C6C-Report- Finance And Citywide Projects Committee Meeting September 19 2013(9 MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMtTIEE MEMORANDUM
TO:
FROM:
Mayor Matti H. Bower and Memb
Jimmy L. Morales, City Manager
s of the c:sion
DATE: October 16, 2013
SUBJECT: REPORT OF THE SPECIA FINANCE AND CITYWIDE
PROJECTS COMMITIEE MEETI G ON SEPTEMBER 19, 2013
The agenda is as follows:
OLD BUSINESS
1. Discussion of old business items to determine if they should remain
on the pending items list:
a. Status update on Business Tax Process Improvement
ACTION
The Committee recommended leaving this item on the agenda since the new
Accela process is still pending.
b. Additional proposed amendment to the City's Living Wage
Ordinance Mandating Health Benefits Plan
ACTION
The Committee recommended removing this item.
c. Discussion of responses received from the Request for Letters of
Interest (RFLI) for a North Beach parking garage
ACTION
The Committee recommended removing this item.
d. Discussion on water conservation methods and implementation
ACTION
The Committee recommended removing this item.
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Agenda Item Ct,C
Date /tJ-/b-1~ ......
e. Discussion regarding upgrade to Municipal Parking Garage gated
revenue control system
ACTION
The Committee recommended leaving the item on the agenda due to the fact that
the current revenue control system needs to be updated.
f. Discussion regarding the issuance of a request for qualifications
for a third franchise Solid Waste contractor for residential and
Commercial Solid Waste collections and disposal
ACTION
The Committee recommended removing this item.
g. Discussion regarding permit expiration courtesy notices;
Amnesty for expired permits; And length of time for building
permits
ACTION
The Committee recommended removing this item.
2. Discussion regarding existing tenant's new proposal to renew the
retail lease agreement with 1560 Collins Avenue, Inc. D/B/A Shan
("Tenant"), for the use of suites B and C in the Anchor Shops,
located at 1560 Collins Avenue, Suite No 2, Miami Beach, Florida
("Space"); Compared to the US Vintage proposal for this space,
approved at the July 25, 2013 Citywide Projects Commission
Committee
ACTION
The Committee recommended continuing the lease with 1560 Collins
Avenue, Inc. d/b/a Shan for the use of Suites B and C in the Anchor Shops.
Cultural Arts & Tourism Development Director Max Sklar presented this item.
Cultural Arts & Tourism Development Director Max Sklar began by stating since
the July 25, 2013 Finance and Citywide Projects Committee (FCWPC) meeting,
the tenant's Montreal-based parent company has made the business decision to
keep its presence in Miami Beach, Florida and fund any shortages which Shan
may have during the renewal term. They have seen steady increases in the
gross revenues in the past months. On August 28, 2013, tenant submitted a
proposal to renew its lease, for the balance of its five year renewal term ("Shan
Proposal"), based upon comparable rental terms to those of US Vintage
Proposal. Staff recommends moving forward with the Tenant's proposal since
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monetarily, the offer matches the US Vintage Proposal and it would keep the
diversity of merchandise being sold at the Anchor Shops, while at the same time
diversifying the risk of a default. Shan is current in its leasehold obligations and
has been a compliant Tenant throughout its tenancy.
It should be noted that negotiations with the Tenant have extended past the
March 18, 2013 expiration date of the initial Lease, pursuant to the provisions in
the Lease, the Term has been extended on a month-to-month basis at the
current rental rate until revised terms are approved by the City for the remaining
five-year option. Commissioner Jorge Exposito made a motion to continue the
lease with 1560 Collins Avenue, Inc. d/b/a Shan for the use of Suites 8 and C in
the Anchor Shops and it was seconded by Commissioner Michael Gongora.
3. Discussion regarding a proposal from Alpha 22, LLC to lease 2,216
square feet of city-owned vacant property, located at 22nd Street and
Washington Avenue, adjacent to existing restaurant space located at
816 Commerce Street, Miami Beach, Florida 33139 (Space), to be
used as outdoor cafe, concurrent with the lease/use of the adjoining
restaurant
ACTION
The Committee recommended moving forward in pursuing a lease
agreement with Alpha as proposed with the necessary revisions as
discussed.
Cultural Arts & Tourism Development Director Max Sklar presented this item.
Cultural Arts & Tourism Development Director Max Sklar began by stating the
City has received an offer from Alpha II, LLC ("Tenant" or "Alpha") to lease a
City-owned 2,216 square foot vacant parcel located at 22 Washington Avenue,
("Site" or "City-Owned Parcel"), which is adjacent and east of 816 Commerce
Street, a privately owned two-story commercial building. The City-Owned Parcel
is a remaining portion of an undeveloped platted lot which is the residual lot in
connection with the expansion of Washington Avenue. Due to its limited size and
shape, the property serves little more than to provide access to 816 Commerce
Street. The proposal to lease this Site is from a restaurateur who proposed to
place tables and chairs on the Site to supplement the interior seating in the
adjacent, privately-owned restaurant ("Restaurant Space").
Mr. Sklar went on to state the latest offer to lease the City-Owned Parcel comes
from Alpha, who intends to utilize the City-Owned Parcel and adjoining
Restaurant Space as a French Restaurant. Alpha Managing Principal Oliver
Lubrano stated he currently manages and operates a French restaurant in New
York under the name of Rouge NYC. Mr. Lubrano intends to follow a similar
business plan utilized for Rouge NYC. Alpha currently intends to develop its site
plan for the City-Owned Parcel, similar to the plan developed by the previous
tenant, Syanna ("Syanna Site Plan"), which was approved by Planning;however,
Tennant's final site plan will have to be approved by the City, as Landlord, and
the Planning and Zoning Department. Mr. Sklar added that in order to mirror the
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lease terms for the Restaurant Space, Alpha proposes a lease for nine years and
364 days in connection with the City-Owned Parcel at an initial base rent of
$20.00 per square foot, plus 3% annual increases every year thereafter, subject
to the known Neighborhood Restrictions, as evidenced from the Letter of Intent.
Typically, the leases with the City are for a shorter term. Staff recommends a
shorter term with renewal options just in case unforeseen issues occur that need
to be addressed.
Commissioner Jorge Exposito wanted to make sure no bus stations would be
placed within the leases premises and the beautification of the area is maintained
and that chairs and tables aren't being roped and tarped when the restaurant
closes at night. Commissioner Michael Gongora made a motion to move forward
in pursuing a lease agreement with Alpha as proposed with the necessary
revisions as discussed. Commissioner Exposito seconded.
4. Discussion regarding an amendment to the lease by and between the
City of Miami Beach (ulandlord") and Massage Partners~ Inc.
("tenant") dated September 15, 2010, for the premises located at 1701
Meridian Avenue, unit 2 (a/kla 767 17th street), Miami Beach, Florida,
concerning: 1) the additional use of the demised premises as a nail
salon; and 2) the use of the common area restrooms located on the
second floor of the 1701 Meridian Avenue office building for tenant's
nail salon customers
ACTION
The Committee recommended moving forward with the proffer of allowing
the usage of the bathrooms as long as the tenant escorts the customers to
and from the bathroom after hours and an increase to $6.00 per square foot
for Common Area Maintenance fees of the restroom.
Cultural Arts & Tourism Development Director Max Sklar presented this item.
Cultural Arts & Tourism Development Director Max Sklar began by stating the
Franchisor has stated it cannot approve the sharing of signage, entryways or
bathrooms by its franchisees with other businesses. The Leased premises
contain a separate entryway for the Proposed Nail Salon Space as well as a
separate area for window signage. However, the Leased Premises do not
contain a separate restroom which can be utilized by the nail salon customers.
Subsequent to numerous discussions between the Administration and the
Tenant, it was detennined that a separate restroom is also required by the City in
order for the Proposed Nail Salon Space to obtain the applicable business
licenses. The Committee asked for direction from the Building Department to
determine if the use of the common area bathrooms located on the second floor
of the 1701 Meridian Avenue office building is permitted under the Building Code.
The Committee also asked if the Building Code allows for Massage Partners to
use the Permit Doctor's bathrooms via an agreement between the tenants. The
space currently only allows for access afterhours to City Employees which was
one of the Mayors concerns. Massage Envy has General Liability insurance that
covers the entire building. Mayor Aide Gabrielle Redfern stated the mayor has
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concerns regarding current construction on the upper floors and after hour
access to those floors.
Chairperson Deede Weithorn stated if the tenants are escorted, that makes us
feel more comfortable to allow access to the bathrooms. Mr. Sklar added the nail
services and use of the restroom on the 2nd floor do not require City Commission
approval. However, if the FCWPC recommends charging additional rent for use
of the restroom, City Commission approval would be required for the increased
rent. Commissioner Michael Gongora made a motion to proffer in allowing the
usage of the bathrooms as lang as the tenant escorts the customers to and from
the bathroom after hours and an increase to $6.00 per square foot for Common
Area Maintenance fees of the restroom. Commissioner Jorge Exposito
seconded.
NEW BUSINESS
5. Discussion regarding Red Light Cameras in Miami Beach in light of a
new State Law that goes into effect on July 1, 2013
ACTION
The Committee requested that the City Manager bring back additional
information before a decision is made on addressing the red light cameras.
Police Plans Policy Manager Michael Gruen presented this item.
Police Plans Policy Manager Michael Gruen began by stating the program is
trending. The number of notice of violations has decreased since the inception of
the program, primarily due to the various changes in State law governing red light
cameras. However, since the enactment of the new red light camera legislation in
July 2013, which requires a complete stop before making a right turn, the number
of right turn violations has increased dramatically. Although there are only twa
{2) months of data available, the average number of violations issued per day in
July and August has increased to 4.48 per camera per day from 1.42 in Fiscal
Year 2011/2012 and 1.99 in Fiscal Year 2012/2013 (year to date).Since the
inception of the City's red light camera photo enforcement program in April of
2010, where the program was enforced under a City Ordinance to where the
program is now pursuant to State Statute, there have been several legal
challenges that have led to twa (2) major changes to the program. These major
changes have negatively impacted the City's ability to generate revenue.
Pursuant to the City's Red Light Camera Ordinance, which was repealed on July
1, 2010, the City derived $125 far each notice of violation in addition to late fees.
On July 1, 2010, the Florida Legislature enacted the Mark Wanda II Act, which
essentially made red light camera infractions enforceable only under State law
pursuant to FSS Chapter 316. As part of this change, Notice of Violation fines
increased to $158 per violation, with the State receiving $83 and only $75 going
to the municipalities. This change alone accounted for a significant decline in
revenue. This provision, coupled with the change in criteria from a complete stop
when making a right turn to "careful and prudent manner", now allowed a rolling
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turn. This one change led to a significant decline in the number of Notice of
Violations and subsequently, a decline in total revenue. However, with the latest
change to the law requiring a complete stop before making a right turn on a red
light, revenue has spiked significantly. As of July 2013, net revenue for the
program since its inception is $192,231.87.
Commissioner Michael Gongora inquired as to why the City of Miami Beach is
not making as much revenue as other municipalities indicate they are. Mr. Gruen
stated the selection of intersections that were chosen where limited to only City
streets that might or might not have high traffic volume in that area. City
Manager Jimmy Morales stated if they want to continue the program, he can
bring back some suggestions that take a look at expanding the cameras, keeping
them or removing them. Commissioner Gongora made a motion to accept the
City Manager bringing back additional information before a decision is made on
addressing the red light cameras. Commissioner Jorge Exposito seconded.
6. Discussion to immediately reinstate the Fee Waiver for Sidewalk
Cafes in North Beach
ACTION
The Committee recommended reinstating the fee waiver for sidewalk cafes
in North Beach.
Public Works Director Eric Carpenter presented this item.
Public Works Director Eric Carpenter began by stating the Miami Beach City
Code Chapter 82 authorizes the City to charge restaurants with sidewalk cafes a
$150.00 annual permit fee, plus $20.00 per square foot for the cafe area. The
City does not charge Sidewalk Cafe fees for businesses situated on State Roads
because they were outside its jurisdiction. This created a competitive
disadvantage for sidewalk cafes on City streets in the North Beach area.
Commissioner Jorge Exposito made a motion to reinstate the fee waiver for
sidewalk cafes in North Beach. Commissioner Michael Gongora seconded.
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