Loading...
20110927 Bookmarked OCRMIAMIBEACH Special City Commission Meeting City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive September 27,201 1 Mayor Matti Herrera Bower Vice-Mayor Edward L. Tobin Commissioner Jorge R. Exposito Commissioner Michael GCjngora Commissioner Jerry Libbin Commissioner Deede Weithorn Commissioner Jonah Wolfson City Manager Jorge M. Gonzalez City Attorney Jose Smith City Clerk Robert E. Parcher Visit us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings. ATTENTION ALL LOBBYISTS Chapter 2, Article VII, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the registration of all lobbyists with the City Clerk prior to engaging in any lobbying activity with the City Commission, any City Board or Committee, or any personnel as defined in the subject Code sections. Copies of the City Code sections on lobbyists laws are available in the City Clerk's office. Questions regarding the provisions of the Ordinance should be directed to the Office of the City Attorney. Special note: In order to ensure adequate public consideration, if necessaty, the Mayor and City Commission may move any agenda item to the alternate meeting date which will only be held if needed. In addition, the Mayor and City Commission may, at their discretion, adjourn the Commission Meeting without reaching all agenda items. Call to Order - 4:00 p.m. Inspirational Message, Pledge of Allegiance Requests for Additions, Withdrawals, and Deferrals Presentations and Awards PA Presentations and Awards Renular Aaenda R2 Competitive Bid Reports R5 Ordinances Consent Anenda R7 Resolutions C2 Competitive Bid Reports R9 New Business and Commission C4 Commission Committee Assignments R10 City Attorney Reports C6 Commission Committee Reports C7 Resolutions Re~orts and Informational Items We are committed to providing excellent public semice and safety to all who live, work, and play in our vibrant, tropical, historic community. 1 Commission Agenda, September 27,201 1 CONSENT AGENDA Action: Moved: Seconded: Vote: C7 - Resolutions lndependent Contractor Agreements 1. A Resolution Authorizing The City Manager, On Behalf Of The City, To Enter lnto Certain lndependent Contractor Agreements For Professional And Other Services, As Required And As The City Manager Deems In The Best Interest Of The City, Subject To And Contingent Upon The Following Parameters: 1) The City Manager Shall Only Enter lnto Contracts For Such Professional And Other Services To Provide Services AndlOr Work Related To Vacant Budgeted Positions, As Identified In The City's Approved Fiscal Year (FY) 201 112012 Annual Budget; 2) The Amount Of The Fee AndlOr Other Compensation To Be Paid By The City Under Such Contract(s) Shall Not Exceed The Authorized Amount For The Respective PositionlClassification, As Set Forth, Respectively, In The City's Classified Or Unclassified Salary Ordinance (As The Case May Be); 3) The Term Of Any lndependent Contractor . Agreement Authorized Herein Shall Not Extend Beyond The End Of FY 201112012 (September 30, 2012); 4) At A Minimum, The City Manager Shall Require That Any lndependent Contractor Agreement Entered lnto Pursuant To This Resolution Shall Utilize The City's Standard Form For lndependent Contractors (As Attached To This Resolution), Provided That The City Manager May lncorporate Additional Terms, Which May Be More Stringent Than The City's Form, But Not More Lenient; And 5) Providing That The Authority Granted To The City Manager Pursuant To This Resolution Shall Be Brought To The City Commission For Renewal Annually As Part Of The Annual Operating Budget Approvals. 2. A Resolution Authorizing The City Manager, On Behalf Of The City, To Enter lnto Certain lndependent Contractor Agreements For The Following Services, As Required And As The City Manager Deems In The Best lnterest Of The City: Dance Instruction; Ice Skating Instruction; Athletics InstructionlCoaching; Aerobics Instruction; Fitness Instruction; Literacy, Math And SAT Tutoring; Computer (IT) Services; School Liaison Officers; Resident Project Representatives (RPR); Community Information Services; Construction Cost Estimating1 Consulting Services; Television Production Services; Videographer Services; Graphic Designer Services; Program Monitor Services; Cost Allocation Service; Job Audits; Step Ill Disciplinary Grievance Hearing Officer And Auditors; Provided Further That The City Manager Shall Be Authorized To Negotiate, Enter Into, And Execute The Aforestated Agreements Subject To The Following Minimum Parameters: 1) The Amount Of The Fee And/or Other Compensation To Be Paid By The City Under Such Agreement(s) Shall Not Exceed The Authorized Amount For The Respective Services, As Set Forth In The City's Approved Fiscal Year (FY) 201 112012 Annual Budget; 2) The Term Of Any Services Agreement Authorized Herein Shall Not Extend Beyond The End Of FY 201 112012 (September 30,2012); 3) At A Minimum, The City Manager Shall Require That Any Agreement Entered lnto Pursuant To This Resolution Shall Utilize The City's Standard Form lndependent Contractor Agreement (As Attached To This Resolution), Provided That The City Manager May lncorporate Additional Terms, Which May Be More Stringent Than The City's Form, But Not More Lenient; And 4) Providing That The Authority Granted To The City Manager Pursuant To This Resolution Shall Be Brought To The City Commission For Renewal Annually As Part Of The Annual Operating Budget Approvals. (Human Resources) Commission Agenda, September 27,201 1 C7 - Resolutions (Continued) C7B A Resolution Adopting And Appropriating Funds For The Fiscal Year 201 1112 Police Special Revenue Account Budget In The Amount Of $50,000 For The Purchase Of Those ltems Set Forth In Exhibit "A," And Such Account Funded By Unclaimed Evidence Currently Held In The Police Special Revenue Account. (Police Department) C7C A Resolution Adopting And Appropriating Funds For The Police Confiscation Trust Fund Budget For Fiscal Year 201 112012 In The Amount Of $946,800 To Be Funded From State Confiscated Funds ($416,800) And Federal-Justice Confiscated Funds ($530,000). (Police Department) C7D A Resolution Adopting And Appropriating Funds For The Fiscal Year 201 112012 Police Training & School Resources Fund Budget In The Amount Of $30,000. (Police Department) /" C7E A Resolution Adopting And Appropriating The Fourth Amendment To The Police Confiscation Trust , Fund Budget For Fiscal Year 201011 1 In The Amount Of $61,489, For The Appropriation And Expenditure Of Those ltems Set Forth In Exhibit "A" And Shall Be Funded From The Proceeds Of State Confiscated Fund. (Police Department) End of Consent Agenda Commission Agenda, September 27,201 1 REGULAR AGENDA R7 - Resolutions R7A1 A Resolution Adopting: 1) The Final Ad Valorem Millage Of 6.2155 Mills For General Operating Purposes, Which Is Five And Three-Tenths Percent (5.3%) More Than The "Rolled-Back" Rate Of 5.9029 Mills; And 2) The Debt Service Millage Rate Of 0.2884 Mills. 5:Ol p.m. Second Reading Public Hearing (Office of Budget & Performance Improvement) R7A2 A Resolution Adopting Final Budgets For The General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, And Internal Service Funds For Fiscal Year 201 1/12. 5:01 p.m. Second Reading Public Hearing (Office of Budget & Performance Improvement) R7B1 A Resolution Of The Board Of Directors Of The Normandy Shores Local Government Neighborhood lmprovement District Adopting The Final Ad Valorem Millage Of 1.0935 Mills For Fiscal Year (FY) ' 201 1/12 For The Normandy Shores Local Government District, Which Is Nine And Nine-Tenth Percent (9.9%) More Than The "Rolled-Back Rate Of 0.9946 Mills. 5:02 p.m. Second Reading Public Hearing (Office of Budget & Performance Improvement) R7B2 A Resolution Of The Board Of Directors Of The Normandy Shores Local Government Neighborhood lmprovement District Adopting The Final Operating Budget For Fiscal Year (FY) 201 1/12. 5:02 p.m. Second Readinn Public Hearing (Office of Budget & Performance Improvement) R7C A Resolution Adopting The First Amendment To The Fiscal Year (FY) 201011 1 Capital Budget, Reprogramming $1,402,057 In Capital Reserves As Pay-As-You-Go Funds, Approving The Capital lmprovement Plan For FY 201 1112-2015116 And Appropriating The City Of Miami Beach Capital Budget For Fiscal Year (FY) 201 111 2. Joint City Commission and Redevelopment Anencv (Budget & Performance Improvement) R7D A Resolution Adopting Fiscal Year (FY) 201 1/12 Budgets For Special Revenue Funds For Resort . Tax; The 7th Street Parking Garage Operations; City's Share Of The Shortfall Contribution Requirement For The 5Ih & Alton Parking Garage Operations; Art In Public Places (AiPP), Tourism And Hospitality Scholarship Program, And The Information And Communications Technology Fund - Debt Service And Citysourced Mobile Application Project. (Budget & Performance lmprovement) Commission Agenda, September 27,201 1 R7 - Resolutions (Continued) R7E A Resolution Re-Affirming The New Living Wage Rates For Fiscal Year (FY) 2011-2012, In Accordance With The Three Year "Phase-In" Approved Pursuant To Ordinance No. 201 0-3682; With Such Rates To Be Effective October 1, 201 1 As Follows: $10.72 Per Hour With Contributions Towards Health Benefits Of At Least $1.45 Per Hour, And $1 2.1 7 Per Hour Without Benefits. (Procurement) R7F A Resolution Authorizing The Appropriation Of $1,200,000 From The Fiscal Year (FY) 201 1/12 People's Transportation Plan (PTP) Funds And FY 201 1/12 South Beach Concurrency Mitigation Funds In The Amount Of $1 3,121, To Fund The Operating Budget For The South Beach Local (SBL) In Miami Beach; And Further Appropriating $275,000 From FY 201 1/12 PTP Funds For Administrative And Technical Operating Expenditures, As Part Of The Five Percent (5%) Of Administrative Assistance And Technical Assistance Allowable For PTP Expenditures. (Public Works) R7G A Resolution Adopting The Miami Beach Cultural Arts Council's Fiscal Year 201 1/12 Budget In The Amount Of $1 ,I 81.000. (Tourism & Cultural Development) R7H A Resolution Accepting The City Manager's Recommendation, And Approving The Cultural Arts Council's Funding Recommendations, And Awarding $630,000 In Cultural Arts Grants, For Fiscal Year 201 111 2, As Identified In The Attached Exhibit "A; And Further Authorizing The Mayor And City Clerk To Execute Said Grant Agreements, And Make The Award Of Said Grant Monies Subject To And Contingent Upon The Approval Of The Cultural Arts Council's Budget For Fiscal Year 201 1112. (Tourism & Cultural Development) R71 A Resolution Adopting And Approving The Miami Beach Visitor And Convention Authority (MBVCA) FY 201 1/12 Budget, In The Amount Of $2,337,729. (Tourism & Cultural Development) R7J A Resolution Approving An Allocation, In The Amount Of $623,391, From FY 201 011 1 And FY 1 111 2 General Fund Account No. 01 1.0930; Said Allocation To Be Provided And Utilized By The Friends Of The Bass Museum, Inc., For The Purpose Of Continuing To Fund And Provide Certain Operating Expenses At The Bass Museum Of Art, Through September 30,2012; And Further Authorizing The City Manager To Execute A New Letter Agreement With The Friends Of The Bass Museum, Inc. Memorializing The Parties' Respective Obligations With Regard To Certain Management And Operation Responsibilities Of The Bass Museum Through September 30, 2012. (Tourism & Cultural Development) Commission Agenda, September 27,201 1 R7 - Resolutions (Continued) R7K A Resolution Authorizing The lssuance Of (I) Not To Exceed $54,000,000 In Aggregate Principal Amount Of City Of Miami Beach, Florida Stormwater Revenue Bonds, Series 201 la, For The Principal Purpose Of Paying The Cost Of Certain Improvements To The Stormwater Utility, Pursuant To Section 209 Of Resolution No. 2000-24127 Adopted By The City On October 18, 2000, And (li) Not To Exceed $28,000,000 In Aggregate Principal Amount Of City Of Miami Beach, Florida Stormwater Revenue Refunding Bonds, Series 201 I b, For The Principal Purpose Of Refunding All Or A Portion Of The City's Outstanding Stormwater Revenue Bonds, Series 2000, Pursuant To Section 210 Of Said Resolution No. 2000-24127; Providing That Said Series 201 1 Bonds And Interest Thereon Shall Be Payable Solely As Provided In Said Resolution No. 2000-24127; Providing Certain Details Of The Series 201 1 Bonds; Delegating Other Details And Matters In Connection With The lssuance Of The Series 201 1 Bonds And The Refunding Of The Bonds To Be Refunded To The Mayor, Within The Limitations And Restrictions Stated Herein; Appointing Underwriters, A Bond Registrar, An Escrow Agent And A Disclosure Dissemination Agent; Authorizing The Negotiated Sale Of The Series 201 1 Bonds And Approving The Form Of And Authorizing The Execution Of A Bond Purchase Agreement; Authorizing And Directing The Bond Registrar To Authenticate And Deliver The Series 201 1 Bonds; Approving The Form Of And Distribution Of A Preliminary Official Statement And An Official Statement And Authorizing The Execution Of The Official Statement; Providing For The Application Of The Proceeds Of The Series 201 1 Bonds And Creating Certain Funds, Accounts And Subaccounts; Authorizing A Book-Entry Registration System With Respect To The Series 201 1 Bonds; Authorizing The Refunding, Defeasance And Redemption Of The Bonds To Be Refunded And Approving The Form Of And Authorizing The Execution And Delivery Of An Escrow Deposit Agreement; Covenanting To Provide Continuing Disclosure In Connection With The Series 201 1 Bonds And Approving The Form Of And Authorizing The Execution And Delivery Of A Continuing Disclosure Agreement; Authorizing Officers And Employees Of The City To Take All Necessary Related Actions; And Providing For An Effective Date. 5:00 p.m. First Reading Public Hearing (Finance Department) R9 - New Business and Commission Requests R9A The Committee Of The Whole Will Meet At 4:00 p.m. Prior To The September 27, 201 1 City Commission Meeting At The City Manager's Office Large Conference Room To Discuss Genting And Other Casino Ventures In Miami. (Requested by Commissioner Jerry Libbin) End of Regular Agenda $ Commission Agenda, September 27,201 1 6 MIAMI BEACH REDEVELOPMENT AGENCY AGENDA 1. NEW BUSINESS A A Resolution Of The Chairperson And Members Of The Miami Beach Redevelopment Agency, Adopting And Appropriating The Miami Beach Redevelopment Agency Capital Budget For Fiscal Year (FY) 201 1/12 And Adopting The Capital Improvement Plan For FY 201 111 2 Through 201 511 6. Joint Citv Commission and Redevelopment Agency (Budget & Performance Improvement) B A Resolution Of The Chairperson And Members Of The Miami Beach Redevelopment Agency Adopting And Appropriating The Operating Budget For The City Center Redevelopment Area, The Anchor Shops And Parking Garage And The Pennsylvania Avenue Shops And Parking Garage For Fiscal Year 201 1/12. (Budget & Performance Improvement) End of RDA Agenda CUMMI33IUN I l tM 3UMMAKY :ondensed Titles: Resolution authorizing the City to enter into certain lndependent Contractor Agreements for professional and other services, as required and as are deemed in the best interest of the City, subject to and contingent upon the following parameters: (1) the City Manager shall only enter into contracts for such professional and other services to provide services andlor work related to vacant budgeted positions, as identified in the City's approved Fiscal Year (FY) 201 11201 2 Annual Budget; (2) the amount of the fee andlor other compensation to be paid under such contract(s) shall not exceed the authorized amount for the respective positionlclassification, as set forth, respectively, in the Classified or Unclassified Salary Ordinance (as the case may be); (3) the term of any lndependent Contractor Agreement authorized herein shall not extend beyond the end of FY 201 112012 (September 30, 201 2); (4) at a minimum, any lndependent Contractor Agreement entered pursuant to this Resolution shall utilize the City's standard form for independent contractors (as attached to this Resolution), provided that the Manager may incorporate additional terms, which may be more stringent than the City's form, but not more lenient; and (5) providing that the authority granted pursuant to this Resolution shall be brought to the City commission for renewal annually as part of the annual operating budget approvals. Resolution authorizing the City to enter into certain independent contractor agreements for the following services, as required and as are deemed in the best interest of the City: dance instruction; ice skating instruction; athletics instructionlcoaching; aerobics instruction; fitness instruction; literacy, math and SAT tutoring; computer (IT) services; School Liaison Officers; Resident Project Representatives (RPR); community information services; construction cost estimatinglconsulting services; television production services; videographer services; graphic designer services; program monitor services; cost allocation service; job audits; Step Ill Disciplinary Hearing Officer; and auditors; provided further that the City Manager shall be authorized to negotiate, enter into, and execute the aforestated agreements subject to the following minimum parameters: (1) the amount of the fee andlor other compensation to be paid by the City under such agreement(s) shall not exceed the authorized amount forthe respective services, as set forth in the City's approved Fiscal Year (FY) 201 11201 2 Annual Budget; (2) the term of any services agreement authorized herein shall not extend beyond the end of FY 201 112012 (September 30,2012); (3) at a minimum, any agreement entered pursuant tothis Resolution shall utilize the City's standard form lndependent Contractor Agreement (as attached to this Resolution), provided that the City may incorporate additional terms, which may be more stringent than the City's form, but not more lenient; and (4) providing that the authority granted pursuant to this Resolution shall be brought to the City commission for renewal annually as part of the annual operating budget approvals. <ey Intended Outcome Supported: (1) Increase satisfaction with family recreational activities; (2) Enhance external and internal communications from and within the City; (3) Control costs of payroll including salary and fringes1 minimize taxes1 ensure expenditure trends are sustainable over the - .. long term; and (4) attract-and maintain aquality workforce. Supporting Data (Surveys, Environmental Scan, etc.): 2009 Community Satisfaction survey: 84.9% of residents rated Recreation Programs as excellentlgood and 79.3% of residents rated the amount of information received from the City as excellentlgood. ssue: Shall the City Manager be granted the authority to enter into certain lndependent Contractor Agreements? Rem Summary/~eco%endation:~ Under the Citv Charter, the City Manager has the authority to appoint an employee into a vacant, budgeted position with a salary within the range established bythe city Commission for that cl~ssification. ~iven the current financial realities, the City has had to eliminate positions in its annual budget the past four (4) Fiscal Years, and again for the one ending on September 30,2012. It has been the City's practice to restrict hiring for vacant positions where practicable. In some instances where positions were held vacant, the City has retained independent contractors to provide the service or work. The Administration recommends that the City Commission authorize the City Manager to negotiate, enter and execute certain independent contractoragreements, including those having an amount exceeding $25,000, to provide services or work related to vacant, budgeted positions, subject to certain parameters. Additionally, the Administration recommends that the City Manager be authorized to negotiate, enter and execute independent contractor agreements, including those exceeding $25,000, to provide services related to certain activities typically retained on an annual basis as outlined in the City Commission Memorandum, subject to certain minimum parameters. Advisory Board Recommendation: NIA Financial Information: u OBPl Account Source of Funds: I Total I Financial Impact Summary: Funds are already included in the FY 201012011 Annual Operating Budget, in either Salaries or Professional Services line items in various respective departments City Clerk's Office Legislative Tracking: I Ramiro Inauanzo. Human Resources Director 1 Amount MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Matti Herrera Bower and Members of the City Commission Jorge M. Gonzalez, City Manager September 27,201 1 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ClTY MANAGER, ON BEHALF OF THE CITY, TO ENTER INTO CERTAIN INDEPENDENT CONTRACTOR AGREEMENTS FOR PROFESSIONAL AND OTHER SERVICES, AS REQUIRED AND AS THE CITY MANAGER DEEMS IN THE BEST INTEREST OF THE CITY, SUBJECT TO AND CONTINGENT UPON THE FOLLOWING PARAMETERS: 1) THE ClTY MANAGER SHALL ONLY ENTER INTO CONTRACTS FOR SUCH PROFESSIONAL AND OTHER SERVICES TO PROVIDE SERVICES ANDlOR WORK RELATED TO VACANT BUDGETED POSITIONS, AS IDENTIFIED IN THE CITY'S APPROVED FISCAL YEAR (FY) 201112012 ANNUAL BUDGET; 2) THE AMOUNT OF THE FEE ANDlOR OTHER COMPENSATION TO BE PAID BY THE ClTY UNDER SUCH CONTRACT(S) SHALL NOT EXCEED THE AUTHORIZED AMOUNT FOR THE RESPECTIVE POSlTlONlCLASSlFlCATION, AS SET FORTH, RESPECTIVELY, IN THE CITY'S CLASSIFIED OR UNCLASSIFIED SALARY ORDINANCE (AS THE CASE MAY BE); 3) THE TERM OF ANY INDEPENDENT CONTRACTOR AGREEMENT AUTHORIZED HEREIN SHALL NOT EXTEND BEYOND THE END OF FY 201112012 (SEPTEMBER 30,2012); 4) AT A MINIMUM, THE ClTY MANAGER SHALL REQUIRE THAT ANY INDEPENDENT CONTRACTOR AGREEMENT ENTERED INTO PURSUANT TO THlS RESOLUTION SHALL UTILIZE THE CITY'S STANDARD FORM FOR INDEPENDENT CONTRACTORS (AS ATTACHED TO THlS RESOLUTION), PROVIDED THAT THE ClTY MANAGER MAY INCORPORATE ADDITIONAL TERMS, WHICH MAY BE MORE STRINGENT THAN THE CITY'S FORM, BUT NOT MORE LENIENT; AND 5) PROVIDING THAT THE AUTHORITY GRANTED TO THE ClTY MANAGER PURSUANT TO THlS RESOLUTION SHALL BE BROUGHT TO THE ClTY COMMISSION FOR RENEWAL ANNUALLY AS PART OF THE ANNUAL OPERATING BUDGET APPROVALS. A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ClTY MANAGER, ON BEHALF OF THE CITY, TO ENTER INTO CERTAIN INDEPENDENT CONTRACTOR AGREEMENTS FOR THE FOLLOWING SERVICES, AS REQUIRED AND AS THE ClTY MANAGER DEEMS IN THE BEST INTEREST OF THE CITY: DANCE INSTRUCTION; ICE SKATING INSTRUCTION; ATHLETICS INSTRUCTION1 COACHING; AEROBICS INSTRUCTION; FITNESS INSTRUCTION; LITERACY, MATH AND SAT TUTORING; COMPUTER (IT) SERVICES; SCHOOL LIAISON OFFICERS; RESIDENT PROJECT REPRESENTATIVES (RPR); COMMUNITY INFORMATION SERVICES; CONSTRUCTION COST ESTIMATINGICONSULTING SERVICES; TELEVISION PRODUCTION SERVICES; VIDEOGRAPHER SERVICES; GRAPHIC DESIGNER SERVICES; PROGRAM MONITOR SERVICES; COST ALLOCATION SERVICE; JOB AUDITS; STEP Ill DISCIPLINARY GRIEVANCE HEARING OFFICER; AND AUDITORS; PROVIDED FURTHER THAT THE ClTY MANAGER SHALL BE AUTHORIZED TO NEGOTIATE, ENTER INTO, AND EXECUTE THE AFORESTATED AGREEMENTS SUBJECT TO THE FOLLOWING MINIMUM PARAMETERS: 1) THE AMOUNT OF THE FEE ANDlOR OTHER City Commission Memorandum September 27,201 1 Independent Contractor Agreements Page 2 of 4 COMPENSATION TO BE PAID BY THE ClTY UNDER SUCH AGREEMENT(S) SHALL NOT EXCEED THE AUTHORIZED AMOUNT FORTHE RESPECTIVE SERVICES, AS SET FORTH IN THE CITY'S APPROVED FISCAL YEAR (FY) 201 112012 ANNUAL BUDGET; 2) THE TERM OF ANY SERVICES AGREEMENT AUTHORIZED HEREIN SHALL NOT EXTEND BEYOND THE END OF FY 2011/2012 (SEPTEMBER 30, 2012); 3) AT A MINIMUM, THE ClTY MANAGER SHALL REQUIRE THAT ANY AGREEMENT ENTERED INTO PURSUANT TO THlS RESOLUTION SHALL UTILIZE THE CITY'S STANDARD FORM INDEPENDENT CONTRACTOR AGREEMENT (AS ATTACHED TO THlS RESOLUTION), PROVIDED THAT THE ClTY MANAGER MAY INCORPORATE ADDITIONAL TERMS, WHICH MAY BE MORE STRINGENT THAN THE CITY'S FORM, BUT NOT MORE LENIENT; AND 4) PROVIDING THAT THE AUTHORITY GRANTED TO THE ClTY MANAGER PURSUANT TO THlS RESOLUTION SHALL BE BROUGHT TO THE ClTY COMMISSION FOR RENEWAL ANNUALLY AS PART OF THE ANNUAL OPERATING BUDGET APPROVALS. ADMINISTRATION RECOMMENDATION Adopt both Resolutions. BACKGROUND I ANALYSIS The first Resolution pertains to independent contractor agreements for individuals hired to perform a specific function for a temporary period. These individuals are usually compensated at an hourly or project specific rate. Under the City Charter, the City Manager has the authority to appoint an employee into a vacant, budgeted position with a salary within the range established by the City Commission for that classification. Given current financial realities, the City has had to eliminate 246 full-time position and 14 part-time positions between Fiscal Years (FY) 2007108 and 201011 1, and will eliminate additional positions in the fiscal year starting on October 1,201 I. It has been the City's practice to restrict hiring for vacant positions where practicable. All vacant positions identified to be filled are carefully analyzed. Positions that were deemed "mission critical" have been filled, but others have been held vacant. This has been done to try to place employees whose positions may have been eliminated, and also to avoid hiring an employee and then possibly having to lay them off at the end of the fiscal year if their position is eliminated. In some instances where positions were held vacant, the City has retained independent contractors to provide the respective services andlor work. Because the City Code requires contracts in excess of $25,000 to be approved by the City Commission, these agreements have typically been limited to that maximum amount. In an effort to save on both short-term and long-term costs, such as pension and health benefits, the Administration is recommending that the City Commission authorize the City Manager to negotiate, enter into, and execute certain independent contractor agreements, including those having an amount that may exceed $25,000, subject to all of the following parameters: The independent contractor agreements authorized under this Resolution will be limited to services and/or work related to a vacant, budgeted position, as approved in the City's FY 201 1 1201 2 annual operating budget; The value of the agreement will not exceed the amount already authorized in the City's City Commission Memorandum September 27,201 1 lndependent Contractor Agreements Page 3 of 4 Classified and Unclassified Salary Ordinances (as applicable), and will not extend beyond September 30,2012; and Any agreement entered into will contain, at a minimum, the provisions outlined in the City's standard form independent contractor agreement (Attachment A). A Resolution requesting the initial authorization for the City Manager to enter into these agreements was first heard at the September 24, 2009 City Commission meeting, where it was referred to the Finance and Citywide Projects Committee. At its October 29, 2009 meeting, the Finance and Citywide Projects Committee held a discussion regarding this item. As part of the discussion, the Administration clarified that the purpose of this item was not to replace those employees currently in a position, or to eliminate a position and layoff an employee to then hire an independent contractor to perform the same functions. The independent contractors will be used to perform the functions of vacant, budgeted positions where a previous incumbent employee separated from City of their own choosing, or through termination based on cause. The City Commission originally approved this Resolution at its December 9, 2009 meeting for the fiscal year ending on September 30,201 0; and renewed it on September 20,201 0 for the fiscal year ending on September 30,201 1. It was agreed that the use of lndependent Contractor Agreements would be monitored through periodic Letters to the Commission (LTC), and that this authoritywould be brought back for renewal on an annual basis as part of the budget process, as the authority expires at the end of the fiscal year. To date, during the 201012011 Fiscal Year, the following three (3) agreements were executed pursuant to this authority: One (1) Fingerprint Latent Examiner for the Police Department, in an amount not to exceed $78,000.00; One (1) Office Associate IV for the Public Works Department, in an amount not to exceed $6,857.00; and One (1) Supplementary Field Inspection Services Provider for the Public Works Department, in an amount not to exceed $22,500.00, to assist the Department in performing some of the duties of the vacant Assistant City Engineer position. This updated resolution is for the 201 112012 Fiscal Year. The second Resolution also pertains to independent contractors who will be providing certain specific services andlor work that were otherwise budgeted in each of the respective departmental budgets. Some of the services budgeted include: Dance Instruction, Ice Skating Instruction, Athletics InstructionlCoaching, Aerobics Instruction, Fitness Instruction, and Literacy, Math and SAT Tutoring for the Parks and Recreation Department; School Liaison Officers for the Police Department; Resident Project Representatives (RPR); Community Information Services; Construction Cost EstimatinglConsulting Services for the Capital Improvement Projects (CIP) Office; Television Production Services, Videographer Services, and Graphic Designer Services for the Office of Communications; Homeless Outreach, Housing Services, Tutoring Services and Program Monitor Services for the Office of Real Estate, Housing and Community Development; Cost Allocation Services for the Finance Department; and Auditor Services for the Office of Budget and Performance Improvement. Additionally, for this upcoming fiscal year, we are requesting the inclusion of the following three (3) new categories: computer (IT) services provider, to support the computers that are used by Parks and Recreation Youth Center participants; job audits and surveys related to job positions, to provide part of the functions previously performed by the HR Specialist that was eliminated from the upcoming fiscal year budget; and a Step Ill Disciplinary Grievance City Commission Memorandum September 27,201 1 Independent Contractor Agreements Page 4 of 4 hearing officer to act as the City Manager's Designee for Labor Relations on cases where the involvement of HR staff in the preliminary disciplinary process prevents them from acting as a neutral arbitrator. In an effort to coordinate the execution of agreements for the kind of services andlor work referenced in the second Resolution, the Administration also recommends that the City Manager be authorized to negotiate, enter into, and execute such agreements, including those having an amount greater than $25,000, subject to all of the following parameters: The agreements will be limited to the services andlor work specifically listed in the second Resolution; The value of the agreement will not exceed the authorized amount for the respective services andlor work, as set forth in the City's Approved FY 201 112012 Annual Budget; The term of the agreement shall not extend beyond the end of FY 201 112012 (September 30, 201 2); and Any agreement entered into will contain, at a minimum, the provisions outlined in the City's standard form agreement for independent contractors (Attachment A). The City Commission also approved this Resolution at its December 9, 2009 meeting for the fiscal year ending on September 30, 2010; and renewed it on September 20, 2010 for the fiscal year ending September 30,201 1. The resolutions were subject to the same monitoring through periodic Letters to the Commission (LTC) as the Resolutions above, and that this authority would be brought back for renewal on an annual basis as part of the budget process, as the authority expires at the end of the fiscal year. To date, during the 201012011 Fiscal Year, one (1) agreement for a Homeless Prevention Program Monitor for the Real Estate, Housing & Community Development Division, in an amount not to exceed $59,836.92 (grant funded) was executed pursuant to this authority. Additionally, one (1) Professional Services Agreement for Television Production Services, in an amount not to exceed $51,000, was entered during the current fiscal year. Other agreements for services such as program monitoring, videographer services, lease managers, tutoring, coaching, IT summer interns, and instructors in the area of dance, athletics, music and skating have been executed in the current fiscal year. However, these agreements did not fall under the purview of this authority, as each contractor was awarded agreements totaling $25,000 or less. Additionally, the Parks and Recreation Department retained the services of one (1) computer (IT) services provider to support the computers that are utilized by youth center participants, in an amount not to exceed $5,000. This updated resolution is for the 201 112012 Fiscal Year. CONCLUSION The Administration recommends adopting both Resolutions. Attachment T:MGENDA\2011\9-27-1 l\Independent Contractor Memo 201 1-2012 D 2 a.doc ATTACHMENT A CITY'S STANDARD FORM FOR INDEPENDENT CONTRACTORS INDEPENDENT CONTRACTOR AGREEMENT This Agreement is entered into on this day of , between [ENTER FULL NAME OF CONTRACTOR1 (Contractor), and the City of Miami Beach, Florida (City), for a period of [ENTER DURATIONITERM OF AGREEMENTJ, with an effective starting date of [ 1, and an end date of [ ] (the Term). 1. Scope of WorklServices. This Agreement is for the purpose of providing [PROVIDE BRIEF DESCRIPTIONISUMMARY OF WHAT CONTRACTOR WlLL DO1 to the City's [ 1 Department. Specifically, throughout the Term of this Agreement, Contractor shall provide andlor perform the following minimum services: [INSERT DETAILED AND/OR ITEMIZED DESCRIPTION OF WORK AND/OR SERVICES CONTRACTOR WlLL PROVIDE] 2. - Fee. In consideration of the work and/or services to be provided pursuant to this Agreement, the City agrees to pay Contractor a fee, in the not to exceed amount of I FILL IN TOTAL $AMOUNTl, which shall be paid as follows: JINSERT, IN DETAIL, HOW FEE WlLL BE PAID. INCLUDE WHETHER FEE WlLL BE PAlD HOURLY, WEEKLY, MONTHLY, ETC.; WHETHER IT'S SUBJECT TO CONTRACTOR PROVIDING TIME SHEETS. OR WORK SCHEDULE, ETC.1 The total fee paid to Contractor pursuant to this Agreement shall not exceed [FILL IN A NOT TO EXCEED AMOUNq for the Term provided herein. Work Schedule. During the Term of the Agreement, Contractor shall provide the work and/or services in accordance with the following minimum work schedule: JINSERT WORK SCHEDULE (EXAMPLE: MON - FRI. 9 AM TO 5PM, EXCLUDING RECOGNIZED ClTY HOLIDAYS). IF IT'S ANOTHER TYPE OF SCHEDULE SUCH AS ON AN HOURLY BASIS OR ONLY ON SPECIFIC DAYS, BE SPECIFIC AS TO MINIMUM HOURS OR DAYS CONTRACTOR IS EXPECTED TO WORK IN ORDER TO GET PAlD THE FEE SET FORTH HERE.1 Contractor's work andlor services shall be overseen by the following City Departmentllndividual: JINSERT TITLE, DEPARTMENT OF ClTY (INDIVIDUAL OVERSEEING SERVICES).l Termination. This Agreement may be terminated for convenience of either party, with or without cause, by giving written notice to the other party of such termination, which shall become effective upon fourteen (14) days following receipt by the other party of the written termination notice. Upon termination in accordance with this paragraph, the Contractor shall be paid a sum equal to all payments due to himlher up to the date of termination; provided Contractor is satisfactorily continuing to satisfactorily perform all work and/or services up to the date of termination. Thereafter, the City shall be fully discharged from any further liabilities, duties, and terms arising out of, or by virtue of, this Agreement. lndemnificationlHold Harmless. Contractor agrees to indemnify, defend, and hold harmless the City of Miami Beach and its officers, employees and agents, from and against any and all actions, claims, liabilities, losses and expenses, including but not limited to, attorney's fees, for personal economic or bodily injury, wrongful death, loss of or damage to property, at law or in equity, which may arise or be alleged to have arisen from the negligent acts or omissions or other wrongful conduct of Contractor, andlor any and all subcontractors, employees, agents, or any other person or entity acting under Contractor's control, in connection with the Contractor's performance of the work andlor services pursuant to this Agreement. Contractor shall pay all such claims and losses and shall pay all costs and judgments which may arise from any lawsuit arising from such claims and losses, and shall pay all costs and attorney's fees expanded by the City in defense of such claims and losses, including appeals. The parties agree that one percent (I %) of the total compensation to Contractor for performance of the work andlor services under this Agreement is the specific consideration from the City to Contractor for the Contractor's agreement to indemnify and hold the City harmless, as provided herein. Contractor and the City hereby agree and acknowledge that this indemnity provision is intended to and shall survive the termination (or earlier expiration) of this Agreement. Limitation of Liabilitv. The City desires to enter into this Agreement only if in so doing the City can place a limit on City's liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of the compensationlfee to be paid to Contractor pursuant to this Agreement, less any amounts actually paid by the City as of the date of the alleged breach. Contractor hereby expresses his willingness to enter into this Agreement with Contractor's recovery from the City for any damage action for breach of contract to be limited to a maximum amount equal to the compensationlfee to be paid to Contractor pursuant to this Agreement, less any amounts actually paid by the City as of the date of the alleged breach. Accordingly, and notwithstanding any other term or condition of this Agreement, Contractor hereby agrees that the City shall not be liable to Contractor for damages in the amount in excess of the compensationlfee to be paid to Contractor pursuant to this Agreement, less any amounts actually paid by the City as of the date of the alleged breach, for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this subparagraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon City's liability as set forth in Section 768.28, Florida Statutes. Notices. All notices and communications in writing required or permitted hereunder may be delivered personally to the representatives of the Contractor and the City listed below or may be mailed by registered mail, postage prepaid (or airmailed if addressed to an address outside of the city of dispatch). Until changed by notice in writing, all such notices and communications shall be addressed as follows: CONTRACTOR: CITY: [INSERT NAME OF CONTRACTOR] [INSERT ADDRESS OF CONTRACTOR] [INSERT PHONE NUMBER] [INSERT DEPARTMENT DIRECTOR] City of Miami Beach [INSERT DEPARTMENT NAME] 1700 Convention Center Drive Miami Beach, FL 33139 (305) Notices hereunder shall be effective: If delivered personally, on delivery; if mailed to an address in the city of dispatch, on the day following the date mailed; and if mailed to an address outside the city of dispatch on the seventh day following the date mailed. Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in state court, and the U.S. District Court, Southern District of Florida, if in federal court. BY ENTERING INTO THIS AGREEMENT, CITY AND CONTRACTOR EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT. Duty of CarelCompliance with Applicable Laws. With respect to the performance of the work andlor service contemplated herein, Contractor shall exercise that degree of skill, care, efficiency and diligence normally exercised by reasonable persons andlor recognized professionals with respect to the performance of comparable work and/or services. In its performance of the work and/or services, Contractor shall comply with all applicable laws, ordinances, and regulations of the City, Miami-Dade County, the State of Florida, and the federal government, as applicable. The Contractor agrees to adhere to and be governed by the Miami-Dade County Conflict of Interest Ordinance, as same may be amended from time to time; and by any and all ethicslstandards of conducts as referenced in Chapter 2 of the City of Miami Beach Code (as may be amended from time to time). Contractor covenants that it presently has no interest and shall not acquire any interest, direct or indirectly which should conflict in any manner or degree with the performance of the work and/or services. Contractor further covenants that in the performance of work andlor services under this Agreement, no person having any such interest shall knowingly be employed by the Contractor. No member of or delegate to the Congress of the United States shall be admitted to any share or part of this Agreement or to any benefits arising there from. Ownership of DocumentslPatents and Copyrights. Any and all documents prepared by Contractor pursuant to this Agreement are related exclusively to the work andlor services described herein, and are intended or represented for ownership by the City. Any re-use distribution, or dissemination of same by Contractor, other than to the City, shall first be approved in writing by the City Manager, which approval, if granted at all, shall be at the City Manager's sole and absolute discretion. Any patentable and/or copyrightable result arising out of this Agreement, as well as all information, specifications, processes, data and findings, shall be made available to the City, in perpetuity, for public use. No reports, other documents, articles or devices produced in whole or in part under this Agreement shall be the subject of any application for patent or copyright by or on behalf of the Contractor (or its employees or sub-contractors, (if any) without the prior written consent of the City Manager, which consent, if given at all, shall be at the Manager's sole and absolute discretion. This section intentionally left blank. Liabilitv for Sub-contractors. Contractor shall be liable for its work and/or services, responsibilities and liabilities under this Agreement and the services, responsibilities and liabilities of any sub-contractors (if any), and any other person or entity acting under the direction or control of Contractor (if any). When the term "Contractor" is used in this Agreement, it shall be deemed to include any sub-contractors (if any) and/or any other person or entity acting under the direction or control of Contractor (if any). All sub-contractors (if any) must be approved in writing by the City Manager prior to their engagement by Contractor, which approval, if granted at all, shall be at the City Manager's sole and absolute discretion. Independent ContractorlNo Joint Venture. THIS AGREEMENT SHALL NOT CONSTITUTE OR MAKE THE PARTIES A PARTNERSHIP OR JOINT VENTURE. FOR THE PURPOSES OF THIS AGREEMENT, THE CONTRACTOR SHALL BE DEEMED TO BE AN INDEPENDENT CONTRACTOR, AND NOT AN AGENT OR EMPLOYEE OF THE CITY, AND SHALL NOT ATTAIN ANY RIGHTS OR BENEFITS UNDER THE CIVIL SERVICE OR PENSION ORDINANCE OF THE CITY, OR ANY RIGHT GENERALLY AFFORDED CLASSIFIED OR UNCLASSIFIED EMPLOYEES INCLUDING ANNUAL AND SICK DAY ACCRUAL. FURTHER, THE CONTRACTOR SHALL NOT BE DEEMED ENTITLED TO FLORIDA WORKER'S COMPENSATION BENEFITS AS AN EMPLOYEE OF THE CITY OR ACCUMULATION OF SICK OR ANNUAL LEAVE. Waiver of Breach. A party's failure to enforce any provision of this Agreement shall not be deemed a waiver of such provision or modification of this Agreement. A party's waiver of any breach of a provision of this Agreement shall not be deemed a waiver of any subsequent breach and shall not be construed to be a modification of the terms of this Agreement. Severance. In the event this Agreement or a portion of this Agreement is found by a court of competent jurisdiction to be invalid, the remaining provisions shall continue to be effective unless City elects to terminate this Agreement. Joint Preparation. The parties hereto acknowledge that they have sought and received whatever competent advice and counsel as was necessary for them to form a full and complete understanding of all rights and obligations herein and that the preparation of this Agreement has been a joint effort of the parties, the language has been agreed to by parties to express their mutual intent and the resulting document shall not, solely as a matter of judicial construction, be construed more severely against one of the parties than the other. Entire A~reement. This writing and any exhibits and/or attachments incorporated (and/or otherwise referenced for incorporation herein) embody the entire Agreement and understanding between the parties hereto, and there are no other agreements and understandings, oral or written, with reference to the subject matter hereof that are not merged herein and superseded hereby. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed by the respective officials thereunto duly authorized, this date and year first above written. FOR CITY: CITY OF MIAMI BEACH, FLORIDA ATTEST: By: City Clerk FOR CONTRACTOR: WITNESS: City Manager JINSERT CONTRACTOR NAME1 By: Signature Print Name By: Print Name / Title Print Name Approved : Approved as to form & language & for execution. Department Director Office of Budget and Performance Improvement Human Resources City Attorney Date RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ClTY MANAGER, ON BEHALF OF THE CITY, TO ENTER INTO CERTAIN INDEPENDENT CONTRACTOR AGREEMENTS FOR PROFESSIONAL AND OTHER SERVICES, AS REQUIRED AND AS THE ClTY MANAGER DEEMS IN THE BEST INTEREST OF THE CITY, SUBJECT TO AND CONTINGENT UPON THE FOLLOWING PARAMETERS: I) THE ClTY MANAGER SHALL ONLY ENTER INTO CONTRACTS FOR SUCH PROFESSIONAL AND OTHER SERVICES TO PROVIDE SERVICES AND/OR WORK RELATED TO VACANT BUDGETED POSITIONS, AS IDENTIFIED IN THE CITY'S APPROVED FISCAL YEAR (FY) 201112012 ANNUAL BUDGET; 2) THE AMOUNT OF THE FEE AND/OR OTHER COMPENSATION TO BE PAID BY THE ClTY UNDER SUCH CONTRACT(S) SHALL NOT EXCEED THE AUTHORIZED AMOUNT FOR THE RESPECTIVE POSITIONICLASSIFICATION, AS SET FORTH, RESPECTIVELY, IN THE CITY'S CLASSIFIED OR UNCLASSIFIED SALARY ORDINANCE (AS THE CASE MAY BE); 3) THE TERM OF ANY INDEPENDENT CONTRACTOR AGREEMENT AUTHORIZED HEREIN SHALL NOT EXTEND BEYOND THE END OF FY 201112012 (SEPTEMBER 30, 2012); 4) AT A MINIMUM, THE CITY MANAGER SHALL REQUIRE THAT ANY INDEPENDENT CONTRACTOR AGREEMENT ENTERED INTO PURSUANT TO THlS RESOLUTION SHALL UTILIZE THE CITY'S STANDARD FORM FOR INDEPENDENT CONTRACTORS (AS ATTACHED TO THlS RESOLUTION), PROVIDED THAT THE ClTY MANAGER MAY INCORPORATE ADDITIONAL TERMS, WHICH MAY BE MORE STRINGENT THAN THE CITY'S FORM, BUT NOT MORE LENIENT; AND 5) PROVIDING THAT THE AUTHORITY GRANTED TO THE CITY MANAGER PURSUANT TO THlS RESOLUTION SHALL BE BROUGHT TO THE ClTY COMMISSION FOR RENEWAL ANNUALLY AS PART OF THE ANNUAL OPERATING BUDGET APPROVALS. WHEREAS, under the City Charter, the City Manager has the authority to appoint an employee into a vacant, budgeted position with a salary within the range established by the City Commission for the classification; and WHEREAS, given current financial realities, the City has had to eliminate positions in its annual budget for each of the last four (4) fiscal years and again for the fiscal year starting on October I, 201 1 ; and WHEREAS, it has been the City's practice to restrict hiring for vacant positions where practicable; and WHEREAS, all vacant positions identified to be filled are carefully analyzed, and positions that were deemed mission critical have been filled, but others have been held vacant; and WHEREAS, this has been done to try to place employees whose positions may have been eliminated, and also to avoid hiring an employee and then possibly having to lay them off at the end of the fiscal year if their position is eliminated; and WHEREAS, in some instances where positions were held vacant, the City has retained independent contractors to provide the respective services and/or work; and WHEREAS, because the City Code requires contracts in excess $25,000 to be approved by the City Commission, these agreements have typically been limited to that maximum amount; and WHEREAS, on rare occasions, independent contractor agreements for amounts over $25,000 have been brought to the City Commission for approval; and WHEREAS, in an effort to save on both short-term and long-term costs, such as pension and health benefits, the Administration is recommending that the City Commission authorize the City Manager to negotiate, enter into, and execute certain independent contractor agreements, including those having an amount that may exceed $25,000, subject to the following parameters: The independent contract agreements authorized under this Resolution will be limited to services andlor work related to a vacant, budgeted position, as approved in the City's Fiscal Year (FY) 201 112012 annual operating budget; The value of the agreement will not exceed the amount already authorized in the City's Classified and Unclassified Salary Ordinances (as applicable), and will not extend beyond September 30,2012; and Any agreement entered into will contain, at a minimum, the provisions outlined in the City's standard form independent contractor agreement (a copy of which is attached hereto and incorporated herein); and WHEREAS, the City Commission granted similar authority to the City Manager on December 9, 2009 for FY 200912010 and renewed the authority on September 20, 2010 for FY 201 01201 1 ; and WHEREAS, during the discussions for the initial authority, it was said that this authority would be brought back for renewal on an annual basis as part of the budget process, as the authority expires at the end of the fiscal year. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, that the City Manager is authorized, on behalf of the City, to enter into certain independent contractor agreements for professional and other services, as required and as the City Manager deems in the best interest of the City, subject to and contingent upon the following parameters: 1) the City Manager shall only enter into contracts for such professional and other services to provide services andlor work related to vacant budgeted positions, as identified in the City's approved Fiscal Year (FY) 201112012 Annual Budget; 2) the amount of the fee andlor other compensation to be paid by the City under such contract(s) shall not exceed the authorized amount for the respective positionlclassification, as set forth, respectively, in the City's Classified or Unclassified Salary Ordinance (as the case may be); 3) the term of any independent contractor agreement authorized herein shall not extend beyond the end of FY 201 I12012 (September 30, 2012); 4) at a minimum, the City Manager shall require that any independent contractor agreement entered into pursuant to this resolution shall utilize the City's standard form for independent contractors, provided that the City Manager may incorporate additional terms, which may be more stringent than the City's form, but not more lenient; and 5) providing that the authority granted to the City Manager pursuant to this Resolution shall be brought to the City Commission for renewal annually as part of the annual operating budget approvals. PASSED and ADOPTED this day of ,2011. ATTEST: CITY CLERK MAYOR T:\AGENDAPOlO\September 20\Consent\lndependent Contractor Resos.doc APPROVED AS TO FORM & LANGUAGE .& FOR A EXECUTION ATTACHMENT A CITY'S STANDARD FORM FOR INDEPENDENT CONTRACTORS INDEPENDENT CONTRACTOR AGREEMENT This Agreement is entered into on this day of , between [ENTER FULL NAME OF CONTRACTOR1 (Contractor), and the City of Miami Beach, Florida (City), for a period of [ENTER DURATIONITERM OF AGREEMEN11, with an effective starting date of [ 1, and an end date of [ 1 (the Term). Scope of WorWServices. This Agreement is for the purpose of providing [PROVIDE BRIEF DESCRlPTlONlSUMMARY OF WHAT CONTRACTOR WlLL DO1 to the City's [ 1 Department. Specifically, throughout the Term of this Agreement, Contractor shall provide and/or perform the following minimum services: [INSERT DETAILED AND/OR ITEMIZED DESCRIPTION OF WORK AND/OR SERVICES CONTRACTOR WlLL PROVIDE] 2. - Fee. In consideration of the work and/or services to be provided pursuant to this Agreement, the City agrees to pay Contractor a fee, in the not to exceed amount of I FlLL IN TOTAL $AMOUNq, which shall be paid as follows: IINSERT, IN DETAIL, HOW FEE WlLL BE PAID. INCLUDE WHETHER FEE WlLL BE PAlD HOURLY. WEEKLY, MONTHLY, ETC.; WHETHER IT'S SUBJECT TO CONTRACTOR PROVIDING TIME SHEETS, OR WORK SCHEDULE, ETC.1 The total fee paid to Contractor pursuant to this Agreement shall not exceed [FILL IN A NOT TO EXCEED AMOUNq for the Term provided herein. Work Schedule. During the Term of the Agreement, Contractor shall provide the work and/or services in accordance with the following minimum work schedule: JINSERT WORK SCHEDULE (EXAMPLE: MON - FRI. 9 AM TO 5PM, EXCLUDING RECOGNIZED ClTY HOLIDAYS). IF IT'S ANOTHER TYPE OF SCHEDULE SUCH AS ON AN HOURLY BASIS OR ONLY ON SPECIFIC DAYS. BE SPECIFIC AS TO MINIMUM HOURS OR DAYS CONTRACTOR IS EXPECTED TO WORK IN ORDER TO GET PAlD THE FEE SET FORTH HERE.1 Contractor's work and/or services shall be overseen by the following City Departmentllndividual: IINSERT TITLE, DEPARTMENT OF ClTY (INDIVIDUAL OVERSEEING SERVICESI.1 Termination. This Agreement may be terminated for convenience of either party, with or without cause, by giving written notice to the other party of such termination, which shall become effective upon fourteen (14) days following receipt by the other party of the written termination notice. Upon termination in accordance with this paragraph, the Contractor shall be paid a sum equal to all payments due to himiher up to the date of termination; provided Contractor is satisfactorily continuing to satisfactorily perform all work and/or services up to the date of termination. Thereafter, the City shall be fully discharged from any further liabilities, duties, and terms arising out of, or by virtue of, this Agreement. lndemnificationlHold Harmless. Contractor agrees to indemnify, defend, and hold harmless the City of Miami Beach and its officers, employees and agents, from and against any and all actions, claims, liabilities, losses and expenses, including but not limited to, attorney's fees, for personal economic or bodily injury, wrongful death, loss of or damage to property, at law or in equity, which may arise or be alleged to have arisen from the negligent acts or omissions or other wrongful conduct of Contractor, andlor any and all subcontractors, employees, agents, or any other person or entity acting under Contractor's control, in connection with the Contractor's performance of the work andlor services pursuant to this Agreement. Contractor shall pay all such claims and losses and shall pay all costs and judgments which may arise from any lawsuit arising from such claims and losses, and shall pay all costs and attorney's fees expanded by the City in defense of such claims and losses, including appeals. The parties agree that one percent (1 %) of the total compensation to Contractor for performance of the work andlor services under this Agreement is the specific consideration from the City to Contractor for the Contractor's agreement to indemnify and hold the City harmless, as provided herein. Contractor and the City hereby agree and acknowledge that this indemnity provision is intended to and shall survive the termination (or earlier expiration) of this Agreement. Limitation of Liabilitv. The City desires to enter into this Agreement only if in so doing the City can place a limit on City's liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of the compensationlfee to be paid to Contractor pursuant to this Agreement, less any amounts actually paid by the City as of the date of the alleged breach. Contractor hereby expresses his willingness to enter into this Agreement with Contractor's recovery from the City for any damage action for breach of contract to be limited to a maximum amount equal to the compensationlfee to be paid to Contractor pursuant to this Agreement, less any amounts actually paid by the City as of the date of the alleged breach. Accordingly, and notwithstanding any other term or condition of this Agreement, Contractor hereby agrees that the City shall not be liable to Contractor for damages in the amount in excess of the compensationlfee to be paid to Contractor pursuant to this Agreement, less any amounts actually paid by the City as of the date of the alleged breach, for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this subparagraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon City's liability as set forth in Section 768.28, Florida Statutes. 7. Notices. All notices and communications in writing required or permitted hereunder may be delivered personally to the representatives of the Contractor and the City listed below or may be mailed by registered mail, postage prepaid (or airmailed if addressed to an address outside of the city of dispatch). Until changed by notice in writing, all such notices and communications shall be addressed as follows: CONTRACTOR: [INSERT NAME OF CONTRACTOR] [INSERT ADDRESS OF CONTRACTOR] [INSERT PHONE NUMBER] CITY: [INSERT DEPARTMENT DIRECTOR] City of Miami Beach [INSERT DEPARTMENT NAME] 1700 Convention Center Drive Miami Beach, FL 331 39 (305) Notices hereunder shall be effective: If delivered personally, on delivery; if mailed to an address in the city of dispatch, on the day following the date mailed; and if mailed to an address outside the city of dispatch on the seventh day following the date mailed. Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in state court, and the U.S. District Court, Southern District of Florida, if in federal court. BY ENTERING INTO THIS AGREEMENT, CITY AND CONTRACTOR EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THlS AGREEMENT. Duty of CareICompliance with Applicable Laws. With respect to the performance of the work and/or service contemplated herein, Contractor shall exercise that degree of skill, care, efficiency and diligence normally exercised by reasonable persons and/or recognized professionals with respect to the performance of comparable work and/or services. In its performance of the work and/or services, Contractor shall comply with all applicable laws, ordinances, and regulations of the City, Miami-Dade County, the State of Florida, and the federal government, as applicable. The Contractor agrees to adhere to and be governed by the Miami-Dade County Conflict of Interest Ordinance, as same may be amended from time to time; and by any and all ethicsfstandards of conducts as referenced in Chapter 2 of the City of Miami Beach Code (as may be amended from time to time). Contractor covenants that it presently has no interest and shall not acquire any interest, direct or indirectly which should conflict in any manner or degree with the performance of the work and/or services. Contractor further covenants that in the performance of work and/or services under this Agreement, no person having any such interest shall knowingly be employed by the Contractor. No member of or delegate to the Congress of the United States shall be admitted to any share or part of this Agreement or to any benefits arising there from. Ownership of DocumentslPatents and Coovricrhts. Any and all documents prepared by Contractor pursuant to this Agreement are related exclusively to the work and/or services described herein, and are intended or represented for ownership by the City. Any re-use distribution, or dissemination of same by Contractor, other than to the City, shall first be approved in writing by the City Manager, which approval, if granted at all, shall be at the City Manager's sole and absolute discretion. Any patentable and/or copyrightable result arising out of this Agreement, as well as all information, specifications, processes, data and findings, shall be made available to the City, in perpetuity, for public use. No reports, other documents, articles or devices produced in whole or in part under this Agreement shall be the subject of any application for patent or copyright by or on behalf of the Contractor (or its employees or sub-contractors, (if any) without the prior written consent of the City Manager, which consent, if given at all, shall be at the Manager's sole and absolute discretion. This section intentionally left blank. Liability for Sub-contractors. Contractor shall be liable for its work and/or services, responsibilities and liabilities under this Agreement and the services, responsibilities and liabilities of any sub-contractors (if any), and any other person or entity acting under the direction or control of Contractor (if any). When the term "Contractor" is used in this Agreement, it shall be deemed to include any sub-contractors (if any) and/or any other person or entity acting under the direction or control of Contractor (if any). All sub-contractors (if any) must be approved in writing by the City Manager prior to their engagement by Contractor, which approval, if granted at all, shall be at the City Manager's sole and absolute discretion. Independent ContractorlNo Joint Venture. THIS AGREEMENT SHALL NOT CONSTITUTE OR MAKE THE PARTIES A PARTNERSHIP OR JOINT VENTURE. FOR THE PURPOSES OF THIS AGREEMENT, THE CONTRACTOR SHALL BE DEEMED TO BE AN INDEPENDENT CONTRACTOR, AND NOT AN AGENT OR EMPLOYEE OF THE CITY, AND SHALL NOT ATTAIN ANY RIGHTS OR BENEFITS UNDER THE CIVIL SERVICE OR PENSION ORDINANCE OF THE CITY, OR ANY RIGHT GENERALLY AFFORDED CLASSIFIED OR UNCLASSIFIED EMPLOYEES INCLUDING ANNUAL AND SlCK DAY ACCRUAL. FURTHER, THE CONTRACTOR SHALL NOT BE DEEMED ENTITLED TO FLORIDA WORKER'S COMPENSATION BENEFITS AS AN EMPLOYEE OF THE CITY OR ACCUMULATION OF SlCK OR ANNUAL LEAVE. Waiver of Breach. A party's failure to enforce any provision of this Agreement shall not be deemed a waiver of such provision or modification of this Agreement. A party's waiver of any breach of a provision of this Agreement shall not be deemed a waiver of any subsequent breach and shall not be construed to be a modification of the terms of this Agreement. Severance. In the event this Agreement or a portion of this Agreement is found by a court of competent jurisdiction to be invalid, the remaining provisions shall continue to be effective unless City elects to terminate this Agreement. Joint Preparation. The parties hereto acknowledge that they have sought and received whatever competent advice and counsel as was necessary for them to form a full and complete understanding of all rights and obligations herein and that the preparation of this Agreement has been a joint effort of the parties, the language has been agreed to by parties to express their mutual intent and the resulting document shall not, solely as a matter of judicial construction, be construed more severely against one of the parties than the other. Entire Anreement. This writing and any exhibits and/or attachments incorporated (andlor otherwise referenced for incorporation herein) embody the entire Agreement and understanding between the parties hereto, and there are no other agreements and understandings, oral or written, with reference to the subject matter hereof that are not merged herein and superseded hereby. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed by the respective officials thereunto duly authorized, this date and year first above written. FOR CITY: CITY OF MIAMI BEACH, FLORIDA ATTEST: By: City Clerk FOR CONTWCTOR: WITNESS: By: Print Name By: Print Name Approved: Department Director Office of Budget and Performance Improvement Human Resources City Manager JINSERT CONTRACTOR NAME1 Signature Print Name 1 Title Approved as to form & language & for execution. City Attorney Date RESOLUTION NO. A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER, ON BEHALF OF THE CITY, TO ENTER INTO CERTAIN INDEPENDENT CONTRACTOR AGREEMENTS FOR THE FOLLOWING SERVICES, AS REQUIRED AND AS THE ClTY MANAGER DEEMS IN THE BEST INTEREST OF THE CITY: DANCE INSTRUCTION; ICE SKATING INSTRUCTION; ATHLETICS INSTRUCTION1 COACHING; AEROBICS INSTRUCTION; FITNESS INSTRUCTION; LITERACY, MATH AND SAT TUTORING; COMPUTER (IT) SERVICES; SCHOOL LIAISON OFFICERS; RESIDENT PROJECT REPRESENTATIVES (RPR); COMMUNITY INFORMATION SERVICES; CONSTRUCTION COST ESTIMATINGICONSULTING SERVICES; TELEVISION PRODUCTION SERVICES; VIDEOGRAPHER SERVICES; GRAPHIC DESIGNER SERVICES; PROGRAM MONITOR SERVICES; COST ALLOCATION SERVICE; JOB AUDITS; STEP ill DISCIPLINARY GRIEVANCE HEARING OFFICER AND AUDITORS; PROVIDED FURTHER THAT THE CITY MANAGER SHALL BE AUTHORIZED TO NEGOTIATE, ENTER INTO, AND EXECUTE THE AFORESTATED AGREEMENTS SUBJECT TO THE FOLLOWING MINIMUM PARAMETERS: 1 THE AMOUNT OF THE FEE AND/OR OTHER COMPENSATION TO BE PAID BY THE CITY UNDER SUCH AGREEMENT(S) SHALL NOT EXCEED THE AUTHORIZED AMOUNT FOR THE RESPECTIVE SERVICES, AS SET FORTH IN THE CITY'S APPROVED FISCAL YEAR (FY) 201112012 ANNUAL BUDGET; 2) THE TERM OF ANY SERVICES AGREEMENT AUTHORIZED HEREIN SHALL NOT EXTEND BEYOND THE END OF FY 201112012 (SEPTEMBER 30, 2012); 3) AT A MINIMUM, THE CITY MANAGER SHALL REQUIRE THAT ANY AGREEMENT ENTERED INTO PURSUANT TO THlS RESOLUTION SHALL UTILIZE THE CITY'S STANDARD FORM INDEPENDENT CONTRACTOR AGREEMENT (AS ATTACHED TO THlS RESOLUTION), PROVIDED THAT THE ClTY MANAGER MAY INCORPORATE ADDITIONAL TERMS, WHICH MAY BE MORE STRINGENT THAN THE CITY'S FORM, BUT NOT MORE LENIENT; AND 4) PROVIDING THAT THE AUTHORITY GRANTED TO THE ClTY MANAGER PURSUANT TO THlS RESOLUTION SHALL BE BROUGHT TO THE CITY COMMISSION FOR RENEWAL ANNUALLY AS PART OF THE ANNUAL OPERATING BUDGET APPROVALS. WHEREAS, the City budgets for certain services to be provided each year in its annual operating budget in the respective departmental budgets; and WHEREAS, some of the services budgeted include: Dance Instruction, Ice Skating Instruction, Athletics InstructionICoaching, Aerobics Instruction, Fitness Instruction, Computer (IT) Services and Literacy, Math and SAT Tutoring for the Parks and Recreation Department; School Liaison Officers for the Police Department; Resident Project Representatives (RPR); Community Information Services; Construction Cost EstimatingIConsulting Services for the Capital Improvement Projects (CIP) Office; Television Production Services, Videographer Services, and Graphic Designer Services for the Office of Communications; Homeless Outreach; Housing Services; Tutoring Services and Program Monitor Services for the Office of Real Estate, Housing and Community Development; Cost Allocation Services for the Finance Department; Auditor Services for the Office of Budget and Performance Improvement; Job AuditsISurveys and Step Ill Disciplinary Grievance Hearing Officer for the Human Resources Department; and 33 WHEREAS, because the City Code requires contracts in excess $25,000 to be approved by the City Commission, agreements for these services have typically been limited to that maximum amount; and WHEREAS, on rare occasions, independent contractor agreements for amounts over $25,000 have been brought to the City Commission for approval; and WHEREAS, in an effort to coordinate the execution of agreements for the kind of services andlor work referenced herein, the Administration is recommending that the City Commission authorize the City Manager to negotiate, enter into, and execute certain independent contractor agreements, including those having an amount that may exceed $25,000, subject to the following parameters: The agreements will only be limited to the services andlor work specifically listed in this Resolution; The value of the agreement will not exceed the authorized amount for the respective services andlor work, as set forth in the City's Approved FY 201 11201 2 Annual Budget; The term of the agreement shall not extend beyond the end of FY 201112012 (September 30,201 2); and a Any agreement entered into will contain, at a minimum, the provisions outlined in the City's standard form agreement for independent contractors (a copy of which is attached hereto and incorporated herein); and WHEREAS, the City Commission granted similar authority to the City Manager on December 9, 2009 for FY 200912010 and renewed the authority on September 20, 2010 for FY 201 01201 1 ; and WHEREAS, during the discussions for the initial authority, it was said that this authority would be brought back for renewal on an annual basis as part of the budget process, as the authority expires at the end of the fiscal year. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City Manager is authorized, on behalf of the City, to enter into certain independent contractor agreements for the following services, as required and as the City Manager deems in the best interest of the City: Dance Instruction; Ice Skating Instruction; Athletics InstructionICoaching; Aerobics Instruction; Fitness Instruction; Computer (IT) Services; Literacy, Math and SAT Tutoring; School Liaison Officers; Resident Project Representatives (RPR); Community Information Services; Construction Cost EstimatingIConsulting Services; Television Production Services; Videographer Services; Graphic Designer Services; Program Monitor Services; Auditors; Job AuditslSurveys and Step Ill Disciplinary Grievance Hearing Officer; provided further that the City Manager shall be authorized to negotiate, enter into, and execute the aforementioned agreements subject to the following minimum parameters: I) the amount of the fee andlor other compensation to be paid by the City under such agreement(s) shall not exceed the authorized amount for the respective services, as set forth in the City's approved Fiscal Year (FY) 201 112012 Annual Budget; 2) the term of any services agreement authorized herein shall not extend beyond the end of FY 201 112012 (September 30, 2012); 3) at a minimum, the City Manager shall require that any independent contractor agreement entered into pursuant to this resolution shall utilize the City's standard form for independent ctors, provided that the City Manager may incorporate additional terms, which may be more stringent than the City's form, but not more lenient; and 4) providing that the authority granted to the City Manager pursuant to this Resolution shall be brought to the City Commission for renewal annually as part of the annual operating budget approvals. PASSED and ADOPTED this day of ,2011. ATTEST: CITY CLERK MAYOR F:\HUMA\$all\REGMGENDAS\INDEPENDENT CONTRACTORS\lndependent Contractor Resos b.doc Ap?Fwm3AS70 FORM & LANGUAGE ~rnPQCUTIQN h ATTACHMENT A CITY'S STANDARD FORM FOR INDEPENDENT CONTRACTORS INDEPENDENT CONTRACTOR AGREEMENT This Agreement is entered into on this day of , between [ENTER FULL NAME OF CONTRACTOR1 (Contractor), and the City of Miami Beach, Florida (City), for a period of rENTER DURATIONITERM OF AGREEMENq, with an effective starting date of [ 1, and an end date of [ ] (the Term). Scope of WorklServices. This Agreement is for the purpose of providing [PROVIDE BRIEF DESCRIPTIONISUMMARY OF WHAT CONTRACTOR WlLL DO] to the City's [ 1 Department. Specifically, throughout the Term of this Agreement, Contractor shall provide and/or perform the following minimum services: [INSERT DETAILED AND/OR ITEMIZED DESCRIPTION OF WORK AND/OR SERVICES CONTRACTOR WlLL PROVIDE1 2. - Fee. In consideration of the work and/or services to be provided pursuant to this Agreement, the City agrees to pay Contractor a fee, in the not to exceed amount of J FlLL IN TOTAL $AMOUNTI, which shall be paid as follows: JINSERT, IN DETAIL, HOW FEE WlLL BE PAID. INCLUDE WHETHER FEE WlLL BE PAlD HOURLY, WEEKLY. MONTHLY, ETC.; WHETHER IT'S SUBJECT TO CONTRACTOR PROVIDING TIME SHEETS, OR WORK SCHEDULE, ETC.1 The total fee paid to Contractor pursuant to this Agreement shall not exceed [FILL IN A NOT TO EXCEED AMOUNT1 for the Term provided herein. Work Schedule. During the Term of the Agreement, Contractor shall provide the work and/or services in accordance with the following minimum work schedule: JINSERT WORK SCHEDULE (EXAMPLE: MON - FRI, 9 AM TO 5PM, EXCLUDING RECOGNIZED ClTY HOLIDAYS). IF IT'S ANOTHER TYPE OF SCHEDULE SUCH AS ON AN HOURLY BASIS OR ONLY ON SPECIFIC DAYS, BE SPECIFIC AS TO MINIMUM HOURS OR DAYS CONTRACTOR IS EXPECTED TO WORK IN ORDER TO GET PAlD THE FEE SET FORTH HERE.1 Contractor's work and/or services shall be overseen by the following City Departmentllndividual: IlNSERT TITLE, DEPARTMENT OF ClTY (INDIVIDUAL OVERSEEING SERVICES).l Termination. This Agreement may be terminated for convenience of either party, with orwithout cause, by giving written notice to the other party of such termination, which shall become effective upon fourteen (14) days following receipt by the other party of the written termination notice. Upon termination in accordance with this paragraph, the Contractor shall be paid a sum equal to all payments due to himlher up to the date of termination; provided Contractor is satisfactorily continuing to satisfactorily perform all work and/or services up to the date of termination. Thereafter, the City shall be fully discharged from any further liabilities, duties, and terms arising out of, or by virtue of, this Agreement. Indemnification/Hold Harmless. Contractor agrees to indemnify, defend, and hold harmless the City of Miami Beach and its officers, employees and agents, from and against any and all actions, claims, liabilities, losses and expenses, including but not limited to, attorney's fees, for personal economic or bodily injury, wrongful death, loss of or damage to property, at law or in equity, which may arise or be alleged to have arisen from the negligent acts or omissions or other wrongful conduct of Contractor, andlor any and all subcontractors, employees, agents, or any other person or entity acting under Contractor's control, in connection with the Contractor's performance of the work andlor services pursuant to this Agreement. Contractor shall pay all such claims and losses and shall pay all costs and judgments which may arise from any lawsuit arising from such claims and losses, and shall pay all costs and attorney's fees expanded by the City in defense of such claims and losses, including appeals. The parties agree that one percent (I %) of the total compensation to Contractor for performance of the work and/or services under this Agreement is the specific consideration from the City to Contractor for the Contractor's agreement to indemnify and hold the City harmless, as provided herein. Contractor and the City hereby agree and acknowledge that this indemnity provision is intended to and shall survive the termination (or earlier expiration) of this Agreement. Limitation of Liability. The City desires to enter into this Agreement only if in so doing the City can place a limit on City's liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of the compensationlfee to be paid to Contractor pursuant to this Agreement, less any amounts actually paid by the City as of the date of the alleged breach. Contractor hereby expresses his willingness to enter into this Agreement with Contractor's recovery from the City for any damage action for breach of contract to be limited to a maximum amount equal to the compensationlfee to be paid to Contractor pursuant to this Agreement, less any amounts actually paid by the City as of the date of the alleged breach. Accordingly, and notwithstanding any other term or condition of this Agreement, Contractor hereby agrees that the City shall not be liable to Contractor for damages in the amount ino excess of the compensationlfee to be paid to Contractor pursuant to this Agreement, less any amounts actually paid by the City as of the date of the alleged breach, for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this subparagraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon City's liability as set forth in Section 768.28, Florida Statutes. All notices and communications in writing required or permitted hereunder may be delivered personally to the representatives of the Contractor and the City listed below or may be mailed by registered mail, postage prepaid (or airmailed if addressed to an address outside of the city of dispatch). Until changed by notice in writing, all such notices and communications shall be addressed as follows: CONTRACTOR: [INSERT NAME OF CONTRACTOR] [INSERT ADDRESS OF CONTRACTOR] [INSERT PHONE NUMBER] CITY: [INSERT DEPARTMENT DIRECTOR] City of Miami Beach [INSERT DEPARTMENT NAME] 1700 Convention Center Drive Miami Beach, FL 331 39 (305) Notices hereunder shall be effective: If delivered personally, on delivery; if mailed to an address in the city of dispatch, on the day following the date mailed; and if mailed to an address outside the city of dispatch on the seventh day following the date mailed. Venue. This Agreement shall be governed by, and construed in accordance with, the la:*/s of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in state court, and the U.S. District Court, Southern District of Florida, if in federal court. BY ENTERING INTO THlS AGREEMENT, CITY AND CONTRACTOR EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THlS AGREEMENT. 9. Duty of CarelCompliance with Applicable Laws. With respect to the performance of the work and/or service contemplated herein, Contractor shall exercise that degree of skill, care, efficiency and diligence normally exercised by reasonable persons and/or recognized professionals with respect to the performance of comparable work and/or services. In its performance of the work and/or services, Contractor shall comply with all applicable laws, ordinances, and regulations of the City, Miami-Dade County, the State of Florida, and the federal government, as applicable. The Contractor agrees to adhere to and be governed by the Miami-Dade County Conflict of Interest Ordinance, as same may be amended from time to time; and by any and all ethicslstandards of conducts as referenced in Chapter 2 of the City of Miami Beach Code (as may be amended from time to time). Contractor covenants that it presently has no interest and shall not acquire any interest, direct or indirectly which should conflict in any manner or degree with the performance of the work andlor services. Contractor further covenants that in the performance of work andlor services under this Agreement, no person having any such interest shall knowingly be employed by the Contractor. No member of or delegate to the Congress of the United States shall be admitted to any share or part of this Agreement or to any benefits arising there from. Ownership of DocumentslPatents and Copvrights. Any and all documents prepared by Contractor pursuant to this Agreement are related exclusively to the work andlor services described herein, and are intended or represented for ownership by the City. Any re-use distribution, or dissemination of same by Contractor, other than to the City, shall first be approved in writing by the City Manager, which approval, if granted at all, shall be at the City Manager's sole and absolute discretion. Any patentable and/or copyrightable result arising out of this Agreement, as well as all information, specifications, processes, data and findings, shall be made available to the City, in perpetuity, for public use. No reports, other documents, articles or devices produced in whole or in part under this Agreement shall be the subject of any application for patent or copyright by or on behalf of the Contractor (or its employees or sub-contractors, (if any) without the prior written consent of the City Manager, which consent, if given at all, shall be at the Manager's sole and absolute discretion. This section intentionally left blank. Liability for Sub-contractors. Contractor shall be liable for its work andlor services, responsibilities and liabilities under this Agreement and the services, responsibilities and liabilities of any sub-contractors (if any), and any other person or entity acting under the direction or control of Contractor (if any). When the term "Contractor" is used in this Agreement, it shall be deemed to include any sub-contractors (if any) andlor any other person or entity acting under the direction or control of Contractor (if any). All sub-contractors (if any) must be approved in w:;:incj by the City Manager prior to their engagement by Contractor, which approval, if granted at all, shall be at the City Manager's sole and absolute discretion. Independent ContractorlNo Joint Venture. THlS AGREEMENT SHALL MOT CONSTITUTE OR MAKE THE PARTIES A PARTNERSHIP OR JOINT VENTURE. FOR THE PURPOSES OF THlS AGREEMENT, THE CONTRACTOR SHALL BE DEEMED TO BE AN INDEPENDENT CONTRACTOR, AND NOT AN AGENT OR EMPLOYEE OF THE CITY, AND SHALL NOT ATTAIN ANY RIGHTS OR BENEFITS UNDER THE CIVIL SERVICE OR PENSION ORDINANCE OF THE CITY, OR ANY RIGHT GENERALLY AFFORDED CLASSIFIED OR UNCLASSIFIED EMPLOYEES INCLUDING ANNUAL AND SlCK DAY ACCRUAL. FURTHER, THE CONTRACTOR SHALL NOT BE DEEMED ENTITLED TO FLORIDA WORKER'S COMPENSATION BENEFITS AS AN EMPLOYEE OF THE CITY OR ACCUMULATION OF SlCK OR ANNUAL LEAVE. Waiver of Breach. A party's failure to enforce any provision of this Agreement shall not be deemed a waiver of such provision or modification of this Agreement. A party's waiver of any breach of a provision of this Agreement shall not be deemed a waiver of any subsequent breach and shall not be construed to be a modification of the terms of this Agreement. Severance. In the event this Agreement or a portion of this Agreement is found by a court of competent jurisdiction to be invalid, the remaining provisions shall continue to be effective unless City elects to terminate this Agreement. Joint Preparation. The parties hereto acknowledge that they have sought and received whatever competent advice and counsel as was necessary for them to form a full and complete understanding of all rights and obligations herein and that the preparation of this Agreement has been a joint effort of the parties, the language has been agreed to by parties to express their mutual intent and the resulting document shall not, solely as a matter of judicial construction, be construed more severely against one of the parties than the other. Entire A~reement. This writing and any exhibits and/or attachments incorporated (andlor otherwise referenced for incorporation herein) embody the entire Agreement and understanding between the parties hereto, and there are no other agreements and understandings, oral or written, with reference to the subject matter hereof that are not merged herein and superseded hereby. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed by the respective officials thereunto duly authorized, this date and year first above written. FOR CITY: CITY OF MIAMI BEACH, FLORIDA ATTEST: By: City Clerk FOR CONTRACTOR: WITNESS: By: Print Name By: Print Name Approved: Department Director Office of Budget and Performance Improvement Human Resources City Manager JINSERT CONTRACTOR NAME1 Signature Print Name 1 Title Approved as to form & language & for execution. City Attorney Date COMMISSION ITEM SUMMARY Condensed Title: A Resolution adopting and appropriating funds for the Fiscal Year 201 1/12 Police Special Revenue Account Budget in the amount of $50,000. Key Intended Outcome Supported: I Increase Resident and Business ratings of Public Safety. I Su~~orting Data (Surveys, Environmental Scan, etc.): Accordinq to the Center For Research and I ~ubl'ic policy ~esidential Gnd Business satisfaction survey of City of Miami Beach residents in 2009, indicated that their three top most important areas of for the City of Miami Beach to address in an effort to improve public safety throughout the City is Preventing Crime 44.9%, Enforcing Traffic Laws 36.1% and Increasing Visibility of Police in Neighborhoods 32.4%, Issue: Shall the Mayor and City Commission adopt and appropriate funds for the purchase of miscellaneous items for the Miami Beach Police Department? Item Summary/Recommendation: I Unclaimed evidence totaling $50,000 has been in the custody of the Police Property and Evidence Unit I past the sixty (60) day waiting period. These funds have now been placed in the Police Special Revenue Account Fund as provided by Resolution 90-19931, passed on March 7, 1990. The Administration recommends that the Mayor and City Commission adopt the budget for the Fiscal Year 201 1/12 Police Special Revenue Account in the amount of $50,000 and appropriate funds. Advisorv Board Recommendation: Financial Information: I I Clerk's Office Legislative Tracking: vett Rattigan, Miami Beach Police Department Source of Funds: m: OBPl MIAMI BEACH Financial Impact Summary: I 1 2 3 4 Total Account Special Revenue Account 195.8000.369993 Amount $ 50,000 $ 50,000 Approved MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti ! Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzaleq City Manager DATE: September 27, 201 1 SUBJECT: A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROPRIATING FUNDS FOR THE FISCAL YEAR 2011112 POLICE SPECIAL REVENUE ACCOUNT BUDGET IN THE AMOUNTOF $50,000 FOR THE PURCHASE OF ITEMS SET FOURTH IN EXHIBIT "A," AND SUCH ACCOUNT FUNDED BY UNCLAIMED EVIDENCE CURRENTLY HELD IN THE POLICE SPECIAL REVENUE ACCOUNT. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS Florida Statute 705.105 "Procedure for Unclaimed Evidence" provides that unclaimed evidence in the custody of the court from a criminal proceeding, or seized as evidence by and in the custody of a law enforcement agency, shall become the property of that law enforcement agency 60 days after the conclusion of the proceedings. In March 1990, a special account was established titled "Police Special Revenue Account" in the Special Revenue Fund. Funds for this account are made available in the Police Property and Evidence Unit, as unclaimed evidence, in accordance with Florida Statute 705.105 outlined above. Unclaimed evidence totaling $50,000 has been in the custody of the Police Property and Evidence Unit past the sixty (60) day waiting period. These funds have now been placed in the Police Special Revenue Account Fund, as provided in Resolution 90-1 9931, passed on March 7, 1990. CONCLUSION The Administration recommends that the Mayor and City Commission adopt the Budget for the Fiscal Year 201 1/12 Police Special Revenue Account, and appropriate the amount of $50,000 to provide funds for the purchase of miscellaneous items for the Police Department listed n Exhibi e JMG:CN:RM:MR RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROPRIATING FUNDS FOR THE FISCAL YEAR 2011/2012 POLICE SPECIAL REVENUE ACCOUNT BUDGET IN THE AMOUNT OF $50,000.00 FOR THE PURCHASE OF THOSE ITEMS SET FORTH IN EXHIBIT "A," AND SUCH ACCOUNT FUNDED BY UNCLAIMED EVIDENCE CURRENTLY HELD IN THE POLICE SPECIAL REVENUE ACCOUNT. WHEREAS, Section 705.105 of the Florida Statutes, sets forth the procedure for unclaimed evidence, which is seized by, and in the custody of the Miami Beach Police Department, and shall vest permanently in the Miami Beach Police Department sixty (60) days after the conclusion of the proceeding; and WHEREAS, $50,000.00 was seized, and has been in the custody of the Miami Beach Police Department Property and Evidence Unit in excess of the statutory period set forth in Section 705.105 of the Florida Statutes; and WHEREAS, said funds have vested permanently in the Miami Beach Police Department, and have now been placed in the Police Special Revenue Account Fund, as provided by Resolution No. 90-1 9931, adopted on March 7, 1990. WHEREAS, the Miami Beach Police Department seeks to purchase those items identified on Exhibit "A." NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, adopting and appropriating funds for the fiscal year 2011/2012 Police Special Revenue Account budget in the amount of $50,000.00 for the purchase of those items set forth in Exhibit "A," and such account funded by unclaimed evidence currently held in the Police Special Revenue Account. PASSED and ADOPTED this day of September, 201 1. ATTEST BY: MAYOR MATTI HERRERA BOWER ROBERT PARCHER, ClTY CLERK APPROVED AS TO EXHIBIT "A COMMUNITY ACTIVITIES MIAMI BEACH POLICE DEPARTMENT SPECIAL REVENUE ACCOUNT BUDGET FISCAL YEAR 201 1/12 LAW ENFORCEMENT EQUIPMENT AND SUPPLIES FACILITIES MAINTENANCE TOTAL COMMISSION ITEM SUMMARY Condensed Title: A Resolution adopting and appropriating funds for the Fiscal Year 201 1/12 Police Confiscation Trust Fund Budget in the amount of $946,800 to be funded from the proceeds of the State and Federal Confiscated Funds. Key Intended Outcome Supported: I Increase Resident and Business ratings of Public Safety. I Supporting Data (Surveys, Environmental Scan, etc.): According to the Center For Research and Public Policv Residential and Business Satisfaction Survey of City of Miami Beach residents in 2009, indicated that their three top most important areas of for the City of Miami Beach to address in an effort to improve public safety throughout the City is Preventing Crime 44.9%, Enforcing Traffic Laws 36.1% and Increasing Visibility of Police in Neighborhoods 32.4%, Issue: Shall the Mayor and City Commission adopt and appropriate funds for the Fiscal Year 201 1/12 Police Confiscation Trust Fund Budget? Item SummarylRecommendation: The Chief of Police has reviewed and identified the needs for the appropriation and has established that the expenditures of forfeiture funds are in compliance with Section 932.7055, Florida State Statutes and the Guide to Equitable Sharing of Federally Forfeited Property for Local Law Enforcement Agencies. The Administration recommends that the Mayor and City Commission adopt the Budget for the Fiscal Year 201 1/12 Police Confiscation Trust Fund Budget and appropriate funds in the amount of $946,800. Advisory Board Recommendation: I NIA 'inancia1 Information: City Clerk's Office Legislative Tracking: auvett Rattigan, Miami Beach Police Department 2 3 4 OBPl Total MIAMIBEACH Account Confiscation Funds: AGENDA STEM DATE -1 Amount Source of Funds: Financial Impact Summary: $416,800 $530,000 $946,800 1 607-8000-351 21 0 State funds-Confiscation 603-8000-351 21 1 Federal-Justice funds @ MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 331 39, www.rniamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti :! Herrera Bower and FROM: Jorge M. Gonzalez, City Manager DATE: September 27, 201 1 SUBJECT: A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROPRIATING FUNDS FOR THE POLICE CONFISCATION TRUST FUND BUDGET FOR FISCAL YEAR 2011112 IN THE AMOUNT OF $946,800 TO BE FUNDED FROM STATE CONFISCATED FUNDS ($416,800) AND FEDERAL-JUSTICE CONFISCATED FUNDS ($530,000). ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS Florida Statute 932.7055 provides for expenditures of forfeiture funds for law enforcement purposes. The Miami Beach Chief of Police, Carlos Noriega, has reviewed and identified the need for the appropriation and has established that the expenditures of forfeiture funds are in compliance with Section 932.7055, Florida State Statutes, and the Guide to Equitable Sharing of Federally Forfeited Property for Local Law Enforcement Agencies. These forfeiture funds have been deposited in the Police Confiscation Trust Fund. The City has complied with all statutory procedures involved in the transaction of these funds. CONCLUSION The Administration recommends that the Mayor and City Commission adopt the Budget for the Fiscal Year 201 1/12 Police Confiscation Trust Fund and appropriate funds in the amount of $946,800 to be funded from the proceeds of State and Federal Confiscation Fundsas listed in Exhibit "g. "EXHIBIT A" MIAMI BEACH CONFISCATED TRUST FUND BUDGET FISCAL YEAR 201 1/12 FEDERAL CONFISCATION FUNDSJustice: ORGANIZATIONAL TRAINING:- 1) ORGANIZATIONAL DEVELOPMENT TRAINING 2) SPECIAL TRAININGITRAVEL - OFF-SITE TESTING AND EVALUATION 3) TRAINING SUPPLEMENT TO LETTF LAW ENFORCEMENT EQUIPMENT - GPS IN VEHICLES SKY WATCH OBSERVATION TOWER POLE CAMERAS FOR CONDUCTING VIDEO SURVEILLANCE CRIME SCENE DIGITAL EQUIPMENT TOTAL OF FEDERAL CONFISCATION FUNDS Justice: "EXHIBIT A CONTINUED" MIAMI BEACH CONFISCATED TRUST FUND BUDGET FISCAL YEAR 201 1/12 STATE FUNDS: COST CONNECTED WITH THE PROSECUTION AND PROCESSING OF STATE FORFEITURE CASES CRIME PREVENTION INITIATIVES & SCHOOL LIAISON PROJECTS CRIME SCENE LATENT PRINT EXAMINER SALARY CRIME SCENE PROCESSING PLATFORM SUB-TOTAL OF STATE FUNDS GRANT MATCH: GRANT SALARY MATCH - Victims Advocate - portion not covered by State Grant (VOCA) GRANT MATCH FOR SIMULATOR - Warranty not covered by the Grant. GRANT MATCH - LAW ENFORCEMENT EQUIPMENT - SKY WATCH DOMESTIC VIOLENCE OPERATING BUDGET SUPPLEMENT Due to decreases in State funding for domestic violence initiatives, grant only covers part of the salary. This supplemental amount covers incidentals such as emergency transportation, food and lodging for victims. BULLETPROOF VEST PARTNERSHIP GRANT, Fiscal Year 2012 AR RIFLE PROGRAMIINITIATIVE-City's match for reimbursement of rifles at $500. SUB-TOTAL OF STATE FUNDS (Grant Match) TOTAL OF STATE FUNDS: EXHIBIT "B" CERTIFICATION I, Carlos Noriega, Chief of Police, City of Miami Beach, do hereby certify that the aforementioned proposed request for expenditures from the City of Miami Beach Police Confiscation Trust Fund, for the 2011/2012 fiscal year providing funds for expenditures, complies with the provisions of Section 932.7055(4)(a), Florida Statutes, and the Guide to Equitable Sharing of Federally Forfeited Property for Local Law Enforcement Agencies. fl Carlos Noriega, chief jd~olice Police ~epartment v RESOLUTION TO BE SUBMITTED COMMISSION ITEM SUMMARY Condensed Title: A Resolution adopting and appropriating funds for the Fiscal Year 201 1/12 Police Training & School Resources Fund Budget in the amount of $30,000. (ey Intended Outcome Supported: Increase Resident and Business ratings of Public Safety. Supporting Data (Surveys, Environmental Scan, etc.): According to the Center For Research and Public Policy Residential and Business Satisfaction Survey of City of Miami Beach residents in 2009, indicated that their three top most important areas of for the City of Miami Beach to address in an effort to improve public safety throughout the City is Preventing Crime 44.9%, Enforcing Traffic Laws 36.1 % and Increasing Visibility of Police in Neighborhoods 32.4%, .----. Shall the Mayor and City Commission adopt and appropriate funds for education of Miami Beach Police Department personnel? Item SummarylRecommendation: The Police Training & School Resources Fund provides funds for the education of police personnel at various schools, conferences, and workshops and for the purchase of trainingloperational supplies in accordance with guidelines established by the Division of Criminal Justice Standards and Training, as provided by Section 938.15, Florida Statutes; the source of such funds being court costs from criminal proceedings. In accordance with Florida Statute, Section 938.15, Criminal Justice Trust Fund, such funds are projected to be received amounting to $30,000. The Administration recommends that the Mayor and City Commission adopt the budget for the Fiscal Year 201 1/12 Police Training & School Resources Fund and appropriate funds in the amount of $30,000. I I Advisory Board Recommendation: N/A I Financial Information: I I I Resources ~un'b 2 1 1 608-8000-351 300 J I Approved I I I Financial Impact Summary: Account Police Training & School Source of I I OBPl I I City Clerk's Office Legislative Tracking: 1 Mauvett Rattigan, Miami Beach Police Department Amount I I Total I $ 30,000 MIAMIBEACH Funds: I I $ 30,000 MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 27, 201 1 w SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROPRIATING FUNDS FOR THE FISCAL YEAR 2011112 POLICE TRAINING & SCHOOL RESOURCES FUND BUDGET IN THE AMOUNT OF $30,000. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS Florida Statute, Section 938.1 5, entitled "Criminal Justice Education for Local Government", provides for funds to be made available to the law enforcement agency for expenditures related to criminal justice education degree programs and training courses. The Police Training & School Resources Fund provides funds for the education of police personnel at various schools, conferences, and workshops and for the purchase of training, operational supplies in accordance with guidelines established by the Division of Criminal Justice Standards and Training, as provided by Florida Statute, Section 938.15; the source of such funds being court costs from criminal proceedings. In accordance with Florida Statute, Section 938.1 5, entitled "Criminal Justice Education for Local Government, such funds are projected to be received amounting to $30,000 such funds being court costs from criminal proceedings. CONCLUSION The Administration recommends that the Mayor and City Commission adopt the budget for the Fiscal Year 201 111 2 Police Training & School Resources Fund and appropriate funds in the amount of $30,000. RESOLUTION NO. A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROPRIATING FUNDS FOR THE FISCAL YEAR 201 11201 2 POLICE TRAINING & SCHOOL RESOURCES FUND BUDGET IN THE AMOUNT OF $30,000.00. WHEREAS, the City of Miami Beach is authorized to assess an additional $2.00 for expenditures for criminal justice education degree programs and training courses for officers and support personnel of the Miami Beach Police Department pursuant to Section 938.15 of the Florida Statutes; and WHEREAS, the Police Training and School Resources Fund is currently funded with the assessed criminal justice education expenditures for the City of Miami Beach pursuant to Section 938.15 of the Florida Statutes, in the amount of $30,000.00; and WHEREAS, the City of Miami Beach Police Department intends to utilize the $30,000.00 for those purposes as authorized pursuant to Section 938.15 of the Florida Statutes, and the $30,000.00 shall be expended from the Police Training and School Resources Fund for education degree programs and training courses of those officers and support personnel of the Miami Beach Police Department. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby adopts and appropriates the fiscal year 201 112012 Police Training & School Resources Fund budget in the amount of $30,000.00. PASSED and ADOPTED this day of September, 201 1. ATTEST BY: MAYOR MATTI HERRERA BOWER ROBERT PARCHER, ClTY CLERK nAPPRovED RM 8( LANGUAGE As To THIS PAGE INTENTIONALLY LEFT BLANK COMMISSION ITEM SUMMARY Condensed Title: A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, Adopting and Appropriating the Fourth Amendment to the Police Confiscation Trust Fund Budget for Fiscal Year 201011 1 in the amount of $61,489 to be funded from the proceeds of State Confiscated Funds. (ey Intended Outcome Supported: Increase Resident and Business ratings of Public Safety. Supporting Data (Surveys, Environmental Scan, etc.): According to the Center For Research and Public Policy Residential and Business Satisfaction Survey of City of Miami Beach residents in 2009, indicated that their three top most important areas of for the City of Miami Beach to address in an effort to improve public safety throughout the City is Preventing Crime 44.9%, Enforcing Traffic Laws 36.1% and Increasing Visibility of Police in Neighborhoods 32.4%, Issue: Shall the Mayor and City Commission adopt and appropriate the fourth amendment to the Police Confiscation Trust Fund Budget for Fiscal Year 201 011 I? Item SummarylRecommendation: The Chief of Police has reviewed and identified the needs for the appropriation and has established that the expenditures of forfeiture funds are in compliance with Section 932.7055, Florida State Statutes and the Guide to Equitable Sharing of Federally Forfeited Property for Local Law Enforcement Agencies. The Administration recommends that the Mayor and City Commission adopt the fourth amendment to the Police Confiscation Trust Fund Budget for Fiscal Year 201 011 1 for victim's Advocate Salary Grant Match ($42,300) and the payment of Legal and Administrative Fees ($1 9,189) totaling $61,489. Advisory Board Recommendation: NIA I Financial Information: City Clerk's Office Legislative Tracking: Mauvett Rattigan, Miami Beach Police Department 2 3 4 OBPl Total Account Confiscation Funds: MIAMIBEACH Amount Source of Funds: Financial Impact Summary: $61,489 $61,489 Sign-Offs: 1 607-8000-351 21 0 State funds City Manager c Department Direcf6q Chief Carlos Noriega / \/ \ Assistant City Manager MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.rniamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti~ Herrera Bower and Members of thflity Commission FROM: Jorge M. Gonzalez, City Manager T?'?) DATE: September 27, 201 1 SUBJECT: A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROPRIATING THE FOURTH AMENDMENT TO THE POLICE CONFISCATION TRUST FUND BUDGET FOR FISCAL YEAR 2010111, IN THE AMOUNT OF $61,489, TO BE FUNDED FROM THE PROCEEDS OF STATE CONFISCATED FUND. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS Florida Statute 932.7055 provides for expenditures of forfeiture funds for law enforcement purposes. Chief of Police, Carlos Noriega, has reviewed and identified the need for the appropriation and has established that the expenditures of forfeiture funds are in compliance with Section 932.7055, Florida State Statutes, and the Guide to Equitable Sharing of Federally Forfeited Property for Local Law Enforcement Agencies. These forfeiture funds have been deposited in the Police Confiscation Trust Fund. The Victims Advocate is assigned to work with victims of domestic violence, and is an integral part of criminal investigations. However, State grant funding for this position has been decreased, and as such Confiscation Fund in the sum of $42,300 should be utilized to pay the portion of the salary that is not covered by the grant. There are legal and administrative costs incurred in the City Attorney's Office in claiming and obtaining these funds. The City Attorney's Office has been instrumental in obtaining over $76,757 through State-related Confiscations for the Miami Beach Police Department. Significant staff time and costs have been devoted to this endeavor. As such, the Confiscation Fund will pay the sum of $19,189 for Legal and Administrative Fees associated with claiming and obtaining State-related confiscated funds. CONCLUSION The Administration recommends that the Mayor and City Commission adopt the Fourth Amendment to the Operating Budget for the Police Confiscation Trust Fund for Fiscal Year 201011 1 in the amount of $61,489, to provide for the expenses listed in Exhibit "A. d F~R JMGICNIRMIMR Certification I, Carlos Noriega, Chief of Police, City of Miami Beach, do hereby certify that the aforementioned proposed request for expenditures from the City of Miami Beach Police Confiscation Trust Fund, for the 2010/2011 fiscal year providing funds for Legal and Administrative Fees complies with the provisions of Section 932.7055(4)(b), Florida Statutes, and the Guide to Equitable Sharing of Federally Folfeited Property for Local Law Enforcement Agencies. Police Department RESOLUTION NO. A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROPRIATING THE FOURTH AMENDMENT TO THE POLICE CONFISCATION TRUST FUND BUDGET FOR FISCAL YEAR 2010/2011 IN THE AMOUNT OF $61,489.00, FOR THE APPROPRIATION AND EXPENDITURE OF THOSE ITEMS SET FORTH IN EXHIBIT "A," AND SHALL BE FUNDED FROM THE PROCEEDS OF STATE CONFISCATED FUNDS. WHEREAS, Section 932.7055 of the Florida Statutes, sets forth and establishes the purpose and procedures that must be utilized for the appropriation and expenditure of the Police Confiscation Trust Fund; and WHEREAS, the City Attorney's Ofice has successfully obtained $76,757.00 in confiscated funds for the City of Miami Beach Police Department pursuant to Section 932.701 of the Florida Statutes, known as the Florida Contraband Forfeiture Act; and WHEREAS, the City Attorney's Office has incurred significant staff time and costs in association with these various forfeiture proceedings on behalf of the City of Miami Beach Police Department, which amounts to a total of $19,189.00 in legal administrative fees, costs and expenses; and WHEREAS, the City of Miami Beach recognizes that certain individuals have specific expertise in working with domestic violence victims, and are considered to be an integral part of the criminal investigation process by the Miami Beach Police Department; and WHEREAS, the City of Miami Beach, by and through the Miami Beach Police Department, requires this specialized and additional expertise, and is in need of an individual who is a victim advocate pertaining to domestic violence criminal investigations, which can be funded from the Police Confiscation Trust Fund in the amount of $42,300.00; and WHEREAS, the Chief of Police of the City of Miami Beach has determined that the need for appropriation and expenditures exist, and that such appropriation and expenditure is not being used to meet normal operating expenses of the Miami Beach Police Department; and WHEREAS, this appropriation and expenditure of forfeiture funds is in compliance with the requirements of Section 932.7055 of the Florida Statutes, and the Guide to Equitable Sharing of Federally Forfeited Property for Local Law Enforcement Agencies; and WHEREAS, funds in the amount of $61,489.00 are available in the Police Confiscation Trust Fund, and shall be appropriated and expedited as set forth in Exhibit "A." STATE- FEDERAL- TOTAL- CURRENT BUDGET $266,777 340,500 $607,277 INCREASE $61,489 AMENDED BUDGET $328,266 340.500 $668,766 NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND ClTY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission for the City of Miami Beach hereby adopt and appropriate the fourth amendment to the Police Confiscation Trust Fund budget for fiscal year 2010/2011 in the amount of $61,489.00, for the appropriation and expenditure of those items set forth in Exhibit "A," and shall be funded from the proceeds of State confiscated funds. PASSED and ADOPTED this day of September, 201 1. ATTEST: MAYOR MATTI HERRERA BOWER ROBERT PARCHER, ClTY CLERK APPROVED AS TO n FORM & LANGUAGE EXHIBIT "A" MIAMI BEACH POLICE DEPARTMENT CONFISCATION TRUST FUND BUDGET FOURTH AMENDMENT FISCAL YEAR 201011 1 STATE FUNDS: Victim's Advocate Salary Grant Match Administrative and Legal Fees associated with collecting confiscation revenues, by the Legal Department. $ 19,189 TOTAL STATE FUNDS: $ 61,489 THIS PAGE INTENTIONALLY LEFT BLANK COMMISSION ITEM SUMMARY Condensed Title: 1 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH. FLORIDA. 1 ADOPTING: 1) THE FINAL AD VALOREM MILLAGE OF 6.2155 MILLS FOR GENERAL OPERATING PURPOSES; WHICH IS FIVE AND THREE-TENTHS PERCENT (5.3%) MORE THAN THE "ROLLED-BACK RATE OF 5.9029 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.2884 MILLS. Key Intended Outcome Supported: Minimize taxes; Control Costs of payroll including salary and fringes; ensure expenditure trends are sustainable over the long term; Improve the City's overall financial health and maintain overall bond rating; Increase community satisfaction with city services In the 2009 survey, 65% of residents and 55% of businesses rated the value of city services for tax dollars paid as excellent or good, and higher (73.5% excellent or good) among those residents understanding that only a portion of their property tax bill goes to fund city services. Resident ratings improved 19% compared to 2007 and 15% compared to 2005. Business ratings remain steady compared to 2007, but improved by 14% compared to 2005. Over the last several years, the City of Miami Beach has adopted budgets that provided tax and fee relief while at the same time providing improving services that address community priorities (e.g. public safety, cleanliness, landscaping and beautification, recreation and cultural arts programming, renewal and replacement funding for our facilities, and buildingldevelopment functions). In FY 2007108 alone, the property tax rate declined by approximately 1.8 mills, with savings to the average property owner of over $400. In addition, in FY 2005106 and FY 2006107, the City funded $200 and $300 "homeowner dividends" paid to homesteaded property owners in the City. *However, recent years have been more challenging due to declines in property values and increasing costs, particularly pension costs. Since FY 2007108, property values have declined $4.9 billion, approximately 18 percent, despite almost $3 billion in new construction added to the roll. Without the new construction, the decline in values would be even greater, at 29 percent. Outside the City Center RDA, which impacts General Fund Property Tax revenues, the decline in values is even more significant at 20 percent, even after new construction. The July 1, 2010 Certification of Taxable Value from the Miami-Dade County Property Appraiser reflects a more modest decline of $0.1265 billion or 0.6 percent decline in property values, and a decline of 1.2 percent excluding new construction. The decline outside the City Center Redevelopment area which impacts General Fund property tax revenues was 0.8 percent. Issue: [ Shall the Mayor and City Commission adopt the resolution? I Item SummarylRecommendation: The total o~eratina millaae is kent flat from FY 2010/11 at 6.2155 mills, including a general operating millage rate of 6.1072 and a General Fund Ca~ital Renewal and Re~lacement millaae of 0.1083. The voted debt service millaae I rate is increased from 0.2870 to 0.2884. Advisory Board Recommendation: I City Clerk's Office Legislative Tracking: I I Financial Information: DATE 9-%77-11 Account Source of Funds: - OBPl Financial Impact Summary: The combined millage rate overall remains approximately 2.2 mills lower than it was in FY 1999100. In addition, the millage rate is approximately 1.2 mills lower than it was in FY 2006107, when property values were similar to the July 1, 201 1 certified values, resulting in a reduction of the overall tax levy of about $1 million from the budgeetd tax level the prior year and approximately $29 million from FY 2006107. I 2 Total Amount MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 331 39, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 27, 201 1 SUBJECT: A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ADOPTING: I) THE FINAL AD VALOREM MILLAGE OF 6.2155 MILLS FOR GENERAL OPERATING PURPOSES, WHICH IS FIVE AND THREE- TENTHS PERCENT (5.3%) MORE THAN THE "ROLLED-BACK RATE OF 5.9029 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.2884 MILLS FOR FISCAL YEAR (FY) 201 111 2. ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission adopt the attached Resolution which sets the following: 1) Final adopted millage rates for Fiscal Year (FY) 201 1112 General Operating 6.1072 mills Capital Renewal & Replacement 0.1083 mills Sub-Total Operating Millage 6.21 55 mills (6.21 55 FY 201 011 1, 0.0 increase) Voted Debt Service Total 0.2884 mills (0.2870 FY 201011 1, 0.0014 increase) 6.5039 mills (6.5025 FY 201011 1, 0.0014 increase) 2) The final adopted combined millage rate of 6.5039 mills is 0.0014 mills more than the 6.5025 combined millage rate for FY 201011 1. The final adopted operating millage rate for FY 201 111 2 is 6.21 55 mills. The final adopted operating millage for FY 201 111 2 is 0.031 26 mills more than the roll-back rate of 5.9029, and thus, the City is required to publish a Notice of Proposed Tax Increase. This notice was duly published in the Miami Herald on Sunday, September 25, 201 1 in accordance with Florida Statues 200.005. The first public hearing on the tentative millage rates and budgets for FY 201 1112 was held on Wednesday, September 14, 201 1. The millage rates presented herein are those which were tentatively adopted at the end of that first public hearing. The rollback rate is the millage rate required to produce the same level of property tax revenues in FY 201 111 2 as collected in FY 201 011 1. The rollback rate is calculated by dividing the prior year property tax revenues by the current year property values, after new construction, major improvements, annexations, deletions and tax increment districts are removed from current year FY 201 1/12 Final Millage Adoption September 27,201 1 Page 2 property values. It is important to note, that the January 1,201 0 tax roll Citywide declined by almost $1.4 billion between the July 1, 2010 valuation and the July 1, 201 1 valuation due to appeals, adjustments, etc,, which resulted in the FY 201 1/12 "roll-back rate" being less than the FY 201011 1 current millage rate, the same as the millage rate proposed for FY 201 1/12. The area outside of City Center RDA declined by almost $1 billion. Under the recently enacted State legislation, the City may elect to approve millage rates above the roll-back rate up to the constitutional cap of 10 mills subject to an extraordinary vote by the Commission or referendum: Option I: A majority of the approval of the Commission Millage is required to approve a millage up to 8.1906 (equivalent to a 0.55% increase in ad valorem proceeds allowed by a majority vote, net of the impact of the Tax Increment Districts). The adjustment of 0.55% reflects the statewide per capita personal income increase for the prior year Option II: A two-thirds approval (5 of 7 votes) of the Commission is required to approve a millage up to 9.0097 (equivalent to a 10% increase in the ad valorem revenues above Option I). . Option Ill: A unanimous approval of the Commission or referendum is required to approve a millage above 9.0097 up to the 10 mill cap PROCEDURE Florida Statutes 200.065 requires that at the conclusion of the second public hearing on the proposed tax rate and budget, the City Commission proceed in the following specific manner: Adopt an ad valorem millage rate for FY 201 111 2 operating purposes and debt service. The statute requires the name of the taxing authority, the "Rolled-backn rate, the percentage increase over the "Rolled-back" rate, and the millage rates be publicly announced before adoption of the millage levy resolution. State statute requires that only the title be read aloud. Adopt a general operating budget for FY 201 1/12. Also included, are budgets for the Enterprise and Internal Service Funds. This is accomplished by adopting a companion Resolution. (See accompanying City Budget Agenda Item). FY 201 111 2 Final Millage Adoption September 27, 201 1 Page 3 SUMMARY The Administration is recommending a total combined millage rate for the City of Miami Beach of 6.5039. The total proposed operating millage remains at 6.2155 mills, including a general operating millage rate of 6.1 072 and a General Fund Capital Renewal and Replacement millage of 0.1 083. The resulting tax levy is almost $1 million less than budgeted in FY 201 011 I. The proposed voted debt service millage rate is adjusted from 0.2870 to 0.2884, an increase of 0.0014 mills, generating approximately $29,231 in additional revenues. It is important to remember that in prior years, the City of Miami Beach significantly reduced tax rates as property values increased. Between FY I999100 and FY 200911 0, total combined City of Miami Beach property tax rates declined approximately 2.8 mills. In FY 2007108 alone, the millage rate declined by approximately 1.8 mills, with annual savings to the average homesteaded property of over $400. In addition, in FY 2005106 and FY 2006107 the City provided "homeowner dividends" of $200 and $300, respectively, to all homesteaded property owners in the City of Miami Beach. Further, the per capital tax levy was $1,649 for FY 2006107 as compared to an estimated $1,276 for FY 201 011 1, a decrease of $374, per resident, or 23 percent. City of Miami Beach combined millage rates for FY 201 1/12 remain approximately 2.2 mills lower than in FY 1999100 (25 percent), and approximately 1.2 mills lower than 2006107 when property values were similar to today's values, resulting in a net tax levy reduction of approximately $29 million. Miami Beach continues to provide more direct value for tax dollars paid than many other taxing jurisdictions. For example, in FY 2009110, the owner of an average value homesteaded property would have paid approximately $1,700 in property taxes to the City; as compared to approximately $4,000 to the County, the school board and other local taxing jurisdictions; approximately $2,400 in sales taxes to the state; and approximately $7,000 in income taxes to the Federal government. ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH On July 1, 201 1, the City received the "201 1 Certification of Taxable Value" from the Property Appraiser's Office stating that the taxable value for the City of Miami Beach is $21,978,289,928 including $98,792,544 in new construction. The preliminary 201 1 value represents a decrease of $0.1265 billion or 0.6 percent less than the July 1, 2010 Certification of Taxable Value of $22.1 billion, and a decline of 1.2 percent excluding new construction. The comparative assessed values for the Miami Beach Redevelopment Agency City Center redevelopment district increased from $3,404,963,718 to $3,423,353,944, an increase of $0.01 84, billion or a 0.5 percent increase in values over 201 0 certified values. In addition, assessed values within the geographic area formerly known as the South Pointe redevelopment district increased from $3,324,165,654 to $3,446,036,913, an increase of $0.1 21 9 billion, or a 3.7 percent increase in values over 201 0 certified values. As a result, taxable values in the areas outside the City Center RDAISouth Pointe area decreased by 1.7 percent, from $15.3756 billion to $15.1089 billion, a decrease of $0.2667 billion. FY 201 1/1 2 Final Millage Adoption September 27,201 1 Page 4 COMPARATIVE ASSESSED VALUES (in billions) - --. DETERMINING THE OPERATING MILLAGE LEW 1 RDA - City Ctr South Pointe General Fund Total Citywide Citywide Net of City Ctr The first building block in developing a municipal budget is the establishment of the value of one mill of taxation, wherein the mill is defined as $1 .OO of ad valorem tax for each $1,000 of property value. For the City of Miami Beach, this value for each mill is determined by the 201 1 Certification of Taxable Value and has been set at $21,978,290. Florida Statutes permit a discount of up to five percent for early payment discounts, delinquencies, etc. Therefore, the 95 percent value of the mill is $20,879,376. Impacts of Decline in Property Values In FY 201011 1, the operating millage rate for general City operations was adopted at 6.2155. Based on the July I, 201 1 Certification of Taxable Value, 6.2155 mills would generate approximately $129,775,762 in tax revenues, a decrease of $746,668 over FY 201 011 I budgeted property tax revenues Citywide (General Fund, City Center RDA and the South Pointe area). The General Fund property tax revenues will decrease by $0.85 million, if the FY 201 0/11 millage rate is maintained. Jan. 1 2010 Value (in billions) Further, the January, 1 2010 tax roll Citywide declined by almost $1.4. billion between the July 1, 2010 valuation and the July 1,201 1 valuation due to appeals, adjustments, etc., which resulted in the FY 201 1112 "roll-back rate" being less than the FY 201011 1 current millage rate. The area outside of City Center RDA declined by almost $1 billion. Jan. 1 201 I Value (in billions) As ot July I 201 1 (For 201 1/12 Budget) $ 3.4234 3.4460 15.1089 $21.9783 $ 18.555 As ot July I 201 0 (For FY 2010/11 Budget) $ 3.4050 3.3242 15.3756 $ 22.1047 $ 18.700 DETERMINING THE VOTED DEBT SERVICE MILLAGE LEW (GENERAL OBLIGATION DEBT SERVICE FUND) Kev~sed Value (For FY 2010/11 Projection) $ 2.9780 3.1 138 14.6281 $20.7198 $ 17.742 The general obligation debt service payment for FY 201 1112 is approximately $6.02 million. Based on the July 1,201 1 Certified Taxable Value from the Property Appraiser, these bonds would require the levy of a voted debt service millage of 0.2884 mills. This represents an increase of 0.0014 mills. % Change from Prior Year Revised Value 15.0% 10.7% 3.3% 6.1% 4.6% Change in 2010 Values $ (0.4270) (0.2104) (0.7476) $ (1.3849) $ (0.958) Change from 201 0 Value (Budget) $ (in billions) $ 0.01 84 $ 0.1219 $ (0.2667) $ (0.1265) $ (0.1448) % 0.5% 3.7% -1.7% -0.6% -0.8% FY 201 111 2 Final Millage Adoption September 27, 201 1 Page 5 COMBINING THE OPERATING AND VOTED DEBT SERVICE MILLAGE LEVIES Illustrated below is a comparison of the combined millage rates and ad valorem revenues to the City of Miami Beach for FY 2010/11 (final) and FY 201 1/12 (preliminary) including RDA. It is recommended that in the General Fund, 0.1083 mills of the total operating millage continue to be dedicated to renewal and replacement, resulting in approximately $1.76 million in renewal and replacement funding. If these recommended millage rates are tentatively adopted, then the City of Miami Beach's total operating millage will remain unchanged from the current year, and the voted debt service millage will increase by 0.0014 mills. CITY OF MIAMI BEACH MILLAGE LEVY IMPACT ON MIAMI BEACH PROPERTY OWNERS Homesteaded Properties Amendment 10 to the State Constitution took effect on January 1, 1995 and limited the increase in assessed value of homesteaded property to the percentage increase in the consumer price index (CPI) or three percent (3%), whichever is less. For 201 0, the CPI has been determined to be 1.5 percent and therefore, the increase is capped at 1.5% for increased values as of January 1,201 1. The impact of the millage and the CPI adjustment to homesteaded properties will vary significantly based on how much below market value the property is assessed and the taxable value of the property. Properties assessed at market value will not be affected by the 1.5 percent CPI adjustment. As of the 2009 tax roll, the latest roll analyzed, 33 percent of properties were assessed at market value. Overall, based on an analysis of the homesteaded properties in the 2010 tax roll (the latest available from the Miami-Dade County Property Appraiser at this time), the median value of homesteaded property in Miami Beach for 201 1 (as of August 2010) was $1 19,000, and the average $271,000. Applying the decline to the market value of all existing homesteaded properties from the 2010 tax roll, and the 1.5 percent CPI adjustment, the impact of the millage rate adjustment to homesteaded properties would be as shown in the following table. FY 201 1112 Final Millage Adoption September 27,201 1 Page 6 Non-Homesteaded Properties Homesteaded Properties It is anticipated that, overall commercial properties, would reflect a decline based on the overall decline in the property values, although individual properties could vary significantly. Taxable Value City of Miami Beach Taxes Operating Voted Debt Total Miami Beach $ Change in Taxes Operating Voted Debt Total Miami Beach Historical Perspective As stated earlier, in prior years, the City of Miami Beach significantly reduced tax rates as property values increased. Between FY 1999100 and FY 200911 0, property tax rates declined approximately 2.8 mills. In FY 2007108 alone, the property tax rate declined by approximately 1.8 mills, with annual savings to the average homesteaded property of over $400. In addition, in FY 2005106 and FY 2006107, the City funded $200 and $300 "homeowner dividends" paid to homesteaded property owners in the City. * Source: Miami-Dade County Property Appraiser File as of 8117/10 Total Combined Millage FY 201011 1 (as of January 1 2010)* Median I Average $ 119,000 $ 271,000 0 rl m QO h w '0 m - - z e m u rl 0 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 11 12 Fiscal Years FY 2011/12 (as of January 12011) $ 740 34 with 0.6% Decline Median I Average $ 118,286 $ 269,374 $ 735 $ 1,674 34 78 $ 769 $ 1,752 $ (5)s (lo)$ $ (5)s (lo)$ $ 1,684 78 $ 774 $ 1,762 with no change Median I Average $ 119,000 $ 271,000 $ 740 $ 1,684 34 78 $ 774 $ 1,762 - $ - - $ - with 1.5% CPI Median I Average $ 120,785 $ 275,065 $ 751 $ 1,710 35 79 $ 786 $ 1,789 $ 11 $ 26 1 1 $ 12s 27 FY 201 111 2 Final Millage Adoption September 27, 201 1 Page 7 The combined millage rate overall remains approximately 2.2 mills lower than it was in FY 1999100. In addition, the millage rate is almost 1.2 mills lower than it was in FY 2006107, when property values were similar to the July 1,201 1 certified values. As a result, the proposed property tax levy is lower in FY 201 1112 than it was in FY 2006107. Property Values and Tax Levy I '07 '08 '09 '10 '1 1 '12 Property Values +Tax Levy including Debt Property Values, Millage and Property Tax Levy Impact to a average value homesteaded property with CPl adjustment to assessed value I Millage Rates I Budgeted Tax Levy (in millions) I FY 201 111 2 Final Millage Adoption September 27,201 1 Page 8 COMBINING JURISDICTIONAL OPERATING AND DEBT SERVICE MILLAGE LEVIES City of Miami Beach property owners must also pay property taxes to Miami-Dade County, the Miami-Dade County School Board, the Children's Trust, the South Florida Water Management District, and the Florida Inland Navigation District. The countywide tax rate for Miami-Dade County is proposed to decrease from 5.4275 mills to 4.8050 mills; the library tax rate is proposed to decrease from 0.2840 mills to 0.1 795 mills; and the debt service millage decreased from 0.4450 to 0.2850. The proposed tax rate for the Miami-Dade School District is 8.0050; 0.2440 mills less than the prior year millage of 8.2490. The Children's Trust millage is maintained at 0.5 mills. The proposed tax rate for the South Florida Water Management District is 0.4363; 0.1877 mills less than the prior year millage of 0.6240. The proposed tax rate for the Florida Inland Navigation District is 0.0345; unchanged from the FY 2010111 millage. A summary of the tax rate changes is provided in the following table. With the Proposed millage rates for FY 201 111 2, the Miami Beach portion of the FY 201 1112 tax bill is approximately 31 percent of the total bill. Of note, even with the recentlv proposed millaae decreases bv the Countv. the County millaae is 1. I mill less than their millaae in FY 2006/07, as compared to the Citv's proposed millaae which is 1.2 mills less than the Citv millaae in FY 2006/07. Further, the School Board millage is only minimally below the FY 2006107 millage rate, despite the recently proposed decrease. The significant difference in the total overlapping millage rate is a direct result of the City's effort to keep the millage rates as low as possible FY 201 111 2 Final Millage Adoption September 27, 201 1 Page 9 Impact of Combined Tax Rates of Overlapping Jurisdictions on Homesteaded Properties Applying the proposed millage rates to the median and average January 1,201 1 taxable values of $1 19,461 and $277,201, respectively, half of the homesteaded properties would pay less than $2,478 for all taxing jurisdictions combined, while the average taxes generated would be approximately $5,753 per homesteaded property. Of these taxing jurisdictions, the highest component is the Miami-Dade School Board, at $956 for a median value property, and $2,219 for an average valued property. The following table provides examples of changes in property taxes for homesteaded properties as a result of these declines in values, using the proposed tax rates and potential changes from 201 0 values. Impact on Homesteaded Properties Assuming Changes in Taxable Value from January 1,2010 City of Miami Beach Operating Voted Debt Total Miami Beach Miami Dade County Schools Other Total Taxable Value Change in Taxes City of Miami Beach FY 201011 I (as of January 12010)* Median I Average $ 119,000 $ 271,000 FY 2011/12 $ 740 $ 1,684 $ 34 $ 78 $ 774 $ 1,762 $ 733 $ 1,668 $ 982 $ 2,235 $ 138$ 314$ $ 2,627 $ 5,979 11s 26 $ 1 $ 1 120 27 $ (97) $ (219) $ (15) $ (33) $ (21) $ (47) $ (121) $ (272)- Operating Voted Debt Total Miami Beach Miami Dade County Schools Other Total with 1.5% CPI Median I Average $ 120,785 $ 275,065 with 0.6% Decline Median I Average $ 118,286 $ 269,374 $ 735 $ 1,674 34 78 $ 769 $ 1,752 $ 623 $ 1,419 $ 947 $ 2,156 115$ 262$ $ 2,454 $ 5.589 with no change Median I Average $ 119,000 $ 271,000 $ (5) $ (10) , $ (0) $ 0 $ (5) $ (10) $ (1 10) $ (249) $ (35) $ (79) $ (23) $ (52) $ (173) $ (390) $ 740 $ 1,684 34 78 $ 774 $ 1,762 $ 627 $ 1,428 $ 953 $ 2,169 116$ 263$ $ 2,470 $ 5,622 $ - $ (0)s $ (0) $ 0 $ (0) 0 (0)s $ (106) $ (240) $ (29) $ (66) $ (22) $ (51) $ (157) $ (357) $ 751 $ 1,710 35 79 $ 786 $ 1,789 $ 636 $ 1,449 $ 967 $ 2,202 117$ 267 $ 2,506 $ 5,707 FY 201 1/12 Final Millage Adoption September 27,201 1 Page 10 As with the City of Miami Beach millage rates, impacts of the combined jurisdictional millage rates for non-homesteaded properties will likely reflect declines in property values, although individual properties may vary. CONCLUSION The Administration recommends adoption of the attached Resolution which sets both final operating and debt service millage rates for FY 201 1/12. RESOLUTION NO. A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE FINAL AD VALOREM MILLAGE OF 6.2155 MILLS FOR GENERAL OPERATING PURPOSES, WHICH IS FIVE AND THREE-TENTHS PERCENT (5.3%) MORE THAN THE "ROLLED-BACK RATE OF 5.9029 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.2884 MILLS FOR FISCAL YEAR (FY) 2011/12 WHEREAS, on July 13, 2011, the City Commission following a duly noticed public hearing, adopted Resolution No. 201 1-27731, which set the proposed general operating millage rates at 6.2155 mills (excluding debt service) the same level as the the prior year millage for general operating purposes, and 0.2884 mills for debt service; and WHEREAS, Since their peak in FY 2007108, property values have declined approximately $4.9 billion, approximately 18 percent, despite almost $3 billion in new construction added to the roll; and without the new construction, the decline in values would be even greater, at 29 percent; and WHEREAS, on September 14, 201 1 the Mayor and City Commission tentatively adopted the operating millage rate 6.2155 mills for general operating purposes, and 0.2884 mills for debt service; and WHEREAS, Section 200.065, Florida Statutes, requires that at the conclusion of the second public hearing on the City's proposed tax rate and budget, the City Commission: 1) adopt the ad valorem millage rate for FY 201 1/12 operating purposes; and 2) the required Debt Service millage rate; this is accomplished by publicly announcing the name of the taxing authority, the "Rolled-back rate, the percentage increase of the "Rolled-back rate and the millage rates before adoption of the millage levy resolution; and NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE ClTY OF MlAMl BEACH, FLORIDA, that pursuant to Section 200.065, Florida Statutes, there is hereby levied a tax for the Fiscal Year (FY) 201 1112, on all taxable and non-exempt real and personal property located within the corporate limits of the City of Miami Beach, Florida, as follows: For the purpose of operating the government of the City, the rate assigned amounts to 6.2155 mills. Also included are appropriate reserves and contingencies, which are not limited to reserves for tax discounts and abatements of uncollected taxes. The millage rate reflected is five and three-tenths percent (5.3%) more than the "Rolled-back" rate of 5.9029 mills. For the purpose of providing payment on the principal and interest portions of the General Obligation Bond Debt outstanding, the rate assigned amounts to 0.2884 mills. PASSED and ADOPTED this 27th day of September, 201 1. ATTEST: MAYOR CITY CLERK ~DASrC) FORM & LANGUAGE ~LFOREXECUTlON * CIN OF MIAMI BEACH NOTlCE OF A SPECIAL Ci~ COMMISSBON MEETING AND PUBLIC HEARINGS NOTICE IS HEREBY given that a Special Commission Meeting regarding the 2nd Proposed Budget Public Hearings for FY 2011/2012 will be held by the City Commission of the City of Miami Beach, Florida, on TUESDAY, September 27, 2011, commencing at 5:00 P.M., in the Commission Chambers, 3rd floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. LC 5:01 p.m. The second public hearing adopting the millage rate and budget for FY 2011/2012 for the City of Miami Beach. 5:02 p.m. The second public hearing adopting the proposed millage rate and budget for FY 2011/2012 for the Normandy Shores Local Government Neighborhood lmprovement District. I In addition, the City Commission will be discussing other City related business at this meeting. Inquiries concerning this meeting should be directed to the Office of Budget and Performance lmprovement at (305) 673-7510. Robert E. archer, City Clerk City of Miami Beach Pursuant to Section 286.01 05, Fla. Stat., the City hereby advises the public that: if a person decides to appeal any decision made by the City Commission with respect to any matter considered at its meeting or its hearing, such person must ensure that a verbatim record of the proceedings is made,which record includes the testimony and evidence upon which the appeal is to be based. This notice does not constitute consent by the City for the introduction or admission of otherwise inadmissible or irrelevant evidence, nor does it authorize challengesgr appeals not otherwise allowed by law. ( To request this material in accessible format, sign language interpreters, information on access for persons with disabilities, and/or any accommodation to review any document or participate in any city-sponsored proceeding, please contact (305) 604-2489 (voice), (305)673-72180 five days in advance to initiate your request. TP/ users may also call 71 1 (Florida Relay Service). Ad #664 COMMISSION ITEM SUMMARY Condensed Title: A resolution of the Mayor and City Commission of the City Of Miami Beach, Florida, adopting final budgets for the General. G.O. Debt Service. RDA Ad Valorem Taxes. Enter~rise. and lnternal Service Funds for I Fiscal Year 2011112. 1 Key Intended Outcome Supported: I Minimize taxes; Control Costs of payroll including salary and fringes; Ensure expenditure trends are ( I sustainable over the long term; lmprove the City's overall financial health and maintain overall bond rating; I Increase community satkfaction with city services Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2009 community survey, quality of life in the City is rated highly, the City is seen as an 'excellent' or 'good' place to live, work, play or visit, and over %'s of residents would recommend it to others as a place to live. Impressively, 31 of the residential tracking questions from 2007 experienced increases in each of the areas measured by an overall average of approximately 7.0%; and 28 of 32 business tracking questions experienced increases measured by an overall average of approximately 8.8%. Important findings were: Cleanliness of canals/waterways, the job the city is doing to address homelessness, and storm drainage were all identified as areas for improvement, although improved from prior surveys; cleanliness, code enforcement, and arts and culture were identified as services the city should strive not to reduce; and value of service for tax dollars paid, cleanliness of streets, satisfaction with contacting the City government handling of special events, traffic flow, code enforcement, police ratings, condition of roads, availability of public parking, and consistency of inspections were all identified as key drivers of overall satisfaction levels. Issue: Shall the Mayor and City Commission adopt the attached resolution establishing final budgets for the General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, and lnternal Service Funds for Fiscal Year 201 1/12? Item SummarylRecommendation: The FY 201 1/12 Proposed Work Plan and Budget maintains current service priorities for the community, despite property tax rates set at 1.2 mills (16 percent) lower than FY 2006107 when property values were similar to the 201 1 certified values. Advisory Board Recommendation: Financial Information: I source of Amount Account I - - Funds: 1 2 Financial Impact Summary: This budget represents more than $63 million in reductions in predominantly recurring reductions over the last 5 years, and the General Fund Operating budget is 3 percent more than in FY 2006107, in spite of 13 percent growth in the Consumer Price Index (CPI) in a similar period, over 80 percent growth in pension costs, and many new facilities and projects coming on line. ) I OBPl City Clerk's Office Legislative Tracking: $244,731,997 $ 6,021,612 $ 17,010,810 MIAMIBEACH General Fund Operating G.O. Debt Service RDA Funds-Ad Valorem Taxes 4 Total* AGEWDA ITEM $1 56,693,473 $424,457,892 $ 54,349,331 Enterprise Funds *Net of Internal Service Funds Internal Service Funds MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager ?4 DATE: September 27, 201 1 SUBJECT: A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ADOPTING FINAL BUDGETS FOR THE GENERAL, G.O. DEBT SERVICE, RDA AD VALOREM TAXES, ENTERPRISE, AND INTERNAL SERVICE FUNDS FOR FISCAL YEAR 201 1/12 ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission adopt the attached Resolution which establishes final budgets for the General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal Year (FY) 201 1112. PROCEDURE As outlined in the companion General Operating Millage Agenda Item, Section 200.065, Florida Statutes specifies the manner in which budgets are adopted. Following a second public hearing, the millage rate for both the general operating and debt service is adopted, then immediately thereafter, final budgets by fund are adopted. The attached Resolution adopting final operating budgets for the General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, and Internal Service Funds for FY 201 111 2 is therefore presented to you at this time for adoption. ACTIONS TAKEN AT THE FIRST BUDGET HEARING Operating budget millage has no increase - slight adjustment to the debt service millage which is formula-derived using debt service and property values a Water, Sewer, and Stormwater rates remain flat for the second consecutive year - projections just 2 years ago called for annual increases including absorbing the county proposed increase to wholesale customers approximately $732,000 savings to rate payers a Direction given at the first budget hearing to refine the Florida Power and Light franchise agreement with a focus on reducing the franchise property owners would pay estimated $1 million savings The tax levy is $1 million less than budgeted in FY 201011 1 and approximately $29 million less than in FY 2006107 The General Fund Operating budget is only 3 percent more than in FY 2006107, in spite of 13 percent growth in the Consumer Price Index (CPI) in a similar period, over 80 percent growth in pension costs, and many new facilities and projects coming on line Adopting Final FY 201 111 2 Budgets September 27,201 1 Page 2 The proposed General Fund operating budget released August 31,201 1 was $245,175,318 and the total proposed operating budget for FY 201 1112 was $425,633,275 including the General Fund, General Obligation Debt Service, Enterprise Funds and Transfers to the Redevelopment District; and the proposed operating budget for Internal Service Funds, which are wholly supported by transfers from the General Fund, Enterprise Funds and the Redevelopment District, was $54,349,331. At the first budget hearing on September 14,201 1, the Commission approved my proposed amendment to reduce operating contingency by $89,155 and to reduce transfers to the Information and Technology Fund by $1 14,115. Further the Commission amended the FY 2011112 General Fund operating budget to reflect $475,000 in one-time corporate sponsorship revenues due to funds previously anticipated to be collected in FY 201011 1 that will now be collected in FY 201 1112. In addition, because the Commission elected to defer the approval of any amendment to the City's franchise agreement with Florida Power and Light (FPL), $1,000,000 in addition FPL franchise revenues previously incorporated in the FY 201011 1 budget, was removed from the budget leaving a shortfall of $321,730. The Commission also approved the amendment of the General Fund budget to include the addition of a position in the Capital Improvements Project (CIP) Office for project estimating and scheduling at a cost of $81,679. However, this expenditure is offset by charge-backs to capital projects, and therefore, has no impact on the shortfall. Results of Potential Reductions Presented I$ Impact 1 Impact Eliminate the additional contingency derived during the I I balancing of the General ~undo~eratin~ budget - $ (89,155) (0.005) educe Contingency Funding in the FY 201 1/12 Information and Technology Fund Transfer $ (1 14,115) (0.006) Other Actions Taken Defer approval of FPL Franchise Agreement I $ 1,000,000 I 0.056 I I One-time beverage sponsorship revenues moved from FY 2010111 to FY 2011112 $ (475,000) (0.026) Further Reduce Operating Contingecy $ (321,730) (0.018) Add a CIP Positions in the amount of $81,679 - offset by chargebacks to capital projects I $ I I While the Commission considered my proposed amendment to also reduce Police overtime by $300,000, no action was taken at the first budget hearing and the Commission directed the administration to bring a report on Police overtime to the second budget hearing for further consideration. As a result, in order to address the remaining shortfall and have a Adopting Final FY 201 111 2 Budgets September 27,201 1 Page 3 balanced budget, the general operating contingency in the General Fund was reduced by an additional $321,730, for a total reduction of $410,885 in general operating contingency. The potential option to change the Ocean Rescue Division Schedule to 5 days per week18 hours per day on a year round schedule, resulting in a later morning start at lifeguard stands except Lummus Park, while retaining approximately $100,000 in overtime for roving lifeguards on ATVs in the morning or other unanticipated needs, was not approved by the Commission for the FY 201 1112 budget as more data is required. This tentatively adopted General Fund operating budget, as a result, includes $778,270 in general operating contingency, lower than prior year amount of $1 .I million, and only 0.3 percent of the tentatively adopted operating budget of $244,731,997. In the Water and Sewer budget, the Commission directed the administration not to pass through a fee increase to offset additional expenses from a Miami-Dade County fee wholesale rate increase for sewer users, anticipated to result in $732,062 additional expenditure, and amended the sewer budget to offset the decreased revenues by decreasing the funds to be set-aside for future "true-ups" with Miami-Dade County. This direction was based on the Commission anticipation that, due to ongoing contract negotiations between Miami-Dade County and it bargaining units, there is significant potential for the sewer wholesale rate to municipalities to be reduced for FY 2012113. Should this not be the case, the City sewer rate will need to be increased in FY 2012113. As a result, the sewer budget was revised from $35,190,495 to $34,458,433. The General Fund operating budget was tentatively adopted on September 14, 201 1 at $244,731,997 and the total operating budget for FY 201 1112 tentatively adopted was $424,457,892 including the General Fund, General Obligation Debt Service, Enterprise Funds and Transfers to the Redevelopment District. The tentatively adopted operating budget for Internal Service Funds, which are wholly supported by transfers from the General Fund, Enterprise Funds and the Redevelopment District, was unchanged at $54,349,331. RECOMMENDATIONS FOR THE SECOND BUDGET HEARING The tentative level of $778,000 in operating contingency is, in my opinion, too low for a City like ours. While we avoid using our contingencies, it provides a certain level of budget flexibility available to address unforeseen issues that may arise during the year. I continue to recommend decreases in the police overtime as presented at the first budget hearing to allow for the reinstatement of $300,000 in operating contingency. The tentatively adopted General Fund operating budget includes a total of $3.2 million in Police overtime. These amounts were derived by adjusting the FY 201 011 1 projected overtime expenditures based on actual expenditures through June 201 1 of $3.12 million, adjusting for a 1 percent increase consistent with the increase in salaries for based on the projected salary increase for the Police Department as a whole, and contingency of approximately $100,000. It is important to note that actual overtime through August, 201 1 is below the level projected as of June, 201 1. In addition, sufficient overtime to meet historical levels of service are also budgeted in the RDA City Center, and, for FY 201 1/12, overtime for major special events is budgeted in the Resort Tax Fund. Adopting Final FY 201 1 /I 2 Budgets September 27,201 1 Page 4 As of today there are approximately 17 sworn vacancies in the Police Department and an estimated average of 11 positions throughout the year which would have contributed to manpower shortage overtime component of overtime. These positions have been projected as filled for FY 201 1/12, which should result in additional overtime savings. Using an average budgeted salary of approximately $52,000 for FY 201 1/12, the I I positions equates to approximately $572,000 in salaries if the positions are filled. If the positions are not filled, the salary savings could be used to offset the manpower shortage related overtime. Further, as I stated at the first budget hearing, we will never sacrifice our Public Safety services. Should the need to provide additional services arise we would do so and make the necessary mid-year and year-end adjustments for the budget. Analysis of vacant positions During the Commission Retreat in May, 201 1, at the time of adoption of the proposed operating millage on July 13, 2011, and, again, during Finance and Citywide Projects Committee (FCWPC) meetings in late July, 2011, it was agreed to set the proposed operating millage at the same level as FY 201 011 1, with the caveat that the Administration should strive to reduce the millage before final adoption. At the first budget hearing on September 14, 201 1, the operating contingency and transfers to the Information and Technology Fund were reduced as noted above, however, these had to be used to offset the decrease in projected FY 201 11/12 franchise fee revenues. At the first budget hearing on Septemberl4, 2011, the Commission directed the administration to look at freezing vacant positions. As I have presented previously, we have been in a modified hiring freeze for some time, whereby all vacancies are evaluated to determine if they are mission critical prior to authorizing hiring and further, evaluated to determine whether they can be filled by a part-time of temporary position, or if they can be outsources. As of September 15, 201 1, there were 49.25 vacant positions in the General Fund whose salaries were budgeted at $2,767,898. However, of these, 7 positions with a budget value of $491,700 are in the Capital Improvements Office and are fully charged-back to capital projects. Therefore reducing these positions have no impact on the General Fund millage. In addition, 2 of these positions, at a savings of $54,887, are already recommended for reduction as part of the efficiencies and reductions incorporated in the tentatively adopted General Fund budget. The remaining 40.25 positions have a budgeted value of $2,204,398. However, I consider 38.25 of these positions to be mission critical, as reducing them would impact priority service areas for the community or result in increased need for overtime at a higher cost. 18 positions in Police 1 homeless services case worker in REHCD a 4 part-time and 3 full-time recreation leaders/supervisor 1 part-time municipal service worker in Parks and Recreation 4 lifeguards a I firefighter Adopting Final FY 201 111 2 Budgets September 27,201 1 Page 5 a 1 position in Fire Prevention a 2 positions in Street Operations a 2.25 positions in Public Works Engineering 1 position in Building However, there are two positions in the General Fund that we can continue to keep unfilled for a year which could result in savings of approximately $210,000: the Planning Director, and a tree-trimmer position (previously frozen for FY 201 011 1 ). Further, the Internal Service Funds have 3 vacancies for a total budgeted salary of $1 77,066. The Maintenance and Building Operations Superintendent position and the Building Technician position in Property Management are considered these essential to the maintenance of our facilities. However, we could consider freezing a Systems Analyst position budgeted at $68,886, of which 85 percent is estimated to impact the General Fund charge-backs from Internal Services. A summary of these impacts is presented in the following table. For perspective, it is important to note that every reduction of $1 80,000 to the proposed FY 201 1/12 General Fund budget is equivalent to 0.01 mills. Every 0.01 mills results in annual savings of $1 .I 9 per year to the median value homesteaded property, and $2.77 per year to the average value property. USE OF ONE-TIME REVENUES Millage Impact (0.012) (0.003) Potential Additional Savings lmpact of freezing vacant General Fund positions General Fund lmpact of freezing lnternal Service Fund positions (estimated at 60% of total) The City's policy regarding use of one-time revenues states that "The City of Miami Beach will use onetime, non-recurring revenue for capital expenditures or one time expenditures and not subsidize recurring personnel, operations, and maintenance cost". Total 1 $ (268,59911 (0.015) $ Impact $ (210,046) $ (58,553) The FY 201 111 2 Proposed Work Plan and Budget included the use of $3.55 million in year- end surplus (revenues in excess of expenditures) from FY 2009/10 year-end and the FY 201 011 1 mid-year budget amendment that was set aside for possible use in balancing the FY 201 1/12 budget, as needed, in addition to $475,000 one-time sponsorship revenues. As a result, it is recommended that the Commission waive this policy for this use of prior year- end surplus. A similar amount ($3.66 million) was included in the adopted FY 2010/11 budget. While this is generally not a recommended financial practice, it is being recommended at this time so as to allow for a gradual decline in the use of one-time revenues over the next few years. Please note that this recommendation is made Adopting Final FY 201 111 2 Budgets September 27,201 1 Page 6 cautiously. As with the FY 2010111 budget, it is my intention to expend these dollars last during the fiscal year, so that if any savings are achieved throughout the year, the amount of funds needed from this source will be reduced, in which event the funds will be available to be used in subsequent fiscal years. For this reason also, I recommend setting aside the savings from freezing the 3 additional positions for FY 201 211 3, to offset what we can reasonably assume will be a built-in shortfall at the beginning of the FY 2012113 budget process. BACKGROUND Over the last several years, the City of Miami Beach has adopted budgets that provided tax and fee relief while at the same time providing improved services that address needs and priorities identified by the community (primarily in public safety, cleanliness, landscaping and beautification, recreation and cultural arts programming, renewal and replacement funding for our facilities, and buildingldevelopment functions); and providing structural changes that enhanced capital funding and reserves. In 2009, the City of Miami Beach conducted its third set of statistically-valid community surveys. The Community Survey was designed to provide resident input on quality of life, city services, and taxes; and to identify key drivers for improvement. Impressively, all 31 of the residential tracking questions from 2007 experienced increases in each of the areas measured by an overall average of approximately 7.0%; and 28 of 32 business tracking questions experienced increases measured by an overall average of approximately 8.8%. It is unusual for an entity to see improvement across such a broad range of areas, and the significant percentage increase in each of these areas is even more unusual. These results indicate a high level of satisfaction with Quality of Life in Miami Beach and the services provided by the City. However, these objectives have become increasingly more challenging in the last several years, due to changes in property tax legislation, property values that first increased and then declined, and increasing pension plan contributions due to the downturn in the investment market. Between FY 2007108 and FY 201011 1, the General Fund absorbed more than $41 million in reductions (almost 20 percent of the $237.5 million FY 201011 1 General Fund budget) and reductions of approximately $47 million and 260 positions across all funds. Combined with more than $15 million in employee "give-backs" between FY 200911 0 and FY 201 011 1, this represents more than $62 million in combined ''aivebacks" and reductions over 4 years. Despite this significant reduction and despite increases in costs such as pension, living wage impacts, fuel, and other operating expenses, the City of Miami Beach has essentially kept services and enhancements that were added through FY 2006107 to address needs and priorities identified by the community. We have continued to focus on priorities: public safety, cleanliness, landscaping and beautification, recreation and cultural arts programming, renewal and replacement funding for our facilities, buildingldevelopment functions, and structural changes that enhanced capital funding and reserves, while bringing on line several capital projects with expanded operations and maintenance and resulting increases in operating costs for facilities as shown such as by the examples provided below: Adopting Final FY 201 111 2 Budgets September 27,201 1 Page 7 North Shore Park and Youth Center South Pointe Park, Soundscape Park Collins Parks and surrounding neighborhood streetscapes Bandshell Facility improvements Normandy Shores Golf Course Normandy Isle Park and Pool Beachfront Bathrooms Colony and Byron Carlyle Theatres Beachwalk and Baywalk Multiple streetscapes As a result, we have been able to achieve significant value to our community. The median taxable value for a homesteaded property on Miami Beach as of January 1, 2010 was $1 19,461, resulting in $774 in total taxes paid to the City of Miami Beach, with half of the homesteaded properties paying even less than this. In fact, 6 percent of homesteaded properties, almost 1,000 properties, pay no taxes at all to the City of Miami Beach. EFFECT OF UNION AGREEMENTS There has been discussion also, albeit to a lesser extent, of more dramatic reductions in millage rate. It is important to note that the recommendations regarding the City's operating millage was made after a careful review of expenditures. As shown in the table below, the greatest component of General Fund expenditures in the FY 201 1/12 tentatively adopted budget are salaries and benefits, representing approximately $1 77.6 million, or 73 percent, of $244.7 million. When salaries and benefits from the internal service funds that are charged to the General Fund are included, this increases to $1 85 million, or 76 percent of the General Fund tentatively adopted budget. Given the no layoff and wage provisions subsequently incorporated into City contracts through September 30,2012, reductions in personnel costs are challenging to implement for FY 201 1/12, although the tentatively adopted FY 201 1112 budget does incorporate some reductions. However, all City bargaining agreements expire September 30, 2012, except one which expires April 30,201 3, and the pension reform initiative currently underway by the City's Budget Advisory Committee, provides greater opportunities to further reduce personnel costs, and pension costs in particular, for FY 201211 3, and not impact service levels to the community. The balance of $26.8 million in operating costs include rents and utilities; expenditures related to our two golf courses; public safety supplies and maintenance items, contracted landscape maintenance; supplies and expenditures related to arts, culture, parks and recreation; general maintenance contracts, auditing services; notifications and promotions; outside legal support and special master support; elections expenditures; grants to organizations and social services; recruitment related expenditures, including background checks and testing; contracted Building and Code enforcement support, including inspectors and the Call Center; as well as $0.8 million in operating contingency. Adopting Final FY 201 111 2 Budgets September 27,201 1 Page 8 HISTORICAL PERSPECTIVE Overtimelother Wages Benefits Pension - F&P Pension - MBERP Other Pension casts Health and Life Other Benefits Total Benefits Total Salary and Benefits Operating Internal Se~ce Funds Capital & Debt Total The City of Miami Beach has experienced significant change in the last several years, due to changes in property tax legislation, property values that first increased and then declined, and increasing pension plan contributions due to the downturn in the investment market. However, property values and the General Fund operating budget in FY 201011 1 as compared to FY 2006107 are essentially the same, $22.7 billion versus $22.1 billion, and $237.7 million versus $237.5 million, respectively. In addition to reduction and employee givebacks, today's General Fund operating budget also reflects greater diversification of revenues since FY 2006107. In FY 2006107, the percentage of the budgeted supported by property taxes paid by Miami Beach property owners was 59 percent. As of FY 201 011 1, the percentage decreased to 47 percent. 12.64 35.60 10.97 5.80 9.16 4.04 65.57 1 79.66 27.05 36.18 4.18 $ 247.07 TENTATIVELY ADOPTED FY 2011/12 GENERAL FUND BUDGET The FY 201 111 2 tentatively adopted General Fund budget is only $7 million (3 percent) more than the FY 2006107 budget, despite pension increases of $24 million durina the same period. Inflation from October, 2006 through June, 2011, a similar period, was approximately 13 percent. This reflects a decrease across all other expenditures during that time, and even offsetting increases in health and salaries, a growing concern to us, as there is and should be a limit to the proportion of budget allocated to these costs. At this point, pension costs alone represent $52.4 million (22 percent) of the total General Fund budget. As a result, pension reform continues to be a high priority for the City, with recommendations anticipated from the Budget Advisory Committee in January, 201 2. This timing allows for the recommendation to be incorporated into the next set of contract negotiations which will begin next summer. 10.72 35.60 10.97 5.80 9.14 4.04 65.55 177.55 27.21 36.19 4.23 $ 245.18 10.72 35.60 10.97 5.80 9.15 4.04 65.56 177.62 26.81 36.19 4.11 $ 244.73 4% 15% 4% 2% 4% 2% 27% 73% 11% 15% 2% 100% 10.85 35.60 12.08 5.86 9.60 4.63 67.77 18520 52.54 6.99 $ 244.73 4% 1 5% 5% 2% 4% 2% 28% 76% 21% 0% 30/0 100% Adopting Final FY 201 1112 Budgets September 27,201 1 Page 9 Further, while a significant portion of property taxes in our City are collected from hotels, restaurants and other businesses; a significant source of revenue to the General Fund is from non-property tax tourism and business-related sources which have increased steadily over the years. The Proposed Work Plan and Budget includes resort taxes and a transfer of Parking Operations Fund year-end surplus as well as Parking Operations Fund reimbursements and right-of-way fees paid to the General Fund that total almost $37 million; approximately 15 percent of the Proposed General Fund FY 201 111 2 Budget. In large part due to these alternative sources, property tax revenues represent less than half (45 percent) of the total funding for the General Fund budget, as compared to 59 percent in FY 2006107, a significant reduction over the past several years. In addition, the FY 201 1112 Proposed Work Plan and Budget incorporates $400,000 in additional funding from the corporate beverage sponsorship agreement approved by the City Commission in July 201 1, pending final negotiations. This $400,000 represents the beginning of $7 million in cash and in-kind payments to the City estimated over the 10 years of the agreement as we continue to pursue options to reduce the tax burden on our residents and commercial property owners. At the time of adoption of the proposed millage in July, it was estimated that the City had a gap of $5.4 million, a significantly improved position from the estimated gap of $32 million at the same time in the development of the FY 201011 1 budget. As we committed to do, between setting the preliminary millage in July, 201 1 and finalizing the Proposed Work Plan and Budget released August, 201 1, we refined our projections. Our revenues, in particular, tend to have greater fluctuations than expenditures, and we are conservative early in the process and refine these projections over the summer. Changes between the July, 201 1 adoption of the proposed millage and the release of the Proposed Work Plan and Budget in August, 201 1 included increased revenue estimates (primarily building development process fees, and rents and leases, offset by decreased interest earnings). As a result, the projected gap was reduced to $4 million as of August, 201 1. The major components of the gap are explained below. $1.9 million increase to reflect previously bargained salary adjustments for employees $0.3 million increase in overtime cost primarily due to increases in Police court overtime. $4.2 million increase in the General Fund portion of the City's annual required contributions to the Fire and Police ($2.2 million) and General Employees ($2 million) pension plans. $2.8 million increase in health insurance costs. $1.0 million Increase in Internal Service Fund charge-backs primarily due to similar increases in salary and pension costs as described above. $0.1 million in capital and debt primarily due to increased renewal and replacement projects under $25,000 e $0.8 million in reduced property tax revenues. These were partially offset by: $0.7 million reduction in operating expenditures. $6.4 million in increased non property tax revenues (which at the time of the Proposed Work Plan and Budget included $1 million in additional revenues from the proposed amendment to the FPL agreement). Adopting Final FY 201 111 2 Budgets September 27,201 1 Page 10 Together, salaries and fringes charged directly to the General Fund represent approximately 73 percent of the total current service level (CSL) General Fund budget of $247 million as of August, 201 1 (including the impacts of meritlsteps increases, and pension contributions). It is important to note, that the approximately $27 million in other operating costs (1 1 percent of CSL budget) reflects a decrease of approximatelv $700,000. This savings reflects the results of various cost savings initiatives by the City such as re-bidding contracts, careful review of department line item expenditures, and other efficiencies. In balancing the General Fund proposed operating budget, the approximately $4 million gap between Current Service Level revenues and expenditures in the Proposed Work Plan and Budget was addressed through the efficiencies and reductions, in addition to transferring special event like expenditures to the resort tax fund and increasing resort tax revenue transfers into the General Fund. $0.4 million Efficiencies and Reductions $2.1 million Expenditures more appropriately funded from the Resort Tax Fund * $2.0 million Increased transfers from Resort Tax to the General Fund This resulted in approximately $0.5 million of revenues in excess of expenditures that allowed for some modest enhancements in response to community priorities, provides funding for adjustments to the living wage requirements for contracted services, and provides approximately $89,000 in additional operating contingency. * $0.3 million Senlice Enhancements $0.1 million Living Wage adjustments $0.1 million Additional Contingency As noted above, at the first budget hearing on September 14, 201 1, the projected FPL franchise fee revenues in the General Fund operating budget were reduced by $1 million, offset by decreases in general operating contingency and decreases in transfers to the Information and Communications Technology Fund. In addition, the Mayor and Commission added a position for the capital improvements office which was offset by charge-backs to capital projects. Approximately $4 million of the resulting $8 million increase in non property tax revenues was planned for at the time of the adoption of the FY 201 011 1 budget, through increased transfers from prior year Parking Operating Fund surplus and sidewalk cafe fee revenue. The remainder reflects improving conditions in the City of Miami Beach, including sales taxes, building development process fees, and rents and lease revenues. Exhibits A through E to my budget message provide a summary of the efficiencies/reorganizations, service reductions, revenue enhancements, and service enhancements considered as part of the development of the proposed FY 201 111 2 Work Plan and Budget. As a result of these initiatives, the tentatively adopted budget continues our focus on providing "value of services for tax dollars paid" by continuing to provide services to the community free of charge or at significantly reduced fees, including free arts and movies in the parks, free access to pools and youth centers, reduced fee recreation programming, etc. - the services that our residents and businesses told us yet again are important to them during the 2009 Community Satisfaction Survey. Adopting Final FY 201 111 2 Budgets September 27,201 1 Page 11 PROPOSED FY 2011112 ENTERPRISE FUND BUDGETS Enterprise Funds are comprised of Sanitation, Water, Sewer, Stormwater, Parking, and Convention Center Departments. The Proposed FY 201 1/12 Enterprise Funds Budget is $157.4 million. This represents an increase of $0.9 million from the FY 201011 1 Enterprise Fund Budget, an increase of 0.6 percent. In addition to increases in $1.6 million in pension and internal service charges, the primary drivers of this increase are the following: An additional $5.5 million is in other costs in the Parking Operating Fund primarily due to: o a $1.6 million increase in salaries, health insurance, and funding for post retiree health similar to increases in the General Fund o a $1.4 million decrease in other operating costs o a $3.6 million increase in the prior year Parking Operating Fund surplus transfer to the General Fund, from $3.6 million to $7.2 million, and o a $1.7 million increase in the transfer to Parking Reserves from $3.6 million in the FY 201 011 1 adopted budget to $5.4 million in the FY 201 111 2 tentatively adopted budget. $5.8 million in debt service due to $4.4 million anticipated with the issuance of approximately $50 million in Stormwater bonds in FY 201 1/12 as well as an increase of $1.4 million for the second year of debt service for the series 2009 Stormwater bonds.. These increases are offset by a $9.2 million decrease in transfers to the Water, Sewer and Stormwater rate stabilization funds and a $3.8 million decrease in sewer wholesale payments (prior to the fee increase) to Miami-Dade County as compared to budget. Of note, the transfers to the rate stabilization fund are made for debt coverage purposes only so that the net revenues at year-end are sufficient to exceed the bond coverage requirements. Since they are not anticipated to be needed to cover expenditures, they are projected to return to the water and sewer rate stabilization funds at year end and are then available for debt coverage calculations in the following year. Internal Service Funds are comprised of the Central Services, Fleet Management, Information Technology, Risk Management and Property Management Divisions. The Proposed FY 201 1/12 Internal Service Fund budget is $54.3 million. This represents an increase of $1.9 million (4 percent) from the FY 2010/11 budget, primarily due to increases in salary, pension and health cost similar to those described in the General Fund. These costs are completely allocated to the General Fund and Enterprise Fund departments, and the Risk Management Fund reimburses the General Fund for the cost of legal services. The Property Management Fund includes the modest reduction in janitorial services offset by the purchase of a Vacuum Truck for the enhanced maintenance of Beach Showers and the additional $50,000 in contractual support for 40 year building recertification's required by Miami-Dade County Code. Adopting Final FY 201 1/12 Budgets September 27,201 1 Page 12 CONCLUSION In summary, the final FY 201 011 1 General Fund operating budget maintains current service priorities for the community, despite property tax rates set at 1.2 mills (16 percent) lower than FY 2006107 when property values were similar to the 201 1 certified values. The Administration recommends adoption of the attached Resolution which establishes the final budgets for General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, and Internal Service Funds for FY 201011 1. Attachment RESOLUTION NO. A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ADOPTING FINAL BUDGETS FOR THE GENERAL, G.O. DEBT SERVICE, RDA AD VALOREM TAXES, ENTERPRISE, AND INTERNAL SERVICE FUNDS FOR FISCAL YEAR (FY) 2011M2 WHEREAS, the Manager's proposed General Fund operating budget released August 31, 2011 was $245,175,318 and the total proposed operating budget for FY 2011112 was $425,633,275 including the General Fund, General Obligation Debt Service, Enterprise Funds and Transfers to the Redevelopment District; and WHEREAS, the budget for Internal Service Funds, which are wholly supported by transfers from the General Fund, Enterprise Funds and the Redevelopment District, is $54,349,331; and WHEREAS, the proposed General Fund operating Budget included an additional $1 million in electrical franchise fee revenues anticipated from a new agreement with Florida Power and Light; and WHEREAS, the proposed Enterprise Fund budgets included the additional expenses from a Miami-Dade County fee wholesale rate increase for sewer users, anticipated to result in $732,062 additional expenditures and these expenses were anticipated to be offset by a pass-through increase to the sewer fee, resulting in additional expenditures; and WHEREAS, the Commission deferred consideration of the FPL agreement and did not approve the pass-though fee increase to the sewer fee at the September 14, 201 1 Commission meeting; and WHEREAS, the Commission amended the sewer budget to offset the decreased revenues by decreasing the funds to be set-aside for future "true-ups" with Miami-Dade County; and WHEREAS, the Commission amended the General Fund budget by decreasing contingency ($410,885), decreasing transfers to the Information and Communications Technology Fund ($1 14,115), decreasing Police overtime ($300,000), and increasing the corporate sponsorship revenues due to funds previously anticipated to be collected in FY 201011 1 that will now be collected in FY 201 1112 ($475,000); and WHEREAS, the Commission amended the General Fund budget to include an additional position in the capital improvements office ($81,679) to be funded by charge-backs to capital projects; and WHEREAS, in order to utilize the use of prior year year-end surplus funds, the Mayor and City Commission would need to waive the City's established policy of not utilizing one- time, non-recurring revenue to subsidize recurring personnel, operating, and maintenance costs; and WHEREAS, on September 14, 2011 the Mayor and City Commission tentatively adopted the operating and debt service millage rates and the operating budget for FY 201011 1. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that following a duly noticed public hearing on September 14, 201 1, the City Commission hereby waives the City's policy of not utilizing one-time, non-recurring revenue to subsidize recurring personnel, operating and maintenance costs for FY 2011112, and hereby adopts final budgets for the General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, and Internal Service Funds for FY 201 1112 as summarized and listed below. G.O. DEBT INTERNAL REVENUES GENERAL SERVICE RDA ENTERPRISE TOTALS SERVICE GENERAL OPERATING REVENUES Ad Valorem Taxes $ 99,009,520 $ 99,009,520 Af Valorem - South Pointe Costs 10,524,084 10,524,084 Ad Valorem - Capital Renewal & Repl. 1,755,752 1,755,752 Ad Valorem Taxes - Normandy Shores 108,469 108,469 Other Taxes 24,278,385 24,278,385 Licenses and Permits 17,074,053 17,074,053 Intergovernmental 10,091,000 10,091,000 Charges for Services 10,684,371 10,684,371 Fines and Forfeits 2,574,000 2,574,000 Interest 3,430,000 3,430,000 Rents and Leases 6,034,143 6,034,143 Miscellaneous 12,423,449 12,423,449 Other - Resort Tax Contribution 26,465,440 26,465,440 Reserves- Buildiing Dept Operations 1,546,709 1,546,709 Other - Non Operating Revenues 7,981,502 7,981,502 FY 09 Surplus Set Aside 3,551,120 3,551,120 Prior Year Surplus From Parking Op Fund 7,200,000 7,200,000 Sub-total $ 244,731,997 $ 244,731,997 G.O. DEBT SERVICE FUND Ad Valorem Taxes $ 6,021,612 $ 6,021,612 Sub-total $ 6,021,612 $ 6,021,612 $ 244,731,997 $ 6,021,612 $ 250,753,609 FUND TOTAL RDA FUNDCity TIF only AD VALOREM TAXES Property Taxes-RDA City Center (net) FUND TOTAL ENTERPRISE FUNDS Convention Center Parking Sanitation Sewer Operations Storm Water Water Operations FUND TOTAL INTERNAL SERVICE FUNDS Central Sewices Fleet Management Information Technology Property Management Risk Management FUND TOTAL TOTAL ALL FUNDS APPROPRIATIONS G.O. DEBT INTERNAL FUNCTIONIDEPARTMENT GENERAL SERVICE RDA ENTERPRISE TOTALS SERVICE MAYOR 8 COMMISSION $ 1,584.212 $ 1,584,212 ADMINISTRATIVE SUPPORT SERVICES CITY MANAGER 2,336,327 2,336,327 Communications 910,044 910,044 BUDGET & PERFORMANCE IMPROV 1,917,857 1,917,857 FINANCE 4,276,843 4,276,843 Procurement 963,052 963,052 Information Technology $ 15,298,740 HUMAN RESOURCESILABOR RELATIONS 1,773,263 1,773,263 Risk Management 21,750,296 CITY CLERK 1,560,677 1,560,677 Central Services 886,490 CITY ATTORNEY 4,160,237 4,160,237 ECONOMIC DEV. 8 CULTURAL ARTS Economic Development REAL ESTATE, HOUSING & COMM DEV. Homeless Services BUILDING PLANNING Cultural Arts TOURISM & CULTURAL DEV Tourism & Cultural Development CONVENTION CENTER OPERATIONS Code Compliance Community Services PARKS & RECREATION PUBLIC WORKS Property Management Sanitation Sewer Stormwater Water CAPITAL IMPROVEMENT PROJECTS PARKING FLEET MANAGEMENT PUBLIC SAFETY POLICE FIRE CITYWIDE ACCOUNTS CITYWIDE ACCTS-Normandy Shores CITYWIDE ACCTS-Operating Contingency CITYWIDE ACCTS-Other Transfers Capital Investment Upkeep Fund Info & Comm Technology Fund CAPITAL RENEWAL 8 REPLACEMENT G.O. DEBT SERVICE RDA-City TIF only City Center (Net) TOTAL - ALL FUNDS PASSED and ADOPTED this 27th day of September, 2012. MAYOR ATTEST: ClN CLERK APPROVED AS TO FORM & LANGUAGE THIS PAGE INTENTIONALLY LEFT BLANK COMMISSION ITEM SUMMARY Condensed Title: I A resolution of the Board Of Directors of The Normandy Shores Local Government Neighborhood lmprovement I District adopting the final Ad Valorem Millage Rate of 1.0935 Mills For The ~ormand~ Shores ~eighborhood lmprovement District, which is nine and nine-tenth (9.9%) more than the "rolled-back" rate of 0.9946 mills. Key Intended Outcome Supported: Increase visibility of police; Maintain crime rates at or below national trends. Supporting Data (Surveys, Environmental Scan, etc.): In 2009 Community Survey, both residents and businesses reported the following areas for the City to address in an effort to improve public safety: Preventing crime (Residents: 44.9%, Business: 43.9%) Increasing police visibility (Residents: 32.4%, Business: 33.1%) Issue: Shall the Mayor and City Commission, acting in its capacity as the Board of Directors forthe Normandy Shores Local Government Neighborhood lmprovement District, adopt the attached resolution which sets the final Ad Valorem Item SummarylRecommendation: The proposed ad valorem millage recommended by the Administration is 1.0935 mills to provide the current level of security required by this district. Forthe Normandy Shores taxing District, the value for each mill ($1 .OO of ad valorem tax for each $1,000 of property value) is determined by the 201 1 Certification of Taxable Value and has been set at $104,412. Florida Statutes permit a discount of up to five percent for early payment discounts, delinquencies, etc. Therefore, the 95 percent value of the mill is $99,191. The 1.0935 mills will generate proceeds of $108,469, 65 percent of the proposed district budget. In addition, the City of Miami Beach General Fund is required to provide 35% of the total operating expenditures ($58,406). The City has funded the 35% for each of the eighteen years since the District was established. The increase of 0.0560 mills from the prior year millage represents an annual increase of $1 5.17 to the City average 2010 homesteaded property of $271,000 taxable value (estimate based on Ad Valorem Assessment Roll received from the Miami Dade County Property Appraiser on August 17,2010), a total of approximately $296 per year ($25 per month). It must be noted that in FY 2010/11, the adopted millage rate of 1.0375 resulted in a budget shortfall of $8,674. In order to close this gap, the Commission voted to waive the City's policy of not utilizing one-time, non-recurring revenue to subsidize recurring personnel, operating and maintenance costs and allowed the use of $5,639 Normandy Shores stash site dollars which resulted from the sale of the stash site in 1993, matched by an additional $3,035 in City dollars. Since this was a one-time action, the FY 201 1/12 proposed millage rate includes 0.0568 mills to fund this amount. The first public hearing on the tentative District millage rate and budget for FY 201 1/12 was held on September 14, 201 1. The millage rates presented herein are those which were tentatively adopted at the end of the first public hearing held on that day. The FY 201 1/12 proposed millage rate is above the maximum millage rate of 1.0001 allowed to be adopted by a majority vote, and will therefore require a 517 vote. I I Advisory Board Recommendation: I Financial Information: I I City Clerk's Office Legislative Tracking: Source of Funds: r-Tjmq OBPl Financial Impact Summary: 1 2 Total Amount Account Approved MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.rniarnibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 27,201 1 SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL AD VALOREM MILLAGE OF 1.0935 MILLS FOR FISCAL YEAR (FY) 2011112 FOR THE NORMANDY SHORES LOCAL GOVERNMENT DISTRICT, WHICH IS NINE AND NINE-TENTH PERCENT (9.9%) MORE THAN THE "ROLLED- BACK" RATE OF 0.9946 MILLS. ADMINISTRATION RECOMMENDATION The Administration recommends that the Mayor and City Commission, acting in its capacity as the Board of Directors for the Normandy Shores Local Government Neighborhood lmprovement District, adopt the attached resolution which sets the following: 1) The final adopted millage rate for the Normandy Shores Neighborhood lmprovement District for FY 201 111 2: General Operating 1.0935 mills (1.0375 mills last year) 2) The final adopted millage rate of 1.0935 mills is 9.9% more than the "Rolled-Back Rate of 0.9946 mills. The first public hearing on the tentative District millage rate and budget for FY 201 1/12 was held on September 14, 201 1. The millage rates presented herein are those which were tentatively adopted at the end of the first public hearing held on that day. BACKGROUND The Normandy Shores Local Government Neighborhood lmprovement District (the District), a dependent taxing district of its principal, the City of Miami Beach, was established in 1994 to provide continual 24-hour security to this gated community; FY 201 111 2 represents its eighteenth year of operation. The District was established by Ordinance 93-2881, and has the authority "to levy an ad-valorem tax on real and personal property of up to two mills, provided that no parcel of property will be assessed more than $500 annually for such improvements". During FY I998199 the amount of annual funding to be provided by the City and the dependent status of the District were issues discussed by the Finance and Citywide Projects Committee. A determination was reached that the City would fund 35% of the annual cost of the operation of the community gate guard. This cost will eventually be funded from the golf course operation of the Normandy Shores Golf FY 201 1/12 Normandy Shores Millage Rate September 27,201 1 Page 2 Course. It was further agreed that the City would continue to supplement the District at current levels until both issues were resolved. On August 29, 2002, the Administration met with the Normandy Shores Local Government Neighborhood Improvement District representatives and agreed to eliminate the $500 cap on the highest valued home in the District. The enabling legislation was adopted by the Commission on September 25,2002. This ensures that the City's contribution from the General Fund remains at 35% of the operating budget of the District. PROCEDURE The operating millage and budget for this dependent special taxing district must be adopted in accordance with Florida Statutes. This procedure requires that this Resolution be considered immediately after the millage and budget of the principal taxing authority, i.e., City of Miami Beach. It also prescribes that a final millage be adopted first. This is accomplished by adopting a Resolution which states the percent increase or decrease over the "Rolled-back" rate. Following this, another Resolution which adopts the Normandy Shores District operating budget must be approved. (See accompanying District Budget Agenda item for details). The statute requires the name of the taxing authority, the rolled-back rate, the percentage increase over the roll-back rate, and the millage rate be publicly announced before adoption of the millage resolution. ANALYSIS On July 1, 201 1, the City received the 201 1 Certification of Taxable Value from the Property Appraiser's Office stating that the taxable value for Normandy Shores is $1 04,411,853, which includes $370,264 due to new construction, renovation, etc. The preliminary value represents an increase of $2,428,718 from the July 1,2010 Certification of taxable Value of $101,983,135 (2.4 percent) and an increase of 4.7 percent over 2010's final value of $99,739,506. The proposed ad valorem millage recommended by the Administration is I .0935 mills to provide the current level of security required by this district. This tax levy will generate proceeds of $108,469. The increase of 0.0560 mills from the prior year millage represents an annual increase of $15.17 to the City average 201 0 homesteaded property of $271,000 taxable value (estimate based on Ad Valorem Assessment Roll received from the Miami Dade County Property Appraiser on August 17, 2010), a total of approximately $296 per year ($25 per month). It must be noted that in FY 201011 1, the adopted millage rate of 1.0375 resulted in a budget shortfall of $8,674. In order to close this gap, the Commission voted to waive the City's policy of not utilizing one-time, non-recurring revenue to subsidize recurring personnel, operating and maintenance costs and allowed the use of $5,639 Normandy Shores stash site dollars which resulted from the sale of the stash site in 1993, matched by an additional $3,035 in City dollars. Since this was a one-time action, the FY 201 1/12 proposed millage rate includes 0.0568 mills to fund this amount. For the Normandy Shores taxing District, the value for each mill ($1 .OO of ad valorem tax for each $1,000 of property value) is determined by the 201 1 Certification of Taxable Value and has been set at $104,412. Florida Statutes permit a discount of up to five percent for early payment discounts, delinquencies, etc. Therefore, the 95 percent value of the mill is $99,191. Accordingly, 1.0935 mills are required to generate $108,469 in property tax revenues by the district. FY 201 1/12 Normandy Shores Millage Rate September 27,201 1 Page 3 The rolled-back rate is the millage rate required to produce the same level of property tax revenue in FY 201 1/12 as collected in FY 2010/11. The rate is calculated as 0.9946 or 0.0429 mills less than the millage rate adopted for FY 2010/11. Further, pursuant to State Statute, the City may elect to approve millage rates above the roll-back rate up to the constitutional cap of 10 mills subject to the following votes by the Commission or referendum: Option I: A majority of the approval of the Commission Millage is required to approve a millage up to 1.0001 (equivalent to a 0.55% increase in Property Tax revenues). The 0.55% increase is the state per capita personal income gain for the prior calendar year. Option 11: A two-thirds approval (5 of 7 votes) of the Commission is required to approve a millage up to 1 .I 001 (equivalent to a 10% increase in Property Tax revenues above Option I). . Option Ill: A unanimous approval of the Commission or referendum is required to approve a millage above 1 .I 001 mills The proposed rate of 1.0935 therefore requires a two-thirds approval (5 of 7 votes) of the City -. Commission. It must be noted that in accordance with State Statute, there is a 10 mill operating cap which cannot be exceeded without voter approval. Combining both millages from the dependent district (1.0935) and the principal taxing authority (6.21 55) totals 7.309 mills, which is 2.691 mills less than the 10 mill cap. CONCLUSION The City Commission, acting in its capacity as the Board of Directors of the District, should adopt the attached Resolution which adopts the final millage. RESOLUTION NO. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL AD VALOREM MILLAGE OF 1.0935 MILLS FOR FISCAL YEAR (FY) 2011112 FOR THE NORMANDY SHORES LOCAL GOVERNMENT DISTRICT WHICH IS NINE AND NINE-TENTH PERCENT (9.9%) MORE THAN THE "ROLLED-BACK" RATE OF 0.9946 MILLS. WHEREAS, for the purpose of providing security services within the Normandy Shores neighborhood area, the Mayor and City Commission adopted Ordinance No. 93-2881 on October 20, 1993, which authorized the creation of the Normandy Shores Local Government Neighborhood Improvement District (District); and WHEREAS, Section 200.065, Florida Statutes, specifies the method by which municipalities may fix the operating millage rate and adopt an annual budget for dependent taxing districts; and WHEREAS, the maximum millage that can be approved by a simple majority (417) vote is 1.0001 ; anything beyond that requires a 5nthS vote; and WHEREAS, on July 13, 201 1, the City Commission adopted Resolution 201 1-27700 which set the proposed operating millage rate for the District at 1.0935 mills for the purpose of providing security services within the District; and WHEREAS, on September 14,201 1, pursuant to Section 200.065 of the Florida Statues, the City Commission, acting as the Board of Directors of the District, held its first duly noticed public hearing to consider the Tentative Ad Valorem Millage and Tentative Operating Budget (FY 201 111 2) for the District and adopted a millage rate of 1.0935; and WHEREAS, accordingly on September 27, 201 1, pursuant to Section 200.065 of the Florida Statutes, the City Commission, acting as the Board of Directors of the District, held its second duly noticed public hearing to consider the Final Ad Valorem Millage and Final Operating Budget (FY 201 1/12) for the District; and NOW, THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, that following a duly noticed public hearing on September 27, 201 I, the Board hereby adopts the Final Operating Millage rate of 1.0935 mills for the District for FY 201 1/12, which is nine and nine-tenth percent (9.9%) more than the "Rolled-back rate of 0.9946. PASSED and ADOPTED this 27th day of September, 201 1. ATTEST: ? 93 Secretary to the District Chairperson of tm& As FORM & LANGUAGE /7 # FOR EXECUTION NE THURSDAY, SEPTEMBER 15,2011 1 13NE " -- --.... .... - MIAMIBEACH - C1.W OF MIAMI BEACH NOTICE OF A SPECIAL Cl* COMMlSSlON MEETING AND PUBLIC HEARINGS NOTICE IS HEREBY given that a Special Commission Meeting regarding the 2nd .Proposed Budget Public Hearings for FY 2011/2012 will be held by the .City Commission of the City of Miami Beach, Florida, on TUESDAY, September 27, 2011, comrnencing'at 5:00 P.M., in the Commission Chambers, 3rd floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. . * t 5:01 p.m. The second public hearing adopting the proposed millage rate and budget for FY 2011/2012 for the City of Miami Beach. 302 p.m. The seconi public hearing adopting the proposed millage rate and budget for FY 2011/2012 for the Normandy Shores Local Government Neighborhood Improvement District. I In addition, the City Commission will be discussing other City related business at this meeting. Inquiries concerning this meeting should be directed to the Office of Budget and Performance Improvement at (305) 673-751 0. Robert E. archer, City Clerk City of Miami Beach Pursuant to Section 286.01 05, Fla. Stat., the City hereby advises the public that: if a person decides to appeal any decision made by the City Commission with respect to any matter considered at its meeting or its hearing, such person must ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. This notice does not constitute consent by the City forthe introduction or admission of otherwise inadmissible or irrelevant evidence, nor does it authorize challengeser appeals not otherwise allowed by law. To request this material in accessible format, sign language interpreters, information on access for persons with disabilities, and/or any accommodation to review any document or participate in any city-sponsored proceeding, please contact (305) 604-2489 (voice), (305)673-72180 five days in advance to initiate your request. TPI users may also call 711 (Florida Relay Service). Ad #664 Condensed Title: A resolution adopting the final operating budget for the Normandy Shores Local Government. Neighborhood lmprovement District for Fiscal Year (FY) 201 1112. Key Intended Outcome Supported: I Increase visibility of police; Maintain crime rates at or below national trends. Supporting Data (Sunreys, Environmental Scan, etc.): In 2009 Community Survey, both residents and businesses reported the following areas for the City to address in an effort to improve public safety: a Preventing crime (Residents: 44.9%, Business: 43.9%) Increasing police visibility (Residents: 32.4%, Business: 33.1 %) Issue: Shall the Mayor and City Commission, acting in its capacity as the Board of Directors forthe Normandy Shores Local Government Neighborhood lmprovement District, approve the final operating budget for the District for FY2011112 in the amount of $166,875? Item SummarylRecommendation: The total operating expenditures to provide the current service level to this district is $166,875 for FY 201 1112. The City of Miami Beach General Fund is required to provide 35% of the total operating expenditures ($58,406), and the City has funded the 35% for each of the eighteen years since the District was established. The amount provided by the General Fund for this purpose in FY 201011 1 was $57,161. The $166,875 in FY 201 1112 represents a $3,558 increase (2.2%) from the FY 201011 1 budget of $163,317, primarily due to the estimated impact of the living wage ordinance on the security contract expenses. To provide the current level of security required by this district, the Administration recommends the proposed ad valorem millage of 1.0935 mills. This tax levy will generate proceeds of $108,469. The increase of 0.0560 mills from the prior year millage represents an annual increase of $15.17 to the City average 2010 homesteaded property of $271,000 taxable value (estimate based on Ad Valorem Assessment Roll received from the Miami Dade County Property Appraiser on August 17,2010), a total of approximately $296 per year ($25 per month). It must be noted that in FY 201011 1, the adopted millage rate of 1.0375 resulted in a budget shortfall of $8,674. In order to close this gap, the Commission voted to waive the City's policy of not utilizing one-time, non-recurring revenue to subsidize recurring personnel, operating and maintenance costs and allowed the use of $5,639 Normandy Shores stash site dollars which resulted from the sale of the stash site in 1993, matched by an additional $3,035 in City dollars. Since this was a one-time action, the FY 201 1112 proposed millage rate includes 0.0568 mills to fund this amount. The first public hearing on the tentative District millage rate and budget for FY 201 1112 was held on September 14, 201 1. The City Commission adopted the tentative operating millage of 1.0935 and the operating budget for the district in the amount of $166,875. Advisory Board Recommendation: I I I Financial Information: I I City Clerk's Office Legislative Tracking: I Approved Source of Funds: I OBPl Financial Impact Summary: Account Normandy Shores District General Fund 1 - 2 Total Amount $ 108,469 58,406 $ 166,875 MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 331 39, www.rniarnibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 27,201 1 SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING BUDGET FOR FISCAL YEAR (FY) 201 1/12. ADMINISTRATION RECOMMENDATION Adopt the Resolution which establishes the final operating budget for the Normandy Shores Local Government Neighborhood lmprovement District for FY 2011112 in the amount of $1 66,875. BACKGROUND The Normandy Shores Local Government Neighborhood lmprovement District (the District), a dependent taxing district of its principal, the City of Miami Beach, was established in 1994 to provide continual 24-hour security to this gated community; FY 201 111 2 represents its eighteenth year of operation. The District was established by Ordinance 93-2881, and has the authority "to levy an ad-valorem tax on real and personal property of up to two mills, provided that no parcel of property will be assessed more than $500 annually for such improvements". During FY I998199 the amount of annual funding to be provided by the City and the dependent status of the District were issues discussed by the Finance and Citywide Projects Committee. A determination was reached that the City would fund 35% of the annual cost of the operation of the community gate guard. This cost will eventually be funded from the golf course operation of the Normandy Shores Golf Course. It was further agreed that the City would continue to supplement the District at current levels until both issues were resolved. On August 29, 2002, the Administration met with the Normandy Shores Local Government Neighborhood lmprovement District representatives and agreed to eliminate the $500 cap on the highest valued home in the District. The enabling legislation was adopted by the Commission on September 25,2002. This ensures that the City's contribution from the General Fund remains at 35% of the operating budget of the District. PROCEDURE The operating millage and budget for this dependent special taxing district must be adopted in accordance with Florida Statutes. This procedure requires that this Resolution be considered immediately after the final millage for Normandy Shores District has been adopted (See accompanying District Millage Agenda Item for details). FY 201 1/12 Normandy Shores Adopted Budget September 27,201 1 Page 2 of 2 ANALYSIS The total operating expenditures to provide the current service level to this district is $166,875 for FY 201 1/12. The City of Miami Beach General Fund is required to provide 35% of the total operating expenditures ($58,406), and the City has funded the 35% for each of the eighteen years since the District was established. The amount provided by the General Fund for this purpose in FY 201 011 1 was $57,161. The $1 66,875 in FY 201 111 2 represents a $3,558 increase (2.2%) from the FY 201 011 1 budget of $1 63,317, primarily due to the estimated impact of the living wage ordinance on the security contract expenses. To provide the current level of security required by this district, the Administration recommends the proposed ad valorem millage of 1.0935 mills. This tax levy will generate proceeds of $108,469. The increase of 0.0560 mills from the prior year millage represents an annual increase of $15.17 to the City average 2010 homesteaded property of $271,000 taxable value (estimate based on Ad Valorem Assessment Roll received from the Miami Dade County Property Appraiser on August 17, 201 O), a total of approximately $296 per year ($25 per month). It must be noted that in FY 201 011 1, the adopted millage rate of 1.0375 resulted in a budget - = shortfall of $8,674. In order to close this gap, the Commission voted to waive the City's policy of not utilizing one-time, non-recurring revenue to subsidize recurring personnel, operating and maintenance costs and allowed the use of $5,639 Normandy Shores stash site dollars which resulted from the sale of the stash site in 1993, matched by an additional $3,035 in City dollars. Since this was a one-time action, the FY 201 1/12 proposed millage rate includes 0.0568 mills to fund this amount. On September 14,201 1, the Mayor and City Commission adopted the tentative operating budget for the District in the amount of $166,875 and an operating millage of 1.0935. The final operating budget for the District is as follows: Revenues Ad Valorem Tax $ 108,469 City's General Fund 58,406 Total $ 166,875 Expenses Security Service $ 156,724 Maintenance 10,151 Total $ 166,875 CONCLUSION The City Commission, acting in its capacity as the Board of Directors of the Normandy Shores Local Government Neighborhood Improvement District, should adopt the attached Resolution which establishes the final operating budget. RESOLUTION NO. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING BUDGET FOR FISCAL YEAR (FY) 2011/12. WHEREAS, for the purpose of providing security services within the Normandy Shores neighborhood area, the Mayor and City Commission adopted Ordinance No. 93- 2881 on October 20, 1993, which authorized the creation of the Normandy Shores Local Government Neighborhood lmprovement District (District); and WHEREAS, for the purpose of providing security services within the District, a final budget has been developed to fund projected FY 201 1/12 operating expenses; and WHEREAS, accordingly, on September 14, 201 1, pursuant to Section 200.065 of the Florida Statues, the City Commission, acting as the Board of Directors of the District, held its first duly noticed public hearing to consider the Tentative Ad Valorem Millage and Tentative Operating Budget (FY 201 1/12) for the District; and WHEREAS, accordingly on September 27, 201 1, pursuant to Section 200.065 of - . the Florida Statutes, a public hearing was held before the Mayor and City Commission, acting as the Board, to discuss the operating millage rate and operating budget for the District for FY 201 111 2. NOW, THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, that following a duly noticed public hearing on September 27, 201 1, the Board hereby adopts the Final Operating Budget (FY 2011112) for the Normandy Shores Local Government lmprovement District, as summarized and listed below: Budget 1.0935 Mills Revenues Ad Valorem Tax City's Genaral Fund Total Expenses Security Service Maintenance Total PASSED and ADOPTED this 27th day of Se~tember, 201 1. ATTEST: Chairperson of th- AS TO FORM & LANGUAGE 6HIR€xECwlON Secretary to the District 108 COMMISSION ITEM SUMMARY Condensed Title: A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, adopting the first amendment to the Fiscal Year (FY) 201012011 capital budget; reprogramming $1,402,057 in Capital Reserves as Pay-As-You-Go funds; approving the Capital lmprovement Plan for FY 201 1112- 2015116; and appropriating the City of Miami Beach Capital Budget for Fiscal Year (FY) 201 1112. (ey Intended Outcome Supported: Ensure well designed quality capital projects -- lncrease Community Satisfaction with City Services Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2009 Community Survey, storm drainage was identified as an area for improvement, although improved from prior years; arts and culture was one of the services identified that the city should strive not to reduce; and traffic flow, conditions of roads, and availability of public parking, were all identified as key drivers of overall satisfaction levels. Further, the following have been prioritized as key intended outcomes for the City's Strategic Plan: lncrease satisfaction with family recreational activities, lmprove Convention Center facility, Enhance mobility throughout the city, lmprove parking availability, Ensure value and timely delivery of quality capital projects, Maintain City's infrastructure, lmprove Storm drainage system, lmprove processed through Information Technology. The Proposed FY 201 1112 Capital Budget and the Proposed CIP for FY 201 1/12 through 2015116 includes funding for capital projects to address each of these priorities. Issue: Should the Commission appropriate the City of Miami Beach FY 2011112 Capital Budget and adopt the Capital lmprovement Plan (CIP) for FY 201 1112 through 2015116? Item Summary/Recommendation: $650,000 was included in the proposed FY2011112 Capital budget for outside legal counsel and consulting services related to ongoing litigation for the South Pointe Park Remediation Project. The City has incurred approximately $300,000 in outside legal and consulting fees in Fiscal Year 201011 1 for ongoing litigation for the South Pointe Park Remediation Capital Project. These amounts are appropriately charged to the Fiscal Year 201 011 1 Capital Budget rather than fiscal year 201 1112. The Finance and Citywide Project Committee recommended the use of $2.1 million in general obligation Fire bonds in lieu of previously programmed capital reserves and Pay-As-You-Go funds for the Fire Station 2lHose Tower project; and recommended reprogramming of $1,402,057 in capital reserve funds made available as a result as Pay- As-You-Go funds in fiscal year 201 1 11 2. The CIP was created as a plan for projects that require significant capital investment and is intended to serve as an official statement of public policy regarding long-range physical development in the City of Miami Beach, establishing priorities for the upcoming five year period, FY 201 1/12 - 2015116. The first year of the CIP is recommended for appropriation as the FY 201 1112 Capital Budget with $38,364,966 recommended for appropriation at this time, and the remainina $50,209,972 in stormwater bonds and associated repayments to the Line of Credit ($23,380,389) and I the stormwarer Enterprise Fund ($3,167,535) to be appropriated when proposed future stormwater bonds are sold. ( Advisory Board Recommendation: 1 On June 30.201 I and Julv 29.201 1 the Proposed Capital Budget and updated CIP was discussed at meetings of the I . - I Finance and Citywide Projects Committee and adjustments were made to the funding recommendations presented. I BEACH Financial Information: IOEWDA ITEM R7C DATE 4-27"/( -2 Aaaoq~%t)~ South Pointe Capital FY 201 011 1 Various - See attachment A of Resolution FY 201 1/12 Financial Impact Summary: City Clerk's Office Legislative Tracking: I I Amount ' $300,000 $38,364,966 $38,664,966 Source of Ax 1 i : OBPl &ak MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of theity Commission FROM: Jorge M. Gonzalez, City Manage DATE: September 27,201 1 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE FISCAL YEAR (FY) 201012011 CAPITAL BUDGET, REPROGRAMMING $1,402,057 IN CAPITAL RESERVES AS PAY-AS-YOU-GO FUNDS; APPROVING THE CAPITAL IMPROVEMENT PLAN FOR FY 201 111 2-2015116 AND APPROPRIATING THE ClTY OF MIAMI BEACH CAPITAL BUDGET FOR FISCAL YEAR (FY) 201 111 2 ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND Planning for capital improvements is an ongoing process; as needs change within the City, capital programs and priorities must be adjusted. The Capital Improvement Plan ("CIP") serves as the primary planning tool for systematically identifying, prioritizing and assigning funds to critical City capital development, improvements and associated needs. The City's capital improvement plan process begins in the spring when all departments are asked to prepare capital improvement updates and requests on the department's ongoing and proposed capital projects. Individual departments prepare submittals identifying potential funding sources and requesting commitment of funds for their respective projects. In the spring of 2006, the City created a Capital Budget Process Committee comprised of the Capital Improvements Office, Department of Public Works, Planning Department, Fire Department, Parks and Recreation Department, Parking Department, and Fleet Management Department, together with the Finance Department and the Office of Budget and Performance Improvement. The Committee is responsible for reviewing and prioritizing new capital projects that will be funded in a given fiscal year, and for recommendation of funding allocations from authorized sources for the prioritized projects. The Committee developed and implemented a structured committee process for development of the Capital Plan and Budget, including review criteria projects must meet in order to be considered for funding. Under the Capital Budget Process Committee process, departments submit proposed new project requests which staff reviews, there is a sign-off by impacted departments, and a preliminary prioritization of the projects. The process is reviewed and refined annually by the Committee. Based on the direction received from the Finance and Citywide Projects Committee in February 2008, the process was modified to allow for early input to the prioritization process City Commission Memorandum Resolution Adopting and Appropriating FY 201 1/12 Capital Budget and FY 201 1/12 - 2015/16 CIP September 27,201 1 Page 2 by the Commission, subject to the availability of funds. Under the revised process, a preliminary list of unfunded projects is presented to the Commission or the Finance and Citywide Projects Committee, providing the opportunity for input and prioritization. This is consistent with the process for Commission input regarding operating budget priorities and the format used is similar to that used to seek guidance on operating budget priorities in prior years. The Capital Budget is adopted at the second budget hearing in September. COMMITTEE REVIEW On June 30,201 1 and July 29,201 1, capital funding priorities were discussed at meetings of the Finance and Citywide Projects Committee. The Director of Budget and Performance Improvement, Assistant City Managers, the Capital lmprovement Project Office Director, other Department Directors, and other City staff were available to discuss specific projects and respond to the Committee's questions. The Committee approved $2.1 million in General Obligation Fire Bonds for Fire Station 2 to be used in lieu of Pay-As-You-Go and capital reserve funds previously programmed for the Fire Station 21Hose Tower project and recommended that these funds be reprogrammed for new Pay-As-You-Go capital projects. In addition, the following funding was recommended at the June 30,201 1 and July 29,201 1 Finance and Citywide Projects Committee meetings for previously programmed capital projects in the FY 201011 1 - FY 2014115 CIP: FY 201 1112 FUNDING NEEDS FOR EXISTING PROJECTS Project Band Shell Master Plan Improvements Normandy Isle Neighborhood ROW Phase II - Pavers, Landscaping, and Lighting Imps. Normandy Shores Neighborhood ROW Phase I1 - Hydrants and Sidewalks Baywalk I - Lincoln Road S to the Northern Boundary of Mae Capris building Middle Beach Rec Corridor Ph I1 - 46St to 64 St Fairway Park Install. Black Alum. Fence RestorativeTreeWell-2C-71 St Bay DlRue Notre Dame RestorativeTreeWell-PH 3-Washington Ave (1700 to 1200 block in FY 11/12) 16 th Street Operational Improve./Enhancement Collins Park Parking Garage Collins Park Parking Garage Land Repayment to Parking Operations Collins Park Ancillary Improvements South Pointe Pier South Pointe Park Remediation, Fountain Remediation and Entrance Fountain Restrooms Sunrise Plaza Pedestrian Connection Uplighting 5th (Lennox to Ocean Drive) Flamingo Bid Pack A - Alton to Washington, 6th to 1 Ith Flamingo 10G-6 Street Right of Way Improvements Washington Dog Park Repayment City W Curb Ramp Installation/Maintenance ROW Improvement Project FYI1112 Proposed $ 38 1,520 755,784 192,034 68,781 4,000,000 80,000 85,432 683,911 932,000 1,830,417 4,980,568 4,000,000 90,821 3,414,680 (799,000) 108,800 (2,272,301) 6,701,399 60,836 10,000 114,900 ZCC :s6u!yaaw aaQ!uwo3 sparo~d ap!Mh$!3 pue a3ueu!j ayl ye 6u!punj ~oj papuawwo3a~ aJaM ~)3aloJd Mau 6u!~olloj ayl , EC6'PPZcS $ 000'ZL 000'008' C 000'69 000'6P 000'09 000'9~ 000'09 OOO'OP 000'9s 000'09 000'9P ooo'oo c OOO'OI;~ 000'ZiL 1 8EO'BE 009'9 1 C 00 1'082 OOS'ZCP . 000'091 000'99 980'9 1 C 09L18 OOS'L~ Z09'8Z 009'88 6 10'9LE 000'PL 9Z6'PL 9Z8'POE 68B'LP OOO'OOP 0GZC9Z $ pas0d0~d zC/C Coz Ad £ a6ed 1102 'LZ Jaqwaldas dl3 9 11s 102 - z 111 102 AJ pue la6pna 1el!de3 ~111 LOZ AA 6u!le!~do~ddv PU~ ~U!I~OPV uo!~n~osatl urnpueJowayy uo!ss!wwo3 43 1'301 au!qDeyy 6u!ueal3 ~olell?3s3-33 sa!qqoi lsaM pue lse3 Gu!pnpu! SlleH l!q!yx3 6~!lu!ed-33 SY!l MaN-33 suo!gmol ~a~od luauaw~ad (9 1) uaays-33 sa~aalslsu!d 3!~tjayy pue s~ay3ng lo~luo3 ~ojoyy-33 JOO~ aauea 3!lau6eyy-33 (008) salqel wooJssel3 8 1x8-33 yuet JolE!.Jedas apnpu! 01 p# pue C# s~all!y3 uo uo!lelnsu! 40 luawaeldat(-33 SJaMOl6~![003 )uawa3elday 6u!d!d Jalyu!Jdg a~! j-33 luaud!nbalslaued ~oqs a~law a~npejnueyy-33 sa~le~ ~uawu!eluo:, ys!p a~nldnt(-33 E# J~II!Y~ ~04 lined puno~9 ~!edau-33 ~alua3 uo!iua~uo3 iel!dw '3s!w ZLIC CAJ-33 z 1 ~j s)u~~~~AoJ~u[ ue!qsapad jaa~ls 19 6u!wle3 ~j~e.11 sdols sng ~e s~u~u~AoJ~UJ~ vav luawaAed slaaJlS JoqJeH lasuns 111 aseyd uo!)e~o)satj Aedallv zc ~j - 6u!dwspuel peou ulo3u!l I! j oJlau 6u!ly6!7 a6ejs Jaleayl Auo[o=) luawa3eldau ~opu!~ pue Jooa uapJe9 le3!ue)og suo~e~ouau 3 luaura3eldau J~MO~S y~eag Ae~yled ue!~tsapad vav II~W peou u103u!i qn13 4109 y3eag !we!yy ay) )e a6eu6!~ leuo!paJ!a '8 su6!~ aal asJno3 4109 a~elda~ qn13 4109 yxag !~ue!yy JO~ ~oloyy pue d~nd uo!)e6!.1~1 JaleM lies (z) as~no:, 4109 pllnqad (s,vg3s) snle~eddv 6u!ylea~g pau!eluo3 )[as 08 40 asey3~nd uo!le~ouayj ~no3 [leg layseq y~ed olod amaj Ay~n3as lay3!d wnu!wnlv as~no3 4109 sa~oys Apuew~o~ uo!geJojsatj pue ~!eda&j ylennpJeog a6e11!~ Aeg WON ~0~4 a~ntea~ AeNlua laaJts CL suo!gwolau pue sapuap~~aa ssaJppV - 6u!pl!ng 999 o) suo!)eAouau as1 uo!te301- yled aws weaa !ue!w 40 43 suo!genouau '8 luawa3eldau JaMoyS ymag JOJ q3af0Jd MaN City Commission Memorandum Resolution Adopting and Appropriating FY 201 1/12 Capital Budget and FY 201 1/12 - 2015116 CIP September 27,201 1 Page 4 The following projects were also added as projects to be considered for funding in the future: Finally, the following projects, previously included in the FY 2010111 Capital Budget and FY 201 011 1 - 201 411 5 CIP, have been deleted for the reasons stated below: NEW FUTURE YEAR PROJECTS CC-East Kitchen Renovations (drop ceiling, floor, doors, lighting, ductwork and refrigerant line insulation replacement ) CC-Exhaust Fans for A and B Exhibit Halls CC-Replacement of all interior signage CC-Replacement of exhibit hall chairs Fire Station #2 Training Annex Kayak Launch at Muss Park North Shore Open Space Park Replacement Fitness Circuit and Trail Renovation Polo Park Play Ground Equipment Replacement West Bay Drive Parking Enhancements Lincoln Road Landscaping - Future Years Total Future Year Funding $ 160,000 300,000 1 10,000 1,300,000 496,029 204,750 99,000 293,000 120,175 600,000 $ 3,682,954 PROPOSED FY 201 1112 CAPITAL BUDGET AND FY 2011112 - FY 2011112 - FY 205116 CAPITAL IMPROVEMENT PLAN (PROPOSED CAPITAL BUDGET AND ClP) CAPITAL PROJECTS DELETED Monuments - Mermaid Miami Beach Intermodal Center-North Beach Miami Beach lntermodal Center-North Beach Relocation of Homeless Services Division Multi-Purpose Municipal Parking Facility CC-New General Master Key System-Exterior CC-Interior Doors Gen Master Key System CC-Panic Hardware Install on Hall Doors CC-Replacement-Sound Equipment CC-Sensor Switches for Lighting Control CC-Video Information System Subsequent to the July 30, 2011 Finance and Citywide projects meeting, the following changes were made to the recommended funding for the reasons stated below and were incorporated in to Proposed Capital Budget and CIP released earlier this month. REASON DELETED Previously Funded Project no longer being pursued Project no longer being pursued Covered under "Renovations to 555 Building - Address Deficiencies and Relocations" Delete Repayment of Parking Impact Fees from City Center Not a Capital Project under $25,000 Not a Capital Project under $25,000 Previously Funded Previously Funded Not a Capital Project under $25,000 Previously Funded 0 $96,000 in Half Cent Transit Surtax funding was transferred from the Crosswalks Phase I project to Crosswalks Phase II. $1,242,421 in funding from the existing Scott Rakow Youth Center Phase II was transferred to Scott Rakow Youth Center - Ice Rink Mechanical Repairs in order to specifically track this portion of the project separately. City Commission Memorandum Resolution Adopting and Appropriating FY 201 1/12 Capital Budget and FY 201 1/12 - 201 5/16 CIP September 27,201 1 Page 5 Funding for the West Avenue Bridge Over Collins Canal was increased in future years to account for estimated road impact fees that are anticipated to be received when the Notice to Proceed is issued in Fiscal Year 2013114. Miami Dade County Interlocal funding for the Middle Beach Recreational Corridor Phase I1 was reduced from $4M to $3,865,517 in Fiscal Year 201 1112 to reflect a more accurate estimate based on the County's proposed reduced millage rate. A new project for Infiltration and Inflow Program Phase II in the amount of $839,500 is recommended to be more appropriately funded through South Pointe Capital rather than using water and sewer funds. ~aint-I 3'h St. Parking Garage 10 was reduced by $1 05,000 because the scope of work was covered within the Maint -1 3'h St. Parking Garage 09 funded project. South Pointe Park Remediation proposed FY2011112 funding was increased to include outside legal and consulting related to ongoing South Pointe Park litigation. The Proposed Capital Budget and CIP also include $572,071 for technology projects with their associated contingency: Conduit Repairs at City Facilities Interactive Voice Response (IVR) Log Management for PCI-DSS Compliance Computer and Camera Replacement The Proposed Capital Budget and CIP also include $4.5 million of funding in FY 201 111 2 for vehicle and heavy equipment replacement. For the first time in Fiscal Year 2012, Capital Renewal and Replacement projects are included as projects in the Proposed Capital Budget and CIP. Beginning in FY 2004105, these projects provide for renewal and replacement of capital items related to our facilities and infrastructure over and above routine maintenance, and are funded by a dedicated millage for renewal and replacement funding to be used for capital projects that extend the useful life of the City's General Fund assets. In prior years, these projects were appropriated by a separate authorizing resolution of the Commission. Beginning in FY 201 1112, these are now incorporated into the capital budget and CIP document and appropriated at the same time as the rest of the capital budget for FY 201 1/12. Renewal and replacement projects for facilities that are not supported by the General Fund are funded from available cash balances in the respective Internal Service or Enterprise Funds, e.g. Fleet, Sanitation, Property Management, Water, Sewer, Stormwater, Parking, and Convention Center. City Center Redevelopment Area (RDA) projects are funded through the City Center RDA budget. The renewal and replacement projects as presented at the July 29, 201 1 FCWPC are included with contingency allocated to each project. Renewal and Replacement projects that were approved in prior years but remain active are also included. The FY 201 1/12 proposed dedicated millage of 0.1083 mills is projected to generate $1,755,752 for the General Fund Capital Renewal and Replacement Fund. In addition, based on the ongoing review of projects funded in prior years, approximately $1.3 million has been identified for recapture for funding General Fund renewal and replacement projects of which $703,849 is recommended for re-appropriation for General Fund Capital Renewal and Replacement projects in FY 201 1/12. City Commission Memorandum Resolution Adopting and Appropriating FY 2011112 Capital Budget and FY 201 1112 - 2015116 CIP September 27,201 1 Page 6 With the exception of Parking, funding needs in the Enterprise Funds are projected to be less than $100,000 per year, including funding for FY 201 1/12. Proposed Parking renewal and replacement projects for FY 201 1/12 total $994,287. The 7'h Street Parking Garage Fund, which is separate because of bond requirements, has FY 201 1/12 renewal and replacement needs totaling $51,087. Fleet Management FY 2011112 renewal and replacement projects total $1 98,647. The City Center RDA FY 201 111 2 renewal and replacement projects total $836,623, with an additional $534,358 for Miami City Ballet. The Anchor Shops and Parking Garage Fund, which is separate because it is not part of the Tax Increment Funding (TIF) of the RDA, has FY 2011112 renewal and replacement needs totaling $75,845. CHANGES SINCE PROPOSED CAPITAL BUDGET AND CIP At the time of the publication of the fiscal year FY 201 1/12 capital budget and FY2011112- FY2015ll6 CIP, the city had identified $650,000 in additional funding for the South Pointe Park Remediation project related to the ongoing litigation of this project. Of this amount, $300,000 is associated with services provided during FY 201011 1 and is therefore more appropriately reflected as an amendment to the FY 201 011 1 capital budget. ANALYSIS Capital lmprovement Plan The FY 201 1/12 - 2015116 CIP for the City of Miami Beach is a five year plan for public improvements and capital expenditures by the City. This document is an official statement of public policy regarding long-range physical development in the City of Miami Beach. The approved Capital lmprovement Plan has been updated to include projects that will be active during FY 201 1/12 through 201 5/16. The Plan has been updated to include additional funding sources that have become available, changes in project timing, and other adjustments to ongoing projects as they have become better defined. Certain adjustments have been made to reflect projects that have been reconfigured, re-titled, combined with or separated from other projects and/or project groupings. These adjustments have no fiscal or cash impact and are as a result of a comprehensive review of the program to insure that our plan accurately reflects all project budgets, funding sources and commitments. The Plan also contains information on appropriations prior to FY 201 111 2 for ongoinglactive projects, as well as potential future appropriations beyond FY 201 511 6. In conjunction with the development of the FY 201 1/12 Capital Budget and CIP, the City began to develop a list of potential projects that may be funded in the future, including projects that have been approved as part of a plan but not yet sequenced or approved for funding. Over time, it is anticipated that this list will be expanded. City Commission Memorandum Resolution Adopting and Appropriating FY 201 1/12 Capital Budget and FY 201 1/12 - 2015116 CIP September 27,201 1 Page 7 Financings A number of capital financing transactions are reflected in the Capital lmprovement Plan including: General Obligation Bonds, Stormwater Revenue Bonds, Water and Sewer Revenue Bonds, Gulf Breeze Loans and an Equipment Loan. In 1995, the City issued $59 million in Water and Sewer Revenue Bonds. In 1997, the City paid $1 5 million for the 1996 authorized General Obligation Bonds to construct, renovate and rebuild parks and recreation facilities within the City's park system. In 2000, the City issued the initial $30,000,000 of the authorized $92,000,000 1999 General Obligation Bond. These funds were issued to expand, renovate and improve fire stations and related facilities; improve recreation and maintenance facilities for parks and beaches; and improve neighborhood infrastructure. In 2000, the City also issued $54,310,000 in Water and Sewer Bonds and $52,170,000 in Stormwater Revenue Bonds. In addition, the City was granted a $4 million Section 108 U.S. Housing and Urban Development Loan for improvements to neighborhood streets, North Shore Park and Youth Center. In 2001, the City executed loan agreements with the City of Gulf Breeze, Florida, providing $15 million for the renovation and improvement of two City owned golf courses and their related facilities. The City issued the remaining $62,465,000 of the referendum approved $92 million General Obligation bonds in July 2003 for improving neighborhood infrastructure in the City. Further, in 2006 and 201 0, the City executed loan agreements with the City of Gulf Breeze, Florida, providing an additional $24 million and $30 million for water and sewer projects, respectively. In FY 2009110, the City issued $36 million in water and sewer bonds, and approximately $50.2 million in Proposed Stormwater Bonds are anticipated to be issued during FY 201 1/12, and the Proposed Storm Water Bond funded projects are anticipated to be appropriated when the bonds are sold. Stormwater funding needed prior to the issuance of the Proposed Stormwater Bonds and any additional water and sewer funding needs during FY 201 111 2 are anticipated to be advanced through a line of credit that will then be replaced by future bonds. The associated repayments to the Line of Credit ($23,380,389) and the Stormwater Enterprise Fund ($3,167,535) will be made at the time of sale as well. Project 4400 Middle North Bay Road 48 Outfall at Easement 4180-4200 Chase Bay Road Pump Station Outfall Bayshore BP-8A I Central Bayshore BP-8B I Lower No. Bay Road Bayshore BPSC / Lake Pancoast Bayshore BP-8D Proposed Storm Water Bonds FY-2011 I1 2 $140,627 198,962 318,000 9,856,605 3,515,281 1,599,060 2,736,983 Bayshore Sunset Isl 1 & 2 ROW BPSE Belle Isle Outfall Pipe Replacement Biscayne Point Neighborhood Improvement 1,924,652 51 1,238 6,591,259 City Commission Memorandum Resolution Adopting and Appropriating FY 201 1/12 Capital Budget and FY 201 1/12 - 2015116 CIP September 27,201 1 Page 8 In addition, there are approximately $1 1.4 Million in proposed water and sewer funded projects, currently reflected as part of FY 201 211 3 programmed funding, that are proposed to be funded in Fiscal Year 201 112012. These projects are proposed to be funded from the Line of Credit, which will be available after the Storm Water Bonds are sold. The Line of Credit will be replaced in future years by proposed future bonds along with funding for the remaining water and sewer projects totaling approximately $30.6 Million. Citywide Storm water Master Plan Drainage Hot Spots (4400 Middle N. Bay Road) Drainage Improvements - 44th St. & Royal Palm Drainage Improvements - North Bay Road & 56th Street Flamingo Neighborhood Bid Pack A Flamingo Neighborhood Bid Pack C La Gorce ROW Nautilus Neighborhood Improvements Normandy Isle Neighborhood Improvements Normandy Shores Neighborhood Improvements Oceanfront Neighborhood Improvements Palm & Hibiscus Island Enhancements ROW Improvements on Prairie Ave. Seawall - Lincoln Road Street end West Star Island Row Sunset Harbor Pump Station Upgrades Venetian Neigh -- Venetian Islands West AvenueIBay Road Improvements Total 600,000 1 ,I 59,373 650,000 187,292 428,774 702,365 5,877,488 167,220 198,006 2,066,698 383,246 5,853,398 377,000 173,000 803,000 520,000 2,016,120 654,325 $50,209,972 Sanitary Sewer Manhole (CW) Rehab West AvenueIBay Road Improvements Total 500,000 246,465 $11,390,974 City Commission Memorandum Resolution Adopting and Appropriating FY 201 1/12 Capital Budget and FY 201 1/12 - 2015116 ClP September 27,201 1 Page 9 Proposed Capital Budget The City's proposed annual capital budget contains capital project commitments recommended for appropriation for FY 201 111 2 (Proposed Capital Budget). Preparation of the Proposed Capital Budget occurred simultaneously with the development of the FY 201 1/12 - 2015116 CIP and FY 201 1/12 proposed operating budget. The Proposed Capital Budget presents project budgets for both the current and new capital projects necessary to improve, enhance and maintain public facilities and infrastructure to meet the service demands of residents and visitors to the City of Miami Beach. Capital reserves, debt service payments, and capital purchases found in the operating budget are not included in this budget. However, we have included a capital equipment section, which itemizes purchases of major capital equipment, fleet, light and heavy equipment and information technology related acquisitions. The Proposed Capital Budget for FY 201 1/12 appropriates funding for projects that will require commitment of funds during the upcoming fiscal year, including construction contracts and architectlengineer contracts to be awarded during the upcoming year and capital equipment acquisitions recommended for appropriation in conjunction with the FY 201 1/12 Operating Budget. A Pay-As-You-Go component of the Capital Budget was established in FY 2005106 for new projects or unfunded scope in existing projects. In FY 201 111 2, $1,171,173 in Pay-As-You- Go funding for projects is recommended. These are offset by Pay-As-You-Go and capital reserve funds previously re-captured from the Fire Station 21Hose Tower project and reprogrammed for new Pay-As-You-Go capital projects. The Pay-As-You-Go projects recommended for funding are the 555 17'~ Street Building Renovations, Installation of a Black Aluminum Fence at Fairway Park, Normandy lsle Neighborhood ROW Phase Ill Normandy Shores Neighborhood ROW Phase II, and purchase of 80 SCBAs by the Fire Department. The Capital Budget also recommends appropriation of approximately $74,000 in General Obligation (GO) Bonds-Parks & Beaches for the Polo Park Basketball Courts Renovation project and $580,000 in GO Bonds-Neighborhood Improvement for the Normandy lsle Neighborhood Right of Way Phase II project. In addition, over $2 million in Quality of Life funds are recommended for appropriation for tourism-related eligible projects such as Baywalk Phase 1, Restorative Tree Wells on Washington Ave., Boardwalk Repair and Restoration, Band Shell Master Plan Improvements, and a Skate Park in North Beach. Approximately $3.9 million is recommended for appropriation from the Miami-Dade County Convention Development Tax (CDT) Interlocal Agreement funds for the Middle Beach Recreational Corridor Phase II project, a CDTImunicipal resort tax eligible project. Approximately $9 million is recommended for appropriation from the South Pointe Capital fund and pre-termination South Pointe RDA funds for several projects in the South Pointe area including Infiltration & Inflow Phase Ill and improvements in the Flamingo Neighborhood. City Commission Memorandum Resolution Adopting and Appropriating FY 201 1/12 Capital Budget and FY 201 1/12 - 2015116 CIP September 27,201 1 Page 10 The Proposed Capital Budget includes $572,071 for technology projects with their associated contingency: Conduit Repairs at City Facilities Interactive Voice Response (IVR) Log Management for PCI-DSS Compliance Computer and Camera Replacement The Proposed Capital Budget and CIP also includes almost $2.4 million in Renewal and Replacement Funds for upkeep of General Fund facilities, and $4.5 million for vehicle and heavy equipment replacement to be funded from the Equipment Loan program. Approximately $2.2 million is recommended for Convention Center Funds, including painting of exhibit halls, various repairs, escalator cleaning equipment, fire sprinkler piping replacement, and the purchase of a magnetic dance floor. The Proposed Capital Budget includes $1 .I million in funding for various transportation improvement projects, including traffic calming, alleyway restoration, bus stop improvements, pedestrian crossing improvements, and street repaving in the Sunset Harbor area. The Proposed Capital Budget has also been updated to reflect the ongoing parking lot and garage refurbishment and replacement program with projects recommended for FY 201 111 2 including 42nd St. Garage Elevator Replacement, 42"d St. Garage Fire Alarm System Replacement, 1 7th St. Garage Perimeter Light Replacement, and the 7th Street Garage Fire Alarm System Replacement. The Proposed Capital Budget for FY 201 1/12 totals $62,327,012, of which $38,364,966 is proposed to be appropriated on September 27, 201 1. Approximately $50.2 million in proposed new Stormwater bonds and the associated repayments to the Line of Credit ($23,380,389) and the Stormwater Enterprise Fund ($3,167,535) will be appropriated when the bonds are sold. Further, it is anticipated that there will continue to be a phased approach for the issuance of water, sewer and stormwater financing. Under this approach, the City has accessed a line of credit to allow the City to have the necessary funding capacity to enter into new projects, while allowing the City more time to both build the necessary rate capacity to issue additional tax-exempt bonds through rate increases and also spend down the current committed but unspent bond proceeds. City Commission Memorandum Resolution Adopting and Appropriating FY 201 1/12 Capital Budget and FY 201 1/12 - 201 5/16 CIP September 27,201 1 Page 11 FY 201 1/12 Proposed Capital Budget by funding source: City Commission Memorandum Resolution Adopting and Appropriating FY 201 1/12 Capital Budget and FY 201 1/12 - 2015116 CIP September 27,201 1 Page 12 FY 201 1112 Proposed Capital Budget by program area: As a result, it is recommended that $38,364,966 be appropriated at this time. CONCLUSION: The Administration recommends adoption of the first amendment to the Fiscal Year (FY) 201 01201 1 capital budget, reprogramming $1,402,057 in Capital Reserves as Pay-As-You- Go, approving the Capital Improvement Plan for FY 201 1112- 2015116, and appropriating the City of Miami Beach Capital Budget for Fiscal Year (FY) 201 1112. RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE FISCAL YEAR (FY) 201 01201 1 CAPITAL BUDGET, REPROGRAMMING $1,402,057 IN CAPITAL RESERVES AS PAY-AS-YOU-GO FUNDS, APPROVING THE CAPITAL IMPROVEMENT PLAN FOR FY 2011/12- 2015116 AND APPROPRIATING THE CITY OF MIAMI BEACH CAPITAL BUDGET FOR FISCAL YEAR (FY) 201 1/12 WHEREAS, $650,000 was included in the proposed FY2011112 capital budget for outside legal counsel and consulting services related to ongoing litigation for the South Pointe Park Remediation project. WHEREAS, the City has incurred approximately $300,000 in outside legal and consulting fees in Fiscal Year 201 011 1 for ongoing litigation for the South Pointe Park Remediation capital project. WHEREAS, these amounts are appropriately charged to the Fiscal Year 201011 1 capital - * budget rather than FY 201 1 11 2; WHEREAS, the Finance and Citywide Project Committee recommended the use of $2.1 million in general obligation Fire bonds in lieu of previously programmed capital reserves and pay- as-you-go funds from Fire Station 21Hose Tower project; WHEREAS, $1,402,057 in capital reserve funding made available from Fire Station 21Hose Tower project is recommended to be preprogrammed as pay-as-you-go funds in fiscal year 201 111 2; and WHEREAS, the 201 1112 - 2015116 Capital Improvement Plan (CIP) for the City of Miami Beach is a five year plan for public improvements and capital expenditures by the City; and WHEREAS, this document is an official statement of public policy regarding long -range physical development in the City of Miami Beach; and WHEREAS, on July 21,1999 the City Commission approved the FY 1999 - FY 2004 CIP for the City; and WHEREAS, since that time the City has issued additional General Obligation Bonds pursuant to referendum; Water and Sewer Revenue Bonds; Stormwater Revenue Bonds; 2001,2006 and 2010 Gulf Breeze Loans; 2010 Parking Bonds; a $1 5 Million Equipment Loan; and WHEREAS, beginning in FY 2005106, the City committed to funding a Pay-As-You-Go component of the capital budget funded from General Fund Revenues, as well as committing to using Resort Tax Quality of Life funds in North, Middle, and South Beach for capital projects; and WHEREAS, the approved CIP has been updated to include projects that will be active during the FY 201 1/12 through 201 511 6; and WHEREAS, the proposed capital budget itemizes project funds to be committed during the upcoming fiscal year detailing expenses for project components which include architect and engineer, construction, equipment, Art in Public Places, and other related project costs; and WHEREAS, on June 30,201 1 and July 29,201 1 the FY 201 1/12 capital funding priorities were discussed at meetings of the Finance and Citywide Projects Committee and adjustments were made to the funding recommendations presented; and WHEREAS, the capital budget for FY 201 111 2 therefore totals $62,327,012, with $38,364,355 recommended for appropriation at this time for projects and capital equipment acquisitions; and WHEREAS, based on current project schedules, additional water and sewer, and stormwater financings are financed over a series of years; and WHEREAS, under this approach, the City utilizes a line of credit to allow the necessary rate capacity to issue additional tax-exempt bonds through rate increases and also spend down the current committed but unspent bond proceeds; and WHEREAS, approximately $50,209,972 in stormwater bonds and associated repayments to the Line of Credit ($23,380,389) and the Stormwater Enterprise Fund ($3,167,535) will be appropriated when proposed future stormwater bonds are sold; and WHEREAS, there are approximately $1 1.4 Million in proposed water and sewer funded projects that are proposed to be funded in Fiscal Year 201 112012 from the line of credit made available after the Proposed Stormwater Bonds are sold; and WHEREAS, the proposed sources of funding for the FY 201 111 2 capital Budget are included in "Attachment A; and WHEREAS, the proposed projects to be appropriated with the FY 201 011 1 capital Budget and the five-year CIP are included in Attachment "B"; and WHEREAS, the proposed projects in the Proposed Five Year CIP are included in "Attachment C"; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby adopts and appropriates the first amendment to the capital budget for FY2010/11 in the amount of $300,000 for the South Pointe Park Remediation Project from South Pointe Capital funds; reprograms $1,402,057 in Capital Reserves as Pay-As-You-Go; adopts the Capital Improvement Plan for FY 201 1/12 through 2015116; and appropriates the City of Miami Beach Capital Budget for FY 201 1/12. PASSED AND ADOPTED THIS 27th DAY OF SEPTEMBER 201 1. Attest: CITY CLERK MAYOR APPROVED AS TO FORM & LANGUAGE ATTACHMENT A FY 201 111 2 CAPITAL BUDGET SUMMARY OF FUNDING SOURCES Attachment B. Capital Budget Projects Convention Center pfsclastab pfsesclmac pfsspripip pfsmisc012 pfsnewinsu pfsmagdanc pfsmanpanl pfsmotorcb pfsnewlift pfspainthl pfsrepchil pfsrupdisk pfsperm pow Equipment eqc80scbas eqcl2vehre General Public Buildings pfs555adrs pfs bgdwrep pfsctlight Golf Courses pknnsgcfen pkmm bgciri pkmm bgcsin lrlformation Technology eqcconduit eqcinfocom eqcintervr eqclogmgmt Project CC-8x18 Classroom Tables CC-Escalator Cleaning Machine CC-Fire Sprinkler Piping Replacement CC-FYI 111 2 Misc. Capital CC-Insulation Replacement Chillers 1,4 CC-Magnetic Dancefloor CC-Manufacture Twelve Show PanelsIEquip. CC-Motor Control Buckets and Metric Pins CC-New Lifts CC-Painting Exhibit Halls and Lobbies CC-Repair Ground Fault for Chiller #3 CC-Rupture Disk Containment Valves CC-Sixteen Permanent Power Locations Convention Center Total Purchase of 80 SCBA's by Fire Dept. FY12VehicleIEquipment Replacement Equipment Total 555 17th Street Building Renovations Botanical Garden DoorNVindow Replacement Colony Theater Stage Lighting Retro Fit General Public Buildings Total NSGC Aluminum Picket Security Fence Rebuild Two Irrigation Pumps at MBGC Replace TeeIDirectional Signs at MBGC Golf Courses Total Conduit Repairs at City Facilities Info & Comm Tech Contingency Interactive Voice Response (IVR) Log Management for PCI-DSS Compliance & Attachment B. Page 1 Amount to Appropriate as of September 27,201 1 eqccompeqp Parking Garages pgmculcamp pgsm 13stpg Parks pknbandshe pkmrakowsr p km ra kowyc pkssppreme pfssptpier pfnskatepk pxnfairpar pkcpolobbc pfcbeachsh Renewal and Replacement rrs17stgar rrm21 recct rrm21 strcr rrn43stgar rrn42stgar rrn44stgar rrs555hvac rrs555ele2 rrs555edor rrs555elec rrs777hvac rrs7stgar-f rrsanchors rrm bassebb rrm bassext rrmbassmgr rrm basshpr Project Replace Macintosh Computers/Cameras Information Technology Total Collins Park Parking Garage Maint-13 St Parking Garage 10 Parking Garages Total Band Shell Master Plan lmprov Scott Rakow Youth Center - Ice Rink Mec Scott Rakow Youth Center Phase II South Pointe Park Remediation South Pointe Pier City of Miami Beach Skatepark Fairway Park Install. Black Alum. Fence Polo Park Basketball Courts Renovation Beach Shower Replacement & Renovations Parks Total 17th St.Garage Perimeter Light Replaceme 21 st Recreation Center Electrical Servic 21st St. Recreation Center Repairs and R 42nd St. Garage Elevator Replacement 42nd St. Garage Fire Alarm System Replac 42nd St. Garage HVAC Replacement 555 Bldg HVAC Upgrade and Replacement 555 Building Electrical Upgrades 555 Building Exterior Doors Replacement 555 Building Main Electrical Service Rep 777 Building HVAC Replacement 7th St. Garage Fire Alarm System Replace Anchor Shops Fire System Replacement Bass Museum Electrical Breaker Box Repla Bass Museum Exterior Lighting Replacemen Bass Museum Generator Replacement Bass Museum Heat Pump Replacement Amount to Appropriate as of September 27,201 1 106,385 572,071 Attachment B. Page 2 rrmbasshvc rrm bassher rrmbassmir rrm basslci rrsbyronac rrsbyronsh rrccarlccl rrscitycas rrscityctv rrscityele rrscityfsp rrscityvdt rrscityhsd rrsfiresac rrsflahvac rrsfleets2 rrsfleetec rrsfleetac rrsfleetsb rrcgardenc rrslincmal rrslincmfp rrmm bgolcr rrmmiamicb rrnnorthyc rrspsthvac rrcpwmfewr rrcpwmfgrp rrcswipool rrmscottyc rrssouthcc rrsssouths rrssouthac Project Bass Museum HVAC Replacement Bass Museum Hydraulic Elevator Replaceme Bass Museum Insulation Replacement Bass Museum Light Controls and lnstrumen ByronICarlyle Replacement of Lobby AIC ByronICarlyle Replacement of Stage and H Carl Fisher Clubhouse Exterior Window City Hall Card Access System Replacement City Hall CCTV Security System Replaceme City Hall Elevator Repair City Hall Fire Supression Pump Replaceme City Hall High Voltage Distribution Repa City Hall Storefront Door Assembly Repla Fire Station 1 HVAC Replacement Flamingo Park Pool HVAC Upgrade Fleet Mangement Shop 2 Building Exhaust Fleet Mangement Shop 2 HVAC Electrical C Fleet Mangement Shop 2 HVAC Repair FleetISanitation Fire Alarm System Repl Garden Center Lighting Fixtures and Wiri Lincoln Rd. Mall Accent Lighting Replace Lincoln Rd. Mall Fountain Pump, Landscap Miami Beach Golf Course Clubhouse Carpet Miami City Ballet HVAC Replacement North Shore Youth Center -- A/C & Duct R Police Station HVAC Replacement and Duct Public Works Maint. Facility Exterior Wi Public Works Maint. Facility Generator R Scott Rakow & North Shore Swimming Pools Scott Rakow Youth Center -- Replace Cool South Shore Community Center -- Replace South Shore Community Center Emergency L South Shore Community Center HVAC Replac Renewal and Replacement Total Collins Park Ancillary Improvements Attachment B. Page 3 Amount to Appropriate as of September 27,201 1 84,456 66,127 27,911 57,070 82,500 132,000 53,720 88,480 118,944 238,700 32,175 27,500 37,101 49,500 75,075 46,787 79,592 29,368 85,800 73,725 100,760 62,315 52,635 534,358 94,183 147,675 85,522 195,314 86,460 98,072 1 30,748 59,180 343,301 5,474,184 rwnnormisl rwnnormsho rwsstarisl n~svenebpc pknnormsig pkctreph2c pkctreeph3 pwsalleres trcboardrt pksflaml Og nrvsflam bpa pwslinclan pkslinrdls rwcrowim pl pwssun h pav rwsuplight Transit I Transportation trsl6stops rwn71 dicke pwnbi keway encbaywalk pwcbusstop rwccitywcr nNccrosswa rwccrospii enm bchwlk2 pwepedcsii encsunplaz pwmtra5l st rwctrafcal Ultilities rwubelleou Project Normandy lsle Neighborhood ROW Phase II Normandy Shores Neighborhood ROW Ph I1 Star Island Enhancements Venetian Neigh - Venetian Islands Normandy171 Street Welcome Sign & Site RestorativeTreeWell-2C-71 St Bay DIRueNot RestorativeTreeWell-PH 3-Washington Ave Alleyway Restoration - Phase Ill Boardwalk Repair and Restoration Flamingo log-6 Street ROW improvements Flamingo Neighborhood - Bid Pack A Lincoln Rd Landscaping-Lenox to Wash. Lincoln Road Mall ADA Pedestrian pathway ROW Improvement Project Sunset Harbor-Streets Pavement Uplightingdth Street (Lenox to Ocean Av StreetlSidewalks Total 16th St. Operational Improv/Enhancement 71st St & Dickens Intersection lmprov 71 st StreetlNormandy Drive Bikeway Conn. Baywalk Phase I Bus Stop lmprovements City W Curb Ramp InstallationlMaint Crosswalks Crosswalks - Phase II Middle Beach Rec Corridor Ph I1 Pedestrian Crossing lmprovements Sunrise Plaza Pedestrian Connection Traffic Calming 51 Street Traffic Calming Program Transit 1 Transportation Total Belle lsle Outfall Pipes Replacement Attachment B. Page 4 Amount to Appropriate as of September 27,201 1 1,396,215 270,073 0 0 50,000 85,432 683,911 412,500 304,825 6,701,399 (2,272,301 ) 150,000 87,500 114,900 280,100 108,800 12,373,355 utswmialtn utnformain utcinfphii Project Amount to Appropriate as of September 27,201 1 12" DIP Water Main lmprov 5 Alton &Ocean (900,000) 69th to 72nd Str 30-inch Parallel Force 1,453,650 Infiltration & Inflow Program Phase II 839,500 Utilities Total I ,393,150 GRAND TOTAL 38,364,966 Attachment B. Page 5 ATTACHMENT C CITY OF MIAMI BEACH 2012-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM 9/19/2011 19:05.33 PROJECT PROGRAM Previous Years 2011112 201U13 2013114 2014115 2015116 Future Total pfcarttnpp Fund 147 Art ~n Publ~c Places 0 0 380,346 0 0 0 0 380,346 pksl~ghths L~ghthouse 500,000 0 0 0 0 0 0 500,000 ..... . , . - ..,- , .". , . "- . ;,, , ,. \ , .. <, . . CIP Office ..... ........ ...... .... .... + ,- ....... .............. , 4.. ' ,,, , ............. , , ........ ..A. ........... -.:..:, ....: a...: .._,.. .:a:: ......, :. ,I ha-. . :., .. : ...- a.... .% .-....-. .>.......A'. ;.,.?..:<?.j pwnbridlgt Bridge Light (77 St / Hawthorne Ave) 30,000 0 0 0 0 0 0 30,000 rwmicbridg Indian Creek Pedestrian Bridges 0 0 0 0 0 0 595,185 595,185 rwn73bridg Bridges: Holocaust, Biarritz, Fountain 0 0 0 0 0 0 1,666,000 1,666,000 a W rwchenedon Henedon Avenue Bridge 212,421 0 0 0 0 0 0 212,421 0 rwmpinebri Pine Tree Drive Bridge 257,400 0 0 0 0 0 0 257,400 rwcsunbri2 Sunset Island 3 Bridge #876708 267.604 0 0 0 0 0 0 267.604 rwcsunbril Sunset Island 4 Bridge #a76707 279.374 0 0 0 0 0 0 279,374 rwm29bridg West 20th Street Bridge 476,000 0 0 0 0 0 0 476,000 rwcweavbri West Ave Bridge Over Collins Canal 2,995,620 0 513.068 1,901.033 0 0 0 5,409,721 pfslightre CC-Lighting Replacement MeetinglBallroc 0 0 0 0 0 0 3,000.000 3,000,000 pfsdisctws CC-Replace Disconnects of Cooling Towe 0 0 45,000 : 0 0 0 0 45,000 CIP Qffi pfsconvctr CC-Convention Center ADA 4,367,135 0 0 0 0 0 0 4,367,135 pfsclastab CC-8x18 Classroom Tables 0 50,000 0 0 0 0 0 50,000 pfsavmainr CC-Air Vents on Main Roof Drains 0 0 0 0 0 0 1,000,000 1,000,000 pfcairwall CC-Airwall Replacement 2,075,000 0 0 0 0 0 0 2,075,000 pfsbalrmup CC-Ballroom Upgrades 65,000 0 0 0 1,200,000 0 0 1,265,000 pfsbuswest CC-Buss Duct Replacement for West Wra 1,119,000 0 0 0 0 0 0 1,119,000 pfsbussduc CC-Buss Duct Testing 275,000 0 0 0 0 0 0 275,000 \\miamibeach328\EdenReports\Reporfs\cmb\I Budget By Program Spread.rpt CITY OF MIAMI BEACH 2012-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM Page 2 of 18 9/19/2011 19:05.33 PROJECT PROGRAM Previous Years pfsairhand CC-CID Airhandlers Replacement 0 pfsconcprp CC-Carpet Replacement 150.000 pfscatbeam CC-Catwalk Beam Cleaning 0 pfsccchill CC-Chiller Surge Protection 70,000 pfscleaneq CC-Cleaning Equipment 200,000 pfsconcstr CC-Concession Stand Renovations 0 pfsewsider CC-East & West Sidewalk Replacement 0 pfskitchre CC-East Kitchen Renovations 0 pfcelecbus CC-Electric Buss Duct 697,865 pfselestpm CC-Electrical Switchgear Testing & Maint 500,000 pfsesclmac CC-Escalator Cleaning Machine 0 pfsescrucc CC-Escalator ReplacementlUpgrades 1,350,000 pfsexecoff CC-Executive Offices Furniture Replacem 0 pfsexhfans CC-Exhaust Fans for A and B Exhibit Hall 0 pfsexhalfr CC-Exhibit Hall Floor Repairs 0 pfsexhalup CC-Exhibit Hall Lighting Upgrades 0 pfsextmars CC-Exterior Marquee Signage 0 pfsextshrp CC-Exterior Stairs & Handrailing Repairs 0 pfsspripip CC-Fire Sprinkler Piping Replacement 0 pfsfipcorp CC-Floor Pocket Connector Replacement 0 pfsfuteffe CC-Future FF & E 0 pfsfgbmope CC-Future General Maintenance 0 pfsfuturem CC-Future Mechanical 0 pkfy6rest CC-FY 06 ADNRestroom Renovation 1,936,729 pfsfyO6mis CC-FY 06 Miscellaneous 200,000 pfsmisc012 CC-FYI1112 Misc. Capital 0 pfsgarrecc CC-Garbage & Recycling Containers 200,000 pfsglassbw CC-Glass Block Windows Replacement 331,000 pfshalleti CC-Hall C Electrical Transformer Install 100,000 pfshssysrp CC-Hall Sound System Replacement 300,000 pfshurrigi CC-Hurricane Impact Glass Installation 0 pfsconctgo CC-Improvements County GO 600,000 pfsiexfans CC-Install Exhaust Fans in Storage Ramp 250,000 pfsrubflrs CC-Install Rubber Floor in Serv Corridor 0 pfcinsbacf CC-Installation of BacMow Preventers 150,000 pfsnewinsu CC-Insulation Replacement Chillers 1,4 0 pfslandscc CC-Landscaping 150,000 pfslsupgrd CC-Life Safety Upgrades 200,000 pfsldbrmnt CC-Loading Dock Bays Repair & Maint 0 pfsmagdanc CC-Magnetic Dancefloor 0 pfsmkeqptu CC-Main Kitchen Equipment Upgrades 0 pfsmtbsltl CC-Maintenance Boom Sissors & Fork Lii 0 pfsmanpanl CC-Manufacture Twelve Show PanelsIEq~ 0 pfsmeetrmr CC-Meeting Room Renovations 0 tlmiamibeach328lEdenReportslReportslcmb\lCapital Budget By Program Spread.rpt Future 0 0 0 0 150,000 0 0 0 0 800,000 0 0 0 0 800,000 400,000 1,800,000 350,000 0 0 475.635 5,600,000 75,000 0 0 0 0 0 0 200,000 4,000,000 54,400,000 0 350,000 0 0 0 1,000,000 80,000 0 0 300,000 0 2,000,000 Total 650,000 3,150,000 25,000 70,000 350,000 50.000 600,000 160,000 697,865 1,300,000 72,000 1,350,000 300,000 300,000 800,000 400,000 1,800.000 350,000 35,000 700.000 475.635 5,600,000 75,000 1,936,729 200,000 250,000 200.000 331,000 100,000 500,000 4,000.000 55,000,000 250,000 350,000 150,000 40,000 150,000 1,200,000 80.000 75,000 90,000 300,000 50,000 2,000,000 CITY OF MIAMI BEACH 201 2-201 6 CAPITAL IMPROVEMENT PLAN BY PROGRAM Page 3 of 18 911 912011 19:05.33 PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 2015116 Future Total pfsmeetrsr pffy07misc pfsmiscOl0 pfsmiscfut pfsmotorcb pfsnewlift pfsoutaird pfcpackura pfspaintcc pfspainthl pfsprotrck pfspropgts pfsrenchil pfsrnspark pfsrepchil pfsrepddrs pfsrepldds pfsrepruwc pfsrephrbs pfsrepskyl pfsintsign pfsrepdoor pfsrepchrs pfsconrseq pfsconrcta pfsrupdisk pfsscsupgs pfspermpow pfssexhfan pfssolarep pfst&crepl pfsteleinf pfswestktr pfswsdrepl CC-Meeting Room Signage Replacement CC-Misc Replacement CC-Misc. Projects Fiscal Year 2010 CC-Misc. Projects Future Years CC-Motor Control Buckets and Metric Pin: CC-New Lifts CC-Outside Air Dampners CC-Package Unit ReplacementAC CC-Painting CC-Painting Exhibit Halls and Lobbies CC-Procurement of Truck CC-Property Gates Access Control CC-Renovate Old NW Chiller Room CC-Renovation -North & South Load Docl CC-Repair Ground Fault for Chiller #3 CC-Replace 2 Loading Dock Roll Up Do01 CC-Replace 4 Loading Dock Doors CC-Replace 6 Package Roof Units-Water CC-Replace High Reach Boom Scissors CC-Replace Skylight Panels CC-Replacement of All Interior Signage CC-Replacement of Doors East Side CC-Replacement of Exhibit Hall Chairs CC-Replacement-Sound Equipment CC-Roofing of Cooling Tower Area CC-Rupture Disk Containment Valves CC-Security Camera System Upgrades CC-Sixteen Permanent Power Locations CC-Smoke Exhaust Fans CC-Solar Energy Project CC-Table & Chair Replacement CC-Telephone Infrastructure & Switching CC-West Kitchen Renovation CC-West Side Dimmer Replacement pksbotanic Botanical Garden (Garden Center) 1,851,925 0 0 0 0 0 0 1,851,925 encanimalw Animal \\miamibeach328\EdenReports\Reports\cmb\l Budget By Program Spread.rpt CITY OF MIAMI BEACH 2012-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM Page 4 of 18 9/19/2011 19:05.33 PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 2015116 Future Total enccollcep encdiscool encdomwatr encfacligh gtl Oenergy enchvaccon encpowtrrp enctrashrp Collins Canal Enhancement Project District Cooling Plant Domestic Water Conservation Facility Lighting and Lighting Control Geothermal Cooling - Police Station HVAC Controls Power Transformer Replacement Trash Receptacles eqcgpstsys AVLTracking System for City Vehicles 92,310 0 0 - 0 0 0 0 92,310 eqcinfocce Commission Chamber Equipment 46,000 0 0 0 0 0 0 46,000 emcemerop Fire Station No. 2 EOC 936,131 0 0 0 0 0 0 936,131 eqccardiac LP15 Cardiac MonitorIDefibrillator Repla 147,169 0 0 0 0 0 0 147,169 eqc80scbas Purchase of 80 SCBA's by Fire Dept. 0 576,019 0 0 0 0 0 576,019 eqclovehre FYlIVehiclelEquipment Replacement 3,882,500 0 0 0 0 0 0 3,882,500 eqcl2vehre FY12VehiclelEquipment Replacement 0 4,506,500 0 0 0 0 0 4,506,500 eqcuplaser Upgrade Laserfische Avante 31,320 0 0 0 0 0 0 31,320 eqcinfwifi WFi eqciwificb WFi City Buildings pgcmstmph3 Master Meter Phase Ill 449,962 0 0 0 0 0 0 449,962 pgcpayfoot Pay on Foot (POF) Machines 2,236,538 0 0 0 0 0 0 2,236,538 .. . , .... Parks & ~eckation ,. i; eqchandrrc Citywide Electronic Timekeeping 43,405 0 0 0 0 0 0 43,405 \\miamibeach328\EdenReports\Reports\cmb\PA\Capita/ Budget By Program Spread.rpt CITY OF MIAMI BEACH 2012-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM Page 5 of 18 9/19/2011 19:05.33 PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 2015116 Future Total Tourism and Cultural Development -. - -- - - .-A- A- . . a- us --. - /A.L-~ ~ - -4 Gar-A I pfccoloaeq Colony Theatre SoundIAudio Equip Purch 67,400 0 0 0 0 0 0 67,400 pfn72ctyci 72nd S1: Community Center Improvement 500,000 0 0 0 0 0 0 500.000 pfcbuilrev Second Floor Renovation-Building Dept. 206,713 0 0 0 0 0 0 206,713 pfs6strest pfc777buil pkcbassph2 pfcbrrooms 07gtcolonl fsmfireno2 pfmltlstag pfmpkmaint pfspropfac pfmpwsyard 6th Street Restrooms 777 Building Renovation Bass Museum Phase II Expansion Beachfront Restrooms Colony Theatre Renovation Fire Station 2lHose Tower Little Stage Complex Parks Maintenance Facility Property Management Facility Public Works Facility ........ <" .$ . *, . .:, ..., , .... -/ .... . . , , ; .. , -9: ; - ............. .. .. ? i.?? ~-.-~%%f&??~~ pknnsospmf NSOP Beach Maint. Facility 0 0 0 0 0 0 2,745,090 2,745,090 pfsbgdwrep Botanical Garden DoorNVlndow Replacen 0 116,085 0 0 0 0 0 116,085 pfsctlight Colony Theater Stage Lighting Retro Fit 0 65,000 0 0 0 0 0 65,000 pfssshoreg S. Shore Comm Center (County G.O.) \\miamibeach328\EdenReports\Reports\cmb\ Budget By Program Spread.rpt CITY OF MIAMI BEACH 2012-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM Page 6 of 18 9/19/2011 19:05.33 PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 201 511 6 Future Total pkmcartbar Miami Beach Golf Course Cart Bam 1,423,821 0 0 0 0 0 0 1,423,821 pknnorgccb Normandy Shores GC Cart Barn 1,431.697 pknnormsch Normar~dy Shores GC Club House 3,573,156 pknnorgcmf Normar~dy Shores GC Maint Facility 946,823 pknnorgctr Normandy Shores GC Two Restrooms 362,537 pknnormsgc Normandy Shores Golf Course 9,228.385 pkmgcmpar3 Par 3 Golf Course Master Plan 4,174,022 pkmmbgcnet MBGC-Golf Range Netting 0 0 pknnormgin Normar~dy Shores GC Grow-in 945.836 0 pknnsgden NSGC Aluminum Picket Security Fence 0 74,925 pkmmbgciri Rebuild Two Irrigation Pumps at MBGC 0 33,600 pkmmbgcsin Replace TeelDirectional Signs at MBGC 0 28,502 g#&' ,*%A eqrppermac Bldg Dev Process Ent System 1,600,000 0 0 0 0 0 0 1,600,000 eqcprojdox Projectdox Electron~c Plan Rev Software 547,000 0 0 0 0 0 0 547,000 eqcrectma3 Records Imaging 3lCleanlinessAssessme 29,268 0 0 0 0 0 0 29,268 eqcreclma2 Records lmag~nq Phase 2 25,557 0 0 0 0 0 0 25.557 . , ........ , . ............. "'> , ,, , :<. . , ,, , < .., , ........ ,. . . ,. . " i , , ,, . ... , . ,, . ,. ,:. , , , ,,, ... ...... -.... ..,, . F.ir.e , .1.:.i.-2. .:r: . - . ..";I-_-.. r... : ,-.. ..: ,.--.,.-.. ... L- .. .b_-.-Ie__..,-Lr .-.-. ,.A -..L-- .:..L.-'.. ,.- . . ... i..--.. .^C:..::&.( eqcestafor Telestafi - Ocean Rescue 16,600 0 0 0 0 0 0 16,600 eqcvelfffe Auto Transfer Benefits Data 18.000 0 0 0 0 0 0 18,000 eqcrecimag Records Imaging-Human Resources 57,490 0 0 0 0 0 0 57,490 eqcworkflo Workflow Processing 50,000 0 0 0 0 0 0 50,000 eqccadlrms CADlRlJIS - New World System Agmt 1,366,256 0 0 0 0 0 0 1,366,256 eqcconduit Conduit Repairs at City Facilities 0 36.000 0 0 0 0 0 36.000 \\miamibeach328\EdenReports\Reports\cmb\l Budget By Program Spread.rpt CITY OF MIAMI BEACH 2012-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 2015116 Future Total eqcinfocom Info & Comm Tech Contingency 521,424 54,000 0 0 0 0 0 575,424 eqcintewr Interactive Voice Response (IVR) 0 295,186 0 0 0 0 0 295,186 eqclogmgmt Log Management for PCI-DSS Compliant 0 80,500 0 0 0 0 0 80,500 eqccompeqp Replace Macintosh ComputersICameras 0 106,385 0 0 0 0 0 106,385 Parks -, - . ---- " .." eqcewarer RecWare Recreation Software to ActiveNc 29,550 0 0 0 0 0 0 29.550 eqcadrmsbr CADlRlJlS Field Based Reporting 7,500 0 0 0 0 0 0 7,500 ufstouaada TOPAADA and Interior Renovations 4,058,772 0 0 0 0 0 0 4,058,772 pkcobelisk 28th St. Obelisk Monument Restorat~on 0 0 0 0 0 0 742.475 742,475 pkcobeliss 28th Street Obelisk Stabilization pksfountan Alton Road Fountain @ 20th Street pkccarlmem Carl Fisher Memorial Monument pkspalmfou Palm Island Fountain pkmpinefou Pine Tree Fountain pknpolopst Polo Player Statue pkcgreatsm The Great Spirit Monument pkswatrest Water Tower Restoration Star Island ~kswwarrnem World VVar Memorial 0 0 0 0 0 0 61,770 61,770 ~wnwbduken West B .. ........ .... .... ...:,. .,." - ,,.".# ... ,,:. .... ,,.' - -, ......... ........... .,. , . .,~. . ,. , . .L., . , -. .. ... . .... .....I... ..... ..... CIP Office. I--. : ........ .... ,..* ..;" %A A_..: &a_: .,.- - ." :...".a_..-.__ :. ..: A_ L.. - -2 - -- ~.~::.~.-.~~ , ,. -.. ,. \\miamibeach328\EdenRepotts\Repo~s\cmb\l Budget By Program Spread.rpt CITY OF MIAMI BEACH 2012-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 2015116 Future Total pgsl7pgele 17th St P.G. Elevator Enclosure 646.600 0 0 0 0 0 0 646,600 pgcl7stefr 17th Stwet Garage East Facade Retail 0 0 0 pgmculcamp Collins Park Parking Garage 0 1,830,417 15,095,858 pgmculcaml Collins Park Parking Garage Land 4,980,568 0 0 pgmculcii Cultural Campus Parking Garage II pgsl2garag Maint-12th St Parking Garage pgsml3stpg Maint-13 St Parking Garage 10 pgsl3garmt Maint-13th St. Parking Garage 09 pgcallfenc Maint-16th St Garage (Anchor)-Gen 395,000 pgsl7garag Maint-17th St Parking Garage 2,213,737 pgsl7stpg Maint-17th St Parking Garage 10 414,000 pgsl7garrnt Maint-17th St. Parking Garage 09 pgm42garmt Maint-42 St. Parking Garage 09 pgm42stpg Maint-42nd St Parking Garage 10 245,000 0 0 0 0 0 0 245,000 pgsmnt7stg Maint-7th St Parking Garage 10 375,000 0 0 0 0 0 0 375,000 pgs7garamt Maint-7th St. Parking Garage 09 360,000 0 0 0 0 0 0 360,000 pgsmpmpkgf Multi-Purpose Municipal Parking Facility 40,304,925 0 0 0 0 0 0 40,304,925 pgnnbparkg North Beach Parking Garage 0 0 0 0 0 0 25,000,000 25,000,000 pgssbparkg South Beach Parking Garage 0 pgmsunharg Sunset Harbor I Purdy Ave Garage 20,468,435 pgmsunrobn Sunset Harbor Garage Contractor Portion 1,820,350 0 0 0 0 0 0 1,820.350 pgspotamki 5th Street &Alton Road Joint Venture 14,397,725 0 0 0 0 0 0 14,397,725 - " 0 14*397;12?, 7 - :: Q: ., - -:. A a, ,L -- __ '-2 -- --_a - - --- - 0. ! - . -0 i L -- !!9>397,725 (' . ,," " - - 2 Parkin . "- - "4 - c2.. ^-- A- " -5 b -2- " *, 5 A pgccctvph2 CCTV Phase 2 250,000 0 0 0 0 0 0 250,000 pgccctvgar Closed Circuit Television System 857,223 0 0 0 0 0 0 857,223 pkmnwsgara Pennsylvania (New World Symphony) Gal 17,085,135 0 0 0 0 0 0 17,085,135 pgm42royal Parking Lot 8B lmpro-42 & Royal Palm 1,383,300 0 0 0 0 0 0 1,383,300 pgsodsuffl Penrods @ 1 Ocean Dr 1,441,600 pgcprefgar . Preferred Lot Parking Garage 0 pgsmesuffl Surface Lot 10C 1662 Meridian Ave 0 pgsjasuffl Surface Lot 1 OD Jefferson Ave 0 pgsnlsurfl Surface Lot 10F S Lincoln Ln. & Meridian 0 \\miamibeach328\EdenReports\Reports\cmb\l Budget By Program Spread.rpt CITY OF MIAMI BEACH 201 2-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM Page 9 of 18 9/19/2011 19:05.33 PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014M5 2015116 Future Total pgsl6surfl Surface Lot 10G 1620 Michigan Avenue 0 0 174,900 0 0 0 0 174,900 pgslxsuffl Surface Lot IOX 1663 Lenox Avenue 0 pgsO9sum Surface Lot 12X @ 9th St & Washington 150,000 pgslOsurtl Surface Lot 13X @ 10th St & Washington 358,000 pgscasum Surface Lot 17X Collins Ave & 13 St 443,080 pgn53surfl Surface Lot 190 @ Collins & 53rd St. 1,669,500 pgnnsyclsl Surface Lot 22X N Shore Youth Center pgnsl24bst Surface Lot 24B 971 71 Street pgn69sum Surface Lot 24C 6972 Bay Drive pgnbdsum Surface Lot 25X 7061 Bonita Drive pgns126c79 Surface Lot 26-C (P-107) Collins and 79 0 0 0 0 0 0 797,500 797,500 pgns126d83 Surface Lot 26-D Collins and 83 (P-109) 0 0 0 0 0 0 880,000 880,000 pgs06suffl Surface Lot 28 Meridian Ave and 6 St 0 pgmslwesta Surface Lot 4D WestAve & 16 St 556,500 pgsl9sum Surface Lot 5H 1901 Meridian Ave 0 pgm40surfl Surface Lot 8H 4001 Prairie Ave. 0 0 556,500 0 0 0 0 556,500 pgnhasum Surface Lot 9A @ Harding Ave-71 St-Wes 310,000 0 0 0 0 0 0 310,000 pgn7lsuffl Surface Lot 9E @ Harding Ave-71 St.-Ear 250,000 pgccolln84 Surface Lot at Collins & 84 St 768.500 pgccolln80 Surface Lot at Collins Ave & 80 St pgsmisum Surface Lot Michigan Lot pgmslp48st Surface Lot P48 Bass Museum Lot pgmsuppl8d Surface Parking Lot 8D Pine Tree Dr 170,000 0 0 0 0 0 0 170.000 pgmsrpll8a Surface Pkg Lot 18A 6475 Collins Ave 250,000 0 0 0 0 0 0 250,000 pknaltospk Altos Del Mar Park 2,900,000 0 0 0 0 0 0 2,900,000 pknbandshe pknnoshban pkscolpad pksflamgob pkslummser pkslumml Oa pkmmussprk pkmmusspkg pkmrakowsr pkmrakowyc pkssouthpt pkssppreme Band Shell Master Plan lmprov Bandshell Facility Improvements Collins Park Children's Feature Flamingo Park Lummus Park Serpentine Walkway Lummus Park-10th Street Auditorium Muss Park Muss Park Greenspace ExpansionlChase Scott Rakow Youth Center - Ice Rink Mec Scott Rakow Youth Center Phase II South Pointe Park South Pointe Park Remediation pfssptpier South Pointe Pier 6.625.671 90.821 0 0 0 0 0 6,716.492 \\miamibeach328EdenReports\Report~\cmb\l Budget By Program Spread.rpt CITY OF MIAMI BEACH 201 2-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM Page 10 of 18 911 912011 19:05.33 PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 201 511 6 Future Total Parks & Recreation -- . .- A .. - -". -.-" .- ." <*.. "' ... .- " & -" **. pkcdicavel 7300 Dickens Ave Uscape-Irrigation Sys. 0 0 0 0 0 0 36.674 36.674 pknallison pfnskatepk pkncommgar pkncrespip pkcplayph2 pxnfairpar pkmfishepl pxmfisherp pkmfishtot pksflamvac pksflamloc pksflamtrk pkcinsfpar pkmlagortl pkmpinetrp pkctenncrt pknnsptlss pknnsospdp pknfitcirc pknnspycfc pknnspycsp pkcplaytsp pkcpolobbc pkcpolopge pxmpolosfr pknrueveno pksspppshs pknstillsf pkmsunisle pkntatumub pkswashprk pkswashdog Allison Park Improvements City of ldiami Beach Skatepark Community Garden in North Beach Crespi Park Field Renovation CW Playgrounds. Tot lots & Shade PH 2 Fairway Park Install. Black Alum. Fence Fisher Park Tot-loffPlayground Shade Str Fisher Pk Irrigation System Restoration Fisher Pk New Tot Lot Addl Safety Surfac Flamingo Park Madvac System Flamingo Park Pool New Lockers Flamingo Park Track Resurfacing Install Add. St. Furniture within Parks La Gorce Pk New Tot Lot & Safety Surfao Mid-Beach Community Garden New Tennis Courts at a site TBD Normandy Shores Park Tot-loffPlaygrounc North Shore Open Space Park-Dog PrkA NSOSP Replacement Fitness Circuitrrrail NSPYC-Fitness Center Refurbishment NSPYC-Sports Field Restoration PlaygroundTTot-lots & Shade Struct Polo Park Basketball Courts Renovation Polo Park Playground Renovation Polo Park Sport Field Restoration Rue VendomeIBiarritz Dr Park & Garden South Pointe Park Playground & Shade S Stillwater Pk Sports Field Lcape & lrri Sunset Islands NeighborhoodslPark Tatum Pk Const 2 Outdoor Sand Volleyba Washington Park Washington Park - Dog Park pkcmpkayak Muss Park Kayak Launch 0 0 0 0 0 0 204,750 204,750 pkmnwspark Lincoln (New World Symphony) Park 19,485,100 0 0 0 0 0 0 19,485,100 F." ,. ; js jisgz1&j; , .. . - . , . . . . - . , ~".., .:.,"" . o'j ;; '- ' - . I... : ..... " 0; i ....- L.... ..."-- L". ---," : 0; E_;;*:_.rf;Q11~~00i llmiamibeach328EdenRep~rtslReportslcmbPAlCapal Budget By Program Spread.rpt CITY OF MIAMI BEACH Page 11 of 18 - - 2012-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM 9/19/2011 19:05.33 - - PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 2015116 Future Total Fa- &hpm@~$ * pkmcolpuar Maze Project 21 St & Coll~ns Avenue 250,000 0 0 0 0 0 0 250,000 rrs2lstsha 21St Community Center-Ceiling and Light 84,738 0 0 0 0 0 0 84,738 rrm2lrecct 21st Recreation Center Electrical Servic 0 63,133 0 0 0 0 0 63,133 rrm2lstrcr 21st St. Recreation Center Repairs and R rrn43stgar 42nd St. Garage Elevator Replacement rrn42stgar 42nd St. Garage Fire Alarm System Replz 0 51,087 rm44stgar 42nd St. Garage HVAC Replacement 0 28,538 rrs555hvac 555 Bldg HVAC Upgrade and Replacemel rrs555ele2 555 Building Electrical Upgrades rrs555edor 555 Building Exterior Doors Replacement rrs555elec 555 Building Main Electrical Service Rep 0 41,685 0 0 0 rrs777bren 777 Building - Renovation 247.666 0 0 0 0 rrs777rere 777 Building - Restroom Renovation - Th 78,206 0 rrs777hvac 777 Building HVAC Replacement 0 259,600 rrs7stgarf 7th St. Garage Fire Alarm System Replacr 0 51,087 0 0 0 0 0 51,087 rrsanchors Anchor Shops Fire System Replacement 0 75,845 0 0 0 0 0 75,845 rrmbassebb Bass Museum Electrical Breaker Box Rep 0 38,968 0 0 0 0 0 38,968 rrmbassext Bass Museum Exterior Lighting Replacem 0 42,308 0 0 0 0 0 42,308 rrmbassmgr Bass Museum Generator Replacement 0 51,779 0 0 0 0 0 51,779 rrmbasshpr Bass Museum Heat Pump Replacement 0 59,225 0 0 0 0 0 59,225 rrmbasshvc Bass Museum HVAC Replacement 0 84,456 0 0 0 0 0 84,456 rrmbassher Bass Museum Hydraulic Elevator Replace 0 66,127 0 0 0 0 0 66,127 rrmbassmir Bass Museum Insulation Replacement 0 27,911 0 0 0 0 0 27,911 rrmbasslci Bass Museum Light Controls and lnstrum~ 0 57,070 rrscitybbr Boardwalk Bench Replacement 26.400 0 rrsbyronac ByronlCarlyle Replacement of Lobby AJC 0 82,500 rrsbyronsh Byron/Carlyle Replacement of Stage and rrccarlccl Carl Fisher Clubhouse Exterior Wlndow rrscityeup City Hall - Electrical Upgrades 50,000 rrscityere City Hall - Elevator Renovation 175,000 rrscityeme City Hall Bldg Renov & Elec Main Elevato 88,745 rrscitycas City Hael Card Access System Replaceme rrscityctv City Hall CCN Security System Replacer rrscityele City Halt Elevator Repair rrscityfsp City Hall Fire Supression Pump Replacerr 0 32,175 0 0 0 0 0 32,175 rrscityhus City Hall Halon Upgrade and Service Elev 143,484 0 0 0 0 0 0 143.484 \\miamibeach328\EdenReports\Reports\cmb~l Budget By Program Spread.rpt CITY OF MIAMI BEACH Page 12 of 18 - - - 2012-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM 9/19/2011 19:05.33 - PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 2015116 Future Total rrscityvdt rrscitychr rrscityhsd rrscityelu rrscitypai rrcbeachsh rrcstortnk rrscomcham rrscitydah rrsfire3fa rrsfire3od rrmfire2rr rrsfirel cr rrsfireled rrsfirel rr rrsfiresac rrsfirelvp rrsfirelwr rrsfire3cr rrsfire3rr rrcfireno3 rrmfire3rr rrspoli911 rrsflahvac rrsflampdf rrspldecks rrsfleets2 rrsfleetec rrsfleetac rrsfleetsb rrccontgl I rrccontg08 rrccontncy rrccontglo rrsgardrep rrcgardenc pfshzrdgrt rrscielecu rrshurishu rrslincmal rrslincmfp rrmmbgolcr rrmmbgcptb rrmmiamicb Ilmiamibeach328E City Hall High Voltage Distribution Repa City Hall restroom renovation. City Hall Storefront Door Assembly Repla City Hall- Electrical Upgrades City Hall- Repaint Building City Wide Beach Showers - Beach Show& City Wide Storage Tank Repair and Remo Commi:jsion Chambers Upgrades FY06 Doors L Hardware Fire Station 3 - Fire Alarm System Upgr Fire Station 3 - lnterior Overhead Door Fire Station # 2 Support Building- Roof Fire Station 1 - Ceiling Replacement Fire Station 1 - Interior and Exterior D Fire Station 1 - Restroom Renovation - Fire Station 1 HVAC Replacement Fire Station 1 Various Projects Fire Station 1 Window replacement Fire Station 3 - Ceiling Replacement - Fire Station 3 - Restroom Renovation Fire Station 3 Renewal and Replacement Fire Station 3 Roof replacement Fire Stations- 911 Alerting System Repl. Flamingo Park Pool HVAC Upgrade Flamingo Park- Pool Deck Fence Replace Flamingo Pool Deck Structural Assessme1 Fleet Mangement Shop 2 Building Exhaua Fleet Mangement Shop 2 HVAC Electrical Fleet Mangement Shop 2 HVAC Repair FleetlSanitation Fire Alarm System Repl FY 11 Contingency FY 200'7-2008 RIR Contingency FY 2008-2009 RIR Contingency FY 2009-2010 RIR Contingency Garden Center - Roof Replacement Garden Center Lighting Fixtures and Wri Hazard Mitigation Grant - Wind Retrofit Historic City Hall - Electrical Upgrade Hurricane Shutters-City Hall & Police BI Lincoln Rd. Mall Accent Lighting Replace Lincoln Rd. Mall Fountain Pump, Landsca Miami Beach Golf Course Clubhouse Carl Miami Beach Golf Course Clubhouse- Pai Miami City Ballet HVAC Replacement 'denRepohlReportslcmbPAICapita/ Budget 0 42,000 0 353,772 83,695 47,286 65.000 8,300 34,650 92,015 145,225 179,732 68,069 135,351 93,668 0 337.943 137,631 41,295 106,067 216,464 260,388 173,500 0 98,900 1,836 0 0 0 0 74,792 3,127 378,876 9,285 214,608 0 893,480 782,310 217,339 0 0 0 36,196 0 By Program Spread.rpt CITY OF MllAMl BEACH 2012-2016 CAPITAL lMPROVEMENT PLAN BY PROGRAM Page 130f 18 9/19/2011 19:05.33 PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 rrnmusswdu MussRatum Parks Water Dist. Upgrade 50,000 0 0 0 0 rrnopenspp North Shore Open Space Park Pavilion 150.000 0 0 0 0 rrnnorthyc North Shore Youth Center -AIC & Duct R 0 94,183 0 0 0 rrspolibvp Police Building Various Projects 605,098 0 0 0 0 rrspolihef Police Headquarters Elevators and Fire A 458,798 0 0 0 0 rrspolicfa Police HQ & Parking Garage-Fire Alarm R 240,732 0 0 0 0 rrspolicrp Police Station - Ceiling Replacement 52,617 0 0 0 0 rrspolicrr Police Station - Restroom Renovation 56,160 0 0 0 0 rrspolichs Police Station Building -Halon System Re 71.821 0 0 0 0 rrspolicfr Police Station Building-Firing Range Ven 370,000 0 0 0 0 rrspsthvac Police Station HVAC Replacement and Dk 0 147,675 0 0 0 rrcpwmfewr Public Works Maint. Facility Exterior Wi 0 85,522 0 0 0 rrcpwmfgrp Public Works Maint. Facility Generator R 0 195,314 0 0 0 rrcswipool Scott Rakow & North Shore Swimming PC 0 86,460 0 0 0 rrmscottyc Scott Rakow Youth Center - Replace Coc 0 98,072 0 0 0 nssouthc2 South Shore CC Emergency System 50.000 0 0 0 0 rrssouthrr South Shore Community Center - Roof Rc 418,364 0 0 0 0 rrssouthcc South Shore Community Center - Replac 0 130,748 0 0 0 rrsssouths South Shore Community Center Emergen 0 59.180 0 0 0 rrssouthac South Shore Community Center HVAC Re 0 343,301 0 0 0 rrssshccvp South Shore Community Center Various F 302,475 0 0 0 0 rrssouthef South Shr Community Center - Exhaust F 55,963 0 0 0 0 rrcbackflp Various Back Flow Preventors 35,000 0 0 0 0 rrcvarshow Various Showers 59,789 0 0 0 0 2015116 Future Total 0 0 50.000 0 0 150.000 0 0 94,183 enmbotancc Seawall-Botanical GardlCollins Canal Cor 0 0 0 0 0 0 1,208,662 1,208,662 ensflamisw Seawall-Flamingo Drive Rehabilitation 322.487 enslincwsw' Seawall-Lincoln Road Streetend W 942,369 ennnorisle Seawall-Normandy Isle Channel 385,910 rwn63bridg Seawali-Pine Tree Dr Rehab 63 St 186,364 gg$&.& enssearpfm Seawall Repa~r - Fleet Management 1,877.082 0 0 0 0 0 0 1,877,082 pwcseawall Seawatt Repairs 400,000 enmaltonsw Seawall-Alton Rd & 1-95 Interchange 633,484 ensbayrdsw Seawall-Bay Road Rehabilitation 0 ensbiscbse Seawall-Biscayne Bay St End Enh Phll 542,491 pwndaveshr Seawall-Dickens Av Shoreline & Bike Patt 592,750 enmindcrkg Seawall-Indian Creek Greenway 100,000 llmiamibeach328EdenReportslReportsIcmb~l Budget By Program Spread.rpt CITY OF MIAMI BEACH Page 14 of 18 - - - 2012-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM 9/19/2011 19:05.33 - PROJECT PROGRAM Previous Years 2011112 201 211 3 2013114 2014115 201 511 6 Future Total enslinccsw Seawall-Lincoln Court Rehabilitation ennmusspsw SeawalP-Muss Park Rehabilitation encpinetre Seawall-Pine Tree Pk Shoreline Rest 284.766 0 0 0 0 0 0 284.766 encwtrdred Seawall-Waterways Dredging 105,954 0 0 0 0 0 0 105,954 kRaff rwsl7thstn 17th Stteet rwmsunisla Bayshore Neigh Sunset Isl 1 & 2 BPE 7,092,190 130,000 rwmbaysbpa Bayshore Neighborhood - Bid PackA 23,049,618 1,387,968 rwmbaysbpb Bayshore Neighborhood - Bid Pack B 7,652,835 263,379 rwmbaysbpc Bayshore Neighborhood - Bid Pack C 5,005,465 72,441 0 0 0 0 0 5,077,907 rwmbaysbpd Bayshore Neighborhood - Bid Pack D 3,718,932 2,637,329 0 0 0 0 0 6,356,261 rwnbsptrow Biscayne Point Neighborhood lmproveme 16,786.127 1,088,205 rwscityctr CCHV Neigh. 1mprov.-Historic Dist. BP9A 17,458.464 0 rwscchvbgb City Center-Commercial Dist BP9B 13,209,842 0 0 0 0 0 0 13,209,842 rwscollpar Collins Park Ancillary Improvements 0 4,000,000 0 0 0 0 5,000.000 9,000,000 pkscollins Collins Park/Streetscape/Rotunda 10,342,106 0 0 0 0 0 0 10,342.106 rwmconvctr Convention Center Lincoln Rd Connector! 0 trmdirsign Directoty Signs in the City Center ROW 108,268 rwsflambpl Flamingo Neighborhood Bid Pack 1A 1,034,855 0 rwmlagorce LaGorce Neighborhood Improvements 7,475,924 5,852,763 pwsledligt LED Lighting Installation 1,054,790 0 rwmlincoln Lincoln Rd Between Collins & Washingtor 2,516,583 0 0 0 0 0 0 2.51 6,583 rwslinwash Lincoln Road Washington Av to Lenox Ave 0 0 0 0 20,000,000 0 0 20,000,000 rwmnautils Nautilus Neighborhood Improvements 39,861,900 0 0 0 0 0 0 39,861,900 rwnnormisl Normar~dy Isle Neighborhood lmproveme~ 14,493,003 0 0 0 0 0 0 14,493,003 rwnnormisl Normandy Isle Neighborhood ROW Phast 0 1,396,215 0 0 0 0 0 1,396,215 rwnnormshr Normar~dy Shores Neighborhood Improve 16,967,260 0 0 0 0 0 0 16,967,260 rwnnormsho Normar~dy Shores Neighborhood ROW PI 0 270,073 0 0 0 0 0 270,073 rwnnorthsh North Shore Neighborhood Improvements 14,165,944 0 3,055,402 0 0 0 0 17,221,346 rwmoceanft Oceanfront Neighborhood Improvements 10,581,108 383,246 0 rwsislands Palm & Hibiscus Island Enhancement 1,327,563 5,853,398 3,856,600 rwssprdapl S Pointe Improvements - Ph I 10,888,110 0 0 rwssprdaii S Pointe Improvements - Ph II rwssprdaiv S Pointe Improvements - Ph Ill-V rwsstarisl Star Island Enhancements rwsvencswy Venetian Neigh -Causeway (Bid D) 2,827,000 0 0 0 0 0 0 2,827,000 rwsvenebpc Venetian Neigh - Venetian Islands 10,992.194 1,305.509 0 0 0 0 0 12,297,703 rwsvenebpb Venetian Neighborhood - Belle Isle 8,876,397 0 0 0 0 0 0 8,876,397 \lrniamibeach328\EdenReports\Repo1ts\cmb\ Budget By Program Spread.rpt CITY OF MIAMI BEACH 2012-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM Page 15of 18 9/19/2011 19:05.33 PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 201 511 6 Future Total , * . . Parks & Recreatign . C' - e A .e pew*- -.* ,- - -- .A - .-uaA s . pknnormsig NormandyRl Street Welcome Sign & Site 0 50,000 0 0 0 0 0 50,000 pkctreeph2 RestoraitiveTreeWell-2A 71 St-Collins/Boni 130,918 0 pkctreph2b RestorativeTreeWell-2B-Collins164-75 St 183,068 0 pkctreph2c RestorativeTreeWell-2C-71St Bay DIRueE 0 85,432 pkctreeph3 RestorativeTreeWell-PH 3-Washington Av 0 683,911 pkctreeph4 RestorativeTreeWell-PH 4-Ocean Drive 0 0 pkctreeph5 RestorativeTreeWell-PH 5-41 st St 0 0 pkctreeph6 RestorativeTreeWell-PH 6-5 St AltonIOcei 202,987 0 rwm44midnb 4400 Middle North Bay Road 140,627 0 0 0 0 0 0 140,627 74stcolave 74 St from Collins to Carlyle Ave 85,000 75stcolave 75th St from Collins Ave to Dickens Ave 85,000 76stcolave 76th St from Collins Ave to Dickens Ave 85.000 pwsalleres Alleyway Restoration - Phase Ill 0 rwsalleywy Alleyway Restoration Program Ph I 2,360,000 rwcalleph2 Alleyway Restoration Program Ph II 330.000 trcboardrt Boardwalk Repair and Restoration 0 rwncolhard Collins Ave. Harding Ave. Sidewalks 56,784 pwcdhotspt Drainage Hot Spots 0 pksflaml Og Flamingo log-6 Street ROW improvemen' 0 rwsflambpa Flamingo Neighborhood - Bid PackA 11,523,899 rwsflambpc Flamingo Neighborhood - Bid Pack C 5,666,451 rwmlagpave LaGorce Island (Street Pavement) 0 rwmlightre LaGorce Island - Lighting, Trees, Misc 66,376 utmlagnlgt LaGorce Neighborhood Lighting-49 St 100,000 pwslinclan Lincoln Rd Landscaping-Lenox to Wash. 0 pkslinrdft Lincoln Road Landscaping Future Years 0 pkslinrdls Lincoln Road Mall ADA Pedestrian pathws 0 utmroicken Milling B Resurf Dickens Ave 71 to 81 St 742,984 utnmrindcd Milling & Resurf Indian Creek 69-71 St 365,000 utnmrbyron Milling & Resurf-ByronAveJlSt to 87 Te 294,398 rwsstlghtw Replace 5,000 Volt Direct Burial 680,000 rwcrowimpl ROW lrnprovement Project 3,641,599 rwmprariea ROW lrnprovements on Prairie Avenue 592,074 rwcrowimp2 ROW Maintenance Project 1,585,000 rwcstreetr Street Pavement Restoration 400,000 pwssunhpav Sunset Harbor-Streets Pavement 0 rwssunisle Sunset Islands 3&4 Entryway lmproveme~ 465,599 rwsuplight Uplighting-5th Street (Lenox to Ocean Av 400,000 pwcchlight Washington Ave Cobra Head Lighting 0 rwswashspd Washington Ave South Pointe Dr lmprov 594,675 \hiamibeach328lEdenReports\Reportslcmb~AlCapital Budget By Pmgram Spread.rpt CITY OF MIAMI BEACH 2012-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 2015116 Future Total rwswestrow West AvenuelBay Road Improvements 4,457,559 525.000 7,500.796 7,254,331 7,125,005 0 0 26,862,691 trnnbtownc North Beach Town Center Complete Stree 272,000 0 0 0 0 0 0 272,000 trsl6stops 16th St. Operational ImprovlEnhancemen~ 6,726,094 932,000 0 0 0 0 1,747,387 9,405,481 rwn7ldicke pwnbikeway encbaywlk2 encbaywk3a encbaywm3b encbaywalk enbchwalk2 pgcbikeprk pkcbicpph2 rwcbicpepr rwcbkntsgn pwcbusstop rwccitywcr trcwayfind trccoascom rwscollin6 rwccrosswa rwccrospii rwsmacagas enmbchwlkl enmbchwlk;! enmbchwlk3 pwcmastarm ennnbrecce ennbchrecr pknparkvbt rwpedscosi pwepedcsii eqcsplimit encsunplaz pwmtra5lst rwctrafcal 71st St & Dickens Intersection lmprov 71st StreeffNormandy Drive Bikeway Con Baywalk 11-10 Street to Southern Bndly Baywalk lllA - Monad Terr to West Ave Baywalk 1118-10 St to North of Floridian Baywalk Phase 1 Beachwalk ll Bicycle Parking - Phase I Bicycle Parking Phase II Bicycle Pedestrian Projects Citywide Bikeways Network Signage Bus Stop Improvements City W Curb Ramp InstallationlMaint Citywide Wayfinding Signage System Coastal Communities Transportation Collins Ave and 6th St lmprovements Crosswalks Crosswalks - Phase II MacArthur Causeway Gateway Sign Middle Beach Rec Corridor Ph I Middle Beach Rec Corridor Ph II Middle Beach Rec Corridor Ph Ill Miscellaneous Mast Arm Painting North Beach Rec Corridor Ext 79th Street North Beach Recreational Corridor Park View Is Waterway PedlBicycle Pedestrian Countdown Signals Ph I Pedest~ian Crossing lmprovements Speed Limit Radar Unit Sunrise Plaza Pedestrian Connection Traffic Calming 51 Street Traffic Calming Program \Imiamibeach328\EdenReportsIReporfs\cmbAlCapital Budget By Program Spread.rpt CITY OF MIAMI BEACH 201 2-201 6 CAPITAL IMPROVEMENT PLAN BY PROGRAM Page 17 of 18 911 912011 19:05.33 PROJECT PROGRAM - - -- - - - - - -- - - Previous Years 2011112 2012113 2013114 2014115 201 511 6 Future Total rwubelleou Belle Isle Outfall Pipes Replacement 45,000 466,238 utcpumplan Citywide Wste Wtr Pump Station-Landsca 1,206,099 0 utsspwmbps Coast Guard Booster Pump Station-So Pt 24,431,281 0 pwmwatpump Convert Old Water Pump Station-PW 0 0 utmindcree Indian Creek 28th to 41st 2,000,411 0 utcwtrsyst Upsizing Undr Cap Wste Wtr IC 25-41 St 2,500,000 0 utcwtrmain Upsizing Undr Cap Wtr Mn IC 25-41 St 2,975.865 0 utmwmicola 12" DIP Water lmprov Collins Ave 41 & 44 603,733 0 0 0 0 0 0 603,733 utswmialtn utc20water utssijave utmoutfall utn63stwmn utnformain utc20alton utsbrpstao utccstmasp utcsubmain utccollmai utswashspd utmw44strp utmdinb58s utchydrant utmindianx utcinfiffl utcinfphii pwnmidnbrd utcmiscupg utcmisccp utnnorthsh pwcpeakflw, utspsgrino utcpumprep utcmanhole utsstormrp utsspraira 12" DIP Water Main lmprov 5Alton &Ocea 20-Inch Water Line Replacement 24" PVC Sanitary Sewer Imp 48" Outfall at Easement 4180-4200 Chasc 63rd Street 16 Water Main 69th to 72nd Str 30-inch Parallel Force Alton Road 20 Water Line Bay Road Pump Station Outfall Citywide Stormwater Master Plan Citywide Sub- Acqueous Feasabilty Study Collins Ave Main: SP Drive-72nd Street Drainage Imp- Washington & So Pointe Drainage lmprov W 44 St & Royal Palm Drainage Improv- North Bay & 56 St Fire Hydrant Relocation and Manhole Adj Indian Creek Dr. Water & Fire Line Ext. Infiltration & Inflow Program Phase I lnfiltration & Inflow Program Phase II Middle Worth Bay Road Drainage lmprov Misc. Wastewater and Water Upgrades Miscellaneous Water & Sewer Capital Pro No.2: North Shore Neighborhood Peak Flow Management Study Pump Station #28 Grinder Replacement Repairs for Pump Station Pump Motors Sanitary Sewer Manhole (CW) Rehab Stormwater Pipe - Repairs Stormwater System Prairie Avenue Ihiamibeach328lEdenReports\Reportslcmb~ Budget By Program Spread.rpt CITY OF MIAMI BEACH 201 2-2016 CAPITAL IMPROVEMENT PLAN BY PROGRAM Page 18 of 18 911 912011 19:05.33 PROJECT PROGRAM Previous Years 2011112 2012113 2013114 2014115 2015116 Future Total utssunsubq Sunset & Venetian Island Force Mains 2,869,124 0 0 0 0 0 0 2,869,124 utm20&sunh Sunset Harbor & 20st Storm Wtr Improv. 550,000 0 0 0 0 0 0 550,000 pwmsunspsu Sunset Harbor Pump Station Upgrades 81,921 438,079 0 0 0 0 0 520,000 utwtrctvlv Water Svstem Pressure Control Valve 200.000 0 0 0 0 0 0 200,000 Grand Total: 762,544,303 62,327,012 68,439,013 32,021,862 44,648,790 3,600,000 317,495,254 1,291,076,234 \\miamibeach328EdenReports\Reports\cmb\l Budget By Program Spread.rpt THIS PAGE INTENTIONALLY LEFT BLANK COMMISSION ITEM SUMMARY Condensed Title: A resolution of the Mayor and City Commission of the City Of Miami Beach, Florida, adopting the Fiscal Year (FY) 201 1112 budgets for Special Revenue fundsFr Resort Tax; 7th street Garage Operations; City's Share of the Shortfall Contribution Requirements for the 5 and Alton Parking Garage Operations; Art in Public Places (AiPP); Tourism and Hospitality Scholarship Program and the Information and Communications Technology Fund - Debt Service and Citysourced project. <ey Intended Outcome Supported: Ensure expenditure trends are sustainable over the long term Improve the City's overall financial Health and maintain overall bond rating Increase Community Satisfaction with City Services Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2009 community survey, quality of life in the City is rated highly, the City is seen as an 'excellent' or 'good' place to live, work, play or visit, and over %'s of residents would recommend it to others as a place to live. Impressively, 31 of the residential tracking questions from 2007 experienced increases in each of the areas measured by an overall average of approximately 7.0%; and 28 of 32 business tracking questions experienced increases measured by an overall average of approximately 8.8%. Relevant findings were: arts and culture was one of services identified that the city should strive not to reduce; and availability of public parking was one of the services identified as key drivers of overall satisfaction levels. Issue: Shall the Mayor and City Commis$on adopt the attached resolution which adopts the FY 201 1/12 budgets for Special Revenue funds for Resort Tax; 7 Street Garage Operations; City's Share of the Shortfall Contribution Requirements for the 5th and Alton Parkina Garaae O~erations; Art in Public Places (AiPP); Tourism and Hospitality Scholarship .- - -- . I Program and the informati& and ~ommunications Technology Fund - Debt Service and Citysourced Project? I tem Summary1Recommendation: The Administration recommends adopting the attached resolution which adopts the FY 201 111 2 budgets for Special Revenue funds for Resort Tax; 7th Street Garage Operations; City's Share of the Shortfall Contribution Requirements for the 5th and Alton Parking Garage Operations; Art in Public Places (AiPP); Tourism and Hospitality Scholarship Program and the lnformation and Communications Technology Fund - Debt Service and Citysourced project. Advisory Board Recommendation: 1 Financial Information: City Clerk's Office Legislative Tracking: AM1 BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 331 39, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez City Manager DATE: September 27,201 1 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 201 1/12 BUDGETS FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 7th STREET PARKING GARAGE OPERATIONS; CITY'S SHARE OF THE SHORTFALL CONTRIBUTION REQUIREMENT FOR THE 5th AND ALTON PARKING GARAGE OPERATIONS; ART IN PUBLIC PLACES (AiPP), TOURISM AND HOSPITALITY SCHOLARSHIP PROGRAM, AND THE INFORMATION AND COMMUNICATIONS TECHNOLOGY FUND - DEBT SERVICE AND CITYSOURCED MOBILE APPlCATlON PROJECT ADMINISTRATION RECOMMENDATION Adopt the Resolution ANALYSIS The City currently offers certain programs and activities not supported through the general operating budget, but by outside agency grants and self-supporting user fee programs. Funding from these sources will be utilized as follows: Resort Tax - $47,105,327 This fund accounts for the collection of the special tax levied citywide on food, beverage and room rents used to support tourism related activities. This function, which operates under the direction of the Finance Department and the Office of Internal Audit, is responsible for ensuring that hotels, restaurants, bars and other establishments which serve food and beverages for consumption on its premises, comply with Section 5.03 of the City Charter, as amended, as it related to the reporting, and collection of resort taxes to the City. An allocation for "operations" provides for all collection and audit expenses associated with administering the Resort Tax function and are charged directly to this Special Revenue Fund. Included in this allocation is funding for seven (7) FTE positions and associated operating support totaling approximately $1,229,926. City Commission Memorandum Resolution Adopting FY 201 1/12 Special Revenue Budgets September 27 201 1 Page 2 The allocation to the General Fund for Fiscal Year 201 1/12 of approximately $26.4 million pays for tourist related services and costs provided or managed by General Fund Departments. Based on an outside consultant study conducted in 2010 using FY 2007108 actual costs, it is estimated that there are approximately $41.7 million in eligible resort tax expenditures in the General Fund, net of South Pointe costs. This funding supports public safety programs including our ocean rescue, police services on Lincoln Road, Ocean Drive/Lummus Park, Collins Avenue, Washington Avenue, AN officers, Boardwalk security, special traffic enforcement and special event staffing; and fire rescue units in tourist and visitor areas as well as special event support services. The funding also supports code compliance services to respond to evening entertainment areas and for special events; provides for a portion of the operational costs of the Tourism and Cultural Development Department; and provides a contribution to the Cultural Arts Council beyond their annual interest allocation from the investment of City funds. In addition, the Fiscal Year 2011112 budget includes $2.1 million for special events and other eligible expenses, previously funded from the General Fund. The Fiscal Year 201 1/12 budget also includes an allocation to the Greater Miami Convention and Visitors Bureau (GMCVB) of approximately $5.2 million, $1.2 million for debt service, $1.8 million to the Miami Beach Visitor and Convention Center (VCA), $100,000 for a local Miami Beach marketing campaign, to be augmented with funds from the GMCVB, the VCA, and the Cultural Arts Council (CAC), $332,000 for enhancing the outcomes from major events such as Memorial Day, including management, Goodwill Ambassadors, etc. The proceeds of the additional one percent (1 percent) tax are used as follows. Fifty percent of the amount earned is committed to the payment of a portion of the debt service on the Miami Beach Redevelopment Agency - City CenterIHistoric Convention Village Bonds. These bonds were used for the development, improvement and construction of certain public areas including a portion of the Cultural Center facilities located within the City Center District. The 1 percent budget also reflects the approved allocation method for the Quality of Life funding, which includes the 25 percent for the arts, and to fund Quality of Life capital projects in North Beach (25 percent), Middle Beach (25 percent), and South Beach (25 percent), as well as various art and cultural programs or the maintenance and enhancement of Miami Beach's tourist related areas. Please see Attachment "A for the revenue and expenditure detail budget. Tth Street Garage - $2,144,000 The Parking Department is responsible for the collection of the revenues in this garage which will be used to pay associated operating expenses and debt service. The operating budget is required to cover operating expenses, debt service, and reserve for replacement. In the event of any shortfall in projected revenues, the difference shall be made up by funds from excess parking revenues. Operating Expenses $1,258,085 Debt Service 792,200 Reserve - Renewal & Replacement 93,715 Total $2,144,000 City Commission Memorandum Resolution Adopting FY 201 111 2 Special Revenue Budgets September 27 201 1 Page 3 !jth and Alton Garage - $343,330 The 5th and Alton Garage a.k.a. "Potamkin Garage" is a joint venture development between the City of Miami Beach (City) and PotamkinIBerkowitz (Developer) where a condominium has been established wherein the City and Developer contributes 46 percent and 54 percent, respectively, to the operating expenses of the parking garage and also shares profits and losses consistent with the aforementioned distribution. The Parking Department is responsible for the collection of the revenues in this garage. In the event of any shortfall, the City's portion shall be made up by funds from excess parking revenues. Revenues Transfer from FY 201 1/12 Parking Operations Budget Ex~enses City's Share of Shortfall Contribution Requirement Art in Public Places (AiPP) - $1,342,387 The Art in Public Places (AiPP) Ordinance (Ordinance No. 95-2985) was adopted in 1995. The ordinance was created to "enhance the aesthetic environment of the City of Miami Beach by including works of art on public property within the City and in City construction projects." The AiPP Ordinance was amended in May 2004 to clarify the definition of terms for eligible construction projects for funding as well as the policy and procedures for appropriations. The AiPP Guidelines were also adopted by the City Commission at that time. The AiPP program is funded by 1 '% percent of all hard costs of City projects, including new construction, additions, and costs for construction of joint privatelpublic projects. The fund is used for the commission or acquisition of works of art; conservation and maintenance of works of art; research and evaluation of works of art; printing and distribution of related materials; and administration. The FY 201 1/12 AiPP budget of $1,342,387 is funded from an appropriation of prior year capital appropriation from fund balance in the amount of $1,342,387. Ex~enses Administration AiPP Projects Under $25K Reserve for AiPP Projects Total Tourism and Hospitality Scholarship Program - $89,350 The City of Miami Beach Tourism and Hospitality Scholarship Program began in 2003 in partnership with the Greater Miami Convention and Visitors Bureau (GMCVB), SMG and Centerplate. Contributions to the City's scholarship program were contractually required of the three (3) entities. During the GMCVB's contract renewal in 2004, the requirement was removed from their contract. In September of 2008, the City replaced SMG with Global Spectrum. City Commission Memorandum Resolution Adopting FY 201 1/12 Special Revenue Budgets September 27 201 1 Page 4 Global Spectrum and Centerplate currently partner with the City on this program and contribute $12,500 and $20,000 respectively annually. There is also a carry forward balance of $57,350 available. The scholarship program is geared toward Miami Beach residents or graduates of Miami Beach Senior High School who are enrolled or are planning to enroll in post-secondary education and have expressed interest in the food and hospitality industry (as demonstrated by coursework and extracurricular activities). Since the inception of the program, $205,150 has been awarded to more than 37 different Miami Beach students. Revenue Carry forward balance FY 201 111 2 Contribution Total Ex~enses Reserve for FY 201 1/12 & Future Scholarships Total lnformation and Communications Technology Fund - Debt Service and Citysource Mobile Application project - $28,814 The City's General Fund budget includes a transfer of $600,885 to the lnformation and Communications Technology Fund. Of this amount, $26,814 is for debt service payment, $2,000 is for the Citysourced Mobile Application project. The debt service payment of $26,814 is year 6 of 10 for the Enterprise Uninterrupted Power Supply (UPS) and Generator project. In addition, $572,071 is appropriated in the FY 2011/12 Capital Budget for the following projects: Conduit Repairs at City Facilities - $36,000; Interactive Voice Response - $295,186; Log Management for PCI-DSS compliance - $80,500; Replacement Computers in North Shore Youth Center and Communications, additional laptops for Code Compliance and Cameras in the Commission Chamber - $106,385; and Info & Tech Contingency - $54,000. CONCLUSION The attached Resolution adopting funding for FY 201 1/12 budgets from these sources is vital to the continuation of these projects and activities provided by the City. PROPC CIN OF MIAMI BEACH XED FISCAL YEAR 2011112 RESORT TAX FUND BUDGET 2% Revenues: Resort Tax Special Assessment-North Shore Special Assessment-Lincoln Road Interest Income Registration Fees, Filing Fees & Misc. Total 2% Revenue 2% Ex~enditures: Personnel Costs: Salaries &Wages Health, Life & Dental Insurance Pension Contributions & Other Benefits Total Personnel Costs O~eratina Costs: Professional Services lnternal AudiffResort Tax Auditors' Exp. Administrative Fees- lnternal Audit Telephone Postage Administrative Fees Rent-Building & Equipment Printing Office Supplies Other Operating Expenditures Travel Local Mileage Training lnternal Service - Central Service lnternal Service - Property Management lnternal Service - Communications lnternal Service - Self lnsurance lnternal Service - Computers Internal Service - Prop. MgrnffElectrical Total Operating Costs Total 2% Operating Expenditures 2% Other Uses: Contribution to VCA Contribution to Bureau Marketing Goodwill Ambassadors Special Events Holiday Decorations Debt Service - North Shore Debt Service -Gulf Breeze Enhanced Management of Major Events Contingency Transfer to Service & Special Improvement District Funds General Fund Contribution Total 2% Other Uses Net 2% 1 % Revenues: Resort Tax Total 1% Revenue 1 % Ex~enditures: Other Designated Expenditures South Beach - Quality of Life Capital Middle Beach - Quality of Life Capital North Beach -Quality of Life Capital Arts Total 1 % Other Uses Debt Service - TIF Bonds Total 1% Expenditures Net 1% Total Resort Tax Revenues: Total Resort Tax Ex~enditures: Net Actual Actual Adopted Proposed Prop l2Adp 11 % Diff FY 2008109 FY 2009110 FY 2010111 FY 2011112 Variance RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 201 1/12 BUDGETS FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 7th STREET PARKING GARAGE OPERATIONS; CITY'S SHARE OF THE SHORTFALL CONTRIBUTION REQUIREMENT FOR THE 5th AND ALTON PARKING GARAGE OPERATIONS; ART IN PUBLIC PLACES (AiPP), TOURISM AND HOSPITALITY SCHOLARSHIP PROGRAM, AND THE INFORMATION AND COMMUNICATIONS TECHNOLOGY FUND - DEBT SERVICE AND CITYSOURCED MOBILE APPLICATION PROJECT. WHEREAS, expenses related to tourism, monitoring and auditing payments, and receipt of Resort Taxes to the City, will be paid by the Resort Tax Fund; and WHEREAS, the budget for the public parking garage located at 7" Street and Collins Avenue (the 7th Street Parking Garage) provides funding for operating expenses, debt service, and a reserve for renewal and replacement; and WHEREAS, the budget for the public parking garage operations located at !jTH and Alton provides funding for the City's share of the shortfall contribution requirements; and WHEREAS, the Art in Public Places (AiPP) fund is used for the commission or - - acquisition of works of art, conservation and maintenance of works of art, research and evaluation of works of art, printing and distribution of related materials, and administration; and WHEREAS, the Tourism and Hospitality Scholarship Program funded by contributions from Global Spectrum and Centerplate and awarded to Miami Beach students enrolled or planning to enroll in post-secondary education and have expressed interest in the food and hospitality industry; and WHEREAS, the City's General Fund budget includes a transfer of $600,885 to the lnformation and Communications Technology Fund, of which $26,814 is for debt service, $2,000 is for the Citysourced Mobil Application project and the balance of $572,071 is appropriated in the FY 201 1112 Capital budget. NOW, THEREFORE, BE IT DULY RESOLVED BY THEMAYOR AND CITY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby adopts the FY 201 1112 budgets for Special Revenue Funds as listed below: SPECIAL REVENUE APPROPRIATIONS FY 201 011 1 Resort Tax $47,105,327 7th Street Garage Operations 2,144,000 5th & Alton Garage-City's Share of Shortfall 343,330 Art in Public Places 1,342,387 Tourism and Hospitality Scholarship Program 89,850 Information and Communications Technology Fund 28,814 Total $51,053,708 PASSED and ADOPTED this 27th day of September, 201 1. APPROVED AS TO ATTEST BY: MAYOR rORM & LANGUAGE & FnH EXECUTION CITY CLERK 155 THIS PAGE INTENTIONALLY LEFT BLANK COMMISSION ITEM SUMMARY Condensed Title: / A Resolution Re-Affirming The New Living Wage Rates Effective October 1,201 1, Pursuant To Living Wage I I Ordinance No. 2010-3682. Key Intended Outcome Supported: International Center for Innovation in Culture, Recreation and Business. Supporting Data (Surveys, Environmental Scan, etc.): 17% of business responding felt that Miami Beach was the best place to run a business, 25% felt that it was an above average place to run a business and 4l%felt that it was an average to run a business. Also, 62% of business respondents would recommend Miami Beach to others as a place to run a business. Issue: I Shall the City Commission Adopt the Resolution? I Item SummarylRecommendation: I At its June 9,2010 meeting, the Mayor and City Commission passed and adopted Ordinance No. 2010-3682, 1 which amended the City's Living Wage Ordinance, Sections 2-407 thru 2-410 of the Miami Beach City Code, herein referred to as the "Ordinance". Using a proposed three (3) year "phase-in" approach, the new hourly living wage rates were adopted as follows: commencing with City Fiscal Year 201 0-1 1 (October 1,201 O), the hourly living wage rate will be $10.16/hr. with health benefits of at least $1.25/hr, and $1 1.41lhr without benefits; commencing with City Fiscal Year 201 1-12 (October 1,201 I), the hourly living wage rate will be $10.72/hr with health benefits of at least $1.45/hr, and $12.17/hr without benefits; and commencing with City Fiscal Year 2012-13 (October 1, 2012), the hourly living rate will be $1 1.28Ihr with health benefits of at least $1.64/hr, and $12.92/hr without benefits. The Administration recommends that the Mayor and City Commission adopt the attached Resolution that re- affirms the new living wage rates for FY 201 1-12, in accordance with the three (3) year "phase-in" approach pursuant to Ordinance No. 2010-3682, effective October 1, 201 1. [ ADOPT THE RESOLUTION. Advisory Board Recommendation: I Financial Information: I Source of Funds: City Clerk's Office Legislative Tracking: - OBPl Gus Lopez ext. 6641 I I I I Total 1 AiXiMM STEM R7 E 1 Financial Impact Summary: Account Amount Approved MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.rniarnibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 27, 201 1 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RE-AFFIRMING THE NEW LIVING WAGE RATES FOR FISCAL YEAR (FY) 2011-2012, IN ACCORDANCE WlTH THE THREE YEAR "PHASE-IN" APPROVED PURSUANT TO ORDINANCE NO. 2010-3682; WlTH SUCH RATES TO BE EFFECTIVE OCTOBER 1, 2011 AS FOLLOWS: $10.72 PER HOUR WlTH CONTRIBUTIONS TOWARDS HEALTH BENEFITS OF AT LEAST $1.45 PER HOUR, AND $12.17 PER HOUR WITHOUT BENEFITS. BACKGROUND At its June 9, 2010 meeting, the Mayor and City Commission passed and adopted Ordinance No. 2010-3682, which amended the City's Living Wage Ordinance, Sections 2-407 thru 2-410 of the Miami Beach City Code, herein referred to as the "Ordinance". Using a proposed three (3) year "phase-in" approach, the new hourly living wage rates were adopted as follows: commencing with City Fiscal Year 2010-1 1 (October 1, 2010), the hourly living wage rate will be $10.16/hr. with health benefits of at least $1.25/hrI and $1 1.411hr without benefits; * commencing with City Fiscal Year 201 1-12 (October I, 201 I), the hourly living wage rate will be $10.72/hr with health benefits of at least $1.45/hrI and $1 2.171hr without benefits; and commencing with City Fiscal Year 2012-13 (October 1, 2012), the hourly living rate will be $1 1.28/hr with health benefits of at least $1.64/hr, and $12.92/hr without benefits. FISCAL IMPACT Effective October 1, 2011, service contractors as defined in the Ordinance shall be required to pay all employees, pursuant to Living Wage Ordinance No. 2010-3682, the new living wage rates of $10.72/hr with health benefits of at least $1.45/hr, and $12.17/hr without benefits. The impact of the living wage increase for fiscal year 201 1- 2012 is as follows: General Fund $54,266, Internal Service $6,639, Enterprise Fund $283,754, and RDA $20,161 for a Citywide approximate total of $364,820. The new living wage rates apply to 19 contracts, awarded to 46 contractors which provide the City with general services and employ over 700 employees. Commission Memo Re-affirm Living Wage Rates for FY2012 September 27,2011 Page 2 of 2 CONCLUSION The Administration recommends that the Mayor and City Commission adopt the attached Resolution hereby re-affirms the new living wage rates for FY 2011-12, in accordance with the three year "phase-in" approved pursuant to Ordinance No. 2010- 3682; with such rates to be effective October 1, 201 1 as follows: $1 0.72 per hour with contributions towards health benefits of at least $1.45 per hour, and $12.17 per hour without benefits. T:\AGENDA\2011\9-27-11\Re-affirm Living Wage Rates FYI2 - Memo.doc RESOLUTION NO. A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, RE-AFFIRMING THE NEW LIVING WAGE RATES FOR FISCAL YEAR (FY) 2011-2012, IN ACCORDANCE WlTH THE THREE YEAR "PHASE-IN" APPROVED PURSUANT TO ORDINANCE NO. 2010-3682; WlTH SUCH RATES TO BE EFFECTIVE OCTOBER I, 2011 AS FOLLOWS: $10.72 PER HOUR WlTH CONTRIBUTIONS TOWARDS HEALTH BENEFITS OF AT LEAST $1.45 PER HOUR, AND $12.17 PER HOUR WITHOUT BENEFITS. WHEREAS, at its June 9, 2010 meeting, the Mayor and City Commission adopted Ordinance No. 2010-3682, which amended the City's Living Wage Ordinance (as codified in sections 2-407 thru 2-410 of the Miami Beach City Code, and herein referred to as the Ordinance); and WHEREAS, using a proposed three (3) year "phase-in" approach, the new hourly living wage rates were adopted as follows: commencing with City Fiscal Year 2010-11 (October 1, 2010), the hourly living wage rate will be $10.16/hr. with health benefits of at least $1.25/hr, and $1 1.41Ihr without benefits; commencing with City Fiscal Year 201 1-12 (October 1, 201 I), the hourly living wage rate will be $10.72/hr with health benefits of at least $1.45/hr, and $1 2.1 7lhr without benefits; and commencing with City Fiscal Year 2012-13 (October 1, 2012), the hourly living rate will be $1 1.28lhr with health benefits of at least $1.64/hr, and $12.92/hr without benefits; and WHEREAS, effective October I, 201 I, service contractors subject to the provisions of the Ordinance shall be required to pay all employees who provide services for covered service contracts, the new living wage rates of $10.72/hr. with health benefits of at least $1.45/hr, and $1 2.171hr without benefits; and WHEREAS, the impact of the living wage increase for fiscal year 2011-2012 is as follows: General Fund $54,266, Internal Service $6,639, Enterprise Fund $283,754, and RDA $20,161 for a Citywide approximate total of $364,820. WHEREAS, the new living wage rates apply to 19 contracts, awarded to 46 contractors which provide the City with general services and employ over 700 employees; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby re- affirms the new living wage rates for FY 201 1-12, in accordance with the three year "phase-in" approved pursuant to Ordinance No. 201 0-3682; with such rates to be effective October 1, 201 1 as follows: $10.72 per hour with contributions towards health benefits of at least $1.45 per hour, and $12.17 per hour without benefits. PASSED AND ADOPTED this day of September, 201 1. ATTEST: MAYOR CITY CLERK T:WGENDA\2011\9-14-11\Re-affirm Living Wage rates FY12- Reso.doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION THIS PAGE INTENTIONALLY LEFT BLANK Condensed Title: I A Resolution Authorizing the Appropriation of $1,200,000 from FY 201 1/12 People's Transportation Plan (PTP) ( Funds, and $1 3,121 from FY 201 111 2 Concurrency Mitigation Funds to Fund the Operating Budget for the South Beach Local (SBL); and Further Appropriating $275,000 from FY 201 1/12 PTP Funds for Administrative and Technical Operating Expenditures. Key Intended Outcome Supported: Improve or maintain traffic flow. Supporting Data (Surveys, Environmental Scan, etc.): According to the 2009 Customer Satisfaction Survey, more than half of all respondents, 51.5% reported a willingness to use "local bus circulators" as an alternative to takina a car. Issue: I Shall the Mayor and City Commission approve the Resolution? I Item SummarylRecommendation: Under the provisions of an Interlocal Agreement (ILA) Miami-Dade County (the County) has been operating a bi- directional transit circulator route service in Miami Beach known as the "South Beach Local" since Se~tember 25, 2005. The SBL ILA expired on October 11, 2010; however, Miami-Dade Transit (MDT) has continueb to provide service after the expiration of the SBL ILA under the same terms and conditions. MDT initially wanted to have the City contribute more to the annual operating cost than our current proportion of approximately 35% City and 65% County. The County wanted to have a 50% City and 50% County split. The cost increase to the City would have been $507,379 annually. In addition, the Countywanted to increase the headways during peak hours, eliminate the City's 3% annual increase limits, and eliminate the Belle Isle service. After prolonged negotiations and support from County Commissioner Bruno A. Barreiro, the City and MDT agreed to the following: 1. The City will maintain the current level of contribution of $1,213,121 per year. 2. Maintain the current headways of 13 minutes during the peak hours. 3. Continue service to Belle Isle. 4. Maintain the City's contribution to the annual net operating cost increase equivalent to the Miami-Ft. Lauderdale CPI Transportation Index or 3%, whichever is less. Awaiting resolution of the new ILA financial terms, the Administration proposes to appropriate for FY 201 1/12, as follows: $1,200,000 FY 201 1/12 PTP Funds $ 13.121 FY 2010/11 South Beach Concurrencv Mitiaation Funds $1,213,121 FY 2010111 Miami Beach Share Five percent (5%) of PTP funds received may be appropriated for administrative. An unlimited amount may be appropriated for technical assistance. Administrative and technical operating PTP funding for FY 2011112 is recommended in the amount of $275,000. The total projected amount of PTP funds to be appropriated in FY 201 1112 is $2,713,038, of which $1,475,000 is for operating expenses and $1,238,038 is for capital projects. The total amount of Concurrency Mitigation Funds to be appropriated in FY 201 111 2 is $398,121, of which $1 3,121 is for operating expenses and $385,000 is for capital projects (Capital projects are appropriated separately in the capital budget). THE ADMINISTRATION RECOMMENDS ADOPTING THE RESOLUTION. Advisow Board Recommendation: I None. Financial Information: I Source of I 1 Amount 1 Account I 1 $1,200,000 187.8000.312910 (FY 201 111 2 PTP) 2 $ 13,121 158.621 7.000335 (CMF/S.Beach) 3 $ 275,000 187.8000.31 291 0 (FY 201 111 2 PTP) Total $1,488,121 Financial Impact Summary: City Clerk's Office Legislative Tracking: I Richard W. Saltrick, ext. 6565 MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 27, 201 1 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE APPROPRIATION OF $1,200,000 FROM THE FISCAL YEAR (FY) 2011112 PEOPLE'S TRANSPORTATION PLAN (PTP) FUNDS AND FY 2011112 SOUTH BEACH CONCURRENCY MITIGATION FUNDS IN THE AMOUNT OF $13,121, TO FUND THE OPERATING BUDGET FOR THE SOUTH BEACH LOCAL (SBL) IN MIAMI BEACH; AND FURTHER APPROPRIATING $275,000 FROM FY 201 111 2 PTP FUNDS FOR ADMINISTRATIVE AND TECHNICAL OPERATING EXPENDITURES, AS PART OF THE FIVE PERCENT (5%) OF ADMINISTRATIVE ASSISTANCE AND TECHNICAL ASSISTANCE ALLOWABLE FOR PTP EXPENDITURES. ADMINISTRATION RECOMMENDATION Adopt the Resolution. FUNDING Funding to be appropriated for the FY 201 1/12 operating budget for the South Beach Local (SBL) in Miami Beach in the amount of $1,200,000 as follows: FY 201 1/12 PTP Funds in the amount of $1,200,000 and FY 2011/12 South Beach Concurrency Mitigation Funds in the amount of $13,121. Funding to be appropriated for FY 201 1/12 administrative and technical assistance in the amount of $275,000 from FY 201 1/12 PTP Funds. BACKGROUND On November 5, 2002, Miami-Dade County (County) voters approved the levying of a one half of one percent discretionary surtax on transactions occurring in the County that are subject to the state tax imposed on sales. Twenty percent (20%) of the proceeds of this surtax are to be distributed directly to municipalities on a pro rata basis and are known as People's Transportation Plan (PTP) Funds for use on local transportation and transit projects. The City entered into an Interlocal Agreement (ILA) with the County on August 13th, 2003 in order to receive its share of PTP Funds. ANALYSIS South Beach Local Operating Budget Under the provisions of a second ILA, the County has been operating a bi-directional transit circulator route service in Miami Beach known as the "South Beach Local" since September 25, 2005. The SBL replaced both the City's Electrowave Shuttle Service and Miami-Dade Transit's (MDT) Route W, serving the entire South Beach community. MDT became the provider of bus Commission Memorandum - PTP Operating Funds September 27,201 1 Page 2 of 3 shuttle services on South Beach in lieu of the previous provider, the Miami Beach Transportation Management Association. MDT has provided an expanded level of service at significantly less cost to the City as a result of the City and County combining and coordinating transit resources instead of competing for the same ridership. The partnership allows the City to comply with the requirement of the People's Transportation Plan (PTP) Surtax to expend 20% of the City's PTP share on transit purposes. If not used for transit services, the 20% share of PTP funds would be returned to the County. The SBL ILA expired on October 11, 2010; however, MDT has continued to provide service after the expiration of the SBL ILA under the same terms and conditions. MDT initially wanted to have the City contribute more to the annual operating cost than our current proportion of approximately 35% City and 65% County. The County wanted to have a 50% City and 50% County split. The cost increase to the City would have been $507,379 annually. In addition, the County wanted to increase the headways during peak hours, eliminate the City's 3% annual increase limits, and eliminate the Belle Isle service. After prolonged negotiations and support from County Commissioner Bruno A. Barreiro, the City and MDT agreed to the following: 1. The City will maintain the current level of contribution of $1,213,121 per year. 2. Maintain the current headways of 13 minutes during the peak hours. 3. Continue service to Belle Isle. 4. Maintain the City's contribution to the annual net operating cost increase to the Miami-Ft. Lauderdale CPI Transportation Index or 3%, whichever is less. PTP Administrative and Technical Assistance Pursuant to Miami-Dade County Ordinance 02-116, 5% of PTP funds received may be appropriated for administrative assistance (See Attachment 1. Ordinance 02-1 16). An unlimited amount may be appropriated for technical assistance Administrative and technical operating expenditures to be paid for with PTP funding in the amount of $275,000 are recommended in Attachment 2. "PTP Operating Expenditure Chart". A percentage of the salaries of the Public Works Transportation Division staff qualify as administrative and technical assistance. Administrative assistance by the Transportation Manager includes but is not limited to the following responsibilities: overall management of PTP funding; allocation of PTP funding to the various projects; capital budget preparation; review of all PTP documents; and attendance of PTP workshops and meetings at Miami-Dade County. Technical assistance by the Transportation Manager includes but is not limited to the following responsibilities: overall management of all PTP projects including 16'~ Street Roadway lmprovement Project, Coastal Communities Transportation and Transit Master Plans, the Bicycle Program, and Pedestrian lmprovement Projects; review of plans and other documents on all PTP funded projects; coordination with various state, county and local agencies on all PTP funded projects; development of design plans for PTP funded projects. Administrative assistance by the Transportation Coordinator includes but is not limited to the following responsibilities: assisting the Transportation Manager with managing PTP funding; preparing all PTP documents including the Five Year PTP Plan, Quarterly Reports, Commission items, internal memos, Letters to the Commission, and correspondence to Miami-Dade County; assisting with Miami-Dade County's audit of PTP funds; tracking all PTP fund expenditures; 165 Commission Memorandum - PTP Operating Funds September 27,201 1 Page 3 of 3 tracks PTP revenue on a monthly and yearly basis; and preparing reconciliations of PTP funds. Technical assistance by the Transportation Coordinator includes but is not limited to the following responsibilities: assisting the Transportation Manager with managing PTP funded projects; reviewing plans and other documents on all PTP funded projects; and coordinating with various state, county, and local agencies on all PTP funded projects. The salary figures and percentages indicated in the PTP Operating Expenditure Chart are directly in support of the program. FY 201 1/12 PTP and Concurrency Mitigation Fund Appropriations The total projected amount of PTP funds to be appropriated in FY 201 1112 is $2,713,038, of which $1,475,000 is for operating expenses and $1,238,038 is for capital projects. The total amount of Concurrency Mitigation Funds to be appropriated in FY 2011112 is $398,121, of which $13,121 is for operating expenses and $385,000 is for capital projects (Capital projects are appropriated separately in the capital budget). These appropriations are provided in the following tables: Total FY 201 111 2 PTP Appropriation: $1,200,000 Local Circulator Operating Expenses $ 275,000 Administrative and Technical Expenses $1,238,038 Capital Proiects $2,713,038 Total FY 201 011 1 Appropriation Total FY 201 1/12 Concurrency Mitigation Fund Appropriation: $ 13,121 Local Circulator Operating Expenses $385,000 Capital Proiects $398,121 Total FY 201 111 2 Appropriation CONCLUSION The Administration recommends that the Mayor and City Commission adopt the resolution approving the appropriation of $1,200,000 from FY 201 1/12 PTP funds and FY 201 1112 South Beach Concurrency Mitigation Funds in the amount of $13,121 to fund the operating budget for the South Beach Local in Miami Beach; and further appropriating $275,000 from FY 201 1/12 PTP funds for administrative and technical operating expenditures, as part of the five percent (5%) of administrative assistance and technical assistance allowable for PTP expenditures. Attachments: 1. Ordinance 02-1 16 2. PTP Operating Expenditure Chart DRBIFHBIRWSIDF T:MGENDA\2011\9-27-11\PTP Operating Funds MEMO.doc Attachment I ARTICLE XVI. ONE HALF OF ONE PERCENT CHARTER COUNTY TRANSIT SYSTEM SALES SURTAX AUTHORIZED BY SECTION 212.055(1) FLORIDA STATUTES (2001) Sec. 29-121. Sales surtax levied. There is hereby levied and imposed a one half of one percent discretionary sales surtax authorized by Section 212.055(1), Florida Statutes (2001) on all transactions occurring in Miami-Dade County which transactions are subject to the state tax imposed on sales, use, rentals, admissions and other transactions by Chapter 212, Florida Statutes (2001). (Ord. No. 02-1 16, § 1, 7-9-02) Sec. 29-122. Surtax rate, limitations. The surtax rate shall be one-half of one percent on the amount of taxable sales and taxable purchases representing such transactions. The limitations, conditions and provisions contained in Section 212.054, Florida Statutes (2001) as the same may be amended and supplemented from time to time are hereby incorporated herein. (Ord. No. 02-1 16, § A, 7-9-02) Sec. 29-122.1. Exemption from Sales Surtax. All exemptions applicable to the discretionary sales surtax contained in Chapter 212, Florida Statutes are hereby incorporated herein as the same may be amended and supplemented from time to time including, but not limited to, the following: 1. The sales amount above $5,000 on any item of tangible personal property shall not be subject to the surtax. However, charges for prepaid calling arrangements, as defined in Section 212.05(1) (e)l.a. Fla. Stats., shall be subject to the surtax. For purposes of administering the $5,000 limitation of an item of tangible personal property, if two or more taxable items of tangible personal property are sold to the same purchaser at the same time and, under generally accepted business practice or industry standards or usage, are normally sold in bulk or are items that, when assembled, comprise a working unit or part of a working unit, such items must be considered a single item for purposes of the $5,000 limitation when supported by a charge ticket, sale slip, invoice, or other tangible evidence of a single sale or rental. 2. The sale at retail, the rental, the use, the consumption, the distribution, and the storage to be used or consumed in this state of the following are hereby specifically exempt from the sales surtax imposed by this article. (I ) Exemptions; General Groceries. (a) Food products for human consumption are exempt from the sales surtax imposed by this article. (b) For the purpose of this article, as used in this subsection, the term "food products" means edible commodities, whether processed, cooked, raw, canned, or in any other form, which are generally regarded as food. This includes, but is not limited to, all of the following: 1. Cereals and cereal products, baked goods, oleomargarine, meat and meat products, fish and seafood products, frozen foods and dinners, poultry, eggs and egg products, vegetables and vegetable products, fruit and fruit products, spices, salt, sugar and sugar products, milk and dairy products, and products intended to be mixed with milk. 2. Natural fruit or vegetable juices or their concentrates or reconstituted natural concentrated fruit or vegetable juices, whether frozen or unfrozen, dehydrated, powdered, granulated, sweetened or unsweetened, seasoned with salt or spice, or unseasoned; coffee, coffee substitutes, or cocoa; and tea, unless it is sold in a liquid form. 3. Bakery products sold by bakeries, pastry shops, or like establishments that do not have eating facilities. (c) The exemption provided by this subsection does not apply: 1. When the food products are sold as meals for consumption on or off the premises of the dealer. 2. When the food, products are furnished, prepared, or served for consumption at tables, chairs, or counters or from trays, glasses, dishes, or other tableware, whether provided by the dealer or by a person with whom the dealer contracts to furnish, prepare, or serve food products to others. 3. When the food products are ordinarily sold for immediate consumption on the seller's premises or near a location at which parking facilities are provided primarily for the use of patrons in consuming the products purchased at the location, even though such products are sold on a "take - out" or "to go" order and are actually packaged or wrapped and taken from ' the premises of the dealer. 4. To sandwiches sold ready for immediate consumption on or off the seller's premises. 5. When the food products are sold ready for immediate consumption within a place, the entrance to which is subject to an admission charge. 6. When the food products are sold as hot prepared food products. 7. To soft drinks, which include, but are not limited to, any nonalcoholic beverage, any preparation or beverage commonly referred to as a "soft drink," or any noncarbonated drink made fmm milk derivatives or tea, when sold in cans or similar containers. 8. To ice cream, frozen yogurt, and similar frozen dairy or nondairy products in cones, small cups, or pints, popsicles, frozen fruit bars, or other novelty items, whether or not sold separately. 9. To food prepared, whether on or off the premises, and sold for immediate consumption. This does not apply to food prepared off the premises and sold in the original sealed container, or the slicing of products into smaller portions. 10. When the food products are sold through a vending machine, pushcart, motor vehicle, or any other form of vehicle. 11. To candy and any similar product regarded as candy or confection, based on its normal use, as indicated on the label or advertising thereof. 12. To bakery products sold by bakeries, pastry shops, or like establishments that have eating facilities, except when sold for consumption off the seller's premises. 13. When food products are served, prepared, or sold in or by restaurants, lunch counters, cafeterias, hotels, taverns, or other like places of business. (d) As used in this subsection (I), the term: 1. "For consumption off the seller's premises" means that the food or drink is intended by the customer to be consumed at a place away from the dealer's premises. 2. "For consumption on the seller's premises" means that the food or drink sold may be immediately consumed on the premises where the dealer conducts his or her business. In determining whether an item of food is sold for immediate consumption, there shall be considered the customary consumption practices prevailing at the selling facility. 3. "Premises" shall be construed broadly, and means, but is not limited to, the lobby, aisle, or auditorium of a theater; the seating, aisle, or parking area of an arena, rink, or stadium; or the parking area of a drive-in or outdoor theater. The premises of a caterer with respect to catered meals or beverages shall be the place where such meals or beverages are served. 4. "Hot prepared food products1' means those products, items, or components which have been prepared for sale in a heated condition and which are sold at any temperature that is higher than the air temperature of the room or place where they are sold. "Hot prepared food products," for the purposes of this subsection, includes a combination of hot and cold food items or components where a single price has been established for the combination and the food products are sold in such combination, such as a hot meal, a hot specialty dish or serving, or a hot sandwich or hot pizza, including cold components or side items. (e) 1. Food or drinks not exempt under paragraphs (a), (b), (c), and (d) shall be exempt, notwithstanding those paragraphs, when-purchased with food coupons or Special Supplemental Food Program for Women, Infants, and Children vouchers issued under authority of federal law. 2. This paragraph (e) is effective only while federal law prohibits a state's participation in the federal food coupon program or Special Supplemental Food Program for Women, Infants, and Children if there is an official determination that state or local sales taxes are collected within that state on purchases of food or drinks with such coupons. 3. This paragraph (e) shall not apply to any food or drinks on which federal law shall permit sales taxes without penalty, such as termination of the state's participation. (2) Exemptions medical. (a) There shall be exempt from the sales surtax imposed by this article any medical products and supplies or medicine dispensed according to an individual prescription or prescriptions written by a prescriber authorized by law to prescribe medicinal drugs; hypodermic needles; hypodermic syringes; chemical compounds and test kits used for the diagnosis or treatment of human disease, illness, or injury; and common household remedies recommended and generally sold for internal and external use in the cure, mitigation, treatment, or prevention of illness or disease in human beings, but not including cosmetics or toilet articles, notwithstanding the presence of medicinal ingredients therein, according to a list prescribed and approved by the Department of Health, which list shall be certified to the Department of Revenue from time to time and included in the rules promulgated by the Department of Revenue. There shall also be exempt from the sales surtax imposed by this article artificial eyes and limbs; orthopedic shoes; prescription eyeglasses and items incidental thereto or which become a part thereof; dentures; hearing aids; crutches; prosthetic and orthopedic appliances; and funerals. In addition, any items intended for one-time use which transfer essential optical characteristics to contact lenses shall be exempt from the sales surtax imposed by this article, however, this exemption shall apply only after $100,000 of the sales surtax imposed by this article on such items has been paid in any calendar year by a taxpayer who claims the exemption in such year. Funeral directors shall pay tax on all tangible personal property used by them in their business. (b) For the purposes of this subsection (2): 1. "Prosthetic and orthopedic appliances" means any apparatus, instrument, device, or equipment used to replace or substitute for any missing part of the body, to alleviate the malfunction of any part of the body, or to assist any disabled person in leading a normal life by facilitating such person's mobility. Such apparatus, instrument, device, or equipment shall be exempted according to an individual prescription or prescriptions written by a physician licensed under chapter 458, chapter 459, chapter 460, chapter 461, or chapter 466, Florida Statutes, or according to a list prescribed and approved by the Department of Health, which list shall be certified to the Department of Revenue from time to time and included in the rules promulgated by the Department of Revenue. 2. "Cosmetics" means articles intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body for cleaning, beautifying, promoting attractiveness, or altering the appearance and also means articles intended for use as a compound of any such articles, including, but not limited to, cold creams, suntan lotions, makeup, and body lotions. 3. "Toilet articles" means any article advertised or held out for sale for grooming purposes and those articles that are customarily used for grooming purposes, regardless of the name by which they may be known, including, but not limited to, soap, toothpaste, hair spray, shaving products, colognes, perfumes, shampoo, deodorant, and mouthwash. 4. "Prescription" includes any order for drugs or medicinal supplies written or transmitted by any means of communication by a duly licensed practitioner authorized by the laws of the state to prescribe such drugs or medicinal supplies and intended to be dispensed by a pharmacist. The term also includes an orally transmitted order by the lawfully designated agent of such practitioner. The term also includes an order written or transmitted by a practitioner licensed to practice in a jurisdiction other than this state, but only if the pharmacist called upon to dispense such order determines, in the exercise of his or her professional judgment, that the order is valid and necessary for the treatment of a chronic or recurrent illness. The term also includes a pharmacist's order for a product selected from the formulary created pursuant to Sec. 465.186 Fla. Stats. A prescription may be retained in written form, or the pharmacist may cause it to be recorded in a data processing system, provided that such order can be produced in printed form upon lawful request. (c) Chlorine shall not be exempt from the tax imposed by this article when used for the treatment of water in swimming pools. (d) Lithotripters are exempt. (e) Human organs are exempt. (9 Sales of drugs to or by physicians, dentists, veterinarians, and hospitals in connection with medical treatment are exempt. (g) Medical products and supplies used in the cure, mitigation, alleviation, prevention, or treatment of injury, disease, or incapacity which are temporarily or permanently incorporated into a patient or client by a practitioner of the healing arts licensed in the state are exempt. (h) The purchase by a veterinarian of commonly recognized substances possessing curative or remedial properties which are ordered and dispensed as treatment for a diagnosed health disorder by or on the prescription of a duly licensed veterinarian, and which are applied to or consumed by animals for alleviation of pain or the cure or prevention of sickness, disease, or suffering are exempt. Also exempt are the purchase by a veterinarian of antiseptics, absorbent cotton, gauze for bandages, lotions, vitamins, and worm remedies. (i) X-ray opaques, also known as opaque drugs and radiopaque, such as the various opaque dyes and barium sulphate, when used in connection with medical X rays for treatment of bodies of humans and animals, are exempt. (j) Parts, special attachments, special lettering, and other like items that are added to or attached to tangible personal property so that a handicapped person can use them are exempt when such items are purchased by a person pursuant to an individual prescription. (k) This subsection (2) shall be strictly construed and enforced. (Ord. No. 02-1 16,s 1, 7-9-02) Sec. 29-123. Administration, collection and enforcement. The Florida Department of Revenue shall administer, collect and enforce the surtax levied hereunder pursuant to the procedures specified in Sec. 212.054(4) Fla. Stats. (2001) as the same may be amended or - renumbered from time to time. (Ord. No. 02-116, § I, 7-9-02) Sec. 29-124. Special fund created; uses of surtax proceeds; and role of Citizens' lndependent Transportation Trust. The surtax proceeds collected by the State and distributed hereunder shall be deposited in a special fund set aside from other County funds in the custody of the Finance Director of the County. Moneys in the special fund shall be expended for the transportation and transit projects (including operation and maintenance thereof) set forth in Exhibit 1 to this article (including those projects referenced in the ballot question presented to the electors to approve this levy), subject to any amendments thereto made in accordance with the MPO process or made in accordance with the procedures specified in subsection (d) of this Section. Expenditure of surtax proceeds shall be subject to the following limitations: (a) Surtax proceeds shall be applied to expand the Golden Passport Program to all persons (regardless of income level who are over the age of 65 or are drawing Social Security benefits, and to provide fare-free public transportation service on Metromover, including extensions. (b) Surtax proceeds may only be expended for the transportation and transit purposes specified in Section 21 2.055(1)(d)I -3 Fla. Stats. (2001). (c) The County shall not expend more than five percent of the County's share of surtax proceeds on administrative costs, exclusive of project management and oversight for projects funded by the surtax. (d) The County Commission shall not delete or materially change any County project contained in the list attached as Exhibit I to this article nor add any project to the list except in accordance with the procedures set forth in this subsection (d). A proposed deletion, material change or addition of a County project shall be initially reviewed by the Citizens' lndependent Transportation Trust ("Trust1'), which shall forward a recommendation thereon to the County Commission. The County Commission may either accept or reject the Trust's recommendation. If the County Commission rejects the recommendation, the matter shall be referred back to the Trust for its reconsideration and issuance of a reconsidered recommendation to the County Commission. The County Commission may approve, change or reject the Trust's reconsidered recommendation. A two-thirds vote of the Commission membership shall be required to take action other than as contained in the reconsidered recommendation of the Trust. The foregoing notwithstanding, the list of County projects contained in Exhibit 1 may be changed as a result of the MPO process as mandated by federal and state law. (e) No surtax proceeds may be used to pay the costs of a contract awarded by action of the County Commission until such action has become final (either by expiration of ten days after such action without veto by the Mayor, or by Commission override of a veto) and either: i) the Trust has approved same; or, ii) in response to the Trust's disapproval, the County Commission re-affirms its award by two-thirds ( 213) vote of the Commission's membership. The bid documents for all County contracts funded in whole or in part with surtax proceeds shall provide that no award shall be effective and no contractual relationship shall arise with the County unless and until approved by the Trust or re-affirmed by the County Commission as provided in this subsection. The foregoing notwithstanding, awards of contracts for services in support of the administration of the Trust or in support of the Trust's oversight function shall not require County Commission or Trust approval, so long as the individual contract amount does not exceed one thousand dollars ($1,000). (9 On a quarterly basis, the Executive Director of the ClTT shall submit a written report to the Commission, the Mayor and the Manager of all expenditures made pursuant to Section 29-124 herein. (g) Twenty percent of surtax proceeds shall be distributed annually to those cities existing as of November 5,2002 that meet the following conditions: (i) That continue to provide the same level of general fund support for transportation that is in their FY 2001-2002 budget in subsequent Fiscal Years. Any surtax proceeds received shall be applied to supplement, not replace a city's general fund support for transportation; (ii) That apply 20 percent of any surtax proceeds received to transit uses in the nature of circulator buses, bus shelters, bus pullout bays or other transit-related infrastructure. Any city that cannot apply the 20 percent portion of surtax proceeds it receives as provided in the preceding sentence, may contract with the County for the County to apply such proceeds on a County project that enhances traffic mobility within that city and immediately adjacent areas. If the city cannot expend such proceeds in accordance with either of the preceding sentences, then such proceeds shall carry over and be added to the overall portion of surtax proceeds to be distributed to the cities in the ensuing year and shall be utilized solely for the transit uses enumerated in this subsection (ii); and (iii) Surtax proceeds distributed amongst the existing cities shall be distributed on a pro rata basis based on the ratio such city's population bears to the total population in all such cities (as adjusted annually in accordance with the Estimates of Population prepared by the Bureau of Economic and Business Research of the University of Florida). annually to those cities that continue to meet the foregoing conditions. For purposes of the foregoing, whenever an annexation occurs in an existing city, the number of persons residing in such annexed area at the time it is annexed shall be excluded from all calculations. Increases in population in areas annexed over and above the population in such area at the time of annexation which occur after annexation shall be included in subsequent years' calculations. (iv) that do not expend more than 5% of 'its municipal share of surtax proceeds on administrative costs, exclusive of project management and oversight for projects funded by the surtax. Administrative costs shall be defined as overhead expenses which are not readily attributable to any one particular project funded in whole or in part by transit surtax funds. (h) Newly incorporated municipalities shall have the right to negotiate with the County for a pro rata share of the sales surtax, taking into consideration the neighborhood and municipal projects identified in Exhibit 1, as amended, within the boundaries of the new municipalities. The preceding sentence shall not affect the twenty (20) percent share provided herein for municipalities existing on November 5,2002. (Ord. No. 02-1 16,s 1, 7-9-02; Ord. No. 06-138, § 1, 9-26-06; Ord. No. 07-56, § 1,4-24-07) Attachment 2 PTP Operating Expenditure Chart PTP Administrative Support - Eligible expense NTE 5% FY 2012 Budget Transportation Coordinator Salary (50%) 35,180 Health Ins. (50%) 2,250 Social Security Medicare (50%) 510 Su b-Total 37,940 Transportation Manager Health Ins. (1 5%) 675 Social Security Medicare (1 5%) 51 0 Sub-Total 15,062 0 PTP Technical Support Transportation Coordinator Salary (25%) 17,590 Health Ins. (25%) 1,125 Social Security Medicare (25%) 255 Sub-Total 18,970 Professional Services 173,523 Transportation Manager Salary (30%) 27,753 Health Ins. (30%) 1,350 Social Security Medicare (30%) 402 Su b-Total 29,506 Total - PTP Technical Support 221,999 GRAND TOTAL 275,000 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MlAMl BEACH, FLORIDA, AUTHORIZING THE APPROPRIATION OF $1,200,000 FROM THE FISCAL YEAR (FY) 2011112 PEOPLE'S TRANSPORTATION PLAN (PTP) FUNDS AND FY 2011112 SOUTH BEACH CONCURRENCY MITIGATION FUNDS IN THE AMOUNT OF $13,121, TO FUND THE OPERATING BUDGET FOR THE SOUTH BEACH LOCAL (SBL) IN MlAMl BEACH; AND FURTHER APPROPRIATING $275,000 FROM FY 201 1112 PTP FUNDS FOR ADMINISTRATIVE AND TECHNICAL OPERATING EXPENDITURES, AS PART OF THE FIVE PERCENT (5%) OF ADMINISTRATIVE ASSISTANCE AND TECHNICAL ASSISTANCE ALLOWABLE FOR PTP EXPENDITURES. WHEREAS, under the provisions of an lnterlocal Agreement (ILA) Miami-Dade County (the County) has been operating a bi-directional transit circulator route service in Miami Beach known as the "South Beach Local" (SBL) since September 25,2005; and WHEREAS, the SBL ILA expired on October 11, 2010; however, Miami-Dade Transit (MDT) has continued to provide service after the expiration of the SBL ILA under the same terms and conditions; and WHEREAS, MDT initially wanted to have the City contribute more to the annual operating cost than our current proportion of approximately 35% City and 65% County. The County wanted to have a 50% City and 50% County split. The cost increase to the City would have been $507,379 annually; and WHEREAS, in addition, the County wanted to increase the headways during peak hours, eliminate the City's 3% annual increase limits, and eliminate the Belle Isle service.; and WHEREAS, after prolonged negotiations and support from County Commissioner Bruno A. Barreiro, the City and MDT agreed to the following: The City will maintain the current level of contribution of $1,213,121 per year, maintain the current headways of 13 minutes during the peak hours, continue service to Belle Isle, and maintain the City's contribution to the annual net operating cost increase to the Miami-Ft. Lauderdale CPI Transportation Index or 3%, whichever is less; and WHEREAS, Miami-Dade County Ordinance 02-1 16 authorizes five percent (5%) of PTP funds received to be appropriated for administrative assistance and an unlimited amount for technical assistance; and WHEREAS, the Engineering and Transportation Divisions employ positions whose job responsibilities qualify as administrative and technical assistance, and a percentage of their salaries can be paid with PTP funds; and WHEREAS, the City entered into an lnterlocal Agreement (ILA) with the County on August 13th, 2003 in order to receive their share of PTP Funds; and WHEREAS, twenty (20) percent of the proceeds of this surtax are to be distributed directly to municipalities on a pro rata basis and are known as People's Transportation Plan (PTP) Funds for use on local transportation and transit projects; and WHEREAS, the total projected amount of PTP funds to be appropriated in FY 201 1/12 is $2,713,038, of which $1,475,000 is for operating expenses and $1,238,038 is for capital projects; and WHEREAS, the total amount of Concurrency Mitigation Funds to be appropriated in FY 201 1/12 is $398,121, of which $13,121 is for operating expenses and $385,000 is for capital projects. WHEREAS, $1,200,000 in FY 2011/12 PTP funds, and $13,121 from FY 201 1/12 Concurrency Mitigation funds have been set aside for the operating costs of the South Beach Local in Miami Beach; and $275,000 in FY 2011/12 PTP funds have been set aside for FY 201 1/12 administrative and technical operating expenditures. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize the appropriation of $1,200,000 from FY 201 1/12 PTP funds and FY 201 1/12 South Beach Concurrency Mitigation Funds in the amount of $1 3,121 to fund the operating budget for the South Beach Local (SBL) in Miami Beach; and further appropriating $275,000 from FY 201 1/12 PTP funds for administrative and technical operating expenditures, as part of the five percent (5%) of administrative assistance and technical assistance allowable for PTP expenditures. PASSED AND ADOPTED this day of September, 201 1. ATTEST: MAYOR CfTY CLERK T:\AGENDA\2011\9-27-11 \PTP Operating Funds RESO.doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION THIS PAGE INTENTIONALLY LEFT BLANK COMMISSION ITEM SUMMARY Condensed Title: A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, adopting the Miami Beach Cultural Arts Council's Fiscal Year 201 1/12 budget in the amount of $1,181,000. Key Intended Outcome Supported: Increase community rating of cultural activities. Supporting Data (Surveys, Environmental Scan, etc.): According to the 2009 Survey, on average, residents attended cultural activities 10.61 times per month and family friendly activities 7.19 times per month. Issue: Shall the City adopt the Miami Beach Cultural Arts Council's Fiscal Year 2011112 budget in the amount of $1,181 ,OOO? Item Summary/Recommendation: [ The Cultural Arts Council (CAC) 201 1/12 Budget is allocated as follows: Cultural Arts Grant Programs - The CAC's annual grants program represents 53% of their annual budget, which equals $630,000. A companion item is included in today's agenda that provides additional information on the grants process and the recommended awards. Marketing - This funding is utilized to promote the City of Miami Beach as the region's preeminent cultural destination and help market the programs of the City's constituent arts groups. This represents 17% of their budget, which equals $203,587. Cultural Endowment - The CAC's budget does not include a contribution towards the City's Cultural Endowment for Fiscal Year 201 1/12 due to budget constraints. Administration - Administrative and operating expenses are at $347,413. The administrative budget includes an allocation of $75,000 for a curriculum-based arts education program for City of Miami Beach Schools. [ It is recommended that the City Commission adopt the budget as indicated. Advisory Board Recommendation: The Cultural Arts Council approved the proposed budget at their meeting on February 3, 201 1. Financial Information: 1 Financial Impact Summary: I Source of Funds: OBPI City Clerk's Office Legislative Tracking: BEACH 177 1 2 3 4 Total Amount $1,181,000 $1 ,I 81,000 Account 140.6080 Cultural Arts Council Fund Approved MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Bower and Members of the City Commizjsion FROM: Jorge M. Gonzalez, City Manager DATE: September 27,201 1 SUBJECT: A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA' ADOPTING THE MIAMI BEACH CULTURAL ARTS COUNCIL'S FISCAL YEAR 2017112 BUDGET IN THE AMOUNT OF $1,781,000 ADMINISTRATION RECOMMENDATION Adopt the Resolution. -. FUNDING The Cultural Affairs Program is funded by interest earned from the Miami Beach Convention Center Capital Fund, the GMCVB (per contract), Resort Taxes and Quality of Life funds. ANALYSIS The Cultural Arts Council's (CAC) mission is to develop, coordinate, and promote the visual and performing arts in Miami p each for the enjoyment, education, cultural enichment, and benefit of residents and visitors. In 1997, the original nine-member volunteer board conducted town meetings with arts groups to evaluate their needs. It then developed a cultural arts master plan identifying programs to assist local arts groups: grants, marketing, facilities, revenue development, and advocacylplanning. The Mayor and City Commission adopted the master plan on June 3, 1998. Since that time the City has awarded in excess of $9 million in cultural arts grants, supporting thousands of performances, exhibits, and other cultural activities in Miami Beach. The CAC continually evaluates its programs and effectiveness based on comments from its constituent arts groups, advisers, grants panelists, community groups, elected officials, City administrators, and others. The positive economic impact of the City's cultural efforts is evident throughout the community as is its effect on our quality of life. Quality of Life Revenue In Fiscal Year 2004105, the City Commission authorized equally allocating 50% of the 1 % Resort Tax to North Beach, Middle Beach, and South Beach, and Tourism & Cultural Development for Cultural Affairs. This commitment of funding for arts and culture provided a new permanent funding source that sustains cultural programming long term. Cultural Arts Grants The City Administration is recommending grants to 47 not-for-profit organizations for cultural events in Miami Beach between October 1,201 1 and September 30, 2012. The CAC's recommended annual budget for grants is $630,000, or approximately 53% of the total CAC budget. Included in this figure is the joint CACIVCA program for Cultural Tourism grants that support cultural events with documented tourism benefits; the VCA provides $30,000 and the CAC provides $30,000 to fund this program. The grant awards range from $6,450 to $25,598. A total of $975,000 was requested by47 CAC Budget FY 11/12 City Commission Meeting September 27,201 1 Page 2 of2 grant applicants this year. An additional four (4) applicants did not meet the minimum score requirement of 80% and therefore were ineligible for funding. There is a corresponding item in today's agenda detailing the recommended grant awards for Fiscal Year 201 1112. Marketing This year, the CAC has recommended $203,587, approximately 17% of its annual budget, to be utilized to promote the City of Miami Beach as the region's preeminent cultural destination. Last year's efforts continued the momentum initially generated by the marketing initiative from FY 2004105, developed by the CAC's Marketing and Communications Task Force, to better promote the arts in our community and market the programs of the City's constituent arts groups. The CAC will use these funds to further cultural marketing efforts for Fiscal Year 201 1112. The successful launch of an interactive "Mbculture.com" website features an extensive cultural calendar and allows the CAC's constituent groups to post advertisements about their events to its 2500+ subscribers. An accompanying multimedia ad campaign, similar to the campaign for sleeplessnight.org, will drive visitors to the site. The CAC is also expanding international marketing efforts for its signature Sleepless Night event, which returns November 5,201 1. Endowment From 1998 through 2001 the City contributed $200,000 towards the CAC's Cultural Endowment, or eight percent (8%) of the CAC's annual budget. In fiscal years 2001102 and 2002103, due to a decrease in funding sources, the City contributed $160,000,15% of the CAC's annual budget. Due to significant decreases in resort tax revenue and interest income, the City did not contribute to the CAC's Cultural Endowment for 2003104. However, in fiscal years 2004105,2005106 and 2006107, the City contributed $100,000 each year. By the end of Fiscal Year 2006107 the Cultural Endowment totaled $1,220,000. Last year however, due to significant decreases in interest income and property tax cuts, the City did not contribute towards the CAC's Cultural Endowment and the City Administration is recommending against a contribution in FY 201 1112. Administration The CAC's annual budget also includes $347,413 to be utilized for administrative and operating expenses. This includes salaries and benefits for two full-time employees, professional services, operating accounts supporting the CAC's programs and City internal service charges. The CAC Administrative budget also includes an allocation of $75,000 to continue, and strengthen, curriculum-based arts education programs in City of Miami Beach schools, and after-school arts classes at school, park and youth center locations. The City began contracting for these services in FY 2005106, following several years of CAC grant support for these programs. The programs are designed to increase arts and cultural activities for Beach youth and their families at City facilities and within the City schools. An established evaluative process and constant feedback assist the Cultural Affairs Program Staff in monitoring the high quality and continued success of these programs, which receive supplemental funding of $30,000 from the Tourism & Cultural Development General Fund Budget, bringing the total program costs to $1 05,000. CONCLUSION The Mayor and City Commission should adopt the Miami Beach Cultural Arts Council's Fiscal Year 201 111 2 budget in the amount of $1 ,I 81,000. JMGlHF/MAS/GFlMH T:\AGENDA\2011\9-27-11\CAC Budget Memo 1 I l2.doc CAC - FY 2011112 PROPOSED BUDGET 140-6080 Adopted FY 2011112 % of GENERAL FUND Budget Proposed Change Pension & FY 201011 1 ISC Adj Budget Variance REVENUES 7 GMCVB InterestH Resort Tax Quality of Life Fund Balance Total EXPENDITURES l~alaries Pension - 401A Pension - City Contribution Insurance Other Fringe Benefits Professional Services Telephones Operating Expenses Training & Awards Internal Services Capital Contingency Total Marketing 345 Endowment * 346 Grants 349 Total TOTAL EXPENDITURES Surplusl(Deficit) ] I $ 0 1 $ 9,128 1 $ -1s 0 1 I Budgeted Positions 2 2 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CIN OF MlAMl BEACH, FLORIDA, ADOPTING THE MlAMl BEACH CULTURAL ARTS COUNCIL'S FISCAL YEAR 2011112 BUDGET IN THE AMOUNT OF $1,181,000. WHEREAS, the Miami Beach Cultural Arts Council (CAC) was established by the Mayor and City Commission on March 5, 1997; and WHEREAS, the mission of the CAC is to develop, coordinate, and promote the visual and performing arts in the City of Miami Beach for the enjoyment, education, cultural enrichment and benefit of the residents of, and visitors to, Miami Beach; and WHEREAS, the Mayor and City Commission adopted the Cultural Arts Master Plan on June 3, 1998, identifying the following program areas for the CAC: cultural arts grants; marketing; facilities; advocacy and planning; and revenue development; and WHEREAS, pursuant to its enabling legislation, the CAC's budget for each fiscal year shall be adopted by the Mayor and City Commission; and WHEREAS, accordingly, the CAC recommends a $1 ,I 81,000 budget allocation for Fiscal Year 201 1/12 to continue implementation of its programs. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND ClTY COMMISSION OF THE CITY OF MlAMl BEACH, FLORIDA, that the Mayor and City Commission hereby adopt the Miami Beach Cultural Arts Council's Fiscal Year 201 1/12 budget, in the amount of $1 ,I 81,000. PASSED and ADOPTED THIS day of 2011. ATTEST: CITY CLERK MAYOR T:\AGENDA\2011\9-27-1 I\CAC Budget Resolution 11 12.doc APPROVED AS TO FORM & LANGUAGE 181 THIS PAGE INTENTIONALLY LEFT BLANK ! COMMISSION ITEM SUMMARY Condensed Title: I A resolution of the Mavor and Citv Commission of the Citv of Miami Beach. Florida, authorizing the City 1 Manager to approve t6e Cultural krts Council's Cultural &ants funding recommendations and awarding $630,000 in said grants, for Fiscal Year 2011/12, as identified in the attached Exhibit "A; and further authorizing the Mayor and City Clerk to execute said grant agreements, and make the award of said grant monies subiect to and contingent upon the approval of the Cultural Arts Council's budget for the Fiscal Key Intended Outcome Supported: Increase community rating of cultural activities. I Supporting Data (Surveys, Environmental Scan, etc.): According to the 2009 Survey, on average, residents attended cultural activities 10.61 times per month and family friendly activities 7.19 times per month. Issue: Shall the City approve and accept the grant award recommendations and award $630,000 in said Cultural Arts Grants for Fiscal Year 201 1/12? Item SummarylRecommendation: I Between Januarv and June 201 1. the Cultural Affairs Proaram Staff and CAC conducted an a~~lication 1 and review proc&s for its Fiscal Year 201 1/12 Cultural A& Grant Programs. This process included the 11 member CAC who served as the grants panelists to evaluate the 47 applications received, requesting a total of $975,000. The recommendations were reviewed by the CAC at their June 2 meeting, where the CAC unanimously supported them. The number of applications reviewed and dollar figures include submissions from the joint Cultural Tourism Grants Program with the Miami Beach VCA. Adopt the resolution and approve, accept, and award the Fiscal Year 201 1112 Cultural Arts Council grant recommendations in the amount of $630,000. Advisory Board Recormendation: I The Cultural Arts Council reviewed the grant panel recommendations at their June 2 meeting and I supports the recommended awards as reflected in the fourth column of Exhibit "A. Financial Information: I Financial Impact Summary: I Source of Funds: City Clerk's Office Legislative Tracking: . .. MIAMIBEACH 183 I 2 3 4 Total AGENDA iTEM R7H oax ,=~ Amount $630,000 $630,000 Account 140.6080 Cultural Arts Council Fund Approved @ MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 27,201 1 SUBJECT: RESOLUTION ACCEPTING THE ClTY MANAGER'S RECOMMENDATION, AND APPROVING THE CULTURAL ARTS COUNCIL'S FUNDING RECOMMENDATIONS,AND AWARDING $630,000 IN CULTURAL GRANTS, FOR FISCAL YEAR 2011112, AS IDENTIFIED IN THE ATTACHED EXHIBIT "A"; AND FURTHER AUTHORIZING THE MAYOR AND ClTY CLERK TO EXECUTE SAlD GRANTAGREEMENTS'AND MAKE THE AWARD OF SAlD GRANT MONIES SUBJECT TO AND CONTINGENT UPON THE APPROVAL OF THE CULTURAL ARTS COUNCIL'S BUDGET FOR THE FISCAL YEAR 201 111 2. ADMINISTRATION RECOMMEbDATION Adopt the Resolution. FUNDING Funding is available from the Cultural Arts Council's (CAC) budget for Fiscal Year 201 111 2. ANALYSIS The Mayor and City Commission passed an Ordinance in 1997 establishing the Cultural Arts Council to support the visual and performing arts in Miami Beach. The cultural arts grants program, a central component of the Council's master plan, provides funding to not-for-profit arts organizations through a competitive application and review process. This funding annually results in hundreds of performances, exhibits, and other cultural events being held throughout the City of Miami Beach. Fundina Cafeaories In 1998, a competitive process was established to review grant applications and assess the cultural community's needs. The grant categories and their objectives are listed below. Cultural Anchors - Provides grants to the major preeminent arts institutions physically based in the City of Miami Beach, whose primary mission is year-round artistic and cultural programming that contributes significantly to the cultural life of the City of Miami Beach. Organizations must have minimum organizational budget levels of $750,000. Grants may be used towards operational expenses in association with the annual cultural programming described in the application. The seven organizations are: ArtCenterISouth Florida, Bass Museum of Art, Jewish Museum of Florida, Miami City Ballet, Miami Design Preservation League, New World Symphony, and WolfsonianFIU. Three years ago the CAC approved the addition of Miami Beach based cultural CAC Grants Memo FY 11/12 City Commission Meeting September 27,201 1 Page 2 of 3 organizations into the Cultural Anchors category. These organizations meet all the above listed objectives but have organizational budget levels below $750,000, and are called "Junior" Cultural Anchors. For FY 201 1/12 these organizations include Arts at St. John's, Miami Beach Film Society, Miami Beach Garden Conservancy (Miami Beach Botanical Gardens), SoBe Institute of the Arts, Friends of the Miami-Dade Public Library and The Holocaust Memorial Committee which was added as a "Junior" Cultural Anchor at the November 4,201 0 CAC meeting. Cultural Heritage - Provides project-specific grants for arts programming to not-for-profit 501 (c)(3) Miami Beach-based institutions devoted to promoting and protecting the diverse heritage, traditions and culture of Miami Beach. Grants may be used for presentations of visual and performing arts, arts programs and workshops, and other projects which emphasize the artistic experience and are accessible to a broad audience. Grant funds may not be used to support projects that are primarily recreational, therapeutic, vocational or rehabilitative, or for religious services or programs designed solely for practitioners of a specific religion. Artistic Disciplines - Dance, Film, Music, Theater and Visual Arts Funding is limited to arts and cultural organizations whose primary mission is to create and present work in one of the following artistic disciplines; Dance, Music Theater, Film and Visual Arts. Proposed projects should be for work that is new or has never before been presented in Miami Beach. Organizations receiving an Artistic Discipline Grant are chosen based on demonstrated artistic talent and potential and the vision for the proposed project, in relation to their overall artistic goals. Cultural Presenters - Provides grants to organizations whose primary mission is to produce and present cultural and artistic productions. Cultural Tourism (funding shared by the CAC & VCA) - Provides grants to support major cultural arts performances, festivals, and events which attract a significant number of tourists to the City of Miami Beach. The CAC partners with the VCA for Cultural Tourism grants that support cultural events with documented tourism benefits. The VCA provided $30,000 and the CAC provided $30,000 to fund this program in Fiscal Year 201 111 2. Similar to the CAC grants panel process, three (3) members of the VCA and three (3) members of the CAC jointly convened a Cultural Tourism Panel on July 6, 201 1, to review and recommend funding for this category. Please refer to Exhibit B for a detailed list ofall the review panel members. The Cultural Tourism Program awards totaled $60,000. Cultural Ignition - Provides grants for organizations never before funded by the City of Miami Beach, encouraging new and smaller cultural organizations to participate in the grants process. Maximum award in this program is $5,000. No one has applied to date. Each year the CAC assesses its grants programs and practices, and adopts changes to improve the process and to better serve the public. Following on the success of the Byron Bonus program which allocated an additional $2,000 to grantees in order to maintain incentives for programming in North Beach, the Fresh Air Fund free outdoor performance bonus of $2,000 was offered to all FY 201 1/12 Artistic Disciplines and Cultural Presenter grantees whose projects include free outdoor performances in the City of Miami Beach. (e.g. at Collins Park, at North Beach Bandshell, etc). This new "Fresh Air Fund" replaces the Byron Bonus that was offered in FY 201 011 1. Twelve (I 2) applicant groups qualified for the CAC Grants Memo FY 1 111 2 City Commission Meeting September 27,201 1 Page 3 of 3 Fresh Air Fund in FY 201 1/12. Application Process All CAC grant applications, guidelines, and instructions were offered in English and Spanish. ~pplicati6ns were made available through the Department of Tourism and Cultural Development and electronically on the City of Miami Beach's (www.miamibeachfl..crov) and the Cultural Affairs Program's (www.mbculture.org and www.mbculture.com) websites. Additionally, the grant programs were publicized in English and Spanish media and via electronic mail. Between December 2010 and April 201 1 , Cultural Affairs staff met individually with applicants to determine eligibility, program category, and offer guidance regarding application preparation. Final grant application deadlines varied depending upon Program category with the earliest deadline of January 7, 201 1 for Cultural Anchors and the latest deadline of April 4, 201 1, for Cultural Presenters and Cultural Ignition programs. The application process, including the Cultural Tourism program, yielded 47 viable applications for cultural programming in Fiscal Year 201 1/12, with requests totaling $975,000, including the VCAICAC joint Cultural Tourism Program applicants. This year, the eleven CAC members again comprised the CAC grants panels exclusively, please refer to Exhibit C for a listing of CAC members. The Cultural Affairs Program Manager led the CAC members in a grant panel orientation during the CAC1s regular meeting on January 6, 201 1. The CAC grants panels convened at public meetings on February 3, March 3, April 7, and May 5,201 1. The Cultural Tourism grant panel convened at a public meeting on July 6, 201 1, at 1755 Meridian Avenue, Miami Beach. The panelists reviewed applications in alphabetical order. Applicants were allowed to address specific questions from the panelists. The applications were scored using evaluation forms based on criteria listed in the application, then averageddropping the highest and lowest scores. In a public meeting held on June 2, 201 1, the CAC members reviewed the final scores ranked highest to lowest from all the panel meetings combined. As per CAC approved Fiscal Year 201 1/12 grant guidelines, an application must have scored a minimum average of 80% to be eligible to receive funding. The attached Exhibit "A" lists the forty-seven (47) organizations recommended for funding. An additional four (4) applicants did not meet the minimum score requirements and therefore were ineligible for funding. CONCLUSION The Mayor and City Commission should adopt the City Administration's recommendation as detailed above and as reflected in the fourth column of Exhibit "A", titled "City Administration Recommendation." JMGIHFIMASIGFIMH T:\AGENDA\2011\9-27-1 l\CAC Grants Memo 11 12.doc EXHIBIT A 42 43 44 45 46 47 * Recelvlng Fresh Air Funds ($2000 Included In award ornount) I TOTAL 1 $ 975,000.00 1 $ 630,000.00 ] Teatro en Mlami City Theatre CULTURAL TOURISM GRANT PROGRAM 16~ Braz~han Fllrn Fesbval of Mlaml - ~nfinlto Art & cultural Foundatlon, ~nc XVII Internabonal Ballet Fesbval of Mlarnl - M~arn~ Hlspanlc Ballet Corp 14th Annual Mlarnl Gay & Lesb~an Film Fesbval ~n Mlaml Beach - Mlarnl Gay & Lesb~an Fllm FeNval VII S~c~l~an Film FesbmI -The s~c~han Cultural and Film Festival, Inc 87.167 84.429 nla nla nla nla $ 10,000.00 $ ,o . $ 30,000.00 $ 30,000.00 $ 30,000.00 $ 30,000.00 $ 6,450.36 12,495.49 CAC ~ontribution $ 8,250.00 $ 8,250.00~b_ $ 8,250.00 $ 5,250.00 TOTAL Awarded $ 16,500.00 16,500.00 $ 16,500.00 $ 10,500.00 EXHIBIT B Ms. Elsie Sterling Howard, Chair *Mr. Jeff Lehman, Vice Chair Ms. Micky Ross Steinberg *Ms. Jacque Hertz *Mr. Steve Adkins Mr. Keith Menin * July 6,20 1 1 Cultural Tourism Panelist EXHIBIT C MIAMIBEACH Cultural Arts Council Members lleana M. Bravo Chair Current term ends: 12/31/11 Zoila Datorre Current term ends: 12/31/11 Nina Duval Current term ends: 12/31/13 Solomon B. Genet Vice-Chair Current term ends: 12/31/12 lsadore H. (lay) Havenick Current term ends: 12/31/13 *Beatrice Hornstein Current term ends: 12/31/12 *Gregory Melvin Current term ends: 12/31/11 Daniel Novela Current term ends: 12/31/12 *Marjorie O'Neill-Butler Current Term ends: 12/31/12 Israel Sands Current term ends: 12/31/11 Eda Valero-Figueira Current term ends: 12/31/11 George Neary, Honorary Member Miami Beach Cultural Arts Council Department of Tourism & Cultural Development Office: 1755 Meridian Avenue, Suite 500 Mail: 1700 Convention Center Dr., Miami Beach 331 39-1 81 9 305 673 7577 1 fax 305 673 7262 / www.mbculture.org *July 6, 201 1 Cultural Tourism Panelist RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE ClTY OF MlAMl BEACH, FLORIDA, ACCEPTING THE ClTY MANAGER'S RECOMMENDATION, AND APPROVING THE CULTURAL ARTS COUNCIL'S FUNDING RECOMMENDATIONS, AND AWARDING $630,000 IN CULTURAL ARTS GRANTS, FOR FISCAL YEAR 2011112, AS IDENTIFIED IN THE ATTACHED EXHIBIT "A"; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID GRANT AGREEMENTS, AND MAKE THE AWARD OF SAID GRANT MONIES SUBJECT TO AND CONTINGENT UPON THE APPROVAL OF THE CULTURAL ARTS COUNCIL'S BUDGET FOR FISCAL YEAR 2011112. WHEREAS, the Miami Beach Cultural Arts Council (CAC) was created to develop, coordinate, and promote the performing and visual arts of the City if Miami Beach for the enjoyment, education, cultural enrichment, and benefit of the residents of and visitors to the City; and WHEREAS, from December 2010 through June 201 1, the Cultural Affairs staff and CAC conducted its application and review process for its Fiscal Year 201 1/12 Cultural Arts Grant Programs; and WHEREAS, grants panelists, comprised of the CAC members for CAC grant programs and both VCA and CAC members for the joint Cultural Tourism grant program, evaluated 47 applications, requesting a total of $975,000; and WHEREAS, the CAC, at its regular meeting on June 2, 201 1, reviewed their recommendations and unanimously supported the recommended Cultural Arts awards for Fiscal Year 2011/12 as more specifically identified in column four of Exhibit "A, attached hereto. WHEREAS, the City Manager has reviewed the recommendations and concurs with same. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND ClTY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission accept the City Manager's recommendations and hereby approves the award of $630,000 in CAC grants for Fiscal Year 201 1/12, as identified in column four of the attached Exhibit "A titled, "City Administration Recommendation"; and further authorize the Mayor and City Clerk to execute said Grant Agreements, making the award of said grants subject to and contingent upon the approval of the CAC's budget for Fiscal Year 201 1/12. PASSED and ADOPTED THIS day of 201 1. ATTEST: ClTY CLERK MAYOR &WWVED AS TO FORM & LANGUAGE COMMISSION ITEM SUMMARY Condensed Title: A resolution adopting and approving the Miami Beach Visitor and Convention Authority (MBVCA) FY 201 112012 budget in the amount of $2,337,729 Key Intended Outcome Supported: Increase community ratings of cultural and tourism related activities. Supporting Data (Surveys, Environmental Scan, etc.): According to the 2009 Survey, High satisfaction levels (those providing "excellent" or "good" rating) were recorded for each of the following City destinationslattractions by those respondents suggesting annual use: "City parklrecreational facilities" (84.1 %), "beaches" (81.9%) and "recreation programslfamily friendly activities" (81.6%). Issue: Shall the Mayor and Commission approve the Miami Beach Visitor and Convention Authority (MBVCA) FY 201 112012 budget in the amount of $2,337,729 Item SummarylRecommendation: 1 This budaet allows the MBVCA to continue its mission to support, maintain and develop quality programs, by I strategically focusing its investments which generate, satisfy and enhance the year-round tourist araciveness of Miami Beach. The MBVCA's budget funds programs and special events designed to promote the destination. The MBVCA is committed to a careful, long-term plan for allocation of resources to build the uniqueness of Miami Beach as one of the world's greatest communities and tourist destinations. Advisory Board Recommendation: ( The Miami Beach Visitor and Convention Authority (MBVCA) board unanimously approved the FY ) 201 112012 budget during its' August 22, 201 1 board meeting. Financial Information: I I Source of Funds: I I I I Financial Impact Summary: I City Clerk's Office Legislative Tracking: Grisette Roque Marcos OBPl T:WGENDA\2009\September 24\Regular\VCA Budget Comm Summary.doc Approved Total 1 $2,337,729 Rollover from FY 201 011 1 year Unrestricted Reserve Account 2% Resort Tax Revenue 2 3 1 $200,000 $320,000 Amount $1,817,729 MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 27, 201 1 SUBJECT: A RESOLUTION ADOPTING AND APPROVING THE MIAMI BEACH VISITOR AND CONVENTION AUTHORITY (MBVCA) FY 2011/2012 BUDGET IN THE AMOUNT OF $2,337,729. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND The Miami Beach Visitor and Convention Authority (MBVCA) was created and exists pursuant to , Chapter 67-930 of the Laws of Florida and Sections 102-246 through, and including 102-254 of the Code of the City of Miami Beach (CMB). According to Sec. 102-251, the MBVCA is to take "all necessary and proper action to promote the tourist industry for the city, including but not restricted to causing expert studies to be made, promotional programs, the recommendations and development of tourist attractions and facilities within the city, and to carry out programs of information, special events, convention sales and marketing, advertising designed to attract tourists, visitors and other interested persons." The MBVCA also has the duty of making all necessary rules and regulations for the efficient operations of the authority. The MBVCA is a seven-member authority. Each member is appointed by the City of Miami Beach (CMB) Commission, with the goal of encouraging, developing and promoting the image of Miami Beach locally, nationally and internationally as a vibrant community and tourist destination. To this end, the MBVCA strategically focuses its funding investments in a balanced manner, fostering outstanding existing programs, stimulating new activities, and encouraging partnerships. The MBVCA is committed to a careful, long-term plan for allocation of resources to build the uniqueness of Miami Beach as one of the world's greatest communities and tourism destinations. A budget revenue projection is provided to the MBVCA by the City of Miami Beach Budget Office annually based on 5% of the 2% Resort Tax, calculated on 96% of the collections. On an annual basis the MBVCA must provide the City with a budget, on City forms, based on this projection as outlined in Sec. 102-252, before October lSt. The MBVCA normally budgets funding below the City's projection, as the collection of funds can differ substantially from projection, such as the result of unanticipated problems like an airline strike, terrorism, economic issues or storms. When and if there are unallocated funds remaining at the end of the budget year, those funds are either rolled over and allocated in the next budget year, or retained in MBVCA's accounts for future reserves. (e.g. endowment funding, to address any funding reductions in future years) In 2001, by statute, the MBVCA began investing into the creation of an endowment fund. ANALYSIS The MBVCA is required by law to maintain reserve bank accounts in approved public depositories, Page 2 of 6 VCA Budgef FY 11/12 with sufficient reserves to cover two years of funding, which it does. Reserves are maintained to pay grant recipients (contracted) for the previous program funding cycle, and to ensure that sufficient funds can be invested to stimulate tourism in the future. The level of reserves was modified in 201 1 in order to maximize the value and impact of tourism directed funds. The MBVCA submits to the CMB an annual Program of Work as required by Sec. 102-281, and is audited annually by the City of Miami Beach as required in Sec. 102-281. MBVCA audits have been positive for the past 10 years. Tourism Advancement Program The MBVCA Tourism Advancement Program (TAP) was established to promote Miami Beach as a sophisticated tourist destination by increasing the number of visitors and through enhancement of visitors' experience, through the allocation of funds granted to events or programs that bring visitors to the CMB and strengthen the CMB brand. In fiscal year 201012011, the MBVCA funded TAP in nine categories, including: Cultural Tourism, Development Opportunities, Film Incentive, Initiatives, Major One Time Special Event, Special Events Recurring, Special Projects, Special Projects Recurring, and the Tourism Partnerships. And, in 2011, the MBVCA began new investments, utilizing funds rolled over from several years past. A total of $1,463,000 was awarded in FY 201012011, compared to $1,042,800 in FY 200912010. ' The increase in awards reflects an increase both in the number of applicants, income and the creation of a Film Incentive Grant in fiscal year 201012011. Grants funded in partnership with the CMB are critical, branded tourism-related programs, such as the South Beach Wine & Food Festival and Art Base1 Miami Beach, both examples of events whose beginning in Miami Beach stems from grants provided by the MBVCA-events that could be recruited by other destinations. The MBVCA strategically focuses funding to maximize tourism and brand, to improve Miami Beach by focusing on events and projects that generate significant publicity, strengthen brand and increase tourism (generating critical resort taxes for Miami Beach). The Board pays significant attention to marquee events. Review process: For the past decade, the MBVCA has used a multi-level review process for grant review; the process is reviewed annually. The process includes a mandatory pre-proposal staff conference regarding MBVCA policies and procedures and TAP. During the interview, MBVCA administration advises each potential applicant regarding eligibility and appropriateness of the proposed project and defines the grant category best suited to the potential grant. If eligible, the applicant will then meet with administration to discuss the process in further detail, including required attachments and meeting dates. All grant formats and policies are available on the MBVCA website. By Florida law, all MBVCA meetings are posted and are open to the public; all records are public records. Annually, the MBVCA reviews and refines grant guidelines with respect to efficacy and effectiveness. In FY 2010/2011, the MBVCA implemented several changes to the existing declining scale in the "Special Projects Recurring" and "Special Events Recurring" categories in order to better support and fund grant recipients, allowing for more competitive funding. After review in 201 1, it was determined that room nights are generated equally by non-profit and for-profit organizations. The MBVCA guidelines and application process place emphasis on defining and measuring the economic impact of each event, as well as considering the impact and value of marketing, publicity and television originationlviewership. Questions concerning the economic impact of the program, including requiring an explanation of various aspects of the marketing plan, and how the numbers of hotel room nights are calculated, are also included in the application, as are the event's or Page 3 of 6 VCA Budget FY 11/12 organization's name, publicity plan, community and residential involvement, or special residents' considerations. Standardized recap sheets have been developed to give each applicant a score that rates potential success. Using this tool, the MBVCA can better evaluate the recipient's long-term commitment to the community, commitment to brand enhancement, value to tourism, and economic impact. The application requires contract confirmation for hotel room blocks, letters of media confirmation andlor viewership contracts to be attached to the completed application; that data must be confirmed before and after funding is awarded. The MBVCA vote on each specific and individual grant, and evaluates the grant request, funds available and possible extenuating circumstances after a formal presentation by the grant applicant, a question and answer period and after further discussion. Recurring projects: The MBVCA also has a current policy in place to fund recurring projects on a declining scale, as necessary. The declining scale encourages recurring events to recruit corporate and private sponsorship and, therefore, not solely rely on MBVCA funds as a means of sustaining the event year after year. The award category establishes funding caps for recurring events, funding that can be reduced based on the maximum request for the specific grant category. This new scale, implemented in FY 201011 1, has a smaller annual percentage decrease. The following is the current declining scale: Categories: As previously noted, Tourism Advancement Program funds are awarded in nine categories, including: Cultural Tourism, Development Opportunities, Film Incentive, Initiatives, Major One Time Special Event, Special Events Recurring, Special Projects, Special Projects Recurring and Tourism Partnerships. The MBVCA has developed pre-eligibility criteria for grants for these categories. The criteria allow staff to determine eligibility and the appropriate grant category. Applicants must meet two of three of the criteria noted. Grant Category Cultural Tourism Development Opportunities Film Incentive* Initiatives** Major One Time Impressions 500,000 200,000 Hotel Room Nights 200 75 special Event Special Events Viewership 1,000,000 1,000,000 250 NIA 250 Recurring Special Projects Special Projects 250 Recurring Tourism Partnerships NIA NIA 500,000 2,500 2,500 NIA NIA 1,000,000 500,000 * Industry specific eligibility criteria in place for this program ** Initiatives are specifically targeted towards organizations chosen by the MBVCA to carry out the designated initiative 200 1,000,000 250,000,000 250,000,000 15,000,000 1 5,000,000 500,000 5,000 (visitorslattendeeslparticipants) Page 4 of 6 VCA Budget FY 11/12 Budget (TAP) FY 201 1/2012: The MBVCA has budgeted $1,627,650 for FY 201 11201 2 for its Tourism Advancement Program. This grant funding reflects an increase of $164,650, from FY 201012011. The MBVCA rolls over funds from the previous fiscal year to cover the increase in fund allocation. The Special Projects Recurring category is budgeted at $629,000. Anticipated applicants include Art Basel Miami Beach; Orange Bowl Marketing Campaign and its team hotels; South Beach Comedy Festival; ING Miami Marathon and Half Marathon and Tropical 5K; the South Beach Wine and Food Festival; the Miami lnternational Film Festival; and FUNKSHION Fashion Week Miami Beach. These events, recruited and sustained by the MBVCA, are all marquee events and annually fill the City's hotel rooms. The Major One Time Special Event Category was budgeted at $150,000 in FY 201 112012, which is the same level as FY 201012011, as the MBVCA expects the same number of new events to apply. The MBVCA works tirelessly to stimulate and recruit new events and is willing and prepared to fund valuable tourism and brand related events. In fact, the MBVCA works with all partners, city leadership and media to solicit appropriate new projects. New events are expected to include Miami Beach lnternational Bridal Week and the National Association of Television Program Executives (NATPE). The Special Events Recurring Category has been calculated at $575,400 for FY 201 112012 based on the established declining scale and on the number of applicants anticipated to return. The Tourism Partnerships Category is budgeted at $78,250, for FY 201 112012 currently including applicants at the maximum request cap of $30,000. Three applications are anticipated to be received. The Development Opportunities category is budgeted at $30,000 for FY 201 112012. The maximum award for one applicant is $30,000. Two applications are anticipated to be received. Examples include the Pan American lnternational Karate Tournament. The MBVCA has committed to invest in new events to be recruited in FY 201 112012. Destination Marketing The Destination Marketing allocation reflects a 17% increase from FY 201012011. This increase is due to the placing of stories on the PR Newswire. Research & Development The MBVCA will research major events to bring to the destination in FY 201 112012 and fund any additional requirement for event recruitment from this fund. New Initiatives The MBVCA expects to support new initiatives in FY 201112012 at the request of partners and community and industry leaders. Strategic plans, goals and initiatives are developed through consultation, the result of ongoing communications. Some of these initiatives include the enhancement of the SHOP Miami Beach Program; Art Deco exhibit in MIA; a new contest for Miami Beach students; and additional support for the Mayor's Blue Ribbon Task Force on Tourism initiatives; such as the efforts of the Lincoln Road Beautification Sub-committee. The MBVCA is also taking a leadership role in recruiting I encouraging events of mass appeal to take place in Miami Beach. Strategic goals and initiatives will be developed through consultation with partners and continued outreach. Page 5 of 6 VCA Budget FY 11/12 Public Relations Initiative Following a competitive Request for Proposals (RFP) search, the MBVCA selected Hill & Knowlton (H&K) as P.R. agency of record to enhance Miami Beach's image. H&K will support the MBVCA effort by increasing brand awareness through strategic media outreach to consumer and travel trades, major event recruitment, and business and corporate communications programs. H &K has an extensive presence in the US and internationally. The agency's ability to network and leverage its global relationships is crucial to the growth of brand 'Miami Beach.' The MBVCA will invest $250,000 in FY2011/2012 in this effort, and expects to do so for the next several years. However, the MBVCA is precluded by law from entering into multi-year contracts. Objectives include increased public relations or tourism related activities in CMB, recruitment on new events and meetings, improvement of CMB global reputation. CMB leaders have been active participants in planning and in oversight. Visual Memoirs Proiect The MBVCA issued an RFP for qualified entities to record, catalogue and warehouse personal and eyewitness accounts of the history of the City of Miami Beach. These deliverables are to include a recorded detailed history of Miami Beach through personal interviews, creating collateral materials about the history of Miami Beach and identifying comprehensive exhibit concepts that can be - implemented to execute a comprehensive visual memoir library and promotional campaign. Review of submissions will be completed in August 2011, and the award is expected before September 201 1. ITlAPl Development The MBVCA wishes to provide visitors with timely and relevant information about the City of Miami Beach, its public and private attractions, services, hotels, businesses, and events in order to enhance visitors (and residents) experience. Visitors to Miami Beach - all visitors worldwide - increasingly use technology to navigate cities or make decisions about leisure experiences, dining, parking, entertainment and travel in general. Worldwide, technology is king. Many visitors already use the Miami Beach Wi-Fi service to access the information they need at locations around town. Miami Beach visitors and residents are using smart phones and tablets to communicate and acquire information to make these kinds of decisions on-the-go. It is now critical for these visitors and residents to have access to mobile applications that can help them obtain the information they need to make a timely and informed decisions. The MBVCA believes that the development of multiple applications must be developed to answer the varied needs before and during a CMB visit; appropriately designed and crafted applications can and should positively impact residents' experiences, as well. Providing superior information-access experience will become a differentiating factor for our community. Visitors leave with the knowledge that CMB is au courant. The MBVCA is taking immediate action to create a platform for future IT development through a substantial financial investment. The MBVCA's preliminary review of opportunities and needs was initiated in spring 2011 in consultation with area experts, and subsequent to a public meeting sponsored by the MBVCA as a situational analysis. The MBVCA expects to release an RFP for this initiative in September 201 1 and will use unused funds from 201 1 to fund this effort. Proiected Cash Flow Reserve The MBVCA has budgeted $7,000 in the cash flow reserve for FY 2011/2012. The City of Miami Beach allots resort tax payments to the MBVCA a month after its collection. Therefore, as a fiscal responsibility, the MBVCA has built in a $7,000 projected cash flow reserve to its budget to ensure Page 6 of 6 VCA Budget FY 11/12 that all grants awarded will have the necessary funds to be reimbursed upon proper request and documentation. Fv 201 112012 Administration and Overhead The MBVCA's administrative and overhead costs are budgeted at $31 1,350 for the FY 201 112012. The administration and overhead allocation is an increase from FY 2010/2011, and is attributed to the hiring of a full-time clerk, necessary equipment purchases and upgrades, web and internet, increases in medical insurance and pension contribution. This figure is also inclusive of the maintenance of the office space and equipment. Fv 201 01201 1 Rollover A total of $200,000 will be rolled over from FY 2010/2011 into the FY 201 112012 MBVCA budget to fund special projects. This rollover of funds is primarily from the grants that were either not awarded and/or were rescinded for noncompliance. CONCLUSION It is recommended that the Mavor and Commission ado~t and amrove the proposed Miami Beach - - Visitor and Convention ~uthority Budget for FY 201 1/201'2 in the amount of $2,337,729, as reflected in Exhibit A. TMGENDA\201 ID-27-1 l\VCA Budget Memo.doc MIAMI BEACH VISITOR AND CONVENTION AUTHORIW FY 2011/2012 APPROVED BUDGET PROPOSED BUDGET FY 2010.2011 FY 2011.2012 VARIANCE $ 320,000 25,000 218,218 $ 563,218 50,000 9,350 4,849 $ 64,199 15,650 (90,000) 119,400 (18,000) (5,000) 142,600 $ 164,650 250,000 50,000 20,000 $ 320,000 6,640 2,729 5,000 $ 14,369 $ 563,218 REVENUES Unrestricted (2 year planned expenditure) Rollover Projected Resort Tax TOTAL REVENUES EXPENDITURES Administration & Benefits Operating Expenses Capital Total Administration GRANTS -Tourism Advancement Program Tourism Partnerships Cultural Tourism Major One Time Special Event Special Events Recurring Development Opportunities Special Projects Special Projects Recurring Film Incentive Total Tourism Adv. Program Reinvestment plan over 2 years Marketing/Communications and PR RFP IT Development Visual Memoirs Project RFP Total Other Destination Marketing R&D Initiatives Projected Cash Flow Reserve Total Other TOTAL $ 175,000 1,599,511 1,774,511 $ 200,000 45,000 2,151 $ 247,151.00 $ 62,600 30,000 240,000 456,000 48,000 80,000 486,400 60,000 $ 1,463,000 $ $ 33,360 5,000 24,000 2,000 $ 64,360 $ 1,774,511 $ 320,000 200,000 1,817,729 $ 2,337,729 $ 250,000 54,350 7,000 $ 311,350 $ 78,250 30,000 150,000 575,400 30,000 75,000 629,000 60,000 $ 1,627,650 $ 250,000 50,000 20,000 $ 320,000.00 40,000 7,729 24,000 7,000 $ 78,729 $ 2,337,729 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MlAMl BEACH, FLORIDA, ADOPTING AND APPROVING THE MlAMl BEACH VISITOR AND CONVENTION AUTHORITY (MBVCA) FY 2011/2012 BUDGET, IN THE AMOUNT OF $2,337,729. WHEREAS, the Miami Beach Visitor and Convention Authority (MBVCA) was created pursuant to Chapter 67-930 of the Laws of Florida, and Sections 102-246 through 102-254 of the City of Miami Beach Code; and WHEREAS, the MBVCA's mission is to support, maintain and develop quality programs, which generate, satisfy and enhance the year-round tourist attractiveness of Miami Beach; and WHEREAS, the MBVCA strategically focuses its funding investments in a balanced manner, fostering outstanding existing programs, stimulating new activities, and encouraging partnerships; and WHEREAS, the MBVCA is committed to a careful, long-term plan for allocation of resources to build the uniqueness of Miami Beach as one of the world's greatest communities and tourist destinations; and WHEREAS, pursuant to its enabling legislation, the MBVCA's budget for each FY shall be approved by the Mayor and Commission; and WHEREAS, accordingly, the MBVCA recommends approval of the proposed budget for FY 201 112012, in the amount of $2,337,729, to continue implementation of its programs. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MlAMl BEACH, FLORIDA, that the Mayor and City Commission adopt the Miami Beach Visitor and Convention Authority's FY 2011/2012 budget, in the amount of $2,337,729. PASSED AND ADOPTED THIS DAY OF , 201 1 ATTEST: CITY CLERK MAYOR APPROVE0 AS TO FORM & LANGUAGE aFOREXEWTK)N THIS PAGE INTENTIONALLY LEFT BLANK COMMISSION ITEM SUMMARY Condensed Title: A Resolution approving the allocation of $623,391 from FY 201011 1 and FY 11112 General Fund account 01 1.0930 to the Friends of the Bass Museum for the purpose of funding operating expenses at the Museum through September 30, 2012; and further authorizing the City Manager to execute a Letter Agreement with the Friends of the Bass Museum in the amount of $623,391. Key Intended Outcome Supported: I increase community rating of cultural activities. Supporting Data (Surveys, Environmental Scan, etc.): I The 2009 Community Satisfaction Survey shows that 73.3 % of residents and 58.7 % of businesses feel the City has I the "right amount" of cultural events available. The same survey shows that residents attend museums on average 6.85 times per year. However, 29.3% of residents also feel the City has "too few" museums. Issue: Should the City Commission adopt the resolution? I Item SummarylRecommendation: The Bass Museum was established from its inception as a strong publiclprivate partnership through a contractual agreement entered into 45 years ago when the City accepted the gift of the art collection of John and Johanna Bass. This agreement stipulates that the City will maintain the collection in perpetuity, keep it open to the public, and provide basic funding for the maintenance and exhibition of the collection. The agreement further stipulates that the Bass Museum, as an operating entity, should be overseen by a Board of Trustees. In addition to the City and the Board of Trustees, a third entity has existed to promote and further the mission of the Bass Museum of Art: The Friends of the Bass Museum, Inc. At the June 3, 2009, City Commission Meeting, Resolution No. 2009-27089 was approved, which authorized the transfer of $137,000 to the Friends of the Bass Museum. Transferring the budget allocations for certain line items began the process of transitioning much of the day-to-day administration and oversight of the Museum to the Friends pending a larger re-vamp of the governing structure of the Museum. This concept was also discussed at the May 5, 2009 Finance and Citywide Projects Committee. The Finance Committee approved the transfer of those operating line item balances and recommended that the Administration come back, as part of the City budget process, for any future allocations. Accordingly, at the September 24, 2009 City Commission Meeting, Resolution No. 2009-27216 was approved, authorizing the transfer of $512,000 to the Friends of the Bass Museum, to fund certain operating expenses for Fiscal Year 2009-10. On March 10,2010, the City Commission adopted Resolution No. 201 0-27349 amending the agreement between the City and Dennis Richard. The City is now finalizing a separate management agreement with the Bass Museum, Inc., the new entity that will assume the day-to-day management and operation of the Museum on behalf of the City. However, there are still some outstanding items that need to be finalized. Therefore, similar to the September 2010 action, the Administration is seeking authorization to allocate $623,391 to the Friends of the Bass for salary expenses related to the Museum's Assistant Director, curatorial services, security guard, office associate IV and a building supervisor, as well as other operating expenses. In an effort to ease the future privatization of the Bass Museum, recently-vacated City positions have been filled as employees of the Bass Museum (non-profit entity). As previously stated, the objective is to transition all Bass Museum positions to the Bass over time, which will allow for significant savings to the City in salaries and benefits. In FY 1011 1, another vacant position (Office Associate IV) was not filled by the City and the Bass Museum has assumed the responsibility for this position. Of the eight (8) City funded Bass Museum positions, three (3) are currently City employees. The remaining five (5) positions have been filled as em~lovees of the Friends of the Bass Museum and the City has transferred the funding for these positions to the Bass I ~useum. I Advisory Board Recommendation: ( The Finance and Citywide Projects Committee endorsed this concept at the May 5, 2009 meeting. Financial Information: I I Source of Amount Account Approved Funds: 1 1 $581.391 FY 201 111 2 General Fund 01 1.0930 2 $42,000 FY 201 011 1 General Fund 01 1.0930.000502 Total $623,391 I Financial Impact Summary: I City Clerk's Office Legislative Tracking: 1 Max Sklar, ext. 61 16 T:~ENDA\2011\9-14-1 I\Bass Budget Summ.doc MIAMIBEACH 201 C/ AGENDA ITEM DatE .-2%E!I City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bowerand Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 27, 201 1 SUBJECT A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, APPROVING AN ALLOCATION, IN THE AMOUNT OF $623,391, FROM FY 2010/11 AND FY 11/12 GENERAL FUND ACCOUNT NO. 01 1.0930; SAID ALLOCATION TO BE PROVIDED AND UTILIZED BY THE FRIENDS OF THE BASS MUSEUM, INC., FOR THE PURPOSE OF CONTINUING TO FUND AND PROVIDE CERTAIN OPERATING EXPENSES AT THE BASS MUSEUM OF ART, THROUGH SEPTEMBER 30, 2012; AND FURTHER AUTHORIZING THE ClTY MANAGERTO EXECUTE A NEW LETTER AGREEMENT WlTH THE FRIENDS OF THE BASS MUSEUM, INC. MEMORlALlZlNGTHE PARTIES' RESPECTIVE OBLIGATIONS WlTH REGARD TO CERTAIN MANAGEMENTAND OPERATION RESPONSIBILITIES OF THE BASS MUSEUM THROUGH SEPTEMBER 30,2012 ADMINISTRATION RECOMMENDATION Adopt the Resolution. FUNDING Funding is available in theFY 201011 1 and FY 11112General Fund, Bass Museum of Art Budget. BACKGROUND The Bass Museum was established from its inception as a strong publiclprivate partnership through a contractual agreement entered into 45 years ago when the City accepted the gift of the art collection of John and Johanna Bass. This agreement stipulates that the City will "maintain the collection in perpetui ty...p rovidefor the exhibition of the collection, keep it open and available to the public," and provide basic funding for the maintenance and exhibition of the collection. The City fulfills this obligation by funding the operational elements of the Museum, and maintaining the building, which is a City asset. The agreement further stipulated that the Bass Museum, as an operating entity, should be overseen by a Board of Trustees with responsibility for Museum policies and procedures, as well as day-to-day management through the staff it employed. The Museum's Executive DirectorlChief Curator, for example, is a City employee with full benefits, but is hired by, and answers to, the Board of Trustees. In addition to the City and the Board of Trustees, a third entity has existed to promote and further the mission of the Bass Museum of Art: The Friends of the Bass Museum, Inc. This private and separate 501 (c)3 organization was established in1 978 as the membership and fundraising arm of the Museum. The President of the Friends chairs the Board of Trustees. The Friends' Board of Directors serves as advisory to the Trustees, advocates and raises funds for the Museum, and sponsors Museum programs, which include all special exhibitionsand educationalprograms. The Museum's membership, education, development and marketing efforts are realized by employees of the Friends of the Bass Museum. Thus the current Museum staff consists of City employees (both classified and unclassified) and Friends employees, with substantial differences in benefits and pay scales. Bass Museum of Art FY 201/12 Budget Allocation September 27, 201 1 Page 2 of 3 ANALYSIS To remedy this situation, the Administration began working with the Museum's staff and Boards to streamline the current governance model and to standardize employment practices. The need for a modification of the Museum's governance structure was also identified through a Strategic Planning Process and Peer Review. While the City remains fully committed to the Bass Museum and its success, both the Administration and the Museum felt that the City can continue to fulfill its contractual obligations without having actual City employees working at the Museum, while funding for the Museum may be better allocated if the Museum is able to function independent of certain City processes and contracts. To this end, two recently-vacated City positions at the Bass, the Assistant Director and Curator, have been filled as employeesof the Friends. The objective is to transition all Bass Museum positions to the Friends of the Bass over time, which will allowfor significant savings to the City in salaries and benefits (especially pension). Additional savings in certain operational line items have also been identified. At the June 3, 2009, City Commission Meeting, Resolution No. 200427089 was approved, which authorized the transfer of $1 37,000 to the Friends of the Bass Museum. In addition to providing them with - . direct oversight and management of these operational issues, this also allows the Friends to pursue potential savings by using non-City contracts for services such as carpet cleaning or for the purchase of office supplies, for example. This action also began the process of transitioning much of the day-to-day administration and oversight to the Friends. This is an important step in moving towards increased simplification of the Museum's governancestructure, which has been considered essential for the future well-being of the institution and was included in the Museum's own five-year strategic plan, completed in March 2007. This concept was also discussed at the May 5, 2009 Finance and Citywide Projects Committee. The Finance Committee approved the transfer of those operating line item balances and recommended that the Administration come back, as part of the City budget process, for any future allocations. Accordingly, at the September 24,2009 City Commission Meeting, Resolution No. 2009- 27216 was approved, authorizing the transfer of $512,000 to theFriends of the Bass Museum, to fund certain operating expenses for Fiscal Year 200910. Concurrent with the above, in August 2009, the Administration, the testamentary representative of the Bass Family, and representatives of the Friends, commenced discussions to begin the process of developing a new governance model for the Museum, which includes an overhaul of the existing by-laws of the Friends, culminating in reconstituting that 501 (C)3 as the Bass Museum of Art, Inc. (which entity will replace the Friends as the new governing entity for the Museum). Additionally, on March 10,201 0, the City Commission adopted Resolution No. 201 0-27349 amending the agreement between the City and Dennis Alan Richard (as Successor in Interest to John and Johanna Bass). This new Agreement, among otherthings, replaced both the existing Bass Board of Trustees and the Friends of the Bass Museum, Inc., with the Bass Museum of Art, Inc., a 501 (c)3, composed of actual stakeholders (as opposed to the current Board of Trustees, who maintain their seats by virtue of their contractually designated positions under the 1963 Agreement). The City Manager retained membership on the new governing board, with voting power equivalent to 20% of the membership of the Board, comparable to the City Manager's representation on the current Board of Trustees. The day-to-day responsibility to ensure the City's contractual obligations to maintain the Collection would be handled by this new governing body through a separate management agreement with the City. The City is in the process of developing a separate management agreement with the Bass Museum, Inc. However, there are still some outstanding items that need to be negotiated. Therefore, similar Bass Museum of Art FY 201M2 Budget Allocation September 27, 201 1 Page 3 of 3 to the September 2009 and 201 0 action, the Administration is seeking authorizationto allocate $623,391 to the Friends of the Bass for salary expenses related to the Museum's Assistant Director, curatorial services, security guard, Office Associate IV and a building supervisor. In an effort to ease the future privatization of the Bass Museum, recently-vacated City positions have been filled as employees of the Bass Museum (non-profit entity). As previously stated, the objective is to transition all Bass Museum positions to the Bass over time, which will allow for significant savings to the City in salaries and benefits. In FY 1011 1, anothervacant position (Office Associate IV) was not filled by the City and the Bass Museum has assumed the responsibilityfor this position. Of the eight (8) City funded Bass Museum positions, three (3) are currently City employees. The remaining five (5) positions have been filled as employees of the Friends of the Bass Museum, and the City has transferred the funding for these positions to the Bass Museum. Additionally, the Administration recommends transferring fundsfor operating expenses as approved in 2010. The allocation is broken out as follows: Salaries: $236,664 Professional Services: $ 93,343 Electricity: $1 08,000 Sanitation: $ 900 RenUBuilding/Equipment (art storage): $113,184 Contract Maintenance: $ 8,800 Office Supplies: $ 7,000 Repairs and Maintenance: $ 1,000 Other Operating Expenses $ 10,000 Dues: $ 2,500 Janitorial Services (Carrvover from FY 11) $ 42,000 TOTAL $623,391 Similar to the previous allocation, the Administration also recommends entering into a letter agreement with the Friends delineaf ng the responsibilities the Friendswould be required to meet in exchange for the funding. These obligationswould be very similar to functions currently carried out jointly between the City and Friends. CONCLUSION The Administration recommends approving the transfer of currently-budgeted operating funds from the City to Friends of the Bass Museum, Inc. T:\AGENDA\2011\9-14-1 I\Bass Budget Merno.doc RESOLUTION NO. A RESOLUTION OF THE MAYOR AND THE ClTY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AN ALLOCATION, IN THE AMOUNT OF $623,391, FROM FY 201011 1 AND FY 11112 GENERAL FUND ACCOUNT NO. 011.0930; SAID ALLOCATION TO BE PROVIDED AND UTILIZED BY THE FRIENDS OF THE BASS MUSEUM, INC., FOR THE PURPOSE OF CONTINUING TO FUND AND PROVIDE CERTAIN OPERATING EXPENSES AT THE BASS MUSEUM OF ART, THROUGH SEPTEMBER 30, 2012; AND FURTHER AUTHORIZING THE ClTY MANAGER TO EXECUTE A NEW LETTER AGREEMENT WlTH THE FRIENDS OF THE BASS MUSEUM, INC. MEMORIALIZING THE PARTIES' RESPECTIVE OBLIGATIONS WlTH REGARD TO CERTAIN MANAGEMENT AND OPERATION RESPONSIBILITIES OF THE BASS MUSEUM THROUGH SEPTEMBER 30,2012. WHEREAS, the Bass Museum (Museum) was established from its inception as a strong publiclprivate partnership through a contractual agreement entered into in 1963 between the City and John and Johanna Bass, whereby the City accepted the gift of the art collection of John and Johanna Bass (the Bass Collection), in exchange for making the Bass Collection open and available to the public in a building maintained by the City (the 1963 Agreement and all subsequent amendments thereto is hereinafter referred to as the "1 963 Bass Agreement"); and WHEREAS, the 1963 Bass Agreement, requires the City to maintain the Bass Collection in perpetuity; provide for the exhibition of the Collection; keep it open and available to the public; and provide basic funding for the maintenance and exhibition of the Collection; and WHEREAS, the City fulfills this obligation by funding the operational elements of the Bass Museum and maintaining the building, which is a City asset; and WHEREAS, the 1963 Bass Agreement further stipulates that the Bass Museum shall be overseen by a Board of Trustees, who has the responsibility for Museum policies and procedures, as well as day-to-day management through the staff it employs; and WHEREAS, a third entity exists to promote and further the mission of the Bass Museum, the Friends of the Bass Museum, Inc., which is a 501(c)3 was established in 1978 as the membership and fundraising arm of the Museum; and WHEREAS, since 2008, the Administration has been working closely with the Bass Board of Trustees (Bass Board) and the Friends of Bass Museum, Inc.(Friends) to streamline the current governance model, standardize employment practices, and empower the Museum to fully realize its potential as the City's prominent art institution; and WHEREAS, during this time, the City approved Resolution Nos. 2009-27089 and 2009-27216, and corresponding Letter Agreements, whereby the City agreed to appropriate and transfer budgeted operating funds for the Museum, in consideration of the FriendsJ agreement to undertake certain management and operational responsibility (on behalf of the City) for the Museum; and WHEREAS, on March 10, 201 0, the City Commission adopted Resolution No. 2010-27349 which approved an Amended and Restated Bass Museum Agreement between the City and Dennis Alan Richard (as successor in interest to John and Johanna Bass); the Amended and Restated Agreement was intended to replace and supersede the 1963 Bass Agreement; and WHEREAS, the City and Friends have agreed to execute another Letter Agreement for Fiscal Year (FY) 201 011 1, whereby the Friends will to continue to provide certain oversight and management responsibilities relative to the Bass Museum, through FY 201011 1; the Letter Agreement is attached and incorporated as Exhibit "A hereto. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH FLORIDA that the Mayor and City Commission hereby appropriate $623,391, from FY 201011 1 General Fund Account No. 01 1.0930; said appropriation to be provided to and utilized by the Friends of the Bass Museum, Inc., for the purpose of continuing to provide certain services for the management and operation of the Bass Museum of Art for Fiscal Year (FY) 201 1-12; and further authorizing the City Manager to execute a new Letter Agreement with the Friends of the Bass Museum, Inc. memorializing the partiesJ respective obligations with regard to the aforestated management and operation of the Bass Museum. PASSED and ADOPTED this 27th day of September, 201 1. MAYOR ATTESTED BY: CITY CLERK T:WGENDA\2011\9-14-1 I\Bass Museum Reso.doc.RTF APPROVED AS TO FORM & LANGUAGE - & FOR EXECUTION MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov OFFICE OF THE CITY MANAGER Tel: 305.673.7010. Fax: 305.673.7782 September 30,201 1 George Lindemann, President Friends of the Bass Museum, Inc., and The Bass Museum of Art, Chairperson 21 21 Park Avenue Miami Beach, Florida 33139 Re: Interim Agreement between the City of Miami Beach, Florida (City) and the Friends of the Bass Museum, Inc. (Friends) for the Continued Management and Operation of the Bass Museum of Art from October I, 2011 to September 30,201 2 Dear Mr. Lindemann: The foregoing Letter Agreement shall confirm the understanding between the City and the Friends, with regard to the Friends' continuing to provide certain management and operational responsibilities at the Bass Museum of Art, located at 2121 Park Avenue, Miami Beach, Florida (hereinafter the Bass Museum or the Museum), for a term commencing on October 1, 2011 (Commencement Date), and terminating on September 30,2012 (the Term). Throughout the Term, the Friends agree to provide the following services in support of the ongoing management and operation of the Bass Museum (hereinafter, such services are collectively referred to as the Services): Administer, operate, and maintain the John and Johanna Bass Collection (the Collection), as contemplated pursuant to the terms and conditions of that certain agreement between the City and John and Johanna Bass, dated July 8, 1963, as amended and restated on March 10, 2010, and approval pursuant to the July 8, 1963 agreement between the City and John and Johanna Bass, and the March 10, 2010 amended and restated agreement between the City and Dennis Alan Richard (as Successor in Interest to John and Johanna Bass, as well as any amendments thereto, is hereinafter referred to as the Bass Agreement).. Develop and implement exhibitions, programs, and activities which support and promote the goals and priorities agreed upon by the City and the Friends (including, without limitation, those which are consistent with and continue to further the purposes set forth in the Bass Agreement). Provide certain day-to-day administrative services in support of the Collection, as well as any and all other art work(s) in the Museum, and the aforestated activities, to ensure that the Museum continues to be operated, managed, and maintained in a first-class manner, consistent with similar world-class public museums of comparable size and budget to the Bass Museum and including, without limitation, acquisition of services, equipment, and supplies; day-to-day housekeeping and maintenance; record-keeping; collections and billings; and similar services. The Friends represents to City that, prior to the commencement of the Term, its authorized representatives have inspected the Bass Museum building; accordingly, the Friends hereby accept the facility 'AS IS, WHERE IS, AND WITH ALL FAULTS" existing as of the Commencement Date. In the event that any claim or controversy arises with respect to the Agreement, the Friends and the City hereby knowingly and voluntarily waive their rights to assert any argument or defense alleging inadequate or insufficient consideration. Attached as Exhibit "A hereto is the Museum's Operating Budget for the Term (the Operating Budget or Budget), which the City and Friends have mutually reviewed and approved. The City and Friends hereby agree and acknowledge that said Budget is adequate for the provision of the Services. The Friends shall not exceed the Operating Budget, which has been established at $623,391. The Friends shall use best efforts to undertake, deliver and perform the Services, in accordance with, and in the amount provided by, the Operating Budget. The Friends agree to notify the City Manager within ten (10) days of any significant change or variance in the bottom line numbers in the Operating Budget, and any material increase in any identified cost(s) andlor expense(s) from thatlthose provided for in the Operating Budget. Notwithstanding the preceding, or anything contained in this Agreement, the Friends shall not exceed, commit, or contract to expend any sum in excess of the aggregate amount allowed in the Operating Budget without first obtaining the prior written consent of the City Manager, which consent, if granted at all, shall be in the Manager's sole and reasonable judgment and discretion. The Friends shall pay all items of expense related to the Services (and subject to the amount indicated in the approved Operating Budget) from JP Morgan (General Operating Account) #849186630. In addition to payment of any operating expenses related to the provision of the Services, any and all revenues generated by the Friends' (pursuant to the duties set forth herein) shall also be deposited into this account. Deposits andlor withdrawals must prepared by the Assistant Director and confirmed by the Executive Director. All checks exceeding five thousand dollars ($5,000) require two signatures. Authorized signatories on the account are as follows: * Executive Director; President of the Board; Vice-President of the Board; Secretary of the Board. The Friends agree to keep and maintain an office in the Museum devoted exclusively to its performancelprovision of the Services. The Friends shall keep and maintain all records related to, and in support of, the Services at such office. Any financial records shall be maintained in accordance with generally accepted accounting principles. The City Manager or his authorized designees shall have the right, at any time during the Term, to audit and inspect any and all Friends' records, upon reasonable written or verbal notice to the Friends, and during the Museum's normal hours of operation. The City and the Friends shall each appoint a contract administrator who shall monitor the parties' compliance with the terms of this Agreement and, in the case of the Friends, who shall serve as the point person for the City with regard to the Services. Unless otherwise notified, the contract administrators for each party are as follows: For the City: Gary Farmer, Cultural Affairs Program Manager Tourism and Cultural Development Department City of Miami Beach 1755 Meridian Avenue Miami Beach, Florida 331 39 305-673-7577 For the Friends: Silvia Karman Cubina Executive DirectorIChief Curator Friends of the Bass Museum 2121 Park Avenue Miami Beach, Florida 33139 305-673-7530 The Friends agree to defend, indemnify and hold harmless the City, and its officials, directors, officers, employees, agents, contractors, servants, successors and assigns against any claims, causes of actions, costs, expenses, (including reasonable attorney's fees) liabilities, or damages arising out of or in connection with any negligent act or omission, or intentional misconduct on the part of the Friends or any of its officials, directors, officers, employees, agents, contractors, servants, successors and assigns, in the performance of its obligations under this Agreement andlor from the Services. Additionally, and notwithstanding the indemnificationlhold harmless obligations in the preceding paragraph, or any other term or condition of this Agreement, the Friends shall defend, indemnify and hold harmless the City, its officials, directors, officers, employees, agents, contractors, servants, successors and assigns, against any claims, causes of actions, costs, expenses (including reasonable attorney's fees), liabilities, or damages arising out of or in connection with any claim, controversy or cause of action brought against the City of Miami Beach (and including its officers, employees, agents, and contractors) alleging any breach by the City of the Bass Agreement as a result of the execution of this letter agreement between the City and Friends. The indemnification and hold harmless requirements in the two preceding paragraphs shall survive the termination or expiration of this Agreement. Notwithstanding this indemnification, and as a further condition, the Friends shall, at its sole cost and expense, maintain in full force and effect throughout the Term of the Agreement following insurance: Commercial General Liability Insurance, on an occurrence form, in the amount of Two Million ($2,000,000) Dollars, per occurrence, for bodily injury, death, property damage, and personal injury. This policy must name the City of Miami Beach, Florida, as additional insured. Workers' Compensation and Employers' Liability coverage, in accordance with Florida statutory requirements. All-Risks property and casualty insurance, written at a minimum of 80% of replacement cost value and with replacement cost endorsement, covering all of Friends' personal property in the Museum and all improvements installed in the Museum by or on behalf of the Friends. The Friends shall provide proof of the aforestated coverages to the City Manager, within thirty (30) days of execution of this Letter Agreement. It is understood and agreed that any coverage provided by the Friends is primary to any insurance or self-insurance program the City has for the Museum, and that there shall be no right of recovery or subrogation against the City. All policies must be issued by companies authorized to do business in the State of Florida and assigned a rating of B+VI or better, per Best's Key Rating Guide, latest edition. This Letter Agreement may be terminated by the City Manager, for cause, in the event of a breach by the Friends' of any term(s) and/or condition(s) set forth herein and the Friends' failure to satisfactorily cure same within seven (7) days of written notice of such breach by the City Manager or his designee; or by either party, for convenience (and without cause), upon fifteen (15) days prior written notice to the other party. All written notices and communications required or permitted hereunder may be delivered personally to the representatives of the Friends and the City listed below or may be mailed by registered mail, postage prepaid (or airmailed if addressed to an address outside of the city of dispatch). Until changed by notice in writing, all such notices and communications shall be addressed as follows: TO FRIENDS: Friends of the Bass Museum, Inc. Attn: George Lindemann President 21 21 Park Avenue Miami Beach, Florida 33139 (305) 673-7530 City of Miami Beach Attn: Max Sklar Cultural Arts & Tourism Dev. Director 1700 Convention Center Drive Miami Beach, Florida 331 39 (305) 673-7000, Ext. 61 16 Notices hereunder shall be effective: If delivered personally, on delivery; if mailed to an address in the city of dispatch, on the day following the date mailed; and if mailed to an address outside the city of dispatch on the seventh day following the date mailed. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in state court, and the U.S. District Court, Southern District of Florida, if in federal court. BY ENTERING INTO THlS AGREEMENT, CITY AND FRIENDS EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THlS AGREEMENT. The Friends hereby represents, warrants and covenants to the City: (i) that it has the full legal right, power and authority to enter into this Agreement and to grant the rights and perform the obligations herein, and that no third party consent or approval is required to grant such rights or perform such obligations hereunder; (ii) that this Agreement has been duly executed and delivered by the President of the Friends, and attested to by the Secretary, and constitutes a valid and binding obligation of the Friends, enforceable in accordance with its terms; and (iii) that the Friends will comply with all laws applicable to its management of the Museum, as set forth in this Agreement; provided that the Friends will not be required to undertake any compliance activity, or have any liability under this Agreement, if such activity requires any capital expenditure beyond the approved Operating Budget. Neither party may assign this Agreement. Neither this Agreement, nor any of its terms, may be changed, modified, waived, or terminated except by an instrument in writing, signed by an authorized representative, which shall be the City Manager (on behalf of the City), and the President of the Friends (on behalf of the Friends). The City and Friends acknowledge and agree that they are not joint venturers, partners, or joint owners with respect of the Bass Museum and/or with respect to this Agreement and/or the Services. Nothing contained in this Agreement shall be construed as creating a partnership, joint venture or similar relationship between the City and the Friends. Any employees at the Bass Museum who are City of Miami Beach employees shall continue to remain City employees throughout the Term (unless otherwise terminated by the City), and shall remain under the supervision, direction and control of the City. Additionally, for purposes of this Agreement (or otherwise) no officer, director, employee, agent, or contractor of the Friends shall be deemed to be an agent or employee of the City, and shall not attain any rights or benefits under the Civil Service or Pension Ordinance of the City, or any right generally afforded Classified or Unclassified employees' or be deemed entitled to Florida Worker's Compensation benefits as an employee of the City, or accumulation of sick or annual leave. (THE BALANCE OF THIS PAGE LEFT INTENTIONALLY BLANK) Attest: CITY OF MIAMI BEACH, FLORIDA Jorge M. Gonzalez, City Manager Date FRIENDS OF THE BASS MUSEUM, INC. Secretary George Lindemann, President Date T:\AGENDA\2011\9-27-1 I\Bass Letter Agreement -sept 201 1 .doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION THIS PAGE INTENTIONALLY LEFT BLANK COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA AUTHORIZING THE ISSUANCE OF (i) NOT TO EXCEEQ $54,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF CITY OF MIAMI BEACH, FLORIDA STORMWATER REVENUE BONDS, SERIES 2011A, FOR THE PRINCIPAL PURPOSE OF PAYING THE COST OF CERTAIN IMPROVEMENTS TO THE STORMWATER UTILITY, PURSUANT TO SECTION 209 OF RESOLUTION NO. 2000- 24127 ADOPTED BY THE ClTY ON OCTOBER 18,2000, AND (ii) NOT TO EXCEED $28,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF ClTY OF MIAMI BEACH, FLORIDA STORMWATER REVENUE REFUNDING BONDS, SERIES 20118, FOR THE PRINCIPAL PURPOSE OF REFUNDING ALL OR A PORTION OF THE CITY'S OUTSTANDING STORMWATER REVENUE BONDS, SERIES 2000, PURSUANT TO SECTION 210 OF SAlD RESOLUTION NO. 2000-24127; PROVIDING THAT SAlD SERIES 2011 BONDS AND INTEREST THEREON SHALL BE PAYABLE SOLELY AS PROVIDED IN SAlD RESOLUTION NO. 2000-24127; PROVIDING CERTAIN DETAILS OF THE SERIES 2011 BONDS; DELEGATING OTHER DETAILS AND MATTERS IN CONNECTION WlTH THE ISSUANCE OF THE SERIES 2011 BONDS AND THE REFUNDING OF THE BONDS TO BE REFUNDED TO THE MAYOR, WITHIN THE LIMITATIONS AND RESTRICTIONS STATED HEREIN; APPOINTING UNDERWRITERS, A BOND REGISTRAR, AN ESCROW AGENT AND A DISCLOSURE DISSEMINATION AGENT; AUTHORIZING THE NEGOTIATED SALE OF THE SERIES 2011 BONDS AND APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT; AUTHORIZING AND DIRECTING THE BOND REGISTRAR TO AUTHENTICATE AND DELIVER THE SERIES 2011 BONDS; APPROVING THE FORM OF AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION OF THE OFFICIAL STATEMENT; PROVIDING FOR THE APPLICATION OF THE PROCEEDS OF THE SERIES 2011 BONDS AND CREATING CERTAIN FUNDS, ACCOUNTS AND SUBACCOUNTS; AUTHORIZING A BOOK-ENTRY REGISTRATION SYSTEM WlTH RESPECT TO THE SERIES 2011 BONDS; AUTHORIZING THE REFUNDING, DEFEASANCE AND REDEMPTION OF THE BONDS TO BE REFUNDED AND APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT; COVENANTING TO PROVIDE CONTINUING DISCLOSURE IN CONNECTION WlTH THE SERIES 2011 BONDS AND APROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE AGREEMENT; AUTHORIZING OFFICERS AND EMPLOYEES OF THE CITY TO TAKE ALL NECESSARY RELATED ACTIONS; AND PROVIDING FOR AN EFFECTIVE DATE. Key Intended Outcome Supported: 1 Ensure well-maintained infrastructure. Supporting Data (Surveys, Environmental Scan, etc.): According to the 2009 Community Satisfaction Survey, only 43% of residents rated the City's storm drainage (to avoid flooding) as "excellent" or "good." Issue: Should the City Commission approve the resolution and set the second public hearing? I Item SummarylRecommendation: FIRST READING PUBLIC HEARING The Administration anticipates that it can obtain debt service savings as well as provide additional flexibility in the issuance of bonds by refunding the Stormwater Revenue Bonds, Series 2000 (the "Prior Bonds") of which $27,105,000 is currently outstanding. The City's Financial Advisor, Richard Montalbano, Managing Director, RBC Capital Markets Corporation, estimated that given the current market conditions, the City could expect to achieve a net present value savings approximating 11 % of the refunded bonds which equates to approximately $3 million. This refunding will be achieved by the issuance of the Series 201 1 B Bonds. The Series 201 1A Bonds are being issued, in part, for the purpose of paying the costs of the Project which will constitute a part of the City's Stormwater System. The Project consists of the following: Neighborhood stormwater improvements, drainage improvements, outfall pipes replacementslrepairs, and pump stations installations, improvements and repairs. The Series 201 1 Bonds are payable from and secured by a first lien on and a pledge of the net revenues derived from the operation of the Stormwater System of the City on a parity with any additional bonds hereafter issued. Advisory Board Recommendation: ( Finance and Citywide Projects Committee September 1, 201 1 Financial Information: w AGENDA ITEM JXL!L DATE 9-n-U Source of Funds: OBPl Total Approved Amount Account To be appropriated from the Stormwater Revenues MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the ity Commission P FROM: Jorge M. Gonzalez, City Manager q-DIRsT READING DATE: September 27, 201 1 U PUBLIC HEARING SUBJECT. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA AUTHORIZING THE ISSUANCE OF (i) NOT TO EXCEED $54,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF ClTY OF MIAMI BEACH, FLORIDA STORMWATER REVENUE BONDS, SERIES 2011A, FOR THE PRINCIPAL PURPOSE OF PAYING THE COST OF CERTAIN IMPROVEMENTS TO THE STORMWATER UTILITY, PURSUANT TO SECTION 209 OF RESOLUTION NO. 2000-24127 ADOPTED BY THE ClTY ON OCTOBER 18, 2000, AND (ii) NOT TO EXCEED $28,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF ClTY OF MIAMI BEACH, FLORIDA STORMWATER REVENUE REFUNDING BONDS, SERIES 2011B, FOR THE PRINCIPAL PURPOSE OF REFUNDING ALL OR A PORTION OF THE CITY'S OUTSTANDING STORMWATER REVENUE BONDS, SERIES 2000, PURSUANT TO SECTION 210 OF SAlD RESOLUTION NO. 2000-24127; PROVIDING THAT SAlD SERIES 2011 BONDS AND INTEREST THEREON SHALL BE PAYABLE SOLELY AS PROVIDED IN SAlD RESOLUTION NO. 2000- 24127; PROVIDING CERTAIN DETAILS OF THE SERIES 2011 BONDS; DELEGATING OTHER DETAILS AND MATTERS IN CONNECTION WlTH THE ISSUANCE OF THE SERIES 2011 BONDS ANDTHEREFUNDINGOFTHEBONDSTOBEREFUNDEDTOTHE MAYOR, WITHIN THE LIMITATIONS AND RESTRICTIONS STATED HEREIN; APPOINTING UNDERWRITERS, A BOND REGISTRAR, AN ESCROW AGENT AND A DISCLOSURE DISSEMINATION AGENT; AUTHORIZING THE NEGOTIATED SALE OF THE SERIES 2011 BONDS AND APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT; AUTHORIZING AND DIRECTING THE BOND REGISTRAR TO AUTHENTICATE AND DELIVER THE SERIES 2011 BONDS; APPROVING THE FORM OF AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION OF THE OFFICIAL STATEMENT; PROVIDING FOR THE APPLICATION OF THE PROCEEDS OF THE SERIES 2011 BONDS AND CREATING CERTAIN FUNDS, ACCOUNTS AND SUBACCOUNTS; AUTHORIZING A BOOK-ENTRY REGISTRATION SYSTEM WlTH RESPECT TO THE SERIES 2011 BONDS; AUTHORIZING THE REFUNDING, DEFEASANCE AND REDEMPTION OF THE BONDS TO BE REFUNDED AND APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT; 21 6 Commission Memorandum - September 27,201 1 Stormwater Revenue Bonds Page 2 of 5 COVENANTING TO PROVIDE CONTINUING DISCLOSURE IN CONNECTION WITH THE SERIES 2011 BONDS AND APROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE AGREEMENT; AUTHORIZING OFFICERS AND EMPLOYEES OF THE CITY TO TAKE ALL NECESSARY RELATED ACTIONS; AND PROVIDING FOR AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION Approve the resolution on first reading and schedule a second reading public hearing. BACKGROUND In November 2000, the City issued its first series of Stormwater Bonds in the amount of $52.17 million. The Administration, in concert with the City's Financial Advisor, has determined that the City now has the need and the capacity to issue additional Stormwater Revenue Bonds for new capital projects and the possibility of refunding the remaining outstanding Series 2000 Stormwater Bonds. On June 30, 2008, the Finance and Citywide Projects Committee recommended that two series of Stormwater Revenue Bonds be issued to fund the approximately $94.6 million needed for projects. The first issue was proposed to be $39.1 million in fiscal year 200912010 and the second issue in fiscal year 201 112012 for $55.5 million. In fiscal year 20101201 1 the Adopted Capital Budget included funding for the Citywide Stormwater Master Plan and several new projects bringing the proposed program total to $106.8 million. This net increase is a result of savings from awarded projects, additional scope, projects previously scheduled for the second bond series that are being accelerated, some new projects and the deferral of issuance of this series for approximately two years (FY 200912010 to FY 201 112012). A reconciliation of these amounts is included on the attached Schedule A. In an effort to defer issuing debt and to expedite the spend down of existing Stormwater bond proceeds and to comply with State law requirements that funds be available at the time a contract is awarded, the City obtained a Line of Credit (LOC) for $30 million to award scheduled Stormwater projects in anticipation of the new bond issue. On January 19, 201 1, the City Commission authorized the execution of the LOC agreement between the City and JPMorgan Chase Bank, N.A. and to date we have committed approximately $23.4 million from this line for Stormwater projects. Based on the current Capital Plan, the Administration is recommending that the size of the proposed issue be increased to $50.2 million for the new money portion and approximately $27.1 million in the refunding portion plus cost of issuance and premiums, for a total issue size of approximately $83 million. Of the new money portion, approximately $23.4 million has been awarded from the existing line of credit and an additional $3.9 million is expected to be award from the line of credit for a total of $27.3 million prior to the proposed bond sale. We anticipate that the remaining capacity in the line of credit is sufficient to pay the cost of awarded projects until the proposed bond is issued, as the Series 2000 proceeds have now been fully expended. Commission Memorandum - September 27,201 1 Stormwater Revenue Bonds Page 3 of 5 Therefore, assuming $27.3 million of the proposed bond will be used to cover projects that have already been approved and awarded, the balance of $22.9 million is expected to fund all currently planned projects scheduled for award in fiscal year 201 112012 and will fund the projects that have been previously committed from the line of credit. The remaining storm water projects in the capital plan which currently include the Flamingo Neighborhood, West Avenue and Middle North Bay Road Drainage Improvement total approximately $51.4 million and can be funded in a subsequent bond issue. Timing of funding for additional projects identified in the master plan study currently underway will be analyzed upon completion of the master plan. ANALYSIS The proposed Stormwater Revenue Bonds are separated into two series; Series 201 1A for the purpose of paying the costs of improvements to the Stormwater System and Series 201 1B for the refinancing of the remaining Series 2000 Stormwater Revenue Bonds. (Please see attached schedule Stormwater Funding Attachment B). The Commission may approve by resolution other improvements as part of the Series 201 1 Project in addition to and/or in lieu of one or more of the above improvements. The security for the repayment of these amounts will be the net revenues generated from the Stormwater System. Refinancing of the Series 2000 Stormwater Revenue Bonds with Series 201 1 B The City's proposed refunding of the outstanding Stormwater Revenue Bonds, Series 2000 is the result of the Administration's continuous review of opportunities to refund outstanding bonds to ensure the City is paying the lowest possible rate within statutory and tax requirements. Concurrent with the delivery of the Series 201 1 Bonds, a portion of the proceeds, not to exceed $28 million, will be applied to the payment of the City's outstanding Stormwater Revenue Bonds Series 2000. The City's Financial Advisor has determined that the City has the capacity to refinance the Series 2000 Stormwater Revenue Bonds, and that the refunding of the Series 2000 Stormwater Revenue may provide, as of August 30, 201 1, a present value savings of approximately $3.0 million or approximately 11%. The refunding of these bonds does not extend the term of the bonds beyond their original maturity date. At the September 1, 201 1, meeting of the Finance and Citywide Projects Committee, the Committee voted to recommend approval of the proposed refinancing of the outstanding Series 2000 Stormwater Revenue Bonds in conjunction with the issuance of additional bonds to finance the construction of certain improvements to the Stormwater Utility in accordance with Sec. 2-278(a)2. In November 2007, the Mayor and City Commission approved Ordinance 2007-3582 which amended the procedures that the City followed in connection with the approval of a bond issue and added the following Section to Chapter 2 of the Miami Beach City Code, entitled "Administration"; Article V entitled "Finance"; Sec. 2-278, entitled Commission Memorandum - September 27,201 1 Stormwater Revenue Bonds Page 4 of 5 "Procedures governing the issuance of bonds. Sec. 2-278. Procedures governing the issuance of bonds. (a) Prior to the adoption by the city commission of the final resolution approving the issuance of any bonds by the city, the following requirements shall be complied with: (1) In order for the city commission and the public to be fully informed on all matters relating to the proposed issuance of bonds, the city manager shall prepare, or cause to be prepared, a fiscal analysis of the economic impact of the proposed bond issuance using the following criteria: a) The estimated cost of the project or projects on account of which such bonds are to be issued; b) The estimated annual revenues, if any, to be generated by such project or projects; and c) The estimated annual cost of maintaining, repairing and operating such project or projects. (2) Upon completion of the fiscal analysis in subsection (a)(?), the proposed issuance of bonds shall be first considered and reviewed by the city's finance and citywide projects committee. (3) The city commission shall hold two public hearings, each advertised not less than 15 days prior to the hearing, in order to obtain citizen input into the proposed bond issuance. In accordance with this provision the Administration prepared the required fiscal analysis which included the following breakdown of the proposed Stormwater Revenue Bond issue. In response to Sec. 2-278 (a)l(a): the estimated cost of the projects on account of which the bonds are to be issued is $50.2 million. In response to Sec. 2-278 (a)l(b): the estimated revenues to be generated by the projects. These projects will either replace or enhance portions of the existing storm water system; the operation of such system is funded entirely by user fees. No additional fees are anticipated to be earned as a result of these projects and no additional increase in the user fee is required at this time. However, additional operating or maintenance costs may require future increases to user fees. In response to Sec. 2-278 (a)l(c): the estimated annual cost of maintaining, repairing and operating such projects. Operating and maintenance costs for these enhancements are estimated to average 2% of the capital cost or approximately $1,000,000 annually. Such incremental costs may require increases to future user fees. In accordance with Sec. 2-278 (a) 3, two public hearings will be held for this proposed Stormwater Revenue Bond issue. The dates of the public hearings are proposed for September 27 and October 19, 2011, and each date will be advertised at least fifteen (15) days prior to the public hearing date. Commission Memorandum - September 27,201 1 Stormwater Revenue Bonds Page 5 of 5 Because of the character of the Series 2011 Stormwater Bonds, the prevailing market conditions, the complexity of structuring a refunding and a new system-wide financing program for the Stormwater System and the recommendations of the Financial Advisor, it was further determined that the sale of the Series 201 1 Stormwater Bonds on the basis of a negotiated sale rather than a public sale by competitive bid is in the best interest of the City. The Resolution for the issuance of the Series 201 1 Stormwater Bonds will delegate to the Mayor, relying upon the recommendation of the Chief Financial Officer and RBC Capital Markets (the City's Financial Advisor), the determination of various terms of the Series 201 1 Bonds, including whether to secure one or more Credit Facilities andlor Reserve Account Insurance Policies with respect to the Series 201 1 Bonds, the final award of the Series 201 1 Bonds, the dates of redemption of the Prior Bonds to be redeemed prior to maturity, the payment of all related costs and expenses in connection with the issuance of the Bonds and all other actions necessary or desirable in connection with the issuance of the Series 201 1 Bonds and the refunding of the Prior Bonds. Additionally, the proposed Resolution provides the structure for the issuance of other Bonds and other forms of indebtedness of the City payable from the Net Revenues of the Stormwater System for the purpose of paying all or any part of the cost of any other improvements to the Stormwater System or to refund or refinance all or a portion of the Bonds or any other series or other indebtedness of the City incurred with respect to the Stormwater System then outstanding. All such additional actions would require approval of the Mayor and City Commission. Conclusion The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida, approve the resolution on first reading and schedule a second reading public hearing Attachments: Bond Purchase Agreement Escrow Deposit Agreement Disclosure Dissemination Agreement The Preliminary Official Statement (POS) T:\Agenda/201 llseptember 27lRegularlStormwater Bonds Series 201 1 -Comm Memo ATTACHMENT "A" CITY OF MIAMI BEACH CAPITAL PLAN - STORMWATER FUNDING PROJECT ORlGlNAL VAR FROM ORIGINAL AWARDED CONTRACTS Proposed Future Storm Water Bond Bayshore Nelghborhocd - Bld Pack A 13,514.39Q.W -3,657,794.00 9.856.805.W act Bayshwe Neighborhood - Bid Pack C 2.395.116.W -796,056.00 1.599.C60.W act Bisceyne Point Neighborhood Improvemenls 6.980.730.W -369,471.00 8.591.250.00 act Normandy Shores Nelghborhood Improvement 3,438,180.W -1,371,482.00 2.068.688.W a& star lslsnd Enhancements Bayshom Neigh Sunset Is11 & 2 BPE Bayshore Nelghborhood - Bid Pack B LaOorce Nelghborhood Improvements Vewtien Nnlgh - VeneUan Islands Bayshwe Nelghborhood - Bld Pack D SUnSet 384 Flamingo Nelghborhood - Bid Pack A Ramlngo Neighborhood - Bld Peck C Palm & Hibisas island Enhancament West AvenuelBay Road Improvements 48'0Utlatl81 Easament 41804200 Chase Bay Road Pump Stauon OuHaI1 Belle lsle Outfail Plpes Replacement CiLpMe Stormwater Master Plan Drainage Hot Spots Dmlnage Improv- North Bay B 58 St Dralnege lmpmv W 44 St B Royal Palm ROW Improvements on Pralris Avenue SeawaiCUnwln Road Streetand W Sunset Harbor Pump StaUon Upgndee Nautilus Naighborhood lmpmvsmsnle Normandy lsle Nelghbarhaod Impmvemsna Ocesnhont Neighborhaad Improvemanis 73O.WO.W 73,000.00 Sm,WO.OO proj $ (6,121,803.00) Savlngs from awarded projects: 990.W0.00 934,652.00 1.924.aU.W pro1 3.1 14,750.00 400.531 .Oo 3,515.2ffl.W act 5.838.288.W 41,200.00 5.Bn.488.W pmj 710,611.W 1,305,509.00 2.016.120.W pmj $ 2,681,892.00 Addltlonal scope 88.200.W 2,648,783.00 2.736.883.W pmj 119.070.00 309,704.00 428,774.00 pro] 107,310.W 595,055.00 702.365.00 proj 92,610.00 5,760,788.00 5,853.398.00 pro] 102.9W.00 551,425.00 654.325.W pmj $ 9,865,755.00 2nd Issue projects accelerated 520,000.00 $ 4,835,492.00 New project3 l'dE.962.W pmj 318,m.W pro] 51 lz3e.W pmj 6CO.m.w act 1.3W.m.W proj 1s7re2.w pmj 650.Wa.W proj 377.WO.W ad rn.Wa.w ad 520,o.wo.~ pmj 167.22O.W act 198.CGS.W ad 546.068.M) -182,820.00 383248.00 pmj $ (162,820.00) No Variance RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA AUTHORIZING THE ISSUANCE OF (i) NOT TO EXCEED $54,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF CITY OF MIAMI BEACH, FLORIDA STORMWATER REVENUE BONDS, SERIES 2011A, FOR THE PRINCIPAL PURPOSE OF PAYING THE COST OF CERTAIN IMPROVEMENTS TO THE STORMWATER UTILITY, PURSUANT TO SECTION 209 OF RESOLUTION NO. 2000-24127 ADOPTED BY THE CITY ON OCTOBER 18, 2000, AND (ii) NOT TO EXCEED $28,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF CITY OF MIAMI BEACH, FLORIDA STORMWATER REVENUE REFUNDING BONDS, SERIES 201 lB, FOR THE PRINCIPAL PURPOSE OF REFUNDING ALL OR A PORTION OF THE CITY'S OUTSTANDING STORMWATER REVENUE BONDS, SERIES 2000, PURSUANT TO SECTION 210 OF SAID RESOLUTION NO. 2000-24127; PROVIDING THAT SAID SERIES 2011 BONDS AND INTEREST THEREON SHALL BE PAYABLE SOLELY AS PROVIDED IN SAID RESOLUTION NO. 2000-24127; PROVIDING CERTAIN DETAILS OF THE SERIES 201 1 BONDS; DELEGATING OTHER DETAILS AND MATTERS IN CONNECTION WITH THE ISSUANCE OF THE SERIES 201 1 BONDS AND THE REFUNDING OF THE BONDS TO BE REFUNDED TO THE MAYOR, WITHIN THE LIMITATIONS AND RESTRICTIONS STATED HEREIN; APPOINTING UNDERWRITERS, A BOND REGISTRAR, AN ESCROW AGENT AND A DISCLOSURE DISSEMINATION AGENT; AUTHORIZING THE NEGOTIATED SALE OF THE SERIES 2011 BONDS AND APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT; AUTHORIZING AND DIRECTING THE BOND REGISTRAR TO AUTHENTICATE AND DELIVER THE SERIES 201 1 BONDS; APPROVING THE FORM OF AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION OF THE OFFICIAL STATEMENT; PROVIDING FOR THE APPLICATION OF THE PROCEEDS OF THE SERIES 2011 BONDS AND CREATING CERTAIN FUNDS, ACCOUNTS AND SUBACCOUNTS; AUTHORIZING A BOOK-ENTRY REGISTRATION SYSTEM WITH RESPECT TO THE SERIES 2011 BONDS; AUTHORIZING THE REFUNDING, DEFEASANCE AND REDEMPTION OF THE BONDS TO BE REFUNDED AND APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT; COVENANTING TO PROVIDE CONTINUING DISCLOSURE IN CONNECTION WITH THE SERIES 2011 BONDS AND APROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE AGREEMENT; AUTHORIZING OFFICERS AND EMPLOYEES OF THE CITY TO TAKE ALL NECESSARY RELATED ACTIONS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Miami Beach, Florida (the "City") currently owns, maintains and operates a Stormwater Utility (as such term and all other capitalized terms used in this resolution and not defined herein are defined in the hereinafter described Original Resolution); and WHEREAS, the City has heretofore issued its (i) $52,170,000 original principal amount of City of Miami Beach, Florida Stormwater Revenue Bonds, Series 2000, currently Outstanding in the principal amount of $27,105,000 (the "Outstanding Series 2000 Bonds"), pursuant to Resolution No. 2000-24127 adopted by the Commission on October 18, 2000 (the "Original Resolution" and as amended and supplemented from time to time, the "Bond Resolution"), and (ii) $16,185,000 original principal amount of City of Miami Beach, Florida Stormwater Revenue Refunding Bonds, Taxable Series 20095-2, all of which are currently Outstanding, pursuant to the Original Resolution and Resolution No. 2009-27242 adopted by the Commission on October 14, 2009; and WHEREAS, the City has determined that certain capital improvements to the Stormwater Utility as more particularly described in Exhibit A attached hereto and made a part hereof (collectively, the "Series 201 1 Project") are necessary and desirable for the furtherance of the health, safety and welfare of the users of the Stormwater Utility and the residents of the City; and WHEREAS, Section 209 of the Original Resolution provides for the issuance of Additional Bonds under the Bond Resolution for the principal purpose of paying all or any part of the Cost of any Improvements, upon meeting certain conditions contained in said Section 209; and WHEREAS, the Series 2011 Project constitutes Improvements under the Bond Resolution; and WHEREAS, the City has determined that it is desirable to issue Additional Bonds (the "Series 201 1A Bonds") pursuant to the provisions of Section 209 of the Original Resolution and this resolution, which constitutes a Series Resolution for the Series 201 1A Bonds under the Bond Resolution, for the purpose of paying, together with any other available moneys of the City, the Cost of the Series 201 1 Project and funding the Reserve Account; and WHEREAS, the City has further determined that as a result of the current low interest rate environment it is financially beneficial to authorize the refunding of all or a portion of the Outstanding Series 2000 Bonds, as shall be determined by the Mayor in accordance with the provisions of this resolution (the Outstanding Series 2000 Bonds to be refunded hereinafter referred to as the "Bonds to be Refunded"); and WHEREAS, Section 210 of the Original Resolution provides for the issuance of Refunding Bonds for the principal purpose of providing funds for refunding all or any portion of the Outstanding Bonds of any one or more Series, upon meeting certain conditions contained in said Section 2 10; and WHEREAS, in accordance with the requirements of Section 210 of the Original Resolution, the Commission hereby determines that the refunding of the Bonds to be Refwnded is in the best interests of the City and the users of the Stormwater Utility as it will result in debt service savings which will lower the cost of operating the Stormwater Utility and be financially beneficial to the City and the users of the Stormwater Utility; and WHEREAS, the City has determined that it is desirable to issue Refunding Bonds (the "Series 201 1B Bonds" and, together with the Series 201 1A Bonds, the "Series 201 1 Bonds") pursuant to the provisions of Section 210 of the Original Resolution and this resolution, which constitutes a Series Resolution for the Series 201 1B Bonds under the Bond Resolution, for the purpose of providing moneys, together with any other available moneys, for refunding, defeasing and redeeming the Bonds to be Refunded, including interest to accrue to their redemption date, and paying the expenses incurred in such issuance, refunding, defeasance and redemption (collectively, the "Refunding Requirements"); and WHEREAS, the Commission has determined that it is in the best interest of the City to delegate to the Mayor, who shall rely upon the recommendations of the Chief Financial Officer of the City (the "Chief Financial Officer"), who is the officer succeeding to the principal functions of the Finance Director, and RBC Capital Markets, Inc., the City's financial advisor (the "Financial Advisor"), the determination of various terms of the Series 201 1 Bonds, the final award of the Series 201 1 Bonds, including execution of the Series 201 1 Bond Purchase Agreement (as hereinafter defined), the determination of the Outstanding Series 2000 Bonds which will constitute the Bonds to be Refunded, the date of redemption of the Bonds to be Refunded, and other actions in connection with the issuance of the Series 201 1 Bonds and the refunding, defeasance and redemption of the Bonds to be Refunded, all as provided and subject to the limitations contained herein; and WHEREAS, the City has determined that due to the character of the Series 201 1 Bonds, current favorable market conditions, the uncertainty inherent in a competitive bidding process and the recommendations of the Financial Advisor, it is in the best interest of the City to authorize the negotiated sale of the Series 201 1 Bonds; and WHEREAS, in connection with the issuance of the Series 2011A Bonds, the requirements of Ordinance No. 2007-3582, adopted by the Commission on November 21, 2007, including the holding of two public hearings, have been complied with prior to the adoption of this Series Resolution; NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. The above recitals are incorporated herein as findings. SECTION 2. A Series of Additional Bonds of the City in an aggregate principal amount not to exceed $54,000,000 is authorized to be issued pursuant to, and subject to the conditions of, Section 209 of the Original Resolution and the authority granted to the City by the Act, for the purpose of paying, together with any other available moneys, the Cost of the Series 201 1 Project and funding the Reserve Account. The Series 201 1A Bonds shall be designated "City of Miami Beach, Florida Stormwater Revenue Bonds, Series 201 IA," shall be issued as Current Interest Bonds, shall be issued in fully registered form as provided in Section 202 of the Original Resolution, shall be in the denominations of $5,000 or any whole multiple thereof and shall be numbered R- 1 upwards. A Series of Refunding Bonds of the City in an aggregate principal amount not to exceed $28,000,000 is authorized to be issued pursuant to, and subject to the conditions of, Section 210 of the Original Resolution and the authority granted to the City by the Act, for the purpose of providing moneys, together with any other available moneys, to pay the Refunding Requirements. The Series 201 1B Bonds shall be designated "City of Miami Beach, Florida Stormwater Revenue Refunding Bonds, Series 201 1B," shall be issued as Current Interest Bonds, shall be issued in fully registered form as provided in Section 202 of the Original Resolution, shall be in the denominations of $5,000 or any whole multiple thereof and shall be numbered R-1 upwards. Each Series of the Series 201 1 Bonds shall be issued in such aggregate principal amount, shall be dated and issued at such time or times, shall be in the form of Serial Bonds and/or Term Bonds, shall have such Interest Payment Dates, shall bear interest at such fixed rates, but not to exceed the maximum rate permitted by law, shall be stated to mature on such dates, but not later than September 30,2041, as to any Term Bonds, shall have Amortization Requirements payable in such mounts and on such dates, and shall be subject to redemption prior to maturity, all as shall be determined by the Mayor, after consultation with the Chief Financial Officer and the Financial Advisor, and specified in a certificate of the Mayor executed at the time of the sale of the Series 201 1 Bonds (the "Series 201 1 Mayor's Certificate"). Term Bonds, if any, will be callable at par with accrued interest, without premium, each year in amounts equal to the respective Amortization Requirements therefor. Principal of and interest and redemption premium, if any, on the Series 201 1 Bonds shall be payable in accordance with the provisions of the Bond Resolution. The execution of the Series 201 1 Mayor's Certificate shall be conclusive evidence of the City's approval of the details of the Series 201 1 Bonds. Notwithstanding anything to the contrary contained in this Series Resolution, the authorization pursuant to this Series Resolution of the issuance of each Series of the Series 201 1 Bonds is independent of the authorization pursuant to this Series Resolution of the issuance of the other Series of the Series 201 1 Bonds, and each Series of the Series 201 1 Bonds may be issued (A) without the issuance of the other Series of the Series 201 1 Bonds, or (B) at separate times. In any such event, the documents approved pursuant to this Series Resolution may be modified as necessary or separate versions of such documents may be prepared and used with respect to each Series of the Series 201 1 Bonds to the extent applicable to such Series of the Series 201 1 Bonds. SECTION 3. In accordance with the provisions of the Bond Resolution, the Series 201 1 Bonds shall be limited obligations of the City payable solely from the Net Revenues and, to the extent provided in the Bond Resolution, from certain Funds and Accounts which are pledged to the payment thereof in the manner provided in the Bond Resolution, and nothing shall be construed as obligating the City to pay the principal, interest and premium, if any, thereon except from the Net Revenues and, to the extent provided in the Bond Resolution, said Funds and Accounts or as pledging the full faith and credit of the City or any form of taxation whatever to such payments. SECTION 4. It is hereby found and determined that due to the character of the Series 201 1 Bonds, current favorable market conditions, the uncertainty inherent in a competitive bidding process and the recommendations of the Financial Advisor, the negotiated sale of the Series 201 1 Bonds is in the best interest of the City. The negotiated sale of the Series 201 1 Bonds to J.P. Morgan Securities LLC (the "Senior Managing Underwriter") on behalf of itself and Merrill Lynch, Pierce, Fenner & Smith Incorporated, SunTrust Robinson Humphrey, Inc. and Morgan Stanley & Co. Incorporated (collectively with the Senior Managing Underwriter, the "Underwriters") is hereby authorized at a purchase price (not including original issue premium or original issue discount) with respect to each Series of the Series 201 1 Bonds of not less than 99% of the aggregate principal amount of such Series of the Series 201 1 Bonds (with respect to each Series of the Series 201 1 Bonds, the "Minimum Purchase Price") and at a true interest cost rate ("TIC") (i) with respect to the Series 201 1A Bonds, not to exceed 5.75% (the "Series 201 1A Maximum TIC"), and (ii) with respect to the Series 201 1B Bonds, which will result in total present value debt service savings on the Bonds to be Refunded of not less than 3.00% (the "Series 201 1B Maximum TIC"). The Mayor, after consultation with the Chief Financial Officer and the Financial Advisor, is hereby authorized to award the Series 201 1 Bonds to the Underwriters at a purchase price with respect to each Series of the Series 201 1 Bonds of not less than the Minimum Purchase Price and at a TIC (i) with respect to the Series 201 1A Bonds, not in excess of the Series 201 1A Maximum TIC and (ii) with respect to the Series 201 1B Bonds, not in excess of the Series 201 1B Maximum TIC. The execution and delivery of the Series 201 1 Bond Purchase Agreement for and on behalf of the City by the Mayor shall be conclusive evidence of the City's acceptance of the Underwriters' proposal to purchase the Series 201 1 Bonds. SECTION 5. Upon compliance with the requirements of Section 218.385, Florida Statutes, by the Underwriters, the Commission hereby authorizes the Mayor to execute and deliver a Bond Purchase Agreement for the Series 201 1 Bonds (the "Series 201 1 Bond Purchase Agreement") for and on behalf of the City, in substantially the form presented at the meeting at which this Series Resolution was considered, subject to such changes, modifications, insertions and omissions and such filling-in of blanks therein as may be determined and approved by the Mayor, after consultation with the Chief Financial Officer and the City Attorney. The execution of the Series 201 1 Bond Purchase Agreement for and on behalf of the City by the Mayor shall be conclusive evidence of the City's approval of the Bond Purchase Agreement. SECTION 6. The Bond Registrar is hereby authorized and directed to authenticate the Series 201 1 Bonds and to deliver the Series 201 1 Bonds to or upon the order of the Underwriters upon payment of the purchase price, as shall be set forth in the Series 2011 Bond Purchase Agreement, and satisfaction of the conditions contained in Section 209 and Section 210, as applicable, of the Original Resolution. SECTION 7. The proposed Preliminary Official Statement (the "Series 201 1 Preliminary Official Statement") and Official Statement (the "Series 201 1 Official Statement") in connection with the issuance of the Series 201 1 Bonds are hereby approved in substantially the form of the Series 201 1 Preliminary Official Statement presented at the meeting at which this Series Resolution was considered, subject to such changes, modifications, insertions and omissions and such filling-in of blanks therein as may be determined and approved by the Mayor, after consultation with the Chief Financial Officer and the City Attorney. The execution of the Official Statement, for and on behalf of the City by the Mayor and the City Manager shall be conclusive evidence of the City's approval of the Series 201 1 Preliminary Official Statement and the Series 20 1 1 Official Statement. The distribution of said Series 20 1 1 Preliminary Official Statement and Series 201 1 Official Statement in connection with the marketing of the Series 201 1 Bonds and the execution and delivery of the Series 201 1 Official Statement by the Mayor and the City Manager are hereby authorized. The Mayor or her designee, after consultation with the Chief Financial Officer and the City Attorney, is hereby authorized to make any necessary certifications to the Underwriters regarding a near final or deemed final Series 201 1 Official Statement, if and to the extent required by Rule 15~2-12 of the United States Securities and Exchange Commission (the "Rule"). SECTION 8. The proceeds of the Series 201 1 Bonds and, to the extent determined by the Chief Financial Officer, moneys on deposit in the Debt Service Account on account of the Bonds to be Refunded shall be applied in accordance with the provisions of Section 209 and Section 21 0, as applicable, of the Original Resolution and this Series Resolution, all as specified in a certificate of the Chief Financial Officer delivered concurrently with the issuance of the Series 201 1 Bonds, including, to the extent provided in such certificate, for the payment of interest accruing on the Series 201 1A Bonds prior to, during and after construction of the Series 201 1 Project. In accordance with the provisions of the Bond Resolution, there is hereby created within the Construction Fund a "Series 201 1A Construction Account" and within said Series 201 1A Construction Account, a "Series 201 1A Construction Subaccount" for the deposit of proceeds of the Series 201 1A Bonds to be applied to the payment of the Cost of the Series 201 1 Project, other than the portion thereof representing expenses incurred in the issuance of the Series 201 1A Bonds, and a "Series 201 1A Cost of Issuance Subaccount" for the deposit of proceeds of the Series 201 1A Bonds to be applied to the payment of expenses incurred in the issuance of the Series 20 1 1 A Bonds. In accordance with the provisions of the Bond Resolution, there is to be created pursuant to the Escrow Deposit Agreement (hereinafter defined) a "City of Miami Beach, Florida Stormwater Revenue Bonds, Series 2000 Escrow Deposit Trust Fund" (the "Escrow Deposit Trust Fund"), to be held by the Escrow Agent (hereinafter defined), for the deposit of proceeds of the Series 201 1B Bonds and other available moneys to be applied as shall be provided in the Escrow Deposit Agreement. There is hereby created a "Series 201 1B Cost of Issuance Account" for the deposit of proceeds of the Series 201 1B Bonds to be applied to the payment of expenses incurred in the issuance of the Series 2011B Bonds and the refunding, defeasance and redemption of the Bonds to be Refunded. The proceeds of the Series 2011 Bonds shall be invested in accordance with the provisions of Section 602 of the Original Resolution in Investment Obligations as determined by the Chief Financial Officer; provided, however, that the portion of the proceeds of the Series 201 1B Bonds and other available moneys deposited in the Escrow Deposit Trust Fund shall be invested as provided in Section 11 of this Series Resolution and in the Escrow Deposit Agreement. SECTION 9. In connection with the issuance of the Series 201 1 Bonds and for the purpose of complying with the covenants contained in Section 605 of the Original Resolution, there are hereby created (i) with respect to the Series 201 1A Bonds, a special fund designated "Series 201 1A Arbitrage Rebate Fund," and (ii) with respect to the Series 201 1B Bonds, a special fund designated "Series 201 1B Arbitrage Rebate Fund," each of which shall be held by the City and constitute an Arbitrage Rebate Fund under the Bond Resolution. SECTION 10. The Series 201 1 Bonds shall be executed in the form and manner provided in the Bond Resolution. The Series 201 1 Bonds are hereby authorized to be issued initially in book-entry form and registered in the name of The Depository Trust Company, New York, New York ("DTC"), or its nominee which will act as securities depository for the Series 201 1 Bonds. The Chief Financial Officer is hereby authorized and directed to execute any necessary letters of representations with DTC and, notwithstanding the provisions of the Bond Resolution, to do all other things, comply with all requirements and execute all other such documents as are incidental to such book-entry system. In the event a book-entry system for the Series 201 1 Bonds ceases to be in effect, the Series 201 1 Bonds shall be issued in fully certificated form. SECTION 11. The refimding, defeasance and redemption of the Bonds to be Refunded is hereby authorized and approved. The Mayor, after consultation with the Chief Financial Officer and the Financial Advisor, is hereby authorized to determine the Outstanding Series 2000 Bonds which will constitute the Bonds to be Refunded and the date of redemption of the Bonds to be Refunded, all as shall be set forth in the Escrow Deposit Agreement. The Mayor and the City Clerk are hereby authorized to execute and deliver an Escrow Deposit Agreement to provide for the defeasance, payment and redemption of the Bonds to be Refunded (the "Escrow Deposit Agreement") with U.S. Bank National Association, who is hereby appointed escrow agent with respect to the Bonds to be Refunded (the "Escrow Agent"), in substantially the form presented at the meeting at which this Series Resolution was considered, subject to such changes, modifications, insertions and omissions and such filling-in of blanks therein as may be determined and approved by the Mayor, after consultation with the Chief Financial Officer and the City Attorney. The purchase of Government Obligations from the proceeds of the Series 201 1B Bonds and other available moneys in order to provide for the defeasance, payment and redemption of the Bonds to be Refunded is hereby authorized and approved. The execution and delivery of the Escrow Deposit Agreement by the Mayor and City Clerk shall be conclusive evidence of the City's approval of the Outstanding Series 2000 Bonds which will constitute the Bonds to be Refunded, the date of redemption of the Bonds to be Refunded, the Escrow Deposit Agreement and the purchase of the Government Obligations. SECTION 12. For the benefit of the Holders and beneficial owners from time to time of the Series 201 1 Bonds, the City agrees, in accordance with and as the only obligated person with respect to the Series 201 1 Bonds under the Rule, to provide or cause to be provided certain financial information and operating data, financial statements and notices, in such manner, as may be required for purposes of paragraph (b)(5) of the Rule. In order to describe and specify the terms of the City's continuing disclosure agreement, the Chief Financial Officer is hereby authorized and directed to enter into and deliver, in the name and on behalf of the City, a Disclosure Dissemination Agent Agreement (the "Series 2011 Continuing Disclosure Agreement"), with Digital Assurance Certification, L.L.C. ("DAC"), which is hereby appointed as disclosure dissemination agent with respect to the Series 201 1 Bonds, in substantially the form presented at the meeting at which this Series Resolution was considered, subject to such changes, modifications, insertions and omissions and such filling-in of blanks therein as may be determined and approved by the Chief Financial Officer, after consultation with the City Attorney. The execution of the Series 201 1 Continuing Disclosure Agreement, for and on behalf of the City by the Chief Financial Officer, shall be deemed conclusive evidence of the City's approval of the Series 201 1 Continuing Disclosure Agreement. Notwithstanding any other provisions of the Bond Resolution, including this Series Resolution, any failure by the City to comply with any provisions of the Series 201 1 Continuing Disclosure Agreement shall not constitute an Event of Default under the Bond Resolution and the remedies therefor shall be solely as provided in the Series 201 1 Continuing Disclosure Agreement. The Chief Financial Officer is further authorized to establish procedures in order to ensure compliance by the City with the Series 201 1 Continuing Disclosure Agreement, including the timely provision of information and notices. Prior to making any filing in accordance with such agreement, the Chief Financial Officer may consult with, as appropriate, the City Attorney - - or Bond Counsel. The Chief Financial Officer, acting in the name and on behalf of the City, shall be entitled to rely upon any legal advice provided by the City Attorney or Bond Counsel in determining whether a filing should be made. SECTION 13. U.S. Bank National Association is hereby appointed as Bond Registrar for the Series 201 1 Bonds. SECTION 14. The officers, agents and employees of the City, the Bond Registrar, the Escrow Agent and DAC are hereby authorized and directed to do all acts and things and execute and deliver all documents, agreements and certificates required of them by the provisions of the Series 201 1 Bonds, the Bond Resolution, the Series 201 1 Bond Purchase Agreement, the Escrow Deposit Agreement, the Series 2011 Continuing Disclosure Agreement and this Series Resolution, for the full, punctual and complete performance of all the terms, covenants, provisions and agreements of the Series 201 1 Bonds, the Bond Resolution, the Series 201 1 Bond Purchase Agreement, the Escrow Deposit Agreement, the Series 201 1 Continuing Disclosure Agreement and this Series Resolution. SECTION 15. This Series Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this day of ,2011. Mayor (Seal) Attest: City Clerk APPROVE0 AS 70 FORM & LANGUAGE -1 FOR EXECUTION EXHIBIT A SERIES 201 1 PROJECT The Series 201 1 Project includes the following: - Neighborhoods stormwater improvements - Drainage improvements - Outfall pipes replacementslrepairs - Pump stations installations/improvements/repairs The Series 201 1 Project also includes development of a revised Citywide Stormwater Master Plan in connection with Improvements to the Stormwater Utility. The Commission may approve by resolution other Improvements as part of the Series 201 1 Project in addition to andlor in lieu of one or more of the above Improvements. EAPD DRAFT 9/21/2011 $ CITY OF MIAMI BEACH, FLORIDA $ $ Stormwater Revenue Bonds Stormwater Revenue Refunding Bonds, Series 2011A Series 2011B BOND PURCHASE AGREEMENT Mayor and City Commission City of Miami Beach, Florida 1700 Convention Center Drive Miami Beach, Florida 33139 Ladies and Gentlemen: JP Morgan Securities, LLC (the "Senior Managing Underwriter"), acting on behalf of itself and Merrill Lynch, Pierce Fenner & Smith Incorporated, Morgan Stanley & Co. Incorporated, and SunTrust Robinson Humphrey (collectively, with the Senior Managing Underwriter, the "Underwriters"), offer to enter into this Bond Purchase Agreement (this "Purchase Agreement") with the City of Miami Beach, Florida (the "City"), for the sale by the City and the purchase by the Underwriters of the City's $ Stormwater Revenue Bonds, Series 2011A (the "Series 2011A Bonds") and the City's $~ $ Stormwater Revenue Refunding Bonds, Series 2011B (the "Series 2011B Bonds and together with the Series 2011A Bonds, the "Series 2011 Bonds"). This offer is made subject to acceptance by the City prior to 5:00 p.m. (Eastern Time) on the date hereof. Upon such acceptance, this Purchase Agreement will be in full force and effect in accordance with its terms and will be binding on the City and the Underwriters. If this offer is not so accepted, it is subject to withdrawal by the Underwriters upon written notice delivered to the City at any time prior to such acceptance. In conformance with Section 218.385, Florida Statutes, as amended, the Underwriters hereby deliver the Disclosure and Truth-in-Bonding Statement attached hereto as Exhibit "A." Capitalized terms used in this Purchase Agreement, but not defined, are used with the meanings ascribed to them in the Bond Resolution hereinafter mentioned. The Senior Managing Underwriter represents that it is authorized on behalf of itself and the other Underwriters to enter into this Purchase Agreement and to take any other actions that may be required on behalf of the Underwriters. 1 PMB 4241 1 1.3 233 SECTION 1. (a) Upon the terms and conditions and upon the basis of the representations and warranties herein set forth, the Underwriters hereby agree to purchase from the City and the City hereby agrees to sell to the Underwriters all (but not less than all) of the Series 2011A Bonds for a purchase price equal to $ (which purchase price is the aggregate principal amount of the Series 2011A Bonds, plus net premium of $ and less an Underwriters' discount of $ ) and all (but not less than all) of the Series 2011B Bonds for a purchase price equal to $ (which purchase price is the aggregate principal amount of the Series 2011B Bonds plus net premium of $ and less an Underwriters' discount of $ ). The purchase price for the Series 2011 Bonds shall be payable to the City in immediately available funds. (b) The Series 2011 Bonds will be issued pursuant to Chapter 166, Florida Statutes, as amended, and the City of Miami Beach Charter and Section 403.0893(1), Florida Statutes (collectively, the "Act") and other applicable provisions of law and pursuant and subject to the terms and conditions of Resolution No. 2000-24127 adopted by the Mayor and City Commission of the City of Miami Beach, Florida (the "Commission") on October 18, 2000 as amended and supplemented from time to time and Resolution No. 2011- adopted by the Mayor and Commission on , 2011 (the "Series 2011 Resolution" and collectively with the Resolution No. 2000-24127 as theretofore amended, the "Bond Resolution"). The Series 2011 Bonds will be secured as provided in the Bond Resolution. The Series 2011 Bonds shall mature and have such other terms and provisions as are described on Exhibit "B" hereto. Proceeds of the Series 2011A Bonds will provide funds, together with other available funds, to (i) pay the costs of acquiring and constructing capital improvements to the Stormwater Utility described in the Series 2011 Resolution (the "Series 2011 Project"), (ii) fund a deposit to the Reserve Account or pay the costs of a Reserve Account Insurance Policy and (iii) pay costs of issuance of the Series 2011A Bonds[including the premium for a bond insurance policy]. Proceeds of the Series 2011B Bonds will provide funds, together with other available funds, to (i) currently refund, defease and redeem [all] the City's outstanding Revenue Bonds, Series 2000, previously issued in the aggregate principal amount of $52,170,000, of which $27,105,000 are now outstanding (the "Bonds to be Refunded"), (ii) fund a deposit to the Reserve Account [and pay the cost of a Reserve Account Insurance Policy] and (iii) pay costs of issuance of the Series 2011B BondsIincluding the premium for a bond insurance policy]. It shall be a condition to the obligation of the City to sell and deliver the Series 2011 Bonds to the Underwriters, and to the obligation of the Underwriters to purchase and accept delivery of the Series 2011 Bonds, that the entire aggregate principal amount of the Series 2011 Bonds shall PMB 424111.3 be sold and delivered by the City and accepted and paid for by the Underwriters at the Closing. (c) The Underwriters agree to make a bona fide public offering of the Series 2011 Bonds at the initial offering prices set forth on the inside cover of the Official Statement for the Series 2011 Bonds. The Underwriters, however, reserve the right to change such initial offering prices as the Underwriters shall deem necessary in connection with the marketing of the Series 2011 Bonds and to offer and sell the Series 2011 Bonds to certain dealers (including dealers depositing the Series 2011 Bonds into investment trusts, including investment trusts managed by the Underwriter) and others at prices lower than the initial offering prices set forth on the inside cover of such Official Statement. The Underwriters also reserve the right to: (i) overallot or effect transactions that stabilize or maintain the market price of the Series 2011 Bonds at a level above that which might otherwise prevail in the open market; and (ii) discontinue such stabilization, if commenced, at any time. - (d) The City agrees to deliver to the Underwriters, at such addresses as the Underwriters specify, as many copies of the Official Statement, dated today related to the Series 2011 Bonds, including the cover pages and all appendices, exhibits, reports and statements included therein or attached thereto (collectively, the "Official Statement") as the Underwriters reasonably request in order to comply with the rules of Municipal Securities Rulemaking Board (the "MSRB") and Rule 15c2-12(b)(4) under the Securities Exchange Act of 1934, as amended (the "1934 Act"). The City agrees to deliver the Official Statement, executed by the Mayor and City Manager of the City, within seven (7) business days after the execution hereof and in sufficient time to accompany any confirmation that requests payment from any customer and as may be required to enable the Underwriters to comply with such rules. (e) If, at any time before the earlier of: (i) receipt of written notice from the Underwriters pursuant to this Section l(e) or (ii) twenty-five (25) days past the end of the "underwriting period" (as such term is defined in the Rule), any event occurs with respect to the City, the Series 2011 Project or the Series 2011 Bonds as a result of which the Official Statement, as then amended or supplemented, might include an untrue statement of a material fact, or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the City shall promptly notify the Underwriters in writing of such event and shall undertake to prepare any necessary amendment or supplement to the Official Statement occasioned by the occurrence of such event; any information supplied by the City for inclusion in any amendments or supplements to the Official Statement will not contain any untrue or misleading statement of a material fact or omit to state any material PMB 4241 1 1.3 fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. Unless the City is otherwise notified by the Underwriters in writing on or prior to the date of Closing, the end of the underwriting period for the Series 2011 Bonds for all purposes of the Rule and this Purchase Agreement is the date of Closing. In the event the written notice described in the preceding sentence is given by the Underwriters to the City, such written notice shall spec9 the date after which no participating underwriter, as such term is defined in Rule 15c2-12 of the SEC (the "Rule"), remains obligated to deliver Official Statements pursuant to paragraph (b)(4) of the Rule. On or before the date of Closing (hereinafter defined), the Underwriters will file a copy of the Official Statement with the MSRB through its Electronic Municipal Market Access system ("EMMA"). (f) The City hereby approves and authorizes the delivery and distribution of the Preliminary Official Statement and the execution, delivery and distribution of the Official Statement in substantially the form of the Preliminary Official Statement presented at its Commission meeting, together with such other changes, amendments or supplements as shall be made and approved in writing by the Underwriters and the City prior to the Closing in connection with the public offering and sale of the Series 2011 Bonds. SECTION 2. The City represents and warrants to and agrees with the Underwriters as follows: (a) The Bond Resolution was adopted by the Commission at a meeting duly called and held in open session upon requisite prior public notice pursuant to the laws of the State of Florida and the standing resolutions and rules of procedure of the Commission . The City has full right, power and authority to adopt the Bond Resolution. On the date hereof, the Bond Resolution is, and, at the Closing it shall be, in full force and effect, and no portions thereof have been or shall have been supplemented, repealed, rescinded or revoked. The Bond Resolution constitutes the legal, valid and binding obligation of the City, enforceable in accordance with its terms. The Bond Resolution creates a lien upon and pledge of Net Revenues for the payment of principal and interest on the Series 2011 Bonds. (b) As of their respective dates and, with respect to the Official Statement, at the time of Closing, the statements and information contained in the Preliminary Official Statement and the Official Statement are and will be accurate in all material respects for the purposes for which their use is authorized, and do not and will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances PMB 424111.3 under which they were made, not misleading. In addition, any amendments to the Preliminary Official Statement and the Official Statement prepared and furnished by the City pursuant hereto will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Series 2011 Bonds, the Bond Resolution, the Series 2011 Continuing Disclosure Agreement and the Escrow Deposit Agreement conform to the descriptions thereof set forth in the Official Statement. As of its date, the Preliminary Official Statement was deemed "final" (except for permitted omissions) by the City for purposes of paragraph (b)(l) of the Rule. On the date hereof, the Commission is the governing body of the City and the City is, and will be on the date of the Closing, duly organized and validly existing as a municipality under the Act, with the power and authority set forth therein. The City has full right, power and authority to enter into this Purchase Agreement, the Series 2011 Continuing Disclosure Agreement, the Series 2011 Escrow Deposit Agreement and the Insurance Agreement (collectively, the "Bond Documents") to issue and deliver the Series 2011 Bonds as provided in this Purchase Agreement and the Bond Resolution, to apply the proceeds of the sale of the Series 2011 Bonds for the purposes described herein and in the Official Statement, to execute and deliver the Bond Documents, and to carry out and consummate the transactions contemplated by the aforesaid documents. At meetings of the Commission that were duly called and at which a quorum was present and acting throughout, the Commission approved the execution and delivery of the Series 2011 Bonds and the Bond Documents; authorized the execution and delivery of the Official Statement; and authorized the use of the Official Statement in connection with the public offering of the Series 2011 Bonds. Upon the defeasance of the Refunded Bonds, the City represents that it will have no bonds or other indebtedness outstanding that are secured by the Net Revenues, other than as described in the Official Statement and hereby. All conditions and requirements of the Bond Resolution relating to the issuance of the Series 2011 Bonds have been complied with or fulfilled, or will be complied with or fulfilled on the date of Closing. Since September 30, 2010, there has been no material adverse change in the financial position, results of operations or condition, financial or otherwise, of the City on its Stormwater Utility other than as disclosed in the Official Statement and the City has not incurred liabilities that would materially adversely affect its ability to discharge its obligations under the Bond Resolution or the Bond PMB 4241 1 1.3 Documents, direct or contingent, other than as disclosed in the Official Statement. (h) No authorization, approval, consent or license of any governmental body or authority, not already obtained, is required for the valid and lawful execution and delivery by the City of the Series 2011 Bonds, the Bond Documents, the Official Statement and the adoption of the Bond Resolution and the performance of its obligations thereunder or as contemplated thereby; provided, however, that no representation is made concerning compliance with the registration requirements of the federal securities laws or the securities or Blue Sky laws of the various states. (i) Other than as disclosed in the Official Statement, the City is not on the date hereof, and will not be on the Closing Date, in default under any instrument to which the City is subject or by which it or its properties are or may be bound or subject, which default would (i) have a material adverse effect on the condition of the City or the Stormwater Utility, financial or otherwise or (ii) otherwise materially affect its ability to perform its obligations under the Series 2011 Bonds, the Bond Documents or the Bond Resolution. The City has not and is not now in default in the payment of the principal of or the interest on any governmental security issued or guaranteed by it after December 31,1975 which would require disclosure pursuant to Section 517.051, Florida Statutes or Rule 3E-400.003 of the Florida Department of Banking and Finance. Except as disclosed in the Official Statement, there is no claim, action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency, or public board or body, pending or, to the best of its knowledge, threatened: (i) contesting the corporate existence or powers of the Commission, or the titles of the officers of the Commission to their respective offices; (ii) seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Series 2011 Bonds, the application of the proceeds of the Series 2011 Bonds or the defeasance of the Bonds to be Refunded or in which an unfavorable decision, ruling or finding would materially adversely affect the financial position of the City or the operations of its Stormwater Utility or the validity or enforceability of the Series 2011 Bonds or the Bond Documents; (iii) contesting in any way the completeness or accuracy of the Official Statement; or (iv) challenging the City's ownership or operation of the Stormwater Utility, nor, to the best knowledge of the City, is there any basis therefor. (k) When duly executed and delivered, the Series 2011 Bonds, and the Bond Documents will have been duly authorized, executed, issued and delivered and will constitute valid and binding obligations of the City, enforceable in accordance with their respective terms, except insofar as the enforcement thereof PMB 4241 1 1.3 (r) SECTION 3. may be limited by bankruptcy, insolvency or similar laws relating to the enforcement of creditors' rights. The City will furnish such information, execute such instruments and take such other action in cooperation with the Underwriters as the Underwriters may reasonably request to: (i) qualify the Series 2011 Bonds for offer and sale under the "blue sky" or other securities laws and regulations of such states and other jurisdictions of the United States of America as the Underwriters may designate; (ii) determine the eligibility of the Series 2011 Bonds for investment under the laws of such states and other jurisdictions; and (iii) continue such qualifications in effect so long as required for the distribution of the Series 2011 Bonds; provided that the City will not be required to quahfy to do business or submit to service of process in any such jurisdiction. The City has not been notified of any listing or the proposed listing of the City by the Internal Revenue Service as an issuer whose arbitrage certifications may not be relied upon. Any certificate signed by any official of the City and delivered to the Underwriters will be deemed to be a representation by the City to the Underwriters as to the statements made therein. The City will undertake, pursuant to the Series 2011 Continuing Disclosure Agreement, to provide or cause to be provided to the MSRB certain annual financial information and operating data of the City, and certain notices of material events, as more fully set forth in the Series 2011 Continuing Disclosure Agreement. A description of the undertaking will be set forth in the Official Statement. The Financial Statements included in the Official Statement have been prepared in accordance with generally accepted accounting principles applied on a consistent basis with that of the audited combined financial statements of the City and fairly present the financial condition and results of the operations of the City and the Stormwater Utility at the dates and for the periods indicated. The City will provide to the rating agencies rating the Series 2011 Bonds appropriate periodic credit information necessary for maintaining the ratings on the Series 201 1 Bonds. The City has at all times complied with its obligations under the Rule. PMB 424111.3 On or before the acceptance by the City of this Purchase Agreement, the Underwriters shall receive from the City a certified copy of the Bond Resolution. SECTION 4. At 10:OO a.m. (Eastern Time) on ,2011, or at such earlier or later time or date as the parties hereto mutually agree upon (the "Closing"), the City will cause to be delivered to the Underwriters, at the offices of Squire, Sanders & Dempsey L.L.P. ("Bond Counsel"), in the City of Miami, Florida or at such other place upon which the parties hereto may agree, the documents mentioned in Section 5@) of this Purchase Agreement and shall release the Series 2011 Bonds, in the form of one typewritten, fully registered bond with a CUSIP identification number thereon for each maturity of each Series of the Series 2011 Bonds, duly executed and authenticated and registered in the name of Cede & Co., as nominee for DTC, through the DTC FAST System to the Underwriters. At the Closing, the Underwriters shall evidence their acceptance of delivery of the Series 2011 Bonds and pay the purchase price of the Series 2011 Bonds as set forth in Section l(a) of this Purchase Agreement. SECTION 5. The Underwriters have entered into this Purchase Agreement in reliance upon the representations and agreements of the City herein and the performance by the City of its obligations hereunder, both as of the date hereof and as of the date of Closing. The City's and the Underwriters' obligations under this Purchase Agreement are and will be subject to the following further conditions: (a) at the time of Closing: (i) the Bond Resolution and the Bond Documents will be in full force and effect and will not have been amended, modified or supplemented, except as may have been agreed to in writing by the Underwriters; (ii) the proceeds of the sale of the Series 2011 Bonds shall be applied as described in the Official Statement; and (iii) the Commission shall have duly adopted and there shall be in full force and effect, resolutions as, in the opinion of Bond Counsel, shall be necessary in connection with the transactions contemplated hereby; @) at or prior to the Closing, the Underwriters shall receive the following documents: (i) the approving opinion of Bond Counsel with respect to the Series 2011 Bonds, dated the date of Closing, substantially in the form attached to the Official Statement as Appendix G, either addressed to the Underwriters and the City or accompanied by a letter addressed to the Underwriters indicating that it may rely on said opinion as if it were addressed to them; PMB 424111.3 PMB 4241 1 1.3 (ii) a supplemental opinion of Bond Counsel, dated the date of the Closing and addressed to the Underwriters to the effect that: (A) they have reviewed the statements in the Official Statement under the captions "INTRODUCTION, "PURPOSE OF THE SERIES 2011 BONDS", "REFUNDING PLAN ", "THE SERIES 2011 BONDS" (except for information under the subheading "Book-Entry Only System"), "SECURITY FOR THE SERIES 2011 BONDS", and "CONTINUING DISCLOSURE", and believe that, insofar as such statements purport to summarize certain provisions of the Series 2011 Bonds, the Bond Resolution and the Series 2011 Continuing Disclosure Agreement, such statements present an accurate summary of such provisions; (B) they have reviewed the statements in the Official Statement under the caption "TAX MATTERS" and believe that such statements are accurate; and (C) the Series 2011 Bonds are exempt from the registration requirements of the Securities Act of 1933, as amended (the "1933 Act"); (iii) the opinion of Edwards Angel1 Palmer & Dodge LLP, Counsel for the Underwriters, dated the date of Closing and addressed to the Underwriters in form and substance acceptable to the Underwriters, including an opinion that the Continuing Disclosure Agreement complies, in all material respects, with the requirements of Rule 15(c)2- 12(b)(5); (iv) the opinion of Jose Smith, Esq., Counsel to the City, dated the date of Closing and addressed to the Underwriters and the City, to the effect that: (A) the Commission is the governing body of the City and the City is validly existing as a municipality under the Act, with all corporate power necessary to conduct the operations described in the Official Statement and to carry out the transactions contemplated by this Purchase Agreement; (B) the City has obtained all governmental consents, approvals and authorizations necessary for execution and delivery of the Bond Documents, for issuance of the Series 2011 Bonds and for execution and delivery of the Official Statement and consummation of the transactions contemplated thereby and hereby; (C) the City has full legal right, power and authority to pledge and grant a lien on the Net Revenues for the security of the Series 2011 Bonds; (D) the City Commission has duly adopted the Bond Resolution and approved the form, execution, distribution and delivery of the Official Statement; (E) the Series 2011 Bonds, and the Bond Documents have each been duly authorized, executed and delivered by the City and, assuming due authorization, execution and delivery thereof by the other parties thereto, if any, each constitutes a valid and binding agreement of the City, enforceable in accordance with its terms; (F) the information in the PMB 4241 11.3 Official Statement with respect to the City (excluding financial, statistical and demographic information and information relating to DTC, as to which no opinion need be expressed) is, to the best knowIedge of such counsel after due inquiry with respect thereto, correct in all material respects and does not omit any matter necessary in order to make the statements made therein regarding such matters, in light of the circumstances under which such statements are made, not misleading, and, based on its participation as counsel to the City, such counsel has no reason to believe that the Official Statement (excluding financial, statistical and demographic information and information relating to DTC) contained as of its date or contains any untrue statement of a material fact or omitted or omits to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (G) except as disclosed in the Official Statement under the caption "LITIGATION," there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body pending or, to the best of knowledge of such counsel, threatened, - ~ against or affecting the Commission or the City challenging the validity of the Series 2011 Bonds, the Bond Documents, or any of the transactions contemplated thereby or by the Official Statement, or challenging the existence of the City or the respective powers of the several offices of the officials of the City or the titles of the officials holding their respective offices, or challenging the City's ownership or operation of the Stormwater Utility or the pledge of the Net Revenues for the payment of the Series 2011 Bonds, nor is there any basis therefor; (H) the execution and delivery of the Bond Documents and the issuance of the Series 2011 Bonds, and compliance with the provisions thereof, under the circumstances contemplated thereby, do not and will not in any material respect conflict with or constitute on the part of the City a breach of or default under, or result in the creation of a lien on any property of the City (except as contemplated therein) pursuant to any note, mortgage, deed of trust, indenture, resolution or other agreement or instrument to which the Commission or the City is a party, or any existing law, regulation, court order or consent decree to which the Commission or the City is subject; a certificate, dated the date of Closing, signed on behalf of the City by the Mayor and the City Manager of the City, setting forth such matters as the Underwriters may reasonably require, including that each of the representations of the City contained in Section 2 hereof was true and accurate in all material respects on the date when made, has been true and accurate in all material respects at all times since, and continues to be true and accurate in all material respects on the date of Closing as if made on such date; and stating that to the best of their knowledge, no event affecting the City, the Series 2011 Project, the Stormwater Utility or the Series 2011 Bonds has occurred since the date of the Official Statement which should be disclosed therein for the purpose for which it is used or which is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect as of the date of Closing; (vi) a customary signature certificate, dated the date of Closing, signed on behalf of the City by the City Clerk of the City; (vii) letters from Moody's Investors Service, Inc. and Standard & Poor's Ratings Services addressed to the City, to the effect that the Series 2011 Bonds have been assigned insured ratings of "" and "-", respectively, [and underlying ratings of " " and " ", respectively] which ratings shall be in effect as of the Closing date; (viii) [a customary authorization and incumbency certificate, dated the date of Closing, signed by authorized officers of the Paying Agent and Bond Registrar;] (ix) copies of the Blue Sky Survey and Legal Investment Survey, if any, prepared by Counsel to the Underwriters, indicating the jurisdictions in which the Series 2011 Bonds may be sold in compliance with the "blue sky" or securities laws of such jurisdictions; (x) such additional documents as may be required by the Bond Resolution to be delivered as a condition precedent to the issuance of the Series 2011 Bonds; (xi) the escrow verification report of with respect to the defeasance of the Refunded Bonds; (xii) one executed copy of a letter from the Consulting Engineers and Rate Consultant consenting to the references to them in the Official Statement and inclusion of its Report of Consulting Engineer as Appendix B to the Official Statement; (xiii) one executed copy of certificates of each of the Public Works Director and the Consulting Engineers to the effect that the information contained in the Official Statement under the caption "THE STORMWATER UTILITY" is accurate and does not omit to state a material fact necessary in order to PMB 4241 11.3 (xi make the statements made therein, in light of the circumstances under which they were made, not misleading; a certified copy of the Insurance Policy and the Series 2011 Reserve Account Policy accompanied by a certificate of, or opinion of counsel to, the Insurer to the effect that the information relating to the Insurer appearing under the caption "MUNICIPAL BOND INSURANCE in the Official Statement does not contain any untrue statement of a material fact or omit to state a material fact required in order to make the statements therein, in light of the circumstances under which they were made, not misleading; (xv) one executed copy of a certificate from the Insurer to the effect that it is not currently in default, nor has it been in default at any time with respect to the payment of the principal of, or interest on, any obligation guaranteed by the Insurer and the opinion of counsel to the Insurer to the effect that (A) the Insurer is duly incorporated and validly existing under - " the laws of the State of and is licensed and authorized to issue the Insurance Policy and the Series 2011 Reserve Account Insurance Policy under the laws of the State of and the State of Florida; and (B) the Insurance Policy and the Series 2011 Reserve Account Insurance Policy have been duly executed and are valid and binding obligations of the Insurer enforceable in accordance with their terms; and (xvi) such additional legal opinions, proceedings, instruments and other documents as the Underwriters, Underwriters' Counsel or Bond Counsel may reasonably request. All of the opinions, letters, certificates, instruments and other documents mentioned in this Purchase Agreement shall be deemed to be in compliance with the provisions of this Purchase Agreement if, but only if, in the reasonable judgment of the Underwriters and Underwriters' Counsel, they are satisfactory in form and substance. SECTION 6. If the City shall be unable to satisfy the conditions to the Underwriters' obligations contained in this Purchase Agreement or if the Underwriters' obligations are terminated for any reason permitted by this Purchase Agreement, this Purchase Agreement shall terminate and the Underwriters and the City shall have no further obligation hereunder, except that the respective obligations of the parties hereto provided in Section 7 hereof shall continue in full force and effect. In the event that the Underwriters fail (other than for a reason permitted under this PMB 42411 1.3 Purchase Agreement) to accept and pay for the Series 2011 Bonds at the Closing, the Underwriters shall pay to the City an amount equal to 1% of the aggregate principal amount of the Series 2011 Bonds as and for full liquidated damages for such failure and for any and all defaults hereunder on the part of the Underwriters, and thereupon, except with respect to the obligations of the Underwriters set forth in Section 7(b) hereof, all claims and rights hereunder against the Underwriters shall be fully released and discharged, it being understood and agreed by the City and the Underwriters that actual damages in such circumstances may be difficult or impossible to compute. SECTION 7 (a) The following costs and expenses relating to the transaction contemplated or described in this Purchase Agreement shall be borne and paid by the City regardless of whether the transaction contemplated herein shall close: printing of Series 2011 Bonds; printing or copying of closing documents (including the Preliminary Official Statement and the Official Statement) in such reasonable quantities as the Underwriters may request; fees and disbursements of Bond Counsel; fees and disbursements of the City's Financial Advisor; any accounting fees; the ~ond Registrar fees; fees of the rating agencies; and any other fees as described in Schedule A-1 hereto. (b) The Underwriters will pay: (i) the fees and disbursements of Underwriters' Counsel otherwise unpaid by the City; (ii) all advertising expenses in connection with the public offering of the Series 2011 Bonds; and (iii) the cost of preparing, printing and distributing the Blue Sky and Legal Investment Surveys, if any, and the filing fees required by the "blue sky" laws of various jurisdictions. SECTION 8. The City acknowledges and agrees that (i) the purchase and sale of the Series 2011 Bonds pursuant to this Purchase Agreement is an arm's-length commercial transaction between the City and the Underwriters; (ii) in connection therewith and with the disclussions, undertakings and procedures leading up to the consummation of such transaction, the Underwriters are and have been acting solely as a principal and are not acting as the agent or fiduciary of the City; (iii) the Underwriters have not assumed an advisory or fiduciary responsibility in favor of the City with respect to the offering contemplated hereby or the discussions, undertakings and procedures leading thereto (irrespective of whether the Underwriters have provided other services or are currently providing other services to the City on other matters) and the Underwriters have no obligation to the City with respect to the offering contemplated hereby except the obligations expressly set forth in this Purchase Agreement; and (iv) the City has consulted its own legal, financial and other advisors to the extent it has deemed appropriate. 13 PMB 424111.3 245 SECTION 9. The Underwriters shall have the right to cancel their obligations hereunder by notifying the City in writing or by telegram of their election to do so between the date hereof and the Closing if, at any time hereafter and on or prior to the Closing: (a) A committee of the House of Representatives or the Senate of the Congress of the United States shall have pending before it legislation, or a tentative decision with respect to legislation shall be reached by a committee of the House of Representatives or the Senate of the Congress of the United States of America, or legislation shall be favorably reported by such a committee or be introduced, by amendment or otherwise, in, or be passed by, the House of Representatives or the Senate, or recommended to the Congress of the United States of America for passage by the President of the United States of America, or be enacted by the Congress of the United States of America, or an announcement or a proposal for any such legislation shall be made by a member of the House of Representatives - * or the Senate of the Congress of the United States, or a decision by a court established under Article 111 of the Constitution of the United States of America or the Tax Court of the United States of America shall be rendered, or a ruling, regulation, or order of the Treasury Department of the United States of America or the Internal Revenue Service shall be made or proposed having the purpose or effect of imposing federal income taxation, or any other event shall have occurred which results in or proposes the imposition of federal income taxation, upon revenues or other income of the general character to be derived by the City, any of its affiliates, state and local governmental units or by any similar body or upon interest received on obligations of the general character of the Series 2011 Bonds which, in the Underwriters' opinion, materially and adversely affects the market price of the Series 2011 Bonds. (b) Any legislation, ordinance, rule, or regulation shall be introduced in or be enacted by any governmental body, department, or agency of the United States or of any state, or a decision by any court of competent jurisdiction within the United States or any state shall be rendered which, in the Underwriters' reasonable opinion, materially adversely affects the market price of the Series 2011 Bonds. (c) A stop order, ruling, regulation, or official statement by, or on behalf of, the Securities and Exchange Commission or any other governmental agency having jurisdiction of the subject matter shall be issued or made to the effect that the issuance, offering, or sale of obligations of the general character of the Series 2011 Bonds, or the issuance, offering, or sale of the Series 2011 Bonds, including all the underlying obligations, as contemplated hereby or by the Official Statement, is in violation or would be in violation of any provisions of the federal securities laws, 14 PMB 4241 1 1.3 including without limitation the registration provisions of the 1933 Act, or the registration provisions of the 1934 Act, or the qualification provisions of the 1939 Act. (d) Legislation shall be introduced by amendment or otherwise in, or be enacted by, the Congress of the United States of America, or a decision by a court of the United States of America shall be rendered to the effect that obligations of the general character of the Series 2011 Bonds, including all the underlying obligations, are not exempt from registration under or from other requirements of the 1933 Act or the 1934 Act, or with the purpose or effect of otherwise prohibiting the issuance, offering, or sale of obligations of the general character of the Series 2011 Bonds, as contemplated hereby or by the Official Statement. (e) Any event shall have occurred, or information shall have become known, which, in the Underwriters' reasonable opinion, makes untrue in any material respect any representation by or certificate of the City hereunder, or any statement or information furnished to the Underwriters by the City for use in connection with < the marketing of the Series 2011 Bonds or any material statement or information contained in the Official Statement as originally circulated contains an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; provided, however, that the City shall be granted a reasonable amount of time in which to cure any such untrue or misleading statement or information. (f) Additional material restrictions not in force as of the date hereof shall have been imposed upon trading in securities generally by any governmental authority or by any national securities exchange. (g) The New York Stock Exchange or any other national securities exchange, or any governmental authority, shall impose, as to Series 2011 Bonds or obligations of the general character of the Series 2011 Bonds, any material restrictions not now in force, or increase materially those now in force, with respect to the extension of credit by, or a change to the net capital requirements of, the Underwriters. (h) A general banking moratorium or suspension or limitation of banking services shall have been established by federal, Florida or New York authorities or a major financial crisis or material disruption in commercial banking or securities settlement or clearance services shall have occurred. (i) Any proceeding shall be pending, or to the knowledge of the Underwriters, threatened, to restrain, enjoin, or otherwise prohibit the issuance, sale, or delivery of the Series 2011 Bonds by the City or the purchase, offering, sale, or distribution of the Series 2011 Bonds by the Underwriters, or for any PMB 4241 11.3 investigatory or other proceedings under any federal or state securities laws or the rules and regulations of the National Association of Securities Dealers, Inc. relating to the issuance, sale, or delivery of the Series 2011 Bonds by the City or the purchase, offering, sale, or distribution of the Series 2011 Bonds by the Underwriters. A war involving the United States of America shall have been declared, or any conflict involving the armed forces of the United States of America shall have escalated, or acts of terrorism shall have been committed against the citizens or the government of the United States of America or the property of either, or any other national emergency relating to the effective operation of government or the financial community shall have occurred, which, in the Underwriters' reasonable opinion, materially adversely affects the market price of the Series 2011 Bonds. SECTION 10. Any notice or other communication to be given under this Purchase Agreement may be given by delivering the same in writing as follows: To the City at: City of Miami Beach, Florida 1700 Convention Center Drive Miami Beach, FL 33139 Attention: Patricia D. Walker, Chief Financial Officer To the Underwriters (as the Senior Managing Underwriter, the representative on behalf of the Underwriters) at: JP Morgan Securities Attention: SECTION 11. This Purchase Agreement is made solely for the benefit of the City and the Underwriters (including the successors or assigns of the Underwriters), and no other person, partnership, association or corporation shall acquire or have any right hereunder or by virtue hereof. SECTION 12. PMB 424111.3 All the representations, warranties and agreements of the Underwriters and the City in this Purchase Agreement shall remain operative and in full force and effect and shall survive delivery of and payment for the Series 2011 Bonds hereunder regardless of any investigation made by or on behalf of the Underwriters. PMB 4241 11.3 SECTION 13. This Purchase Agreement shall be governed by and construed in accordance with the laws of the State of Florida. SECTION 14. This Purchase Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement; such counterparts may be delivered by facsimile transmission. [Signature Page to Follow] PMB 4241 11.3 If the foregoing is acceptable to you, please sign below and this Purchase Agreement will become a binding agreement between the City and the Underwriters. Very Truly Yours, JP MORGAN SECURITIES, LLC. on behalf of itself and MERRILL LYNCH, PIERCE FENNER & SMITH INCORPORATED, MORGAN STANLEY & CO. INCORPORATED, and SUNTRUST ROBINSON HUMPHREY By: [Typed name] [Title] Accepted and confirmed as of the date first above written: CITY OF MIAMI BEACH, FLORIDA By: Print Name: Mayor PMB 424111.3 EXHIBIT A (Disclosure and Truth-in-Bonding Statement) $ Stormwater Revenue Bonds Series 2011A $ Stormwater Revenue Refunding Bonds, Series 20118 Mayor and City Commission City of Miami Beach, Florida 1700 Convention Center Drive Miami Beach, Florida 33139 Ladies and Gentlemen: In connection with the proposed execution and delivery of the $ City of Miami Beach, Florida Stormwater Revenue Bonds, Series 2011A (the "Series 2011A Bonds") and the $ City of Miami Beach, Florida Stormwater Revenue Refunding Bonds, Series 2011B (the "Series 2011B Bonds" and together with the Series 2011A Bonds, the "Series 2011 Bonds"), JP Morgan Securities, LLC (the "Senior Managing Underwriter"), acting on behalf of itself and Merrill Lynch, Pierce Fenner & Smith Incorporated, Morgan Stanley & Co. Incorporated, and SunTrust Robinson Humphrey (collectively, with the Senior Managing Underwriter, the "Underwriters"), has agreed to underwrite a public offering of the Series 2011 Bonds. Arrangements for underwriting the Series 2011 Bonds will include a Bond Purchase Agreement between the City of Miami Beach, Florida (the "City") and the Underwriters which will embody the negotiations in respect thereof (the "Purchase Agreement"). The purpose of this letter is to furnish, pursuant to the provisions of Section 218.385, Florida Statutes, as amended, certain information in respect of the arrangements contemplated for the underwriting of the Series 2011 Bonds as follows: (a) The nature and estimated amounts of expenses to be incurred by the Underwriters in connection with the purchase and reoffering of the Series 2011 Bonds are set forth in Schedule A-1 attached hereto. @) No person has entered into an understanding with the Underwriters or, to the knowledge of the Underwriters, with the City for any paid or promised compensation or valuable consideration, directly or indirectly, expressly or PMB 4241 1 1.3 implied, to act solely as an intermediary between the City and the Underwriters or to exercise or attempt to exercise any influence to effect any transaction in connection with the purchase of the Series 2011 Bonds by the Underwriters. (c) The underwriting spread is $ ($ /$1,000). [The underwriting spread does not include a management fee.] (d) No other fee, bonus or other compensation has been or will be paid by the Underwriters in connection with the issuance of the Series 2011 Bonds to any person not regularly employed or retained by the Underwriters, including any "finder" as defined in Section 218.386(1)(a), Florida Statutes, as amended. (e) The names and addresses of the Underwriters are: JP Morgan Securities, LLC Attention: Merrill Lynch, Pierce Fenner & Smith Incorporated Attention: Morgan Stanley & Co. Incorporated Attention: SunTrust Robinson Humphrey Attention: (f) The City is proposing to issue $ principal amount of the Series 2011A Bonds and $ principal amount of the Series 2011B Bonds, all as described in the Official Statement dated , 2011 relating to the Series 2011 Bonds (the "Official Statement"). These obligations are expected to be repaid over a period of approximately - years and - years, respectively. At a true interest cost rate of %, total interest paid over the life of the Series 2011A Bonds will be $ and at a true interest cost rate of %, total interest paid over the life of the Series 2011B Bonds will be $ Proceeds of the Series 2011A Bonds will provide funds, together with other PMB 4241 1 1.3 PMB 424 1 1 1.3 available funds, to (i) pay the costs of acquiring and constructing improvements to the City's Stormwater Utility (the "Series 2011 Project"), (ii) fund a deposit to the Reserve Account or pay the costs of a Reserve Account Insurance Policy and (iii) pay costs of issuance of the Series 2011A Bonds. Proceeds of the Series 20118 Bonds will provide funds, together with other available funds, to (i) currently refund [all] the City's outstanding Revenue Bonds, Series 2000, previously issued in the aggregate principal amount of $52,170,000, of which $27,105,000 are now outstanding (the "Refunded Bonds"), (ii) fund a deposit to the Reserve Account or pay the cost of a Revenue Account Insurance Policy and (iii) pay costs of issuance of the Series 2011B Bonds]. The anticipated source of repayment or security for the Series 2011 Bonds is the Net Revenues (as defined in the Bond Resolution), which in turn is defined in the Purchase Agreement). Authorizing these obligations will result in a maximum amount of $ of the aforementioned funds not being available annually to finance the other services of the City over a period of approximately - years. We understand that you do not require any further disclosure from the Underwriters pursuant to Section 218.385, Florida Statutes, as amended. Very Truly Yours, JP MORGAN SECURITIES, LLC PMB 4241 11.3 By: Inamel [title] SCHEDULE "A-1" DETAILED BREAKDOWN OF UNDERWRITERS' DISCOUNT $ $ Stormwater Revenue Bonds Stormwater Revenue Refunding Bonds, Series 2011A Series 2011B Spread Breakdown $/$1,000 Amount Underwriter/Takedown: Expenses: Total Expense Breakdown Dayloan Cusips SIFMA Fee Bookrunning Fee Communication, Travel and Misc. Expenses Underwriters' Counsel Expenses Underwriters' Counsel Fee Total Amount PMB 42411 1.3 EXHIBIT B $ SERIES 2011A BONDS MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, MELDS, PRICES AND INITIAL CUSIP NUMBERS Maturity Principal Interest Rate Yield Price Initial CUSIP I 1) Amount Number 2011 $ SERIES 20118 BONDS MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, MELDS, PRICES AND INITIAL CUSIP NUMBERS Maturity Principal I 1) Amount Interest Rate Yield 2022 Initial CUSIP Number $ % Term Bond Due ,20; Yield %; Price %; Initial CUSIP: $ % Term Bond Due ,20> Yield %; Price %; Initial CUSIP: [REDEMPTION] PMB 4241 1 1.3 CITY OF MIAMI BEACH, FLORIDA and U.S. BANK NATIONAL ASSOCIATION, as Escrow Agent ESCROW DEPOSIT AGREEMENT Relating to STORMWATER REVENUE BONDS, SERIES 2000 DATED AS OF -7 2011 ESCROW DEPOSIT AGREEMENT THIS ESCROW DEPOSIT AGREEMENT (the "Agreement") made and entered into as of 201 1, by and between the CITY OF MIAMI BEACH, FLORIDA (the "City") and U.S. B~K NATIONAL ASSOCIATION, as Escrow Agent (the "Escrow Agent"). WITNESSETH: WHEREAS, the City has heretofore issued its $52,170,000 aggregate principal amount City of Miami Beach, Florida Stormwater Revenue Bonds, Series 2000, dated as of October 1, 2000, presently outstanding in the principal amount of $27,105,000 (the "Outstanding Series 2000 Bonds"), pursuant to the provisions of Resolution No. 2000-24127, adopted by the Mayor and City Commission of the City (the "Commission") on October 18, 2000 (the "Bond Resolution"); and WHEREAS, the City desires to refund, defease and redeem the Outstanding Series 2000 Bonds as more particularly described in Schedule A attached hereto and made a part hereof (hereinafter referred to as the "Refunded Bonds"); and WHEREAS, the City has issued its $ aggregate principal amount City of Miami Beach, Florida Stormwater Revenue Refunding Bonds, Series 201 1B (the "Bonds"), pursuant to the provisions of the Bond Resolution and Resolution No. 201 1- adopted by the ~ornrnissio~ on -, 201 1, a portion of the proceeds of which Bonds is to be deposited with the Escrow Agent to provide, with investment earnings thereon and certain other available moneys, for the defeasance and redemption of the Refunded Bonds; and WHEREAS, a portion of the proceeds derived from the sale of the Bonds, together with the other available moneys, will be applied to the purchase of Government Obligations (as such term is hereinafter defined), which will mature and produce investment income and earnings at such time and in such amount as will be sufficient, together with certain moneys remaining uninvested, to pay upon the redemption thereof, the principal of and interest on the Refunded Bonds as more specifically set forth herein; and WHEREAS, in order to provide for the proper and timely application of the moneys deposited hereunder, the maturing principal amount of the Government Obligations purchased therewith, and investment income and earnings derived therefrom to the payment of the Refunded Bonds, it is necessary for the City to enter into this Agreement with the Escrow Agent; NOW, THEREFORE, the City and the Escrow Agent, in consideration of the foregoing and the mutual covenants herein set forth and in order to secure the payment of the principal of and interest on all of the Refunded Bonds according to their tenor and effect, do hereby agree as follows: ARTICLE I CREATION AND CONVEYANCE OF TRUST ESTATE Section 1.01. Creation and Convevance of Trust Estate. The City hereby grants, warrants, remises, releases, conveys, assigns, transfers, aliens, pledges, sets over and confirms unto the Escrow Agent and to its successors in the trust hereby created, and to it and its assigns forever, all and singular the property hereinafter described, to wit: DIVISION I All right, title and interest in and to (i) $ in moneys deposited directly with the Escrow Agent and derived from the proceeds of the Bonds upon issuance and delivery of the Bonds and execution of and delivery of this Agreement, and (ii) $ in moneys derived from the Bond Service Subaccount created under the Bond Resolution (such moneys described in (ii), the "Other Moneys"). DIVISION I1 All right, title and interest in and to the Government Obligations described in Schedule B attached hereto and made a part hereof, together with the income and earnings thereon. DIVISION I11 Any and all other property of every kind and nature from time to time hereafter, by delivery or by writing of any kind, conveyed, pledged, assigned or transferred as and for additional security hereunder by the City, or by anyone on behalf of the City to the Escrow Agent for the benefit of the Refunded Bonds. DIVISION IV All property which is by the express provisions of this Agreement required to be subject to the pledge hereof and any additional property that may, from time to time hereafter, by delivery or by writing of any kind, by the City, or by anyone in its behalf, be subject to the pledge hereof. TO HAVE AND TO HOLD, all and singular, the Trust Estate (as such term is hereinafter defined), including all additional property which by the terms hereof has or may become subject to the encumbrances of this Agreement, unto the Escrow Agent, and its successors and assigns, forever in trust, however, for the sole benefit and security of the holders from time to time of the Refunded Bonds, but if the principal of and interest on all of the Refunded Bonds shall be fully and promptly paid upon the redemption thereof, in accordance with the terms thereof, then this Agreement shall be and become void and of no further force and effect except as otherwise provided herein; otherwise the same shall remain in full force and effect, and upon the trusts and subject to the covenants and conditions hereinafter set forth. ARTICLE I1 DEFINITIONS Section 2.01. Definitions. In addition to words and terms elsewhere defined in this Agreement, the following words and terms as used in this Agreement shall have the following meanings, unless some other meaning is .plainly intended. ''Government Obligations" shall mean direct general non-callable obligations of the United States of America. "Trust Estate", "trust estate" or "pledged property" shall mean the property, rights and interests described or referred to under Divisions I, 11, I11 and IV in Article I above. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Words importing the singular number shall include the plural number and vice versa unless the context shall otherwise indicate. The word "person" shall include corporations, associations, natural persons and public bodies unless the context shall otherwise indicate. Reference to a person other than a natural person shall include its successors. ARTICLE I11 ESTABLISHMENT OF ESCROW DEPOSIT TRUST FUND; FLOW OF FUNDS Section 3.01. Creation of Escrow Deposit Trust Fund and Deposit of Moneys. There is hereby created and established with the Escrow Agent a special and irrevocable trust fund designated "City of Miami Beach, Florida Stormwater Revenue Bonds, Series 2000 Escrow Deposit Trust Fund" (the "Escrow Deposit Trust Fund"), to be held by the Escrow Agent for the sole benefit of the holders of the Refunded Bonds and accounted for separate and apart from the other funds of the City and, to the extent required by law, of the Escrow Agent. Concurrently with the delivery of this Agreement, the City herewith causes to be deposited with the Escrow Agent and the Escrow Agent acknowledges receipt of immediately available moneys for deposit in the Escrow Deposit Trust Fund in the amount of $ , consisting of $ - from the proceeds of the Bonds and $ in Other Moneys, all of which, when invested in Government Obligations (other than $ from the Other Moneys to be held uninvested), will provide moneys sufficient to pay the principal of and interest on the Refunded Bonds, upon the redemption thereof, as more particularly described in Schedule C attached hereto and made a part hereof. Section 3.02. Payment of Refunded Bonds. The Bond proceeds and Other Moneys received by the Escrow Agent will be sufficient to purchase $ par amount of Government Obligations, all as listed in Schedule B attached hereto and made a part hereof, which will mature in principal amounts and earn income at such times so that sufficient moneys will be available to pay when redeemed all principal of and interest on the Refunded Bonds. Notwithstanding the foregoing, if the amounts deposited in the Escrow Deposit Trust Fund are insufficient to make said payments of principal and interest, the City shall cause to be deposited into the Escrow Deposit Trust Fund the amount of any deficiency immediately upon notice from the Escrow Agent. Section 3.03. Irrevocable Trust Created. The deposit of moneys and Government Obligations or other property hereunder in the Escrow Deposit Trust Fund shall constitute an irrevocable deposit of said moneys and Government Obligations and other property hereunder for the sole benefit of the holders of the Refunded Bonds, subject to the provisions of this Agreement. The holders of the Refunded Bonds, subject to the provisions of this Agreement, shall have an express lien on all moneys and principal of and earnings on the Government Obligations and other property in the Escrow Deposit Trust Fund. The moneys deposited in the Escrow Deposit Trust Fund and the matured principal of the Government Obligations and other property hereunder and the interest thereon shall be held in trust by the Escrow Agent, and shall be applied for the payment of Refunded Bonds, as more specifically set forth in Schedule C hereto. Section 3.04. Purchase of Government Obligations. The Escrow Agent is hereby directed immediately to purchase the Government Obligations listed in Schedule B from the proceeds of the Bonds and the Other Moneys as described in Sections 3.01 and 3.02 hereof. The Escrow Agent shall purchase the Government Obligations solely from the moneys deposited in the Escrow Deposit Trust Fund as provided in this Agreement. The Escrow Agent shall apply the moneys deposited in the Escrow Deposit Trust Fund and the Government Obligations purchased therewith, together with all income or earnings thereon, in accordance with the provisions hereof. The Escrow Agent shall have no power or duty to invest any moneys held hereunder or to make substitutions of the Government Obligations held hereunder or to sell, transfer or otherwise dispose of the Government Obligations held hereunder except as provided in this Agreement. The Escrow Agent is hereby directed not to invest $ from the Other Moneys deposited in the Escrow Deposit Trust Fund simu1taneously with the delivery of this Agreement. The City covenants to take no action in the investment, reinvestment or security of the Escrow Deposit Trust Fund in violation of this Agreement and recognizes that any such action in contravention of this Agreement might cause the Refimded Bonds or the Bonds to be classified as "arbitrage bonds" under the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (the "Code"). Section 3.05. Substitution of Certain Government Obligations. (a) If so directed in writing by the City on the date of delivery of this Agreement, the Escrow Agent shall accept in substitution for all or a portion of the Government Obligations listed in Schedule B, Government Obligations (the "Substituted Securities"), the principal of and interest on which, together with any Government Obligations listed in Schedule B for which no substitution is made and moneys held uninvested by the Escrow Agent, will be sufficient to pay all principal of and interest of the Refunded Bonds as set forth in Schedule C hereof. The foregoing notwithstanding, the substitution of Substituted Securities for any of the Government Obligations listed in Schedule B may be effected only upon compliance with Section 3.05(b)(l) and (2) below. (b) If so directed in writing by the City at any time during the term of this Agreement, the Escrow Agent shall sell, transfer, exchange or otherwise dispose of, or request the redemption of, all or a portion of the Government Obligations then held in the Escrow Deposit Trust Fund and shall substitute for such Government Obligations other Government Obligations, designated by the City, and acquired by the Escrow Agent with the proceeds derived from the sale, transfer, disposition or redemption of or by the exchange of such Government Obligations held in the Escrow Deposit Trust Fund, but only upon the receipt by the Escrow Agent of: (1) an opinion of nationally recognized counsel in the field of law relating to municipal bonds stating that such substitution will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Refunded Bonds and the Bonds and is not inconsistent with the statutes and regulations applicable to the Refunded Bonds and the Bonds; and (2) verification by a firm of independent certified public accountants stating that the principal of and interest on the substituted Government Obligations, together with any Government Obligations and any uninvested moneys remaining in the Escrow Deposit Trust Fund, will be sufficient, without reinvestment, to pay the principal of and interest on the Refunded Bonds as set forth in Schedule C hereof. Any moneys resulting from the sale, transfer, disposition or redemption of the Government Obligations held hereunder and the substitution therefor of other Government Obligations not required to be applied for the payment of such principal of and interest on the Refunded Bonds (as shown in the verification report described in Section 3.05(b)(2) hereof delivered in connection with such substitution), shall be transferred to the City for deposit in the Enterprise Fund described in the Bond Resolution. Upon any such substitution of Government Obligations pursuant to Section 3.05, Schedule B hereto shall be appropriately amended to reflect such substitution. The Escrow Agent shall be under no duty to inquire whether the Government Obligations as deposited in the Escrow Deposit Trust Fund are properly invested under the Code. The Escrow Agent may rely on all specific directions in this Agreement providing for the investment or reinvestment of the Escrow Deposit Trust Fund. Section 3.06. Transfers from Escrow Deposit Trust Fund. As the principal of the Government Obligations set forth in Schedule B shall mature and be paid, and the investment income and earnings thereon are paid, the Escrow Agent, in its capacity of Bond Registrar (as defined in the Bond Resolution) with respect to the Refunded Bonds (the "Refunded Bonds Bond Registrar"), no later than the payment date for the Refbnded Bonds, as specified in Schedule C hereof, shall pay from such moneys the principal of and interest on the Refunded Bonds, as specified in Schedule C hereof. The City hereby irrevocably determines, and irrevocably instructs the Refunded Bonds Bond Registrar, to call the Refunded Bonds for redemption on -7 - at a redemption price of 100% of the principal amount thereof in accordance with the Bond Resolution. The City shall perform, and shall cause the Refunded Bonds Bond Registrar to perform, as applicabie, the ~e~~onsibilities, described in the Bond Resolution, in connection with the redemption of the Refunded Bonds, including the giving of notice of redemption as required therein. The Refunded Bonds Bond Registrar is hereby directed to mail a copy of such notice of redemption to Financial Guaranty Insurance Company (the "Series 2000 Bond Insurer"). The City shall also file, or cause to be filed, a copy of such notice of redemption with the Municipal Securities Rulemaking Board (the "MSRB"). Section 3.07. Investment of Certain Moneys Remaininn in Escrow Deposit Trust Fund. Subject to the provisions of Section 3.04, the Escrow Agent shall invest and reinvest, at the written direction of the City, in Government Obligations any moneys remaining fiom time to time in the Escrow Deposit Trust Fund until such time as they are needed. Such moneys shall be reinvested in such Government Obligations for such periods and at such interest rates as the Escrow Agent shall be directed to invest by the City, which periods and interest rates shall be set forth in an opinion from nationally recognized counsel in the field of law relating to municipal bonds to the City and to the Escrow Agent, which opinion shall also be to the effect that such reinvestment of such moneys in such Government Obligations for such period and at such interest rates will not, under the statutes and regulations applicable to the Refunded Bonds and the Bonds, cause the interest on the Refunded Bonds or the Bonds to be included in gross income for federal income tax purposes and that such investment is not inconsistent with the statutes and regulations applicable to the Refunded Bonds and the Bonds. Any interest income resulting from reinvestment of moneys pursuant to this Section 3.07 not required to be applied for the payment of the principal of and interest on the Refunded Bonds shall be transferred to the City for deposit in the Enterprise Fund. Section 3.08. Escrow Deposit Trust Fund Constitutes Trust Fund. The Escrow Deposit Trust Fund created and established pursuant to this Agreement shall be and constitute a trust fund for the purposes provided in this Agreement and shall be kept separate and distinct from all other funds of the City and, to the extent required by law, of the Escrow Agent and used only for the purposes and in the manner provided in this Agreement. Section 3.09. Transfer of Funds After All Payments Required by this Agreement are Made. After all of the transfers by the Escrow Agent to the payment of the principal of and interest on the Refunded Bonds provided in Schedule C have been made, all remaining moneys and securities, together with any income and interest thereon, in the Escrow Deposit Trust Fund shall be transferred to the City for deposit in the Enterprise Fund; provided, however, that no such transfers (except transfers made in accordance with Sections 3.05 and 3.07 hereof) shall be made until all of the principal of and interest on the Refunded Bonds have been paid. ARTICLE IV CONCERNING THE ESCROW AGENT Section 4.01. Liability of Escrow Anent. The Escrow Agent shall not be liable in connection with the performance of its duties hereunder except for its own negligence, misconduct or default. The Escrow Agent shall not be liable for any loss resulting from any investments made pursuant to the terms of this Agreement. The Escrow Agent shall not be liable for the accuracy of the calculations as to the sufficiency of moneys and of the principal amount of the Government Obligations and the earnings thereon to pay the Refunded Bonds. So long as the Escrow Agent applies any moneys, Government Obligations and interest earnings therefrom to pay the Refunded Bonds as provided herein, and complies fully with the terms of this Agreement, the Escrow Agent shall not be liable for any deficiencies in the amounts necessary to pay the Refunded Bonds caused by such calculations. The duties and obligations of the Escrow Agent shall be determined by the express provisions of this Agreement. The Escrow Agent may consult with counsel with respect to any matter relevant to this Agreement, who may or may not be counsel to the City, and be entitled to receive from the City reimbursement of the reasonable fees and expenses of such counsel, and in reliance upon the opinion of such counsel have full and complete authorization and protection in respect of any action taken, suffered or omitted by it in good faith in accordance therewith. Whenever the Escrow Agent shall deem it necessary or desirable that a matter be proved or established prior to taking, suffering or omitting any action under this Agreement, such matter may be deemed to be conclusively established by a certificate signed by an authorized officer of the City and the Escrow Agent may in good faith conclusively rely upon such certificate. The Escrow Agent shall have no lien, security interest or right of set-off whatsoever upon any of the moneys or investments in the Escrow Deposit Trust Fund for the payment of fees or expenses for the services rendered by the Escrow Agent under this Agreement. Section 4.02. Permitted Acts. The Escrow Agent and its affiliates may become the owner of all or may deal in the Refunded Bonds as fully and with the same rights as if it were not the Escrow Agent. Section 4.03. Payment to Escrow Agent. The City shall pay to the Escrow Agent reasonable compensation for all services rendered by it hereunder and also its reasonable expenses, charges and other disbursements and those of its attorneys, agents and employees incurred in and about the administration and execution of the trusts hereby created, and the performance of its powers and duties hereunder, including, without limitation, all advances, counsel fees and other expenses reasonably made or incurred by the Escrow Agent in connection with such services, all as provided in Schedule D hereto. ARTICLE V MISCELLANEOUS Section 5.01. Amendments to this Agreement. This Agreement is made for the benefit of the holders from time to time of the Refunded Bonds and shall not be repealed, revoked, altered or amended without the written consent of all such holders of the Refunded Bonds, the Escrow Agent and the City; provided, however, that the City and the Escrow Agent may, without the consent of, or notice to, such holders, enter into such agreements supplemental to this Agreement which shall not adversely affect the rights of such holders and shall not be inconsistent with the terms and provisions of this Agreement for any one or more of the following purposes: (a) to cure any ambiguity or formal defect or omission in this Agreement; or (b) to grant to or confer upon the Escrow Agent for the benefit of the holders of the Refunded Bonds any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Escrow Agent. The Escrow Agent shall be entitled to rely upon an unqualified opinion of a nationally recognized counsel in the field of law relating to municipal bonds with respect to compliance with this Section. Prior to any repeal, revocation, alteration or amendment of this Agreement, the City shall provide written notice of such proposed repeal, revocation, alteration or amendment to Standard & Poor's Ratings Services, Moody's Investors Service, Inc. and Fitch Ratings at their addresses set forth below: Standard & Poor's Ratings Services 55 Water Street New York, New York 1004 1 Attn: Municipal Ratings DeskJRefunded Bonds Moody's Investors Service, Inc. 7 World Trade Center 250 Greenwich Street, 23rd Floor New York, New York 10007 Fitch Ratings One State Street Plaza New York, New York 10004 Section 5.02. Severabilitv. If any one or more of the covenants or agreements provided in this Agreement on the part of the City or the Escrow Agent to be performed should be determined by a court of competent jurisdiction to be contrary to law, such covenant or agreement shall be deemed and construed to be severable from the remaining covenants and agreements herein contained and shall in no way affect the validity of the remaining provisions of this Agreement. Section 5.03. Agreement Binding. All the covenants, proposals and agreements in this Agreement contained by or on behalf of the City or by or on behalf of the Escrow Agent shall bind and inure to the benefit of their respective successors and assigns, whether so expressed or not. Section 5.04. Notices to Escrow Agent and City. Any notice, demand, direction, request or other instrument authorized or required by this Agreement to be given to or filed with the Escrow Agent or the City, shall be deemed to have been sufficiently given or filed for all purposes of this Agreement if personally delivered and receipted for, or if sent by registered or certified United States mail, return receipt requested, addressed as follows: (a) As to the City - City of Miami Beach, Florida 1700 Convention Center Drive Miami Beach, Florida 3 3 1 3 9 Attention: Chief Financial Officer (b) As to the Escrow Agent - U.S. Bank National Association 200 South Biscayne Boulevard Suite 1870 Miami, Florida 3 3 1 3 1 Attention: Corporate Trust Services Any party hereto may, by notice sent to the other parties hereto, designate a different or additional address to which notices under this Agreement are to be sent. Section 5.05. Termination. This Agreement shall terminate when all transfers and payments required to be made by the Escrow Agent under the provisions hereof shall have been made. Section 5.06. Execution by Counterparts. This Agreement may be executed in several counterparts, all or any of which shall be regarded for all purposes as one original and shall constitute and be but one and the same instrument. Section 5.07. Notice of Defeasance. Upon deposit of the moneys with the Escrow Agent and investment thereof as provided in this Agreement, the Escrow Agent is hereby directed to mail to the registered owners of the Refunded Bonds and the Series 2000 Bond Insurer, a notice of defeasance of the Refbnded Bonds, substantially in the form attached hereto as Schedule E. The City shall also file, or cause to be filed, a copy of such notice of defeasance with the MSRB. [Remainder of Page Intentionally Left Blank] IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its duly authorized officers and, with respect to the City, its official seal to be hereunto affixed and attested as of the date first above written. CITY OF MIAMI BEACH, FLORIDA (SEAL) ATTEST: City Clerk Mayor U.S. BANK NATIONAL ASSOCIATION, as Escrow Agent By: Vice President U.S. Bank National Association, as Refunded Bonds Bond Registrar, hereby agrees to the provisions of this Agreement applicable to the Refunded Bonds Bond Registrar. U.S. BANK NATIONAL ASSOCIATION, as Refunded Bonds Bond Registrar By: Vice President Maturity Date 0910 112025 0910 112030 SCHEDULE A REFUNDED BONDS Principal Amount $ 1 1,810,000 15,295,000 Interest Rate 5.250% 5.375 Tvpe of Security SCHEDULE B INVESTMENT OF BOND PROCEEDS AND OTHER MONEYS Maturity Date Principal Amount Interest Rate $ % SCHEDULE C SCHEDULE OF PAYMENTS ON REFUNDED BONDS Principal Interest Total $ $ $ SCHEDULE D ESCROW AGENT FEES AND EXPENSES (i) In consideration of the services to be rendered by the Escrow Agent under the Agreement, the City upon execution hereof agrees to pay the Escrow Agent a one-time fee of $ to be paid at closing for all services to be incurred as Escrow Agent in connection with such services, plus agrees to pay as incurred reimbursement at cost for ordinary out-of-pocket expenses. The term "ordinary out-of-pocket expenses" means expenses of holding, investing and disbursing the Escrow Deposit Trust Fund as provided herein and includes, but is not limited to publication costs, postage and legal fees as incurred. (ii) The City shall also reimburse the Escrow Agent for any extraordinary expenses incurred by it in connection herewith. The term "extraordinary expenses" includes (a) expenses arising out of the assertion of any third party to any interest in the Escrow Deposit Tmst Fund or any challenge to the validity hereof, including reasonable attorneys' fees, (b) expenses relating to any reinvestment under Section 3.07 or substitution under Section 3.05 hereof, and (c) expenses (other than ordinary expenses) not occasioned by the Escrow Agent's misconduct or negligence. (iii) The fees and expenses payable by the City under clause (i) or (ii) above shall not be paid from the Escrow Deposit Trust Fund, but shall be paid by the City from legally available funds of the City. SCHEDULE E NOTICE OF DEFEASANCE City of Miami Beach, Florida Stormwater Revenue Bonds, Series 2000 Dated: October 1,2000 Maturity Date (September 1 ,) Principal Amount Interest Rate CUSIP Numbers* 2025 $ 11,810,000 5.250% 59324PARO 2030 15,295,000 5.375 59324PAS8 NOTICE IS HEREBY GIVEN that monies have been deposited with U.S. Bank National Association, as Escrow Agent, for the payment of the principal and interest on the above bonds (the "Bonds"), and such monies, except to the extent maintained in cash, have been invested in direct obligations of the United States of America. U.S. Bank National Association, as Bond Registrar for the Bonds, has been irrevocably instructed to call the Bonds for redemption on - - -7 - (the "Redemption Date") at a redemption price of 100% of the principal amount thereof. The moneys so deposited and invested as aforesaid has been calculated to be adequate to pay, when due, the principal of and interest on the Bonds to and including the Redemption Date. In accordance with Section 307 of Resolution No. 2000-24 127 adopted by the Mayor and City Commission of the City of Miami Beach, Florida on October 18,2000 (the "Bond Resolution"), the Bonds are no longer deemed to be outstanding under the provisions of the Bond Resolution and have ceased to be entitled to any benefit or security under the Bond Resolution other than to receive payment of principal and interest ffom such moneys. U.S. BANK NATIONAL ASSOCIATION, as Escrow Agent Dated: -9 201 1 * No representation is made as to the correctness of these CUSIP numbers either as printed on the Bonds or contained in this Notice. DISCLOSURE DISSEMINATION AGENT AGREEMENT This Disclosure Dissemination Agent Agreement (the "Disclosure Agreement"), dated as of , 201 1, is executed and delivered by the City of Miami Beach, Florida (the "Issuer") and Digital Assurance Certification, L.L.C., as exclusive Disclosure Dissemination Agent (the "Disclosure Dissemination Agent" or "DAC") for the benefit of the Holders (hereinafter defined) of the Bonds (hereinafter defined) and in order to provide certain continuing disclosure with respect to the Bonds in accordance with Rule 15~2-12 of the United States Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time (the "Rule"). The services provided under this Disclosure Agreement solely relate to the execution of instructions received from the Issuer through use ofthe DAC system and do not constitute "advice" within the meaning of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Act"). DAC will not provide any advice or recommendation to the Issuer or anyone on the Issuer's behalf regarding the "issuance of municipal securities" or any "municipal financial product" as defined in the Act and nothing in this Disclosure Agreement shall be interpreted to the contrary. - 7 SECTION 1. Definitions. Capitalized terms not otherwise defined in this Disclosure Agreement shall have the meaning assigned in the Rule or, to the extent not in conflict with the Rule, in the Official Statement (hereinafter defined). The capitalized terms shall have the following meanings: "Annual Report" means an Annual Report described in and consistent with Section 3 of this Disclosure Agreement. "Annual Filing Date" means the date, set in Sections 2(a) and 2(f), by which the Annual Report is to be filed with the MSRB. "Annual Financial Information" means annual financial information as such term is used in paragraph (b)(5)(i) of the Rule and specified in Section 3(a) of this Disclosure Agreement. "Audited Financial Statements" means the financial statements (if any) of the Issuer for the prior Fiscal Year, certified by an independent auditor as prepared in accordance with generally accepted accounting principles or otherwise, as such term is used in paragraph (b)(5)(i) of the Rule and specified in Section 3(b) of this Disclosure Agreement. "Bonds" means the bonds as listed on the attached Exhibit A, with the 9-digit CUSIP numbers relating thereto. "Certification" means a written certification of compliance signed by the Disclosure Representative stating that the Annual Report, Audited Financial Statements, Voluntary Report, Notice Event notice or Failure to File Event notice delivered to the Disclosure Dissemination Agent is the Annual Report, Audited Financial Statements, Voluntary Report, Notice Event notice or Failure to File Event notice required to be submitted to the MSRB under this Disclosure Agreement. A Certification shall accompany each such document submitted to the Disclosure Dissemination Agent by the Issuer and include the full name of the Bonds and the 9-digit CUSIP numbers for all Bonds to which the document applies. "Disclosure Representative" means the Chief Financial Officer of the Issuer or his or her designee, or such other person as the Issuer shall designate in writing to the Disclosure Dissemination Agent fiom time to time as the person responsible for providing Information to the Disclosure Dissemination Agent. "Disc1osure Dissemination Agent" means Digital Assurance Certification, L.L.C, acting in its capacity as Disclosure Dissemination Agent hereunder, or any successor Disclosure Dissemination Agent designated in writing by the Issuer pursuant to Section 9 hereof. "Failure to File Event" means the Issuer's failure to file an Annual Report on or before the Annual Filing Date. "Force Majeure Event" means: (i) acts of God, war, or terrorist action; (ii) failure or shut- down of the Electronic Mimicipal Market Access system maintained by the MSRl3; or (iii) to the extent beyond the Disclosure Dissemination Agent's reasonable control, interruptions in telecommunications or utilities services, failure, malfunction or error of any telecommunications, computer or other electrical, mechanical or technological application, service or system, computer virus, interruptions in Internet service or telephone service (including due to a virus, electrical delivery problem or similar occurrence) that affect Internet users generally, or in the local area in which the Disclosure Dissemination Agent or the MSRB is located, or acts of any government, regulatory or any other competent authority the effect of which is to prohibit the Disclosure Dissemination Agent from performance of its obligations under this Disclosure Agreement. "Holder" means any person (a) having the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries) or (b) treated as the owner of any Bonds for federal income tax purposes. "Information" means the Annual Financial Information, the Audited Financial Statements (if any), the Notice Event notices, the Failure to File Event notices and the Voluntary Reports. "MSRl3" means the Municipal Securities Rulemaking Board established pursuant to Section 15B(b)(l) of the Securities Exchange Act of 1934. "Notice Event" means any of the events enumerated in paragraph (b)(S)(i)(C) of the Rule and listed in Section 4(a) of this Disclosure Agreement. "Obligated Person" means any person, including the Issuer, who is either generally or through an enterprise, fund, or account of such person committed by contract or other arrangement to support payment of all, or part of the obligations on the Bonds (other than providers of municipal bond insurance, letters of credit, or other liquidity facilities). "Official Statement" means that Official Statement prepared by the Issuer in connection with the Bonds. "Voluntary Report" means the information provided to the Disclosure Dissemination Agent by the Issuer pursuant to Section 7. SECTION 2. Provision of Annual Reports. (a) The Issuer shall provide, annually, an electronic copy of the Annual Report and Certification to the Disclosure Dissemination Agent, not later than 30 days prior to the Annual Filing Date. Promptly upon receipt of an electronic copy of the Annual Report and the Certification, the Disclosure Dissemination Agent shall provide an Annual Report to the MSRB not later than two hundred forty (240) days after the end of each Fiscal Year, commencing with the Fiscal Year ended September 30,201 1. Such date and each anniversary thereof is the Annual Filing Date. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 3 of this Disclosure Agreement. (b) If on the fifteenth (15th) day prior to the Annual Filing Date, the Disclosure Dissemination Agent has not received a copy of the Annual Report and Certification, the Disclosure Dissemination Agent shall contact the Disclosure Representative by telephone and in writing (which may be by e-mail) to remind the Issuer of its undertaking to provide the Annual Report pursuant to Section 2(a). Upon such reminder, the Disclosure Representative shall either (i) provide the Disclosure Dissemination Agent with an electronic copy of the Annual Report and the Certification no later than two (2) business days prior to the Annual Filing Date, or (ii) instruct the Disclosure Dissemination Agent in writing that the Issuer will not be able to file the Annual Report within the time required under this Disclosure Agreement, state the date by which the Annual Report for such year will be provided and instruct the Disclosure Dissemination Agent that a Failure to File Event has occurred and to immediately send a notice to the MSRB in substantially the form attached as Exhibit B. (c) If the Disclosure Dissemination Agent has not received an Annual Report and Certification by 12:00 noon on the first business day following the Annual Filing Date for the Annual Report, a Failure to File Event shall have occurred and the Issuer irrevocably directs the Disclosure Dissemination Agent to immediately send a notice to the MSRB in substantially the form attached as Exhibit By without reference to the anticipated filing date for the Annual Report. (d) If Audited Financial Statements of the Issuer are prepared but not available prior to the Annual Filing Date, the Issuer shall, when the Audited Financial Statements are available, provide in a timely manner an electronic copy to the Disclosure Dissemination Agent, accompanied by a Certification, for filing with the MSRB. (e) The Disclosure Dissemination Agent shall: (i) verify the filing specifications of the MSRB each year prior to the Annual Filing Date; (ii) upon receipt, promptly file each Annual Report received under Sections 2(a) and 2(b) with the MSRB; (iii) upon receipt, promptly file each Audited Financial Statement received under Section 2(d) with the MSRB; (iv) upon receipt, promptly file the text of each Notice Event received under Sections 4(a) and 4(b)(ii) with the MSRB, identifying the Notice Event as instructed by the Issuer pursuant to Section 4(a) or 4(b)(ii) (being any of the categories set forth below) when filing pursuant to the Section of this Disclosure Agreement indicated: 1. "Principal and interest payment delinquencies," pursuant to Sections 4(c) and 4(a)(l); 2. "Non-Payment related defaults, if material," pursuant to Sections 4(c) and 4(a)(2); 3. "Unscheduled draws on debt service reserves reflecting financial difficulties," pursuant to Sections 4(c) and 4(a)(3); 4. "Unscheduled draws on credit enhancements reflecting financial difficulties:" pursuant to Sections 4(c) and 4(a)(4); 5. "Substitution of credit or liquidity providers, or their failure to perform," pursuant to Sections 4(c) and 4(a)(5); 6. "Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security," pursuant to Sections 4(c) and 4(a)(6); 7. "Modifications to rights of securities holders, if material," pursuant to Sections 4(c) and 4(a)(7); 8. "Bond calls, if material, and tender offers" pursuant to Sections 4(c) and 4(a)(8); 9. "Defeasances," pursuant to Sections 4(c) and 4(a)(9); 10. "Release, substitution, or sale of property securing repayment of the securities, if material," pursuant to Sections 4(c) and 4(a)(l0); 1 1. "Rating changes," pursuant to Sections 4(c) and 4(a)(l1); 12. "Bankruptcy, insolvency, receivership or similar event of the obligated person," pursuant to Sections 4(c) and 4(a)(12); 13. "The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material," pursuant to Sections 4(c) and 4(a)(13); and 14. "Appointment of a successor or additional trustee or the change of name of a trustee, if material," pursuant to Sections 4(c) and 4(a)(14). (v) upon receipt (or irrevocable direction pursuant to Section 2(c) of this Disclosure Agreement, as applicable), promptly file a completed copy of Exhibit B to this Disclosure Agreement with the MSRB, identifying the filing as "Failure to provide annual information as required" when filing pursuant to Section 2(b)(ii) or Section 2(c) of this Disclosure Agreement; (vi) upon receipt, promptly file the text of each Voluntary Report received under Section 7 with the MSRB. (vii) provide the Issuer evidence of the filings of each of the above when made, which shall be by means of the DAC system, for so long as DAC is the Disclosure Dissemination Agent under this Disclosure Agreement. (f) The Issuer may adjust the Annual Filing Date upon change of its Fiscal Year by providing written notice of such change and the new Annual Filing Date to the Disclosure Dissemination Agent and the MSRB, provided that the period between the existing Annual Filing Date and new Annual Filing Date shall not exceed one year. (g) Any Information received by the Disclosure Dissemination Agent before 6:00 p.m. Eastern time on any business day that it is required to file with the MSRB pursuant to the terms of this Disclosure Agreement and that is accompanied by a Certification and all other information required by the terms of this Disclosure Agreement will be filed by the Disclosure Dissemination Agent with the MSRB no later than 1 1 :59 p.m. Eastern time on the same business day; provided, however, the Disclosure Dissemination Agent shall have no liability for any delay in filing with the MSRB if such delay is caused by a Force Majeure Event, provided that the Disclosure Dissemination Agent uses reasonable efforts to make any such filing as soon as possible. SECTION 3. Content of Annual Reports. (a) Each Annual Report shall contain the following Annual Financial Information with respect to the Stormwater Utility for the prior Fiscal Year: the information in the Official Statement under the captions ["Historical Schedule of Net Revenue, Debt Service and Debt Coverage" and "Rates, Fees and Charges"]. (b) Audited Financial Statements prepared in accordance with generally accepted accounting principles ("GAAP") will be included in the Annual Report, but may be provided in accordance with Section 2(d). Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the Issuer is an Obligated Person, which have been previously filed with the Securities and Exchange Commission or available to the public on the MSRB Internet Website. If the document incorporated by reference is a final official statement, it must be available from the MSRB. The Issuer will clearly identify each such document so incorporated by reference. Any Annual Financial Information containing modified operating data or financial information is required to explain, in narrative form, the reasons for the modification and the impact of the change in the type of operating data or financial information being provided. SECTION 4. Reporting of Notice Events. (a) The occurrence of any of the following events with respect to the Bonds constitutes a Notice Event: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults, if material; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements relating to the Bonds reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the Bonds; 7. Modifications to rights of Bond holders, if material; 8. Bond calls, if material, and tender offers; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Bonds, if material; 1 1. Rating changes on the Bonds; 12. Bankruptcy, insolvency, receivership or similar event of the Obligated Person; Note: for the purposes of the event identiJied in this subsection 4(a)(12), the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar oficer for an Obligated Person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumedjurisdiction over substantially all of the assets or business of the Obligated Person, or if such jurisdiction has been assumed by leaving the existing governmental body and oficials or oficers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Obligated Person. 13. The consummation of a merger, consolidation, or acquisition involving an Obligated Person or the sale of all or substantially all of the assets of the Obligated Person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material. The Issuer shall, in a timely manner not in excess of ten (10) business days after its occurrence, notify the Disclosure Dissemination Agent in writing of the occurrence of a Notice Event. Such notice shall instruct the Disclosure Dissemination Agent to report the occurrence pursuant to subsection (c) and shall be accompanied by a Certification. Such notice or Certification shall identify the Notice Event that has occurred (which shall be any of the categories set forth in Section 2(e)(iv) of this Disclosure Agreement), include the text of the disclosure that the Issuer desires to make, contain the written authorization of the Issuer for the Disclosure Dissemination Agent to disseminate such information, and identify the date the Issuer desires for the Disclosure Dissemination Agent to disseminate the information (provided that such date is not later than the tenth (1 0th) business day after the occurrence of the Notice Event). (b) The Disclosure Dissemination Agent is under no obligation to notify the Issuer or the Disclosure Representative of an event that may constitute a Notice Event. In the event the Disclosure Dissemination Agent so notifies the Disclosure Representative, the Disclosure Representative will within two business days of receipt of such notice (but in any event not later than the tenth (10th) business day after the occurrence of the Notice Event, if the Issuer determines that a Notice Event has occurred), instruct the Disclosure Dissemination Agent that (i) a Notice Event has not occurred and no filing is to be made or (ii) a Notice Event has occurred and the Disclosure Dissemination Agent is to report the occurrence pursuant to Section 4(c), together with a Certification. Such notice or Certification shall identify the Notice Event that has occurred (which shall be any of the categories set forth in Section 2(e)(iv) of this Disclosure Agreement), include the text of the disclosure that the Issuer desires to make, contain the written authorization of the Issuer for the Disclosure Dissemination Agent to disseminate such information, and identify the date the Issuer desires for the Disclosure Dissemination Agent to disseminate the information (provided that such date is not later than the tenth (10th) business day after the occurrence of the Notice Event). (c) If the Disclosure Dissemination Agent has been instructed by the Issuer as prescribed in subsection (a) or (b)(ii) of this Section 4 to report the occurrence of a Notice Event, the Disclosure Dissemination Agent shall promptly file a notice of such occurrence with the MSRB in accordance with Section 2(e)(iv) hereof. SECTION 5. CUSIP Numbers. Whenever providing information to the Disclosure Dissemination Agent, including but not limited to Annual Reports, documents incorporated by reference to the Annual Reports, Audited Financial Statements, notices of Notice Events, Failure to File Events and Voluntary Reports filed pursuant to Section 7(a), the Issuer shall indicate the full name of the Bonds and the 9-digit CUSIP numbers for the Bonds as to which the provided information relates. SECTION 6. Additional Disclosure Obligations. The Issuer acknowledges and understands that other state and federal laws, including but not limited to the Securities Act of 1933 and Rule lob-5 promulgated under the Securities Exchange Act of 1934, may apply to the Issuer, and that the failure of the Disclosure Dissemination Agent to so advise the Issuer shall not constitute a breach by the Disclosure Dissemination Agent of any of its duties and responsibilities under this Disclosure Agreement. The Issuer acknowledges and understands that the duties of the Disclosure Dissemination Agent relate exclusively to execution of the mechanical tasks of disseminating information as described in this Disclosure Agreement. SECTION 7. Voluntary Reports. (a) The Issuer may instruct the Disclosure Dissemination Agent to file information with the MSRB, from time to time pursuant to a Certification of the Disclosure Representative accompanying such information (a ''Voluntary Report"). (b) Nothing in this Disclosure Agreement shall be deemed to prevent the Issuer from disseminating any other information through the Disclosure Dissemination Agent using the means of dissemination set forth in this Disclosure Agreement or including any other information in any Annual Report, Audited Financial Statements, Voluntary Report, Notice Event notice or Failure to File Event notice, in addition to that required by this Disclosure Agreement. If the Issuer chooses to include any information in any Annual Report, Audited Financial Statements, Voluntary Report, Notice Event notice, or Failure to File Event notice in addition to that which is specifically required by this Disclosure Agreement, the Issuer shall have no obligation under this Disclosure Agreement to update such information or include it in any future Annual Report, Audited Financial Statements, Voluntary Report, Notice Event notice or Failure to File Event notice. SECTION 8. Termination of Re~orting Obligation. The obligations of the Issuer and the Disclosure Dissemination Agent under this Disclosure Agreement shall terminate with respect to the Bonds upon the legal defeasance, prior redemption or payment in full of all of the Bonds, when the Issuer is no longer an Obligated Person with respect to the Bonds, or upon delivery by the Disclosure Representative to the Disclosure Dissemination Agent of an opinion of nationally recognized bond counsel to the effect that continuing disclosure is no longer required. SECTION 9. Disclosure Dissemination Agent. The Issuer has appointed Digital Assurance Certification, L.L.C. as exclusive Disclosure Dissemination Agent under this Disclosure Agreement. The Issuer may, upon thirty days written notice to the Disclosure Dissemination Agent, replace or appoint a successor Disclosure Dissemination Agent. Upon termination of DAC's services as Disclosure Dissemination Agent, whether by notice of the Issuer or DAC, the Issuer agrees to appoint a successor Disclosure Dissemination Agent or, alternately, agrees to assume all responsibilities of Disclosure Dissemination Agent under this Disclosure Agreement for the benefit of the Holders of the Bonds. Notwithstanding any replacement or appointment of a successor, the Issuer shall remain liable until payment in full for any and all sums owed and payable to the Disclosure Dissemination Agent. The Disclosure Dissemination Agent may resign at any time by providing thirty days' prior written notice to the Issuer. SECTION 10. Remedies in Event of Default. In the event of a failure of the Issuer or the Disclosure Dissemination Agent to comply with any provision of this Disclosure Agreement, the Holders' rights to enforce the provisions of this Disclosure Agreement shall be limited solely to a right, by action in mandamus or for specific performance, to compel performance of the parties' obligation under this Disclosure Agreement. Any failure by a party to perform in accordance with this Disclosure Agreement shall not constitute a default on the Bonds or under any other document relating to the Bonds, including the Bond Resolution, and all rights and remedies shall be limited to those expressly stated herein. SECTION 1 1. Duties. Immunities and Liabilities of Disclosure Dissemination Agent. (a) The Disclosure Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement. The Disclosure Dissemination Agent's obligation to deliver the information at the times and with the contents described herein shall be limited to the extent the Issuer has provided such information to the Disclosure Dissemination - 7 Agent as required by this Disclosure Agreement. The Disclosure Dissemination Agent shall have no duty with respect to the content of any disclosures or notice made pursuant to the terms hereof. The Disclosure Dissemination Agent shall have no duty or obligation to review or verify any Information or any other information, disclosures or notices provided to it by the Issuer and shall not be deemed to be acting in any fiduciary capacity for the Issuer, the Holders of the Bonds or any other party. The Disclosure Dissemination Agent shall have no responsibility for the Issuer's failure to report to the Disclosure Dissemination Agent a Notice Event or a duty to determine the materiality thereof. The Disclosure Dissemination Agent shall have no duty to determine, or liability for failing to determine, whether the Issuer has complied with this Disclosure Agreement. The Disclosure Dissemination Agent may conclusively rely upon certifications of the Issuer at all times. The obligations of the Issuer under this Section shall survive resignation or removal of the Disclosure Dissemination Agent and defeasance, redemption or payment of the Bonds. (b) The Disclosure Dissemination Agent may, from time to time, consult with legal counsel (either in-house or external) of its own choosing in the event of any disagreement or controversy, or question or doubt as to the construction of any of the provisions hereof or its respective duties hereunder, and shall not incur any liability and shall be fully protected in acting in good faith upon the advice of such legal counsel. The reasonable fees and expenses of such counsel shall be payable by the Issuer. (c) All documents, reports, notices, statements, information and other materials provided to the MSRB under this Disclosure Agreement shall be provided in an electronic format and accompanied by identifying information as prescribed by the MSRB. SECTION 12. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the Issuer and the Disclosure Dissemination Agent may amend this Disclosure Agreement and any provision of this Disclosure Agreement may be waived, if such amendment or waiver is supported by an opinion of counsel expert in federal securities laws acceptable to both the Issuer and the Disclosure Dissemination Agent to the effect that such amendment or waiver does not materially impair the interests of Holders of the Bonds and would not, in and of itself, cause the undertakings herein to violate the Rule if such amendment or waiver had been effective on the date hereof but taking into account any subsequent change in or official interpretation of the Rule; provided neither the Issuer or the Disclosure Dissemination Agent shall be obligated to agree to any amendment modifying their respective duties or obligations without their consent thereto. Notwithstanding the preceding paragraph, the Disclosure Dissemination Agent shall have the right to adopt amendments to this Disclosure Agreement necessary to comply with modifications to and interpretations of the provisions of the Rule as announced by the Securities and Exchange Commission from time to time by giving not less than 20 days written notice of the intent to do so together with a copy of the proposed amendment to the Issuer. No such amendment shall become effective if the Issuer shall, within 10 days following the giving of such notice, send a notice to the Disclosure Dissemination Agent in writing that it objects to such amendment. SECTION 13. Sources of Pavments; No Personal Liability. Notwithstanding anything to the contrary contained in this Disclosure Agreement, the Issuer shall be required to use only Revenues to pay any costs and expenses to be incurred in the performance of this Disclosure Agreement by it, and the perlbrmance of its obligations hereunder shall be subject to the availability of Revenues for that purpose; provided, that any such costs and expenses shall constitute Current Expenses under the Bond Resolution. This Disclosure Agreement does not and shall not constitute a general obligation of the Issuer. No covenant, stipulation, obligation or agreement of the Issuer contained in this Disclosure Agreement shall be deemed to be a covenant, stipulation, obligation or agreement of any present or future officer, agent or enlployee of the Issuer in other than that person's official capacity. SECTION 14. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the Issuer, the Disclosure Dissemination Agent, the Underwriter, and the Holders from time to time of the Bonds, and shall create no rights in any other person or entity. SECTION 15. Governing Law. This Disclosure Agreement shall be governed by the laws of the State of Florida. SECTION 16. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. The Disclosure Dissemination Agent and the Issuer have caused this Disclosure Agreement to be executed, on the date first written above, by their respective officers duly authorized. DIGITAL ASSURANCE CERTIFICATION, L.L.C., as Disclosure Dissemination Agent By: Name: Title: CITY OF MIAMI BEACH, FLORIDA, as Issuer By: Patricia D. Walker Chief Financial Officer EXHIBIT A NAME AND CUSIP NUMBERS OF BONDS Name of Issuer: City of Miami Beach, Florida Obligated Person: City of Miami Beach, Florida Name of Bond Issue: Stormwater Revenue Bonds, Series 201 1A and Stormwater Revenue Refunding Bonds, Series 20 1 1B Date of Issuance: ,201 1 Date of Official Statement: ,201 1 CUSIP Numbers: EXHIBIT B NOTICE TO MSRB OF FAILURE TO FILE ANNUAL REPORT Issuer: City of Miami Beach, Florida Obligated Person: City of Miami Beach, Florida Name of Bond Issue: Stormwater Revenue Bonds, Series 201 1A and Stormwater Revenue Refunding Bonds, Series 20 1 1 B Date of Issuance: ,201 1 NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to the above-named Bonds as required by the Disclosure Dissemination Agent Agreement, dated as of , 2011, between the Issuer and Digital Assurance Certification, L.L.C., as Disclosure Dissemination Agent. The Issuer has notified the Disclosure Dissemination Agent that it anticipates that the Annual Report will be filed by Dated: Digital Assurance Certification, L.L.C., as Disclosure Dissemination Agent, on behalf of the Issuer cc: City of Miami Beach, Florida EAPDLA WDRQFT 9-21-11 PRELIMINARY OFFICIAL STATEMENT DATED ,2011 NEW ISSUE - BOOK-ENTRY ONLY See "Ratings" herein In the opinion of Squire, Sanders & Dempsey (US) LLP, Bond Counsel, under existing law (i) assuming continuing compliance with certain covenants and the accuracy of certain representations, interest on the Series 2011 Bonds is excludedfrom gross income for federal income tax purposes and is not an item of tax preference for purposes of the3deral alternative minimum tax imposed on individuals and corporations, and (ii) the Series 201 1 Bonds and the income thereon are exempt from taxation under the laws of the State of Florida, except estate taxes imposed by Chapter 198, Florida Statutes, as amended, and net income andfranchise taxes imposed by Chapter 220, Florida Statutes, as amended. Interest on the Series 201 1 Bonds may be subject to certain federal taxes imposed only on certain corporations, including the corporate alternative minimum tax on a portion of that interest. For a more complete discussion of the tax aspects, see "TAX MATTERS" herein. $ * $ * CITY OF MIAMI BEACH, FLORIDA CITY OF MIAMI BEACH, FLORIDA STORMWATER REVENUE BONDS STORMWATER REVENUE REFUNDING BONDS SERIES 201 1A SERIES 201 1B Dated: Date of Delivery Due: September 1, as shown on inside front cover page The City of Miami Beach (the "City") is issuing its $ * Stormwater Revenue Bonds, Series 201 1A (the "Series 201 1A Bonds") and $ 'I Stormwater Revenue Refunding Bonds, Series 201 1B (the "Series 201 1B Bonds" and together with the Series 201 1A Bonds, the "Series 201 1 Bonds"). The Series 201 1 Bonds will be delivered initially in book-entry form, in denominations of $5,000 or any whole multiple thereof, and registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York, which will act as securities depository for the Series 2011 Bonds. Purchasers will not receive certificates representing their ownership interest in the Series 201 1 Bonds purchased. Interest on the Series 201 1 Bonds will accrue from the dated date and is payable semiannually on 1,20- and on each September 1 and March 1 thereafter. See "THE SERIES 201 1 BONDS - Book-Entry Only System." The Series 201 1A Bonds are being issued by the City for the purpose of providing funds, together with other available moneys of the City, to (i) construct certain capital improvements to its Stormwater Utility (the "201 1 Project"), (ii) fund a deposit to the Reserve Account or pay the costs of a Reserve Account Insurance Policy, and (iii) pay the costs of issuing the Series 201 1A Bonds, [including the premium for the Series 201 1 Bond Insurance Policy 1. The Series 201 1B Bonds are being issued by the City for the purpose of providing funds, together with other available moneys of the city, to (i) refund, defease and redeem the Bonds to be Refunded (as such term is defined in this Official Statement), including interest to accrue to their redemption date, and (ii) paying the costs of such issuance, refunding, defeasance and redemption (collectively, the "Refunding Requirements"). The Series 201 1 Bonds are subject to redemption by the City prior to maturity as set forth herein. The Series 201 1 Bonds are payable from and secured by a first lien on and a pledge of certain revenues and investment income derived from the operation of the Stormwater Utility of the City; subject, however, to the prior payment from revenues of the expenses of operation and maintenance of the Stormwater Utility. Such first lien and pledge of such revenues and investment income granted by the City in favor of the Series 201 1 Bonds shall be on a parity with the first lien and pledge of such revenues and investment income that may be granted by the City in favor of Additional Bonds, Refunding Bonds, Alternative Parity Debt and certain Short-Term Indebtedness. See "SECURITY FOR THE SERIES 201 1 BONDS'herein. THE CITY IS NOT OBLIGATED TO PAY THE SERIES 2011 BONDS OR THE INTEREST THEREON EXCEPT FROM THE PLEDGED REVENUES AND NEITHER THE FAITH AND CREDIT NOR ANY PHYSICAL PROPERTIES OF THE CITY ARE PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, REDEMPTION PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2011 BONDS. THE ISSUANCE OF THE SERIES 2011 BONDS DOES NOT DIRECTLY OR INDIRECTLY OR CONTINGENTLY OBLIGATE THE CITY TO LEVY ANY FORM OF TAXATION WHATEVER THEREFOR OR TO MAKE ANY APPROPRIATION FOR THEIR PAYMENT EXCEPT FROM THE PLEDGED REVENUES. NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, MIAMI-DADE COUNTY, FLORIDA, THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO PAYMENT OF THE SERIES 201 1 BONDS. [The scheduled payment of principal of and interest on the Series 201 1 Bonds when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the Series 201 1 Bonds by .I [Insurer Logo] [For a discussion of the terms and provisions of such policy, including the limitations thereof, see "MUNICIPAL BOND INSURANCE herein.] THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. The Series 2011 Bonds are ofered when, as and $issued and accepted by the Underwriters subject to the approval of legality by Squire, Sanders & Dempsey (US) LLP, Miami, Florida, Bond Counsel. Certain legal matters will be passed upon for the City by Jose Smith, City Attorney. Certain legal matters will be passed upon for the Underwriters by Edwards Angel1 Palmer & Dodge LLP, West Palm Beach, Florida. RBC Capital * Preliminary, subject to change. PMB 423657.3 Market Markets, Inc., Miami, Florida, has sewed as Financial Advisor to the City in connection with the issuance of the Series 201 1 Bonds. It is expected that the Series 201 1 Bonds will be available for delivery through DTC in New York, New York on or about November -, 201 1. J.P. MORGAN B of A Merrill Lynch Morgan Stanley & Co. Incorporated SunTrust Robinson Humphrey Dated: ,201 I PMB 423657.3 MATURITY DATES, PRINCIPAL AMOUNTS, INITIAL CUSIP NUMBERS, INTEREST RATES, AND YIELDS CITY OF MIAMI BEACH, FLORIDA $ * STORMWATER REVENUE BONDS SERIES 2011A $ * Serial Series 201 1A Bonds Maturity Initial Maturity Initial Date Principal CUSIP Interest Date Principal CUSIP Interest April 1 Amount* &(') Yield April 1 Amount* Yield $ Yo % $ % % $ % Term Series 201 1A Bonds due October 1, , Yield %, Initial CUSIP NO.(') $ % Term Series 201 1A Bonds due October l,, Yield %, Initial CUSIP NO.(') $ * STORMWATER REVENUE BONDS SERIES 2011B $ * Serial Series 201 1B Bonds Maturity Initial Maturity Initial Date Principal CUSIP Interest Date Principal CUSIP Interest April 1 ~rnount* &(') Yield April 1 ~mo&t* &(I) - Rate Yield $ Yo % $ yo Yo $ % Term Series 201 1B Bonds due October 1, , Yield %, Initial CUSIP NO.(') $ % Term Series 201 1B Bonds due October 1, -, Yield %, Initial CUSIP NO.(') * Preliminary, subject to change. (I) Neither the City nor the Underwriters assume responsibility for the use of CUSIP numbers, nor is any representation made as to their correctness. The CUSIP numbers are included solely for the convenience of the readers of this Official Statement. PMB 423657.3 289 CITY OF MIAMI BEACH Jorge Exposito Edward L. Tobin CITY MANAGER Jorge M. Gonzalez FINANCE DIRECTOR Patricia Walker MAYOR Matti Herrera Bower VICE MAYOR Jerry Libbin CITY COMMISSION Michael Gongora Jonah Wolfson Deede Weithorn CITY ATTORNEY Jose Smith ASSISTANT CITY MANAGER Duncan Ballantyne PUBLIC WORKS DIRECTOR Fred H. Beckrnann FINANCIAL ADVISOR RBC Capital Markets, Inc. BOND COUNSEL Squire, Sanders & Dempsey (US) LLP CONSULTING ENGINEERS Camp Dresser & McKee Inc. RATE CONSULTANT Camp Dresser & McKee Inc. CITY CLERK Robert E. Parcher PMB 423657.3 NO DEALER, BROKER, SALESPERSON OR OTHER PERSON HAS BEEN AUTHORIZED BY THE CITY TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS IN CONNECTION WITH THE ISSUANCE OF THE SERIES 2011 BONDS, OTHER THAN AS CONTAINED IN THIS OFFICIAL STATEMENT AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE CITY. THIS OFFICIAL STATEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF ANY OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE SERIES 201 1 BONDS BY ANY PERSON IN ANY JURISDICTION IN WHICH IT IS UNLAWFUL FOR SUCH PERSON TO MAKE SUCH OFFER, SOLICITATION OR SALE. THIS OFFICIAL STATEMENT IS NOT TO BE CONSTRUED AS A CONTRACT WITH THE PURCHASERS OF THE SERIES 201 1 BONDS. THE ORDER AND PLACEMENT OF MATERIALS IN THIS OFFICIAL STATEMENT, INCLUDING THE APPENDICES, ARE NOT TO BE DEEMED A DETERMINATION OF RELEVANCE, MATERIALITY OR IMPORTANCE, AND THIS OFFICIAL STATEMENT, INCLUDING THE APPENDICES, MUST BE CONSIDERED IN ITS ENTIRETY. THE CAPTIONS AND HEADINGS IN THIS OFFICIAL STATEMENT ARE FOR CONVENIENCE ONLY AND IN NO WAY DEFINE, LIMIT OR DESCRIBE THE SCOPE OR INTENT, OR AFFECT THE MEANING OR CONSTRUCTION, OF ANY PROVISIONS OR SECTIONS IN THIS OFFICIAL STATEMENT. THE OFFERING OF THE SERIES 201 1 BONDS IS MADE ONLY BY MEANS OF THIS ENTIRE OFFICIAL STATEMENT. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 20 1 1 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITERS MAY OFFER AND SELL THE SERIES 201 1 BONDS TO CERTAIN DEALERS AND OTHERS AT YIELDS HIGHER THAN THE PUBLIC OFFERING YIELDS SET FORTH ON THE INSIDE COVER PAGES OF THIS OFFICIAL STATEMENT, AND SUCH PUBLIC OFFERING YIELDS MAY BE CHANGED FROM TIME TO TIME, AFTER THE INITIAL OFFERING TO THE PUBLIC, BY THE UNDERWRITERS. THE OFFICIAL STATEMENT CONTAINS STATEMENTS, WHICH TO THE EXTENT THEY ARE NOT RECITATIONS OF HISTORICAL FACT, CONSTITUTE "FORWARD-LOOKING STATEMENTS." IN THIS RESPECT, THE WORDS "ESTIMATE," "PROJECT," "ANTICIPATE," "EXPECT," "INTEND," "BELIEF," AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS MAY BE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTEMPLATED IN SUCH FORWARD-LOOKING STATEMENTS. THE SERIES 201 1 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES LAW NOR HAS THE RESOLUTION BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE CITY AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY OTHER FEDERAL, STATE OR GOVERNMENTAL ENTITY OR AGENCY WILL HAVE PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT OR APPROVED, RECOMMENDED OR PASSED UPON THE MERITS OF THE SERIES 2011 BONDS FOR SALE. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. THIS OFFICIAL STATEMENT IS BEING PROVIDED TO PROSPECTIVE PURCHASERS EITHER IN BOUND PRINTED FORM ("ORIGINAL BOUND FORMAT") OR IN ELECTRONIC FORMAT ON THE FOLLOWING WEBSITE: . THIS OFFICIAL STATEMENT MAY BE RELIED UPON ONLY IF IT IS IN ITS ORIGINAL BOUND FORMAT OR AS PRINTED IN ITS ENTIRETY DIRECTLY FROM SUCH WEBSITE. [[BOND INSURER] MAKES NO REPRESENTATION REGARDING THE SERIES 201 1 BONDS OR THE ADVISABILITY OF INVESTING IN THE SERIES 201 1 BONDS. IN ADDITION, [BOND INSURER] PMB 423657.3 291 HAS NOT INDEPENDENTLY VERIFIED, MAKES NO REPRESENTATION REGARDING, AND DOES NOT ACCEPT ANY RESPONSIBILITY FOR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT OR ANY INFORMATION OR DISCLOSURE CONTAINED HEREIN, OR OMITTED HEREFROM, OTHER THAN WITH RESPECT TO THE ACCURACY OF THE INFORMATION REGARDING [BOND INSURER] SUPPLIED BY [BOND INSURER] AND PRESENTED UNDER THE HEADING "MUNICIPAL BOND INSURANCE" AND "EXHIBIT F - SPECIMEN MUNICIPAL BOND INSURANCE POLICY".] THIS PRELIMINARY OFFICIAL STATEMENT IS IN THE FORM DEEMED FINAL BY THE CITY FOR PURPOSES OF RULE 15~2-12 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, EXCEPT FOR CERTAIN INFORMATION PERMITTED TO BE OMITTED PURSUANT TO RULE 15~2-12(b)(l). PMB 423657.3 TABLE OF CONTENTS ... ......................................................................................................................................... SUMMARY STATEMENT 111 ......................................................................................................................................................... INTRODUCTION 1 ............................................................................................................ PURPOSE OF THE SERIES 20 1 1 BONDS 2 REFUNDING PLAN .................................................................................................................................................... 2 ESTIMATED SOURCES AND USES OF FUNDS ..................................................................................................... 3 THE SERIES 20 1 1 BONDS ....................................................................................................................................... 4 General ............................................................................................................................................................... 4 Book-Entry Only System .................................................................................................................................... 4 Optional Redemption of Series 20 1 1 Bonds ................................................................................................. 7 Mandatory Sinking Fund Redemption ............................................................................................................... 7 Redemption Notice ............................................................................................................................................. 9 SECURITY FOR THE SERIES 201 1 BONDS ............................................................................................................ 9 General ............................................................................................................................................................... 9 ................................................................................................................................................... Flow of Funds 11 ............................................................................................................................................... Reserve Account 12 -. ................................................................................................................................................... Rate Covenant I3 .............................................................................................................................................. Additional Bonds 14 .............................................................................................................................................. Rehnding Bonds 16 Other Indebtedness ......................................................................................................................................... 16 MUNICIPAL BOND INSURANCE ........................................................................................................................... 16 THE STORMWATER UTILITY .......................................................................................................................... 16 General ............................................................................................................................................................. 17 The Public Works Department ................................................................................................................... 17 Description of the Existing Stormwater Utility ................................................ ...................................... 19 The Capital Improvement Program ................................................................................................................ 19 Governmental Regulation ............................................................................................................................... 27 Rates, Fees and Charges ................................................................................................................................. 29 Billing and Collection ................................................................................................................................. 29 DEBT SERVICE SCHEDULE ................................................................................................................................. 30 HISTORICAL AND FORECASTED SCHEDULE OF NET REVENUE, DEBT SERVICE AND DEBT COVERAGE ..................................................................................................................... 31 ............................................................................................................................................................. LITIGATION 33 ........................................................................................................................................................ TAX MATTERS 33 EXPERTS .................................................................................................................................................................... 36 UNDERWRITING ..................................................................................................................................................... 36 FINANCIAL STATEMENTS ................................................................................................................................. 36 VERIFICATION OF MATHEMATICAL COMPUTATIONS ................................................................................. 36 FINANCIAL ADVISOR ........................................................................................................................................... 37 RATINGS .................................................................................................................................................................. 37 LEGAL MATTERS ................................................................................................................................................. 37 CONTINUING DISCLOSURE .................................................................................................................................. 37 DISCLOSURE PURSUANT TO SECTION 5 17.05 1, FLORIDA STATUTES ....................................................... 38 MISCELLANEOUS ................................................................................................................................................ 3 8 CERTIFICATE CONCERNING THE OFFICIAL STATEMENT ............................................................................ 38 PMB 423657.3 APPENDIX A - General Information Regarding the City and Miami-Dade County APPENDIX B - Report of Consulting Engineers APPENDIX C - Financial Statements of the City APPENDIX D - The Bond Resolution APPENDIX E - Form of Continuing Disclosure Agreement APPENDIX F - Specimen Bond Insurance Policy APPENDIX G - Form of Approving Opinion of Bond Counsel PMB 423657.3 SUMMARY STATEMENT The following is subject in all respects to more complete information contained in this Official Statement and Appendices hereto. Defined terms have the same meaning herein as elsewhere in the text. The City ............................................................... The City of Miami Beach, Florida is located in Miami-Dade County, Florida (the "County") on the southeast coast of Florida and has an area of approximately 7.5 square miles. The City is the third largest municipality in Miami-Dade County, with an estimated 20 10 population of approximately 87,799. The Stormwater Utility ........................................ The City's Stormwater Utility (the "Stormwater Utility") is managed by the City's Public Works Department. The City Commission has the exclusive authority to determine rates, fees and charges for the services provided by the Stormwater Utility. The Series 201 1 Bonds will be the only long-term debt of the Stormwater Utility at the time of the delivery of the Series 20 1 1 Bonds. Capital Improvement Program ............................. The stormwater capita1 improvement projects included within the City's Capital Improvement Program cover a five year period from FY 20 10 through FY 20 14 with an estimated total cost of $60.4 Million. Proceeds from the Series 201 1 Bonds, anticipated investment earnings and a planned equity contribution by the City are expected to find $ of the planned improvements to the Stormwater Utility that are scheduled for design and/or construction in FY 201 1 through FY 2015. Purpose of the Bonds ........................................... The Series 201 1A Bonds are being issued for the purpose of providing funds, together with other available moneys, to (i) construct certain capital improvements to the Stormwater Utility, (ii) fund a deposit to the Reserve Account or pay the costs of a Reserve Account Insurance Policy, and (iii) pay the costs of issuing the Series 201 1A Bonds, [including the premium for the Series 201 1 Bond Insurance Policy 1. The Series 2011B Bonds are being issued for the purpose of providing funds, together with other available moneys of the city, to (i) refund, defease and redeem the Bonds to be Refunded (as such term is defined in this Official Statement), including interest to accrue to their redemption date, and (ii) paying the costs of such issuance, refunding, defeasance and redemption. Security for the Bonds .......................................... The Series 201 1 Bonds are payable from and secured by a lien on and pledge of Net Revenues of the Stormwater Utility, and from all moneys held in the Funds and Accounts established under the Bond Resolution, other than the Rebate Fund and the Subordinated Indebtedness Account; subject, however to the prior payment from revenues of the expenses of operation and maintenance of the Stormwater Utility. Upon the satisfaction of certain requirements set forth in the Bond Resolution, the City may issue Additional Bonds, Refunding Bonds, Alternative Parity Debt and certain Short-Term Indebtedness on a parity with the Series 201 1 Bonds. PMB 423657.3 The City is not obligated to pay the Series 201 1 Bonds or the interest thereon except from the Net Revenues, and neither the faith and credit nor any physical properties of the City are pledged to the payment of the Series 201 1 Bonds. The issuance of the Series 2011 Bonds does not directly or indirectly or contingently obligate the City to levy any form of taxation whatever therefor or to make any appropriation for their payment except from the Net Revenues. Neither the full faith and credit nor the taxing power of the City, the State of Florida or any political subdivision thereof is pledged to the payment of the Series 20 1 1 Bonds. Redemption .......................................................... Certain of the Series 201 1 Bonds are subject to redemption by the City prior to maturity. See "THE SERIES 201 1 BONDS" herein. [Municipal Bond Insurance .................................. The scheduled payment of principal of and interest on the Series 2011 Bonds when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the Series 201 1 Bonds by [Bond Insurer]. For a discussion of the terms and provisions of that policy, including the limitations thereof, see "MUNICIPAL BOND INSURANCE" herein.] Rate Covenant ...................................................... The City covenants in the Bond Resolution that it will fix, charge and collect reasonable rates and charges for the use of the services and facilities furnished by the Stormwater Utility and that from time to time, and as often as it shall appear necessary, it will adjust such rates and charges by increasing or decreasing the same or any selected categories of rates and charges so that the Net Revenues (excluding from the computation of Current Expenses for any Fiscal Year any amount received from any source other than Revenues and applied to the payment of Current Expenses in such Fiscal Year) will be sufficient to provide an amount in each Fiscal Year at least equal one hundred ten percent (1 10%) of the Principal and Interest Requirements for such Fiscal Year and one hundred percent (100%) of all amounts required to be deposited to the Reserve Account, Rate Stabilization Account and Subordinated Indebtedness Account for such Fiscal Year. Additional Bonds .................................................. Subject to satisfaction of certain specific requirements set forth in the Bond Resolution, the City may issue Additional Bonds on a parity with the Series 201 1 Bonds, if either (i) the percentage derived by dividing the Net Revenues projected for the Stormwater Utility for the Fiscal Year following the Fiscal Year in which the Completion Date of the Improvements to be financed by the Additional Bonds is expected to occur, adjusted as permitted by the Bond Resolution, by the Maximum Principal and Interest Requirements, including the Principal and Interest Requirements with respect to the Additional Bonds then to be delivered, for any future Fiscal Year is not less than 110%; or (ii) the percentage derived by dividing the Net Revenues for any period of twelve consecutive months selected by the City out of the previous eighteen months, by the Maximum Principal and Interest PMB 423657.3 PMB 423657.3 Requirements, including the Principal and Interest Requirements with respect to the Additional Bonds then to be delivered, for any future Fiscal Year is not less than 110%. See "SECURITY FOR THE SERIES 201 1 BONDS-- Additional Bonds" herein. OFFICIAL STATEMENT RELATING TO $ * $ * CITY OF MIAMI BEACH, FLORIDA CITY OF MIAMI BEACH, FLORIDA STORMWATER REVENUE BONDS STORMWATER REVENUE REFUNDING BONDS SERIES 201 1A SERIES 2OllB INTRODUCTION The purpose of this Oficial Statement, including the cover page and all appendices, is to set forth certain information in connection with the sale by the City of Miami Beach, Florida (the "City") of its $ * aggregate principal amount of Stormwater Revenue Bonds, Series 201 1A (the "Series 20 1 1A Bonds") and $ * aggregate principal amount of Stormwater Revenue Refunding Bonds, Series 201 1B (the "Series 201 1B Bonds" and together with the Series 201 1A Bonds, the "Series 201 1 Bonds"). The Series 201 1 Bonds, and any Additional Bonds and Refunding Bonds issued on a parity therewith, are collectively referred to as the "Bonds". The Series 201 1 Bonds are being issued pursuant to the Constitution and Laws of the State of Florida, including Chapter 166 and Section 403.0893(1), Florida Statutes, and the City of Miami Beach Charter (collectively, the "Act") and other applicable provisions of law and pursuant and subject to the terms and conditions of Resolution No. 2000- 24127 adopted by the City Commission (the "Commission") on October 18, 2000 (the "Original Resolution" and as amended and supplemented from time to time, the "Bond Resolution" or the "Resolution") including Resolution No. 201 1-- adopted by the Commission on , 20 1 1 (the "Series 201 1 Resolution"). The City has previously issued its (i) $52,170,000 original principal amount of City of Miami Beach, Florida Stormwater Revenue Bonds, Series 2000, currently Outstanding in the principal amount of $27,105,000 (the "Outstanding Series 2000 Bonds"), pursuant to the Original Resolution; and (ii) $16,185,000 original principal amount of City of Miami Beach, Florida Stormwder Revenue Refunding Bonds, Taxable Series 2009J-2 (the "Series 2009 Bonds"), all of which are currently Outstanding under the Bond Resolution. The principal of, and interest on, the Series 201 1 Bonds are secured by a lien on and pledge of the Pledged Funds (as described herein), on a parity with the Outstanding Series 2000 Bonds and the Series 2009 Bonds, and any Additional Bonds and Refunding Bonds that may be issued from time to time under the Resolution and Alternative Parity Debt and certain Short-Term Indebtedness that may be issued from time to time. See "SECURITY FOR THE SERIES 201 1 BONDS" in this Official Statement. All capitalized terms used in this Official Statement and not otherwise defined herein have the same meaning as provided in Appendix D attached hereto. Descriptions of the Series 201 1 Bonds, the Bond Resolution, and other agreements and documents contained herein constitute summaries of certain provisions thereof, and do not purport to be complete. Reference is made to the Bond Resolution and such other agreements and documents for a more complete description of such provisions, copies of which are on file at the offices of the City. * Preliminary, subject to change. PMB 423657.3 PURPOSE OF THE SERIES 2011 BONDS The Series 201 1A Bonds are being issued by the City for the purpose of providing funds, together with other available moneys of the City, to (i) construct certain capital improvements to its Stormwater Utility (the "201 1 Project"), (ii) fund a deposit to the Reserve Account or pay the costs of a Reserve Account Lnsurance Policy, and (iii) pay the costs of issuing the Series 201 1A Bonds, [including the premium for the insurance policy guaranteeing the scheduled payment of principal of and interest on the Series 201 1 Bonds (the "Series 201 1 Bond Insurance Policy" or the "Municipal Bond Insurance Policy") to be issued by [Bond Insurer]]. The Series 201 1B Bonds are being issued by the City for the purpose of providing funds, together with other available moneys of the City, to (i) refund, defease and redeem the Outstanding 2000 Bonds (the "Bonds to be Refunded"), including interest to accrue to their redemption date, and (ii) paying the costs of such issuance, refunding, defeasance and redemption (collectively, the "Refunding Requirements") The improvements to the Stormwater Utility to be made with the proceeds of the Series 201 1 Bonds are part of the improvements to be made pursuant to the Capital Improvement Program for the Stormwater Utility. See "THE STORMWATER UTILITY - The Capital Improvement Program." REFUNDING PLAN On the date of original issuance and delivery of the Series 201 1B Bonds, pursuant to the terms of an escrow deposit agreement between the City and (the "Escrow Agent"), with respect to the defeasance of the Bonds to be Refunded (the "Escrow Agreement"), the City will deposit a portion of the proceeds of the Series 201 1B Bonds and certain other moneys of the City with the Escrow Agent for deposit to the credit of a special and irrevocable trust fund established pursuant to the Escrow Agreement (the "Escrow Deposit Trust Fund"). These proceeds and other available moneys will be applied, on the date of issuance and delivery of the Series 201 1B Bonds, to the purchase of direct obligations of the United States of America (the "Escrow Securities") and any cash remaining after such purchase will be held uninvested. The Escrow Securities will mature at such times and in such amounts so that the maturing principal, together with the investment income, when due and received by the Escrow Agent, and other moneys remaining uninvested in the Escrow Deposit Trust Fund will be sufficient to pay the principal of, redemption premium, if any, and accrued interest on the Bonds to be Refunded as required under the Escrow Agreement. Upon the deposit of such proceeds and moneys in the Escrow Deposit Trust Fund, the purchase of such Escrow Securities and the direction to give certain notices, as required under the Bond Ordinance, in the opinion of Bond Counsel rendered in reliance upon the verification report of described under "VERIFICATION OF MATHEMATICAL COMPUTATIONS" in this Official Statement, the right, title and interest of the holders of the Bonds to be Refunded shall cease and become void. The maturing principal of and interest on the Escrow Securities and uninvested amounts held under the Escrow Agreement will not be available to pay principal and interest on the Series 201 1B Bonds. PMB 423657.3 ESTIMATED SOURCES AND USES OF FUNDS The following table sets forth the estimated sources and uses of funds (exclusive of accrued interest) from the proceeds of the Series 20 1 1 Bonds: Sources of Funds Principal Amount of Series 20 1 1 Bonds Net Original Issue Discount/Premium [Other available moneys] Total Estimated Sources of Funds Uses of Funds Deposit to Series 20 1 1 Construction ~ccount' Deposit to Escrow Deposit Fund Costs of issuance2 Total Estimated Uses of Funds Series 201 1A Series 201 1B Bonds Bonds ' Includes $ for capitalized interest. 2 Includes premiums for the [Series 201 1 Bond Insurance Policy] and other costs of issuance of the Series 201 1 Bonds. PMB 423657.3 THE SERIES 2011 BONDS General The Series 201 1 Bonds will be dated October 1, 2000. The Series 20 1 1 Bonds will bear interest at the rates or yields, and will mature on the dates and in the amounts set forth on the cover page of this Official Statement. Interest on the Series 201 1 Bonds is payable semiannually on 1,20- and on each September 1 and March 1 thereafter. First Union National Bank, Miami, Florida, is acting as paying agent and bond registrar for the Series 201 1 Bonds (the "Bond Registrar"). Book-Entry Onlv System The following description of the procedures and record keeping with respect to beneficial ownership interests in the Series 201 1 Bonds, payment of interest and principal on the Series 201 1 Bonds to Participants or Beneficial Owners of the Series 2011 Bonds, confirmation and transfer of beneficial ownership interest in the Series 2011 Bonds and other related transactions by and between DTC, the Participants and the Beneficial Owners of the Series 201 1 Bonds is based solely on information furnished by DTC on its website for inclusion in this Oflcial Statement. Accordingly, neither the City nor the Underwriters can make any representation concerning these matters or take any responsibility for the accuracy or completeness of such information. The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the Series 201 1 Bonds. The Series 201 1 Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered bond certificate will be issued for each maturity of the Series 201 1 Bonds, each in the aggregate principal amount of such maturity to be issued, as set forth on the inside cover page of this Official Statement, and will be deposited with DTC. DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (fiom over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA4-. The DTC Rules applicable to its Direct and Indirect Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of Series 201 1 Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Series 201 1 Bonds on DTC's records. The ownership interest of each actual purchaser of each Series 201 1 Bond ("Beneficial Owner") is in turn to be recorded PMB 423657.3 on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series 201 1 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Series 201 1 Bonds, except in the event that use of the book-entry system for the Series 201 1 Bonds is discontinued. To facilitate subsequent transfers, all Series 201 1 Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of the Series 201 1 Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 201 1 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Series 201 1 Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of the Series 201 1 Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Series 201 1 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the security documents. For example, Beneficial Owners of the Series 201 1 Bonds may wish to ascertain that the nominee holding the Series 201 1 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the Bond Registrar and Paying Agent and request that copies of notices be provided directly to them. Redemption notices shall be sent by the Bond Registrar and Paying Agent to DTC. If less than all of the Series 20 1 1 Bonds within a particular maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Series 201 1 Bonds unless authorized by a Direct Participant in accordance with DTC7s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & CO.'S consenting or voting rights to those Direct Participants to whose accounts Series 201 1 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal and interest payments on the Series 201 1 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC7s practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from City or the Bond Registrar and Paying Agent, on the payable date in accordance with their respective holdings shown on DTC's records. Payments by Direct and Indirect Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Bond Registrar and Paying Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Bond Registrar and Paying Agent, disbursement of such 5 PMB 423657.3 302 payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. NEITHER THE COUNTY NOR THE BOND REGISTRAR AND PAYING AGENT WILL HAVE ANY RESPONSIBILITY OR OBLIGATION TO ANY DIRECT OR INDIRECT PARTICIPANT OR THE PERSONS FOR WHOM THEY ACT AS NOMINEES WITH RESPECT TO THE SERIES 2011 BONDS IN RESPECT OF THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DIRECT OR INDIRECT PARTICIPANT, THE PAYMENT BY DTC OR ANY DIRECT OR INDIRECT PARTICIPANT OF ANY AMOUNT IN RESPECT OF THE PRINCIPAL OF OR INTEREST ON THE SERIES 2011 BONDS, ANY NOTICE WHICH IS PERMITTED OR REQUIRED TO BE GIVEN TO BONDHOLDERS UNDER THE BOND ORDINANCE, THE SELECTION BY DTC OR ANY DIRECT OR INDIRECT PARTICIPANT OR ANY PERSON TO RECEIVE PAYMENT IN THE EVENT OF A PARTIAL REDEMPTION OF THE SERIES 2011 BONDS, OR ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS BONDHOLDER. SO LONG AS CEDE & CO. IS THE REGISTERED OWNER OF THE SERIES 2011 BONDS, AS NOMINEE OF DTC, REFERENCES IN THIS OFFICIAL STATEMENT TO THE BONDHOLDERS OR REGISTERED OWNERS OF THE SERIES 2011 BONDS SHALL MEAN CEDE & CO., AND SHALL NOT MEAN THE BENEFICIAL OWNERS OF THE SERIES 2011 BONDS. Discontinuance of Book-Entry Only System In the event the City determines that it is in the best interest of the Beneficial Owners to obtain Series 201 1 Bond certificates, the City may notify DTC and the Bond Registrar and Paying Agent, whereupon DTC will notify the DTC Participants, of the availability through DTC of Series 201 1 Bond certificates. In such event, the City shall prepare and execute, and the Bond Registrar shall authenticate, transfer and exchange, Series 201 1 Bond certificates as requested by DTC in appropriate amounts and within the guidelines set forth in the Bond Ordinance. DTC may also determine to discontinue providing its services with respect to the Series 201 1 Bonds at any time by giving written notice to the City and the Bond Registrar and Paying Agent and discharging its responsibilities with respect thereto under applicable law. Under such circumstances (if there is no successor securities depository), the City and the Bond Registrar shall be obligated to deliver Series 201 1 Bond certificates as described herein. In the event Series 201 1 Bond certificates are issued, the provisions of the Bond Ordinance shall apply to, among other things, the transfer and exchange of such certificate and the method of payment of principal of and interest on such certificates. Whenever DTC requests the City and the Bond Registrar and Paying Agent to do so, the City will direct the Bond Registrar and Paying Agent to cooperate with DTC in taking appropriate action after reasonable notice (i) to make available one or more separate certificates evidencing the Series 201 1 Bonds to any DTC Participant having Series 201 1 Bonds credited to its DTC account; or (ii) to arrange for another securities depository to maintain custody of certificates evidencing the Series 201 1 Bonds. Registration, Transfer and Exchange In the event of discontinuance of the book-entry only system, the Series 201 1 Bonds will be subject to transfer and exchange as described below. The City shall cause the Series 201 1 Bonds to be kept at the designated corporate trust office of the Bond Registrar. Upon surrender for transfer of any Series 201 1 Bonds at the designated corporate trust office of the Bond Registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Bond Registrar and duly executed by, the registered owner or the attorney of such owner duly authorized in writing with signature guaranteed by a member firm of STAMP, SEMP or MSP signature guaranty medallion program, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the transferees a new Series 201 1 Bond or Series 201 1 Bonds of the same series and maturity, of Authorized Denominations, for the same aggregate principal amount and of like tenor. Any Series 201 1 Bond may PMB 423657.3 be exchanged at the office of the Bond Registrar for the same aggregate principal amount of such Series 201 1 Bonds and of like tenor. The execution by the City of any Series 201 1 Bonds shall constitute full and due authorization of such Series 201 1 Bonds and the Bond Registrar shall thereby be authorized to authenticate, deliver and date such Series 201 1 Bonds. The City and the Bond registrar and Paying Agent shall deem and treat the registered owner of any Series 201 1 Bond as the absolute owner of such Series 201 1 Bond for the purpose of receiving payment of or on account of principal of such Series 201 1 Bond and interest due thereon and for all other purposes. Optional Redemption of Series 2011 Bonds Optional Redemption for the Series 2011A Bonds. The Series 201 1A Bonds maturing on September 1, 20- and thereafter shall be subject to redemption prior to their stated dates of maturity, at the option of the City, from any moneys that may be available for such purpose, as a whole or in part at any time on or after September 1,20-, and if in part in any order of maturity selected by the City and by lot or by such other manner as the Bond Registrar shall deem appropriate within a maturity if less than a full maturity is to be redeemed, at the following redemption prices (expressed as a percentage of principal amount), plus accrued interest to the redemption date: Redemption Period (Dates Inclusive) September I, 20- through August l,20- September 1,20- and thereafter Redemption Price Optional Redemption for the Series 2011B Bonds. The Series 201 1B Bonds maturing on September 1, 20- and thereafter shall be subject to redemption prior to their stated dates of maturity, at the option of the City, from any moneys that may be available for such purpose, as a whole or in part at any time on or after September 1,20-, and if in part in any order of maturity selected by the City and by lot or by such other manner as the Bond Registrar shall deem appropriate within a maturity if less than a full maturity is to be redeemed, at the following redemption prices (expressed as a percentage of principal amount), plus accrued interest to the redemption date: Redemption Period (Dates Inclusive) September 1,20- through August 1,20- September 1,20- and thereafter Redemption Price % Mandatory sink in^ Fund Redemption Mandatory Sinking Fund Redemption for the Series 2011A Bonds. The Series 201 1A Bonds maturing on September 1,20- are subject to mandatory sinking fund redemption prior to maturity in part by lot or by such manner as the Bond Registrar shall deem appropriate, on September 1,20- and on each September 1 thereafter, at a redemption price equal to the principal amount thereof and accrued interest thereon to the date fixed for redemption, without premium, from Amortization Requirements as follows: PMB 423657.3 Redemption Date (September 1) Principal Amount * Maturity The Series 201 1A Bonds maturing on September 1, 20- are subject to mandatory sinking fund redemption prior to maturity in part by lot or by such manner as the Bond Registrar shall deem appropriate, on September 1, 20- at a redemption price equal to the principal amount thereof and accrued interest thereon to the date fixed for redemption, without premium, from Amortization Requirements as follows: Redemption Date (September 1) Principal Amount * Maturity Mandatory Sinking Fund Redemption for the Series 2011B Bonds. The Series 201 1B Bonds maturing on September 1,20- are subject to mandatory sinking fund redemption prior to maturity in part by lot or by such manner as the Bond Registrar shall deem appropriate, on September 1,20- and on each September 1 thereafter, at a redemption price equal to the principal amount thereof and accrued interest thereon to the date fixed for redemption, without premium, from Amortization Requirements as follows: Redemption Date (September 1) Principal Amount * Maturity The Series 201 1B Bonds maturing on September 1, 20- are subject to mandatory sinking fund redemption prior to maturity in part by lot or by such manner as the Bond Registrar shall deem appropriate, on September 1, 20- at a redemption price equal to the principal amount thereof and PMB 423657.3 accrued interest thereon to the date fixed for redemption, without premium, from Amortization Requirements as follows: Redemption Date (Se~tember 1) Principal Amount * Maturity Redemption Notice At least thirty (30) days, but not more than sixty (60) days, before the redemption date, a notice of any such redemption, either in whole or in part, (a) shall be filed by the City with the Bond Registrar, and (b) shall be mailed by the Bond Registrar, first class mail, postage prepaid, to all registered owners of < ~ Series 201 1 Bonds (which, so long as DTC shall act as securities depository for the Series 201 1 Bonds, shall be Cede & Co.) to be redeemed at their last addresses as they appear on the registration books kept by the Bond Registrar, but failure so to mail any such notice shall not affect the validity of the proceedings for such redemption. No assurance can be given by the City that DTC and DTC Participants will promptly transmit notices of redemption to Beneficial Owners. After such redemption date, interest will no longer accrue on such Series 201 1 Bonds called for redemption, so long as the required funds are on deposit for their redemptions. Owners of such Series 201 1 Bonds should thereafter look solely to such funds for payment. SECURITY FOR THE SERIES 2011 BONDS The Bonds issued under the Resolution are limited obligations of the City, solely payable from and secured by a lien upon and pledge of Net Revenues and, to the extent provided in the Bond Resolution, from Impact Fees and Special Assessments, and all moneys held in the respective Funds and Accounts established under the Bond Resolution other than the Subordinated Indebtedness Account and the Rebate Fund (collectively, the "Pledged Revenues"). See Appendix D hereto for a further description of the Pledged Revenues. The Series 201 1 Bonds are payable from and secured by the Pledged Revenues on a parity with any Additional Bonds and Refunding Bonds that may be issued from time to time under the Resolution and Alternative Parity Debt and certain Short-Term Indebtedness that may be issued from time to time. With respect to the Series 201 1 Bonds, there will be no Special Assessments or Impact Fees available to pay principal of and interest on the Series 201 1 Bonds, and therefore, as applied to the Series 201 1 Bonds, "Pledged Revenues" shall not be deemed to include Special Assessments or Impact Fees. "Net Revenues" is defined in the Bond Resolution as being, for any particular period, the amount of Revenues for such period less Current Expenses for such period. "Revenues" is defined in the Bond Resolution as all moneys received by the City in connection with or as a result of its ownership or operation of the Stormwater Utility, including the income derived by the City from the provision of stormwater management utility services, any proceeds of use and PMB 423657.3 occupancy insurance on the Stormwater Utility or any part thereof, payments made to the City under Interest Rate Swap arrangements, income from investments made under the Resolution and, except for certain purposes related to the issuance of Additional Bonds under the Bond Resolution, amounts transferred or to be transferred from the Rate Stabilization Account; provided, however, Revenues shall not include grants, contributions or donations, investment income from investments of moneys on deposit in the Construction Fund, the Subordinated Indebtedness Account, the Impact Fee Account and the Special Assessment Account, proceeds of insurance (except use and occupancy insurance) and condemnation awards, moneys held in the Subordinated Indebtedness Account and in any Arbitrage Rebate Fund created pursuant to the Bond Resolution, proceeds of sales of property constituting a part of the Stormwater Utility, Special Assessments, the proceeds of Bonds or other Utility Debt and Impact Fees. "Current Expenses" is defined in the Bond Resolution as the City's reasonable and necessary current expenses of maintenance, repair and operation of the Stormwater Utility and shall include, without limiting the generality of the foregoing, all ordinary and usual expenses of maintenance and repair, which may include expenses not annually recurring, any reasonable payments to pension or retirement funds properly chargeable to the Stormwater Utility, insurance premiums, engineering expenses relating to maintenance, repair and operation, fees and expenses of the Bond Registrar, legal and accounting expenses, any fees, fines, or penalties lawfully imposed on the Stormwater Utility, any taxes which may be lawfully imposed on the Stormwater Utility or its income or operations and reserves for such taxes, annual fees for the maintenance of Credit Facilities, Liquidity Facilities, Reserve Account Insurance Policies, Reserve Account Letters of Credit or Interest Rate Swaps (other than payments due under an Interest Rate Swap on a parity with interest due on the Bonds and termination payments thereunder), and any other expenses required to be paid by the City in connection with the Stormwater Utility under the provisions of the Resolution or by law, including any amounts required from time to time to pay arbitrage rebate to the United States of America or to fund the Arbitrage Rebate Fund, but shall not include any reserves for extraordinary maintenance or repair, or any allowance for depreciation, or any administrative expenses payable to the City's General Fund, or any deposits or transfers to the credit of the Debt Service Account, the Reserve Account, the Rate Stabilization Account, the Subordinated Indebtedness Account, the Impact Fee Account or the Special Assessment Account. "Impact Fees" is defined in the Bond Resolution as all nonrefundable (except at the option of the City) capital recovery charges, pollution control fees, capacity charges and other similar fees and charges separately imposed by the City as a nonuser capacity charge for the proportionate share of the cost of expanding, oversizing, separating or constructing Improvements to the Stormwater Utility and any investment earnings from the investment of funds on deposit in the Impact Fee Account, but excluding any charges imposed by the City on persons connecting to the Stormwater Utility for the cost of physically connecting thereto, such as the costs of excavation, plumbing and landscaping. The Series 2011 Bonds will have a first lien on the Pledged Revenues on a parity with any Additional Bonds, Refunding Bonds, Alternative Parity Debt and certain Short-Term Indebtedness that may hereafter be issued from time to time. There are currently no other outstanding obligations of the City with any lien on the Pledged Revenues. The City is not obligated to pay the Series 201 1 Bonds or the interest thereon except from the Pledged Revenues and neither the faith and credit nor any physical properties of the City are pledged to the payment of the Series 201 1 Bonds. The issuance of the Series 201 1 Bonds does not directly or indirectly or contingently obligate the City to levy any form of taxation whatever therefor or to make any appropriation for their payment except from the Pledged Revenues. Neither the full faith and credit nor the taxing power of the City, Miami-Dade County, Florida (the "County"), the State of Florida or any political subdivision thereof is pledged to the payment of the Series 201 1 Bonds. PMB 423657.3 Flow of Funds The City maintains a special fund designated the "Stormwater Utility Fund" (the "Enterprise Fund"). The Bond Resolution establishes within the Enterprise Fund the Debt Service Account (and within the Debt Service Account, the Bond Service Subaccount and Redemption Subaccount), Reserve Account, Rate Stabilization Account, Subordinated Indebtedness Account, Impact Fee Account and Special Assessment Account. The Bond Resolution also establishes the Construction Fund. All such funds and accounts will be held by the City, and no independent trustee has been appointed to hold the moneys in such funds for the benefit of the Bondholders. The City will deposit all Revenues collected from the Stormwater Utility's operations into the Enterprise Fund. Not later than the 20th day of each month, the City will withdraw from the Enterprise Fund (except for an amount equal to the next two month's Current Expenses under the Annual Budget, which amount shall be held for the payment of Current Expenses) and deposit the funds withdrawn in the following order: (a) To the Bond Service Subaccount of the Debt Service Account, an amount which, together with amounts concurrently deposited therein from Impact Fees pursuant to the Bond Resolution and from Special Assessments pursuant to the Bond Resolution, will equal one-sixth (116) of interest payable on the Bonds of each Series on the next Interest Payment Date, plus one- twelfth (1112) (or, if principal is payable semiannually, one-sixth (I/6)) of the next maturing installment of principal on all Serial Bonds then Outstanding; such amounts to be adjusted in each month intervening between the date of delivery of the Bonds and the next succeeding Interest Payment Date or principal payment date to add to the required deposit an additional amount which, when multiplied by the number of deposits to the credit of the Bond Service Subaccount required to be made will equal the amount needed to pay principal and interest on such Bonds when such payments are due on the next Interest Payment Date or principal payment date; (b) To the Redemption Subaccount of the Debt Service Account, an amount which, together with amounts concurrently deposited therein from Impact Fees pursuant to the Bond Resolution and from Special Assessments pursuant to the Bond Resolution, will equal one- twelfth (142) (or, if any Bonds are retired semiannually, one-sixth (1/6)) of the principal amount of Term Bonds of each Series to be retired for such Fiscal Year; (c) To the Reserve Account, if necessary, the amount needed to make the amount deposited to the credit of the Reserve Account in such month equal to the Reserve Account Deposit Requirement for such month; provided, however, that if the Reserve Account Deposit Requirement is being satisfied by the restoration of any amounts drawn or paid under a Reserve Account Insurance Policy or a Reserve Account Letter of Credit, there shall be paid to the provider thereof such amount, if any, of any balance remaining after the deposits under clauses (a) and (b) above, as may be required to cause the Reserve Account Deposit Requirement to be satisfied; (d) To the Rate Stabilization Account, amounts determined from time to time by the Commission; and (e) To the Subordinated Indebtedness Account, one-twelfth (1112) of the amount required to satisfy the principal, redemption premium, if any, and interest requirements of Subordinated Indebtedness for the succeeding twelve month period and the amount, if any, required to be deposited in any special reserve subaccount established within the Subordinated Indebtedness Account. PMB 423657.3 Impact Fees are required to be deposited to the Impact Fee Account, and Special Assessments are required to be deposited to the Special Assessment Account, and the amounts in such accounts are required to be used for the specific purposes for which such Impact Fees or Special Assessments have been levied. See Appendix D hereto for a further description of such Accounts. Reserve Account General. Under the Resolution, the City has established the Reserve Account within the Enterprise Fund. The Reserve Account is held for the benefit of all Bonds Outstanding except that the Series Resolution for one or more particular Series of Bonds may establish a separate subaccount within the Reserve Account for such particular Series of Bonds and, in such event, such Series of Bonds shall be secured only by the moneys held for the credit of such subaccount and by no other amounts held for the credit of the Reserve Account, and the Bonds outstanding of any other Series will have no claim whatsoever on the moneys held for the credit of such separate subaccount in the Reserve Account. No separate subaccount is being established with respect to the Series 201 1 Bonds. The Reserve Account Requirement under the Resolution is an amount equal to the lesser of (i) the Maximum Principal and Interest Requirements for all outstanding Bonds, or (ii) the maximum amount allowed to be funded from Bond proceeds under the Code; provided that if the Series Resolution corresponding to a Series of Bonds provides for the establishment of a separate subaccount in the Reserve Account to secure only such Series of Bonds (with such Series of Bonds having no claim on the other moneys deposited to the credit of the Reserve Account), the Reserve Account Requirement for such Series of Bonds shall be calculated as set forth in the corresponding Series Resolution. Upon the issuance of a Series of Bonds, unless funded from the proceeds of such Series of Bonds, the City is required to make deposits to the Reserve Account from the Enterprise Fund each month (after making the deposits to the Debt Service Account and Redemption Account) of one-twelfth (1112) of the increase in the Reserve Account Requirement resulting from the issuance of such Series of Bonds until the amount on deposit therein equals the Reserve Account Requirement, unless the Series Resolution for such Series of Bonds establishes a separate subaccount in the Reserve Account to secure only such Series of Bonds (with such Series of Bonds having no claim on the other moneys deposited to the credit of the Reserve Account). If the Reserve Account or any separate subaccount therein for any Series contains less than the Reserve Account Requirement, then the City is required to make deposits therein from the Enterprise Fund each month (after making deposits to the Debt Service Account and Redemption Account), of one-twelfth (1112) of the deficiency, until the Reserve Account Requirement is met. Moneys held for the credit of the Reserve Account will first be used for the purpose of paying the interest on and the principal of the Bonds whenever and to the extent that the moneys held for the credit of the Bond Service Subaccount (after any transfers thereto from the Rate Stabilization Account) shall be insufficient for such purpose and thereafter for the purpose of making deposits to the credit of the Redemption Subaccount in respect of such Bonds whenever and to the extent that withdrawals from the Enterprise Fund (including transfers from the Rate Stabilization Account) are insufficient for such purposes; provided, however, that moneys held for the credit of a separate subaccount in the Reserve Account shall be applied to the foregoing purposes and in the foregoing manner, but only for the benefit of the Series of Bonds for which such separate subaccount was established. Unless otherwise specified by resolution of the Commission, if the moneys held in the Reserve Account exceed the Reserve Account Requirement, such excess is required to be withdrawn and deposited to the credit of the Enterprise Fund. The Resolution permits the City to satisfy all or a portion of the Reserve Account Requirement by depositing in the Reserve Account (or any subaccount therein) a Reserve Account Insurance Policy or Reserve Account Letter of Credit, in lieu of any required deposits into, or in substitution for the amounts PMB 423657.3 on deposit in, the Reserve Account (or the applicable subaccount therein). The entity providing such facility must, at the time of so providing, be of sufficient credit quality to enable debt backed by its facility to be rated in one of the two highest rating categories (without regard to any gradations within such categories) by either Fitch, Inc., Standard & Poor's Ratings Services or Moody's Investors Service, Inc. [Series 201 1 Reserve Account Insurance Policy. Concurrently with the issuance of the Series 201 1 Bonds, will issue its Series 201 1 Reserve Account Insurance Policy. The Series 201 1 Reserve Account Insurance Policy unconditionally guarantees the payment of that portion of the principal of and interest on the Bonds which has become due for payment, but shall be unpaid by reason of nonpayment by the City, provided that the aggregate amount paid under the Series 201 1 Reserve Account Insurance Policy may not exceed the maximum amount set forth in the Series 201 1 Reserve Account Insurance Policy, $ . r ] will make such payments to the Bond Registrar for the Bonds on the later of the date on which such principal and interest is due or on the business day next following the day on which 1 shall have received telephonic or telegraphic notice subsequently confirmed in writing or written notice by registered or certified mail from the Bond Registrar of the nonpayment of such amount by the City. The term "nonpayment" in respect of a Bond includes any payment of principal or interest made to an owner of a Bond which has been recovered from such owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final nonappealable order of a court having competent jurisdiction. This Official Statement contains a section regarding the ratings assigned to the Series 201 1 Bonds and reference should be made to such section for a discussion of such ratings and the basis for their assignment to the Series 20 1 1 Bonds. 1 Rate Covenant The City has covenanted in the Bond Resolution that it will fix, charge and collect reasonable rates and charges for the use of the services and facilities furnished by the Stormwater Utility and that from time to time, and as often as it shall appear necessary, it will adjust such rates and charges by increasing or decreasing the same or any selected categories of rates and charges so that the Net Revenues (excluding from the computation of Current Expenses for any Fiscal Year any amount received from any source other than Revenues and applied to the payment of Current Expenses in such Fiscal Year) will be sufficient to provide an amount in each Fiscal Year at least equal to one hundred ten percent (1 10%) of Principal and Interest Requirements on all Bonds for such Fiscal Year and 100% of all amounts required to be deposited to the Reserve Account (or paid to the provider of a Reserve Account Insurance Policy or Reserve Account Letter of Credit), Rate Stabilization Account and Subordinated Indebtedness Account for such Fiscal Year. If the City has covenanted to levy Special Assessments or Impact Fees against property to be benefited by any Improvements (which levy is done in accordance with State law), and if, in the case of Special Assessments, the City has pledged such Special Assessments to the payment of Bonds or portions thereof and if, in the case of Impact Fees, such Impact Fees are legally available for application with respect to the payment of Bonds or portions thereof, then the Net Revenues in any Fiscal Year for purposes of the rate covenant shall be increased by the amount which the Consulting Engineers estimate will be received from the levy of said Special Assessments or Impact Fees, as the case may be, during such Fiscal Year, said amount to be the installment payments on the Special Assessments or Impact Fees, as the case may be, plus, in the case of Special Assessments, any interest payable on the unpaid portion of the Special Assessments during such Fiscal Year. PMB 423657.3 If in any Fiscal Year the Net Revenues are less than the amount required under the preceding paragraphs, within 30 days of the receipt of the audit report for such Fiscal Year (which, under the Bond Resolution, may be the provisions of the City's Consolidated Audited Financial Report relating to the Stormwater Utility), the City is required to either cause the Finance Director, or employ a Rate Consultant, to review and analyze the financial status and operations of the Stormwater Utility, and to submit, within 60 days thereafter, a written report to the City recommending revisions of the rates, fees and charges of the Stormwater Utility and the methods of operation of the Stormwater Utility that will result in producing the amount so required in the following Fiscal Year. Promptly upon its receipt of such recommendations, the City is required to transmit copies thereof to the City Manager and Finance Director and to revise its rates, fees and charges, or alter its methods of operation and take such other action as will conform with such recommendations. If the City fails to comply with the recommendations of the Finance Director or Rate Consultant, as applicable, the registered owners of not less than 10% in principal amount of all Bonds then Outstanding may institute and prosecute an action or proceeding in any court or before any board or commission having jurisdiction to compel the City to comply with the recommendations and the requirements of the preceding paragraph. If the City complies with all recommendations of the Finance Director or Rate Consultant, as applicable, in respect to its rates, fees, charges and methods of operation, the failure of Net Revenues to meet the rate covenant described above will not constitute an Event of Default so long as the Revenues, together with available moneys in the Funds and Accounts created under the Bond Resolution, are sufficient to pay in cash the Current Expenses and to pay the Principal and Interest Requirements on all Outstanding Bonds and other Utility Debt for such Fiscal Year. Additional Bonds Additional Bonds of the City may be issued under and secured by the Bond Resolution, on a parity as to the pledge of the Net Revenues of the Stormwater Utility with the Series 201 1 Bonds and any Additional Bonds, Refunding Bonds, Alternative Parity Debt and Short-Term Indebtedness issued on a parity therewith and secured by the Bond Resolution and then Outstanding, subject to the conditions described below, from time to time, for the purpose of paying all or any part of the Cost of any Improvements and the funding of the Reserve Account and/or the Rate Stabilization Account. Before any Additional Bonds are permitted to be issued under the Bond Resolution, there shall be filed with the City, among other things, the following: (a) a certificate of the Finance Director, an Accountant or the Rate Consultant, demonstrating that either (i) the percentage derived by dividing the Net Revenues projected for the Stormwater Utility for the Fiscal Year following the Fiscal Year in which the Completion Date of the Improvements to be financed by the Additional Bonds then to be delivered is expected to occur, as certified by the Rate Consultant, adjusted as permitted below, by the Maximum Principal and Interest Requirements, including the Principal and Interest Requirements with respect to the Additional Bonds then to be delivered, for any future Fiscal Year is not less then one hundred ten percent (I 10%); or (ii) the percentage derived by dividing the Net Revenues for any period of twelve consecutive months selected by the City out of the eighteen months preceding the delivery of such certificate, by the Maximum Principal and Interest Requirements, including the Principal and Interest Requirements with respect to the Additional Bonds then to be delivered, for any future Fiscal Year is not less than 110% (the period during which Net Revenues are determined being referred to hereinafter as the "Measurement Period"); and PMB 423657.3 (b) if the certificate described in (a)(i) above is being delivered, a certificate of the Rate Consultant setting forth the projected Net Revenues for the Fiscal Year following the Fiscal Year in which the Completion Date of the Improvements to be financed by the Additional Bonds then to be delivered is expected to occur; and (c) a certificate of the Finance Director to the effect that no event of default under the Bond Resolution and no event which with the passage of time, the giving of notice or both would become an event of default, has occurred within the twelve consecutive calendar months prior to the date of such certificate and is continuing, or, if any such event or events has occurred and is continuing, that the issuance of such Series of Additional Bonds will cure the same. In determining whether to execute and deliver the certificate mentioned in paragraph (a) above, the following adjustments to Net Revenues may be made: (1) If the City, prior to the issuance of the proposed Additional Bonds, shall have increased the rates, fees, rentals or other charges for the services of the Stormwater Utility, the Net Revenues for the Measurement Period shall be adjusted to show the Net Revenues which would have been derived from the Stormwater Utility in such Measurement Period as if such increased rates, fees, rentals or other charges for the services of the Stormwater Utility had been in effect during all of such Measurement Period. (2) If the City shall have acquired or has contracted to acquire any privately or publicly owned existing stormwater management utility system, then the Net Revenues derived from the Stormwater Utility during the Measurement Period shall be increased by addition to the Net Revenues for the Measurement Period of the Net Revenues which would have been derived from said existing stormwater management utility system as if such existing stormwater management utility system had been a part of the Stormwater Utility during the Measurement Period. For the purposes of this paragraph, the Net Revenues derived from said existing stormwater management utility system during the Measurement Period shall be adjusted by deducting the cost of operation and maintenance of said existing stormwater management utility system from the gross revenues of said existing stormwater management utility system in the same manner provided in the Resolution for the determination of Net Revenues. (3) If the City, in connection with the issuance of Additional Bonds, shall enter into a contract (with a duration not less than the final maturity of such Additional Bonds) with any public or private entity whereby the City agrees to furnish services in connection with any stormwater management utility system then the Net Revenues of the Stormwater Utility during the Measurement Period shall be increased by the least amount which said public or private entity shall guarantee to pay in any one year for the furnishing of said services by the City, after deducting therefrom the proportion of operating expenses and repair, renewal and replacement cost attributable in such year to such services. Such payments shall be deemed to be Net Revenues of the Stormwater Utility and pledged for the Bonds in the same manner as other Net Revenues of the Stormwater Utility. (4) If the City has covenanted to levy Special Assessments or Impact Fees against property to be benefited by any Improvements (which levy must be done in accordance with State law), and if, in the case of Special Assessments, the City has pledged or pledges such Special Assessments to the payment of Bonds or portions thereof and if, in the case of Impact Fees, such Impact Fees are legally available for application with respect to Bonds or portions thereof, then solely for purposes of clauses (a) and (b) above the Net Revenues during the Measurement Period shall be increased by the amount which the Consulting Engineers estimate will be received from the levy of said Special Assessments or Impact Fees, as the case may be, during any Fiscal Year occurring within three years of the date of the sale of such Additional Bonds, said amount to be the installment payments on the Special Assessments or Impact Fees, as the PMB 423657.3 case may be, plus, in the case of Special Assessments, any interest payable on the unpaid portion of the Special Assessments during such Fiscal Year. refund in^ Bonds Under the provisions of the Bond Resolution, Refunding Bonds of the City may be issued under and secured by the Bond Resolution, on a parity with the Series 201 1 Bonds, and any Additional Bonds, Refunding Bonds, Alternative Parity Debt and Short-Term Indebtedness issued on a parity therewith, for the purpose of refunding all or any portion of the Series 201 1 Bonds or such additional parity Bonds Outstanding, funding the Reserve Account andlor the Rate Stabilization Account and paying any expenses in connection with such refunding; provided that, before such Additional Bonds are permitted to be issued, there shall be filed with the City Clerk, among other things, either (i) a certificate of the Finance Director that the issuance of the Refunding Bonds will result in a decrease in total Principal and Interest Requirements for all Bonds outstanding, or (ii) the certificates required by (a), (b) and (c) under the caption "Additional Bonds" above; provided, however, that with respect to the certificates required by (a) and (b), the projected Net Revenues shall be computed for the Fiscal Year immediately following the issuance of the Refunding Bonds. Other Indebtedness The City may also issue other types of indebtedness as provided in the Bond Resolution, including certain Short-Term Indebtedness and Alternative Parity Debt on a parity with the Series 201 1 Bonds. Such Short-Term Indebtedness may be issued without meeting any parity test. For a description of such other types of indebtedness and the tests applicable to the issuance thereof, see Appendix D hereto (Sections 2 1 1 and 2 12 of the Original Resolution). [MUNICIPAL BOND INSURANCE] [To be determined] THE STORMWATER UTILITY The following is intended to provide only a summary description of the Stormwater Utility. For a more detailed description, see the report of Camp Dresser & McKee hc. annexed hereto as Appendix B. General The City installed the current stormwater collection and disposal system beginning in the early 1940s. The infrastructure consisted of a network of catch basins, conveyance piping, and positive outfalls that discharge stormwater into the surrounding waterways. The installation of the Stormwater Utility paralleled development of the City and was focused initially in the South Beach and Mid-Beach areas. In addition to the City's drainage network, the Florida Department of Transportation has installed several independent drainage systems within the City. On June 18, 199 1, through the adoption of Ordinance 9 1-66, the Board of County Commissioners of Miami-Dade County established a county-wide stormwater utility. On September 2, 1992, the City adopted Resolution No. 92-20579, which authorized the execution of an Interlocal Agreement with the County. The Interlocal Agreement formalized the relationship between the County and the City and established responsibilities for the planning, control, operation, construction, maintenance, repair, and enhancement of stormwater systems within the limits of the City. In March 1996, the City, through Commission Resolution 96-21923, notified the County of its desire to be excluded from the County PMB 423657.3 stormwater utility and through the adoption of Ordinance No. 96-305 1, on September 1 1, 1996, established an independent Stormwater Utility for the City. [Currently, the City owns the Stormwater Utility within its geographical boundary, which covers an area of approximately 4,200 acres, including a number of discrete islands located in Biscyane Bay. The City is divided into 172 drainage basins. The stormwater system within those basins is comprised of approximately 59 miles of piping, 6,000 inlets, 3,000 manholes, and 350 positive outfalls. The Stormwater Utility is responsible for protecting the waterways from pollution and removal of stormwater from the roadways. The Stormwater Utility manages and controls the amount of runoff that is discharged in the stormwater system. It is also responsible for maintaining the stormwater conveyance system, relieving flooding conditions, and complying with National Pollutant Discharge System ("NPDES") permit requirements.] VDATE] The City exercises exclusive jurisdiction, control and supervision over the Stormwater Utility. The Commission has the legal authority to fix, charge and collect from its customers, rates, fees, and charges, and to acquire, construct, finance and operate the Stormwater Utility, without supervision or regulation by any other commission, board, bureau, agency or other political subdivision of the County or State (provided, however, that environmental impacts are regulated as described herein under "THE STORMWATER UTILITY - Governmental Regulation"). The Public Works Department The Public Works Department is responsible for the operation and maintenance of the facilities of the stormwater system. Mr. Fred H. Beckmann is the Public Works Director reporting to the Assistant City Manager, Duncan Ballantyne, and is assisted by one Assistant Public Works Director. The Public Works Department is supported by other departments within the City. The City Manager's office provides managerial and administrative guidance. The Finance Department performs the utility billing function. The Procurement Department performs several functions: handles requests for payment of invoices received by Public Works; advertisement and award of all construction contracts; handles all requests for proposals for engineering consultant contracts; facilitates purchases of required equipment. The Office of Budget and Performance Improvements (OBPI) approves all spending requests and allocates funding for all water, wastewater and stormwater operations. The Parks Department handles green space restoration. Fleet Maintenance and Property Management perform vehicle fleet maintenance and building maintenance, respectively. The Human Resources Department handles all personnel functions. The Capital Improvement Project Office provides planning, design review, fiscal and construction management services of City capital projects. The Infrastructure Director is responsible for the daily operations of the stormwater system. The Infrastructure Director oversees six divisions, Water Maintenance and Construction, Water Meter Maintenance, Sewer Maintenance and Construction, Pump Station Maintenance, Stormwater, and Warehouse. Other Public Works Department Divisions include Engineering, Environmental, Streets and Street Lights, Geographic Information Systems (GIs), and Administration. The following table identifies those management officials of the City who are responsible for the operation of the Stormwater Utility: PMB 423657.3 Name Jorge M. Gonzalez Duncan Ballantyne Fred H. Beckmann Patricia D. Walker Title City Manager Assistant City Manager Experience Jorge M. Gonzalez was selected on June 7, 2000 to serve as the City Manager of the City and began serving the City on August 21,2000. Prior to his appointment as the City Manager, Mr. Gonzalez served as Senior Assistant Chief Administrative Officer in Montgomery County, Maryland. From 1995-1999, he served as an Assistant County Manager in Arlington County, Virginia. Prior to that post, he served as the Assistant Director of Administration for the Center for the Fine Arts in Miami-Dade County and as the Management Consultant for the Audit and Management Services Department in Miami-Dade County. Mr. Gonzalez received both his Bachelor of Arts degree in Politics and Public Affairs and his Masters degree in Public Administration from the University of Miami. Public Works Director Finance Director Appointed Finance Director for the City of Miami Beach in March 1997; Director of Airports, Broward County, Florida, 1994- 1997; Deputy Director, Broward County Aviation Department 1992-1 994, Director of Finance, 1992, Executive Assistant to the Aviation Director, 199 1-1 992; Comptroller, Dade County Aviation Department, 1980-1 990, Chief Accountant, 1978-1 980; Senior Accountant, Price Waterhouse & Co., 1973- 1978. Education: Florida State University, B.S. Accounting; Florida International University, M.S.M. Accounting. Certification: Certified Public Accountant, Florida 1974. PMB 423657.3 The Public Works Department is supported by other departments within the City. The City Manager provides managerial and administrative guidance. The Finance Department performs the utility billing function, and processes invoices for all consultant and construction contracts. The Procurement Department handles all requests for payments of invoices received by the Public Works Department, advertises and awards all construction contracts, handles all requests for proposals for engineering consultant contracts, and makes all required equipment purchases. The City's Office of Management and Budget approves all spending requests and allocates funding for all water, wastewater and stormwater operations. The Parks Department handles greenspace restoration. Fleet Maintenance and Property Management performs vehicle fleet maintenance and building maintenance. The Human Resources Department handles all personnel functions. Description of the exist in^ Stormwater Utility The Stormwater Utility is responsible for protecting the waterways from pollution and flood protection or the removal of stormwater from the roadways. The Stormwater Utility meets its flood protection objectives through three methods: filling land and constructing new buildings and improvements at elevations above the anticipated flood elevation; lowering the water table through the construction of canals; and the construction of storm sewers and other stormwater collection and conveyance systems to remove stormwater from the land surface and discharge into the surrounding waterways or into the groundwater. - * The filling or elevating of land prior to the improvement of property is accomplished by maintaining building codes that require all new construction to be completed with a finished floor elevation above the 100-year flood stage elevation. A canal network is also utilized as part of the City's stormwater management program. The canals are constructed along natural drainage features and connect salt water bodies at the same elevation. Continuous concrete bulkheads (sea-walls) were used in the construction process to reduce erosion of soil of the adjacent filled lands. Water movement through these canals is accomplished by tidal flushing action only. The Collins Canal connects the southern end of Indian Creek Waterway with Biscayne Bay at Belle Island. Stormwater runoff enters this canal from Dade Boulevard to the north and from various street-ends to the south. The canals are designed in conjunction with the storm sewer system and reportedly were sized to handle a 25-year storm having a 24-hour duration. The third method of stormwater management is through the use of storm sewers and other stormwater collection and conveyance devices. Storm sewers serve to collect and dispose of excess water after a rainfall event through containment and/or rapid disposal by positive gravity-driven outlets. Storm sewers are comprised of a complex system of collection devices (typically catch basins), pipes, and outfalls that collect, convey and discharge stormwater runoff directly into surface water bodies. [UPDATE] The Capital Improvement Propram The 1997 Stormwater Master Plan identified 34 drainage basins as high priority basins. The CIP originally presented in the 1997 SWMP Master Plan identified proposed projects by stormwater basin number. Improvements are now grouped together and reclassified by the neighborhood or general community. The purpose of these improvements is to provide a higher level LOS defined by flood protection and control of pollutant loading in the stormwater system. The improvements will consist of one or a combination of the following: PMB 423657.3 m Repair, replace, or install curb and gutter Pavement re-grading Repair, replace, or install collection systems (catch basins, manholes, storage facilities, pumping stations, and pipes) Repair or upgrade existing outfalls (inclusive of tidal backflow prevention devices) Install exfiltration trenches, gravity or pressurized recharge wells The Capital Improvement projects listed below are a combination of active projects pre-defined by the 1997 Stormwater Master Plan specific project Basis of Design Reports, and projects identified as part of the 201 1 SWMP. All the listed projects are identified for funding under the Series 201 1 Bonds. The listed projects provide comprehensive solutions for improving the City's stormwater management system performance for the next 50 years. Appropriate consideration has been given to potential sea level rise, water quality of the Biscayne Bay, and O&M of an expanded system. The presented capital improvements allow the City's stormwater systems to meet the increasing performance, permitting and regulatory demands while modernizing the existing system to meet the level of service mandated for the City of Miami Beach. Citywide Stormwater Master Plan Project Description- The 201 1 SWMP is intended to be a guide for improving the City's stormwater management system performance for the next 50 years. The SWMP will provide a preliminary schedule of prioritized capital improvements necessary to allow the City's stormwater systems to meet the increasing performance and regulatory demands and modernize existing systems while maintaining the high level of service expected in a modern urban environment. Cost Allocated to Series 201 1 Bonds: $600,000 Nautilus Neighborhood Improvements Project Description- The 1997 Stormwater Master Plan identified capital improvements for the Nautilus Neighborhood. The CIP for the Nautilus neighborhood has been constructed. The completed construction project was based off the 1997 Stormwater Master Plan Recommendations calling for approximately 8,600 linear feet of pipe and 149 recharge wells. Cost Allocated to Series 20 1 1 Bonds: $167,220 Normandy Isle Neighborhood Improvements Project Description- The 201 1 SWMP identified capital improvements for the Normandy Isle Neighborhood. Stormwater upgrades were completed recently, but do not cover the full capital cost for improvements identified in the 201 1 SWMP. The full extent of capital improvements required is as follows: Approximately 130 recharge wells; 20 first flush inlets and 80 curb inlets along with improvements to the curb and gutter and sidewalk systems. Upgrades of 36- to 48-inch diameter pipes and installation of 3- x 5-ft and 4- x 6-ft box culverts; 11 backflow preventers; four pump stations (20 to 70 cfs in capacity) to single diameter upsized outfalls to the Biscayne Bay. Outfall upgrades include 18- PMB 423657.3 to 54-inch diameter pipes and 900 feet of force main. The pump stations are required due to the low lying areas and are not specifically required to address the head loss requirements associated with the backflow preventers. Cost Allocated to Series 20 1 1 Bonds: $198,006 Normandy Shores Neighborhood Improvements Project Description- The 1997 Stormwater Master Plan identified capital improvements for the Normandy Shores Neighborhood. The CIP for the Normandy Shores neighborhood has been constructed. The completed construction was based off the 1997 Stormwater Master Plan Recommendations calling for approximately 12,900 linear feet of pipe and 82 recharge wells. Cost Allocated to Series 201 1 Bonds: $2,066,698 Seawall - Lincoln Road Streetend West Project Description- In 2003, the City performed a Preliminary Inspection Report on Seawall and Outfall Conditions (Coastal Planning & Engineering, 2003). The Lincoln Road Streetend West was listed as one of the top ranked damaged seawalls. The 2003 report recommends repairs including sealing of cracks and construction of a concrete seawall cap to stop further tilting of the seawall. Cost Allocated to Series 20 1 1 Bonds: $173,000 Drainage Improvements - 44th St. & Royal Palm Project Description- The design for the project area consists of a new stormwater collection and conveyance system including a 48-inch diameter outfall replacing an existing 15-inch diameter outfall. Cost Allocated to Series 201 1 Bonds: $650,000 Belle Isle Outfall Pipe Replacement Project Description- The CIP components include three pumped recharge wells and the expansion of stormwater outfalls to Biscayne Bay. Construction of the project is complete. Cost Allocated to Series 201 1 Bonds: $5 1 1,238 Oceanfront Neighborhood Improvements Project Description- The 1997 Stormwater Master Plan identified capital improvements for the Oceanfront Neighborhood. The CIP for the Oceanfront neighborhood is under construction. The completed design was based off the 1997 Stormwater Master Plan Recommendations calling for approximately 10,500 linear feet of pipe and 103 recharge wells. Cost Allocated to Series 201 1 Bonds: $383,246 Right-of- Way (ROY Improvements on Prairie Avenue Project Description- The CIP stormwater components include the construction of swales and other water quality components. The project is currently scheduled for advertisement for construction. PMB 423657.3 Cost Allocated to Series 201 1 Bonds: $377,000 Star Island ROW Project Description- In 2002, the City developed a Neighborhood No. 13 Basis of Design Report (EDAW, 2002) which included ROW improvements for Star Island. The Basis of Design Report defines the stormwater-related components of this ROW project as swale regrading, 7,600 linear feet of concrete curbing and approximately 72,000 square feet of roadway resurfacing to address localized flooding. Cost Allocated to Series 201 1 Bonds: $ 803,000 Biscayne Point Project Description- The 1997 Stormwater Master Plan identified capital improvements for Biscayne Point. The CP for Biscayne Point is under construction. The completed design was based off the 1997 Stormwater Master Plan Recommendations calling for approximately 1.200 linear feet of pipe and 19 recharge wells. Cost Allocated to Series 201 1 Bonds: $6,591,259 Bayshore BP-8B /Lower No. Bay Road Project Description- The 1997 Stormwater Master Plan identified capital improvements for this project. The proposed improvements consist of a pressurized recharge well system (i.e., baffle box, pump station, two wells per pump station, and a passive by-pass structure). The drainage systems include new baffle boxes which are connected upstream to the two newly designed pressurized recharge well systems. The baffle box is designed to provide at least 90 seconds of detention prior to discharge into the Class V wells. An overflow weir set at elevation 2.5-feet (Bay Datum) allows high flows to bypass the wells and continue to the original outfalls. Tideflex valves as backflow preventers are also included as a design component at each of the four outfalls. From approximately West 29th Street northward, a series of existing and proposed inletslpipes convey runoff to an existing outfall along West 29th Street. The project was recently awarded for construction. Cost Allocated to Series 201 1 Bonds: $3,5 15,28 1 Bayshore BP-8A / Central Project Description- The 1997 Stormwater Master Plan identified capital improvements for this project. The CIP stormwater components include the construction of swales and other water quality components. The project was recently awarded for construction. Cost Allocated to Series 201 1 Bonds: $9,856,605 Bayshore BP-8C/ Lake Pancoast Project Description- The 1997 Stormwater Master Plan identified capital improvements for this project. The final design solution includes 125 feet of exfiltration trench in combination with a pumped (pressurized) recharge well system located at 24th Street and Flamingo Drive. An additional 100 feet of PMB 423657.3 exfiltration trench is proposed at the intersection of Dade Boulevard and Flamingo Place. The project was recently awarded for construction. Cost Allocated to Series 201 1 Bonds: $ 1,599,060 Venetian Islands - San Marino Di Lido & Rivo Alto Islands BP-13C Project Description- The ROW improvement project for the Venetian Islands is in the permitting stage. The design consultant presents drainage improvements through swale reconfiguration; roadway re- grading toward existing storm water inlets; and spot reconstruction of existing structures previously coordinated with the project manager for the Miami-Dade County Venetian Causeway Project. The County's project was to be designed to intercept most of the stormwater runoff that presently flows into the side streets and causes flooding conditions in the immediate areas. The City's retained Engineer of Record for this neighborhood improvement project is responsible for verifying that the City-defined redesign plans will work in conjunction with the County's plans. The basis of design report (Schwebke-Shiskin & Associates, 2010) indicates that improvements include exfiltration trenches, control structures and rehabilitation of the existing outfalls for the San Marino, Dilido, and Rivo Alto Islands. Cost Allocated to Series 20 1 1 Bonds: $2,0 16,120 Sunset Islands 1 & 2 ROW BP-8E Project Description- The design of the Sunset Islands No. 1 and 2 stormwater improvements (Chen Moore & Associates, 201 1) consists of a new collection and conveyance system with curb inlets and 18-inch HDPE pipes. Flow and pollution abatement is provided by 15 exfiltration trenches (five on Island No. 1, ten on Island No. 2). The design proposes maintenance and identically sized replacements for existing damaged outfalls. Cost Allocated to Series 20 1 1 Bonds: $ 1,924,652 Drainage Improvements - North Bay Road & 56th Street Project Description- This project is to be performed in coordination with the LaGorce ROW project discussed below. Cost Allocated to Series 201 1 Bonds: $ 187,292 Sunset Harbor Pump Station Upgrades Project Description- The location is serviced by existing gravity lines that convey stormwater to two pressurized recharge wells with bypass structures to existing outfalls. Two gravity recharge wells are also operational. The two pressurized (pumped) recharge wells are located at the northern and southern ends of Maurice Gibb Memorial Park. The northern Gibb Park outfall has a tide-flex valve installed for back flow prevention. The two gravity recharge wells are located west of the intersection of 20th Street and West Avenue. While the project is under preliminary design, recommendations from the consultant include additional capacity at the pressurized recharge wells, and replacement of the gravity recharge wells with a pressurized recharge well system along 20th Street. Cost Allocated to Series 201 1 Bonds: $520,000 PMB 423657.3 LaGorce ROW Project Description- The 1997 Stormwater Master Plan identified capital improvements for LaGorce ROW. The CIP for LaGorce ROW is in the permitting process. The permitted design was based off the 1997 Stormwater Master Plan Recommendations calling for approximately 681 linear feet of pipe and 2 1 recharge wells. Cost Allocated to Series 201 1 Bonds: $5,877,488 Drainage Hot Spots (4400 Middle N. Bay Road) Project Description- The 201 1 SWMP presented a map of stormwater flood prone areas including information on areas where numerous service work orders have been issued. This project includes the construction, replacement and repair of existing stormwater lines near the 4400 block of North Bay Road. Cost Allocated to Series 201 1 Bonds: $ 1,300,000 48" Outfall at Easement 4180-4200 Chase Project Description- The CIP project includes of the construction of approximately eight recharge wells in combination with the expansion of the existing 36-inch diameter outfall to 48-inches to meet LOS. The project is currently being permitted. Cost Allocated to Series 20 1 1 Bonds: $ 198,962 Sunset Islands 3 & 4 ROW BP-8D Project Description- The 201 1 SWMP identified capital improvements for Sunset Islands 3 & 4. The CIP for Sunset Islands 3 & 4 is under design. No improvements were identified in the 1997 Stormwater Master Plan. The full extent of capital improvements required is as follows: Approximately 19 recharge wells; approximately four first flush inlets and 13 curb inlets with improvements to the curb and gutter and sidewalk systems; approximately 600 linear feet of 3- x 5-feet box culvert, and outfall upgrades of 15- to 18-inch diameter pipe. Cost Allocated to Series 201 1 Bonds: $2,736,983 Palm & Hibiscus Islands Project Description- The 1997 Stormwater Master Plan identified capital improvements for Palm and Hibiscus Islands. The CIP for Palm and Hibiscus Islands is in the preliminary design process. The basis of design was based off the 1997 Stormwater Master Plan Recommendations calling for approximately 8,027 linear feet of pipe and 52 recharge wells. Cost Allocated to Series 201 1 Bonds: $5,853,398 Flamingo BPI OM Flamingo BPI OCYBay Road Pump Station OutfallWest Avenue (Combined Regional South Beach Solution) Project Description- The 201 1 SWMP identified capital improvements for these project areas as one combined regional solution. The CIP is under conceptual design. The full extent of capital improvements required is as follows: PMB 423657.3 A combination of 15 first flush inlets curb inlets with improvements to the curb and gutter and sidewalk systems; treatment devices, 46 recharge wells, exfiltration storage, 21,200 linear feet of upsized gravity pipes; 13 pump stations (20 to 50 cfs in capacity) and a minimum of 15.5 acre-feet of storage facilities Cost Allocated to Series 201 1 Bonds: $2,103,464 The total cost of the Stormwater Utility projects included within the Capital Improvement Program through FY 2014 is $101,600,000. Of that amount, approximately $50,200,000 is expected to be funded from proceeds of the Series 201 1 Bonds, along with $ of other available funds of the City, as shown in the following table: PMB 423657.3 CITY OF MIAMI BEACH, FLORIDA STORMWATER UTILITY CAPITAL IMPROVEMENT PROGRAM AND FUNDING FY 2010 - 2014 FY 2010 - FY 2014 Improvement FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Total $ $ $ $ $ $ Total Improvements $ Source of Funding Series 201 1 Bond Proceeds and Investment Earnings Cash Resewes/Current Revenues Total Funding $ $ $ $ $ $ Source: City of Miami Beach, Florida PMB 423657.3 The planned improvements are expected to be hnded through a combination of bond proceeds and current revenues and reserves. Proceeds from the Series 201 1 Bonds, anticipated investment earnings and a planned equity contribution by the City are expected to fund $ of the planned improvements to the system that are scheduled for design and/or construction in FY 201 1 through FY 2014. Included in the Capital Improvement Program is an allowance of $ annually for currently unidentified City-wide stormwater system improvements. Governmental Reprulation The Stormwater Utility is subject to federal, state and local regulation. Federal. US. Environmental Protection Agency ("EPA '7). The EPA was mandated by the U.S. Congress through Section 405 of the Water Quality Act of 1987 to promulgate an NPDES permitting program for municipal stormwater discharges. As it has done with many states, the EPA has delegated the NPDES permitting authority to FDEP. Federal Emergency Management Agency ("FEMA '7. FEMAYs mission is to support citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards. The Robert T. Stafford Disaster Relief and Emergency Assistance Act, PL 100- 707, signed into law November 23, 1988; amended the Disaster Relief Act of 1974, PL 93-288. This act constitutes the statutory authority for most federal disaster response activities. FEMA regulates riverine (stormwater) and coastal (tidal) floodplains and floodways under the National Flood Insurance Program (NFIP). Camp Dresser & McKee Inc. used tools developed by FEMA to identify and quantify flood risks, including FISs, FIRMS, and the HAZUS tool coupled with the models of the City's [PSMS] to estimate structural and economic damage costs from the 2- through 100-year design storm events. The coordination with FEMA allows for the Citywide Stormwater Master Plan to support flood map revisions and communicate economic impacts in a manner recognized by the Federal government for cost-benefit comparisons. United States Army Corps of Engineers ("USACE'Y. The USACE is the primary federal agency that develops guidance parameters for civil infrastructure design consideration for projects impacting environmentally sensitive water and OFW, like Biscayne Bay. A nationwide permit from the USACE is required when up to one-half acre of waters of the United States (e.g. Biscayne Bay or its tributary canals) are impacted, provided that original grades are restored to the site after completion of construction. Under the USACE's nationwide permit program a pre-construction notification submittal is required, which typically takes 60 to 90 days to process. The Regional Conditions and General Condition for the nationwide permit require that the pre-construction notification include the following information: A map of the entire corridor including a delineation of all wetlands and waters of the United States within the corridor. PMB 423657.3 An alternative analysis which addresses the selection of an alignment which avoids and minimizes wetland impacts to the maximum extent practicable. For all submerged utility lines across navigable waters of the United States, a location map and cross-sectional view showing the utility line crossing from bank to bank is required. In addition, the location and depth of the Federal Project Channel shall be shown in relation to the proposed utility line. In general, all utility lines shall be buried at least 6 feet below the authorized bottom depth of the Federal project channel and at least 3 feet below the bottom depth in all subaqueous areas. A delineation of affected special aquatic sites, including wetlands, vegetated shallows (e.g., submerged aquatic vegetation, seagrass beds). This work must be conducted between April 1 through September 30 due to the growth season of aquatic vegetation. In general, permitting coordination with USACE is required when modifications to stormwater outfalls or seawalls result in impacts to OFW, as previously discussed. More localized impacts are permitted at the State and local level. m. Florida Department of Environmental Protection ("FDEP'Y. FDEP regulates environmental programs in the State of Florida and has been delegated for NPDES MS4 permit authority; therefore, it is responsible for implementing the stormwater element of the federal NPDES as part of the Public Works Department's Wastewater Facility and Activities Permitting program. The stormwater element of the NPDES program is mandated by the Clean Water Act (CWA) Section 402(p). Authorized by Section 403.0885, Florida Statutes (F.S.), the Public Works Department's federally approved NPDES stormwater program is set out in various provisions within Chapters 62-4, 62-620, 62-621 and 62-624 of the Florida Administrative Code (F.A.C.). Chapter 62-624, F.A.C. specifically addresses MS4s permit requirements. The City is one of the 33 entities authorized for stormwater discharge under the comprehensive Miami-Dade County NPDES MS4 permit (Permit Number FLS000003-003). The City is authorized to discharge to waters of the state per the approved Stormwater Management Programs ("SWMPs"), effluent limitations, monitoring requirements, and other provisions as set forth in this permit. The City has actively been fulfilling the requirements of the permit related to their existing outfalls. These efforts are documented in annual reports submitted by the City to the FDEP. FDEP also regulates underground injection control permits for wells (gravity recharge wells and pumped injection wells). The current NPDES permit expires in -. South Florida Water Management District ("SFWMD '7). The SFWMD has responsibilities for stormwater management under F.A.C. Chapters 40E-4, 40E-40 and 40E-400 through issuance of an Environmental Resource Permit (ERP). SFWMD also regulates the surface water under F.A.C. Chapters 40E-40 and 40E-41. In addition, its responsibilities include regulation of dredge and fill activities. Since SFWMD has jurisdiction, their criteria and standards will be used as guidelines for conceptual planning of both water quality and quantity improvements. These guidelines are provided in the South Florida Water Management District ERP Information Manual Volume IV (20 10). PMB 423657.3 Local. For any stormwater project the City undertakes, there may be as many as 4 permits required. The permitting process begins with Miami-Dade County Department of Environmental Resources Management ("DERM). Any modifications to the existing system (with some exception) require an Environmental Resource Permit ("ERP") to be issued from DERM. Additionally, if the stormwater improvements are connected to a positive outfall (a pipe that discharges water into a navigable surface water body) DERM must also issue a Class I1 permit. The Class I1 Permit is issued from the same permit application package and requires a higher level of review on water quality issues and a permit fee based on a percentage of construction cost. If the proposed improvements contain drainage wells as a method for stormwater disposal or treatment, the plans and calculations must also be submitted to the FDEP in West Palm Beach. The plans are reviewed by the Underground Injection Control ("UIC") Division to evaluate the project's impact on groundwater quality. Finally, if the plans are approved, the drilling contractor must apply for a Well Construction Permit from the South Florida Water Management District. Rates, Fees and Char~es The Stormwater Utility's current rate is $9.06 per month per Equivalent Residential Unit ("ERU"). The ERU is the estimated average horizontal impervious area of residential developed property per dwelling unit. This estimated average is calculated by dividing the total estimated impervious area of -, four residential categories (single family, mobile home, multi-family and condominium) by the estimated total number of dwelling units. For the City, one ERU is equal to 791 square feet. For the purpose of the Stormwater Utility, the minimum number of ERUs per dwelling unit is one. The City had maintained a steady Equivalent Residential Unit (ERU) rate from 2003 to 2008 of $5.80 per month. In recent years the City has been facing significant increases in expenditures for construction of projects, as well as operation and maintenance of the current infrastructure. As a result, in 2008, the Consulting Engineers provided recommendations to support proper funding and debt service to expand, operate and maintain the system, through a series of utility rate adjustments, which resulted in the current ERU rate of $9.06 per month. The fee is structured as a flat rate for all residential customers. bill in^ and Collection A stormwater utility fee is assessed against each property in the City based on existing City utility accounts, application for service, and Miami-Dade County Tax Assessor property information or other ownership records. Each account is assigned a number of ERUs that are used to determine the Stormwater Utility fee. To receive water, sewer, and stormwater services from the City, property owners fill out an Application for Water Service at the City's Finance Department and pay a deposit according to an established schedule. The Finance Department is responsible for preparing and issuing one itemized bill for water, sewer, stormwater, and garbage disposal (except for commercial accounts) services provided by the City. Those services are billed on a monthly basis. Stormwater Utility fees for properties within the City that meet one of the following criteria may be reduced by 50 percent: 1. The property is subject to a valid NPDES permit. 2. The property is served by a private disposal system meeting State, County, and City criteria. PMB 423657.3 3. A portion of the property is served by a private disposal system meeting State, County, and City criteria. The fee reduction only applies to that portion of the property. The fees collected by the City with respect to the Stormwater Utility, including investment earnings are deposited in the Stormwater Utility Fund and used for planning, constructing, financing, and operating and maintaining the Stormwater Utility and the infrastructure of the stormwater management system. The Enterprise Fund tracks the operations, capital expenditures, and revenues of the Stormwater Utility. The City has streamlined and improved the system that was in place to capture ERU changes in the review and approval of construction plans. The resulting method enhances communication and coordination of the several departments included in the process such as Public Works, OBPI and Finance. DEBT SERVICE SCHEDULE The table below shows the debt service payable on the Series 201 1 Bonds. Year Ended September 30 Principal Interest Total 201 1 $ 2012 2013 2014 2015 2016 2017 2018 2019 2020 202 1 2022 2023 2024 2025 2026 2027 2028 2029 2030 203 1 2032 2033 2034 2035 2036 2037 203 8 2039 2040 TOTAL $ PMB 423657.3 HISTORICAL AND FORECASTED SCHEDULE OF NET REVENUE, DEBT SERVICE AND DEBT COVERAGE The information in the following table sets forth the forecasted revenues, expenditures and debt service coverage of the Stormwater Utility. The following tables must be read in conjunction with the report prepared by the Consulting Engineers, attached hereto as Appendix B. HISTORICAL FINANCLAL RESULTS Unaudited FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Operating Revenues Charges for Services Permits, rentals and other Total Operating Revenues $9,583,080 $10,248,168 $8,493,071 $10,129,595 $1 1,444,244 $1 1,365,630.13 Operating Expenses Personal Services Operating Supplies Contractual Services Utilities Internal Charges Depreciation Administrative Fees Amortization Other Operating Expenses Total Operating Expenses Operating Income (loss) $7,615,456 $7,790,219 $5,303,540 $7,254,480 $8,727,555 $7,723,200.21 NonOperating Revenue (Expenses) Interest and Fiscal Charges Disposal of Assets Interest Income $145,923 Total NonOperating Revenue (Expense) $145,923 Income (loss) Before Operating Transfers operating Transfers In (out) $10,970 Net Income (loss) $2,763,035 Residual Equity TransferIDepreciation on Contributed Capital $ Retained Earnings, End of Year $ Source: City of Miami Beach Comprehensive Annual Financial Reports (CAFR) for FY 2006 thm FY 2010, and Statement of Revenues, Expenses, and Changes in Storm Water Fund, Unaudited for the 12 month period ended 6/30/2011. PMB 423657.3 Revenues Operating NonOperating Total Revenues Operating Expense Less: Depreciation Less: Administration Fee Adjusted Operating Expenses Net Revenues ACTUAL AND PROJECTED OPERATING RESULTS Actual Unaudited Budgeted FY 2010 FY 2011 FY 2012 FY 20013 FY 2014 FY 2015 FY 2016 FY 2017 Annual Revenue Bond Debt Service (a) Revenue Bond Debt Coverage (b) Funds Available for Subordinated DebdAdmin FeeITransfers Annual Subordinated Debt Service Administration Fee Transfers Out Funds Available After Subordinated Debt, Admin Fee, & Transfers Out a) [FY- revenue bond debt service and portion of FY - revenue bond debt service are paid from bond proceeds. Figures shown are net of bond proceeds used for debt repayment.] b) Revenue Bond Debt Coverage Requirement: 1.10 PMB 423657.3 LITIGATION In the opinion of the City Attorney, there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency, public board or body pending or, to the best of the knowledge of the City Attorney, threatened against the City affecting, contesting, questioning or seeking to restrain or enjoin any of the following: (i) the powers or the valid existence of the City or the titles of its officers to their respective offices, or (ii) any of the proceedings had or actions taken in connection with the sale, issuance and delivery of the Series 201 1 Bonds; or (iii) the delivery, validity or enforceability of the Series 201 1 Bonds or contesting the power of the City to execute and deliver the Series 201 1 Bonds or to consummate the transactions contemplated therein or in this Official Statement, or (iv) contesting in any way the completeness or accuracy of this Official Statement, or (v) wherein an unfavorable decision, ruling or finding would materially and adversely affect the validity or enforceability of the Series 201 1 Bonds or the Bond Resolution; or (vi) which would have a material adverse effect upon the financial condition or the operations of the Stormwater Utility or the City. TAX MATTERS In the opinion of Squire, Sanders & Dempsey (US) LLP, Bond Counsel, under existing law: (i) interest on the Series 201 1 Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; and (ii) the Series 201 1 Bonds and the income thereon are exempt from taxation under the laws of the State of Florida, except estate taxes imposed by Chapter 198, Florida Statutes, as amended, and net income and franchise taxes imposed by Chapter 220, Florida Statutes, as amended. Bond Counsel expresses no opinion as to any other tax consequences regarding the Series 201 1 Bonds. The opinion on tax matters will be based on and will assume the accuracy of certain representations and certifications, and continuing compliance with certain covenants, of the City contained in the transcript of proceedings and that are intended to evidence and assure the foregoing, including that the Series 201 1 Bonds are and will remain obligations the interest on which is excluded from gross income for federal income tax purposes. Bond Counsel will not independently verify the accuracy of the City's representations and certifications or the continuing compliance with the City's covenants. The opinion of Bond Counsel is based on current legal authority and covers certain matters not directly addressed by such authority. It represents Bond Counsel's legal judgment as to exclusion of interest on the Series 201 1 Bonds from gross income for federal income tax purposes but is not a guaranty of that conclusion. The opinion is not binding on the Internal Revenue Service ("IRS") or any court. Bond Counsel expresses no opinion about (i) the effect of future changes in the Code and the applicable regulations under the Code or (ii) the interpretation and the enforcement of the Code or those regulations by the IRS. The Code prescribes a number of qualifications and conditions for the interest on state and local government obligations to be and to remain excluded from gross income for federal income tax purposes, some of which require future or continued compliance after issuance of the obligations. Noncompliance with these requirements by the City may cause loss of such status and result in the interest on the Series 201 1 Bonds being included in gross income for federal income tax purposes retroactively to the date of issuance of the Series 201 1 Bonds. The City has covenanted to take the actions required of it for the interest on the Series 201 1 Bonds to be and to remain excluded from gross income for federal income tax purposes, and not to take any actions that would adversely affect that exclusion. After the date of issuance of the Series 201 1 Bonds, Bond Counsel will not undertake to determine (or to so inform any PMB 423657.3 person) whether any actions taken or not taken, or any events occurring or not occurring, or any other matters coming to Bond Counsel's attention, may adversely affect the exclusion from gross income for federal income tax purposes of interest on the Series 201 1 Bonds or the market value of the Series 201 1 Bonds. A portion of the interest on the Series 201 1 Bonds earned by certain corporations may be subject to a federal corporate alternative minimum tax. In addition, interest on the Series 201 1 Bonds may be subject to a federal branch profits tax imposed on certain foreign corporations doing business in the United States and to a federal tax imposed on excess net passive income of certain S corporations. Under the Code, the exclusion of interest from gross income for federal income tax purposes may have certain adverse federal income tax consequences on items of income, deduction or credit for certain taxpayers, including financial institutions, certain insurance companies, recipients of Social Security and Railroad Retirement benefits, those that are deemed to incur or continue indebtedness to acquire or carry tax- exempt obligations, and individuals otherwise eligible for the earned income tax credit. The applicability and extent of these and other tax consequences will depend upon the particular tax status or other tax items of the owner of the Series 201 1 Bonds. Bond Counsel will express no opinion regarding those consequences. Payments of interest on tax-exempt obligations, including the Series 201 1 Bonds, are generally subject to IRS Form 1099-INT information reporting requirements. If a Series 201 1 Bond owner is subject to backup withholding under those requirements, then payments of interest will also be subject to backup withholding. Those requirements do not affect the exclusion of such interest from gross income for federal income tax purposes. Legislation affecting tax-exempt obligations is regularly considered by the United States Congress and may also be considered by the State legislature. Court proceedings may also be filed the outcome of which could modify the tax treatment of obligations such as the Bonds. There can be no assurance that legislation enacted or proposed, or actions by a court, after the date of issuance of the Bonds will not have an adverse effect on the tax status of interest on the Series 201 1 Bonds or the market value of the Series 20 1 1 Bonds. These adverse effects could result, for example, from changes to federal or state income tax rates, changes in the structure of federal or state income taxes (including replacement with another type of tax), or repeal (or reduction in the benefit) of the exclusion of interest on the Series 20 1 1 Bonds from gross income for federal or state income tax purposes for all or certain taxpayers. For example, on September 12, 201 1, President Obama's administration announced a legislative proposal it called the American Jobs Act that could, among other things, result in additional federal income tax for tax years beginning after 2012 on taxpayers that own tax-exempt bonds, including the Series 201 1 Bonds, if they have incomes above certain thresholds. Prospective purchasers of the Series 201 1 Bonds should consult their own tax advisers regarding pending or proposed federal and state tax legislation and court proceedings, and prospective purchasers of the Series 201 1 Bonds at other than their original issuance at the respective prices indicated on the inside cover of this Official Statement should also consult their own tax advisers regarding other tax considerations such as the consequences of market discount, as to all of which Bond Counsel expresses no opinion. Bond Counsel's engagement with respect to the Series 201 1 Bonds ends with the issuance of the Series 201 1 Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the City or the owners of the Series 201 1 Bonds regarding the tax status of interest thereon in the event of an audit examination by the IRS. The IRS has a program to audit tax-exempt obligations to determine whether the interest thereon is includible in gross income for federal income tax purposes. If the IRS does audit the PMB 423657.3 Series 2011 Bonds, under current IRS procedures, the IRS will treat the City as the taxpayer and the beneficial owners of the Series 201 1 Bonds will have only limited rights, if any, to obtain and participate in judicial review of such audit. Any action of the IRS, including but not limited to selection of the Series 201 1 Bonds for audit, or the course or result of such audit, or an audit of other obligations presenting similar tax issues, may affect the market value of the Series 201 1 Bonds. Original Issue Discount and Premium Certain of the Series 201 1 Bonds ("Discount Series 201 1 Bonds") as indicated on the cover of this Official Statement were offered and sold to the public at an original issue discount ("OW). OD is the excess of the stated redemption price at maturity (the principal amount) over the "issue price" of a Discount Series 20 1 1 Bond. The issue price of a Discount Series 201 1 Bond is the initial offering price to the public (other than to bond houses, brokers or similar persons acting in the capacity of underwriters or wholesalers) at which a substantial amount of the Discount Series 201 1 Bonds of the same maturity is sold pursuant to that offering. For federal income tax purposes, OID accrues to the owner of a Discount Series 2011 Bond over the period to maturity based on the constant yield method, compounded semiannually (or over a shorter permitted compounding interval selected by the owner). The portion of OD that accrues during the period of ownership of a Discount Series 201 1 Bond (i) is interest excluded from the owner's gross income for federal income tax purposes to the same extent, and subject to the same considerations discussed above, as other interest on the Bonds, and (ii) is added to the owner's tax basis for purposes of determining gain or loss on the maturity, redemption, prior sale or other disposition of that Discount Series 201 1 Bond. A purchaser of a Discount Series 201 1 Bond in the initial public offering at the price for that Discount Series 201 1 Bond stated on the cover of this Official Statement who holds that Discount Series 201 1 Bond to maturity will realize no gain or loss upon the retirement of that Discount Series 201 1 Bond. Certain of the Series 201 1 Bonds ("Premium Series 201 1 Bonds") as indicated on the cover of this Official Statement were offered and sold to the public at a price in excess of their stated redemption price (the principal amount) at maturity. That excess constitutes bond premium. For federal income tax purposes, bond premium is amortized over the period to maturity of a Premium Series 201 1 Bond, based on the yield to maturity of that Premium Series 201 1 Bond (or, in the case of a Premium Series 201 1 Bond callable prior to its stated maturity, the amortization period and yield may be required to be determined on the basis of an earlier call date that results in the lowest yield on that Premium Series 201 1 Bond), compounded semiannually. No portion of that bond premium is deductible by the owner of a Premium Series 20 1 1 Bond. For purposes of determining the owner's gain or loss on the sale, redemption (including redemption at maturity) or other disposition of a Premium Series 201 1 Bond, the owner's tax basis in the Premium Series 201 1 Bond is reduced by the amount of bond premium that is amortized during the period of ownership. As a result, an owner may realize taxable gain for federal income tax purposes from the sale or other disposition of a Premium Series 201 1 Bond for an amount equal to or less than the amount paid by the owner for that Premium Series 201 1 Bond. A purchaser of a Premium Series 201 1 Bond in the initial public offering at the price for that Premium Series 201 1 Bond stated on the cover of this Official Statement who holds that Premium Series 201 1 Bond to maturity (or, in the case of a callable Premium Series 201 1 Bond, to its earlier call date that results in the lowest yield on that Premium Series 201 1 Bond) will realize no gain or loss upon the retirement of that Premium Series 201 1 Bond. Owners of Discount Series 2011 Bonds and Premium Series 2011 Bonds should consult their own tax advisers as to the determination for federal income tax purposes of the amount of OID or bond premium properly accruable or amortizable in any period with respect to the Discount Series 2011 Bonds or Premium Series 2011 Bonds and as to other federal tax consequences and the treatment of OID and bond premium for purposes of state and local taxes on, or based on, income. PMB 423657.3 EXPERTS The references herein to the Report of Camp Dresser & McKee Inc., as the Consulting Engineers have been approved by said firm, but do not purport to be complete in all respects, and the Report of the Consulting Engineers, included as Appendix B to this Official Statement, should be read in its entirety for complete information with respect to the subjects discussed therein. The Report of the Consulting Engineers has been included in this Official Statement in reliance upon and with the authorization of said firm as expert in such fields. UNDERWRITING The Series 2011 Bonds are being purchased by the Underwriters, subject to certain terms and conditions set forth in the purchase contract between the City and the Underwriters, including the approval of certain legal matters by Bond Counsel and the existence of no material adverse change in the condition of the City or the Stormwater Utility from that set forth in the Official Statement. The Series 201 1A Bonds are being purchased at a purchase price of $ (representing $ in aggregate principal amount of $ less underwriters' discount of $ and [less/plus] net [original issue discount/premium] of $ ) plus accrued interest from , 20-. The Series 201 1B Bonds are being purchased at a purchase price of $ (representing $ in aggregate principal amount of $ less underwriters' discount of $ and [less/plus] net [original issue discount/premium] of $ ) plus accrued interest from , 20-. The Series 201 1 Bonds are offered for sale to the public at the prices or yields set forth on the inside cover page of this Official Statement. The Series 201 1 Bonds may be offered and sold to certain dealers at prices lower than such offering prices, and such public offering prices may be changed from time to time by the Underwriters. FINANCIAL STATEMENTS The financial statements of the City for the year ended September 30, 2010 included as Appendix C to this Official Statement have been audited by McGladrey & Pullen, LLP, independent auditors, whose report made reference to the audit of other auditors, as stated in their report appearing in Appendix C. VERIFICATION OF MATHEMATICAL COMPUTATIONS The arithmetical accuracy of certain computations included in the schedules provided by the Financial Advisor on behalf of the City relating to the computation of forecasted receipts of principal and interest on the Escrow Securities and the forecasted payments of principal, redemption premium and interest to pay or redeem, as applicable, the Bonds to be Refunded and supporting the conclusion of Bond Counsel that the Series 201 1 Bonds do not constitute "arbitrage bonds" under Section 148 of the Internal Revenue Code of 1986, as amended, was examined by . Such computations were based solely upon assumptions and information supplied by the Financial Advisor on behalf of the City. has restricted its procedures to examining the arithmetical accuracy of certain computations and has not made any study or evaluation of the assumptions and information upon which the computations are based and, accordingly, has not expressed an opinion on the data used, the reasonableness of the assumptions, or the achievability of the forecasted outcome. PMB 423657.3 FINANCIAL ADVISOR RBC Capital Markets, Inc., Miami, Florida, has acted in the capacity of Financial Advisor to the City with respect to the issuance of the Series 201 1 Bonds. RATINGS Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc. ("S&P"), Moody's Investors Service, Inc. ("Moody's") and Fitch, Inc. ("Fitch") are expected to assign their ratings of ccy~ with a " outlook," "- " with a " outlook" and "" with a " outlook", respectively, to the Series 201 1 Bonds [based on the issuance of the Bond Insurance Policy concurrently with the issuance of the Series 201 1 Bonds. Such ratings reflect only the views of such rating agencies and an explanation of the significance of such ratings may be obtained from such rating agencies.] S&P, Moody's and Fitch have assigned underlying ratings on the Series 201 1 Bonds of "" with a " outlook," "" with a " outlook" and "" with a " outlook," respectively, to the Series 201 1 Bonds, without taking into account the issuance of the Bond Insurance Policy by the Bond Insurer. There is no assurance that such ratings given to the Series 201 1 Bonds will be maintained for any period of time or that the ratings may not be lowered or withdrawn entirely by such rating agencies if, in their judgment, circumstances so warrant. Any such downward change or withdrawal of such ratings may have an adverse effect on the market price of the Series 20 1 1 Bonds. LEGAL MATTERS Certain legal matters incident to the authorization and issuance of the Series 201 1 Bonds are subject to the approval of Squire, Sanders & Dempsey (US) LLP, Miami, Florida, Bond Counsel, whose approving opinion will be available at the time of delivery of the Series 201 1 Bonds. The proposed form of such opinion is attached hereto as Appendix G. Certain legal matters will be passed upon for the City by Jose Smith, City Attorney. Certain legal matters will be passed upon for the Underwriters by Edwards Angel1 Palmer & Dodge LLP, West Palm Beach, Florida, Counsel to the Underwriters. CONTINUING DISCLOSURE The City will covenant for the benefit of the holders of the Series 201 1 Bonds to provide certain financial information and operating data relating to the City and the Series 201 1 Bonds in each year, and to provide notices of the occurrence of certain enumerated material events. The City has agreed to provide or cause to be provided for the benefit of the Beneficial Owners of the Series 201 1 Bonds to the Municipal Securities Rulemaking Board ("MSRB") in an electronic format and accompanied by identifying information as prescribed by the MSRB, from time to time, the information set forth in the Bond Resolution, commencing with the Fiscal Year ending September 30,201 1. The specific nature of the financial information, operating data, and of the type of events which trigger a disclosure obligation, and other details of the undertaking are described in "APPENDIX E - Form of Continuing Disclosure Agreement" attached hereto. The Continuing Disclosure Agreement shall be executed by the City prior to the issuance of the Series 201 1 Bonds. These covenants have been made in order to assist the Underwriters in complying with the continuing disclosure requirements of Rule 15~2-12 promulgated by the Securities and Exchange Commission (the "Rule"). With respect to the Series 201 1 Bonds, no party other than the City is obligated to provide, nor is expected to provide, any continuing disclosure information with respect to the Rule. The City has never failed to comply with any prior agreements to provide continuing disclosure information pursuant to the Rule. PMB 423657.3 The City is not and has not been in default under its prior undertakings. DISCLOSURE PURSUANT TO SECTION 517.051, FLORIDA STATUTES Rule 3E-400.003, Rules of Government Securities, promulgated by the Florida Department of Banking and Finance, Division of Securities, under Section 517.051(1), Florida Statutes ("Rule 3E- 400.003"), requires the City to disclose each and every default as to the payment of principal and interest with respect to obligations issued by the City after December 31, 1975. Rule 3E-400.003 further provides, however, that if the City in good faith believes that such disclosures would not be considered material by a reasonable investor, such disclosures may be omitted. The Series 201 1 Bonds do not constitute a general debt, liability or obligation of the City, but instead are secured by a pledge of the Net Revenues and other security described herein. Accordingly, the City, in good faith, believes that the disclosure of any default on bonds with respect to which the City was merely a conduit issuer and which are secured by payments of the borrower under a loan agreement, lease agreement or other installment sale agreement, will not be considered material by a reasonable investor. Although the City is not aware of the existence of any payment defaults on obligations for which it is a conduit issuer, the City is not obligated to pay debt service on such defaulted obligations except from payments made from borrowers under their respective agreements. MISCELLANEOUS All of the summaries or portions of the Bond Resolution and the Stormwater Utility's operating records are made subject to all of the detailed provisions of such documents, to which reference is hereby made for further information. The foregoing summaries do not purport to be complete statements of any of the provisions of such documents. CERTIFICATE CONCERNING THE OFFICIAL STATEMENT Concurrently with the delivery of the Series 201 1 Bonds, the City will furnish a certificate of its Mayor and City Manager to the effect that, to the best of their knowledge, this Official Statement as of its date and as of the date of the delivery of the Series 201 1 Bonds, does not contain an untrue statement of a material fact and does not omit any material fact which should be included therein for the purpose for which the Official Statement is to be used, or which is necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading. PMB 423657.3 This Official Statement has been duly executed and delivered by the Mayor, the City Manager and the City Clerk of City of Miami Beach, Florida. CITY OF MIAMI BEACH, FLORIDA By:/s/ Matti Herrerra Bower Mayor By:/s/ Jorae M. Gonzalez City Manager Attest: IS/ Robert E. Parcher City Clerk PMB 423657.3 APPENDIX A GENERAL INFORMATION REGARDING THE CITY OF MIAMI BEACH AND MIAMI-DADE COUNTY, FLORIDA The following information pertaining to the City of Miami Beach, Florida (the "City") and Miami-Dade County, Florida (the "County") is set forth for purposes of background only. The Series 201 1 Bonds are payable only from the Pledged Revenues of the Stormwater Utility of the City, as described in this Official Statement. The Series 2011 Bonds do not constitute a debt, liability or obligation or a pledge of the faith, credit or taxing power of the City, County, the State of Florida, or any political subdivision thereof. INTRODUCTION The City comprises seven square miles of land area and ten square miles of Biscayne Bay. The climate is tropical with an average annual temperature of 75 degrees Fahrenheit, 24 degrees Celsius. The City is the home of the Art Deco Historic District, consisting of one of the greatest concentrations of this style of architecture in the United States. Within this Historic District is the world famous Ocean Drive, which has been called the "Riviera" of Florida. The economy of the area is based on tourism. For fiscal year 2010, room rents, food and beverage sales accounted for an estimated $1.8 billion in sales within the City. The population demographics of the City have drastically changed over the last thirty years. In the 1980 Census, the average age of the population was 65.3 years old. In the 2000 Census the average age had declined to 43.7 years old and the [2007] estimates place it at [40] years old. The City is a group of islands between Biscayne Bay and the Atlantic Ocean and is connected to the mainland by four causeways. The County is the largest county in the southeastern United States in terms of population and one of the largest in terms of land area. The County consists of 2,042 square miles of land area. The population is clustered mainly along the coast, with the western area of the County comprising a part of the Everglades. There are numerous incorporated municipalities in the County, which include Miami, Hialeah and Coral Gables, as well as the City. POPULATION The U.S. Bureau of the Census estimated the population of the City to be 87,779 in 2010. According to estimates of Miami-Dade County Department of Planning and Zoning, the City's population is expected to be [98,028] by the year [2010] and the County's population is estimated to be 2,563,885 for 2010, and the County estimates growth to 2,885,439 by 2020. PMB 423657.3 Population, City of Miami Beach and Miami-Dade County 1980 - 2009 City of Miami Miami-Dade Year Beach Percent Change County Percent Change 1980 96,298 10.6% 1,625,598 28.2% 2009"' 88,065 0.1 % 2,500,625 10.6% Source: U.S. Census (1) U.S. Census estimates as of July 1,2009 Population Breakdown City of Miami Beach, 1990-2007 Age Group 1990 2000 2007 Under 18 14.2% 13.4% 14.0% 18 and over 85.8% 86.6% 86.0% 2 1 and over 83.1% 84.1 % 84.2% 65 and over 23.4% 19.2% 17.9% Median Age: 44.5 39 40 Source: City of Miami Beach Statistical Abstract 2009 GOVERNMENT The City of Miami Beach is organized under the Commission-City Manager form of government. The governing body is an elected City Commission of six members and an elected Mayor. The City Commission sets policy for the administration of the City and appoints a City Manager and a City Attorney. The City Attorney appoints his staff and the City Manager is responsible for the appointment of the balance of the employees of the City. The City Commissioners are elected to staggered four year terms and the Mayor is elected every two years. Both the City Attorney and the City Manager serve at the pleasure of the City Commission. The City Manager carries out the policies of the City Commission, directs the operations of the City and, with the exception of the City Attorney's Office, has the power to appoint or remove all heads of the various Departments. SCOPE OF SERVICES The City provides a full range of municipal services, including police and fire protection, recreational activities, parks, cultural events, sanitation services, water, sewer and storm water services, community services, and the construction of and maintenance of streets and infrastructure. PMB 423657.3 ECONOMIC AND DEMOGRAPHIC DATA INCOME The mean family income for Miami Beach increased by 28 percent; from $69,980 in 2000 to $89,641 in 2007. This compares to growth rates experienced by Miami-Dade County, which experienced a mean family growth rate of approximately 34 percent during the same period. The mean family income for Miami Beach exceeded that of Miami-Dade County by approximately 33 percent in 2000 and 26 percent in 2007. MEAN FAMILY INCOMES 2000-2007'" 2000 2007 % CHANGE Miami Beach $69,980 $89,641 28.1% Miami-Dade County 52,753 70,948 34.4% Source: U.S. Bureau of Census; City of Miami Beach, Florida Statistical Abstract 2009 Per Capita Personal Income (Current Dollars) 2004-2008 Miami-Dade County (') Florida (') United States (') Current Year Dollars % of U.S. Current Dollars % of U.S. Current Dollars 2004 $29,8 17 88.0% $33,540 98.9% $33,881 2005 32,025 90.4% 34,798 100.5% 34,757 2006 33.712 89.9% 38,161 100.2% 36,714 2007 35,368 93.8% 39,036 99.0% 39,392 2008 35,887 89.3% 39,064 91.2% 40,166 Source: (')~iami Dade County Planning & Zoning Department; U.S. FL Legislature Office of Economic & Demographic Research (2) U.S. Department of Commerce-Bureau of Economic Analysis EMPLOYMENT City of Miami Beach Employment 2005 - 2010 Labor Force Employed 44,767 45,263 45,63 1 45,658 44,497 45,249 Labor Force Unemployed 1,796 1,631 1,780 2,383 4,046 4,181 Total Labor Force 46,563 46,894 47,411 48,041 48,543 49,430 Unemployment Rate 3.9% 3.5% 3.8% 5 .O% 8.3% 8.5% Source: US Department of Labor (') Preliminary- as of April 20 10 PMB 423657.3 Major Employers on Miami Beach Rank Employer Service 1 Mount Sinai Medical Center 2 City of Miami Beach 3 Fontainebleau Resort 4 Loews Miami Beach Hotel 5 Publix Supermarkets 6 Eden Roc Hotel 7 Delano Hotel 8 Joe's Stone Crab 9 Wyndham Miami Beach Resort 10 LNR Property Corp Source: City of Miami Beach, Florida Medical Governmental Hotel Hotel Retail Hotel Hotel Restaurant Hotel Real Estate Number Employed 3300 1800 1200 942 900 700 478 355 320 320 PMB 423657.3 Ten Largest Public and Private Employers Located in Miami-Dade County Public Employers Miami-Dade County Public Schools Miami-Dade County Federal Government Florida State Government Jackson Health System Florida International University Miami-Dade College City of Miami VA Medical Center Homestead Air Force Base Private Employers University of Miami Baptist Health South Florida Publix Supermarkets American Airlines University of Miami Health United Postal Service AT&T Florida Power & Light Co. Winn-Dixie Stores Carnival Cruise Lines Source: City of Miami Beach, Comprehensive Annual Financial Report 2009 [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] PMB 423657.3 BUILDING PERMITS The following is a calculation of the total value of the Building Permits issued by the City during the past 10 years. City of Miami Beach, Florida Value of Building Permits Issued Fiscal Years 2000-2009 Fiscal Year Number of Permits Total Value 2000 9,209 200 1 9,764 2002 10,65 1 2003 11,134 2004 11,368 2005 12,837 2006 12,226 2007 12,729 2008 11,056 2009 1 0,277 Source: City of Miami Beach, Florida [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] PMB 423657.3 DIRECT AND OVERLAPPING TAX RATES The following table summarizes the direct and overlapping tax (millage) rates for the past ten years. As shown in the following table, the City has reduced its tax rates over the past 10 years. City of Miami Beach, Florida Direct and Overlapping Tax Rates ($1 per $1,000 of Assessed Value) For Tax Years 2000 Through 2009 City of Miami Beach Direct Rates Overlapping Rates Fiscal Year Debt Total School Ended Operating Service Direct District County State September 30 Millage Millage Millage Millage Millage Millage Total Source: City of Miami Beach, Comprehensive Annual Financial Report; Miami-Dade County, Florida Property Appraisal 2009 Millage Table [BALANCE OF PAGE INTENTIONALLY LEFT BLANK.] PMB 423657.3 PMB 423657.3 City of Miami Beach, Florida Property Tax Levies and Collections Fiscal Years 1999 - 2008 Collected within the Fiscal year of the Levy Tax Total Percentage Amount Year (1) Tax Levy of Levy 2007 146,4 18,406 146,076,252 99.8 2008 144,907,833 139,669,839 96.4 Source: City of Miami Beach, Comprehensive Annual Financial Report 2009 (1) Assessments as of January 1 of the year listed; bills mailed in October of that year; taxes become delinquent at the end of April of the subsequent year. (2) Breakdown between current and delinquent collections not available. Collections represent total of current and delinquent collection received during the year. [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] City of Miami Beach Ten Largest Taxpayers 2009 Owner Type of Property Assessed Value MB Redev. Inc./Loews Hotel Hotel $280,000,000 MCZ/Centrum Flamingo 111 LLC Apartments 172,183,094 Fontainebleau Florida Hotel LLC Hotel 148,189,442 Di Lido Beach Hotel Corp. Hotel 130,000,000 MCZICentrum Flamingo I1 LLC Apartments 93,000,000 Philips South Beach LLC Hotel 83,435,043 Sandy Lane Residential LLC Apartments Royal Palm Hotel Prop LLC Apartments City National Bank of Florida Apartments 2201 Collins Fee LLC Apartments Source: 2009 Miami-Dade County, Florida Ad Valorem Assessment Roll for the City of Miami Beach City of Miami Beach, Comprehensive Annual Financial Report 2009 FILM AND PRINT INDUSTRY The film and print industry has become an important part of the Miami Beach economy. Many international talent and model agencies have located in the City. In 2009, this industry spent an approximate of $26 million in Miami-Dade County for the production of movies and photographs. [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] PMB 423657.3 PMB 423657.3 Film and Print Industry Permits Issued and Production Budgets For the Calendar Years 2000-2009 Fiscal Permits Production Year Issued Budgets (') 2005 1,583 $62,708,265 Source: Miami Beach Comprehensive Financial Report 2009; City of Miami Beach, Florida Department of Tourism and Cultural Development (1) Estimates as reported on City of Miami Beach Permit Applications [BALANCE OF PAGE INTENTIONALLY LEFT BLANK.] CONVENTION AND MEETING ACTIVITY Miami-Dade County and the Miami Beach Convention Center host a large number of conventions each year. Number of Number of Room Year Delegates Nights Total Expenditures 2000 943,740 2,58 1,948 $1,034,134,428 Source: City of Miami Beach, Florida [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] PMB 423657.3 TOURISM AND VISITOR ACTIVITY DOMESTIC AND INTERNATIONAL OVERNIGHT VISITORS MIAMI-DADE COUNTY 2007-2009 2007 2008 2009 Origin (000) (000) (000) South America: 2,324.1 2,480.1 2,549.5 Caribbean: 683.4 702.1 682.1 Central America: 511.1 540.0 5 17.3 Europe: 1,294.0 1,360.6 1,279.0 Canada: 556.0 Other International: 124.3 Total International Total Domestic 6,473 .O 6,341.4 6,25 1.5 Total Overnight 1 1,965.9 12,128.6 11,935.9 Expenditures ('I: Domestic $ 7,145.90 $ 6,556.90 $ 5,954.10 International $10,759.30 $10,774.60 $1 1,156.50 Total Expenditures $17,905.20 $17,331.50 $23,064.70 Source: Greater Miami Convention and Visitors Bureau (I) Average Daily Expenditures PMB 423657.3 Overnight Visitors by Region 2007 2008 2009 Miami Beach Downtown Miami 16.6% 19.2% 17.6% N. Miami-Dadelsunny Isle Airport Area 10.5% 9.8% 1 1.4% S. Miami-Dade 6.3% 5.9% 3.9% Source: Greater Miami Convention and Visitors Bureau TRANSPORTATION Miami-Dade County has a comprehensive transportation network designed to meet the needs of residents, travelers and area businesses. The County's internal transportation system includes Metrorail, a 22.4 mile above-ground system connecting South Miami-Dade and the City of Hialeah with the Downtown and Civic Center areas. Metromover, a 4.4 mile automated loop, carries passengers around downtown Miami, Brickell Avenue and the Omni shopping center areas. Miami-Dade County's Metrobus operating over 32.6 million miles per year and over 115 million passenger trips annually. The County also provides para-transit services to qualified riders in the amount of 1.6 million passenger trips annually. Cargo rail service is available from both Miami International Airport and the Port of Miami, and Amtrak has a passenger station in the City of Miami. Tri-Rail, a 72-mile train system, links West Palm Beach, Boca Raton, Fort Lauderdale, Hollywood and Miami International Airport. Miami International Airport. Miami International Airport is one of the busiest airports in the world for both passengers and cargo traffic. It ranks twelfth in the nation and twenty-fifth in the world in passenger traffic through the airport. The airport ranks third in the nation and eleventh in the world in tonnage of domestic and international cargo movement. In 2009 over 33 million air travelers were serviced by Miami International Airport, and approximately 2.08 million tons of cargo was handled. More than 88 airlines serve Miami International Airport, flying passengers to more than 150 destinations around the globe. Port of Miami. The Port of Miami, known as the "cruise capital of the world," is operated by the Seaport Department of Miami-Dade County. In fiscal year 2009, approximately 4.1 million passengers sailed from the Port of Miami aboard one of the eight cruise companies who operate out of Miami. The Port of Miami is also a hub for Caribbean and Latin American commerce. These countries account for over half of the 7.4 million tons of cargo transferred through the Port of Miami in 2008. The Port of Miami is also reaching out to the global community where trade with Asian countries accounted for almost 23% of the total cargo handled at the Port of Miami. The Port of Miami is also important to the U.S. economy, contributing in excess of $17 billion annually, which should increase after the completion of the Port of Miami's five year, $346 million capital improvement program. PMB 423657.3 RECREATION There are numerous parks and playgrounds in the City of Miami Beach. Each park provides different amenities, from tennis and bocce courts to swimming pools and tot lots, to Vita courses and barbecue pits. There are four Vita courses, two swimming pools, and numerous tennis courts, including the Holtz Tennis Stadium which houses championship, professional and amateur tournaments. Offshore, the Gulf Stream provides a variety of game fish, while the Miami Beach Marina provides an abundance of space to house boats as well as direct access to the Atlantic Ocean and Gulf Stream. The Marina is a private development on City owned bay front land in the South Pointe area. Renovation has increased the number of boat slips to 388 making the Marina the largest in the area and a first class facility. In the north part of the City, the public can enjoy a leisurely sail in the quiet waters of Biscayne Bay from the Miami Beach Sailport. The facility, though open to all ages, was specially designed to teach young adults the basic art of sailing on small prams. The City owns two championship golf courses and one Par 3 course that are open to the public. The two championship courses, Miami Beach Golf Course and Normandy, offer a clubhouse complete with a restaurant, lounge and pro shop. PMB 423657.3 APPENDIX B REPORT OF CONSULTING ENGINEERS PMB 423657.3 APPENDIX C FINANCIAL STATEMENTS OF THE CITY PMB 423657.3 APPENDLX D THE BOND RESOLUTION PMB 423657.3 APPENDIX E FORM OF CONTINUING DISCLOSURE AGREEMENT PMB 423657.3 APPENDIX F SPECIMEN BOND INSURANCE POLICY PMB 423657.3 APPENDIX G FORM OF APPROVING OPINION OF BOND COUNSEL PMB 423657.3 On the date of issuance of the Series 2011 Bonds in definitive form, Squire, Sanders & Dempsey (US) LLP, Bond Counsel, proposes to render its opinion in substantially the following form: To: Mayor and City Commission of the City of Miami Beach, Florida Miami Beach, Florida We have served as bond counsel to our client the City of Miami Beach, Florida (the "City") and not as counsel to any other person in connection with the issuance by the City of its $ aggregate principal amount of Stormwater Revenue Bonds, Series 201 IA, and $ aggregate principal amount of Stormwater Revenue Refunding Bonds, Series 201 1B (collectively, the "Series 201 1 Bonds"), each dated the date of this letter. The Series 201 1 Bonds are issued pursuant to Resolution No. 2000-24127 adopted by the City Commission of the City (the "Commission") on October 18, 2000 and Resolution No. 201 I-- adopted by the Commission on , 201 1 (collectively, the "Bond Resolution"). Capitalized terms not otherwise defined in this letter are used as defined in the Bond Resolution. In our capacity as bond counsel, we have examined the transcript of proceedings relating to the issuance of the Series 201 1 Bonds, a copy of the signed and authenticated Series 201 1 Bond of the first maturity of each Series, the Bond Resolution and such other documents, matters and law as we deem necessary to render the opinions set forth in this letter. Based on that examination and subject to the limitations stated below, we are of the opinion that under existing law: 1. The Series 201 1 Bonds and the Bond Resolution are valid and binding obligations of the City, enforceable in accordance with their respective terms. The Series 201 1 Bonds constitute limited obligations of the City, and the principal of and interest on (collectively, "debt service") the Series 2011 Bonds, together with debt service on any other obligations issued and outstanding on a parity with the Series 201 1 Bonds as provided in the Bond Resolution, are payable from and secured solely by the Net Revenues and certain funds and accounts established under the Bond Resolution. The payment of debt service on the Series 201 1 Bonds is not secured by an obligation or pledge of any money raised by taxation, and the Series 201 1 Bonds do not represent or constitute a general obligation or a pledge of the faith and credit of the City, the State of Florida or any of its political subdivisions. 3. Interest on the Series 201 1 Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, portions of the interest on the Series 201 1 Bonds earned by certain corporations may be subject to a corporate PMB 423657.3 alternative minimum tax. The Series 201 1 Bonds and the income thereon are exempt from taxation under the laws of the State of Florida, except estate taxes imposed by Chapter 198, Florida Statutes, as amended, and net income and franchise taxes imposed by Chapter 220, Florida Statutes, as amended. We express no opinion as to any other tax consequences regarding the Series 201 1 Bonds. The opinions stated above are based on an analysis of existing laws, regulations, rulings and court decisions and cover certain matters not directly addressed by such authorities. In rendering all such opinions, we assume, without independent verification, and rely upon (i) the accuracy of the factual matters represented, warranted or certified in the proceedings and documents we have examined and (ii) the due and legal authorization, execution and delivery of those documents by, and the valid, binding and enforceable nature of those documents upon, any parties other than the City. In rendering those opinions with respect to treatment of the interest on the Series 201 1 Bonds under the federal tax laws, we fwrther assume and rely upon compliance with the covenants in the proceedings and documents we have examined, including those of the City. Failure to comply with certain of those covenants subsequent to issuance of the Series 201 1 Bonds may cause interest on the Series 201 1 Bonds to be included in gross income for federal income tax purposes retroactively to their date of issuance. The rights of the owners of the Series 201 1 Bonds and the enforceability of the Series 201 1 Bonds and the Bond Resolution are subject to bankruptcy, insolvency, arrangement, fraudulent conveyance or transfer, reorganization, moratorium and other laws relating to or affecting creditors' rights, to the application of equitable principles, to the exercise of judicial discretion, and to limitations on legal remedies against public entities. The opinions rendered in this letter are stated only as of this date, and no other opinion shall be implied or inferred as a result of anything contained in or omitted from this letter. Our engagement as bond counsel with respect to the Series 201 1 Bonds has concluded on this date. PMB 423657.3 Respectfully submitted, MIAMIBEACH - ClTY OF MIAMI BEACH NOTICE OF A PUBLIC HEARING NOTICE IS HEREBY GIVEN that a public hearing will be held by the City Commission of the City of Miami Beach on Tuesday, September 27,2011 at 5:00 p.m. in the City Commission Chambers at City Hall, located at 1700 Convention Center Drive, Miami Beach, Florida 33139, in order to obtain citizen input into the proposed issuance of the City of Miami Beach, Florida Stormwater Revenue Bonds, Series 201 1 A, as identified in the following City Resolution: A RESOLUTION OF THE MAYOR AND ClN COMMISSION OF THE ClN OF MlAMl BEACH, FLORIDA AUTHORIZING THE ISSUANCE OF (i) NOT TO EXCEED $!54,00OlMW) IN AGGREGATE PRINCIPAL AMOUNT OF CITY OF MlAMl BEACH, FLORIDA STORMWATER REVENUE BONDS, SERIES 2011A, FOR THE PRINCIPAL PURPOSE OF PAYING THE COST OF CERTAIN IMPROVEMENTS TO THE STORMWATER UTILIN, PURSUANT TO SECTION 209 OF RESOLUTION NO. 2000-24127 ADOPTED BY THE CtN ON OCTOBER 18,2000, AND (ii) NOT TO EXCEED $28,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF ClTY OF MlAMl BEACH, FLORIDA STDRMWATER REVENUE REFUNDING BONDS, SERIES 2011B, FOR THE PRINCIPAL PURPOSE OF REFUNDING ALL OR A PORTION OF THE CITY'S OUTSTANDING STORMWATER REVENUE BONDS, SERIES 2000, PURSUANT TO SECTION 210 OF SAlD RESOLUTION NO. 2000-24127; PROVIDING THAT 'SAID SERIES 2011 BONDS AND INTEREST THEREON SHALL BE PAYABLE SOLELY AS PROVIDED IN SAlD RESOLUTION NO. 2000-24127; PROVIDING CERTAIN DETAILS DF THE SERIES 2011 BONDS; DELEGATING OTHER DETAILS AND MAlTERS IN CONNECTION WlTH THE ISSUANCE OF THE SERIES 2011' BONDS AND THE REFUNDING OF THE BONDS TO BE REFUNDED TO THE MAYOR, WITHIN THE LIMITATIONS AND RESTRICTIONS STATED HEREIN; APPOINTING UNDERWRITERS, A BOND REGISTRAR, AN ESCROW AGENT AND DISCLOSURE DISSEMINATION AGENT; AUTHORIZING THE NEGOTIATED SALE OF THE SERIES 2011 BONDS AND APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT; AUTHORIZING AND DIRECTING THE BOND REGISTRAR TO AUTHENTICATE AND DELIVER THE SERIES 2011 BONDS; APPROVING THE FORM OF AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION OF THE OFFICIAL STATEMENT; PROVID~NG FOR THE APPLICATION OF THE PROCEEDS OF THE SERIES 2011 BONDS AND CREATING CERTAIN FUNDS, ACCOUNTS AND SUBACCOUNTS; AUTHORIZING A BOOK-ENTRY REGISTRATION SYSTEM WlTH RESPECT TO THE SERIES 201 1 BONDS; AUTHORIZING THE REFUNDING, DEFEASANCE AND REDEMPTION OF THE BONDS TD BE REFUNDED AND APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN. ESCROW DEPOSIT AGREEMENT; COVENANTING TO PROVIDE CONTINUING DISCLOSURE IN CONNECTION WlTH THE SERIES 2011 BONDS AND APROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE AGREEMENT; AUTHORIZING OFFICERS AND EMPLOYEES OF THE CIN TO TAKE ALL NECESSARY RELATED ACTIONS; AND PROVIDING FOR AN EFFECTIVE DATE. Inquiries, including a copy of the proposed Resolution, may be directed to the Office of the City's Chief Financial Officer at (305) 673-7466. ' INTERESTED PARTIES are inked to appear at this meeting or be represented by an agent or to express their views in writing addressed to the City Commission c/o the City Clerk, 1700 Condntion Center Drive, 1" Floor, City Hall, Miami Beach, Florida 331 39. This meeting may be opened and continued and under such circumstances additional legal notice would not be provided. Robert E. Parcher, Ci Clerk City of Miami Beach Pursuant to Section 286.01 05, FL Statutes, the City hereby advises the public that: if a person decides to appeal any decision made by the City Commission with respect to any matter considered at its meeting or its hearing, such person must ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. This notice does not constitute consent by the City for the introduction or admission of otherwise inadmissible or irrelevant evidence, nor does it authorize challenges or appeals not otherwise allowed by law. In accordance with the Americans w'Rh Disabilitiis Act of 1990, persons needing special accommodation to participate in this proceeding, or to request information on access for Dersons with disabilities, or to request this publication in accessible format, or tcrequest sign language interpreters, should contact the City Clerk's office at (305) 673-741 1, no later than four days prlor to the proceeding. If hearing impaired, contact the City Clerk's office via the Florida Relay Service numbers, (800) 955-8771 0 01: (800) 955-8770 (VOICE). AD # 666 LOCAL & STATE 6B - -- - THIS PAGE INTENTIONALLY LEFT BLANK MIAMIBEACH 201 4 C*lrr OFFICE OF THE MAYOR AND COMMISSION CI .- r .%' TO: Jorge Gonzalez, City Manager - - '" ' i FROM: Jerry Li bbin, Commissioner 1 i Please place on the September 27th, 201 1 Commission Meeting of the Whole agenda a discussion regarding Genting and other Casino ventures in Miami. DATE : September 1 6, 201 1 SUBJECT: I Agenda item for the September 27th, 201 i ---,- Whole; a discussion regarding Genting and other Casino ventures in=T-- A - -------- Please contact my office at ext. 71 06 if you have any questions. THIS PAGE INTENTIONALLY LEFT BLANK REDEVELOPMENT AGENCY ITEM SUMMARY Condensed Title: I A resolution of the Chair~erson and Members of the Miami Beach Redevelo~ment Anencv, adoptinn and 1 appropriating the Miami 'Beach Redevelopment Agency Capital Budget for Fiscal year (FV) 201'1112 and adopting the Capital lmprovement Plan for FY 201 1/12 - 2015116 Key Intended Outcome Supported: Ensure well designed quality capital projects -- Increase Community Satisfaction with City Services Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2007 community survey, recently completed capital projects were highly rated by both reddents and businesses. In the 2009 survey, arts and culture were identified as services the city should strive not to reduce; and availabilityof public parking, was one of the factors identified as key drivers of overall satisfaction levels. The proposed funding for FY 201 1/12 includes appropriations for the Bass Museum and Miami City Ballet Renewal and Replacement projects; Botanical Garden (Garden Center) improvements; Collins Park Ancillary improvements; Collins Park Parking Garage design and repayment of land acquisition costs to the Parking Operating Fund in addition to a variety of other important capital improvement projects within the City Center RDA. Issue: - - Should the Chairperson and Members of the Miami Beach Redevelopment Agency (RDA), adopt and appropriate the Miami Beach Redevelopment Agency Capital Budget for FY 201 1/12 and adopt the Capital lmprovement Plan for FY 201 111 2 through 201 511 6? Item SummarylRecommendation: I The CIP was created as a plan for projects that require significant capital investment and is intended to I serve as an official statement of public policy regarding long-range physical development in the City of Miami Beach and the Miami Beach RDA, establishing priorities for the upcoming five year period, FY 201 1/12 - 2015116. The first year of the CIP is recommended for approval as the FY 2011112 Capital Budget. The Proposed Capital Budget for FY 201 1/12 therefore totals $13,541,301 and the Proposed Capital Budget for the RDA Anchor Garage totals $75,845. Advisory Board Recommendation: On June 30,201 1 and July29,2011, the Proposed Capital Budget and updated Capital lmprovement Plan were discussed at meetings of the Finance and Citywide Projects Committee and the proposed Capital Budget and CIP reflects the funding recommendations from that meeting. City Clerk's Office Legislative Tracking: Financial Information: BEACH Source of k.2 OBPl AGENDA ITEM /A ME -7277- Financial Impact Summary: I Total Amount $1 3,541,301 $75,845 $1 3,617,146 Account City Center RDA RDA Anchor Garage MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.rniamibeachfl.gov COMMISSION MEMORANDUM TO: Chairperson Matti Herrera Bower and Members of the Miami Beach Redevelopment Agency / FROM: Jorge M. Gonzalez, Executive Director DATE: September 27,201 1 SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, ADOPTING AND APPROPRIATING THE MIAMI BEACH REDEVELOPMENT AGENCY CAPITAL BUDGET FOR FISCAL YEAR (FY) 201 1112 AND ADOPTING THE CAPITAL IMPROVEMENT PLAN FOR FY 2011112 - 2015116 ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND Planning for capital improvements is an ongoing process; as needs change within the City's Redevelopment District (RDA), capital programs and priorities must be adjusted. The Capital Improvement Plan ("CIP") serves as the primary planning tool for systematically identifying, prioritizing and assigning funds to critical City and RDA capital development, improvements and associated needs. The RDA capital improvement plan process began in the spring when all departments are asked to prepare capital improvement updates and requests on the department's ongoing and proposed capital projects. Individual departments prepare submittals identifying potential funding sources and requesting commitment of funds for their respective projects. The proposed document is reviewed by the City Manager, and upon approval, is submitted to the Finance and Citywide Projects Committee and the City Commission/Redevelopment Agency Board for final approval and adoption. The CIP was created as a plan for projects that require significant capital investment and is intended to serve as an official statement of public policy regarding long-range physical development in the City of Miami Beach. The CIP specifies and describes the City's capital project plan and establishes priorities for the upcoming five year period. Individual projects within neighborhood areas have been combined to create "packages" of projects that address the neighborhood needs for infrastructure upgrades, traffic flow, enhancements, etc. This comprehensive approach minimizes disruptions and generates costs savings. The projects address many needs in different areas of the City including: neighborhood enhancements such as landscaping, sidewalk restoration, traffic calming, lighting, parking, water and sewer system improvements, drainage improvements and roadway resurfacing/reconstruction; park renovation and upgrades; and construction or renovation of public facilities. City Commission Memorandum Resolution Adopting FY 201 1/12 Capital Budget and FY 201 1/12 - 2015116 CIP for the RDA September 27,201 1 Page 2 The Administration is presenting the proposed FY 201 1/12 Capital Budget and the updated CIP for FY 201 1/12 - 201 5/16, following a comprehensive review of the CIP to insure that the Plan accurately reflects all project budgets, funding sources and commitments, for adoption by the City Commission. ANALYSIS Capital lmprovement Plan The FY 201 1/12 - 2015116 CIP for the City of Miami Beach and the RDA is a five year plan for public improvements and capital expenditures by the City and the RDA. This document is an official statement of public policy regarding long-range physical development in the City of Miami Beach and the RDA. The approved Capital lmprovement Plan has been updated to include projects that will be active during the FY 201 1/12 - 201 511 6. The Plan has been updated to include additional funding sources that have become available, changes in project timing, and other adjustments to ongoing projects as they have become better defined. Certain adjustments have been made to reflect projects that have been reconfigured, re-titled, combined with or separated from other projects and/or project groupings and are the result of a comprehensive review of the program to insure that our plan accurately reflects all project budgets, funding sources and commitments. Capital Budget The Proposed Capital Budget for the RDA includes $13,541,301 for projects and capital equipment acquisitions recommended for appropriation in conjunction with the FY 201 1/12 Operating Budget. It itemizes project funds to be committed during the upcoming fiscal year detailing expenses for project components which include: architect and engineer, construction, equipment, art in public places, and other related project costs. Additionally, the projected costs of program manager services are included. Capital reserves, debt service payments, and other capital purchases found in the Operating Budget are not included in this budget. For the first time in Fiscal Year 2012, Capital Renewal and Replacement projects are included as projects in the proposed FY 201 1/12 capital budget. The renewal and replacement projects as presented at the July 29, 2011 FCWPC are included with contingency allocated to each project. Renewal and Replacement projects that were approved in prior years but remain active are also included. On June 30,201 1 and July 29,201 1 the FY 201 1/12 Proposed Capital Budget and updated FY 201 111 2 - 201 511 6 CIP was discussed at meetings of the Finance and Citywide Projects Committee. The Director of Budget and Performance Improvement, Capital lmprovement Project Office Director, department directors, and other City staff were available to discuss specific projects and respond to the Committee's questions. The proposed Capital Budget and CIP reflect the funding recommendation from that meeting. CONCLUSION: The Administration recommends adoption of the attached Resolution, which establishes the Capital Budget for the RDA for FY 201 1/12 and the Capital lmprovement Program for FY 201 1/12 - 2015/16. JMG/KG BILJA 367 RESOLUTION NO. A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENTAGENCY, ADOPTING AND APPROPRIATING THE MIAMI BEACH REDEVELOPMENT AGENCY CAPITAL BUDGET FOR FISCAL YEAR (FY) 2011112 AND ADOPTING THE CAPITAL IMPROVEMENT PLAN FOR 201 1112 THROUGH 2015116. WHEREAS, the 201 111 2- 201 511 6 Capital Improvement Plan (CIP) for the Miami Beach Redevelopment Agency (RDA) is a five year plan for public improvements and capital expenditures by the RDA; and WHEREAS, this document is an official statement of public policy regarding long-range physical development in the City of Miami Beach; and WHEREAS, the Proposed Capital Budget for FY 201 1/12 itemizes project funds to be committed during the upcoming fiscal year detailing expenses for project components which include architect and engineer, construction, equipment, Art in Public Places, and other project costs; and WHEREAS, on June 30, 201 1 and July 29, 201 1 funding needs for the FY 201 1/12 Proposed Capital Budget and CIP were discussed at a meeting of the City of Miami Beach Finance and Citywide Projects Committee and the funding recommendations are reflected; and WHEREAS, the proposed RDA Capital Budget for FY 201 1/12 totals $13,541,301; and WHEREAS, the proposed Anchor Garage Capital Budget for FY 201 111 2 totals $75,845; and WHEREAS, a copy of the proposed projects to be appropriated with the FY 201 1/12 Capital Budget is provided in Attachment "A hereto; and WHEREAS, a summary of the RDA CIP for FY 201 1/12 through 2015116 is provided in Attachment "B" hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH REDEVLOPMENT AGENCY, that the Chairperson and Members hereby adopt and appropriate, the Miami Beach RDA Capital Budget for FY 2011/12 and the CIP for FY 2011/12 through 2015116. PASSED AND ADOPTED THIS - DAY OF 2011. Attest: SECRETARY CHAIRPERSON APPROVED AS TO FORM & LANGUAGE & F0RJZ)ECUTION Attachment A. City of Miami Beach City Center RDA and Anchor Garage FY 2012 Capital Budget FUNDING 365 trsl 6stops rrm21 strcr rrm bassebb rrmbassext rrm bassmgr rrm basshpr rrmbasshvc rrmbassher rrm bassmir rrmbasslci pfcbeachsh pfsbgdwrep rrccarlccl rwscollpar pg mculcam p pgmculcaml pfsctlight rrcgardenc pwslinclan rrslincmal rrslincmfp pkslinrdls rrmmiamicb 463 rrsanchors PROJECT NAME City Center RDA Capital Fund 16th St. Operational Improv/Enhancement 21 st St. Recreation Center Repairs Bass Museum Electrical Breaker Box Repl Bass Museum Exterior Lighting Replacemen Bass Museum Generator Replacement Bass Museum Heat Pump Replacement Bass Museum HVAC Replacement Bass Museum Hydraulic Elevator Replaceme Bass Museum Insulation Replacement Bass Museum Light Controls and lnstrumen Beach Shower Replacement & Renovations Botanical Garden DoorNVindow Replacement Carl Fisher Clubhouse Exterior Window Collins Park Ancillary Improvements Collins Park Parking Garage Collins Park Parking Garage Land Colony Theater Stage Lighting Retro Fit Garden Center Lighting Fixtures and Wiri Lincoln Rd Landscaping-Lenox to Wash. Lincoln Rd. Mall Accent Lighting Replace Lincoln Rd. Mall Fountain Pump, Landscap Lincoln Road Mall ADA Pedestrian pathway Miami City Ballet HVAC Replacement Total RDA - Anchor Garage Fund Anchor Shops Fire System Replacement Total 2011/12 Proposed Budnet Attachment B. City of Miami Beach City Center RDA and Anchor Garage 2012-2016 Capital Plan FUNDING 365 trsl estops pgcl7stefr rwsl7thstn rrm21 strcr utssijave pkslinrosi rwsalleywy encanimalw rrmbassebb rrmbassext rrmbassmgr rrmbasshpr rrmbasshvc rrmbassher rrmbassmir rrmbasslci pkcbassph2 w pfcbeachsh pfcbrrooms pgcbikeprk pkcbicpph2 rwcbkntsgn pksbotanic pfsbgdwrep rrccarlccl rwscityctr rwscchvb9b rwccitywcr trcwayfind enccollcep rwscollpar pkscolpacf pgmculcamp pgmculwml pkscollins pfsctlight 07gtcolonl rwmconvctr rwccrosswa PROJECT NAME City Center RDA Capital Fund 16th St. Operational ImprovIEnhancement 17th Street Garage East Facade Retail 17th Street North lmprv Penn Av to Wash 21st St. Recreation Center Repairs and R 24" PVC Sanitary Sewer Imp 400 Block Lincoln Rd Site lmprov Wing Alleyway Restoration Program Ph I Animal Waste DispensersIReceptacles Bass Museum Electrical Breaker Box Repla Bass Museum Exterior Lighting Replacemen Bass Museum Generator Replacement Bass Museum Heat Pump Replacement Bass Museum HVAC Replacement Bass Museum Hydraulic Elevator Replaceme Bass Museum Insulation Replacement Bass Museum Light Controls and lnstrumen Bass Museum Phase II Expansion Beach Shower Replacement & Renovations Beachfront Restrooms Bicycle Parking - Phase I Bicycle Parking Phase II Bikeways Network Signage Botanical Garden (Garden Center) Botanical Garden DoorNVindow Replacement Carl Fisher Clubhouse Exterior Window CCHV Neigh. 1mprov.-Historic Dist. BP9A City Center-Commercial Dist BP9B City W Curb Ramp InstallationlMaint Citywide Wayfinding Signage System Collins Canal Enhancement Project Collins Park Ancillary Improvements Collins Park Children's Feature Collins Park Parking Garage Collins Park Parking Garage Land Collins ParWStreetscapelRotunda Colony Theater Stage Lighting Retro Fit Colony Theatre Renovation Convention Center Lincoln Rd Connectors Crosswalks Prior Years 201 1112 2012113 2013114 2014115 2015116 Future Total RDA Capital Attachment B Page 1 FUNDING pgmculcii trmdirsign rwsflambpc rrcgardenc pkmnwspark twmlincoln pwslinclan rrslincmal rrslincmfp pkslinrdft pkslinrdls rwslinwash pfmltlstag pkmcolpuar rrmmiamicb pgsmpmpkgf rwpedscosi pkmnwsgara pgcprefgar rwsstlghtw W enmbotancc 2 utsstormrp enctrashrp rwswestrow 463 rrsanchors pgccctvgar pgcaltfenc pgcpa~foot PROJECT NAME Cultural Campus Parking Garage II Directory Signs in the City Center ROW Flamingo Neighborhood - Bid Pack C Garden Center Lighting Fixtures and Wiri Lincoln (New World Symphony) Park Lincoln Rd Between Collins & Washington Lincoln Rd Landscaping-Lenox to Wash. Lincoln Rd. Mall Accent Lighting Replace Lincoln Rd. Mall Fountain Pump, Landscap Lincoln Road Landscaping Future Years Lincoln Road Mall ADA Pedestrian pathway Lincoln Road Washington Av to Lenox Ave Little Stage Complex Maze Project 21 St & Collins Avenue Miami City Ballet HVAC Replacement Multi-Purpose Municipal Parking Facility Pedestrian Countdown Signals Ph I Pennsylvania (New World Symphony) Garage Preferred Lot Parking Garage Replace 5,000 Volt Direct Burial Seawall-Botanical GardlCollins Canal Cor Stormwater Pipe - Repairs Trash Receptacles West AvenuelBay Road Improvements Total RDA - Anchor Garage Fund Anchor Shops Fire System Replacement Closed Circuit Television System Maint-16th St Garage (Anchor)-Gen Pay on Foot (POF) Machines Total Prior Years 201 1112 2012113 2013114 0 0 0 0 108,268 0 0 0 752,900 0 0 0 0 73,725 0 0 19,485,100 0 0 0 2,516,583 0 0 0 0 150,000 0 0 0 100,760 0 0 0 62,315 0 0 0 0 150,000 150,000 0 87,500 0 0 0 0 0 0 637,200 0 0 0 135,000 0 0 0 0 534,358 0 0 14,863,606 0 0 0 56,000 0 0 0 17,085,135 0 0 0 0 0 0 0 30,000 0 0 0 0 0 1,208,662 0 397,529 0 0 0 25,000 0 0 0 750,000 0 0 0 100,147,786 13,541,301 16,454,520 150,000 2014115 2015116 Future 0 0 12,399,971 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 150,000 150,000 0 0 0 0 20,000,000 0 0 0 0 7,390,120 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 70,000,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 20,150,000 150,000 119,974,621 Total 12,399,971 108,268 752,900 73,725 19,485,100 2,516,583 150,000 100,760 62,315 600,000 87,500 20,000,000 8,027,320 135,000 534,358 14,863,606 56,000 17,085,135 70,000,000 30,000 1,208,662 397,529 25,000 750,000 270,568,228 RDA Capital Attachment B Page 2 THIS PAGE INTENTIONALLY LEFT BLANK MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY Condensed Title: A Resolution of the Chairperson and Members of the Miami Beach Redevelopment Agency adopting and appropriating the operating budgets for the City Center Redevelopment Area, the Anchor Shops and Parking Garage and the Pennsylvania Avenue Shops and Garage for Fiscal Year 201 1/12. Key lntended Outcome Supported: Improve the City's overall financial health and maintain overall bond rating Supporting Data (Surveys, Environmental Scan, etc.): One of the City's Key lntended Outcomes is to ensure well designed and well maintained capital projects and infrastructure. In keeping with this goal, approximately 74 percent or $27.6 Million of the proposed Budget for City Center is being allocated towards capital expenditures including new capital projects and renewal, maintenance and replacement of existing RDA capital infrastructure. Issue: Should the RDA Board adopt the proposed operating budgets for the City Center Redevelopment Area, the Anchor Shops and Parking Garage and the Pennsylvania Avenue Shops and Garage for Fiscal Year 201 1/12? Item Summary/Recommendation: The proposed budget for the City Center Redevelopment Area for Fiscal Year 201 1/12 has been prepared to coincide with the overall City budget process, and is being presented to assist in providing a comprehensive overview of the district. Additionally, the revenues and expenses associated with the operations of the Anchor Shops and Parking Garage as well as the Pennsylvania Avenue Shops and Garage are presented as separate schedules so as to eliminate any perception that proceeds from the Facility's operations are pooled with TIF and other Trust Fund revenues. Also, subject to the finalization of the FY 2009/10 tax roll by the County Tax Assessor, the proposed RDA Budget includes an allowance for the County's anticipated adjustment (reduction) for overpayment of TIF during FY 2009110 (estimated at $1.5 Million for the City's Share and $1.3 Million for the County's share), representing a total decrease in TIF revenues of $2.8 Million. In order to address the existing and future obligations of the Redevelopment Area, it is recommended that the Redevelopment Agency adopt the attached Resolution which establishes the operating budgets for the City Center Redevelopment Area, the Anchor Shops and Parking Garage and the Pennsylvania Avenue Shops and Garage for N 201 1/12. - Advisory Board Recommendation: 1 N.A. Financial Information: I source of Amount Account I 1 Funds: I I I 1 $37,375,241 1 City Center Redevelopment Area Fund I / 3 1 $1,210,076 1 Pennsylvania Avenue Shops and Garage Operations I I 1 2 I I I OBPl I Total 1 $42,211,900 I Financial Impact Summary: I $ 3,626,583 City Clerk's Office Legislative Tracking: 1 Kent Bonde, Laura Aker and Kathie Brooks Anchor Shops and Parking Garage Operations Sign-Offs: MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov REDEVELOPMENT AGENCY MEMORANDUM TO: Chairperson and Members of the Miami Beach Redevelopment Agency FROM: Jorge M. Gonzalez, Executive Director DATE: September 27, 201 1 SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, ADOPTING AND APPROPRIATING THE OPERATING BUDGETS FOR THE CITY CENTER REDEVELOPMENT AREATHE ANCHOR SHOPS AND PARKING GARAGE AND THE PENNSYLVANIAAVENUE SHOPSAND GARAGE FOR FISCAL YEAR 201 1/12. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS The proposed budget for the City Center Redevelopment Area (RDA) for Fiscal Year 201 111 2 has been prepared to coincide with the overall City budget process, and is being presented today to assist in providing a comprehensive overview of the district. Please refer to the attached Exhibit A for the proposed budget details. Revenues Based on the 201 1 Certificate of Taxable Value from the Property Appraiser's Office and following two years of declining property values, the value of property in City Center is actually expected to show a small, but welcomed, 0.5% increase over 201 0. However, based on the County's proposed reduction to its millage rate in 201 1, the RDA anticipates a corresponding $1.8 Million decline in TIF revenues. Based on the millage rates as proposed (City - 6.2155 mills/County - 4.805 mills), the RDA anticipates receiving $32.8 Million in FY 201 1/12. Additionally, as in previous years, the City also anticipates receiving correspondence from the County advising of the finalization of the tax roll for the prior year, which in the case of past two fiscal years, is anticipated to reflect a decrease from the preliminary valuation for the same year. The proposed budget includes an estimated adjustment of $1.5 Million to impact the City's share of TIF, and a $1.3 Million adjustment for the County's share. Additional sources of revenue include an estimated $4.3 Million in Resort Tax contributions; a % mill levy in the amount of $1.5 Million, to be set aside for the Children's Trust pursuant to an Interlocal Agreement, dated August 16,2004 between the RDA, the City of Miami Beach and Miami-Dade County; an estimated $1 79,000 in interest income; and a fund balance recognition in the amount of $1.4 Million to fund certain capital renewal and replacement projects scheduled in FY 201 1/12. September 27, 201 1 Redevelopment Agency Memorandum Operating Budget for City Center for FY 201 1/12 Page 2 of 3 Expenditures Project-related expenses account for approximately $21.7 Million, which includes $3.4 Million to be allocated for community policing initiatives in City Center to continue to provide enhanced levels of staffing and services throughout the area, and $4.3 Million for maintenance of RDA capital projects. On-going and planned capital projects in City Center are projected to account for $13.5 Million in the FY 201 1/12 Budget, and generally include allocations for reimbursement of land acquisition costs associated with the Collins Park garage project; plan development costs associated with the Collins Park garage; ancillary improvements to Collins Park; capital renewal and replacement projects; and certain smaller-scale capital improvements involving the Botanical Garden, Lincoln Road and the Colony Theater. Additionally, $395,913 in transfers to the recently opened Pennsylvania Avenue Shops and Garage are budgeted to offset the City's costs associated with the retail and parking operations. Administrative Expenses total $1.47 Million, comprising of a management fee of $1,010,901 which is allocated to the General Fund to pay for direct and indirect staff support for the RDA; $70,544 for actual operating expenses; $200,000 set aside for consulting work related to the Convention Center expansion master plan; and $84,857 for capital renewal and replacement projects under $25,000. It should be noted that the Management Fee allocation is reflective of actual city resources applied to the operation of the RDA, as supported by the RSM McGladrey Cost Allocation Study, dated July20, 2009. It should further be noted that Administrative and Operating expenses only account for less than four percent (4%) of the total budget, which is well below the 20% threshold level established (and permitted) in the lnterlocal Agreement between the City and the County. The current combined debt service on the 2005 Series Bonds and the Parity Bonds accounts for approximately $8.4 Million annually. City Center also continues assuming debt service payments on the portion of the Gulf Breeze Loan used to pay for the Bass Museum expansion and renovation, and the portion of the Sunshine State Loan Program used for Lincoln Road improvements, which collectively account for approximately $1.6 Million. These payments were previously made from water, sewer, storm water, gas and resort tax proceeds. Reserve line item expenditures include those items that, pursuant to the existing Bond Covenants, may only be expended once the annual debt service obligations have been met. These include the County's administrative fees, equivalent to 1.5% of its respective TIF payment; and the corresponding contribution to the City's General Fund, equivalent to 1.5% of the City's share of its TIF payment; and the remittance of the % mill tax levy back to the Children's Trust. Additionally, with the recent successful acquisition of the property for the Collins Park Garage, the RDA is setting aside $2.3 Million towards the anticipated design and construction of the project. The revenues and expenses associated with operations of the newly opened Pennsylvania Avenue Shops and Garage and the Anchor Shops and Parking Garage are presented as separate schedules in order to eliminate any perception that proceeds from the facilities' operations are pooled with TIF and other Trust Fund revenues: Anchor Shops and Parking Garage Garage revenues at the Anchor Garage are projected at approximately $2.9 Million, with operating expenses, (including depreciation, contractual revenue-sharing obligations with Loews and general fund administrative fees), of approximately $2.4 Million and reserves of $0.5 Million. Anchor retail operation is expected to generate $727,483 in revenues, including interest, with operating expenses associated with the retail management contract, related reimbursable expenditures, and management fee to the general fund estimated at approximately $1 13,330, as well as reserves of September 27, 201 I Redevelopment Agency Memorandum Operating Budget for City Center for FY 201 1/12 Page 3 of 3 Pennsylvania Avenue Shops and Garage In consideration of the fact that the Pennsylvania Avenue Shops and Garage was built by the RDA on City-owned property, the operation of the facility has been structured in the form of a ground lease between the City and the RDA, providing terms for both the Garage and Retail operations. The garage operations include base rent and an administrative fee, consistent with that of the Anchor Garage, Parking's operational fee, and revenue sharing between the City and the RDA. The Retail operations also include base rent and an administrative fee, as well as a retail lease rate based on 201 0 retail market cap rates. The retail operations also include revenue sharing between the City and the RDA. Based on estimates of the garage's first-year operating results, and taking into consideration the successful execution of a lease agreement with Penn 17, LLC., for the entire retail space, the facility is anticipated to generate $814,163 in revenues in FY 2011112, comprising $521,400 in parking revenues and $292,763 in retail income. Since the facility is anticipated to operate at a loss during its initial year, the RDA plans to subsidize its operations through a transfer of $48,801 to parking operations and $347,112 to retail in FY 201 1112. Expenses for the facility are budgeted at $1.2 Million, comprising $453,678 in direct operating costs for the garage; $419,701 in lease term- related obligations; $326,697 in leasing commissions related to the new lease; and $10,000 in contingency. CONCLUSION In order to address the existing and future obligations in the Redevelopment Area, it is recommended that the Redevelopment Agency adopt the attached Resolution, which establishes the operating budgets for the City Center Redevelopment Area, the Anchor Shops and Parking Garage, and the Pennsylvania Avenue Shops and Garage for FY 201 1112. J MGIH FIKBILAIKOB T:\AGENDA\2011\sep28\Regular\RDABudgetrnerno2011~12.doc RESOLUTION NO. A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY ADOPTING AND APPROPRIATING THE OPERATING BUDGET FOR THE CITY CENTER REDEVELOPMENT AREA , THE ANCHOR SHOPS AND PARKING GARAGE AND THE PENNSYLVANIA AVENUE SHOPS AND PARKING GARAGE FOR FISCAL YEAR 201 1/12 WHEREAS, the proposed City Center Redevelopment Area Budget has been prepared to coincide with the overall City budget process; and WHEREAS, the proposed City Center Redevelopment Area Budget reflects anticipated construction project costs in addition to operating and debt service costs for the fiscal year; and WHEREAS, the proposed budgets for the Anchor Shops and Parking Garage and the Pennsylvania Avenue Shops and Garage have been included as separate schedules to the City Center Redevelopment Area Budget, reflecting projected revenues and operating expenses for the fiscal year; and WHEREAS, the Executive Director recommends approval of the proposed Fiscal Year 201 1/12 budgets for the City Center Redevelopment Area, as well as for the Anchor Shops and Parking Garage and the Pennsylvania Avenue Shops and Garage; and NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairperson and Members hereby adopt and appropriates the operating budget for the City Center Redevelopment Area, the Anchor Shops and Parking Garage and the Pennsylvania Avenue Shops and Garage for Fiscal Year 201 1/12, attached as Exhibit "A hereto. PASSED AND ADOPTED THIS SEPTEMBER 27TH DAY OF 201 1. CHAIRPERSON ATTEST: SECRETARY APPROVED AS TO FORM &LANGUAGE & FOR EXECUTION JMG:HF:KB:JC:KOB T:\AGENDA\201 l\sep2011 Regular\RDA BUDGET RESO 201 1-12.doc Miami Beach Redevelopment Agency City Center Redevelopment Area Proposed FY 201 1112 Operating Budget EXHIBIT A Revenues and Other Sources of lncome Tax Increment - City Proj Adjustment to City Increment Tax Increment - County Proj Adjustment to County Increment 50% Contribution from Resort Tax '112 Mill Children's Trust Contribution Interest Income Fund Balance Renewal and Replacement Other Income/Adjustments: TOTAL REVENUES AdminlOperating Expenses Management fee (salaries & benefits) Advertising & promotion Postage, printing & mailing Office supplies & equipment Meetings & conferences Dues & subscriptions Audit fees Professional & related fees Repairs and Maintenance Miscellaneous expenses Total AdminlOperating Expenses Project Expenses Community Policing Capital Projects Maintenance NWS ProjectILincoln Park Complex Contingency NWS Project - Grant-in-Aid Transfer to Penn Garage Parking Transfer to Penn Garage Retail Transfer to CapitallRenewal and Replacement Total Project Expenses Reserve and Debt Service Obligations Debt Service Cost - 2005 + Parity Bonds Current Debt Service - Lincoln Rd Project Current Debt Service - Bass Museum Reserve for County Admin Fee Reserve for CMB Contribution Reserve for Children's Trust Contribution Reserve for Collins Park Parking Garage Repayment-Prior Yr Fund Balance Total Reserve and Debt Service TOTAL EXPENSES AND OBLIGATIONS FY 08109 FY 09110 PT 10111 FYI 1112 Variance Actual Actual Adopted Proposed PT12-Nl1 REVENUES - EXPENSES Proposed FY 2011112 Anchor Shops and Parking Garage (16th Street Parking Garage) Operating Budget Revenues: Parking Operations Retail Leasing lnterest Pooled Cash TOTAL REVENUES FY 08/09 FY 09/10 FY 1011 1 Total Variance Actual Actual Budget FYI2 Request FYlBFYl 1 $ 2,566,337 $ 2,707,650 $ 2,368,000 $ 2,885,000 $ 517,000 $ 752,437 $ 704,335 $ 714,150 $ 714,150 $ $ 46,076 $ 34,298 $ 39,216 $ 27,433 $ (1 1,783) $ 3,364,850 $ 3,446,283 $ 3,121,366 $ 3,626,583 $ 505,217 Operating Expenses: Parking Operations $ 1,585,471 $ 1,866,663 $ 1,704,823 $ 1,773,125 $ 68,302 Garage Use Fee (To Loews) $ 321,102 $ 350,272 $ 281,288 $ 408,800 $ 127,512 Retail Leasing Property Management Fee $ 61,190 $ 60,631 $ 62,720 $ 62,720 $ Retail Internal Service Charges $ - $ - $ 32,713 $ 41,129 $ 8,416 Manaaement Fee to General Fund $ - $ 158.129 $ 189.074 $ 206.221 $ 17.147 ~ese&e for Future Capital - Parking Operations $ 563,832 $ 332,586 $ 219,415 $ 520,435 $ 301,020 Reserve for Future Capital - Retail Operations $ 674,594 $ 612,851 $ 631,333 $ 614,153 $ (17,180) TOTAL EXPENSES $ 3,206,189 $ 3,381,132 $ 3,121,366 $ 3,626,583 $ 505,217 REVENUES - EXPENSES $ 158,661 $ 65,151 $ - $ - $ Proposed FY 2011112 Pennsylvania Ave Shops and Garage Operating Budget Revenues: Parking Operations Retail Leasing Retail Transfer from RDA Operations Parking Transfer from RDA Operations lnterest Pooled Cash TOTAL REVENUES Operating Expenses: Parking Operations Expenditures Parking Base Fee Garage Ground Lease Garage Management Fee Retail Ground Lease Contingency Leasing Commissions Retail Management Fee TOTAL EXPENSES REVENUES - EXPENSES FY 08/09 FY 09/10 FY 10111 Total Variance Actual Actual Budget FYI2 Request FYI 2-FYI 1 $ - $ - $ - $ 521,400 $ 521,400 $ - $ - $ - $ 292,763 $ 292,763 $ 347,112 $ 347,112 $ - $ - $ - $ 48,801 $ 48,801 $ - $ - $ - $ - $ - - $ - $ - $ - $ 1,210,076 $ 1,210,076 THIS PAGE INTENTIONALLY LEFT BLANK