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3- Meeting Minutes 4-11-24 General Obligation Bond Oversight Committee City of Miami Beach MEETING MINUTES No. 47 April 11, 2024 Members Present: Karen Rivo, Chair Jack Glottmann, Vice-Chair Dana Martorella Jason Koslowe Laura Veitia Non-Voting Members Present: David Sexton Isaiah Mosely Jack Benveniste Members (not part of quorum): Shari Gurkin Members Absent: Dennis Scholl Non-Voting Members Absent: Adam Kravitz Donald Goldberg Elected Officials Present: Commissioner Joseph Magazine Staff and Guests Present: Maria Hernandez, Liaison Rickelle Williams Jason Greene David Martinez Cristina Ortega Daniel Alzuri Digna Abello Elizabeth Estevez Frank Garcia Giancarlo Pena Jani Singer Justin Karr Kevin Pulido Krystal Dobbins Lauren Firtel Lindsey Precht Maria Cerna Otniel Rodriguez Roland Aragunde Thais Vieira Virgil Fernandez Ainsworth Geddes Brandi Reddick Bruce Halpryn Casey Steadman David Phillips Luis Atencio (Aide to Commissioner Magazine) Meeting Start Time: 4:00 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. G.O. Bond Oversight Committee Meeting Minutes No. 47 April 11, 2024 Page 2 of 9 I. Roll Call and Introductions (Refer to the Meeting Audio Recording on the G.O. Bond Website.) 0:02 Chair Karen Rivo called the meeting to order. Roll call was completed. 00:31 Chair Karen Rivo welcomed new member – Jack Benveniste, ex-oficio from Budget Committee II. Committee Business Committee Meetings Calendar 2:02 June 20 meeting moved to June 13 and October 15 meeting moved to October 10. 3:43 Chair Karen Rivo welcomed Commissioner Magazine and thanked him for his support for the G.O. Bond. Committee Appointments 4:08 Chair Karen Rivo reported there are two committee vacancies: The Cultural Arts seat and the South Beach seat. She asked the Committee members to reach out to Maria Hernandez with any suggestions. 2018 G.O. Bonds III. Program General Status Update (Refer to pages 3-10 of the Agenda & Handouts Packet on the G.O. Bond website.) 7:17 Maria Hernandez reported that out of the 44 Tranche 1 projects, 98% are either complete or active. 11 projects have been completed, 32 are active, and only 1 pending. 75% of all Tranche 1 funds are either encumbered or spent ($118.3M out of the $157M). 85 out of 89 (or 96%) of subprojects in tranche 1 are either complete or active. There are 47 completed sub-projects, 11 under construction, 23 in design, 4 in planning phase and 4 in a pending status. 53% of the value of all tranche 1 subprojects are either complete or under construction. Staff is anticipating construction commencements in 2024 to total $46.3 million. The quarterly breakdown of these commencements is found on page 7 of the Agenda & Handouts Packet. IV. 2018 Bonds Projects Update (Refer to pages 11-20 of the Agenda & Handouts Packet on the G.O. Bond website.) #45 Fire Station #1 14:53 David Martinez reported that there were several items on the April 3 City Commission agenda that were directly related to the Fire Station #1 Project. One of the items was requesting a County-wide voter referendum to be held in August 2024 for the approval to build a new fire station at the west end of Flamingo Park. The item was approved unanimously. Item R9 AN, which was the Administration’s detailed analysis of all the sites, was not heard. The Commission Memorandum includes a matrix summarizing the analysis. Of the 7 new sites analyzed (in addition to the South Shore Community site), only 2 are viable: Flamingo Park site and the site currently occupied by Wholefoods. The Administration has not heard back from the Wholefoods site property owner regarding their interest in pursuing negotiations with the City. G.O. Bond Oversight Committee Meeting Minutes No. 47 April 11, 2024 Page 3 of 9 19:45 Commissioner Magazine added that the situation is even more complex since the property is owned by AIR Communities and private equity firm Blackstone just purchased their portfolio. It will take months for them to go through their due diligence before they decide what to do with these properties. 21:03 David Martinez reported that regarding the Flamingo site, the footprint of the football field would not be affected but the track would have to be shifted approximately 15 feet to the east, and two existing buildings would have to be moved. The cost associated with this work is currently estimated at approximately $15-20 million. He advised that the Administration would not be able to move forward with the project on this site until after approval of the voter referendum, and from that moment, it would take at least 4 years before the new fire station would be completed. 24:58 Jason Koslowe asked for clarification regarding the associated project delays. 25:24 David Martinez answered that a 2 to 2.5-year delay is the amount of time it will take to get back to the same place. But from the moment staff is directed to proceed at the new site, it will take 4 years to deliver the project. 25:58 Jason Koslowe asked if there are any delays if the project remains at the current site. 26:07 David Martinez advised that there is approximately a 6-month delay. 26:27 Jason Koslowe asked if it would cost less to move the South Shore Community Center building than the cost associated with the Flamingo Park option. David Martinez answered that staff has not looked at that option. It would have to be studied. He advised that the relocation of the daycare center would still be required. 28:03 Jack Glottmann asked for confirmation that the $2.1 million that has already been spent will not be lost. David Martinez confirmed and clarified that the total amount spent is approximately $4 million. 28:30 Jack Glottmann asked what happens to the $11 million grant if the project is delayed that far. David Martinez answered that there are 2 grants. The current grant, for $10 million, doesn’t expire until next year. Per preliminary conversations with the State, if the City is still constructing the same fire station, with the same criteria (i.e. Class V structure), and within the same service area, the grant can be rolled over to another site. 29:34 Jack Glottmann said he would like to see a side-by-side comparison before a voter referendum. He stated that it doesn’t make sense (to not move forward with the original site). 30:18 Chair Karen Rivo stated that this Committee has made multiple motions to move this project along. She agreed with Jack that it doesn’t make sense to not have the project proceed in the original site, since it is going to cost an additional $15-20 million, the project will be delayed, and there are so many variables. G.O. Bond Oversight Committee Meeting Minutes No. 47 April 11, 2024 Page 4 of 9 31:10 Commissioner Magazine stated that staff has done a great job including in the Commission Memorandum exactly what Jack Glottmann suggested – the side-by-side comparison, with pros and cons. 31:33 Chair Karen Rivo asked what the next step is. David Martinez answered that the Administration should receive direction from the City Commission at the May 15 Commission meeting. Discussion continued. Motion: 34:57 Jason Koslowe made a motion concurring with staff’s recommendation regarding the site selection for Fire Station No. 1 (as presented in item R9 AN of the April 3, 2024 Commission Agenda). 35:00 Jack Glottmann seconded the motion. Motion passed unanimously. II. Committee Business Adoption of Meeting Minutes from March 7, 2024 35:19 Chair Karen Rivo asked for a motion to approve the March 7th meeting minutes. Motion: 35:30 Jack Glottmann made a motion to approve the minutes as presented. 35:31 Laura Veitia seconded the motion. Motion passed. IV. 2018 Bonds Projects Update (Continued) #1 72nd Street Complex 35:36 David Martinez reported that the Construction Manager at Risk and the design firm have been working together to come up with a design within the construction budget of $70 million. They have priced several iterations, independently. The estimated cost of the final iteration exceeds the budget by approximately 10%. At this point, the design team cannot make any additional design changes to reduce the cost any further without deviating from the design criteria. The design team is currently preparing a menu with examples of things that can be done to bring the cost down. Staff plans to present an item for a decision by the City Commission in the upcoming months. #40 41st Street Corridor 41:30 David Martinez reported that comments from FDOT have been incorporated into the 60% design, which is being presented to the 41st Street BID and to the 41st Street Mayor’s Blue-Ribbon Committee tonight. 90% design submittal is expected in the fall. A decision will have to be made at that time regarding timing of the project. G.O. Bond Oversight Committee Meeting Minutes No. 47 April 11, 2024 Page 5 of 9 #10 Maurice Gibb Park 42:42 David Martinez reported that at the May Commission meeting staff will be requesting approval of a change order to the Contractor’s Contract and an Amendment to the Consultant’s Agreement associated with the unforeseen issues that have been reported in the past few months. Construction is approximately 50% complete, and completion is expected in the first quarter of next year. VI. Savings Transfer – Parks Category (Maurice Gibb Park) (Refer to pages 23-26 of the Agenda & Handouts Packet on the G.O. Bond website.) 44:25 Thais Vieira reported that staff is recommending the transfer of savings realized in the Parks Category to the Maurice Gibb Park Project for the items described by David Martinez earlier. The City has realized a total of $3.8 million in savings in the whole G.O. Bond program, and over $2.4 million of that was saved within the Parks category. $1.3 million has been previously transferred and today’s request is for the transfer of an additional $871,000 from the Middle Beach Beachwalk Project and Scott Rakow subprojects that have been completed. 46:37 David Martinez reported that staff continued to negotiate with the contractor and that the number has been revised down to $751,000. Motion: 47:15 Dana Martorella made a motion to approve the transfer of up to $871,000 in savings in the Parks Category to the Maurice Gibb Park Project. 47:29 Jack Glottmann seconded the motion. Motion passed unanimously. IV. 2018 Bonds Projects Update (Continued) #42 Normandy Isle Traffic Calming 47:50 Otniel Rodriguez reported that as a result of the community meeting held on March 6, 2024, staff directed the Consultant to come up with design alternatives to minimize the impact to the number of parking spaces lost, which totaled 69. Staff has already received recommendations from the Consultant, which propose to significantly reduce the number of spaces lost. The next step is to present the Consultant’s recommendations to the City Manager’s Office. 52:29 David Sexton asked for clarification on the number of parking spaces that would be lost in the new iteration. 52:36 Otniel answered only 30-40% of the 69 spaces would be lost. 52:52 Chair Karen Rivo commented she is glad staff is working with the community on this. 52:59 Jack Benveniste asked if 71st Street is included in the scope of work of the project. G.O. Bond Oversight Committee Meeting Minutes No. 47 April 11, 2024 Page 6 of 9 53:01 Otniel Rodriguez answered that the proposed traffic calming devices are not located directly on 71st Street, but on surrounding streets within Normandy Isle. Since it is a state-owned road, FDOT is currently performing a road-safe analysis to come up with traffic calming solutions. V. Infrastructure Category – Tranche 2 (Refer to pages 21 and 22 of the Agenda & Handouts Packet on the G.O. Bond website.) 54:23 Jason Greene reported that there are multiple tranches in the 2018 G.O. Bond, and at this point there are projects within the Infrastructure Category that need additional dollars to proceed. The original tranche 2 for the Infrastructure Category was envisioned to be $90 million. The Administration’s recommendation to be presented to the Finance and Economic Resiliency Committee (FERC) in May is not to issue the debt now, but instead to request authorization to issue a Declaration of Official Intent. The City Commission approved many years ago the authority for the City to do that, and Jason, as the City’s CFO, has the authority to sign the document. This means that the City will basically borrow from the City’s own reserves and at some point, in the future within approximately 18 months, that debt will be issued, and the City’s reserves will be reimbursed. With respect to the selected projects, the strategy was to select those that are not controversial and already in need of additional funds, such as Street Tree Master Plan, Sidewalk Improvements, Street Pavement, Seawalls & Shorelines and Traffic Calming. Motion: 59:15 Laura Veitia made a motion to endorse the Administration’s strategy to request authorization from the City Commission to issue a Declaration of Official Intent in the amount of $19,830,000 for the five projects recommended by City staff within the Neighborhoods & Infrastructure Category. 59:17 Jack Glottmann seconded the motion. Motion passed unanimously. VII. Funding Swap for Log Cabin (Refer to pages 27 and 28 of the Agenda & Handouts Packet on the G.O. Bond website.) 1:00:47 Thais Vieira explained that at the last Commission Meeting a Resolution was adopted directing the Administration to prioritize the Log Cabin Project which is a project currently planned for Tranche 2. To accomplish that, the Administration is proposing a funding swap, moving funding to Tranche 2 that is in place today for North Shore Path & Fields and Skate Park. North Shore Path & Fields will not be executed until after the 72nd Street Project and Skate Park is currently in a pending status. 1:02:13 Maria Hernandez advised that this is going to increase the total number of projects in tranche 1 from 44 to 45. 1:03:41 Laura Veitia asked if the City is using all of the original pieces from the Log Cabin. 1:03:47 David Martinez answered that the Consultant that had performed the original analysis recommended to restore the fireplace chimney and use some of the good timber as cladding, not as structural components. G.O. Bond Oversight Committee Meeting Minutes No. 47 April 11, 2024 Page 7 of 9 Motion: 1:04:42 Jason Koslowe made a motion to support the Administration’s recommendation to temporarily realign funding in the amount of $1,009,000 from #13 North Shore Path & Fields sub- project and $67,000 from #30 Skate Park to advance the Log Cabin Project to tranche 1. 1:04:51 Laura Veitia seconded the motion. Motion passed unanimously. VIII. Public Comment 1:05:27 Chair Karen Rivo asked if anyone from the public would like to speak. No one from the public requested to speak. 2022 G.O. Bonds for Arts & Culture IX. Arts & Culture Program General Status Update (Refer to pages 29-34 of the Agenda & Handouts Packet on the G.O. Bond website.) 1:06:10 Maria Hernandez reported that out of the 20 Tranche 1 projects, 1 is complete and 19 are in an active phase. Currently, 5.6% of all Tranche 1 funds ($5.7 M out of $101.7 M) have been spent or encumbered. 91% of all subprojects are either complete or active (42 out of 46 subprojects). 3 are complete, 8 are in construction, and 14 in design. $1.7M worth of projects have been completed, $15.7M in construction, $24.7M in design, $54M in planning, and $5.4M in pending projects. A comparison between last month and this month was provided. X. 2022 Bonds Projects Update (Refer to pages 35-39 of the Agenda & Handouts Packet on the G.O. Bond website.) Hispanic Community Center 01:10:49 Daniel Alzuri reported that the first grant advance in the amount of just over $62K has been issued. The construction fence is up, a water line has been repaired, engineering assessment and exploratory demolition have been completed. They are proceeding with design and permitting. Project completion is expected sometime in the summer of 2025. Fillmore (Jackie Gleason) 01:11:45 Daniel Alzuri reported that on April 3 the City Commission directed staff to explore two scenarios: construction of a new theater with the subsequent demolition of the old theater, and the renovation of the existing theater. Conversations with Live Nation are underway. 01:15:01 Jack Glottmann asked if Live Nation would be contributing any funds in the new theater scenario. 01:15:16 Daniel Alzuri answered that everything is on the table. 01:17:10 Chair Karen Rivo asked if the Cultural Arts Council has issued an opinion regarding the two options. G.O. Bond Oversight Committee Meeting Minutes No. 47 April 11, 2024 Page 8 of 9 01:17:19 David Sexton answered that they have not but would like for Daniel to present the options once they are more developed so that they can make a recommendation. Byron Carlyle Theater 01:17:45 Daniel Alzuri reported that the final report from AMS Consulting was received this week. Staff has also met with Servitas, the developers of the Collins Park Workforce Housing Project. They developed a financial proforma so that the City can understand better the two models: a standalone cultural arts center, or a cultural arts center with workforce (“artforce”) housing. Workforce housing opens a lot of doors financially. Staff will be giving a presentation at the April 19 Finance and Economic Resiliency Committee (FERC) meeting and at the May 1 Land Use Committee Meeting. 01:19:07 David Sexton commented that the exciting thing about the artforce housing option is that eventually it will become a revenue stream that will support the building so that the center doesn’t need to keep going back to the City for additional funds to support them, aside from the fact that artforce housing is needed in North Beach. Collins Park Rotunda 01:19:47 David Martinez reported that the construction contract was awarded in December. The contractor mobilized on site on April 9. The fence has already been erected around the work zone. There is a ground-breaking ceremony scheduled for April 16 at 6pm. The project is expected to be completed in early 2025. Furthermore, on April 3 the City Commission authorized the Administration to begin negotiations with Friends of the Bass as the selected management/operator entity that will run the facility once it’s completed. Aquatic Sculpture Park (Reef 01:23:53 Maria Hernandez reported that the Agreement with the County has been fully executed, which allows the City to move forward with the Grant Agreement. XI. Community Outreach (Refer to pages 40 and 41 of the Agenda & Handouts Packet on the G.O. Bond website.) Upcoming and Recent Past Public Meetings 01:25:36 Kevin Pulido discussed the Items Related to G.O. Bond Program Projects, found on pages 40 and 41 of the Agenda and Handouts Packet. He explained that each item is hyperlinked, and the actions are noted in red. He added that the groundbreaking ceremony for the Flamingo Park Lodge has been scheduled for May 2, and that the West Lots Community Charette has been postponed. 01:27:35 Chair Karen Rivo asked how much has been allocated to West Lots. 01:27:38 Maria Hernandez answered $5 million. She elaborated that the Charette is about potential recreational and park uses for the West Lots. 01:28:50 Chair Karen Rivo asked if the Skate Park is located on the West Lots. G.O. Bond Oversight Committee Meeting Minutes No. 47 April 11, 2024 Page 9 of 9 01:28:53 Laura Veitia answered yes, it is located at 82nd or 83rd Street. 01:29:04 Laura Veitia mentioned that there was already a study done by Dover Kohl on the West Lots. She asked if the City is taking that into consideration or starting over with a new process. 01:29:19 David Martinez answered that the City Commission directed the Administration to look at potential park and recreational uses for the West Lots. XII. Public Comment 1:29:49 Chair Karen Rivo asked if anyone from the public would like to speak. No one from the public requested to speak. XIII. Adjournment 1:31:59 Meeting adjourned.