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3 - Meeting Minutes_12-19-24 General Obligation Bond Oversight Committee City of Miami Beach MEETING MINUTES No. 52 December 19, 2024 Members Present: Karen Rivo, Chair Bruce Halpryn Jack Glottmann, Vice-Chair Jason Koslowe Kate Mosley Laura Veitia Shari Gurkin Non-Voting Members Present: Adam Kravitz Donald Goldberg Jack Benveniste Members Present (Not Part of Quorum) Dana Martorella Members Absent: N/A Non-Voting Members Absent: David Sexton Isaiah Mosley Staff and Guests Present: Thais Vieira, Liaison Amy Knowles Ayanna Dacosta-Earle Cristina Ortega Colette Satchell Daniel Alzuri David Gomez Digna Abello Elizabeth Miro Frank Garcia Heather Shaw Jani Singer Jason Greene Justin Karr Kevin Pulido Kristy Bada Maria Cerna Maria Hernandez Roland Aragunde Ron Mumaw Ainsworth Geddes Brandi Reddick David Phillips 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 (Refer to the Meeting Audio Recording on the G.O. Bond Website.) 0:35 Chair Karen Rivo called the meeting to order. Roll call was completed. G.O. Bond Oversight Committee Meeting Minutes No. 52 December 19, 2024 Page 2 of 8 II. Committee Business  Adoption of Meeting Minutes from 11-14-24 Motion: 1:43 Bruce Halpryn made a motion to approve the minutes as presented. Laura Veitia seconded the motion. Motion passed.  2025 Meeting Calendar (Refer to page 2 of the Agenda & Handouts Packet on the G.O. Bond website.) 2:10 Proposed dates for February and March were presented. Staff to confirm that there is no conflict with the proposed date for February with the Budget Advisory Committee Meeting.  Committee Members Farewell 7:00 Chair Karen Rivo thanked Laura Veitia and Jack Glottmann for their service over the last 6-7 years. III. Bond Accrued Interest Transfers (Refer to pages 3-4 of the Agenda & Handouts Packet on the G.O. Bond website.) 10:50 CFO Jason Greene reported that two appropriations of accrued interest from the General Obligation (G.O.) Bond dollars were made to support existing G.O. Bond projects. He explained that the City borrows funds which are then invested, and while interest rates were historically low for a long period, higher rates in recent years have caused accrued interest to accumulate significantly. As a result, the City began allocating these interest earnings to address budget shortfalls. Specifically, $1.3 million from the accrued interest in the 2018 Bond Infrastructure Category was allocated to the 23rd Street Project, and $2.6 million from the Arts & Culture Bond was allocated to the Collins Park Rotunda Project, through Capital Budget Amendments approved by the City Commission. 14:04 Chair Karen Rivo inquired whether these allocations had depleted the available interest. Jason Greene clarified that interest continues to accrue daily based on the invested amount. 15:08 Adam Kravitz asked if there had been discussions about using the accrued interest to pay down the bond debt, potentially lowering the tax burden associated with bond repayment. Jason Greene responded that he believes that was not permitted but would discuss with Bond Counsel. Discussion continued. 17:30 Chair Rivo asked Jason Greene where this issue could be pursued further. Greene explained that the Committee could consider a motion to allocate earned interest towards offsetting future G.O. Bond Oversight Committee Meeting Minutes No. 52 December 19, 2024 Page 3 of 8 debt service instead of applying it to capital projects. However, this would require legal exploration and would need to be reviewed by the City Commission. 18:10 Bruce Halpryn expressed agreement with Mr. Kravitz’s point, provided the funds were not being used for trivial expenses. However, he noted that he felt the funds were being appropriately applied to valuable projects, such as the Collins Park Rotunda. 18:34 Jack Glottmann added that he supported using the funds for capital projects, especially considering rising construction costs and inflation. He expressed confidence that future projects would likely exceed their original budgets, and therefore, these accrued interest dollars should be used to cover potential cost overruns. 19:12 Jason Greene clarified that not all earned interest is available for project overruns. Specifically with the 2018 Bonds, the City is actually earning more in interest than is paying in debt service. At the end of the year, a group of consultants conducts an analysis of the bank statements, and any differential requires the City to make a payment to the IRS. To prepare for this, a monthly set-aside for arbitrage liability is made to ensure there are sufficient funds to cover the tax bill when it arrives. Any interest earned beyond that set-aside, however, is available for allocation to other purposes. 20:04 Adam Kravitz proposed that there might be enough funds to cover partial debt service while still leaving money available for construction projects. The Commission should be given the choice to lower property taxes. 22:07 Chair Karen Rivo asked if any Committee members wanted to make a motion. No one volunteered. 2018 G.O. Bonds IV. Program General Status Update (Refer to pages 5-14 of the Agenda & Handouts Packet on the G.O. Bond website.) 26:06 Thais Vieira provided an overview of the progress made since last month. Total expenditures have increased from $95.4 to $98.1 million. She explained that the accrued interest funding that was added to the 23rd Street Improvements Project is reflected on the total Tranche 1 amount, which has been increased to $158.63 million. She also mentioned that a new slide has been added to the presentation to show the total expenditure amounts in each of the 2 tranches: $97.3 million has been spent in Tranche 1 and $760,000 in tranche 2. $18.6% of tranche 2 funding is either spent or encumbered. There are 2 additional completed subprojects, bringing the total count to 49. And finally, the total budget of projects that commenced construction in 2024 is $2.5 million. The Pedestrian Bridge, which has a $10 million budget, was expected to commence construction in the last quarter, is now expected to break ground in January of 2025. The quarterly breakdown of these commencements is found on page 11 of the Agenda & Handouts Packet. Changes from last month have been indicated in red. G.O. Bond Oversight Committee Meeting Minutes No. 52 December 19, 2024 Page 4 of 8 33:21 Chair Karen Rivo inquired if there is a way to see this information reflected over a longer range instead of just 1 year. This chart doesn’t tell you where the Pedestrian Bridge project started for example. Thais Vieira responded that staff can come up with a new version of the chart that will reflect this information. 36:52 Donald Goldberg inquired about the funding status of the Skate Park Project. Thais Vieira explained that the total G.O. Bond budget is $750,000. The design reached a 30% completion level at which point it was determined that it was underfunded. The budget gap has not been prioritized through the capital budget process due to more urgent needs. 37:45 Maria Hernandez further explained that during the design process, it was determined that a standalone restroom would be required by code, which contributed to the project going over budget. She also mentioned that the West Lots had been recently discussed in a City Committee meeting. 39:27 Thais Vieira added that the Land Use and Sustainability Committee (LUSC) recommended a community engagement process with three components: a survey, door-to-door outreach, and a public meeting. The entire process is expected to take approximately three months, with the administration planning to return to the March or April meeting with an update. 40:21 Laura Veitia asked whether the Dover Kohl plan was being used or shared with the community. Maria Hernandez noted that she didn’t hear the Dover Kohl plan specifically mentioned but believed that relevant information would be included in the memorandum staff had prepared for the LUSC meeting. 41:26 Laura Veitia emphasized that the Dover Kohl plan should be shared with the community, as much of the community engagement was already completed as part of that study. 42:50 Isaiah Mosley asked about the status of the Pedestrian Bridge Project. David Gomez reported that they are planning to break ground early next year, on January 13. 44:00 Chair Karen Rivo asked about the construction timeline. David Gomez clarified that the notice to proceed will be issued for utility relocation work, which is expected to take around six months. The construction of the actual bridge is estimated to take an additional twelve months after that. 44:22 Isaiah Mosley asked whether both sidewalks on the bridge would be closed simultaneously, given that FPL is working on the north side. David Gomez clarified that there will be a lane closure on the south side, but the south sidewalk will remain open. 44:51 Donald Goldberg asked if the lane closure would impact the McArthur Causeway. David Gomez confirmed that it would be an eastbound lane closure. G.O. Bond Oversight Committee Meeting Minutes No. 52 December 19, 2024 Page 5 of 8 Discussion continued. V. 2018 Bonds Project Update (Refer to pages 15-19 of the Agenda & Handouts Packet on the G.O. Bond website.) #1 72nd Street Complex 47:20 David Gomez reported that, thanks to input from residents in North Beach, staff received clear direction from the City Commission to move forward with the project, including adding an additional parking level. Funding for this expansion will be addressed through the Capital Budget Process. 48:00 Chair Karen Rivo inquired about the project timeline. David Gomez explained that an amendment to the design agreement will be necessary to accommodate the additional parking level. Community presentations and meetings are scheduled for January, and the feedback received will be presented to the City Commission. The presentation to the Design Review Board (DRB) is expected in May of the upcoming year. From there, the design team will proceed with the construction documents phase, with construction anticipated to begin by the end of 2026. 49:13 Isaiah Mosley asked about the cost of the movable swimming pool floor. David Gomez answered that it is approximately $500,000, explaining that the high cost is justified by the flexibility it offers for various programming. 50:24 Laura Veitia expressed support for the addition of more parking spaces and asked if a parking study could be conducted to ensure the total number of spaces would be sufficient. David Gomez clarified that the proposed 500 parking spaces were based on a parking study completed in 2019. The study considered all planned developments in the area, existing businesses, and other factors, and it recommended 400 spaces for maximum occupancy. 52:34 Kate Mosley shared her thoughts on the building design, suggesting it should have a more contemporary look. She asked if the design would require approval from an architectural review board. David Gomez confirmed that the design would need approval from the Design Review Board. He also noted that with a $70 million budget, the design must be affordable while accommodating the required program, which means the current design is in line with the available budget. 54:30 Chair Karen Rivo asked when the public meetings would take place. David Gomez confirmed that they are scheduled for January. 54:58 Jason Koslowe asked for more details on the schedule. David Gomez responded that DRB approval is expected in May, with 90% completion of construction documents anticipated by January 2026. Construction is expected to begin by the end of 2026. #33 Tree Planting G.O. Bond Oversight Committee Meeting Minutes No. 52 December 19, 2024 Page 6 of 8 56:38 Amy Knowles presented the Beachwalk Tree Planting Project, which aims to plant approximately 600 trees along the beachwalk to provide shade and enhance the amenity corridor. The project is partially funded by grants. Extensive community outreach was conducted over the summer, including sending 16,000 postcards to residents along the beachwalk, sharing a tentative tree planting map electronically for people to view where the trees would be placed, and giving presentations to neighborhood associations. Some opposition was raised by property owners concerned about viewshed, prompting a reevaluation of the project’s approach. Staff will meet with property owners along the beachwalk to present the plans and work with them to preserve views while still providing shade for beachwalk users. The goal is to plant the trees next summer during the warm growing season for optimal survival. 1:01:00 Bruce Halpryn expressed appreciation for the project but raised concerns about the removal of palm trees. Amy Knowles clarified that the project does not involve removing any palm trees; rather, it aims to add additional tree canopy. 1:02:39 Laura Veitia, as a resident, expressed appreciation for the added shade along the beachwalk, noting that it would also help mitigate the City’s heat index. 1:05:34 Donald Goldberg acknowledged the appeal of palm trees but pointed out that they provide little shade and no real benefit in that regard. He emphasized that shade trees would greatly benefit all users of the beachwalk and argued that opposition from a small group of condominium owners should not derail the overall project. 1:06:06 Amy Knowles explained that this is ultimately a public policy decision. While there have been concerns from some residents, she noted that only about 14 condominiums have been vocally opposed. Staff received comments from 48 condos, with half of those strongly supporting the project, and around 25% simply had questions. She added that if condo associations decide against having trees, the City will respect their decision and not force the planting. The discussion continued. Motion: 1:10:29 Laura Veitia made a motion in support of the Beachwalk Tree Planting Project moving forward and on schedule. Shari Gurkin seconded the motion. Motion passed. #45 Fire Station #1 01:15:15 David Gomez reported that at the last meeting, the City Commission directed the Administration to move forward with the project at the Flamingo Park site. 01:15:58 Laura Veitia asked if the building could be accommodated on the site without relocating the track. David Gomez confirmed that the building would fit but would need to be redesigned. 01:16:18 Chair Karen Rivo inquired about the additional cost. David Gomez estimated the added cost would be between $15 million and $17 million. This increase includes the relocation of the G.O. Bond Oversight Committee Meeting Minutes No. 52 December 19, 2024 Page 7 of 8 existing building housing restrooms and locker rooms, which conflicts with the proposed location for the Fire Station. The program will be moved to an area beneath the existing bleachers. 01:17:05 Jason Koslowe requested that staff inform both the Committee and the Commission of the total cost associated with restarting the project at the Flamingo Park site. David Gomez noted that it would take some time for staff to provide a definitive figure. 01:17:48 Jason Koslowe emphasized that each time this project is discussed at the Commission, the cost implications of the decision to restart at Flamingo Park should be clearly reiterated. The discussion continued. #15 Bayshore Park 01:21:30 David Gomez reported that the Bayshore Park project is progressing smoothly and is expected to be completed by next fall. He walked the Committee through the latest aerial images of the project. 01:25:00 Chair Karen Rivo asked if there would be access to the park from the Scott Rakow Youth Center. David Gomez confirmed that there will be controlled access. #40 41st Street Corridor Improvements 01:26:34 David Gomez reported that at their last meeting, the City Commission approved the Administration’s recommendations to move forward with the added scope, while retaining the string lighting. Staff is moving forward accordingly. VI. Public Comment No one from the public requested to speak. 2022 G.O. Bonds for Arts & Culture VII. Arts & Culture Program General Status Update (Refer to pages 20-26 of the Agenda & Handouts Packet on the G.O. Bond website.) 1:28:40 Thais Vieira reported that the program has spent almost $2 million since last month, bringing the total to $11.3 million. 14% of all funds either spent or allocated. The total budget of projects that commenced construction in 2024 is $8.9 million. The quarterly breakdown of these commencements is found on page 24 of the Agenda & Handouts Packet. Changes from last month have been indicated in red. She advised that the projects that were expected to commence construction in the fourth quarter of 2024 are now expected to commence in the first quarter of 2025. VIII. 2022 Bonds Projects Update (Refer to pages 27-32 of the Agenda & Handouts Packet on the G.O. Bond website.) G.O. Bond Oversight Committee Meeting Minutes No. 52 December 19, 2024 Page 8 of 8 ACGO #10 Byron Carlyle Theater 24:03 Daniel Alzuri reported that the administration is expediting the RFP process. The selection of the managing partner and development partner will be done in tandem as opposed to sequentially. ACGO #5 Colony Theater 25:02 Daniel Alzuri reported that the first grant advance request (Technology Improvements subproject) of $550,000 has been reconciled, and staff is now reviewing their second advance request of $447,000. The capital renewal and replacement subprojects, which are being managed by the City, are in different stages of completion: electrical upgrades have been completed and FF&E upgrades have been partially completed. ACGO #1 Bass Museum Addition 1:32:10 David Gomez reported that the feasibility study is nearing completion and should be finalized by April. The board of directors has been presented with two options: one that aligns with the budget, and another that includes additional elements requested by the board, with the understanding that they will need to find additional funding to cover the cost difference. Once the feasibility study is finalized, staff will begin the process of hiring a designer and construction manager. 01:32:44 Jason Koslowe inquired about the location of the addition. David Gomez advised that it will be situated on the southwest corner, where the existing parking lot is located. IX. Community Outreach (Refer to pages 33-35 of the Agenda & Handouts Packet on the G.O. Bond website). 01:29:18 Thais Vieira went over the list of GO Bond related items to be heard at the Finance and Economic Resiliency Committee on December 20 and provided an update on the items heard at the December 11 City Commission meeting. X. Public Comment No one from the public requested to speak. XI. Adjournment 1:45:00 Meeting adjourned.