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C6C-Report- Finance And Citywide Projects Committee On October 27 2011(9 MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miomibeochfl.gov COMMITIEE MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: DATE: December 14, 2011 {j\ SUBJECT: City Manager Jorge M. Gonzalez illw REPORT OF THE FINANCE k}D IDE PROJECTS COMMITTEE MEETING OF October 27,2011. OLD BUSINESS 1. Discussion regarding incentives for fac;ade renovation in North Beach Commercial Corridors ACTION The Committee asked Staff to send a memo regarding the number of code violations that the vacant building at 7433 Collins Avenue has received. The Committee recommended approving the Fac;ade Improvement Program (FIP) Guidelines and contracting out the management of the program. Economic Development Division Director Kevin Crowder presented the item and gave a brief synopsis of the memo. At the April 27, 2011 Finance & Citywide Projects Committee meeting, the Administration presented a proposed fac;ade revitalization program. At that time, staff explained that they had met with representatives from North Beach and their feedback suggested starting a program between 73rd and 751h Streets, which is the North Beach Target Area. The Administration met with some of the property owners in the program area; these owners have expressed interest in participating in the program, especially for improvements to awnings, signage, windows and painting of the buildings. Funding may be provided to tenants or building owners (within the program areas) up to a maximum of $30,000 per building. Applicants will be eligible for up to $10,000 with no match requirement and for any amount between $10,001 and $30,000 applicants must provide a match equal to or greater than fifty percent of the amount awarded through the program. The program is primarily intended to benefit existing businesses, and would be administered in phases, with Phase 1 being only existing businesses, and Phase 2 open to both existing businesses and property owners. Individual vacant storefronts would not qualify for assistance, but may qualify as part of a fac;ade enhancement project for a building with multiple storefronts. Commissioner Jonah Wolfson was concerned that vacant buildings would be excluded from the program. Joyce Meyers, Planning Department, stated that only one building is vacant and would be excluded 1 :Agenda Item 135 Date c~c. J2-/'f-tl from the program. Chairperson Deede Weithorn asked Staff to send a memo regarding the number of code violations that the vacant building has received. Chairperson Weithorn asked about the management of the program. Assistant City Manager Hilda Fernandez stated that management of the program would be contracted out to a third party (organization or individual) to coordinate the program and ensure compliance with the various entitlement funding requirements. The Committee recommended approving the Fa9ade Improvement Program (FIP) Guidelines and contracting out the management of the program. 2. Discussion regarding a new voluntary benefit-BMG Loans ACTION The Committee recommended that the program be offered on a trial basis, that the loan terms and amounts be limited and that the item be brought to the full Commission for further discussion. Human Resources Director Ramiro lnguanzo introduced Marion Mathes, Chief Executive Officer at BMG Money, who presented the item. BMG Money offers all active full-time and part-time employees voluntary employee emergency loans through a program called "Loans At Work". The Loans At Work program is a direct-to-consumer loan, designed for employees who do not have access to traditional credit options, such as banks, credit unions, credit cards, deferred compensation and/or retirement accounts. The loans are unsecured and based on the employee's employment, employee's bi-weekly net take-home pay, and the ability for the employee to repay the loan. The City would not bear any responsibility or liability for the program; however, there is a wire transfer fee that would be paid by the City unless the fee is negotiated to be paid by BMG. Commissioner Jorge Exposito asked what the cost of the administrative work would be. Mr. lnguanzo stated that that there would be staff time and the cost of the wire transfer but that the current staff could handle the administration of the program. Commissioner Exposito then asked if other outstanding loans or obligations would be taken into consideration when determining the loan amount offered to an employee. Ms. Mathes stated that a budget must be filled as part of the online application process and that educational seminars could be provided. Commissioner Jonah Wolfson was concerned that this program could compound existing financial problems that an employee may have. Chairperson Deede Weithorn suggested that the program be implemented on a trial basis. Chief Financial Officer Patricia Walker suggested the loans be offered for a limited term and amount during the trial period. The Committee recommended that the program be offered on a trial basis, that the loan terms and amounts be limited and that the item be brought to the full Commission for further discussion. NEW BUSINESS 3. Discussion pertaining to the issuance of the Request for Proposals (RFP) for the comprehensive professional tennis management and operations services at the City's Flamingo Park and North Shore Tennis Centers ACTION 2 136 The Committee recommended extending the current agreement with Greensquare on a month-to-month basis until such time as the new Flamingo Park Tennis Center is nearing completion and at such time coordinate the issuance of the RFP in a manner to have the selected operator in place to coincide with the grand opening of the new facility. The Committee recommended that an item regarding the creation of a Tennis Advisory Committee be added to a Commission agenda. Assistant City Manager Hilda Fernandez presented the item and gave a brief history of the item. The current agreement with Greensquare, Inc., for the management and operations of the City's tennis centers is due to expire in April 2012. Administration was seeking direction on whether to issue a Request for Proposals (RFP) to avoid any break in quality operations or services to the City's tennis-playing residents and guests or extend the current agreement with Greensquare on a month-to-month basis until such time as the new Flamingo Park Tennis Center is nearing completion, and at such time coordinate the issuance of the RFP in a manner to have the selected operator in place to coincide with the grand opening of the new facility. The Flamingo Park Tennis Center is currently scheduled for demolition and construction is to begin in January 2012. It is anticipated that construction will take approximately one year, with an expected completion date of January 2013. Public comment included requests for extending the current agreement with Greensquare until the new Flamingo Park Tennis Center is open and for the creation of a Tennis Advisory Committee. Discussion ensued. The Committee recommended extending the current agreement with Greensquare on a month-to-month basis until such time as the new Flamingo Park Tennis Center is nearing completion and at such time coordinate the issuance of the RFP in a manner to have the selected operator in place to coincide with the grand opening of the new facility. The Committee also recommended that an item regarding the creation of a Tennis Advisory Committee be added to a Commission agenda. 4. Discussion concerning City Fees and Charges for Gay Pride 2012 ACTION Item Deferred 5. Discussion regarding reducing the bills penalty from 1 0% to 5% ACTION The Committee recommended charging 1.5% each month on all past due amounts to be consistent with other utility companies. Chief Financial Officer Patricia Walker presented the item. At the July 13, 2011 City of Miami Beach Commission meeting, a discussion item regarding the reduction of utility bill's penalty percentage, from 1 0% to 5% was referred for discussion. Presently, when a utility bill is in arrears, the City charges a one-time 1 0% penalty on the current portion of the bill. No additional interest or penalties are 3 137 charged. Penalties and interest from other utility companies were presented and the Committee recommended charging 1.5% each month on all past due amounts to be consistent with other utility companies. 6. Discussion of a proposed modification of the promissory note dated February 5, 2007, between MBCDC: Meridian Place, LLC, a Florida Limited Liability Corporation, to the Miami Beach Redevelopment Agency; and to discuss a subordination of the City's mortgages in favor of a mortgage made by a commercial lending institution ACTION Item Deferred 7. Discussion regarding franchising of valet parking operations ACTION The Committee did not recommend franchising valet parking operations. On September 14, 2011, the Mayor and Commission, via Agenda Item No. C4B, sponsored by Commissioner Jonah Wolfson, referred a discussion item to the Finance and Citywide Projects Committee regarding the franchising of valet parking operations. In 2009, the valet parking franchise/concession concept was initially suggested by former Commissioner Victor Diaz. Commissioner Diaz raised concerns with the City's existing valet parking model and suggested that a franchise model, similar to what exists today with the City's sanitation franchised services, could be a viable model for valet parking services. The Committee was not in favor of franchising valet parking operations and did not recommend moving forward with the initiative. 8. Discussion regarding the catering and concession agreements for the Miami Beach Convention Center ACTION The Committee recommended that the City exercise the option to renew for two {2) years with three additional one {1) year renewals. Assistant City Manager Hilda Fernandez presented the item and gave a history of the item. On April 11, 2006, the Mayor and City Commission approved the issuance of a Request for Proposal (RFP) No. 22-05/06, to provide Professional Food and Beverage Facilities Management Services for the Miami Beach Convention Center; with an option to mange food and beverage services at other city cultural facilities to include: 1) the Jackie Gleason Theater of the Performing Arts; 2) the Colony Theater; and 3) the Byron Carlyle Theater. This RFP was issued in advance of Centerplate's expiring contract on February 28, 2007. On September 6, 2006, the City Commission adopted Resolution No. 2006-26316 authorizing the Mayor and Clerk to execute an agreement upon completion of successful negotiations by the Administration. Centerplate didn't conclude negotiations until December 13, 2007, which is when the final agreement was executed. The terms of the Agreement were retroactive to March 1, 2007 and expire on September 4 138 30, 2012. The Agreement also includes two (2) successive,[ check with Max -I think this might be incorrect] five (5) year renewal options at the City's discretion. She reported that the Convention Center Advisory Board (CCAB) at their June 7, 2011 meeting, discussed whether or not the City should exercise the five (5) year renewal option available in the Agreement or issue a new RFP. The CCAB reviewed Centerplate's history and unanimously recommended that the City issue a new RFP for catering and concession services at the Convention Center. This recommendation was based largely on Centerplate's client survey scores and their history of being the lowest- rated area of the Convention Center's overall operations. Commissioner Jorge Exposito asked how this service compares to other convention centers. Chairperson Deede Weithorn stated that they were better than the industry. Discussion ensued. The Committee recommended that the City exercise the option to renew. Although staff acknowledged an improvement in performance in the past six months, they recommended that the renewal be for two (2) years with three one (1) year renewals, allowing for the City to choose not to renew if performance issues arise again. Tim Nardi spoke. 9. Discussion and review of City's Investment Policy ACTION Item Deferred 5 139 Attendance Sheet ~ . MEETING OF THE FINANCE & CITYWIDE PROJECTS COMMITTEES Date: October 27, 2011 Please PRINT Name Business Name & Phone 140 Attendance Sheet MEETING OF THE FINANCE & CITYWIDE PROJECTS COMMITTEES Date: October 27,2011 Please PRINT Name Business Name & Phone 141 THIS PAGE INTENTIONALLY LEFT BLANK 142