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20141119 SM1r915.20r5 MIAMIBEACH City Commission Meeting SUPPLEMENTAL MATERIAL 1 City Hall, Gommission Ghambers, 3rd Floor, 1700 Convention Center Drive November 19,2014 Mayor Philip Levine Vice-Mayor Joy Malakoff Commissioner Michael Grieco Com m issioner Micky Steinberg Commissioner Edward L. Tobin Commissioner Deede Weithorn Commissioner Jonah Wolfson City Manager Jimmy L. Morales City Attorney Raul J. Aguila City Clerk Rafael E. Granado Visft us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings. ATTENTION ALL LOBBYISTS Chapter 2, Article Vll, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the registration of all lobbyists with the City Clerk priorto engaging in any lobbying activitywith the Gity 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. SUPPLEMENTAL AGENDA G7 - Resolutions C7L A Resolution Accepting The Recommendation Of The City Manager To Reject All Proposals Received, Pursuant To Request For Proposal (RFP) No. 2014-091-SW, For lnvestmentAdvisory Services, And Authorizing The Administration To Release An lnvitation To Negotiate (lTN) For lnvestment Advisory Services. ( Finance/Procurement) (Memorandum & Resolution) 1 Supplemental Agenda, November 19, 2014 C7 - Resolutions (Continued) C7M RFQ And RFP General Building Contractor Rehabilitation Services1. A Resolution Accepting The Recommendation Of The City Manager, Pertaining To The Request For Qualifications (RFO) No. 2014-316-JR For General Building Contractor Rehabilitation Services For The City's Housing And Community Services Department; Authorizing The Administration To Negotiate With The Sole Proposer, Delcons lnc.; And Should The Administration Not Be Successful ln Negotiating An Agreement With The Sole Proposer, Authorizing The Administration To lssue A New RFQ; And FurtherAuthorizing The Mayor And City Clerk To Execute An Agreement Upon Successful Negotiations By The Administration. (Housing & Community Services/Procurement) 2. A Resolution Accepting The Recommendation Of The City Manager Pertaining To The Rankings Of Proposals, Pursuant To Request For Proposals (RFP) No. 2014-325-JR, For General Building Contractor Rehabilitation Services And Consulting For The City's Housing And Community Services Department; Authorizing The Administration To Negotiate With The Top-Ranked Proposer, Gecko Group lnc.; And Should The Administration Not Be Successful ln Negotiating An Agreement With The Top-Ranked Proposer, Authorizing The Administration To Negotiate With The Second-Ranked Proposer, Cast Development, LLC;And Should The Administration Not Be Successful ln Negotiating An Agreement With The Second-Ranked Proposer, Authorizing The Administration To lssue A New RFP; And Further Authorizing The Mayor And City Clerk To Execute An Agreement Upon Successful Negotiations By The Administration. ( Housing & Community Services/Procurement) (Memorandum & Resolutions) R2 - Competitive Bid Reports R2A A Resolution Accepting The Recommendation Of The City Manager Providing Two Options ForThe City Commission's Selection And Authorization For The Replacement Or Refurbishment Of 29 Lifeguard Towers: Option 1 - Negotiate With Bidders To ITB 2014-385-YG; Or, Option 2 - Waive Bidding By 5l7th To Refurbish Existing Units, Finding Such Waiver To Be ln The City's Best lnterest. (Capital I mprovement Projects/Procurement) (Memorandum) R5 - Ordinances RsA An Ordinance Amending Chapter 74 Of The Code Of The City Of Miami Beach, Florida, Entitled "Peddlers And Solicitors," By Amending Article l, Entitled "ln General," By Amending Section 74-1, Entitled "Soliciting Business ln Public From Pedestrians," To Prohibit Commercial Solicitation ln Certain Areas; Providing For Repealer, Severability, Codification, And An Effective Date. 10:20 a.m. Second Reading Public Hearinq (Sponsored by Mayor Philip Levine) (Legislative Tracking: City Attorney's Office) (First Reading on September 30,2014 - RsE) (Memorandum & Ordinance) 2 Supplemental Agenda, November 19, 2014 R5 - Ordinances (Continued) RsB An Ordinance Amending Chapter 46 Of The Code Of The City Of Miami Beach, Florida, Entitled "Environment," ByAmending Article lll, Entitled "Litter," ByAmending Division 1, Entitled "Generally," By Amending Section 46-92(a), Entitled "Definitions," By Adding A Definition For The Term "Right-Of- Way," ByAmending Section 46-92(9), Entitled "Prohibition On CommercialHandbill Distribution," By Amending The Regulations And Prohibitions ForThe Distribution Of Commercial Handbills; Providing For Repealer, Severability, Codification, And An Effective Date. 10:25 a.m. Second Readinq Public Hearing (Sponsored by Mayor Philip Levine) (Legislative Tracking: City Attorney's Office) (First Reading on September 30, 2014 - R5F/Referred to NCAC) (Memorandum & Ordinance) 3 THIS PAGE INTENTIONALLY LEFT BLANK 4 COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER TO REJEGT ALL PROPOSALS RECEIVED, PURSUANT TO REQUEST FOR PROPOSAL (RFP) No. 2014-091-SW, FOR INVESTMENT ADVISORY SERVICES, AND AUTHORIZING THE ADMINISTRATION TO SUBSEQUENTLY RELEASE AN TNVTTATTON TO NEGOTTATE (rTN) FOR INVESTMENT ADVISORY SERVICES. Ensure trends are sustainable over the lonq term. Data {Survevs. Environmental etc Item Summary/Recommendation : On May 21,2014, the Mayor and City Commission of the City of Miami Beach, Florida, approved Resolution 2014-28587 (the "Resolution") accepting the recommendation of the City Manager pertaining to the ranking of proposals, pursuant to Request for Proposals (RFP) No. 2014-091-SW for lnvestment Advisory Services and authorizing the Administration to enter into negotiations with the top-ranked firm, First Southwest; and should the Administration not be successful in negotiating an agreement with the top-ranked proposer, authorizing negotiations with the second-ranked proposers (tie), Davidson Fixed lncome Management and Public Trust Advisors, LLC. Following approval of the Resolution by the City Commission, the City's Finance Department attempted to negotiate an agreement with the top-ranked firm, First Southwest, but was unable to come to final agreement. More specifically, the parties were unable to come to mutual agreement with regard to the fees to be paid by the City under the agreement. Prior to initiating negotiations with the second-ranked proposers, it became apparent that the amount of City investments to be managed is expected to increase significantly since the RFP was released, which considerably changes the City's ability to negotiate a cost-effective agreement for investment advisor services. The proposals received pursuant to RFP 2014-091-SW did not consider that the amount of the stated investments to be managed did not reflect the significant capital financing now planned for FY2014115, FY2015l16, and FY2016117. During those years the investment to be managed is expected to surpass one billion dollars. The Administration believes it is important to provide an opportunity for proposers, through a competitive solicitation process, to offer value added services which could reduce City cost, or provide additional services and efficiencies to the City. To that end, the Administration recommends terminating negotiations and rejecting all proposals. Further, the Administration recommends that the scope of services to be included in a future solicitation be reviewed to include the City's current investment reality, as well as incorporate an opportunity for proposers to provide value added services to the City. lnstead of continuing under an RFP process, following the rejection of proposals and termination of the current RFP, the Administration recommends releasing a subsequent lnvitation to Negotiate (lTN), which will provide the City the opportunity to negotiate with multiple firms simultaneously. CITY MANAGER'S RECOMMENDATION After considering and reviewing staffls recommendation, the City Manager recommends that the Mayor and City Commission of the City of Miami Beach, Florida approve the Resolution rejecting all proposals, pursuant to Request for Proposal (RFP) No. 2014-091-SW for lnvestment Advisory Services and authorize the City Manager to release a subsequent lnvitation to Negotiate (lTN) for services following the review and revisions to the scope of services, which shall be part of the lTN. Prior to release of the lTN, the Administration shall provide the City Commission a copy of the ITN through a Letter to Commission (LTC). RECOMMENDATION the Resolution Financial lnformation: N/A Glerk's Office Leoislative T AGENEtjA ITEll/l I)ATE c-7 L-7/-7VV-? Alex Ext # 6641 MIAAAIBEACH 14-091-MF -Advisory 5 r.-. r-.r-- --- City of Miomi Beoch, I 700 Convention Center Drive, Miomi Beoch, Florido 331 39, www.miomibeochfl.gov COMMISSION MEMORANDUM TO: FROM: DATE: Mayor Philip Levine and Members o the City Jimmy L. Morales, City Manager November 19,2014 OF MIAM! BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER TO REJECT ALL PROPOSALS RECEIVED, PURSUANT TO REQUEST FOR PROPOSAL (RFP) No. 2014-091-SW, FOR INVESTMENT ADVISORY SERVIGES, AND AUTHORIZING THE ADMINISTRATION TO SUBSEQUENTLY RELEASE AN INVITATION TO NEGOTTATE (lrN) FOR INVESTMENT ADVISORY SERVICES. ADMINISTRATION REGOMM ENDATION Adopt the Resolution. BACKGROUND The City requires the services of an investment advisor to manage and direct the City's investments. The investment advisor is to provide advice on the investment of excess funds in accordance with the City's investment objectives as set forth in City of Miami Beach's lnvestment Policy. The key objectives of the City's investment policy are safety of capital, sufficient liquidity to meet requirements and attaining market-average rates of return. Excess funds are defined as funds not required to meeting short term expenditures of the City. Currently, funds available for investment consist of approximately $SZZ million which include: $346 million from operating funds, $103 million from various bond proceeds, and $73 million from the Miami Beach Redevelopment Agency (RDA). The City expects its investment advisor to be highly experienced, a leader and innovator in the management of investments, and able to provide comprehensive investment advisory services. The firm selected as the investment advisor and its affiliates will be restricted from selling to the City, or buying from the City, any securities to or from that firm's own inventory or account. The investment advisor will also be restricted from placing into the City's portfolio any securities for which it, or an affiliate, is the issuer. lnvestment advisors will not provide custodial services or security safekeeping. All City investments, except for swap agreements must be held in an independent custodial account. 6 2 November 19,2014 City Commission Agenda RFP 2014-091-SW for lnvestment Advisor Services RFP PROCESS To seek the required services, the City developed Request for Proposals (the 'RFP') No. 2014-091-SW for an lnvestment Advisory Services. On January 15, 2014, the Mayor and City Commission approved the issuance of the RFP. The RFP was issued on February 6, 2014, with an opening date of March 25, 2014. The solicitation was advertised and notices were released to prospective proposers. The RFP resulted in proposals from the following six (6) firms: 1. Cutwater Asset Management 2. Davidson Fixed lncome Management 3. First Southwest 4. PFM Asset Management LLC 5. Public Trust Advisors, LLC 6. Russell lnvestments On April 3, 2014, the City Manager via Letter to Commission (LTC) No. 111-2014 appointed an Evaluation Committee (the "Committee") consisting of the following individuals: . Jim Goldsmith, Resident ". Sanford Horwitz, Resident. Georgie Echert, Finance Department, City of Miami Beach. James Sutter, lnternalAudit, City of Miami Beacho Julie Santamaria, RBC Capital Markets * Jim Goldsmith was unable to participate due to prior commitments he could not reschedule. The Evaluation Committee (the "Committee") convened on April 17, 2014, to consider proposals received and interview the proposers. The Committee was provided with information relative to the City's Cone of Silence and Government in the Sunshine Law, general information on the scope of services, reference responses, and additional pertinent information from all responsive proposers. After proposer's presentations and interviews, the Committee discussed the proposers' qualifications, experience, and competence, and further scored the proposers accordingly. The Committee was instructed to score each proposal pursuant to the evaluation criteria established in the RFP. The final rankings are as follows: Georgie Echert Sanford Horwitz Julie Santamaria James Sutter Low Aggregate Totals / Rank First Southwest 96 (1)84 (1)90 (1)93 (1)4fi\ Davidson Fixed lncome Manaqement 82 (3)81 (2)78 (3)85 (2)10 (2) tie Public Trust Advisors, LLC 86 (2)75 (3)84 Q\83 (3)10 (2) tie PFM Asset Manaoement LLC 79 @)66 (4)71 A\80 (4)16 (4) Cutwater Asset Manaoement 78 (5)66 (4)68 (5)77 $\19 (5) Russell lnvestments 62 (6)40 (6)56 (6)s9 (6)(6)24 7 3 November 19,2014 City Commission Agenda RFP 2014-091-SW for Investment Advisor Services On May 21,2014, the Mayor and City Commission of the City of Miami Beach, Florida, approved Resolution 2014-28587 (the "Resolution") accepting the recommendation of the City Manager pertaining to the ranking of proposals, pursuant to Request for Proposals (RFP) No. 2014-091-SW for lnvestment Advisory Services and authorizing the Administration to enter into negotiations with the top-ranked firm, First Southwest; and should the Administration not be successful in negotiating an agreement with the top-ranked proposer, authorizing negotiations with the second-ranked proposers (tie), Davidson Fixed lncome Management and Public Trust Advisors, LLC. Following approval of the Resolution by the City Commission, the City's Finance Department attempted to negotiate an agreement with the top-ranked firm, First Southwest, but was unable to come to final agreement. More specifically, the parties were unable to come to mutual agreement with regard to the fees to be paid by the City under the agreement. Prior to initiating negotiations with the second-ranked proposers, it became apparent that the amount of City investments to be managed is expected to increase significantly since the RFP was released, which considerably changes the City's ability to negotiate a cost-effective agreement for investment advisor services. The proposals received pursuant to RFP 2014-091-SW did not consider that the amount of the stated investments to be managed did not reflect the significant capitalfinancing now planned for FY2014115,FY2015/16, and FY2016/17. During those years the investment to be managed is expected to surpass one billion dollars. The Administration believes it is important to provide an opportunity for proposers, through a competitive solicitation process, to offer value added services which could reduce City cost, or provide additional services and efficiencies to the City. To that end, the Administration recommends terminating negotiations and rejecting all proposals. Further, the Administration recommends that the scope of services to be included in a future solicitation be reviewed to include the City's current investment reality, as well as incorporate an opportunity for proposers to provide value added services to the City. lnstead of continuing under an RFP process, following the rejection of proposals and termination of the current RFP, the Administration recommends releasing a subsequent lnvitation to Negotiate (lTN), which will provide the City the opportunity to negotiate with multiple firms simultaneously. MANAGER'S DUE DILIGENCE & RECOMMENDATION After considering and reviewing staff's recommendation, the City Manager recommends that the Mayor and City Commission of the City of Miami Beach, Florida approve the Resolution rejecting all proposals, pursuant to Request for Proposal (RFP) No. 2014- 091-SW for lnvestment Advisory Services and authorize the City Manager to release a subsequent lnvitation to Negotiate (lTN) for services following the review and revisions to the scope of services, which shall be part of the lTN. Prior to release of the lTN, the Administration will provide the City Commission a copy of the ITN through a Letter to Commission (LTC). CONCLUSION The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida approve the Resolution rejecting all proposals received, pursuant to Request for Proposal (RFP) No. 2014-091-SW for lnvestment Advisory Services and authorize the City Manager to release a subsequent lnvitation to Negotiate (lTN) for services following the review and revisions to the scope of services, which shall be part of the lTN. JLM/MT/PDW/AD T:\AGENDA\2014\Novemberlg\Procurement\RFP 2014-091-LR lnvestment Advisory Services - Reject - MEMO.doc 8 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER TO REJECT ALL PROPOSALS RECEIVED, PURSUANT TO REQUEST FOR PROPOSAL (RFP) NO. 2014-091-SW, FOR INVESTMENT ADVISORY SERVICES, AND AUTHORIZING THE ADMINISTRATION TO RELEASE AN TNVTTATION TO NEGOTIATE (lTN) FOR INVESTMENT ADVISORY SERVICES. WHEREAS, on May 21,2014, the Mayor and City Commission approved Resolution No. 2014-28587 (the "Resolution") accepting the recommendation of the City Manager pertaining to the ranking of proposals, pursuant to Request for Proposals (RFP) No. 2014-091-SW for lnvestment Advisory Services, and authorized the Administration to enter into negotiations with the top-ranked proposer, First Southwest and, should the Administration not be successful in negotiating an agreement with the top-ranked proposer, authorized negotiations with the tied second-ranked proposers, Davidson Fixed lncome Management and Public Trust Advisors, LLC; and WHEREAS, following approval of the Resolution, the City's Finance Department attempted to negotiate an agreement with the top-ranked proposer, First Southwest; and WHEREAS, the parties were unable to come to mutual agreement with regard to the fees to be paid by the City under the agreement; and WHEREAS, p rior to initiating negotiations with the second-ranked proposers, it became apparent that since the issuance of the RFP the amount of City investments to be managed is expected to increase significantly, and WHEREAS, this would significantly affect the City's ability to negotiate a cost-effective agreement for investment advisor services under the current RFP; and WHEREAS, the proposals received pursuant to the RFP did not consider that the amount of the stated investments to be managed did not reflect the significant capital financing now planned for FY2014115, FY2O15/16, and FY2016117, which is expected to surpass one billion dollars; and WHEREAS, the Administration also believes it is important to provide an opportunity for proposers, through a competitive solicitation process, to offer value added services which could reduce City cost, or provide additional services and efficiencies to the City given the now planned investments for FY201 4115, FY2015116, and FY201 6117; and WHEREAS, to that end, the Administration recommends terminating negotiations and rejecting all proposals under the current RFP process and allow the Administration to revise the scope of services to be included in a future solicitation to include the City's planned investments, as well as incorporate an opportunity for proposers to provide value added services to the City; and WHEREAS, following the rejection of proposals and termination of the current RFP process, the Administration recommends releasing a subsequent lnvitation to Negotiate (lTN), which will provide the City the opportunity to negotiate with multiple firms simultaneously. 9 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 accept the recommendation of the City Manager to reject all proposals received, pursuant to Request For Proposal (RFP) No. 2014-091-SW, for investment advisory services, and authorize the Administration to release an lnvitation To Negotiate (lTN) for investment advisory services. PASSED AND ADOPTED this 19th day of November,2014. ATTEST: PHILIP LEVINE, MAYOR RAFAEL E. GRANADO, CITY CLERK T:\AGENDA\2O14\November\Procurement\RFP 2014-091-MF - lnvestment Advisory Services Reject - RESOLUTION.doc APPROVED AS TO FORM & ISNGUAGE & FOR EXECUTION 10 COMMISSION ITEM SUMMARY Condensed Title: RESOLUTIONS OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE REGOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKINGS OF PROPOSALS, PURSUANT TO REQUEST FOR QUALIFICATIONS NO. 2014-316-JR, FOR GENERAL BUILDING CoNTRACTOR REHABILITATION SERVTCES AND REQUEST FOR PROPOSAL (RFP) NO. 2014-32s-JR, FOR GENERAL BUILDING CONTRACTOR REHABILITATION SERVICES AND CONSULTING FOR THE CITY'S HOUSING AND COMMUNITY SERVICE DEPARTMENT. lmprove Building/Development-Related Processes from Single-Family Residences to the Large Development Data (Surveys, Environmental Scan, etc: N/A Item Summary/Recommendation : The State Housing lnitiatives Partnership program (SHIP), administered through the Florida Housing Finance Corporation (FHFC), was established in 1992 by the William E. Sadowski Affordable Housing Act to stimulate the production of affordable housing statewide. SHIP program funds are derived from documentary stamp levies on real estate transactions, and held in the SHIP Program Trust Fund. Annually, FHFC allocates SHIP program funds among participating jurisdictions on a formula basis. SHIP program funds serve to increase access to affordable housing for income-eligible participants whose income does not exceed 120o/o of the Area Median lncome (AMl). On July 30,2014, the City Commission approved to issue the Request for Qualifications (RFQ) No. 2014-316-JR and Request for Proposal (RFP) No. 2014-325-JR. On July 31,2014, the RFQ and RFP were issued. A voluntary pre- proposal conference to provide information to the proposers submitting a response was held on August 5,2014 and August 6,2014 respectively. RFQ and RFP responses were due and received on August 20,2014. The City received one proposalfor RFQ 2014-316-JR and a total of two (2) proposals for RFP 2014-325-JR. On September8,2014, the City Managervia Letterto Commission (LTC) Nos. 314-2014 and 315-2014, appointed an Evaluation Committee (the "Committee"). The Committee convened on October 8, 2014 and October 9, 2014 respectively were provided an overview of the project, information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law. The Committee also provided general information on the scope of services, references, and a copy of each proposal. Additionally, the Committee engaged in a question and answer session after the presentation of each proposer. RECOMMENDATION 1. After reviewing the submission and the results of the evaluation process, the City Manager recommends that the Administration be authorized to enter into negotiations and execute an agreement with Delcons, lnc. pursuant to Request for Qualifications No. 2014-316-JR, General Building Contractor Rehabilitation Services (the "RFa"). Should negotiations fail with the sole proposer, the City Manager recommend that the administration be authorized to issue a new RFQ. 2. And further, the City Manager recommends that Administration be authorized to enter into negotiations and execute an agreementwith Gecko Group, lnc., pursuantto Requestfor Proposal No.2014-325-JR, General Building Contractor Rehabilitation Services Consultant (the "RFP"); and should the Administration not be successful in negotiating an agreement with the top-ranked proposer, authorizing negotiations with the second-ranked proposer, Cast Development LLC; and further authorize the City Manager to execute an Agreement upon conclusion of successful negotiations by the Administration. ADOPT THE RESOLUTION Financial Information : Source of Funds: Amount Account ,l $ 44,933 152-8000-331580 State of Florida SHIP Program Total $ 44,933 Financial lmpact Summary: T:\AGENDA\20 1 4\NovembeAProcurement\RFQ-20 1 4-31 6-JR & RFP 14-325-JR General Bu Services - Summary.doc AGENDA "'U C7 MMIAMIBEACHDAnE //-/?-/y11 MIAMI BEACH City of Miomi Beoch, 1700 Convention Center Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov COMMISS MEMORANDUM TO: Mayor Philip Levine and Members FROM: Jimmy L. Morales, City Manager DATE: November 19,2014 the City SUBJECT: RESOLUTIONS OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKINGS OF PROPOSALS, PURSUANT TO REQUEST FOR QUALIFICATIONS NO. 2014.316.JR, FOR GENERAL BUILDING CONTRACTOR REHABILITATION SERVICES AND REQUEST FOR PROPOSAL (RFP) NO. 2014-325-JR, FOR GENERAL BUtLDtNG CONTRACTOR REHABILITATION SERVICES AND CONSULTING FOR THE CITY'S HOUSING AND COMMUNITY SERVICE DEPARTMENT. ADMI NISTRATION RECOMMEN DATION Adopt the Resolution. KEY INTENDED OUTCOME SUPPORTED lmprove Building/Development-Related Processes from Single-Family Residences to the Large Development Projects. FUNDING Funding for the State Housing lnitiative Partnership (SHIP) program is sponsored by the State of Florida and the William E. Sadowski Affordable Housing Act. Currently, the City has $44,933 in FY09/10 funds (account code 152-8000-331580) available for immediate use. Once the FY09/10 funds are drawn, the City can access an additional $451,459 in combined funds from subsequent fiscal years. These funds are intended for the development and retention of affordable housing. BACKGROUND The State Housing lnitiatives Partnership program (SHIP), administered through the Florida Housing Finance Corporation (FHFC), was established in 1992 by the William E. Sadowski Affordable Housing Act to stimulate the production of affordable housing statewide. SHIP program funds are derived from documentary stamp levies on real estate transactions, and held in the SHIP Program Trust Fund. Annually, FHFC allocates SHIP program funds among participating jurisdictions on a formula basis. SHIP program funds serye to increase access to affordable housing for income-eligible participants whose income does not exceed 12Oo/o of the Area Median lncome (AMl). Communities that receive SHIP funds, including the City, are required to produce and file with the State of Florida a Local Housing Assistance Plan (LHAP) which governs each community's use of SHIP funds. A new LHAP must be filed every three years. The LHAP delineates the strategies that will be employed to increase the availability of affordable housing for income- eligible residents within the jurisdiction. One of the City's affordable housing strategies is the repair and rehabilitation of qualifying owner-occupied homes including condominium units. These repairs may include: energy 12 efficiency modifications, ADA modifications to enable aging in place, remediation of Code Compliance violations, and general repairs that preserve housing. Eligible homeowners must be income-eligible (with income not exceeding 120% Area Median lncome (AMl) and agree to maintain the improved property as their primary residence for fifteen (15) years. ln the event that an assisted property is sold before the expiration of the affordability period, the assisted homeowner must repay the City for funds received. ln essence, the City awards SHIP funds as forgivable loans upon expiration of the affordability period. The City safeguards awarded funds by placing a restrictive covenant on the assisted property that is released upon either repayment of provided funds or the expiration of the affordability period, whichever comes first. Until recently, the homeowner rehabilitation strategy was managed by Miami Beach Community Development Corporation (MBCDC). When it was determined that MBCDC was no longer able to effectively administer the program, the City assumed this role. ln order to effectuate the homeowner-occupied rehabilitation strategy, the City must identify a third party verifier or Project Manager/Consultant to inspect properties, draft the specifications of funded work scope, and conduct progress and final inspections of approved work. ln addition, the City must identify a pool of qualified general contractors who can be contracted by homeowners to complete the repairs and rehabilitation work approved by the City within specified timeframes. To secure a qualified Project Manager/Consultant, on July 30,2014, the City Commission authorized the issuance of RFQ No. 2014-316-JR for General Building Contractor Rehabilitation Services. To establish a pool of General Contractors (GC) that can be contracted directly by residents approved for SHIP funds to provide repairs and rehabilitation work needed at funded residential properties for a term of three (3) years with two (2) one (1) year options to renew at the discretion of the City, on July 30, 2014, the City Commission authorized the issuance of RFP No. 2014-325-JR for General Building Contractor Rehabilitation Services and Consulting. 1. RFQ 2014.316.JR PROCESS On July 30, 2014, the City Commission approved to issue the Request for Qualifications (RFO) No. 2014-316-JR, for General Building Contractor Rehabilitation Services. On July 31,2014, the RFQ was issued. A voluntary pre-proposal conference to provide information to the proposers submitting a response was held on August 6,2014. RFQ responses were due and received on August 20,2014. The City received one (1) proposal from Delcons, lnc. On September 8, 2014, the City Manager via Letter to Commission (LTC) No. 315-2014, appointed an Evaluation Committee (the "Committee"), consisting of the following individuals: . Richard Bowman, Housing Specialist, Department of Housing and Community Services, City of Miami Beach. Maria Cerna, Division Director, ClP, City of Miami Beach. Mariano Fernandez, Director, Building Department, City of Miami Beach The following member was considered as an alternate; Antonio Gonzalez, Building Operations Manager, Building Department, City of Miami Beach. The Committee convened on October 9, 2014 and was provided an overview of the project, information relative.to the City's Cone of Silence Ordinance and the Government Sunshine Law. The Committee also provided general information on the scope of services, references, and a copy of the sole proposal. Additionally, the Committee engaged in a question and answer session after the presentation of the sole proposer. 2. RFP 2014.325-JR PROCESS On July 30, 2014, the City Commission approved to issue the Request for Proposal (RFP) No. 2014-325-JR, for General Building Contractor Rehabilitation Services and Consulting. On July 31,2014, the RFP was issued. A voluntary pre-proposal conference to provide information to the proposers submitting a response was held on August 5, 2014. RFQ responses were due and received on August 20,2014. The City received two (2) proposals form Gecko Group, lnc., 13 and Cast Development, LLC. On September 8, 2014, the City Manager via Letter to Commission (LTC) No. 314-2014, appointed an Evaluation Committee (the "Committee"), consisting of the following individuals: . Richard Bowman, Housing Specialist, Department of Housing and Community Services, City of Miami Beacho Maria Cerna, Division Director, ClP, City of Miami Beacho Mariano Fernandez, Director, Building Department, City of Miami Beach The following member was considered as an alternate; Antonio Gonzalez, Building Operations Manager, Building Department, City of Miami Beach. The Committee convened on October 8, 2014 and was provided an overview of the project, information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law. The Committee also provided general information on the scope of services, references, and a copy of the sole proposal. Additionally, the Committee engaged in a question and answer session after the presentation of the sole proposer. The results of the evaluation committee ranking is as follows: 1. Gecko Group, lnc. 2. Cast Development, LLC MANAGER'S DUE DILIGENCE & RECOMMENDATION 1. After reviewing the submission and the results of the evaluation process, the City Manager recommends that the Administration be authorized to enter into negotiations and execute an agreement with Delcons, lnc. pursuant to Request for Qualifications No. 2014-316-JR, General Building Contractor Rehabilitation Services (the "RFQ"). Should negotiations fail with the sole proposer, the City Manager recommend that the administration be authorized to issue a new RFQ. 2. And further, the City Manager recommends that Administration be authorized to enter into negotiations and execute an agreement with Gecko Group, lnc., pursuant to Request for Proposal No. 2014-325-JR, General Building Contractor Rehabilitation Services Consultant (the "RFP"); and should the Administration not be successful in negotiating an agreement with the top-ranked proposer, authorizing negotiations with the second-ranked proposer, Cast Development LLC; and further authorize the City Manager to execute an Agreement upon conclusion of successful negotiations by the Administration. CONCLUSION The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida approve the City Manager's recommendation pertaining to the proposals received, pursuant to RFQ No.2014-316-JR, for General Building Contractor Rehabilitation Services and RFP No. 2014-325-JR for General Building Contractor Rehabilitation Services and Consulting. MRYAD/MT/JLM/MLR T:\AGENDA\2O14\November\Procurement\RFQ-2014-316-JR & RFP 2014-325-JR General Building Contractor Rehab Services - Memo FINAL rev. 1 'l 131 4 JR.doc 14 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAM! BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, PERTAINING TO THE REQUEST FOR QUALIFICATIONS (RFO) NO. 2014.316-JR FOR GENERAL BUILDING CONTRACTOR REHABILITATION SERVICES FOR THE CITY'S HOUSING AND COMMUNITY SERVICES DEPARTMENT; AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH THE SOLE PROPOSER, DELCONS lNC.; AND SHOULD THE ADMINISTRATION NOT BE SUCGESSFUL IN NEGOTIATING AN AGREEMENT WITH THE SOLE PROPOSER, AUTHORIZING THE ADMINISTRATION TO ISSUE A NEw RFQ; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, Request for Qualification (RFQ) No. 2014-316-JR for General Building Contractor Rehabilitation Services (the RFO) was issued on July 31, 2014, with an opening date of August 20,2014; and WHEREAS, a voluntary pre-proposal meeting was held on Wednesday, August 6,2014 for the RFQ; and WHEREAS, the City received one proposalfor the RFQ; and WHEREAS, on September 8, 2014, the City Manager via Letter to Commission (LTC) No. 315-2014, appointed an Evaluation Committee (the "Committee"), consisting of the following individuals: o Richard Bowman, Housing Specialist, Department of Housing and Community Services, City of Miami Beach. Maria Cerna, Division Director, CIP Department, City of Miami Beacho Mariano Fernandez, Director, Building Department, City of Miami Beach The following member was considered as an alternate; Antonio Gonzalez, Building Operations Manager, Building Department, City of Miami Beach. WHEREAS, the Committee convened on October 9, 2014 for the proposal received pursuant to the RFQ; and WHEREAS, the Committee was provided an overview of the project; information relative to the City's Cone of Silence Ordinance and the Sunshine Law; general information on the scope of services, references, and a copy of each proposal; and engaged in a question and answer session after the presentation of the proposer; and WHEREAS, the Committee was instructed to score the proposal pursuant to the evaluation criteria established in the RFQ; and WHEREAS, the Committee scored the sole proposer for the RFQ, Delcons lnc., and 15 WHEREAS, after reviewing all the submissions and the Evaluation Committee's scores, the City Manager exercised his due diligence and is recommending that the Administration be authorized to negotiate with the sole proposer, Delcons lnc.; and should the Administration not be successful in negotiating an agreement with the sole proposer, the City Manager recommends that the Administration be authorized to issue a new RFQ. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the City Manager, pursuant to Request for Qualifications (RFQ) No. 2014-316-JR for General Building Contractor Rehabilitation Services for the City's Housing and Community Services Department; authorize the Administration to negotiate with the sole proposer, Delcons lnc.; and should the Administration not be successful in negotiating an agreement with the sole proposer, authorize the Administration to issue a new RFQ; and further authorize the Mayor and City Clerk to execute an agreement upon successful negotiations by the Administration. PASSED AND ADOPTED this day of 2014. ATTEST: Rafael E. Granado, City Clerk Philip Levine, Mayor T;\AGENDA\2014\November\ProcuremenI\RFQ-2o'14-316-JR General Building Contractor Rehab SeMces - Resolution.doc ,8["[8Y:R8ilB' & FOR EXECUTIoN) Q0{- '!Jffi,ffi@1 Ee ft 16 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY GOMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKINGS OF PROPOSALS, PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 2014-325-JR, FOR GENERAL BUILDING CONTRACTOR REHABILITATION SERVICES AND CONSULTING FOR THE CITY'S HOUSING AND COMMUNITY SERVICES DEPARTMENT; AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH THE TOP-RANKED PROPOSER, GECKO GROUP lNC.; AND SHOULD THE ADMINISTRATION NOT BE SUCCESSFUL !N NEGOTIATING AN AGREEMENT WITH THE TOP.RANKED PROPOSER, AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH THE SECOND.RANKED PROPOSER, CAST DEVELOPMENT, LLC; AND SHOULD THE ADMINISTRATION NOT BE SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH THE SECOND.RANKED PROPOSER, AUTHORIZING THE ADMINISTRATION TO ISSUE A NEW RFP; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, Request for Proposals (RFP) No. 2014-325-JR (the RFP) for General Building Contractor Rehabilitation Serviceswas issued on July 31,2014, with an opening date of August 20,2014; and WHEREAS, a voluntary pre-proposal meeting was held on Tuesday, August 5,2014for the RFP; and WHEREAS, the City received two (2) proposals for the RFP; and WHEREAS, on September 8, 2014, the City Manager via Letter to Commission (LTC) No. 31 4-2014, appointed an Evaluation Committee (the "Committee"), consisting of the following individuals: . Richard Bowman, Housing Specialist, Department of Housing and Community Services, City of Miami Beach. Maria Cerna, Division Director, CIP Department, City of Miami Beach. Mariano Fernandez, Director, Building Department, City of Miami Beach The following member was considered as an alternate; Antonio Gonzalez, Buildlng Operations Manager, Building Department, City of Miami Beach; and WHEREAS, the Committee convened on October 8 2014 to consider the proposals received pursuant to the RFP; and WHEREAS, the Committee was provided an overview of the project; information relative to the City's Cone of Silence Ordinance and the Sunshine Law; general information on the scope of services, references, and a copy of each proposal; and engaged in a question and answer session after the presentation of each proposer; and WHEREAS, the Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP; and WHEREAS, the Committee's ranking for the RFP was as follows: Gecko Group lnc., top ranked; Cast Development, LLC, second highest ranked; and 17 WHEREAS, after reviewing all the submissions and the Evaluation Committee's rankings, the City Manager exercised his due diligence and is recommending that the Administration be authorized to negotiate with the top-ranked proposer, Gecko Group lnc.; and should the Administration not be successful in negotiating an agreement with the top-ranked proposer, the City Manager recommends that the Administration be authorized to negotiate with the second ranked proposer, Cast Development, LLC; and should the Administration not be successful in negotiating an agreement with the second-ranked proposer, the City Manager recommends that the Administration be authorized to issue a new RFP. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the City Manager pertaining to the ranking of proposals, pursuant to Request for Proposals (RFP) No. 2014-325-JR, for General Building Contractor Rehabilitation Services and Consulting for the City's Housing and Community Services Department; authorize the Administration to negotiate with the top ranked proposer, Gecko Group lnc.; and should the Administration not be successful in negotiating an agreement with the top-ranked proposer, authorize the Administration to negotiate with the second-ranked proposer, Cast Development, LLC; and should the Administration not be successful in negotiating an agreement with the second-ranked proposer, authorize the Administration to issue a new RFP; and further authorize the Mayor and City Clerk to execute an agreement upon successful negotiations by the Administration. PASSED AND ADOPTED this day of 2014. ATTEST: Rafael E. Granado, City Clerk Philip Levine, Mayor T:\AGENDA\2014\November\Procurement\RFP 2014-325-JR General Building Contractor Rehab Seruices - Resolution.doc APPROVED AS TO FORM & LANGUAGE r t(tz(t+ 5EE- (- CityAtlomey 18 COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PROVIDING TWO OPTIONS FOR THE CITY COMMISSION'S SELECTION AND AUTHORIZATION FOR THE REPLACEMENT OR REFURBISHMENT OF 29 LIFEGUARD TOWERS: OPTION I - NEGOTIATE WITH BIDDERS TO ITB 2014-385-YG; OR, OPTION 2 -WAIVE BIDDING BY 5/7S TO REFURBISH EXISTING UNITS, FINDING SUCH WAIVER TO BE IN THE CITY'S BEST INTEREST. Maximize the Miami Beach brand as a world class destination. Data (Surveys, Environmental Scan, etc: N/A Item Summarv/Recommendation: Given that the City has commenced its centennial celebrations, the Administration is seeking to replace current lifeguard towers with the new models designed by William Lane. The scope of work for this project will entail the new construction of 29 lifeguard towers for the City of Miami Beach from South Pointe Park Pierto 86th Street, replacing the existing 29 lifeguard towers. Additionally, 26 lifeguard towers must be demolished and removed from the site. The City will be keeping three (3) lifeguards towers, which are located at: the ends of 1Oth Street (Jetson Tower), 12th Street, and South Point Pier. The new lifeguard towers must be installed at the same location where the existing ones are currently located. To seek a contractorforthe project, on July 24,2014, the City issued lnvitation to Bid (lTB) No.2014-305-YG forthe desired scope. However, on September 17,2014, the City Commission approved the City Manage/s recommendation to reject all bids, pursuant to ITB 2014-305-YG, because the apparent low bidderwas deemed non-responsive and the second lowest bidder's price of $3,598,566 exceeded the project estimate of costs. The estimated construction budget for the work identified in the ITB was $900,000; although, $1.49 million is available for the project. Prior to issuing a subsequent lTB, the Administration attempted to address bidders' concerns which included: the need for the City to provide staging areas adjacent to the points of installation; the reduction of the amount of liquidated damages; and reduction of the quantity of units to be delivered by the March 2015 date. Prior to the issuance of the second lTB, the City secured four (4) staging areas, evenly spaced and strategically placed along the beach adjacent to the points of installation, the liquidated damages were reduced from $1,900 to $1,000 per day, and the delivery schedule was modified to require delivery of the first 15 lifeguard towers by March 2015, with the remainder to be delivered by May 2015. On September24,2014,lnvitation to Bid (lTB) No. 2014-385-YG was re-issued with the aforementioned revisions. On October 29,2014, the ITB resulted in the Both bids received once again significantly exceed the available funds for the project. MANAGER'S DUE DILIGENCE & RECOMMENDATION After reviewing the bids received and considering the available project funds, as well as the fact that the City has twice attempted to secure a contractor through an lTB, the City Manager recommends that the Mayor and City Commission approve a resolution authorizing the City Manager to proceed with one (1) of the following options: Option 1 - Negotiate with Bidder(s) Pursuant to Section 2-367(c) of the City Code. Option 2 - Waive Bidding by 5/7s to Refurbish Existing Units. Both options are detailed in the attached memorandum. RECOMMENDATION The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida approve one of the options recommended bv the for the Towers Advisorv Board Recommendation: Financial !nformation: Source of Funds: Amount Account 1 N/A N/AII2 OBPI Total Financial lmoact Summarv: Alex 6641 AGENDA 'Y'* 82 AAAIAMITTACHD^18 n'lqlLl19 MIAMIBEACH City of Miomi Beoch, I 200 Convention Center Drive, Miomi Beoch, Florido 33I 39, www.miomibeochfl.gov COMMISSION MEMORANDUM TO:Mayor Philip Levine and Members City FRoM: Jimmy L. Morales, City Manager DATE: November 19,2014 SUBIECT: A RESOLUTION OF THE MA AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PROVIDTNG TWO OPTIONS FOR THE CITY COMMISSION'S SELECTION AND AUTHORIZATION FOR THE REPLACEMENT OR REFURBISHMENT OF 29 LIFEGUARD TOWERS: OPTION 1 - NEGOTIATE WITH BIDDERS TO ITB 2014-385-YG; OR, OPTION 2 - WAIVE BIDDING BY 5/7S TO REFURBISH EXISTING UNITS, FINDING SUCH WAIVER TO BE IN THE CITY'S BEST INTEREST. ADMI NISTRATION RECOMM ENDATION Adopt the Resolution. KEY INTENDED OUTCOME SUPPORTED Maximize the Miami Beach brand as a world class destination. BACKGROUND Miami Beach is known internationally for its unique and iconic lifeguard towers designs. However, these towers are in need of replacement and the Administration desires to complete the replacement by the City's centennial celebration. The proposed project replaces the existing 29 lifeguard towers located citywide on the beachfront from South Pointe Park Pier to 86TH Street. The new lifeguard towers will feature functionally and aesthetically upgraded designs. This project was adopted as part of the Capital Budget Amendment No. 4 of the Fiscal Year 201312014. ln 2006, the City opted to internally undertake the construction of 22 lifeguard towers, instead of purchasing these from a contractor, as a result of a need for expediency, as well as to contain costs while providing a durable product. At that time, City's estimate of costs for constructing lifeguard towers internally with Property Management personnel was approximately $25,000 per tower (not including labor costs) and was achievable through the creation of a standardized mass production line or process. The Property Management Division of the Public Works Department proceeded with the construction of the new ocean lifeguard towers to replace those damaged or in need of replacement due to wear and tear and deemed unusable. At the time, the principal concern was the rapid construction of sturdy and functional lifeguard towers. 20 Commission Memorandum - ITB-2014-385-YG Lifeguard Towers Replacement Project November 19,2014 Page2 Following the deployment of the 22lifeguard towers constructed by the City, the Administration began receiving community feedback regarding the designs of the lifeguard towers. At that time, the communig was expressing a desire that the lifeguard tower designs be updated. William Lane, one of the architects of the original designs, offered to redesign the towers at no cost to the City. Once the redesigns were completed, in 2007 il was estimated that the newly designed lifeguard towers would cost approximately $45,000 per tower (not including labor costs). lt was determined that the custom built and iconic designs of the proposed lifeguard towers are more time consuming to build than the mass produced stands and, as a result, economies of scale achievable in mass production are not realized. As a result, the construction of the newly designed towers was delayed. Given that the City has commenced its centennial celebrations, the Administration is seeking to replace current lifeguard towers with the new models designed by William Lane. The scope of work for this project will entail the new construction of 29 lifeguard towers for the City of Miami Beach from South Pointe Park Pier to 86th Street, replacing the existing 29 lifeguard towers. Additionally, 26 lifeguard towers must be demolished and removed from the site. The City will be keeping three (3) lifeguards towers, which are located at: the ends of 1Oth Street (Jetson Tower), 12th Street, and South Point Pier. The new lifeguard towers must be installed at the same location where the existing ones are currently located. To seek a contractor for the project, on July 24, 2014, the City issued lnvitation to Bid (lTB) No. 2014-305-YG for the desired scope. However, on September 17,2014, the City Commission approved the City Manager's recommendation to reject all bids, pursuant to ITB 2014-305-YG, because the apparent low bidder was deemed non-responsive and the second lowest bidder's price of $3,598,566 exceeded the project estimate of costs. The estimated construction budget for the work identified in the ITB was $900,000; although, $1.49 million is available for the project. Prior to issuing a subsequent lTB, the Administration attempted to address bidders' concerns which included: the need for the City to provide staging areas adjacent to the points of installation; the reduction of the amount of liquidated damages; and reduction of the quantity of units to be delivered by the March 2015 date. Priorto the issuance of the second lTB, the City secured four (4) staging areas, evenly spaced and strategically placed along the beach adjacent to the points of installation, the liquidated damages were reduced from $1,900 to $1,000 per day, and the delivery schedule was modified to require delivery of the first 15 lifeguard towers by March 2015, with the remainder to be delivered by May 2015. ITB PROCESS On September 24, 2014, lnvitation to Bid (lTB) No. 2014-385-YG was re-issued with the aforementioned revisions. On October 29,2014, the ITB resulted in the following two bids: ABC Construction $3.010.854.00 AARYA Construction & Desion $3,124,845.15 21 Commission Memorandum - ITB-2014-385-YG Lifeguard Towers Replacement Project November 19,2014 Page 3 Therefore, both bids received once again significantly exceed the available funds for the project. MANAGER'S DUE DILIGENCE & RECOMMENDATION After reviewing the bids received and considering the available project funds, as well as the fact that the City has twice attempted to secure a contractor through an lTB, the City Manager recommends that the Mayor and City Commission approve a resolution authorizing the City Manager to proceed with one (1) of the following options: Option 1 - Negotiate with Bidder(s) Pursuant to Section 2-367(c) of the Gity Code. This option will allow the City Manager to approve and execute an Agreement where the Administration has negotiated a mutually agreeable agreement (based primarily on schedule and costs) with the lowest and responsive, responsible bidder to ITB 2014-385- YG; and, if the Administration is unable to successfully negotiate an agreement with the lowest bidder, the City Manager may terminate negotiations with such bidder and direct the Administration to commence negotiations with the second lowest and responsive, responsible bidder to the lTB. Any resulting agreement pursuant to the options denoted above will be provided to the City Commission via Letter to Commission (LTC). Option 2 - Waive Bidding by 5/7s to Refurbish Existing Units. This option allows the City Manager to direct staff to secure contractor(s) to refurbish all 29 existing towers in time for the March, 2015, centennial celebrations within the available project budget. Pursuant to Section 255, Florida Statutes, if the City decides to refurbish the existing lifeguard towers, and providing that the total cost of refurbishment is $300,000 or less, the City Commission may waive the competitive bidding requirements, by a 5l7s vote, which would allow the Administration to secure the services of a contractor(s) to complete the refurbishment. ln an effort to supplement the available budget, the City may explore the possibilities of selling or auctioning the remaining 26 lifeguard towers in their present condition. CONCLUSION The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida approve one of the options recommended by the City Manager for the Lifeg ugr$ Towers Replacement Project. rurltlffirMJ/DM/AD/YG T:\AGENDA\2014\November\Procurement\lTB-2014-385-YG Lifeguard Stands Replacement Projection (FINAL).docx 22 RESOLUTION TO BE SUBMITTED 23 THIS PAGE INTENTIONALLY LEFT BLANK 24 COMMISSION ITEM SUMMARY Gondensed Title: Second Reading to consider an Ordinance Amendment pertaining to the prohibition on commercial solicitation in certain areas. The government interests supporting these proposed amendments include: (1) Protecting the historic character of these districts, the City's economic engine; (2) Developing the high-end retail and high-end sidewalk caf6 promenades in the district; (3) Promoting luxury tourism; (4) Minimizing harassment of pedestrians along the public right-of-way; (5) Minimizing congestion; Supporting Data (Surveys, EnvironmentalScan, etc The City has received numerous complaints from residents, visitors, and business owners and managers regarding the proliferation of commercial solicitation activities. Item S ummary/Recommendation : SECOND READING The proposed amendment to Section 74-1 seeks to prohibit commercial solicitation along the public right-of-way within the following areas: (1) The area bounded on the north by, but not including, 17th Street, bounded on the east by, but not including, Washington Avenue, bounded on the south by Lincoln Lane, and bounded on the west by Alton Road;(2) Ocean Drive from Sth to 15th Streets;(3) Collins Avenue from Sth to 15th Streets;(4) Washington Avenue from Sth to Lincoln Road;(5) All cross streets and bystreets bounded on the north by 15th Street, bounded on the east by Ocean Drive, bounded on the south by 5th Street, and bounded on the west by Washington Ave;(6) Espafiola Way from Pennsylvania Avenue to Collins Avenue; and(7) Lummus Park. As in the currentversion of Section 74-1,the prohibitions on commercial solicitation in the proposed amendment would apply at all times. Additionally, the proposed amendment seeks to clarify the prohibitions on commercial solicitation by deleting the language relating to accosting or attempting to accost any person for the purpose of soliciting him or her to purchase any good, service, food, or beverage. The Administration recommends that the Gity Gommission approve the Ordinance at Second Reading. Financial I nformation : Source of Funds: Amount Account 1 2 3 OBPI Total Financial lmpact Summary: ln accordance with Charter section 5.02, which requires that the "City of Miami Beach shall consider the long-term economic impact (at least 5 years) of proposed legislative actions," this shall confirm that the City Administration evaluated the long{erm economic impact (at least 5 years) of this proposed legislative action, and determined that there will be no measureable impact on the City's budget. City Attorney's Office - Camilo Mejia (Ext. 6731) E MIAMIBEACH aoeruon rrem RS A 25 COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members FROM: Jimmy L. Morales, City Manager CC: Raul J. Aguila, City Attorney DATE: November 19,2014 Commission SEGOND READING PUBLIC HEARING SUBJ: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 74 OF THE CODE OF THE CITY OF MIAMI BEACH, FLORIDA, ENTITLED..PEDDLERS AND SOLICITORS," BY AMENDING ARTICLE I, ENTITLED ..IN GENERAL," BY AMENDING SECTION 74.1, ENTITLED ..SOLICITING BUSINESS IN PUBLIC FROM PEDESTRIANS," TO PROHIBIT COMMERCIAL SOLICITATION IN CERTAIN AREAS; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION The proposed Ordinance was approved by the City Commission on First Reading on September 30, 2014 and referred to the Neighborhood and Community Affairs Committee for public hearing and debate. At its October 31, 2014 meeting, members of the Committee heard testimony from the public and City staff, and considered supporting documents entered into the legislative record by the Administration. At the conclusion of that hearing, the members of the Committee unanimously recommended approva! of the Ordinance and returned it to the full City Commission for Second Reading. The Administration recommends that the City Commission approve the Ordinance on Second Reading-Public Hearing on November 19,2014. BACKGROUND Section 74-1 of the Code of the City of Miami Beach currently prohibits any person from soliciting pedestrians for any commercial purpose. This prohibition applies throughout the City. Section a6-92(g) prohibits the distribution of commercial handbills during high-impact periods on certain streets within the City's art deco district (Ocean Drive from 6th through 1Sth Streets, Washington Avenue from 6th through 17th Streets, Collins Avenue from 6th through 17th Streets, and on any portion of Lincoln Road). ln 2012, the City Commission amended the enforcement provisions of both Section 74-1 and 46-92 by: (a) altering the penalty scheme for the violation 26 of these provisions; and (b) transferring the enforcement responsibilities from the City's Police Department to the Code Compliance Division. Throughout the last year, in response to complaints from visitors and residents, the City Commission directed the Administration to step up its enforcement efforts to address commercial solicitation along the City's most popular tourist destinations, with an emphasis on Lincoln Road and Ocean Drive. As a result, the number of citations issued by the Code Compliance Division pursuant to these provisions has increased substantially. CURRENT REGULATIONS A. Chapter 74-1: Current Prohibition on Commercial Solicitation. ln its current form, Section 74-1 ol the Code of the City of Miami Beach places restrictions on the solicitation of pedestrians for commercial purposes. More specifically, this Section provides that: It shall be unlawful for any person, while upon any public street or sidewalk or while in any building, doorway, stairway, window or other opening abutting on or adjacent to such street or sidewalk, to accost or attempt to accost any pedestrian on such street or sidewalk for the purpose of soliciting him to purchase any property, real or personal, or any food, beverage or service, or to solicit him to enter any place of business for the purpose of selling to or inducing or attempting to induce such pedestrian to purchase any property, real or personal, or any food, beverage or service. B. Chapter 46-92(q): Current Prohibitions on Commercial Handbill Distribution. Section 46-92(9) prohibits the distribution of commercial handbills during high-impact periods on certain streets within the City's art deco district: Ocean Drive from 6th through 1Sth Streets, Washington Avenue from 6th through 17th Streets, Collins Avenue from 6th through 17th Streets, and on any portion of Lincoln Road). The City Code defines high-impact periods as "those periods of time as annually designated by the City Manager during which one of the following occur: (i) There is a designated major event period; (ii) A maintenance or traffic plan is required; (iii) Hotel occupancy levels are anticipated to be greater than 75 percent; 27 (iv) Mutual aid or other assistance from outside agencies is required to provide for the safety and well-being of residents and visitors to the destination; and (v) An event on public property is anticipated to result in more than 25,000 visitors to the destination. ln addition to the above prohibition, Section 46-92(9) also bans the distribution of commercial handbills within 20 feet from the outside perimeter of any approved sidewalk caf6, on any right-of-way within the approved sidewalk caf6, and on any City beach east of the dunes. PROPOSED AMENDMENTS A. Proposed Amendment to Section 74-1 The proposed amendment to Section 74-1 prohibits commercial solicitation along the public right-of-way only within the following areas: (1) The area bounded on the north by, but not including, 17th Street, bounded on the east by, but not including, Washington Avenue, bounded on the south by Lincoln Lane, and bounded on the west by Alton Road; (2) Ocean Drive from Sth to 15th Streets; (3) Collins Avenue from Sth to 1Sth Streets; (4) Washington Avenue from 5th to Lincoln Road; (5) All cross streets and bystreets bounded on the north by 15th Street, bounded on the east by Ocean Drive, bounded on the south by 5th Street, and bounded on the west by Washington Ave; (6) Espafrola Way from Pennsylvania Avenue to Collins Avenue; and (7) Lummus Park. As in the current version of Section 74-1, the prohibitions on commercial solicitation in the proposed amendment would apply at all times. Additionally, the proposed amendment eases the enforcement of the city's regulation of commercial solicitation by clarifying the prohibitions on commercial 28 solicitation by setting forth restrictions based upon designated locations for the purpose of soliciting him or her to purchase any good, service, food, or beverage. The government interests supporting these proposed amendments include: (1) protecting the historic character of these districts, the City's economic engine; (2) developing the high-end retail and high-end sidewalk caf6 promenades in the district; (3) promoting luxury tourism; (4) minimizing harassment of pedestrians along the public right-of-way; (5) minimizing congestion; (6) reducing litter; (7) improving the aesthetic experience for residents and visitors; (8) protecting the right of pedestrians to be let alone in their quiet enjoyment of these districts; (9) maintaining the unique ambiance the city has created in these sectors; and (10) the expansion of other areas where commercial solicitation is allowed within the city. B. Proposed Amendment to Section 46-92(q) The proposed amendment to Section 46-92(9) seeks to prohibit the distribution of commercial handbills within the following areas: (1) The area bounded on the north by, but not including, 17th Street, bounded on the east by, but not including, Washington Avenue, bounded on the south by Lincoln Lane, and bounded on the west by Alton Road; (2\ Ocean Drive from Sth to 15th Streets; (3) Collins Avenue from 5th to 1Sth Streets; (4) Washington Avenue from Sth to Lincoln Road; (5) All cross streets and bystreets bounded on the north by 1Sth Street, bounded on the east by Ocean Drive, bounded on the south by Sth Street, and bounded on the west by Washington Ave; (6) Espafrola Way from Pennsylvania Avenue to Collins Avenue; and (7) Lummus Park. As in the current version of Section 46-92(9), the ban on the distribution of commercial handbills within 20 feet from the outside perimeter of any approved sidewalk caf6, on any right-of-way within the approved sidewalk caf6, and on any City beach east of the dunes would remain in force throughout the City. 29 The government interests supporting these proposed amendments include: (1) protecting the historic character of these districts, the City's economic engine; (2) developing the high-end retail and high-end sidewalk caf6 promenades in the district; (3) promoting luxury tourism; (4) minimizing harassment of pedestrians along the public right-of-way; (5) minimizing congestion; (6) reducing litter; (7) improving the aesthetic experience for residents and visitors; (8) protecting the right of pedestrians to be let alone in their quiet enjoyment of these districts; (9) maintaining the unique ambiance the city has created in these sectors; and (10) the expansion of other areas where commercial solicitation is allowed within the city. ANALYSIS A. Historv of Art Deco District. Miami Beach's Art Deco District ("the District") is the first 20th-century neighborhood to be recognized by the National Register of Historic Places. Prior to its historic preservation, this acclaimed sector was a working-class district on a downward spiral. The District was plagued with drug use and crime. Physical decay was rampant. ln the 1970's, many of the buildings and structures in the District were slated for demolition. The desire to save many of these small hotels promoted a widespread interest in preserving the area and eventually made Ocean Drive a fashionable address. Now a focal point of revitalization and redevelopment, Miami Beach's renowned Art Deco District is both a national treasure and an international attraction. Miami Beach was recently named one of the "Great American Public Places" and the "Hottest Destination in the World." ln addition to the architectural beauty of the Art Deco District, its unique ambiance, and its importance for tourism, the single most important other feature of the area is its sidewalk cafes. The numerous sidewalk cafes on Ocean Drive and throughout the Art Deco District facilitated the area's popularity and ensure its continued success. ln a 1996 survey conducted by the Greater Miami Convention and Visitors Bureau, visitors to Greater Miami were asked what features they liked most about the region. Given the wide range of amenities and attractions in Greater Miami, Ocean Drive restaurants and cafes were remarkably selected by almost twenty percent (20Yo) of the visitors. The importance of the Art Deco District and its cafes is also evidenced by the increase in Resort Tax for Miami Beach and the South Beach District. The Art Deco district and South Beach were the top tourist attractions in Miami-Dade County in 2013, visited by nearly 43.60/o of its 14.2 million visitors. Resort Tax sales are room, alcohol, and food sales collected by establishments in Miami Beach. Resort Tax sales for Miami Beach have increased from a negligible amount in 1989 to $59,613,31 1 in fiscal year 2012-2013. Resort taxes accounted for 16% (FY 11112) and 17Yo (FY 12113) of Revenues for City in Government Activities. The District has become the City's economic life blood. 30 The District can be divided into three major neighborhood types based on function and use - the seasonal hotel area, the commercial areas and the residential area. Architecturally, these zones are easily recognizable and coincide with the long-established street configuration. The seasonal hotel area is concentrated along Ocean Drive from Sth Street to 15th Street and along Collins Avenue from 6th Street to 23'd Street. A secondary concentration of such hotels is located in the Collins Park/James Avenue area north of Lincoln Road and east of Washington Avenue. The commercial areas are largely restricted to two streets which traverse the District from north to south (Washington Avenue) and east to west (Lincoln Road). The residential area which surrounds Flamingo Park includes both multi-family and single family buildings. This approximately 125 square block area contains the largest concentration of 1920s and 1930s era resort architecture in the United States. Dozens of grand, Mediterranean Revival style hotels were built during the 1920s. ln the early 1930s the City was being promoted and developed as a tropical playground. lt is during this phase that a new building boom began, and would last until the beginning of World War II. The vast majority of the over 800 buildings constructed in the 1930s were designed in the Moderne (Art Deco and Streamline) style of architecture. These apartment houses and commercial buildings were built by only a few architects working for a small number of developers, resulting in a uniformity of scale, architectural style and extraordinary architectural compatibility, and giving the district an extremely cohesive character. ln 1979, the Miami Beach Architectural District was listed on the National Register of Historic Places. This act set a historic precedent because it marked the first recognition of a 20th Century district. Today, the Art Deco district of Miami Beach is one of America's most famous neighborhoods. lts Art Deco architecture has formed the backdrop to many fashion shoots, movies, television shows, and music videos. Benefiting from its unique geography and history, the preservation of Miami Beach has had a significant regional economic impact. ln May of 1979, thanks in large part to the efforts of the Miami Design Preservation League, the Miami Beach Architectural District was listed on the National Register of Historic Places. ln addition to marking the first time that a 20th Century district obtained this designation, this event was also significant because many of the buildings in the district were not over 50 years old, which until that time was considered necessary for inclusion in the Register. Since its addition to National Register of Historic Places, the City has heavily regulated the District to protect its unique aesthetics and ambiance. Specifically, the City precludes all commercial solicitation (except the sidewalk cafe tables) from the streets and sidewalks in the District and the buildings and cafes are subject to an extensive design review process for all physical 31 structures and fixtures associated with them. Moreover, the City recently added even stricter criteria to the regulations which govern the sidewalk cafes. The City is committed to maintaining the District's historic significance and aesthetic beauty and ensuring its continued success. Between 1986 and 1992 the City filled in the boundaries of the National Register Historic District with four locally designated historic districts. These locally designated historic districts include the Ocean Drive/Collins Avenue Historic District, Espanola Way Historic District, Flamingo Park Historic District, and the Museum Historic District. Three of the four locally designated historic districts are made up of portions of major commercial streets that are included in the area regulated by the amendments proposed today: Ocean Drive Ocean Drive is the cultural and economic backbone of the City's tourism industry. The sidewalk cafes on Ocean Drive between Fifth and Fifteenth Streets have become the economic lifeblood of the City. ln a 1996 study, almost twenty percent of the tourists to the Greater Miami area listed the cafe district as their favorite area attraction. lndeed, the architecture, colors, and style of Ocean Drive and the Art Deco District have come to symbolize the entire City. Lincoln Road ln 1914, a year before the "Town of Miami Beach" was incorporated, Lincoln Road was conceived of and built by Carl Fisher (developer of the lndianapolis Speedway) to command the attention of America's industrial and social elite. Lincoln Road was destined to become "The Fifth Avenue of the South". Fisher, who was often referred to as "the Father of Miami Beach", specifically intended for the road to be the "high end" retail hinge of Miami Beach. Fisher's vision gave exceptional urbane credibility to the otherwise small and fledgling seaside resort community built on a sandbar. lt not only brought visitors seeking the warmth of the tropical sun but also wealthy new residents accustomed to the amenity of fine shopping and high profile promenading. Time and history have proven that the urban success of Lincoln Road is highly dependent upon creating and maintaining a critical balance of energizing uses - retail, outdoor cafes, fine dining, cultural amenity, and joyful promenading along a tree shaded corridors, in tandem with exceptional adaptive reuse and restoration of historic structures simultaneous with the creation of brilliant new design at a world class level. lf any one of these decisive factors is undervalued or undermined the Road could once again slip back into commercial and cultural decline as witnessed in the 1950s and the 1970s, 80s, and early 90s. 32 Washinqton Avenue Washington Avenue has historically served as one of the primary commercial streets in our city. lt has contained a mix of retail stores, restaurants, hotels and sidewalk cafes. Washington Avenue contains a one mile corridor from Sth Street to Lincoln Road, comprising thirteen blocks and containing 98 Historic Properties. Washington Avenue landmarks include Old City Hall, the historic United States Post Office, the Blackstone Hotel, Feinberg-Fisher Elementary School, the Wolfsonian-FlU Museum of Art, and the historic Espanola Way district. Collins Avenue Collins Avenue region from 5th Street to 17th Street is one of the two major commercial thoroughfares in the Ocean Drive/Collins Avenue Historic District. This geographic region contains a concentration of hotels that house a significant percentage of the city's tourists, and a large number of historically relevant hotels and other structures. Espanola Wav Espanola Way sits on land which formed the northern boundary of Ocean Beach; the first recorded plat in what was to become Miami Beach, as recorded by the pioneer Lummus Brothers'Ocean Beach Realty Company in 1912. The street was built by Francis F. Whitman in 1922 as "Whitman's Spanish Colony." The undeveloped land consisting of 20 corner lots and 40 inside lots was purchased by N.B.T. Roney and the Spanish Village Corporation in 1925 at the peak of the first great Florida land boom. Roney, one of the most prolific builders in early Miami Beach envisioned creating an artists' colony ... "where artists and lovers of the artistic might congregate amid congenial surroundings." The idea of such a bohemian village was first suggested to Mr. Roney by former New Yorkers who mentioned that Miami Beach lacked an area with a creative atmosphere for artists as one would find in New York's Greenwich Village, or the artists' quarter in Paris. B. Commercial Solicitation Threatens the Historic Districts. Commercial solicitation of pedestrians along Ocean Drive, Lincoln Road, Washington Avenue, Collins Avenue, and Espafrola Way causes increased pedestrian congestion and harassment of the tourists and residents who frequent these historically significant and popular tourist destinations. Commercial solicitation has been a problem for the City for some time, as reflected by numerous complaints from residents, businesses, and visitors, as well as the observations of City officials, regarding the harassment and accosting of 33 pedestrians arising from commercial solicitation activities. As an internationally famous tourist destination, the visual blight caused by commercial solicitation harms the City's goal of promoting tourism and continuing to be an internationally renowned tourist destination. Commercial solicitation along these historically significant and popular areas reduces pedestrians' enjoyment of these areas and impedes the City's vision of these areas as pleasant and tranquil promenades. Both the aesthetics and special ambiance of these districts are being adversely affected by commercial solicitation along the streets and sidewalks. C. Gommercial Handbill Distribution Threatens the Historic Districts. The distribution of commercial handbills along Ocean Drive, Lincoln Road, Washington Avenue, Collins Avenue, and Espaflola Way causes increased pedestrian congestion and harassment of the tourists and residents who frequent these historically significant and popular tourist destinations. The proliferation of commercial solicitation, including solicitation through the distribution of commercial handbills, is a burgeoning problem for the City, as reflected by numerous complaints from residents, businesses, and visitors, as well as the observations of City officials, regarding the harassment and accosting of pedestrians arising from these activities. As an internationally famous tourist destination, the visual blight caused by the handbills that end up as litter harms the City's goal of promoting tourism and continuing to be an internationally renowned tourist destination. The distribution of commercial handbills along these historically significant and popular areas reduces pedestrians' enjoyment of these areas and impedes the City's vision of these areas as pleasant and tranquil promenades. D. Evidence Considered in Support of the Amendments. The City has received numerous complaints from business owners and managers regarding the proliferation of commercial solicitation activities and commercial handbilling within the regulated areas. Although the experiences of these business owners and managers vary, they include, but are not limited to, the following observations: . Employees of several retail stores and restaurants along Lincoln Road actively solicit pedestrians on the public right-of-way by approaching them in an aggressive manner, including by touching a potential customers' hair or body, questioning pedestrians insistently, and continuing to speak with and walk along pedestrians who ask to be left alone. 34 Commercial solicitation has damaged the reputation of Lincoln Road, creating a "honky tonk" atmosphere. On at least one occasion, a pedestrian was "cursed out" when said pedestrian refused to go along with a sales pitch from a solicitor. On another occasion, a pedestrian verbally objected to the solicitor's unwanted advances, and the solicitor followed her to her car in an attempt to intimidate her and possibly cause her harm. Employees of stores engaging in commercial solicitation are scaring customers, tourists, and pedestrians away from entering nearby businesses. Customers often complain about their anger, annoyance, and discomfort resulting from the exposure to commercial solicitation tactics. Often, pedestrians will avoid the entire side of the street where the commercial solicitation activities are taking place, or will quickly walk past these areas in order to avoid the harassment. Employees of neighboring retail and food establishments avoid the areas where commercial solicitation takes place, and are forced to take alternate routes to get to work, in order to avoid the harassing conduct of commercial solicitors. City staff reports that several businesses conducting commercial solicitation along Lincoln Road have appropriated the public right-of- way by marking their "territory" with black tape on the sidewalk, impeding pedestrians from walking through the "box." While the box discourages pedestrians from walking through the illegally appropriated space, the commercial solicitors do not confine themselves to the box, instead chasing pedestrians down the street. ln addition to complaints of business owners and managers, the Administration has also received numerous complaints from residents and visitors. These include email accounts of not being able to walk along Lincoln Road without fear of being hassled and/or harassed, as well as descriptions of rude behavior and comments when a pedestrian chooses to avoid the commercial solicitation activities. 10 35 E. Alternative Solutions for Consideration. The Administration has considered several alternatives with a view towards resolving the problems of commercial solicitation. One of these alternatives involves the creation of free speech "bubbles," which would essentially require that any commercial solicitation activities take place beyond a minimum threshold distance surrounding a pedestrian. This alternative has been discussed and, ultimately, rejected due to the difficulties that arise in connection with the enforcement of buffer zones in the high-traffic pedestrian areas where solicitation is a problem. A second alternative is to create commercial solicitation "boxes" or "zones," in which commercial solicitation would be allowed with little or no limitation. The Administration considered several such areas, including: (1) the intersection of Lincoln Road and Washington Avenue; (2) the intersection of Ocean Drive and Fifth Street; and (3) the intersection of Ocean Drive and Tenth Street. Several unacceptable enforcement and administrative challenges arise in connection with this alternative. First, this alternative does not address many of the legitimate concerns raised above because it still would create a bazaar atmosphere. Also, it is difficult to determine the geographic limitations of these zones, as well as the extent of the limitations on speech, if any, on commercial soliciting within these zones. Second, commercial speech zones would create enforcement challenges, as it would be difficult to define the boundaries of the zone itself, and, in addition, there would likely be some spillover effect outside of the zone and into the surrounding bystreets and side streets. As a third alternative, the Administration considered limiting the application of the commercial solicitation ban to aggressive solicitation. As with the other alternatives, this limitation poses several important enforcement problems. First, it is more difficult than restrictions or limitations based on location to enforce. Similarly, training Code enforcement officers to recognize whether particular conduct is in fact aggressive, and thus subject to a violation, would also be more costly and difficult. ln addition, limiting the ban to aggressive solicitation would not help to resolve the more prevalent problem of commercial solicitation along the City's rights-of-way. Accordingly, the Administration does not recommend adopting this alternative. F. AvailabiliW of Alternative Channels of Communication. The Administration has carefully considered alternative channels that commercial entities have to convey their commercial messages other than direct solicitation and handbilling in the historic districts under consideration. Various alternatives do exist: 11 36 1. 2. The regulated area is small. lt comprises only short stretches of six streets within the City's historic districts. The vast majority of the City is available for commercial solicitation and handbilling. Within the regulated zone, commercial businesses may convey their commercial messages on lighted billboard type signs that are leased for that purpose. Commercial businesses may convey their message, subject to lawful restrictions of type and size, on signage on their building and in their windows. Subject to lawful restrictions on number, spacing, and volume, messages may be conveyed with a permit within the regulated area by incorporating them into a performance such as a song. The City permits newsstands (subject to Iawful regulation) within the regulated area. Commercial entities are free to purchase advertising space within newspapers of all kinds from publishers that have a permit to place a newsstand on City Streets (or to seek a permit to place a newsstand for a newspaper published by the commercial entity). The lnternet is widely available within the regulated area, including via City provided free Wi-Fi coverage. Location services on the lnternet such as Yelp, AroundMe, and Facebook allow businesses to communicate to the public within the regulated area the location of the business, information about the business, and consumer reviews of the commercial entities within the regulated area. Commercial entities are free to communicate their message to consumers who want it via this medium. Most businesses within the regulated area are permitted to place a single video monitor within their window in order to communicate with the public regarding the services offered inside. 8. Advertising on the local television and radio stations is readily available. 3. 4. 5. 6. 7. t2 37 G. Failure of Gurrent Regulatory Regime and Likelihood that Proposed Regulations Will Successfully Address the Gontinuinq Challenqes. The current regulatory scheme for commercial solicitation and handbilling within the City has proven ineffective. lt requires an economically infeasible investment of staff and enforcement resources. Additionally, as tourism and commercial revenue within the regulated area increases exponentially, the problems associated with commercial solicitation and the litter and environmental harm associated with commercial handbilling are correspondingly multiplied. The Administration concludes that the limited prohibition of commercial solicitation within the historic districts regulated here (as opposed to the entire city) will allow city code enforcement officers and police officers to more effectively regulate commercial solicitation in these historically sensitive areas. Additionally, the prohibition on commercial handbilling within the regulated historic districts will more effectively address the economic, aesthetic and environmental problems created by the distribution of commercial flyers in this culturally sensitive area. FINANCIAL IMPACT !n accordance with Charter section 5.02, which requires that the "City of Miami Beach shall consider the long-term economic impact (at least 5 years) of proposed legislative actions," this shall confirm that the City Administration evaluated the long-term economic impact (at least 5 years) of this proposed legislative action, and determined that there will be no measureable impact on the City's budget. CONCLUSION The Administration recommends that the City Commission approve the proposed ordinance on Second Reading. JM/rfr 13 38 ORDINANCE NO. AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 74 OF THE CODE OF THE CITY OF MIAMI BEACH, FLORIDA, ENTITLED ..PEDDLERS AND SOLICITORS,'' BY AMENDING ARTICLE I, ENTITLED "IN GENERAL,'' BY AMENDING SECTION 74.I, ENTITLED "SOLICITING BUSINESS IN PUBLIC FROM PEDESTRIANS," TO PROHIBIT COMMERCIAL SOLICITATION IN CERTAIN AREAS; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. WHEREAS, Washinglon Avenue from 5'h Street to Lincoln Road ("Washington Avenue"); Ocean Drive from 5th Street to 15th Street ("Ocean Drive"); the area bounded on the north by, but not including, 17th Street, bounded on the east by, but not including, Washington Avenue, bounded on the south by Lincoln Lane, and bounded on the west by Alton Road ("Lincoln Road Area"); the area bounded on the north by 15'h Street, bounded on the east by Ocean Drive, bounded on the south by 5tn Street, and bounded on the west by Washington Avenue ("Collins Avenue Area"); Espaflola Way from Pennsylvania Avenue to Collins Avenue ("Espaflola Way"); and Lummus Park, are located within or adjacent to unique historic districts in the City of Miami Beach ("City") and are nationally and intemationally popular tourist destinations; and WHEREAS, the City of Miami Beach and, in particular, the Lincoln Road Area, Espafiola Way, Lummus Park, Ocean Drive, Washington Avenue, and the Collins Avenue Area, are located in the "South Beach" area, which attracts a reported 6.8 million tourists from around the world annually and is host to a myriad of major events, such as Art Basel - Miami Beach, The Food Network South Beach Wine & Food Festival, the Miami International Boat Show, White Party, Winter Party, Winter Music Conference, Miami Marathon, Art Deco Weekend, South Beach Comedy Festival, Mercedes Benz Swimwear Fashion Week, among others, that attract local, national, and intemational visitors; and WHEREAS, situated within the Lincoln Ocean Drive, Washington Avenue, Lummus Park, and Collins Avenue Areas, and along Espaflola Way are a multitude of retail, Road and dining, and entertainment venues that include restaurants, sidewalk cafes, nightclubs, the Fillmore at the Jackie Gleason Theater, the New World Symphony, City parks, and retail stores, all of which are heavily trafficked by residents, visitors, and tourists who desire to visit, shop, dine, and attend cultural performances, or to simply stroll along these areas without any disruption and intimidation; and WHEREAS, the City of Miami Beach has a significant governmental interest in providing its residents, visitors, and tourists with a pleasant, enjoyable, and safe environment free of nuisance activity; and WHEREAS, the commercial solicitation of pedestrians along these heavily traveled pedestrian areas causes increased pedestrian congestion and harassment of tourists and residents who traverse these historic areas; and 39 WHEREAS, the harassment of pedestrians arising from commercial solicitation activities is a burgeoning problem in the City of Miami Beach, as reflected by numerous complaints from residents, business owners, and visitors; and WHEREAS, the businesses that engage in commercial solicitation activities disrupt the activities of the surrounding outdoor cafes, restaurants, nightclubs, retail establishments, and entertainment venues, by physically approaching, harassing, and intimidating residents, visitors and tourists in places where it is difficult to exercise the right to decline to listen to them or avoid their requests; and WHEREAS, commercial solicitation activities on the public rights-of-way in the above- stated areas dissuade residents, visitors and tourists from traversing these areas, resulting in the disruption and/or loss of business to the surrounding outdoor cafes, restaurants, nightclubs, retail establishments, and entertainment venues; and WHEREAS, the businesses that engage in solicitation activities regularly distribute commercial handbills to pedestrians, resulting in increased litter and adversely impacting the City's interests in preserving its aesthetic ambience, tourist industry, and image as a beautiful and enj oyable beachfront destination; and WHEREAS, the City recognizes that commercial speech is entitled to First Amendment protection and its regulation must be content-neutral and narrowly tailored to serve a significant government interests while leaving open alternative channels of communication; and WHEREAS, the City has significant goverrrmental interests in protecting the character of its historic districts, developing the high-end retail and high-end promenades within its historic and entertainment districts, promoting luxury tourism, minimizing the harassment of pedestrians along the public right-of-way, minimizing congestion, reducing litter, and improving the aesthetic experience for residents and visitors; and WHEREAS, it would serve the aforementioned govemmental interests for the Commission to enact an Ordinance increasing the City's ability to enforce its regulations by prohibiting the commercial solicitation of pedestrians on the public rights-of-way on Washington Avenue, Ocean Drive, the Collins Avenue Area, the Lincoln Road Area, Espaflola Way, and Lummus Park; NOW, THEREFORE, BE IT DULY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH AS FOLLOWS: SECTION 1. ThatArticle I of Chapter 74 of the Code of the City of Miami Beach, Floridais hereby amended as follows: 40 Chapter 74 PEDDLERS AND SOLICITORS ARTICLE I. IN GENERAL &J& Sec. 74-1. Soliciting business in public-frompedestri**s. (a) Prohibitions. It shall be unlawful f,-or an]' person; rvhile upen an,v publiestreet or sielelvEtlk or while in an,v building; doerw'a,vr rit*irrvay;windor'v er other opening at nttillg ofi or adjaeent to @ to solicit @any pede$triix+pglggn tl*-sueh*+ree+ Mk-for the purpose of o purchase any property,real or personal, or any food, beverage or service, or to solicit hiin-gggblgl5gn to enter any place of business for the purpose of selli*pborinducing or attempting to induce such pedes+ridtt-pgl$gq to purchase any property, real or personal, or any food, beverage or service. 'l'lris Section sltA!]_apply rvhert tlr_e_ ,sg.ljcitor or the pellon beinq soli.cited is located..on any puhlic right-of'-rvay. which uroat$ and inclurdes" but is not lirnited to. iury street. sidewalk. street corncr. ourb. bicycle path. or pedestrian walkrva),. in an), o{ the ltrllclr.ving iu'eas in the City of' Miami Beach. This Section shall also apply to any doorrva)'. stairwa),. winclorv or othEr opening of a b_uilding abutlilr&olr or adjacelrt_ to such right-qf-w?)'.. in an)'gf the following area.S- in the C;it)"of Miami Beach: (.1) The arezr bounded orr the north by. br"rt not inclucling. 17th Street. bouncled on the east b),. but not including, Washington Avenue. bounded on the south by Lincoln l,ane. Ald.bounded-en the.west by-Alton Road; (2) Ocean Dri-ve f'rom 5thjo l5th Streets: (3) Collins Avenue ltom 5th to 15th Streets: (4) Washington Avenue lrom 5th to Lincoln Road: (5) All__qross streetl_and.bystreets !.ounded o_!_the northly 1.5th Stteet" boUude-d.on the east by Ocean Drive. bounded on lhe south b)r 5th Street- and boulrcled on the rvest b.vr Washinqtcur Ave: (.6) Espaflola Way lrorn Pennsylvania Ai,enue tt'r Collins Avenue: and (.7) L-ulrlnrus Park. SECTION 2. CODIFICATION It is the intention of the Mayor and the City Commission of the City of Miami Beach, and it is hereby ordained that the provisions of this Ordinance shall become and be made apart of the Code of the City of Miami Beach, Florida. The sections of this ordinance may be renumbered or re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word. 41 SECTION 3. REPEALER All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 4. SEVERABILITY If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 5. EFFECTIVE DATE PASSED and ADOPTED this _ day of _,2014. This Ordinance shall take effect on the _ day of _,2014. ATTEST: Philip Levine, Mayor Rafael E. Granado, City Clerk Underscore denotes additions Strlke+nreush de n otes deletio n s (Sponsored by Mayor Philip Levine) APPROVED AS TO FORM & LANGUAGE .\- ciry A|oneyyl 42 c :E>!o@> o>€ ESEHEEE :- :t E;E€ *: :f €E _B:=Sii?-€ FE :E :E E 63 s ESEE{EE tt e€s c*FE EE I€ EE iEEEfEE E! ii E; g EE: --ITEEE:p EE 3!$ E5:t Hi F; E* c5;ilii E; EE i: E iat 5'e!';.Sii-E St a-,,! FE;* ;F iE E& E pE6T F,E s E E= E:; :nH;"::f g ti i5i :E;€ €E Ei r: ;f EE:e e t ; i: sC _t $". :EE?::=? !x EEE s.Q!I p= ez I.d 'E:si!!:! -E: 3s ;! 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Eii EiiEs ? tl (l II \ Oi <iE] EI =:Si =:-l Ei I: E: =: o: @icl :iui z' t' o dltIFi luiz'ol !z 43 THIS PAGE INTENTIONALLY LEFT BLANK 44 COMMISSION ITEM SUMMARY Condensed Title: Second Reading to consider an Ordinance Amendment pertaining to the distribution of commercial handbills. AGENDA '"U .RS_B The government interests supporting these proposed amendments include: (1) Protecting the historic character of these districts, the City's economic engine; (2) Developing the high-end retail and high-end sidewalk caf6 promenades in the district; (3) Promoting luxury tourism; (4) Minimizing harassment of pedestrians along the public right-of-way; (5) Minimizing congestion; (6) Reducing litter; (7) lmproving the Supporting Data (Surveys, EnvironmentalScan, etc The City has received numerous complaints from idents, visitors. and business owners and Item Summarv/Recommendation : FIRST READING The proposed amendment to Section 46-92(g) seeks to prohibit the distribution of commercial handbills along the public right-of-way in the following areas: (1) The area bounded on the north by, but not including, 17th Street, bounded on the east by, but not including, Washington Avenue, bounded on the south by Lincoln Lane, and bounded on the west by Alton Road;(2) Ocean Drive from 5th to 15th Streets;(3) Collins Avenue from Sth to 15th Streets;(4') Washington Avenue from 5th to Lincoln Road;(5) All cross streets and bystreets bounded on the north by 15th Street, bounded on the east by Ocean Drive, bounded on the south by Sth Street, and bounded on the west by Washington Ave.;(6) Espafrola Way from Pennsylvania Avenue to Collins Avenue; and(7) Lummus Park. As in the current version of Section 46-92(9), the ban on the distribution of commercial handbills within 20 feet from the outside perimeter of any approved sidewalk caf6, on any right-of-way within the approved sidewalk caf6, and on any City beach east of the dunes would remain in force throughout the City. The Administration recommends that the City Commission approve the Ordinance at Second Reading. Financial lnformation: Funds: Amount Account 1 2 3 OBPI Total Financial lmpact Summary: ln accordance with Charter section 5.02, which requires that the "City of Miami Beach shall consider the long{erm economic impact (at least 5 years) of proposed legislative actions," this shall confirm that the City Administration evaluated the long-term economic impact (at least 5 years) of this proposed legislative action, and determined that there will be no measureable impact on the City's budget. City Attorney's Offlce - Camilo Mejia (Ext. 6731) E MIAMIBEACH onre ll-t9-l V45 COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members FROM: Jimmy L. Morales, City Manager CC: Raul J. Aguila, City Attorney DATE: November 19,2014 SECOND READING PUBLIC HEARING SUBJ: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 46 OF THE CODE OF THE CITY OF MIAMI BEACH, FLORIDA, ENTITLED..ENVIRONMENT," BY AMENDING ARTICLE III, ENTITLED..L!TTER," BY AMENDING DIVISION 1, ENTITLED "GENERALLY,'' BY AMENDING SECTION 46-92(a), ENTITLED "DEFINITIONS," BY ADDING A DEFINITION FOR THE TERM "RIGHT-OF.WAY," BY AMENDING SECTION 46-92(9), ENTITLED "PROHIBITION ON COMMERCIAL HANDBILL DISTRIBUTION," BY AMENDING THE REGULATIONS AND PROHIBITIONS FOR THE DISTRIBUTION OF COMMERCIAL HANDBILLS; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION The proposed Ordinance was approved by the City Commission on First Reading on September 30, 2014 and referred to the Neighborhood and Community Affairs Committee for public hearing and debate. At its October 31, 2014 meeting, members of the Committee heard testimony from the public and City staff, and considered supporting documents entered into the legislative record by the Administration. At the conclusion of that hearing, the members of the Committee unanimously recommended approval of the Ordinance and returned it to the full City Commission for Second Reading. The Administration recommends that the City Commission approve the Ordinance on Second Reading-Public Hearing on November 19,2014. BACKGROUND Section 74-1 of the Code of the City of Miami Beach currently prohibits any person from soliciting pedestrians for any commercial purpose. This prohibition applies throughout the City. Section a6-92(g) prohibits the distribution of commercial handbills during high-impact periods on certain streets within the City's art deco district (Ocean Drive from 6th through 15th Streets, Washington Avenue from 6th through 17th Streets, Collins Avenue from 6th through 17th Streets, and on any portion of Lincoln Road). 46 ln 2012, the City Commission amended the enforcement provisions of both Section 74-1 and 46-92 by: (a) altering the penalty scheme for the violation of these provisions; and (b) transferring the enforcement responsibilities from the City's Police Department to the Code Compliance Division. Throughout the last year, in response to complaints from visitors and residents, the City Commission directed the Administration to step up its enforcement efforts to address commercial solicitation along the City's most popular tourist destinations, with an emphasis on Lincoln Road and Ocean Drive. As a result, the number of citations issued by the Code Compliance Division pursuant to these provisions has increased su bstantial ly. CURRENT REGULATIONS A. Chapter 74-1: Gurrent Prohibition on Commercial Solicitation. !n its current form, Section 74-1 of the Code of the City of Miami Beach places restrictions on the solicitation of pedestrians for commercial purposes. More specifically, this Section provides that: It shall be unlaMul for any person, while upon any public street or sidewalk or while in any building, doonruay, stairway, window or other opening abutting on or adjacent to such street or sidewalk, to accost or attempt to accost any pedestrian on such street or sidewalk for the purpose of soliciting him to purchase any property, real or personal, or any food, beverage or service, or to solicit him to enter any place of business for the purpose of selling to or inducing or attempting to induce such pedestrian to purchase any property, real or personal, or any food, beverage or service. B. Chapter 46-92(q): Gurrent Prohibitions on Gommercial Handbill Distribution. Section 46-92(g) prohibits the distribution of commercial handbills during high-impact periods on certain streets within the City's art deco district: Ocean Drive from 6th through 1Sth Streets, Washington Avenue from 6th through 17th Streets, Collins Avenue from 6th through 17th Streets, and on any portion of Lincoln Road). The City Code defines high-impact periods as "those periods of time as annually designated by the City Manager during which one of the following occur: (i) There is a designated major event period; (ii) A maintenance or traffic plan is required; (iii) Hotel occupancy levels are anticipated to be greater than 75 percent; 47 (iv) Mutual aid or other assistance from outside agencies is required to provide for the safety and well-being of residents and visitors to the destination; and (v) An event on public property is anticipated to result in more than 25,000 visitors to the destination. ln addition to the above prohibition, Section 46-92(9) also bans the distribution of commercial handbills within 20 feet from the outside perimeter of any approved sidewalk caf6, on any right-of-way within the approved sidewalk caf6, and on any City beach east of the dunes. PROPOSED AMENDMENTS A. Proposed Amendmentto Section 74-1 The proposed amendment to Section 74-1 prohibits commercial solicitation along the public right-of-way only within the following areas: (1) The area bounded on the north by, but not including, 17th Street, bounded on the east by, but not including, Washington Avenue, bounded on the south by Lincoln Lane, and bounded on the west by Alton Road; (2) Ocean Drive from 5th to 15th Streets; (3) Collins Avenue from 5th to 1Sth Streets; (4) Washington Avenue from 5th to Lincoln Road; (5) All cross streets and bystreets bounded on the north by 1Sth Street, bounded on the east by Ocean Drive, bounded on the south by Sth Street, and bounded on the west by Washington Ave; (6) Espaflola Way from Pennsylvania Avenue to Collins Avenue; and (7) Lummus Park. As in the current version of Section 74-1, the prohibitions on commercial solicitation in the proposed amendment would apply at all times. Additionally, the proposed amendment eases the enforcement of the city's regulation of commercial solicitation by clarifying the prohibitions on commercial 48 solicitation by setting forth restrictions based upon designated locations for the purpose of soliciting him or her to purchase any good, service, food, or beverage. The government interests supporting these proposed amendments include: (1) protecting the historic character of these districts, the City's economic engine; (2) developing the high-end retail and high-end sidewalk caf6 promenades in the district; (3) promoting luxury tourism; (4) minimizing harassment of pedestrians along the public right-of-way; (5) minimizing congestion; (6) reducing Iitter; (7\ improving the aesthetic experience for residents and visitors; (8) protecting the right of pedestrians to be let alone in their quiet enjoyment of these districts; (9) maintaining the unique ambiance the city has created in these sectors; and (10) the expansion of other areas where commercial solicitation is allowed within the city. B. Proposed Amendment to Section 46-92(q) The proposed amendment to Section a6-92(g) seeks to prohibit the distribution of commercial handbills within the following areas: (1) The area bounded on the north by, but not including, 17th Street, bounded on the east by, but not including, Washington Avenue, bounded on the south by Lincoln Lane, and bounded on the west by Alton Road; (2) Ocean Drive from 5th to 15th Streets; (3) Collins Avenue from 5th to 1Sth Streets; (4) Washington Avenue from Sth to Lincoln Road; (5) All cross streets and bystreets bounded on the north by 15th Street, bounded on the east by Ocean Drive, bounded on the south by Sth Street, and bounded on the west by Washington Ave; (6) Espafrola Way from Pennsylvania Avenue to Collins Avenue; and (7) Lummus Park. As in the current version of Section 46-92(9), the ban on the distribution of commercial handbills within 20 feet from the outside perimeter of any approved sidewalk caf6, on any right-of-way within the approved sidewalk caf6, and on any City beach east of the dunes would remain in force throughout the City. 49 The government interests supporting these proposed amendments include: (1) protecting the historic character of these districts, the City's economic engine; (2) developing the high-end retail and high-end sidewalk caf6 promenades in the district; (3) promoting luxury tourism; (4) minimizing harassment of pedestrians along the public right-of-way; (5) minimizing congestion; (6) reducing litter; (7) improving the aesthetic experience for residents and visitors; (8) protecting the right of pedestrians to be let alone in their quiet enjoyment of these districts; (9) maintaining the unique ambiance the city has created in these sectors; and (10) the expansion of other areas where commercial solicitation is allowed within the city. ANALYSIS A. Historv of Art Deco District. Miami Beach's Art Deco District ("the District") is the first 20th-century neighborhood to be recognized by the National Register of Historic Places. Prior to its historic preservation, this acclaimed sector was a working-class district on a downward spiral. The District was plagued with drug use and crime. Physical decay was rampant. ln the 1970's, many of the buildings and structures in the District were slated for demolition. The desire to save many of these small hotels promoted a widespread interest in preserving the area and eventually made Ocean Drive a fashionable address. Now a focal point of revitalization and redevelopment, Miami Beach's renowned Art Deco District is both a national treasure and an international attraction. Miami Beach was recently named one of the "Great American Public Places" and the "Hottest Destination in the World." ln addition to the architectural beauty of the Art Deco District, its unique ambiance, and its importance for tourism, the single most important other feature of the area is its sidewalk cafes. The numerous sidewalk cafes on Ocean Drive and throughout the Art Deco District facilitated the area's popularity and ensure its continued success. ln a 1996 survey conducted by the Greater Miami Convention and Visitors Bureau, visitors to Greater Miami were asked what features they liked most about the region. Given the wide range of amenities and attractions in Greater Miami, Ocean Drive restaurants and cafes were remarkably selected by almost twenty percent (2Oo/o) of the visitors. The importance of the Art Deco District and its cafes is also evidenced by the increase in Resort Tax for Miami Beach and the South Beach District. The Art Deco district and South Beach were the top tourist attractions in Miami-Dade County in 2013, visited by nearly 43.6% of its 14.2 million visitors. Resort Tax sales are room, alcohol, and food sales collected by establishments in Miami Beach. Resort Tax sales for Miami Beach have increased from a negligible amount in 1989 to $59,613,31 1 in fiscal year 2012-2013. Resort taxes accounted for 16% (FY 11112) and 17o/o (FY 12113) of Revenues for City in Government Activities. The District has become the City's economic life blood. 50 The District can be divided into three major neighborhood types based on function and use - the seasonal hotel area, the commercial areas and the residential area. Architecturally, these zones are easily recognizable and coincide with the long-established street configuration. The seasonal hotel area is concentrated along Ocean Drive from 5th Street to 15th Street and along Collins Avenue from 6th Street to 23'd Street. A secondary concentration of such hotels is located in the Collins Park/James Avenue area north of Lincoln Road and east of Washington Avenue. The commercial areas are largely restricted to two streets which traverse the District from north to south (Washington Avenue) and east to west (Lincoln Road). The residential area which surrounds Flamingo Park includes both multi-family and single family buildings. This approximately 125 square block area contains the largest concentration of 1920s and 1930s era resort architecture in the United States. Dozens of grand, Mediterranean Revival style hotels were built during the 1920s. ln the early 1930s the City was being promoted and developed as a tropical playground. lt is during this phase that a new building boom began, and would last until the beginning of World War ll. The vast majority of the over 800 buildings constructed in the 1930s were designed in the Moderne (Art Deco and Streamline) style of architecture. These apartment houses and commercial buildings were built by only a few architects working for a small number of developers, resulting in a uniformity of scale, architectural style and extraordinary architectural compatibility, and giving the district an extremely cohesive character. ln 1979, the Miami Beach Architectural District was listed on the National Register of Historic Places. This act set a historic precedent because it marked the first recognition of a 20th Century district. Today, the Art Deco district of Miami Beach is one of America's most famous neighborhoods. lts Art Deco architecture has formed the backdrop to many fashion shoots, movies, television shows, and music videos. Benefiting from its unique geography and history, the preservation of Miami Beach has had a significant regional economic impact. ln May of 1979, thanks in large part to the efforts of the Miami Design Preservation League, the Miami Beach Architectural District was listed on the National Register of Historic Places. ln addition to marking the first time that a 20th Century district obtained this designation, this event was also significant because many of the buildings in the district were not over 50 years old, which until that time was considered necessary for inclusion in the Register. Since its addition to National Register of Historic Places, the City has heavily regulated the District to protect its unique aesthetics and ambiance. Specifically, the City precludes all commercial solicitation (except the sidewalk cafe tables) from the streets and sidewalks in the District and the buildings and cafes are subject to an extensive design review process for all physical 51 structures and fixtures associated with them. Moreover, the City recently added even stricter criteria to the regulations which govern the sidewalk cafes. The City is committed to maintaining the District's historic significance and aesthetic beauty and ensuring its continued success. Between 1986 and 1992 the City filled in the boundaries of the National Register Historic District with four locally designated historic districts. These locally designated historic districts include the Ocean Drive/Collins Avenue Historic District, Espanola Way Historic District, Flamingo Park Historic District, and the Museum Historic District. Three of the four locally designated historic districts are made up of portions of major commercial streets that are included in the area regulated by the amendments proposed today: Ocean Drive Ocean Drive is the cultural and economic backbone of the City's tourism industry. The sidewalk cafes on Ocean Drive between Fifth and Fifteenth Streets have become the economic lifeblood of the City. ln a 1996 study, almost twenty percent of the tourists to the Greater Miami area listed the cafe district as their favorite area attraction. lndeed, the architecture, colors, and style of Ocean Drive and the Art Deco District have come to symbolize the entire City. Lincoln Road !n 1914, a year before the "Town of Miami Beach" was incorporated, Lincoln Road was conceived of and built by Carl Fisher (developer of the lndianapolis Speedway) to command the attention of America's industrial and social elite. Lincoln Road was destined to become "The Fifth Avenue of the South". Fisher, who was often referred to as "the Father of Miami Beach", specifically intended for the road to be the "high end" retail hinge of Miami Beach. Fisher's vision gave exceptional urbane credibility to the otherwise small and fledgling seaside resort community built on a sandbar. It not only brought visitors seeking the warmth of the tropical sun but also wealthy new residents accustomed to the amenity of fine shopping and high profile promenading. Time and history have proven that the urban success of Lincoln Road is highly dependent upon creating and maintaining a critical balance of energizing uses - retail, outdoor cafes, fine dining, cultural amenity, and joyful promenading along a tree shaded corridors, in tandem with exceptional adaptive reuse and restoration of historic structures simultaneous with the creation of brilliant new design at a world class leve!. lf any one of these decisive factors is undervalued or undermined the Road could once again slip back into commercial and cultural decline as witnessed in the 1950s and the 1970s, 80s, and early 90s. 52 Washinqton Avenue Washington Avenue has historically served as one of the primary commercial streets in our city. lt has contained a mix of retail stores, restaurants, hotels and sidewalk cafes. Washington Avenue contains a one mile corridor from 5th Street to Lincoln Road, comprising thirteen blocks and containing 98 Historic Properties. Washington Avenue landmarks include Old City Hall, the historic United States Post Office, the Blackstone Hotel, Feinberg-Fisher Elementary School, the Wolfsonian-FlU Museum of Art, and the historic Espanola Way district. Gollins Avenue Collins Avenue region from 5th Street to 17th Street is one of the two major commercial thoroughfares in the Ocean Drive/Collins Avenue Historic District. This geographic region contains a concentration of hotels that house a significant percentage of the city's tourists, and a large number of historically relevant hotels and other structures. Espanola Wav Espanola Way sits on land which formed the northern boundary of Ocean Beach; the first recorded plat in what was to become Miami Beach, as recorded by the pioneer Lummus Brothers'Ocean Beach Realty Company in 1912. The street was built by Francis F. Whitman in 1922 as "Whitman's Spanish Colony." The undeveloped land consisting of 20 corner lots and 40 inside lots was purchased by N.B.T. Roney and the Spanish Village Corporation in 1925 at the peak of the first great Florida land boom. Roney, one of the most prolific builders in early Miami Beach envisioned creating an artists' colony ... "where artists and lovers of the artistic might congregate amid congenial surroundings." The idea of such a bohemian village was first suggested to Mr. Roney by former New Yorkers who mentioned that Miami Beach lacked an area with a creative atmosphere for artists as one would find in New York's Greenwich Village, or the artists' quarter in Paris. B. Commercial Solicitation Threatens the Historic Districts. Commercial solicitation of pedestrians along Ocean Drive, Lincoln Road, Washington Avenue, Collins Avenue, and Espaflola Way causes increased pedestrian congestion and harassment of the tourists and residents who frequent these historically significant and popular tourist destinations. Commercial solicitation has been a problem for the City for some time, as reflected by numerous complaints from residents, businesses, and visitors, as well as the observations of City officials, regarding the harassment and accosting of 53 pedestrians arising from commercial solicitation activities. As an internationally famous tourist destination, the visual blight caused by commercial solicitation harms the City's goal of promoting tourism and continuing to be an internationally renowned tourist destination. Commercial solicitation along these historically significant and popular areas reduces pedestrians' enjoyment of these areas and impedes the City's vision of these areas as pleasant and tranquil promenades. Both the aesthetics and special ambiance of these districts are being adversely affected by commercial solicitation along the streets and sidewalks. C. Commercial Handbill Distribution Threatens the Historic Districts. The distribution of commercial handbills along Ocean Drive, Lincoln Road, Washington Avenue, Collins Avenue, and Espafrola Way causes increased pedestrian congestion and harassment of the tourists and residents who frequent these historically significant and popular tourist destinations. The proliferation of commercial solicitation, including solicitation through the distribution of commercial handbills, is a burgeoning problem for the City, as reflected by numerous complaints from residents, businesses, and visitors, as well as the observations of City officials, regarding the harassment and accosting of pedestrians arising from these activities. As an internationally famous tourist destination, the visual blight caused by the handbills that end up as litter harms the City's goal of promoting tourism and continuing to be an internationally renowned tourist destination. The distribution of commercial handbills along these historically significant and popular areas reduces pedestrians' enjoyment of these areas and impedes the City's vision of these areas as pleasant and tranquil promenades. D. Evidence Gonsidered in Support of the Amendments. The City has received numerous complaints from business owners and managers regarding the proliferation of commercial solicitation activities and commercial handbilling within the regulated areas. Although the experiences of these business owners and managers vary, they include, but are not limited to, the following observations: . Employees of several retail stores and restaurants along Lincoln Road actively solicit pedestrians on the public right-of-way by approaching them in an aggressive manner, including by touching a potential customers' hair or body, questioning pedestrians insistently, and continuing to speak with and walk along pedestrians who ask to be left alone. I 54 . Commercial solicitation has damaged the reputation of Lincoln Road, creating a "honky tonk" atmosphere. . On at least one occasion, a pedestrian was "cursed out" when said pedestrian refused to go along with a sales pitch from a solicitor. . On another occasion, a pedestrian verbally objected to the solicitor's unwanted advances, and the solicitor followed her to her car in an attempt to intimidate her and possibly cause her harm. . Employees of stores engaging in commercial solicitation are scaring customers, tourists, and pedestrians away from entering nearby businesses. o Customers often complain about their anger, annoyance, and discomfort resulting from the exposure to commercial solicitation tactics. o Often, pedestrians will avoid the entire side of the street where the commercial solicitation activities are taking place, or will quickly walk past these areas in order to avoid the harassment. . Employees of neighboring retail and food establishments avoid the areas where commercial solicitation takes place, and are forced to take alternate routes to get to work, in order to avoid the harassing conduct of commercial solicitors. . City staff reports that several businesses conducting commercial solicitation along Lincoln Road have appropriated the public right-of- way by marking their "territory" with black tape on the sidewalk, impeding pedestrians from walking through the "box." o While the box discourages pedestrians from walking through the illegally appropriated space, the commercial solicitors do not confine themselves to the box, instead chasing pedestrians down the street. In addition to complaints of business owners and managers, the Administration has also received numerous complaints from residents and visitors. These include email accounts of not being able to walk along Lincoln Road without fear of being hassled and/or harassed, as well as descriptions of rude behavior and comments when a pedestrian chooses to avoid the commercial solicitation activities. 10 55 E. Alternative Solutions for Consideration. The Administration has considered several alternatives with a view towards resolving the problems of commercial solicitation. One of these alternatives involves the creation of free speech "bubbles," which would essentially require that any commercial solicitation activities take place beyond a minimum threshold distance surrounding a pedestrian. This alternative has been discussed and, ultimately, rejected due to the difficulties that arise in connection with the enforcement of buffer zones in the hightraffic pedestrian areas where solicitation is a problem. A second alternative is to create commercial solicitation "boxes" or "zones," in which commercial solicitation would be allowed with little or no limitation. The Administration considered several such areas, including: (1) the intersection of Lincoln Road and Washington Avenue; (2) the intersection of Ocean Drive and Fifth Street; and (3) the intersection of Ocean Drive and Tenth Street. Several unacceptable enforcement and administrative challenges arise in connection with this alternative. First, this alternative does not address many of the legitimate concerns raised above because it still would create a bazaar atmosphere. Also, it is difficult to determine the geographic limitations of these zones, as well as the extent of the limitations on speech, if any, on commercial soliciting within these zones. Second, commercial speech zones would create enforcement challenges, as it would be difficult to define the boundaries of the zone itself, and, in addition, there would likely be some spillover effect outside of the zone and into the surrounding bystreets and side streets. As a third alternative, the Administration considered limiting the application of the commercial solicitation ban to aggressive solicitation. As with the other alternatives, this limitation poses several important enforcement problems. First, it is more difficult than restrictions or limitations based on location to enforce. Similarly, training Code enforcement officers to recognize whether particular conduct is in fact aggressive, and thus subject to a violation, would also be more costly and difficult. ln addition, limiting the ban to aggressive solicitation would not help to resolve the more prevalent problem of commercial solicitation along the City's rights-of-way. Accordingly, the Administration does not recommend adopting this alternative. F. AvailabiliW of Alternative Channels of Communication. The Administration has carefully considered alternative channels that commercial entities have to convey their commercial messages other than direct solicitation and handbilling in the historic districts under consideration. Various alternatives do exist: ll 56 1.The regulated area is small. lt comprises only short stretches of six streets within the City's historic districts. The vast majority of the City is available for commercial solicitation and handbilling. Within the regulated zone, commercial businesses may convey their commercial messages on lighted billboard type signs that are leased for that purpose. Commercial businesses may convey their message, subject to lavuful restrictions of type and size, on signage on their building and in their windows. Subject to lawful restrictions on number, spacing, and volume, messages may be conveyed with a permit within the regulated area by incorporating them into a performance such as a song. The City permits newsstands (subject to laMul regulation) within the regulated area. Commercial entities are free to purchase advertising space within newspapers of all kinds from publishers that have a permit to place a newsstand on City Streets (or to seek a permit to place a newsstand for a newspaper published by the commercial entity). The Internet is widely available within the regulated area, including via City provided free Wi-Fi coverage. Location services on the Internet such as Yelp, AroundMe, and Facebook allow businesses to communicate to the public within the regulated area the location of the business, information about the business, and consumer reviews of the commercial entities within the regulated area. Commercial entities are free to communicate their message to consumers who want it via this medium. Most businesses within the regulated area are permitted to place a single video monitor within their window in order to communicate with the public regarding the services offered inside. Advertising on the local television and radio stations is readily available. 2. 3. 4. 5. 6. 7. 8. t2 57 G. Failure of Current Regulatory Regime and Likelihood that Proposed Regulations Wil! Successfully Address the Continuino Ghallenqes. The current regulatory scheme for commercial solicitation and handbilling within the City has proven ineffective. lt requires an economically infeasible investment of staff and enforcement resources. Additionally, as tourism and commercial revenue within the regulated area increases exponentially, the problems associated with commercial solicitation and the litter and environmental harm associated with commercial handbilling are correspondingly multiplied. The Administration concludes that the limited prohibition of commercial solicitation within the historic districts regulated here (as opposed to the entire city) will allow city code enforcement officers and police officers to more effectively regulate commercial solicitation in these historically sensitive areas. Additionally, the prohibition on commercial handbilling within the regulated historic districts will more effectively address the economic, aesthetic and environmental problems created by the distribution of commercial flyers in this culturally sensitive area. FINANCIAL IMPACT ln accordance with Charter section 5.02, which requires that the "City of Miami Beach shall consider the long-term economic impact (at least 5 years) of proposed legislative actions," this shall confirm that the City Administration evaluated the long-term economic impact (at least 5 years) of this proposed legislative action, and determined that there will be no measureable impact on the City's budget. CONCLUSION The Administration recommends that the City Commission approve the proposed ordinance on Second Reading. JM/rfr 13 58 ORDINANCE NO. AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 46 OF THE CODE OF THE CITY OF MIAMI BEACH, FLORIDA, ENTITLED "ENVIRONMENT," BY AMENDING ARTICLE III, ENTITLED .OLITTER,'' BY AMENDING DIVISION 1, ENTITLED O'GENERALLY,'' BY AMENDING SECTION 46-92(a), ENTITLED "DEFINITIONS,' BY ADDING A DEFINITION FOR THE TERM "RIGHT.OF-WAY,' BY AMENDING SECTION 46-92(9), ENTITLED "PROHIBITION ON COMMERCIAL HANDBILL DISTRIBUTION,'' BY AMENDING THE REGULATIONS AND PROHIBITIONS FOR THE DISTRIBUTION OF COMMERCIAL HANDBILLS; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. WHEREAS, Washington Avenue from 5th Street to Lincoln Road ("Washington Avenue"); Ocean Drive from 5th Street to 15th Street ("Ocean Drive"); the area bounded on the north by, but not including, 17th Street, bounded on the east by, but not including, Washington Avenue, bounded on the south by Lincoln Lane, and bounded on the west by Alton Road ("Lincoln Road Area"); the area bounded on the north by 15th Street, bounded on the east by Ocean Drive, bounded on the south by 5th Street, and bounded on the west by Washington Avenue ("Collins Avenue Area"); Espaflola Way from Pennsylvania Avenue to Collins Avenue ("Espaflola Way"); and Lummus Park, are located within or adjacent to unique historic districts in the City of Miami Beach ("City") and are nationally and intemationally popular tourist destinations; and WHEREAS, the City of Miami Beach and, in particular, the Lincoln Road Area, Espaflola Way, Lummus Park, Ocean Drive, Washington Avenue, and the Collins Avenue Area, are located in the "South Beach" area, which attracts a reported 6.8 million tourists from around the world annually and is host to a myriad of major events, such as Art Basel - Miami Beach, The Food Network South Beach Wine & Food Festival, the Miami International Boat Show, White Party, Winter Party, Winter Music Conference, Miami Marathon, Art Deco Weekend, South Beach Comedy Festival, Mercedes Benz Swimwear Fashion Week, among others, that attract local, national, and intemational visitors; and WHEREAS, situated within the Lincoln Road and Collins Avenue Areas, and along Ocean Drive, Washington Avenue, Lummus Park, and Espaflola Way are a multitude of retail, dining, and entertainment venues that include restaurants, sidewalk cafes, nightclubs, the Miami Beach Convention Center, the Fillmore at the Jackie Gleason Theater, the New World Symphony, City parks, and retail stores, all of which are heavily trafficked by residents, visitors, and tourists who desire to visit, shop, dine, and attend cultural performances, or to simply stroll along these areas without any disruption and intimidation; and WHEREAS, the distribution of commercial handbills on these heavily traveled pedestrian areas causes increased pedestrian congestion, harassment ofthe tourists and residents who traverse these historic areas, and increases litter on sidewalks, streets, and in sidewalk caf6 59 areas; and WHEREAS, the litter on public property caused by persons distributing commercial handbills has been a problem in the City of Miami Beach for many years and has been the subject of City Commission discussions; and WHEREAS, the harassing and excessive commercial handbill distribution in or on Washington Avenue, Ocean Drive, the Collins Avenue Area, the Lincoln Road Area, Espaflola Way, and Lummus Park has resulted in significant complaints to the City, and to local business owners, from residents and tourists who seek a pleasant strolling and sightseeing experience and is an invasion of the privacy of pedestrians and a detrimental nuisance which adversely impacts the City's tourist industry; and WHEREAS, the harassing and excessive commercial handbill distribution on the public rights-of-way that are adjacent to and within sidewalk cafe areas is also a detrimental nuisance which invades the privacy of cafe diners and adversely impacts the City's interests in preserving its aesthetic ambience, tourist industry, and image as a beautiful and enjoyable beachfront destination; and WHEREAS, the businesses that engage in commercial solicitation activities through the distribution of handbills disrupt the activities of the surrounding outdoor cafes, restaurants, nightclubs, retail establishments, and entertainment venues, by physically approaching, harassing, and intimidating residents, visitors, and tourists in places where it is difficult to exercise the right to decline to listen to them or avoid their requests; and WHEREAS, the commercial solicitation activities engaged in by some businesses dissuade residents, visitors, and tourists from traversing the aforementioned areas, resulting in a disruption of business to the surrounding outdoor cafes, restaurants, nightclubs, retail establishments, and entertainment venues; and WHEREAS, the City recognizes that commercial speech, including speech disseminated through commercial handbills, is entitled to First Amendment protection and its regulation must be content-neutral and narrowly tailored to serve significant government interests while leaving open altemative channels of communication; and WHEREAS, the City has significant governmental interests in protecting the character of its historic districts, developing high-end retail and high-end promenades within its historic and entertainment districts, promoting luxury tourism, minimizing the harassment of pedestrians along the public right-of-way, minimizing congestion, reducing litter, and improving the aesthetic experience for residents and visitors; and WHEREAS, it would serve the aforementioned govemmental interests for the City Commission to enact an Ordinance increasing the City's ability to enforce its litter regulations by prohibiting the distribution of commercial handbills in and along Washington Avenue, Ocean Drive, the Collins Avenue Area, the Lincoln Road Area, Espaflola Way, and Lummus Park. 60 NOW, THEREFORE, BE IT DULY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH AS FOLLOWS: SECTION 1. That Division 1 of Article III of Chapter 46 of the Code of the City of Miami Beach, Florida is hereby amended as follows: Chapter 46 ENVIRONMENT ARTICLE III. LITTER DIVISION 1. GENERALLY Sec. 46-92. Litter; definitions; prohibitions on litter; penalties for litter and commercial handbill violations; commercial handbill regulations, fines, and rebuttable presumptions; seizure and removal of litter by the city; enforcementl appeals; liens. (a) Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: (3) Handbil/ means any handbill, flyer, paper, document, dodger, circular, folder, booklet, letter, card, pamphlet, sheet, poster, sticker, banner, notice or other written, printed or painted matter or object that conveys any information, except that "handbill" shall not include a newspaper or its contents. (4) Commercial handbill means any handbill that conveys any information about any good or service provided by a business. *rf* (8) fiiltfrt-rly'yray means and includes. but is not lirnitecl to. an.v* state. county. or citl'- ownedgublic s_treet. sideu'alk. stre_e_t corner. curb" bic. )'cle path. or pedcstrian rv?lklvay'. *{<rF (g) Prohibitions on commercial handbill distribution. (.1) 1{i,rloric,4rerz,y. It shall be unlawlul lbr any persr:rn to distribute commercial handbills on the.:right.9_t-E-.ay in any of the.fo_llorving areas..i.n.the City of lr'liami []each: a. 'fhe area houndecl on the north b.v-. but not including. 17th Street. bounded on the east by. but not includirrg. Washinqton Avenule. bouncled on the south by Lincoln Lane, and bounded on the west by Alton Road; 61 b. Ocean Drive liorn 5th to 15th Streets; c. Ciollins Avenue frorn 5th to 15th Streets; d- _Washington Avenue from 5th to_ Irincoln R.o_ad; e. __ All cross streets and h.vstreets bouncled en the north by I5th Street. bounded on the east b), Ocean Drive. bounded on the south by 5th Street. and bounded on the r.vest b.v Washington Avel f. Espafiola Way fiom llenns-v*lvania Avenue to Collins Avenue: and g. Lurnmus Park. 'l'he_ prohibitions inlhis sqbsec_ti_cr_n (g) shall appl-v- to the distribution _oJ celnryercial handbills on an-v* riqht-of.r.vay. including.but not limited to an), doorway. stairrvay. rvindorv or other orrening ol a buildinq abutting on or adjacent to surch right-of-rvay-. All righl.s-ol'-way identified as prohibited areas shall include the entire rvidth of the righrof'-way" includinq all sidervalks. flJ ntfn;r;orts, fUe l @ I+egister l,list in *epcndix--A A- eity rnanager during wl*eh sne sr *r+ore of the folle*'i*rg oeeur: @i@ (iii) l{stel oeeupane,v levels are an,tieipateel te be gre*ter them 75 pereene (iv) Il4utual *ider-othe- assistanee &srr+-strtside ageneies isreqt*ired te des+ination;-** @lon' e, *rtlrr-r#wry me*ns and-ineltreles; bt* is *ot-{i+r+ited to; a+r.v state; eotrnty= or eit), swned putrlie street, slelewalk; street eomer, eurb; bieyele patl-r; er 62 r+et$e.di**{buted+ d€lperieds-trr+Oeean (?3) Sidewalk cafes. Commercial handbills shall not be distributed on the right-of-way: a. Within 20 feet in any direction from the outside perimeter of any approved sidewalk cafe (as indicated in the approved site plan attached to the city-issued permit); and b. On any right-of-way within the approved sidewalk cafe. Q1) Beaches. Commercial handbills shall not be distributed on any city beach east of the dunes. *,trk SECTION 2. CODIFICATION It is the intention of the Mayor and the City Commission of the City of Miami Beach, and it is hereby ordained that the provisions of this Ordinance shall become and be made apart of the Code of the City of Miami Beach, Florida. The sections of this ordinance may be renumbered or re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word. SECTION 3. REPEALER All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 4. SEVERABILITY If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. 63 SECTION 5. EFFECTIVE DATE PASSED and ADOPTED this _ day of _,2014. This Ordinance shall take effect on the _ day of _,2074. ATTEST: Philip Levine, Mayor Rafael E. 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