Loading...
3 - Meeting Minutes_9-19-24 General Obligation Bond Oversight Committee City of Miami Beach MEETING MINUTES No. 50 September 19, 2024 Members Present: Karen Rivo, Chair Jack Glottmann, Vice-Chair Bruce Halpryn Dana Martorella Jason Koslowe Kate Mosley Laura Veitia Shari Gurkin Non-Voting Members Present: Members Absent: Dennis Scholl Non-Voting Members Absent: Adam Kravitz David Sexton Donald Goldberg Jack Benveniste Isaiah Mosley Elected Officials Present: Commissioner Alex Fernandez Staff and Guests Present: Thais Vieira, Liaison Maria Hernandez Colette Satchell Cristina Ortega Daniel Alzuri David Gomez David Martinez Elizabeth Estevez Elizabeth Miro Frank Garcia Giancarlo Pena Jani Singer Jason Greene Justin Karr Lindsey Precht Maria Cerna Ricardo Dopico Roland Aragunde Ainsworth Geddes Brandi Reddick David Phillips Jon Mogul Juan Jose Escalante Larry Shafer Susan Askew Ximena Caminos Kara Petrella Krystal Dobbins 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. I. Roll Call and Introductions G.O. Bond Oversight Committee Meeting Minutes No. 50 September 19, 2024 Page 2 of 11 (Refer to the Meeting Audio Recording on the G.O. Bond Website.) 0:05 Chair Karen Rivo called the meeting to order. New City Manager, Eric Carpenter, was introduced. He thanked the Committee’s time and effort. 1:54 Roll call was completed. II. Committee Business • Adoption of Meeting Minutes from 7-18-24 Motion: 6:35 Jason Koslowe made a motion to approve the minutes as presented. 6:37 Jack Glottmann seconded the motion. Motion passed. • Updated Org Chart (Refer to page 2 of the Agenda & Handouts Packet on the G.O. Bond website.) 5:32 Maria Hernandez presented the new Organizational Chart, reflecting recent changes in the Administration, including her new role as Interim Assistant City Manager, and Thais Vieira’s new role as Interim GO Bond Program Director. • Updated Motions Log 8:00 Chair Karen Rivo introduced the Motions Log and recommended that new Committee members go through the document to get a sense of the kind of the motions that have been made since 2019. 8:35 Thais Vieira added that at the last meeting the Committee made 5 motions, which have been passed on to the City Commission via Letters to Commission (“LTC”s). III. G.O. Bond Funding Update 10:49 Chair Karen Rivo stated she would like to know what happens to the GO Bonds funds when there are extensive changes to projects, such as Fire Station 1. Before hearing from CFO Jason Greene, she asked David Gomez to provide a quick update on the Fire Station 1 Project. 11:21 David Gomez reported that the countywide referendum authorizing the construction of the Fire Station project within Flamingo Park passed in August. On September 11, the Administration received direction from the City Commission to abandon the plan to build the new fire station at the South Shore Community Center site and try to accommodate the building within the Flamingo Park site without impacting the track and field. The consultants have started looking into it, and discussions are underway with the Fire Department and other user departments on programming changes that may be necessary. In approximately 30 days they will have a better idea if it is possible. G.O. Bond Oversight Committee Meeting Minutes No. 50 September 19, 2024 Page 3 of 11 12:45 Jason Koslowe asked if the deliverable from the consultant will include a cost estimate as well. David Gomez clarified that they are currently tasked with only determining whether or not it will fit. Cost estimates will be developed once they begin actual design work. 13:04 Commissioner Alex Fernandez advised that there is a cost impact, which is possibly close to $15 million. 13:15 David Gomez clarified that the $15 million number included moving the track and field. There will be an adjustment to that. Commission will have to approve an Amendment to the Design and Construction Management at Risk Agreements, and at that point staff will have a better idea of the actual cost impact. 13:50 Laura Veitia asked if approval from the Flamingo Park Neighborhood Association or any other organization is still required now that the referendum has passed. 14:00 Chair Karen Rivo answered it is her understanding that endorsement is a good thing, but approval was never required. The Associated never took an official position because they couldn’t reach an agreement. 14:17 Commissioner Alex Fernandez confirmed. The neighborhood was very divided. Certain residents valued the preservation of the South Shore Community Center while others valued the preservation of the open green space. 14:45 Chair Karen Rivo added for the record, that the GO Bond Oversight Committee has, over the years, made at least 4 motions requesting that the project move forward at the South Shore site based on economics, time, efficiency, and the Historic Preservation Board (HPB) opining it was a non-contributing structure. She asked (addressing CFO Jason Greene) what happens to the funds that have already been spent. 15:48 Jason Greene advised that it is an accounting treatment. It is about impairment review, where you are required to look at your assets on an annual basis, to see if they have been impaired for any reason. In this case, it is an intangible asset since it’s a design cost. We have spent $2.8 million; do we still have $2.8 million in value? If the answer is no, there will be a write down of those assets at some point as we go through this process in the next year or two. And when it comes to additional funding for the project, there was a specific amount set aside for this project, so any cost overruns associated with the changes will more than likely be made up with non-GO Bond dollars. There are only two possible sources of GO Bond dollars: (1) another public safety project that was completed and had cost savings (which is highly unlikely), and (2) earned interest. He explained that the bond dollars are invested and earn interest. Arbitrage didn't exist for about 15 years with low interest rates, but now that interest rates have been very high, he is seeing the arbitrage calculations (which are done by a 3rd party every year) requiring the City to send money back to the IRS. The City sets aside the estimated arbitrage liability on these GO Bond dollars. But there are funds available, possible within the range of a couple of G.O. Bond Oversight Committee Meeting Minutes No. 50 September 19, 2024 Page 4 of 11 hundred to a million dollars. The project will need a lot more than a million dollars, so the GO Bond Oversight Committee could have another vote about funding from available earned interest. And regarding the grant from the State, once it's defined that Flamingo Park is where the facility will be built, the City will have to get confirmation from the State that the grant is still valid, since it's a construction grant for a specific location. It has always been well publicized that there's a possibility that the grant could be lost, and the City would have to go through a reapplication process, but they are going to do everything possible to make sure it doesn't happen. 20:16 Bruce Halpryn summarized that the bottom line is that there is no impact to the GO Bond. 20:20 Jason Greene confirmed that there is no impact for the taxpayer from the perspective of the voter debt service millage. The voters voted for a specific dollar value. Since $2.5 million was spent on a project that will end up going somewhere else, the City doesn’t have the authority to issue another $2.5 million dollars. The GO Bond Program is static at a very specific number. He added that throughout his career, and over 25 years working in infrastructure, both in finance and previously as a civil engineer, he has had to sign certificates signing off on tens of millions of dollars in impairments on designs and master plans that never came to fruition. This is not an unusual thing, but obviously, you want to do your best to limit the use of public dollars. 21:32 Jason Koslowe asked if the Committee is authorized by Commission to vote to eliminate another public safety project and transfer the funds to the Fire Station project. Jason Greene answered legally he believes it is possible, but its is a much bigger philosophical discussion. 22:46 Jason Koslowe asked if the impairment to the design asset can be used against the income on the arbitrage. Jason Greene answered no, the City doesn’t pay taxes from that perspective. They just look at debt service and earned interest. IV. “Stop the Pause” Ordinance Overview (Refer to pages 3-5 of the Agenda & Handouts Packet on the G.O. Bond website.) 24:08 Chair Karen Rivo reported that she invited City Attorney Ricardo Dopico to speak about the “Stop the Pause” Ordinance recently passed by the City Commission. 24:50 Ricardo Dopico advised that this Ordinance was inspired by the terrible flooding that took place in June. Commissioner Fernandez wanted to do something to try to expedite projects, or at least prevent pausing critical infrastructure projects that are already well underway. The Ordinance that was just passed at the September 11 Commission meeting on second reading is based on the Resolution that he brought shortly after the flooding happened. A summary of the Ordinance was provided. 28:56 Commissioner Fernandez stated that one of one of the key things in this policy is making sure that no vendor can strong-arm the City. He wants to make sure that last minute political G.O. Bond Oversight Committee Meeting Minutes No. 50 September 19, 2024 Page 5 of 11 influences cannot stop critical infrastructure projects. After the recent floodings, residents have said they wish they had not opposed a project 5 years ago, or 10 years ago. And projects that have been delayed and are finally moving forward, have gone up in cost from 50 million dollars to 100 million dollars. He thinks it's a good policy. His goal is to protect these projects from the influence of politics. 31:40 David Sexton believes it is a great policy that will save the taxpayers a lot of money. He asked if it could be expanded to include other types of projects. 32:10 Chair Karen Rivo said she doesn’t see how the Fire Station Project is any different than the types of projects included in the Ordinance, and that is the discussion she would like to have with the Committee. 33:00 David Sexton asked if the Committee could consider a motion that says GO Bond related projects beyond a certain threshold of completion require a higher vote count to stop them. What happened with the Fire Station project probably would’ve happened anyway, but there are certainly other projects he would like to safeguard against delays that can cause project costs to double. 33:50 Jason Koslowe suggested that maybe the Office of Inspector General (OIG) and City Attorney’s Office could come back with a recommendation on how to scope this. 34:45 Commissioner Alex Fernandez said this is great feedback, and this is where the Committee plays such an important role, by being independent and seeing everything from the perspective of being efficient. As a policy maker, he looks at that that, in addition to what he can get across the finish line. What can realistically get adopted by the City Commission? And that is why this was written in a certain way, and it mentioned specific projects that he knew he could protect, and didn’t mention other types of projects that he felt could kill what would be otherwise really good policy. But there will be another “bite at the apple”, and the Committee’s feedback as to what should be included would be very helpful. 36:15 Chair Karen Rivo asked what the Committee’s wish in terms of potential next steps is. 36:25 David Sexton thinks it should be broader, but he feels this Committee’s purview is limited to GO Bond Projects. 36:45 Jason Koslowe believes they should make is as broad as possible, but he doesn’t want to overstep their bounds. He also doesn’t want to make a motion that is hollow, and that is why he was asking for feedback from OIG and City Attorney’s Office. 37:04 Jack Benveniste asked if there is anything in the City’s code that requires cost overruns over a certain dollar amount to be approved in advance. David Martinez answered that there is a process. G.O. Bond Oversight Committee Meeting Minutes No. 50 September 19, 2024 Page 6 of 11 37:38 Ricardo Dopico added that each construction project budget includes a contingency. If there is a cost overrun that is above the contingency, Commission approval is required. 38:28 Bruce Halpryn stated that in principle this is a great idea, but the devil is in the details, and he thinks it is premature for the Committee to make a recommendation until they can think about some of the things that might go wrong. 39:00 Jack Glottmann stated that the only criteria that would need to be added is perhaps a threshold of what the dollar amount of the project is, and what percentage of the funds have been spent. Discussion continued. Motion: 41:55 Jason Koslowe made a motion recommending to the City Commission the creation of a policy for GO Bond Projects mirroring the “Stop the Pause” Ordinance, as follows: (a) A 5/7th vote of the City Commission shall be required before the City Commission may take any action that has the effect of pausing, delaying, stopping or materially modifying a GO Bond Project having an estimated construction cost of $1,000,000 or more that is at least at 60% design. (b) A 6/7th vote of the City Commission shall be required before the City Commission may take any action that has the effect of pausing, delaying, stopping or materially modifying a GO Bond Project having an estimated construction cost of $1,000,000 or more that has obtained all permits and is shovel-ready. 42:46 Dana Martorella seconded the motion. Motion passed (7-1; Bruce Halpryn against). 43:05 Commissioner Alex Fernandez stated he likes the spirit of the motion and is willing to see it through the finish line. 2022 G.O. Bonds for Arts & Culture V. Arts & Culture Program General Status Update (Refer to pages 6-13 of the Agenda & Handouts Packet on the G.O. Bond website.) 45:21 Thais Vieira provided an overview of the progress made since last month. Approximately $800,000 has been spent, 2 additional subprojects are under construction (North Beach Oceanfront Center Painting and Bass Museum Fire Alarm), and 2 subprojects have moved from pending to an active status (Aquatic Sculpture Park Phase 2 and Art Deco Museum Expansion). Staff is anticipating construction commencements in 2024 to total $20 million. The quarterly breakdown of these commencements is found on page 11 of the Agenda & Handouts Packet. G.O. Bond Oversight Committee Meeting Minutes No. 50 September 19, 2024 Page 7 of 11 VI. 2022 Bonds Projects Update (Refer to pages 14-20 of the Agenda & Handouts Packet on the G.O. Bond website.) Miami City Ballet 48:40 Daniel Alzuri reported that on August 26 staff met with Miami City Ballet (MCB) representatives to discuss their plans for their administrative offices and studios, since their first design estimate came in over budget. MCB is revisiting the proposed design to focus and prioritize the community facing aspects of their operations. 49:32 Juan Jose Escalante, Miami City Ballet Executive Director, reported that they are redesigning and looking at how they can make the building a community center, something that is open 7 days a week. 50:32 Chair Karen Rivo asked how much over budget. Daniel Alzurri answered that the budget is $12 million, and their initial design came in at approximately $18 million. After some value engineering they were able to bring it down to approximately $16 million. Fillmore 50:58 Daniel Alzuri reported that at the September 11 meeting the City Commission adopted a Resolution taking the demolition of the Fillmore off the table, and accepted the Administration’s recommendation to engage with Live Nation to consider a more limited renovation option that would prioritize the main challenges with the existing facility. Byron Carlyle Theater 52:25 Daniel Alzuri reported that the kick-off meeting with the Consultant, AMS Research and Planning was held on Tuesday, September 17. The project is moving forward very thoughtfully. The team is currently studying other projects throughout the United States that involve public- private partnerships (P3), arts and housing, to try to collapse some of the learning curve to have the project delivered as soon as possible. 53:48 David Sexton is excited, as a community member, to be collaborating with the City and AMS on this project. North Shore Playground 54:35 Elizabeth Estevez reported that construction is commencing on September 23, and construction is expected to take approximately 4 months. The playground will include 2-5 & 5-12 age group play pieces, a custom tennis racket structure, a painted mural, drinking fountains with bottle fillers, benches and trash bins. 55:34 Chair Karen Rivo asked what the budget is. Thais Vieira clarified that $238,000 is the portion from the Arts & Culture Bond, but there are additional funds from the 2018 Bond as well. Bandshell Building Improvements G.O. Bond Oversight Committee Meeting Minutes No. 50 September 19, 2024 Page 8 of 11 56:14 David Gomez reported that the Consultant has developed a preliminary concept which was presented to Rhythm Foundation and the City. Staff had some concerns regarding logistics and how the fire lane and delivery area were being impacted by the design. They asked the designers to rethink their proposal. A revised concept is expected by the end of the month, and once approved, they will proceed to 30% design. 57:09 David Sexton reported that they (the Rhythm Foundation) are so excited about the redesign. The changes are going to make it a better project. 57:30 Chair Karen Rivo asked for a summary about the project scope. David Gomez replied that the project includes back of house improvements and restrooms. As previously designed, the delivery areas and the fire lane were negatively impacted. So staff challenged the designers to rethink how that works. All of the upgrades are being provided, but they are re-imagining what the back of house means, and some of that program is being relocated to face and address the street as part of an urban environment. Collins Park Rotunda 58:41 David Gomez reported that the interior demolition is almost complete and the contractor is moving forward with the construction of the foyer and restrooms outside the rotunda. During demolition they encountered significant water intrusion and damage to the structural system that holds the concrete panels to the building. A consultant has been retained to investigate this. At this point it is unknown what the impact will be to the construction progress. 59:32 Bruce Halpryn, reading from the project update sheet, asked if the removal of the existing artistic panels means removal, restoration and replacement. David Gomez confirmed. Aquatic Sculpture Park (Reefline) 1:00:35 Daniel Alzuri reported that first reimbursement request was processed last month, and the first advance request is currently under review. 1:00:59 Brandi Reddick added that upon receipt of the first advancement they will begin the 3D molding process for the cars, which will be used for fabrication. VII. Public Comment 1:02:13 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 21-29 of the Agenda & Handouts Packet on the G.O. Bond website.) G.O. Bond Oversight Committee Meeting Minutes No. 50 September 19, 2024 Page 9 of 11 1:02:48 Thais Vieira provided an overview of the progress made since last month. The Log Cabin is now an “active” project, bringing the total count of projects that are either active or complete to 43 (96% of all Tranche 1 projects). Total expenditures have increased from $84.9 to $90.4 million. As far as subprojects go, the only changes are the Log Cabin, as mentioned earlier, and the South Bay Club Baywalk that moved back to a planning phase. Staff is anticipating construction commencements in 2024 to total $22.7 million. The quarterly breakdown of these commencements is found on page 26 of the Agenda & Handouts Packet. Changes from last month have been indicated in red. IX. 2018 Bonds Project Update (Refer to pages 30-35 of the Agenda & Handouts Packet on the G.O. Bond website.) #45 Fire Station #1 1:06:09 David Gomez reported that the City has directed their design team to begin evaluating how to adjust the design to fit within the Flamingo Park site. 1:06:35 Laura Veitia asked if it is only the width of the building that is questionable, and how many feet need to be reduced. David Gomez answered it is approximately 15 feet, which will be very challenging. 1:07:23 Chair Karen Rivo asked what the timeline is. David Gomez answered approximately 30 days. #1 72nd Street Complex 1:08:11 David Gomez reported that 30% design package is expected in October, at which point they can begin the community outreach process and bring a presentation back to the GO Bond Oversight Committee. The submittal to the Historic Preservation Board (HPB) will follow. 60% design is expected in May/June of 2025, if everything proceeds according to the schedule. 1:08:46 Chair Karen Rivo asked why the project requires HPB approval. David Gomez advised that some waivers are required. 1:09:00 David Gomez added that they will also be requesting Commission approval of the design, once the Construction Management at Risk Firm (CMAR) has reviewed the documents to confirm if the project is within budget. 1:10:01 Laura Veitia said the community is looking forward to seeing the plans and the project moving forward. They hope that it will be a fresh start, and nothing like the Fire Station Project. 1:10:24 Chair Karen Rivo mentioned that at the last meeting someone brought up the issue of parking. She asked if that has been talked about. David Gomez answered that they have heard some suggestions that this facility should have 1,000 cars instead of 500. But that is not within G.O. Bond Oversight Committee Meeting Minutes No. 50 September 19, 2024 Page 10 of 11 the program or project budget. They are trying to move the project forward as fast as possible to get it done. 1:10:58 Laura Veitia stated that North Beach could use more parking and not just around the project site, but in Normandy Isle and other areas. But her understanding is that in order to add more parking spaces to the project, the pool would have to be eliminated. She believes one of the important things that need to be incorporated is programming where we want the City to go. She thinks the aquatic center brings a particular programming where you attract a crowd. You're emphasizing who you want to bring in: families, competitions, sports, day life. So, she is okay with the proposed 500 spaces, if that means they are getting the aquatic center. Discussion continued. Ocean Drive 1:12:35 David Gomez reported that Ocean Drive is undergoing its traffic study phase. They have started outreach meetings with some of the stakeholders along Ocean Drive. The Consultant is currently comprising the model for the 3 different options: maintaining a 2-way, converting to a 1-way, or pedestrianizing Ocean Drive. Once that's complete, comes the lengthy part which is presenting and meeting with the County and FDOT to get their approval on the 3 options, to then get direction from the City Commission on which option to proceed with. Presentation to the Commission is expected in late spring/ early summer, at which point they can proceed from there with the final design documents. Pedestrian Bridge 1:14:59 David Gomez reported that the developer is anticipating starting construction activities before the end of month. They are in the final stages of the right-of-way permit process. 1:15:53 Dana Martorella asked how disruptive the construction will be. David Gomez replied that the utility relocation work will not be as bad because only one lane at a time will be affected. But there will be a time when they are flying the structure for the bridge, that full night time closures will be required. Maurice Gibb Park 1:16:52 David Gomez reported that the contractor is almost at 100% completion on the soil remediation work and has completed the seawall portion of the project. This is important because a large portion of the funding for the seawall scope was a grant, which had an expiration date. The overall project is expected to be completed by February/March. Discussion continued. Police Headquarters 1:25:09 Frank Garcia reported that a preliminary Guaranteed Maximum Price (GMP) was received at the beginning of September. However, pre-construction services have since been placed on hold because of design changes that have been requested by Police Department G.O. Bond Oversight Committee Meeting Minutes No. 50 September 19, 2024 Page 11 of 11 Administration. The design team is currently evaluating their requests. It is anticipated that the redesign process will take approximately 3 months from the notice to proceed. 1:26:16 Maria Hernandez pointed out that the Real Time Intelligence Center is under construction. That portion of the scope of work was carved out of the main project because it was top priority for the Police Department. X. Community Outreach (Refer to pages 36 and 38 of the Agenda & Handouts Packet on the G.O. Bond website). 01:57:58 Thais Vieira advised that there is a public meeting scheduled for the 1st Street Project, which is a neighborhood improvement project that has $5 million from the GO Bond Above Ground Improvements Project. XI. Public Comment No one from the public asked to speak. XIII. Adjournment 1:30:28 Meeting adjourned.