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3 - Meeting Minutes 5-9-24 General Obligation Bond Oversight Committee City of Miami Beach MEETING MINUTES No. 48 May 09, 2024 Members Present: Karen Rivo, Chair Jack Glottmann, Vice-Chair Dana Martorella Dennis Scholl Jason Koslowe Laura Veitia Shari Gurkin Non-Voting Members Present: Adam Kravitz David Sexton Donald Goldberg Non-Voting Members Absent: Isaiah Mosely Jack Benveniste Staff and Guests Present: Maria Hernandez, Liaison Thais Vieira Allison Novack Colette Satchell David Martinez Daniel Alzuri David Gomez Eric Carpenter Elizabeth Estevez Elizabeth Miro Frank Garcia Giancarlo Pena Heather Shaw Jani Singer Jason Greene Jose Del Risco Joseph Centorino Kevin Pulido Kristy Bada Krystal Dobbins Lauren Firtel Lindsey Precht Maria Cerna Matthew LePera Pilar Caurin Roland Aragunde Tiffany Bain Virgil Fernandez Ainsworth Geddes Brandi Reddick Cesar Sepulveda Casey Steadman David Phillips James Quinlan 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. 48 May 9, 2024 Page 2 of 11 I. Roll Call and Introductions (Refer to the Meeting Audio Recording on the G.O. Bond Website.) 0:03 Chair Karen Rivo called the meeting to order. Roll call was completed. II. Committee Business Adoption of Meeting Minutes from 4-11-24 Motion: 2:54 Dana Martorella made a motion to approve the minutes as presented. 2:55 Jason Koslowe seconded the motion. Motion passed. III. Inspector General Quarterly Report Discussion 3:16 Chair Karen Rivo reported that she asked the Office of Inspector General (OIG) to attend the meeting. She asked the Committee members to review the last OIG Quarterly Report, a copy of which was provided to each of the members at the meeting. 6:36 Inspector General Joseph Centorino introduced himself and Jani Singer, who oversees monitoring the GOB Projects, and who wrote the report. He added that their office is required to monitor the GOB Program by Ordinance. Additional information was provided. 9:00 Chair Karen Rivo asked the Committee members to advise what jumps out from the report. 9:02 Jack Glottmann answered he agrees 100% with the report’s recommendations. He added that the Fire Station 1 and 34th Street Projects were approved and ready to go, and at the eleventh hour, changes are being introduced that will cause undue delays and extra costs to the City. 10:06 David Sexton commented that these delays could impact the GOB Oversight Committee’s ability to serve the voter’s request, to make these projects come to fruition. 11:10 Jason Koslowe added that he thinks the process has to change at an Ordinance or Charter level because any Commission vote on a certain day can be changed by the next Commission, unless there is an Ordinance, or a super majority built in. He asked if there is any way to engage in a process that doesn’t involve that level of change. 13:30 Jack Glottmann added it is about empowering the Commission to be able to have a reason why they can say no to change requests from constituents who are opposed to projects. 14:10 David Sexton said they would probably appreciate the ability to point to something that says: “We would love to review this, but we are at this point in the process, and it’s out of our hands now”. 14:40 Dana Martorella said she really likes paragraph 3 on page 5 of the OIG Report which says: G.O. Bond Oversight Committee Meeting Minutes No. 48 May 9, 2024 Page 3 of 11 “A democracy, especially at the local level, must find a way to recognize the legitimate interests communicated by neighborhood groups and individual constituents to elected officials, and at the same time protect the overall public interest from being damaged by undue delays and resulting community and financial detriment. Achieving the best balance of these interests in the completion of major projects in which the City has already invested heavily in staff time, planning and budgeting requires foresight and discipline on the part of those who are responsible and accountable for the decisions on those projects.” 15:32 Jason Koslowe agreed that it is an excellent section but said unless it is built-in to the Code or Charter, any given Commission can vote differently. He also suggested adding clauses to Contracts of major projects that stipulate penalties for project changes after a certain completion percentage. 16:49 Dennis Scholl agreed that maybe it does need to be at the Charter level. It might be a long process, but it could fix the problem. 17:56 Chair Karen Rivo asked Jani Singer to elaborate on what other municipalities are doing about this problem. 18:21 OIG Investigator Jani Singer reported that she contacted the Inspector General of Miami- Dade County to find out how they are handling this type of situation and was told that their Commission is not involved in the design of projects. She added that this is a culture that appears to be unique to Miami Beach. She said she wouldn’t shy away from working with the City Attorney to craft some legislation. She believes it would be powerful statement from the GO Bond Oversight Committee. 19:53 Jason Koslowe asked if there are any avenues, aside from Charter reform to create a better process. 20:10 Inspector General Joseph Centorino responded and suggested that something could be done by Ordinance that may not require a Charter change, but they should talk with the City legal department about that. If there is an Ordinance change then that is the law. Perhaps it could be that, at a certain point in the project, a super majority or a special process would be required to delay something. This could also serve to assist the Commission when they are faced with these decisions. 21:20 Jason Koslowe asked for the City Attorney’s Office to come back with a set of options and recommendations. 21:34 Dana Martorella said she wonders how much standing the GO Bond Oversight Committee has. 21:56 Jason Koslowe added that part of what the Oversight Committee is supposed to do is to make sure projects are being done on time and within budget. 22:13 David Sexton said once the legislation is crafted it can be sponsored by a Commissioner. G.O. Bond Oversight Committee Meeting Minutes No. 48 May 9, 2024 Page 4 of 11 22:40 Deputy Assistant City Manager Eric Carpenter reported that the City has done things in the past to try to make it a little bit more difficult to make changes. I.e., the stormwater program has a super majority requirement to be able to roll back the requirements. You need to have an elected official who is willing to sponsor any legislation because the City has an Ordinance which says all Ordinances must be placed on the Commission Agenda by an elected official. At the end of the day, we are all trying to find the right mix of community engagement and efficiency and effectiveness in delivering construction projects. 24:27 Jack Glottmann commented that as an example, since at least 2015, there has been plenty of opportunity for community engagement, and plenty of work has been done to identify the optimal site for Fire Station 1. He suggested that once a project is approved, only a force majeure should trigger going back to the drawing board. 25:50 Interim Assistant City Manager David Martinez added that contractors out there know how complex it is to work in this City. It is evident by the variability in the cost estimates and bids received, or no bids received, or exorbitant bids, because they are afraid of the risk. And the same applies to Consultants. He added that whenever we pause projects for months, the assigned project team has to work on other projects. So, you may start with the A team, but down the road may end up with the B or C team. The construction industry is tight, so they all talk to each other. And that is also why it is difficult for cost estimators to provide a number. 29:10 Karen Rivo asked what the Committee would like to do. 29:21 Jason Koslowe asked for the City Attorney’s Office to present options at a future GOB Oversight Committee meeting. The Committee can then make a recommendation to the City Commission. 30:31 G.O. Bond Program Director Maria Hernandez said she will speak to the new City Attorney, Ricardo Dopico to see if he could attend the June meeting, and come back in July with recommendations. 32.07 Dennis Scholl added that it should be clear that the Committee is doing this as a response to the OIG Quarterly Report. 32:35 Jack Glottmann said that if is in fact a Miami Beach problem, it can hurt the City in the long term. Every Consultant will build in a higher contingency because of the risk. He asked the OIG to find out what other municipalities are doing, what can be legally done to put some tools in place so that these problems don’t happen in the future. 33:38 Jani Singer said that she already started this exercise and has looked at some audits of GO Bond Programs from other municipalities, but the work is still in progress. G.O. Bond Oversight Committee Meeting Minutes No. 48 May 9, 2024 Page 5 of 11 2022 G.O. Bonds for Arts & Culture IV. Arts & Culture Program General Status Update (Refer to pages 2-9 of the Agenda & Handouts Packet on the G.O. Bond website.) 35:37 Maria Hernandez reported that progress is being made because several projects are moving quickly. 6.1% of all Tranche 1 funds are spent or encumbered, compared to 5.6% last month. One more subproject has been completed, bringing the total to 4, 2 more subprojects are under construction, bringing the total to 10, and 3 more are in design, bringing the total to 17. 18% of the value of all Tranche 1 projects are either complete or under construction, compared to 17% last month. Staff is anticipating construction commencements in 2024 to total $21.8 million. The quarterly breakdown of these commencements is found on page 7 of the Agenda & Handouts Packet. V. 2022 Bonds Projects Update (Refer to pages 10-15 of the Agenda & Handouts Packet on the G.O. Bond website.) Fillmore (Jackie Gleason) 39:53 Facilities & Fleet Assistant Director Daniel Alzuri reported that there are no changes to the update provided at the last meeting. Staff will be presenting a recommendation to the City Commission at the June 26 meeting. Byron Carlyle Theater 40:34 Daniel Alzuri reported that the project was discussed at the May 1 Land Use and Sustainability Committee (LUSC) Meeting. There were some concerns raised, regarding density, parking and effect on traffic. It received a split vote (2-2), and it is moving forward to the City Commission with an unfavorable recommendation. The item will be heard and voted on again at the May 24 Finance and Economic Resiliency Committee (FERC) meeting. 41:20 Chair Karen Rivo asked for clarification on what the motion was. 41:24 Daniel Alzuri clarified that the motion was to move forward with a Cultural Arts Center including Workforce Housing. 41:47 Laura Veitia said that Workforce Housing is an essential need in the city, and if the City is creating this Arts and Culture facility in North Beach without housing, it is setting it up to fail. She added that the CRA also has a mandate to provide workforce housing, so there must be a way to create it there. 42:53 Jack Glottmann commented that it is the type of density that doesn’t put a lot of pressure on traffic. 43:06 David Sexton said that Commissioner Fernandez stated that one of the Arts organizations, the Bandshell, had expressed concerns about parking. But he explained their concern is that none G.O. Bond Oversight Committee Meeting Minutes No. 48 May 9, 2024 Page 6 of 11 of their employees can afford to live in North Beach, and that is what creates the problem. The lack of housing in the area creates the forced commute. 43:50 Laura Veitia added that one of the reasons for forming the Town Center was to create their own downtown so that people that live in the area don’t need a car. 44:08 Daniel Alzuri reported that staff has done a cashflow proof of concept with the Workforce Housing option, as part of the Commission Memorandum. It compares the effect of having a standalone Cultural Arts Center and the expenses incurred with ongoing operations and how workforce housing affects that funding for the ongoing operation. 44:42 David Sexton said that there would be a revenue stream from the housing. 44:50 Dennis Scholl offered a clarification for the Arts organizations representatives that are on the call that “workforce housing can mean artist housing”. 46:25 David Sexton added that artists working in the center, or studio, could live in the community that they service. Motion: 46:53 Laura Veitia made a motion to include workforce housing as part of the Byron Carlyle Theater Project, utilizing $4 million of G.O. Bond funds available in Tranche 2 (for workforce housing). 47:28 Dennis Scholl asked the Committee to consider adding to the motion “including artist housing”. 47:35 Laura Veitia agreed. 47:40 Shari Gurkin seconded the motion. Motion passed unanimously. 48:31 Chair Karen Rivo asked why the item needs to go to Finance and Economic Resiliency Committee (FERC). 49:55 Eric Carpenter added that the big decision to be made is whether the project is moving forward as a standalone center or a center with workforce/artist housing. The financing of the residential component adds a lot of upfront costs but increases the downstream flow of money back to the Byron Carlyle, or the City. So, we need buy-in from FERC because the City will need to find additional funds to cover upfront capital cost related to the residential component of it. 50:55 Chair Karen Rivo asked if it is the same model as the Miami City Ballet (Servitas). 51:06 Eric Carpenter answered that the Administration is not yet sure, but if directed to include workforce/artist housing, they would like to go down the path of having a 501 (c) (3) entity that G.O. Bond Oversight Committee Meeting Minutes No. 48 May 9, 2024 Page 7 of 11 is willing to carry the bonds for the capital expenditures and have the City maintain more control over the property in the long term. 51:37 Jack Glottmann asked for elaboration on the proforma. 51:51 Daniel Alzuri said it was, actually, a proof concept but there are so many variables such as the number of units, rents, square footage of the center, etc. If the Administration is directed to pursue workforce housing, the variables will have to be fine-tuned down the line. Discussion continued. Bass Museum 58:13 Interim CIP Director David Gomez reported that the issuance of a Consultant Service Order for the Basis of Design for the addition project is in the works. On a parallel path staff is also working on an RFQ for a design consultant and a Construction Manager at Risk (CMAR), so that those contracts are issued concurrently. A meeting with the Bass Museum team took place last week, to identify program and space requirements. In approximately 30 days the Basis of Design (BOD) process will commence. 1:01:05 Daniel Alzuri reported that the other Bass Museum projects are at various phases. The fountain is currently being refinished, some of the lighting work has been done, and other projects are progressing. North Beach Oceanside Center 1:02:02 Daniel Alzuri reported that the sound system is in the final stages of design and expecting approval from UNIDAD within the next couple of weeks. Aquatic Sculpture Park (Reefline) 1:02:41 Maria Hernandez reported that the Agreement between the City and County has been fully executed. The Grant Agreement with Blue Lab Preservation Society is very close to being finalized. The grantee would like to have the first deployment done before Art Basel. 1:03:41 Donald Goldberg asked what exactly is being placed in the ocean. 1:03:43 Dennis Scholl answered the sculptures are designed by Leandro Erlich, who is an amazing international contemporary artist. He stated that what separates the Reefline from other artificial reefs is that it is all being created by very good artists. Discussion continued. 1:06:54 Jack Glottmann said originally the first phase was planned for July. 1:06:59 Maria Hernandez reported that they were recently able to obtain a 2-year extension from DERM. The reason it had been stated it was planned for July was because that was when the permit was previously set to expire. G.O. Bond Oversight Committee Meeting Minutes No. 48 May 9, 2024 Page 8 of 11 VI. Grant Projects Scope Variation (Refer to pages 16-20 of the Agenda & Handouts Packet on the G.O. Bond website.) 1:07:45 Maria Hernandez reported the Administration has been approached by a couple of the grantees, the New World Symphony and the Jewish Museum of Florida, who would like some scope swaps to the original list of items that had been approved. She presented excerpts from the boilerplate Grant Agreement, which say that if a grantee would like to revise the scope of the Project, the grantee must obtain approval from the City Commission. The City Manager has authority to approve the use of contingency, but scope changes can only be approved by the City Commission. Staff will prepare memorandums explaining the 2 requests received and present to the GOBOC at the next meeting for a motion. It will then be followed by an item to the City Commission. 1:09:37 Jack Glottmann asked if this applies only to future Grant Agreements that have not yet been signed. 1:09:43 Maria Hernandez answered no, it applies to the existing Agreements, which will need to be amended. 01:10:10 Jack Glottmann said it seems like the City has the right to unilaterally amend these Agreements as needed. 01:10:21 Maria Hernandez said no, these Amendments will be presented to the City Commission for approval. Each institution must state their case and explain why they are prioritizing items that were not even on the list originally. The Commission may or may not approve. 01:10:59 Eric Carpenter clarified further that the City cannot unilaterally change Grant Agreements, but he doesn’t think Commission will oppose these modifications. VII. Public Comment 01:11:38 Chair Karen Rivo asked if anyone from the public would like to speak. No one from the public requested to speak. 2018 G.O. Bonds VIII. Program General Status Update (Refer to pages 21-30 of the Agenda & Handouts Packet on the G.O. Bond website.) 01:12:42 Maria Hernandez reported that out of the 44 Tranche 1 projects, 43 projects (98%) are either complete or active. 75% of all Tranche 1 funds are either encumbered or spent ($118.3M out of the $157M), but the main progress is regarding the amount of money spent. She added that two months ago it was reported that $73M had been spent, and $77M last month. This month expenditures are at almost 80M. 86 out of 89 (or 97%) of subprojects in Tranche 1 are either complete or active. There are 47 completed sub-projects, 11 under construction, 24 in G.O. Bond Oversight Committee Meeting Minutes No. 48 May 9, 2024 Page 9 of 11 design, 4 in planning and 3 in a pending status. The Flamingo Park LED lighting moved from pending to design. Staff is anticipating construction commencements in 2024 to total $46.3 million. The quarterly breakdown of these commencements is found on page 25 of the Agenda & Handouts Packet. Regarding the savings realized, she reported that last month the GOB Oversight Committee made a motion to allocate up to $871,000 for Maurice Gibb Park. Only 751,275 was needed, so the spreadsheet shown on pages 26 and 27 of the Agenda & Handouts Packet has been revised to reflect the revised number. IX. 2018 Bonds Projects Update (Refer to pages 31-46 of the Agenda & Handouts Packet on the G.O. Bond website.) #45 Fire Station #1 01:18:36 David Gomez reported that the analysis of the alternative sites is scheduled to be heard at the May 15 Commission Meeting. On May 6, the Administration attended the Flamingo Park Neighborhood Association meeting and presented some renderings of the Flamingo Park site. They approved 2 resolutions which in summary state that if the Fire Station is placed at Flamingo Park, they would like other uses that are currently located in the park (such as the PAL or the Boys and Girls Club) to be relocated off site to free up park space. One suggested location was the existing Fire Station 1 building. 1:20:57 Laura Veitia asked if the $20M extra cost associated with moving the Fire Station to Flamingo Park includes the relocation of these 2 facilities. 1:21:02 David Gomez answered no. Discussion continued. 1:32:38 Chair Karen Rivo asked Maria Hernandez to send an email to the Committee members with the 3 motions made regarding Fire Station and the last OIG Quarterly Report, and asked the members to reach out to Commissioners. 01:32:57 Donald Goldberg asked if any other Committees have made motions regarding this project. 01:33:16 Maria Hernandez answered that the Administration had all the approvals necessary to build it at the South Shore Center location. The project is now at the Commission level. In terms of neighborhood associations, SOFNA recently chimed in, when there were other sites being considered, but it has mainly been the Flamingo Park Neighborhood Association because it is in their neighborhood. 01:33:54 Jack Glottmann asked if there were any residents that spoke against the project at Commission. G.O. Bond Oversight Committee Meeting Minutes No. 48 May 9, 2024 Page 10 of 11 01:34:04 Maria Hernandez answered yes, there have been a couple of residents who have been very vocal throughout the process. 01:34:18 Jack Glottmann asked when the direction was given to look at other sites and was that driven by residents or Commission. 01:34:26 Chair Karen Rivo answered it was driven by the Commission. She added that the residents that oppose the project are about preserving the building and the services in the building. #23 Pedestrian Bridge 01:35:11 David Gomez reported that at the Land Use & Sustainability (LUSC) meeting last week the developer provided an update. They are expecting a permit from FDOT in June which will allow them to commence construction. The project has an expected duration of 18 months. They will begin with utilities relocation. 01:35:58 Dana Martorella asked if the project will cause street closures. 01:36:08 David Gomez answered yes, there will be lane closures and full closures at night from time to time. Various City departments are currently involved in the coordination of the proposed Maintenance of Traffic (MOT) plan. #23 Baywalks Bay Garden Manor Link 01:36:53 David Gomez reported staff has met with representatives from the Association on May 1. No feedback was received; they need to go back to their members. Staff is expecting feedback this week. Bayview Terrace Link 01:37:39 David Gomez reported staff met with representatives from the Association on April 26. They received comments that can be incorporated. This property has a Land Use order in place. They now must go through the agreement process. South Bay Club Link 01:38:23 David Gomez reported that the Board is in the process of changing management companies and asked the City for more time before they meet again. 01:39:17 Maria Hernandez reminded the Committee that the Baywalk is a standing item at every LUSC meeting. XI. Community Outreach (Refer to pages 47 and 48 of the Agenda & Handouts Packet on the G.O. Bond website). Upcoming and Recent Past Public Meetings 01:41:40 Neighborhood Affairs Division Director Kevin Pulido discussed the Items related to G.O. Bond Program Projects, found on pages 47 and 48 of the Agenda and Handouts packet. He G.O. Bond Oversight Committee Meeting Minutes No. 48 May 9, 2024 Page 11 of 11 explained that each item is hyperlinked, and the actions are noted in red. He reported that the City is hosting a survey, which was issued today, regarding the Traffic Re-Circulation Pilot Program for 41st Street. He also reported that the groundbreaking ceremony for Collins Park Rotunda took place on April 16, and the one for the Flamingo Park Lodge took place on May 2. 01:46:29 Laura Veitia asked for an update on the Jacob’s study at the June or July meeting. XIII. Adjournment 1:48:10 Meeting adjourned.