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OIG No. 25-06 Inspector General G.O. Bond Quarterly Report Joseph M. Centorino, Inspector General Page 1 of 8 TO: Honorable Mayor and Members of the City Commission FROM: Joseph Centorino, Inspector General DATE: April 10, 2025 RE: Inspector General G.O. Bond Quarterly Report OIG No.: 25-06 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. Financial Status The current financial status of the 2018 G.O. Bond program as of this report is: PARKS INFRASTRUCTURE PUBLIC SAFETY TOTAL SPENT $53,747,186 $25,936,640 $22,352,968 $102,009,794 ENCUMBERED $22,683,144 $6,598,015 $7,327,700 $36,608,859 AVAILABLE $14,768,715 $16,968,751 $8,498,355 $40,235,821 FUTURE $81,918,355 $146,496,594 $34,815,900 $263,230,829 TOTAL $173,117,380 $196,000,000 $72,967,923 $442,085,303 Docusign Envelope ID: 25FFE2E3-3D6A-4336-85D0-163CF82320B5 Page 2 of 8 Projects Under Construction PROJECT BUDGET MONEY SPENT ENCUMBERED AVAILABLE MAURICE GIBB PARK (RIBBON CUTTING ON 4/3/2025) $5,251,274 $4,437,932 $809,514 $3,826 FLAMINGO PARK LODGE $1,051,674 $161,833 $877,301 $12,539 PAR 3/BAYSHORE PARK $20,166,104 $20,165,144 0 $959 PEDESTRIAN BRIDGE $8,999,999 $1,838,409 $7,160,982 $606 TREE PLANTING (TRANCHE 1) $2,770,000 $2,520,573 $12,774 $236,652 SOUNDSCAPE RESTROOMS/STORAGE $827,001 $453,651 $373,348 0 COLLINS AVE/WASHINGTON AVE CAMERAS $665,154 $513,452 $91,702 $60,000 OTHER READERS CITYWIDE $1,390,000 $893,716 $167,685 $328,598 REAL TIME INTELLIGENCE CENTER $701,460 $177,808 $514,794 $8,856 SEAWALLS AND SHORELINES (TRANCHE 1) $4,999,998 $4,601,925 $389,307 $8,765 STREETS (TRANCHE 2) $8,600,000 $627,072 $700,380 $7,272,546 SIDEWALKS (TRANCHE 2) $3,500,000 $480,210 $1,025,049 $1,994,740 SEAWALLS AND SHORELINES (TRANCHE 2) $4,999,999 $43,467 $1,604,849 $3,351,683 Oversight Committee Motions The Oversight Committee made one motion this quarter related to G.O. Bond Project #33, Tree Planting, after residents objected to the planting by the City in certain areas along the beachwalk. The City has established canopy coverage in some beachwalk sections. This project intends to extend canopy coverage to other selected beachwalk areas. Additionally, the project will contribute to the City’s goal of increasing the tree canopy from 17% to 22%. The project is funded by both a $1 million United States Forest Service (USFS) Urban and Community Forest Grant and the 2018 G.O. Bond to plant approximately 600 trees along the entire seven (7) mile stretch of beachwalk. The USFS grant application was approved by Commission in June of 2023 and the grant was awarded to the City in September of 2023. Subsequently, the City Commission approved the purchasing of trees for the reforestation project in July of 2024. For the initial project planning, the proposal was $426,582.27 funded by the federal grant, which the City received, and the $593,472.93 balance funded by G.O. Bond ($2,770,000 in Tranche 1 and $2,230,000 in Tranche 2). Recently, the grant was put on hold as a result of policy directives at the federal level and then reinstated when furloughed employees returned to work. The City has been advised that uncertainty remains regarding the distribution of funds. (The Grants Management Division Director has advised that, at this time, no other G.O. Bond projects have been affected by changes in federal policy related to grant appropriations. The only other project Docusign Envelope ID: 25FFE2E3-3D6A-4336-85D0-163CF82320B5 Page 3 of 8 receiving a federal grant is the Scott Rakow Wind Mitigation/Impact Glass project. This is from FEMA, Hazard Mitigation Grant Program in the amount of $1,037,215.) The City has been meeting with residents who live along the beachwalk after many individuals raised objections to the tree planting due to viewshed impairments. The following chart, provided by the Assistant Director of Environment and Sustainability Department, shows the current status of the outreach that is taking place. In addition to the properties identified below, there are 20 additional properties that have been unresponsive to the City. At this time, the tree project will need to be procured again based on community feedback. The Oversight Committee voted in support of the beachwalk tree planting project moving forward and on schedule. The motion was provided to the Commission via LTC 560-2024. Dead Trees The OIG received complaints from residents that many of the trees planted in the North Beach Oceanside Park and along the dunes in the North Beach area have died. While this is not a suitable subject for investigation by this office, the OIG met with staff from the Office of Capital Improvement Projects (CIP) as well as Environment and Sustainability to address some of the concerns raised by residents in its oversight capacity of the G.O. Bond. NO TREES 4 345 Ocean Drive Continuum 57 Ocean Condominium Mei Condominium 4 Carriage Club South Green Diamond Condominium Blue Diamond Condominiums Royal Club Atlantic Condominium WANTED TREES- PROPOSED 5 OR MORE TREES OR PALMS BASED ON PRIMARY VIEWSHEDS AND/OR AVAIALBLE SPACE 20 Oceanfront Plaza Condominium The Edition Hotel The Edition Residents Mosiac on Miami Beach Caribbean Condominium La Tour Condominium Mimosa Condomiunm L'Excellence Condominium Corinthian Condominium Fountainbleu Hotel Triton Towers Condominium Fountainbleu Residenences Soho Beach Hotel Faena Residences Carriage House Palms Hotel and Spa Club Atlantis Condominium Le Trianon Condominium La Gorce Palace Condominium Carriage Club North Wanted as many as possible No viewsheds to be concerned Perserve existing viewsheds Wanted as many as possible Almost entire length of property Perserve pool viewsheds Almost entire length of property. Maintain views of oceanfront buildings from third floor Limited available space Perserve gym building viewsheds Avoid adding trees in front of the center of property Upcoming renovations. Does not want ocean view blocked. Palms at edges and dunes crossover only Wanted as many as possible Maintain middle of the property's view unobstructed. Wants their trees installed as soons as possible Both properties- 4 replace as in-fill + 1 new total divided by two properties is less than 5 Both properties- 4 replace as in-fill + 1 new total divided by two properties is less than 5 Property viewsheds to be maintained- few on edges Does not want middle ocean view blocked from beach access gate Does not want middle ocean view blocked from beach access gate Initial Oppostion- viewshed blocked Initial Oppostion- viewshed blocked New Building- pool deck designed around existing dunes vegetation Worked with board for possible sites but all blocked viewsheds of lower properties WANTED TREES- PROPOSED LESS THAN 5 TREES OR PALMS BASED ON PRIMARY VIEWSHEDS AND/OR AVAILABLE SPACE Low level pool and full ocean view Docusign Envelope ID: 25FFE2E3-3D6A-4336-85D0-163CF82320B5 Page 4 of 8 According to the Assistant Director of Environment and Sustainability, all installed trees within the former North Beach Oceanside Park project should have been selected by the Landscape Architect based on available resources indicating salt tolerance, adaptive to coastal environments, and available in the marketplace. CIP confirmed that the trees that were selected and planted were salt tolerant species. The City’s Urban Forestry team approved the selection and issued permit #2019-0496. Prior to planting, all of the trees were inspected by the Urban Forestry team and during installation the Urban Forestry team inspected and identified trees not meeting specifications. The tree installation commenced in February 2022 and was completed in April 2022 and documents show that the watering schedule was adhered to by the contractor. CIP provided the OIG with pictures of a functioning irrigation system during the construction phase. Prior to substantial completion, the contractor was required to remove all existing invasive exotic vegetation from the dunes area. A review of field reports dated 2/22/2022, 2/25/2022 and 3/10/2022 show that this work was done. There was a discrepancy between the fertilizer that was contracted for and the product that was actually used. It is not known at this time whether there was an impact as a result of this substitution. On May 11, 2022, the Urban Forestry team advised that, after walking the project, it did not pass installation inspection. Two of the reasons given were that: 1. There were several trees along the Boardwalk section that were good trees but would fail inspection as a true Florida Grade #1 upon closer scrutiny and be labeled as Florida Grade #2. Urban Forestry agreed to have the trees remain in place as long as the trees had structural pruning correcting some of the minor defects in structure under the supervision of a certified arborist prior to the one-year anniversary. 2. Seven other trees failed inspection for unknown reasons and required replacement. The project reached substantial completion in May 2022 at which time CIP transferred the maintenance responsibilities to the Parks and Recreation Department (the west side of the beachwalk) and the Greenspace Division of Public Works (the east side of the beachwalk). On June 1, 2022, the Urban Forester verified that the items listed on the failed inspection report had been complied with and issued a “pass” for the project. As has been previously reported to the Commission, the trees were alive in May 2023, which marked the expiration of the one-year warranty period. The cost of the trees was $195,998.24. The conclusion of the Environment and Sustainability Assistant Director is the following: The dunes' environment is a harsh environment with the combination of heavy winds with salt spray, sand particle movement, high temperatures, and only seasonal natural rainfall to provide water to the trees. The trees that have not fared as well adjacent to NBOSP include pigeon plums, calophyllums, gumbo limbos, and green buttonwoods. Over time, these species have shown to not withstand the direct constant pressure of salt, wind, and temperatures without the protection of the large seagrapes seen throughout South Florida coastlines. The typical tree conditions are green healthy growth below the top height of the adjacent protective seagrapes and no growth above the top of the seagrapes. Also, proximity to the sand makes a difference-- the farther away from dunes equates to healthier trees overall. The rainy summer season brings regenerative growth to the trees but in many cases does not address their overall Docusign Envelope ID: 25FFE2E3-3D6A-4336-85D0-163CF82320B5 Page 5 of 8 decline. Trees like silver buttonwoods and seagrapes have mostly tolerated the above-noted conditions well. The City continues to re-evaluate the approximately 180 trees that have more than 70% leaf loss/defoliation. There could be a rebound as the rainy season approaches. Project Update Marine Patrol Facility The Marine Patrol Facility is currently in design. The original project budget was $2.7 million and the original construction budget was $1.6 million. After the Design Review Board made its recommendations, the construction budget increased to $4.6 million. In June 2024, M.C. Harry & Associates, the A/E Consultant, provided the City with 90% construction documents. The 90% construction documents increased the estimated construction budget to $9,314,212 making the total budget estimate $13,433,792. The amount budgeted for the project is $8,800,056. The 90% construction documents have been submitted for permits by Miami-Dade County DERM, the City Building Department, FDEP and Army Corps. Given the latest estimates submitted by the A/E consultant and the independent cost estimator, the permitting is on pause. Currently, staff is analyzing value engineering strategies and cost reduction options to reduce the budget shortfall and move the project forward. The project is scheduled to begin construction in the third quarter of 2025. Scope Changes North Beach Oceanfront Center Due to unforeseen structural issues, additional scope was added. The Commission approved an accrued interest appropriation for the structural unforeseen issues that were discovered late last year. Flamingo Park Lodge The existing roof and floor structures were found to be severely damaged by termites, compromising the structural integrity of both the roof and flooring. As a result, a complete replacement of the wooden roof structure and flooring became necessary. This depleted the majority of the owner's contingency funds. At the March 19, 2025, Commission meeting, item C7C was approved to increase the contract time by 272 calendar days and to replenish the project contingency in the amount of $65,000 to address the structural issues. 41st Street Corridor The budget for this project is $15,000,000. The estimated construction budget is $10,600,000. This quarter, at 60% design, additional scope was added to the project by the Commission that has increased the budget to over $20,000,000. Previously, the design review board recommended light fixtures to illuminate the tree canopies and trunks along the corridor. The integration of new tree lighting and the required infrastructure was not included in the AECOM Conceptual Design, the GOB Project scope, or the project budget. The cost for this additional scope is $1,700,000. Docusign Envelope ID: 25FFE2E3-3D6A-4336-85D0-163CF82320B5 Page 6 of 8 The Design Review board also recommended the replacement of City-owned pedestrian level acorn light fixtures and poles with more contemporary fixtures. This adds an additional $1,200,000 to the project. (The OIG commends staff for recommending against this change in scope identifying it as a waste of G.O. Bond funds because the fixtures were renovated by the Public Works Department in 2020.) Finally, infrastructure for license plate readers ($807,000) was also added. There are currently no cameras or security facilities within the 41st Street corridor. The Police Department has requested that new infrastructure with new service points and several poles be provided as for future License Plate Reader (LPR) installations. FDOT has indicated, through the coordination of the scope of work, that separate poles are required for mounting LPRs within FDOT’s right of way. At the December 11, 2024, Commission meeting, the additional scope was approved in its entirety. The scope changes will delay the project’s schedule and add an additional $5,000,000 to the project’s budget. At its September 2024 meeting, the G.O. Bond Oversight Committee considered the additional scope but did not have an opinion since an expanded scope may not be funded with GOB dollars. At the same meeting, the Oversight Committee made a motion that was transmitted to the Commission via LTC 427-2024 recommending the creation of a policy for G.O. Bond projects to mirror the “Stop the Pause” Ordinance. Specifically, the Committee sought to require a 5/7 vote of the City Commission before the Commission could take any action that has the effect of pausing, delaying, stopping or materially modifying a G.O. Bond project having an estimated construction cost of $1,000,000 or more and is at least at 60% design. The policy would have applied to this project had the Committee’s recommendation been accepted. The Commission, to date, has not applied the Stop the Pause ordinance to G.O. Bond projects. On January 17, 2025, the City requested an additional $5,000,000 for the project as part of the 2026 budget process. The estimated cost of the project is now $20,365,479. On February 14, 2025, funding for the additional design was approved by the Commission as a part of the 4th capital budget amendment in the amount of $391,278,000. The fiscal year 2026 request has been reduced by this amount. 72nd Street Community Complex The project is at 30% design with the 60% design expected in July 2025. The total budget for the project is $101,242,327. Of the $10,800,000 from the G.O. Bond, $3,832,908 has been spent and $5,326,864 has been encumbered. Approximately $5,000,000 has been spent in design services. At the December 11th Commission meeting, the Commission approved additional scope for the project, adding a new level of parking in an amount not to exceed $4,5000,000. A budget request has been submitted for the fiscal year 2026 budget process. Delayed Construction Two projects, Marjory Stoneman Douglas Park Lighting and the 23rd St. Streetscape, were scheduled to commence this quarter but have been rescheduled for commencement in the second quarter. The Marjory Stoneman Douglas Park project’s original scope included updated playground equipment other improvements to include sidewalk renovations and turtle friendly lighting. All parts of the project were completed except for the lighting. Last quarter, it was reported that the project had insufficient funding to meet the original scope of the lighting project and, Docusign Envelope ID: 25FFE2E3-3D6A-4336-85D0-163CF82320B5 Page 7 of 8 consequently, the scope was being revised to work within budget. This quarter, the project manager from the Parks Department has advised that the scope has, in fact, been reduced to only replace the light fixtures in the park. The fixtures have been ordered and will be installed next quarter. With respect to the 23rd Street Streetscape Project, the Invitation to Bid (1TB) for the selection of a contractor was issued on March 20, 2023. Two bids were received, one in the amount of $4,020,791 and the other in the amount of $3,407.000. The bids were found to be non-responsive. The City initiated the Job Order Contracting (JOC) process and on September 25, 2023, the JOC contractor submitted a Cost Proposal in the total amount of $3,450,511. This proposal was reviewed by staff and the project Engineer of Record and rejected. The selection of a contractor via the JOC contract was unsuccessful. Subsequently, on June 10, 2024, Invitation-to-Bid (ITB 2024-419-ND) was issued and on July 26, 2024, three (3) bids were received. The lowest responsive, responsible bidder submitted a proposal in the total amount of $3,392,956. The available construction budget was $1,910,802.00. Consequently, the City recommended and the Commission approved the transfer of $1,282,154 from accrued interest income within the infrastructure category to the project. A Notice to proceed was issued in January 2025 and the City is currently reviewing documents and drawings in response to the Notice to Proceed. Funding Shortfalls The OIG requested from the Program Director the following list of projects that are facing budget shortfalls: Project Current Estimated Short-fall Managing Dept Notes 2018 BOND 41st St Corridor 4,740,600 CIP Additional scope as a result of DRB, community input and Commission direction. 72nd St Complex 4,499,351 CIP Additional scope requested by City Commission - additional parking level. Baywalk Bay Garden Manor Link 1,517,034 CIP Based on feasibility study/conceptual design estimates Bayview Link 4,132,680 CIP Based on feasibility study/conceptual design estimates South Bay Link 15,305,88 7 CIP Based on feasibility study/conceptual design estimates Log Cabin 1,047,279 CIP Based on recent comparable cost/sf Flamingo Park (Baseball Field) 5,252,673 CIP Insufficient funding originally allocated for the completion of all remaining master plan elements / high current construction costs Marine Patrol Facility 4,633,735 CIP Based on latest estimates from A/E and independent cost estimator. V/E and cost reduction options are being considered Skate Park 2,535,284 Parks Based on 30% design documents Police HQ TBD FAC Redesign based on new program requirements underway Docusign Envelope ID: 25FFE2E3-3D6A-4336-85D0-163CF82320B5 Page 8 of 8 Log Cabin Project The OIG is aware of complaints and concerns expressed by residents regarding the delays in the City’s plans to utilize the stored remnants of the log cabin formerly located in the North Beach Oceanside Park to construct a new log cabin structure in that vicinity. A review of the project conducted by the OIG will be provided to the City and Oversight Committee in a separate report. 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 Docusign Envelope ID: 25FFE2E3-3D6A-4336-85D0-163CF82320B5 4/11/2025 | 2:33 PM EDT