OIG No. 24-21 Inspector General G.O. Bond Quarterly Report
Joseph M. Centorino, Inspector General
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TO: Honorable Mayor and Members of the City Commission
FROM: Joseph Centorino, Inspector General
DATE: September 13, 2024
RE: Inspector General G.O. Bond Quarterly Report
OIG No. 24-21
Introduction
This report is written in compliance with Section 2-256(j) of the City of Miami Beach Code, which requires
the Office of the Inspector General (OIG) to prepare and submit to the City Commission on a quarterly basis
a written report concerning the planning and execution of the General Obligation Bond Program, including
progress reports, financial analysis, and potential risks. The review is based on official City records, OIG
attendance at internal implementation and oversight committee meetings, interviews with staff and other
department personnel as well as regular discussions with the Program Director. This report is intended to
provide the Mayor, City Commission and the public with useful information and periodic evaluations
regarding the implementation of the G.O. Bond projects to date.
Update
In OIG No. 25-05, the OIG reported on the wasteful practice of late-stage design changes and the impact
on project timelines and budgets. The OIG recommended that the City study the cumulative impact of this
practice on project costs and timelines, weigh the costs and benefits of the practice and assess whether
changes in the approval process for G.O. Bond and other City projects are warranted. On May 9, 2024,
the OIG met with the G.O. Bond Oversight Committee to discuss the recommendations in OIG No. 25-05,
including the suggestion that the City conduct an inventory of all cost estimators currently being used in
order to assess how well they predict construction market changes in light of the budget shortfalls on many
of the projects.
On July 10, the OIG met with Commissioner Alex Fernandez, former City Manager, Rickelle Williams, the
City Attorney, the G.O. Bond Director, Interim Assistant City Manager Director, and other staff to discuss
proposed legislation labeled, “Stop the Pause.” Commissioner Fernandez sponsored the new legislation,
Item R5AJ on the July 24th Commission meeting agenda, and stated in his Commission memorandum:
As recognized by the Mayor and City Commission in Resolution No. 2024-33144 and by the Office
of the Inspector General in OIG Opinion Nos. 24-05 and 24-12, it is in the best interest of the City
to ensure that such critical infrastructure projects proceed without unnecessary interruptions or
modifications once they have reached advanced stages of design or are shovel-ready.
The proposed Ordinance would codify more stringent voting thresholds necessary to take any
action that would have the effect of pausing, delaying, stopping or materially modifying critical
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infrastructure projects at advanced stages to ensure continuity and completion, while allowing for
exceptions in the case of unforeseen site conditions that materially impact the cost of the project,
funding limitations, and/or funding emergencies, and provided, the Ordinance would not in any way
limit the Commission’s ability to accept the recommendation of the City Manager to reject all bids,
to take any action the Commission deems necessary to protect the City’s rights under a contract
with a design consultant or contractor. In addition, the Ordinance contemplates that the approval
of (a) material changes to increase the scope of a critical infrastructure project having an estimated
construction cost of $1,000,000 or more or (b) to approve an increase to the contract price relating
to such a critical infrastructure project shall continue to require only a simple majority (i.e. 4/7th)
vote of the City Commission.
The proposed Ordinance also clarifies its scope by defining “critical infrastructure projects” as only
the following:
(i) Projects relating to fire flow, stormwater systems, potable water, and
sanitary sewer projects deemed by the city manager to be critical due to
risk of failure;
(ii) Utility projects to replace and/or upgrade systems that are at or near
capacity;
(iii) Neighborhood Improvement Projects (“NIPs”) that have been approved by
the city commission, that may include resiliency-related improvements
such as road raising and harmonization.
The ordinance was passed by the City Commission on second reading at its regular meeting on September
11. The OIG supports the ordinance as a step towards greater fiscal responsibility. As a result of its adoption,
the OIG foresees that its successful implementation may provide the basis for considering its extension to
additional projects, including certain ones in the 2018 General Obligation Bond.
Compliance with Management Policy for Internal Controls on Major Construction Projects
Resolution 2022-32047, passed in February 2022, said, in part, that “the City Administration and the City
Commission desire to establish consistent management policies in the completion of major construction
projects, particularly as the City proceeds with a robust capital improvement program to implement General
Obligation Bond projects…” The goal of the policy is to identify those projects with construction budgets
greater than $5 million that experience a 5% increase in scope and cost without the knowledge of the
department directors, City Manager and Commission in order to control escalating costs and “scope creep.”
During this quarter, the OIG requested a report from the G.O. Bond Director to determine which G.O. Bond
projects fell within the policy and whether the policy was being followed. A copy of the analysis can be
reviewed in the attachment List of G.O. Bond Projects by Bond Category. The OIG met with the
Administration and has identified a number of issues related to the application of the policy. For example,
the Marine Patrol Facility, in the design stage, has experienced scope/design changes that have resulted
in a budget increase request of $3,431,834.50, well above the 5% contemplated by the policy, but still below
the $5 million threshold for the construction budget. The increase in scope and cost occurred based on
instructions from the Design Review Board and was within the knowledge of the department director and
City Manager. Consequently, it was ultimately determined by the Administration that the policy did not apply.
The OIG will work collaboratively with staff to ensure the policy is consistently applied whenever warranted.
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Construction Delays
The following six projects have not started construction as previously anticipated:
Project Name Reason for Delay
Bayshore Traffic Calming Design revisions required after
County review
Pedestrian Bridge Permitting with outside agencies.
This is being delivered by a
private party developer.
Police Headquarters GMP* over budget/design
revisions needed
Flamingo Park Butterfly Garden Construction of the temporary
daycare center at Flamingo Park
Fire Station #1 Commission Action/Project on
Hold
Street Lighting Contractor selection process
took longer than expected
*Guaranteed Maximum Price
G.O. Bond Oversight Committee Motions
The Committee made a motion to include workforce housing, including artist housing, as part of the Byron
Carlyle theater project, utilizing $4 million of G.O. Bond funds available in Tranche 2 for workforce housing.
This quarter the Oversight Committee once again made a motion recommending that the City Commission
proceed with the Fire Station #1 project at the South Shore Community Center site, and not proceed with
the Flamingo Park location because of concerns over the funds spent to date, the significant cost increase,
and reduction of fire safety services during the next three years (due to project delays). However, in light of
the recent Referendum approving the Flamingo Park location for the Fire Station and the apparent City
Commission consensus toward removal of the Community Center site from consideration, that issue is
probably closed at this point. As a G.O. Bond project, its implementation will continue to be monitored by
the OIG.
Log Cabin
This quarter the OIG received a complaint from a North Beach resident who was concerned about the City’s
maintenance of the remnants of the historic Log Cabin which have been stored for several years in
containers awaiting reconstruction of that building. The OIG confirmed that the dismantled logs have been
stored in an air-conditioned structure. The chimney and fireplace are being stored in an open-air structure
and have vegetation growing within the crevices of the remnants. The Division Director of Facilities
Management, Frank Garcia, visited the North Shore area where the Log Cabin is being stored and observed
the plant growth. The Department is opening a work order to remove the plant material from the structure
and spray with an EPA approved organic pesticide. They have also opened a recurring preventative
maintenance work order to check on the coral rock fireplace and remove all plant material on a quarterly
basis. The City has started the procurement process to hire a design consultant for a newly-renovated Log
Cabin.
G.O. Bond for Arts and Culture
In January, the Miami City Ballet requested a reimbursement for design services and project management
costs associated with a scope of work that was beyond the enhancements outlined in its grant agreement
with the City.The reimbursement was put on hold while the City engaged in a series of meetings with the
grantee to work through the items deemed to be outside the scope of work that had been authorized.
Currently,the total project cost is $16,423,400 which creates a budget shortfall of $4.425 million.On July
11,the City issued a Notice of Non-Compliance to the Miami City Ballet and instructed them to suspend
further expenditures related to the project until such time as the project complies with the scope of work
and budget as set forth in the grant agreement.Therefore,the project is on hold until the budget deficit is
resolved.The OIG will continue to monitor the project for possible future audit.
tfully submitted
cc:Karen Rivo,Chairperson of the G.O.Bond Oversight Committee
Eric Carpenter,City Manager
Thais Vieira,Interim Director G.O.Bond Program
Ricardo Dopico,City Attorney
OFFICE OF THE INSPECTOR GENERAL,City of Miami Beach
1130 Washington Avenue,6th Floor,Miami Beach,FL 33139
Tel:305.673.7020 •Hotline:786.897.1111
Email:CityofMiamiBeachOIG@miamibeachfl.gov
Website:www.mbinspectorgeneral.com
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LIST OF G.O. BOND PROJECTS BY BOND CATEGORY
Bond
Cat.
GOB Total Budget
+ Funding Prior to
2018 Referendum
Total Project
Budget Including
All Grants +
Other Funding
Internal Policy Controls Criteria Does Policy Apply at this
Time?
Policy created in February 2022
Construction Budget above $5M
5% (+) or (-) in cost due to Scope
25% increase in time per contract
2 Collins Park 557,287 557,287 Construction Cost < $5M No
3 Crespi Park 184,920 184,920 Construction Cost < $5M No
4 Fairway Park 260,000 260,000 Construction Cost < $5M No
5 Flamingo Park & Youth Center 30,550,000 30,550,000 50% Master Plan in various stages. 50% PAL in future. No
6 Fisher Park 105,000 105,000 Construction Cost < $5M No
7 La Gorce Park 150,000 150,000 Construction Cost < $5M No
8 Lummus Park 4,737,000 4,737,000 Construction Cost < $5M No
9 Marjory Stoneman Douglas Park 682,000 682,000 Construction Cost < $5M No
Policy created in February 2022
Construction Budget above $5M
5% (+) or (-) in cost due to Scope
25% increase in time per contract
11 Muss Park 250,000 250,000 Construction Cost < $5M No
12 North Beach Oceanside Park
Beachwalk 3,000,000 3,000,000 Construction Cost < $5M No
13 North Shore Park & Youth Center 5,725,000 5,725,000 Each Sub-Project < $5M No
14 Palm Island Park 231,000 231,000 Construction Cost < $5M No
Policy created in February 2022
Construction Budget above $5M
5% (+) or (-) in cost due to Scope
25% increase in time per contract
16 Pinetree Park 700,000 700,000 Construction Cost < $5M No
17 Polo Park 493,673 493,673 Construction Cost < $5M No
18 Scott Rakow Youth Center 3,512,091 4,549,306 Each Sub-Project < $5M No
19 Soundscape Park 4,575,497 4,575,497 Each Sub-Project < $5M No
20 South Pointe Park 480,000 480,000 Future No
21 Stillwater Park 142,440 142,440 Construction Cost < $5M No
22 Tatum Park 840,000 840,000 Construction Cost < $5M No
23 Baywalk 15,000,000 15,000,000 In Design Phase No
25 Waterway Restoration 6,000,000 6,250,000 In Design Phase & Future No
27 Log Cabin 1,076,000 1,076,000 Construction Cost < $5M No
28 Art Deco Museum 2,000,000 2,000,000 Construction Cost < $5M No
29 West Lots 5,000,000 5,000,000 Future No
72 Street Community Complex
Maurice Gibb Park
101,742,327
1,137,000
3,322,112
39,290,190
12,889,179 Parks Skate Park 30
1
15 Par 3 / Community Park (Bayshore
Park)
24 Middle Beach Beachwalk Phase 3
10
Roof Replacement for Cultural
Facilities26
Project COMPLETE with SAVINGS
Each Sub-Project < $5M
Construction Cost < $5M
54,546,000
8,971,957
25,626,295
6,889,179
2,932,631
937,000
No
No
No
No
No
No
Project Name
11,675,707
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LIST OF G.O. BOND PROJECTS BY BOND CATEGORY
Bond
Cat.
GOB Total Budget
+ Funding Prior to
2018 Referendum
Total Project
Budget Including
All Grants +
Other Funding
Internal Policy Controls Criteria Does Policy Apply at this
Time?Project Name
31 Ocean Drive Corridor 20,000,000 20,000,000 In Design No
32 Palm & Hibiscus Landscaping 1,000,000 1,000,000 Construction Cost < $5M No
Each Sub-Project < $5M
34 Above Ground Improvements 43,000,000 43,000,000 Future No
35 Flamingo Park Neighborhood 20,000,000 20,000,000 Future No
36 Washington Ave Corridor 10,000,000 10,000,000 Future No
37 Sidewalk Improvements 13,000,000 13,000,000 Future No
38 Street Pavement 30,000,000 30,000,000 Future No
39 Seawalls and Shorelines 10,000,000 10,150,000 Future No
40 41 Street Corridor 15,000,000 15,000,000 Future No
41 La Gorce Neighborhood 14,000,000 14,000,000 Future No
Each Sub-Project < $5M
Each Sub-Project < $5M
44 North Shore Neighborhood 8,000,000 8,000,000 Future No
Policy created in February 2022
Construction Budget above $5M
5% (+) or (-) in cost due to Scope
25% increase in time per contract
46 Ocean Rescue North Beach Facility 5,000,000 5,000,000 Feasibility Study Underway No
47 License Plate Readers 1,575,674 1,575,674 Each Sub-Project < $5M No
TBD once final CM @ Risk budget is received
49 Public Safety Radio System 9,700,000 9,700,000 Project COMPLETE No
50 Cameras - Business Districts 825,000 825,000 Each Sub-Project < $5M No
51 Fire Station #3 10,000,000 10,000,000 Future No
52 LED Lighting in Parks 3,807,919 3,807,919 Each Sub-Project < $5M No
53 Security for Public Spaces 4,349,916 4,895,419 Each Sub-Project < $5M No
Construction Cost < $5M
55 Street Lighting Improvements 10,000,000 10,000,000 In Design No
56 Cameras - Beach Walk 693,219 693,219 Construction Cost < $5M No
57 Cameras - Entertainment District 1,660,000 1,660,000 Each Sub-Project < $5M No
TOTAL 456,019,603$ 562,706,833$ Public Safety 48 Police Headquarters FacilityInfrastructure 15,623,172
30,159,373 45 Fire Station #1
42 Traffic Calming 5,814,199
43 Protected Bicycle Lanes and Shared
Bike/Pedestrian Paths 8,919,500
6,187,720
6,100,000 No
No
On Hold
TBD
No
5,000,000
11,746,058
11,073,272
54 Marine Patrol Facility 2,700,000
5,000,000
2,733,575
No33 Street Tree Master Plan
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