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