it. 17:25 Jack Glottmann asked if the primary reasons for the slippage are supply chain issues or permitting issues. G.O. Bond Oversight Committee Meeting Minutes No. 33 May 26, 2022 Page 3 of 10 18:12 Thais Vieira answered that the longer it takes Staff to get these projects into construction the worst the cashflow gets. There were assumptions made in November that construction and/or major design expenditures were going to begin sooner. There are also delays specific to each project. 19:20 Chair Karen Rivo stated that until 85% of the funds are spent, Staff cannot move to Tranche 2. She asked what the reason for a tranche is if Staff still needs to wait until 85% of the funds are spent to move forward. 20:25 John Woodruff responded that the reason Staff does not borrow all of the money that was authorized upfront is because you wouldn’t want to start paying full debt service on money that hasn’t been spent yet. He explained that Staff has been trying to optimize spending by continuing to swap out projects. 23:23 Chair Karen Rivo asked if Laura Veitia or Carolina Jones have any questions or comments. 23:38 Carolina Jones said she does not have any questions. 23:46 Dave Grieser noted that it seems like the two big risks are that the more time passes, the more interest rates and inflation increases. He asked if Staff has been planning for future budgets of projects and if there needs to be an increase in funds. 24:38 John Woodruff explained that Dave Grieser’s question will be addressed in the next section of the agenda, Section IV. Discussion continued. IV. Potential Capital Funding Gaps (Excerpt from Commission Budget Workshop) (Refer to pages 10-18 on the Agenda & Handout Packet on the G.O. Bond website.) 28:25 John Woodruff reported that Staff had the FY 2023 Commission Budget Workshop on May 20, 2022. The main take away from the workshop is that while property values and resort taxes are doing well, capital project costs are being estimated higher than anticipated. This is going to be a real challenge for Staff to deal with. Staff has been developing several scenarios with the increased cost estimates of current G.O. Bond projects. A chart on potential capital project gaps is found on pages 15-17. Unfortunately, there is a lot of uncertainty at the moment in regard to budget shortfalls. One of Staff’s strategies is taking about $14 million of excess reserves from the General Fund and Resort Tax Fund and putting together a pot of money to work with so that as these cost estimates come in, Staff can address the gaps. 34:26 Chair Karen Rivo asked if anyone had any questions for John Woodruff. 34:43 Jack Glottmann noted that maybe these delays can perhaps work in everyone’s favor until the Federal Government gets inflation under control. He asked if the interest rate projections for Tranche 2 are close to what was projected initially. 35:36 John Woodruff answered that he believes the initial projected interest rate was around 4.5%. Currently, Staff believes that by next year the interest rate will be around 3%. 37:11 Carolina Jones asked if Staff’s plan is to defer any capital projects in order to free up funds. G.O. Bond Oversight Committee Meeting Minutes No. 33 May 26, 2022 Page 4 of 10 37:34 John Woodruff explained that currently Staff is recommending to avoid funding any new capital projects and have not made any recommendations to unfund any previously approved projects. 38:23 Carolina Jones asked John Woodruff how the City Commission reacted to Staff’s plan. 38:43 John Woodruff reported that at the May 20th Commission Budget Workshop, the City Commission did not react very surprised due to inflation. Some of the City Commissioners mentioned the projects they want to be prioritized. 39:47 Jason Koslowe asked if it is possible to add variable pricing on contracts based on future interest rates. 41:19 David Martinez reported that that Staff is working with the City Attorney’s Office to figure out how to deal with the current state of the industry regarding supply chain issues and cost escalations. Specifically, Staff has been working on project #1 72nd St. Community Complex. This situation is tricky because one does not want to set precedent and you want to be fair. For example, Staff was very shocked when the budget estimate for project #15 Bayshore Park was received because the third-party estimator was the same estimator for project #10 Maurice Gibb Park. Staff saw about a 15% estimated increase in construction cost for Maurice Gibb Park. For Bayshore Park, Staff saw about a 25% estimated increase in construction costs. Staff is receiving bids on Maurice Gibb Park on June 10th. Discussion continued. V. Public Comment 51:48 Chair Karen Rivo asked if anyone from the public would like to speak. 52:12 Clive Pearce asked for the date that bids are due for project #10 Maurice Gibb Park. 52:30 Chair Karen Rivo answered June 10th. VI. Tranche 1 Projects Update (Refer to pages 19-30 on the Agenda & Handout Packet on the G.O. Bond website.) #1 72nd St Community Complex 53:00 David Martinez reported that the design-build contract continues to be negotiated. Staff has been working very closely with the City Attorney’s Office to try to work through the terms and language that the design-builder has asked the City to reconsider. Staff received an updated version of the contract from the City Attorney’s Office on May 20th and it is currently being reviewed internally. Staff has not been advised if the cost estimate has changed. Florida Power and Light have relocated their transmissions poles from the site. 57:13 Carolina Jones asked David Martinez if the updated contract had any scope changes or if it was just language changes. 57:23 David Martinez answered that the scope has not changed. The only changes are things such as performance and terms and conditions. G.O. Bond Oversight Committee Meeting Minutes No. 33 May 26, 2022 Page 5 of 10 #45 Fire Station #1 59:02 David Martinez reported that Staff is proceeding with the 60% construction documents, which are due in June. Staff will also be receiving an updated cost estimate in June. The public hearing for the consideration to issue the Certificate of Appropriateness for the demolition of the South Shore Community Center is scheduled for the June 22nd City Commission Meeting. 1:01:04 Chief Virgil Fernandez noted that unfortunately the process is moving slowly. Staff continues to spend good money on the current fire station, when the building has run its course. He expressed his appreciation for the G.O. Bond Oversight Committee and their continuous support for this project. 1:03:00 David Martinez reported that Staff will continue with design development and will have full construction documents towards the end of the year. At this time is when the Construction Manager at Risk will start developing their final pricing, which is called the Guaranteed Maximum Price. (Refer to the Meeting Audio Recording Part 2 on the G.O. Bond Website.) 0:17 Maria Hernandez expressed that one of the challenges the City is going to have is relocating the childcare. The deal with the owner of the building across the street from the South Shore Community Center fell through. Staff hasn’t had the opportunity to go back to Commission and have this discussion because the item has been deferred several times. If the City Commission does approve the Certificate of Appropriateness on June 22nd, it might be subject to finding a location for the childcare which causes more delays to the project. 1:40 Chair Karen Rivo noted that she recalls a discussion of putting the childcare in Flamingo Park. 1:49 Maria Hernandez explained that relocating the childcare temporarily in portables has not yet been recommended by the City Manager. Currently, this is the only option because the City does not have an alternative physical place for the childcare, however some of the Commissioners have an issue with that option. 2:37 Scott Needleman asked Maria Hernandez if there is other land close by where portables can go. 3:07 Maria Hernandez explained that Staff must look at that option because geographically, the childcare needs to remain in the area. 3:42 Chair Karen Rivo expressed that she would not want this situation to hold back the project. She feels a sense of urgency and asked if this Committee should make a motion. 4:23 Maria Hernandez explained that she believes the Commission is very dedicated to this project, but Staff has to provide a solution for the childcare. 5:04 Chair Karen Rivo asked if there is enough Staff attention being paid to this project. She asked if Staff has reached out to the school system for a partnering opportunity. 5:21 Maria Hernandez answered that the City has not reached out to the schools because they were trying to find a solution on city owned land. 6:17 Jason Greene expressed that he does not believe that going through the school system is viable because it can take a very long time to reach an agreement. G.O. Bond Oversight Committee Meeting Minutes No. 33 May 26, 2022 Page 6 of 10 7:37 Jack Glottmann asked if the deal across the street is absolutely dead. 8:11 Maria Hernandez answered that the deal is dead. The City had a handshake agreement on the cost, but the owners changed their minds and came back with a counteroffer that the Administration could not accept. She expressed that the main issue with finding a location for the childcare is finding space that can accommodate a playground. 9:45 Chair Karen Rivo suggested having the portables in Marjory Stoneman Douglas Park. 9:52 Maria Hernandez answered that Staff can look into other parks in the area. 10:18 Chair Karen Rivo asked what the Committee needs to do to show a sense of urgency. 10:42 Scott Needleman suggested that Staff try to convince the Commissioners who are opposed to having the childcare in portables temporarily to go with this solution. He also suggested bringing up this item at the upcoming Flamingo Park Neighborhood Association (FPNA) meeting. 11:21 Maria Hernandez expressed that if the FPNA were to make a motion stating that they are ok with the temporary portable idea, it would speak volumes to the City Commission. 11:34 Scott Needleman reported that the FPNA was always ok with the idea, but that they want to make sure the childcare had a place. This item will be brought up at FPNA’s next meeting. 12:08 Maria Hernandez is in favor of Scott Needleman discussing this item at FPNA. She stressed the importance of making sure this item gets heard at the June 22nd City Commission Meeting. 12:39 Chair Karen Rivo asked if any member would like to make a motion to inform the Commission that the G.O. Bond Oversight Committee is in support of finding a site for the childcare and stressing the urgency. 13:10 Jason Greene made a motion to inform the Commission that the G.O. Bond Oversight Committee highly recommends the moving forward of this project with all due haste and without any interference. 13:21 Jack Glottmann seconded the motion. 13:24 Scott Needleman expressed that he would like to include the importance of finding a location for the daycare to the motion. 14:19 Jason Greene said he is ok with adding to the motion “with the hope that the childcare is relocated”. He explained that it would be a tough decision for the City Commission to make if it came down to the residents getting a fire station without a place for the childcare. As a South Beach resident that would be impacted by this, it’s a tough decision but we need that fire station. 16:35 Jack Glottmann said he will support the revised motion. 16:50 Dave Grieser expressed the importance of putting priority on finding a location for the childcare because their services are important to the community. G.O. Bond Oversight Committee Meeting Minutes No. 33 May 26, 2022 Page 7 of 10 17:34 Chair Karen Rivo asked Dave Grieser what his motion would look like if he were a voting member. 17:41 Dave Grieser said that he believes the demolition of the community center needs to be contingent on finding a good option for these kids. 18:25 Chief Virgil Fernandez expressed that the last thing the Fire Department wants to do is put kids out in the street. By allowing the City to place the kids in portables temporarily, gives Staff the time to start the construction of the first station and at the same time, look for a permanent solution for the daycare. 21:14 Maria Hernandez reported that Staff’s critical path is finding a temporary solution, in order to find a permanent solution in the near future. Discussion continued. 23:20 Chair Karen Rivo asked Jason Greene if he would entertain massaging in his motion to put some urgency on finding a temporary solution for the daycare. 23:31 Jason Greene answered yes. 25:07 Scott Needleman expressed that he is feeling a little leery on how the motion is phrased. He agrees with Dave Grieser on making the demolition of the community center contingent on finding a location for the childcare. He believes that this contingency may influence the commissioners that aren’t in favor of the temporary solution to vote yes. Discussion continued. 31:25 Laura Veitia said that it is her understanding that the old fire station will be retrofitted, and the daycare cannot go there until the fire station is complete. She asked for confirmation that the City is looking for a temporary space. 31:54 Maria Hernandez answered that the retrofitting of the existing fire station was the original plan. The problem with the existing fire station is the lift station located behind the building that cannot be relocated. Unfortunately, a playground cannot go on that site because the lift station emits a foul odor. The better option is to incorporate the childcare center into the future #5 Flamingo Park Youth Center & PAL project. CIP has hired a consultant to create layouts of the project with the childcare included. 34:27 Chair Karen Rivo asked Jason Greene to restate the motion. Motion: 34:32 Jason Greene made a motion to relay to the Commission that the G.O. Bond Oversight Committee strongly endorses moving forward project #45 Fire Station #1, while Staff prioritizes the attempt to find either a temporary or permanent solution to relocate the childcare. Jack Glottmann seconded the motion. All voted in favor except 1. G.O. Bond Oversight Committee Meeting Minutes No. 33 May 26, 2022 Page 8 of 10 #5 Flamingo Youth Center Facility 36:20 David Martinez reported that Staff is finishing the Professional Services Agreement for the consultant. Staff will begin assessing the feasibility and constructability of the new Flamingo Youth Center Facility, PAL, and the permanent daycare. Staff is asking the consultant to have a draft of the layout no later than November this year. #40 41 St Corridor Improvements 38:00 David Martinez reported that the schematic design drawings are due August from the design firm. #5 Flamingo Park Master Plan 39:15 David Martinez reported that the softball and baseball field designs will be ready around the same time. Staff will start with the construction of the softball field and not take the baseball field out of commission. Once the softball field is complete, the construction of the baseball field will commence. #38 Streets – Tranche 1 41:14 Joe Gomez reported that Public Works is moving ahead with repaving both streets and sidewalks. About 34 miles of roadway have been paved to date. The contractor is currently in the North Beach area. #37 Sidewalks – Tranche 1 41:34 Joe Gomez reported that 546,375 square feet of sidewalk have been reconstructed to date. #39 Seawalls/Shorelines – Tranche 1 41:53 David Martinez reported that the Brittany Bay seawall is expected to be complete in August. There were some delays due to supply chain equipment delivery. 42:54 Giancarlo Pena reported that Staff will soon begin the construction of the seawall at Jefferson Avenue. Permitting is underway for the other seawalls. 43:48 Carolina Jones asked when the construction of the Brittany Bay Park will be complete. 44:00 David Martinez clarified that the entire project will be complete in August. #33 Tree Planting – Tranche 1 44:13 Thais Vieira informed the Committee that the City’s urban forester, Omar Leon, recently moved to the west coast of Florida so the City is currently in the process of hiring a new urban forester. Staff is completing the North Beach area, which adds 75 trees in 100 days. The Middle Beach area has recently been completed. Staff is going to the City Commission in June for an award of another project that is part of a grant that was received. Additional funds are needed in order to complete this specific project. Once the new Urban Forester is on board, Staff will continue to plant trees in the Pinetree and La Gorce area, adding 117 trees. VII. Brief Updates (Refer to pages 31-36 on the Agenda & Handout Packet on the G.O. Bond website.) #31 Ocean Drive Corridor and #8 Lummus Park 46:04 David Martinez reported that staff has been working very closely with the Procurement Department and the Economic Development Department. The intent is to ask the City Commission on June 22nd for authorization to publish a Request for Qualifications to commence the procurement of a consultant. This consultant will begin the development of both Ocean Drive and Lummus Park as envisioned in the G.O. Bond Oversight Committee Meeting Minutes No. 33 May 26, 2022 Page 9 of 10 Zyscovich Vision Plan. Once approval is received from the Historic Preservation Board, the consultant will continue with the development of the construction documents for the Ocean Drive section. #10 Maurice Gibb Park 49:37 David Martinez reported that bids for the project are due June 10th. #15 Par 3/ Bayshore Park 50:39 David Martinez reported that the issue with this project is the cost estimates that were received. The City Commission will have to decide whether to put this project out to bid, knowing that there is a potential shortfall. #12 N. Beach Oceanside Beachwalk 51:30 David Martinez reported that Staff believes they can start to open up the beachwalk tomorrow, May 27th. This will be a soft opening. A Letter to Commission has been prepared and will be sent out. Staff is working with the Marketing & Communications Department to put out notices to the community and are currently planning a formal ribbon cutting. #9 MSD Playground and Sidewalks 55:00 Elizabeth Estevez reported that construction is currently underway, with the playground equipment already installed. There is a minor delay due to issues with acquiring concrete. Construction is expected to be complete by mid to late July. #49 Public Safety Radio System 56:22 Chief Virgil Fernandez expressed that this project was identified as one of the critical needs for both the Police Department and Fire Department. The system is now fully operational, with 10 different sites throughout the city. VIII. Project Fund Transfers & Swaps (Refer to page 37 on the Agenda & Handout Packet on the G.O. Bond website.) 58:57 Thais Vieira reminded the Committee that Staff is going to the City Commission in June to request additional funds for a project that received a partial grant. Project #43 Alton Road Shared Use Path is currently in the design phase and is a subproject under project #43 Bike Lanes & Shared Paths. This subproject is currently being designed and funded by FDOT, making the G.O. Bond dollars not required until Tranche 2, which is when the subproject will go into construction. An amount of $120,000 will cover the amount needed for project #33 Tree Planting – Tranche 1. 1:00:21 Chair Karen Rivo asked the Committee Members if there is a motion to recommend to Staff to transfer $120,000 from project #43 to #33. Motion: 1:00:39 Jason Greene made a motion to accept the recommendation as presented by Staff. 1:00:52 Laura Veitia seconded the motion. Motion passed anonymously. IX. Community Outreach (Refer to pages 38-39 on the Agenda & Handout Packet on the G.O. Bond website.) G.O. Bond Oversight Committee Meeting Minutes No. 33 May 26, 2022 Page 10 of 10 1:01:10 Allison Novack discussed the Items Related to G.O. Bond Program Projects list found on pages 38- 39 of the Agenda Handout Package. At the moment, most of the agendas are still pending. An item regarding expediting the opening of the Baywalk will be discussed at the June 1st Land Use & Sustainability Committee meeting. There is a community meeting on June 7th regarding 1st Street Improvements and the South Pointe Stormwater project. Staff is currently planning a ribbon cutting for North Beach Oceanside Beachwalk and will soon begin planning one for Marjory Stoneman Douglas Park. X. Program General Status & Sub-Projects Update, Closed Projects (Refer to pages 40-49 on the Agenda & Handout Packet on the G.O. Bond website.) 1:05:18 Maria Hernandez discussed the Program Progress Update found on pages 40-49 of the Agenda Handout Package. She reported that with the completion of the Public Safety Radio system, there are now 10 completed projects. A total of $49.75 M has been spent and $19.71 M is currently encumbered. There are 37 completed sub-projects out of 84. The City has received 39 grant awards leveraged by G.O. Bond projects, where 14 awards went directly towards G.O. Bond projects. Currently, there is $409,387 available in savings. XI. Grants – Update and Corrections (Refer to pages 50-53 on the Agenda & Handout Packet on the G.O. Bond website.) 1:10:41 Maria Hernandez reported that the City received 2 new grants. The City was awarded $17,000 from the Florida Department of Agriculture: Urban Forestry Grant and $50,000 from the Miami-Dade County Street Tree Grant for project #33 Street Tree Master Plan. XII. Public Comment 1:12:30 Chair Karen Rivo asked if anyone from the public would like to speak. 1:12:32 Robert Rabinowitz expressed his happiness that the street ends at 41st and 26th street are about to be finished. He noted that all of the repairs needed on the beachwalk have been attended to. 1:13:15 David Mckinney asked Maria Hernandez when she was aware that the current fire station was not going to be able to be retrofitted and why was the information not shared at the Historic Preservation Board. 1:13:41 Maria Hernandez answered that the fire station is going to be retrofitted, but not for the childcare facility due to the issue with the playground. She is not aware when Public Works determined that the fumes from the lift station were too strong to have an adjacent open-air playground. 1:14:24 David Mckinney expressed his understanding of the fumes being too strong but that this information should have been provided to the Historic Preservation Board. He noted that Nancy Leibman was under the impression that the fire station was going to be retrofitted. 1:15:28 Chair Karen Rivo suggested that David Mckinney and Maria Hernandez can meet offline to discuss further. XIII. Adjournment 1:16:37 Meeting was adjourned.