HomeMy WebLinkAboutOIG No. 26-13 G.O. BOND Quarterly Report
Joseph M. Centorino, Inspector General
Page 1 of 8
TO: Honorable Mayor and Members of the City Commission FROM: Joseph Centorino, Inspector General
DATE: July 16, 2026 RE: Inspector General G.O. Bond Quarterly Report OIG No.: 26-13
Introduction This report is written in compliance with Section 2-256(j) of the City of Miami Beach Code, which requires the Office of the Inspector General (OIG) to prepare and submit to the City Commission
on a quarterly basis a written report concerning the planning and execution of the 2018 General Obligation Bond Program, including progress reports, financial analysis, and potential risks. The review is based on official city records, OIG attendance at oversight committee meetings, interviews with staff and other department personnel as well as regular discussions with the Program Director. This report is intended to provide the Mayor, City Commission and the public
with useful information regarding the implementation of the G.O. Bond projects to date. Status The execution of the G.O. Bond continues to progress. 56% of funds allocated to Tranches 1 and 2—totaling $146.5 million of the $261.8 million allocated—have been spent or encumbered. Of
the 47 active tranche projects, 94% are either complete or currently underway, reflecting significant advancement toward completion of the voter-approved improvements. For Tranche 1, 86% of all appropriated funds ($138.25 million of $160.73 million) have been spent or committed, and 96% of subprojects are either complete or active (88 of 92 subprojects). Approximately 69% of total project value is either complete or under construction, demonstrating significant momentum. In contrast, Tranche 2 projects are at earlier stages: only 8% of funding ($8.23 million of $101.1 million) has been spent or encumbered, and 60% of subprojects (9 of 15) are active. In a recent report to the Oversight Committee, the G.O. Bond Director highlighted the status of
key projects, including the Chase Avenue Shared Use Path, West Lots, Fire Station #1, Log Cabin, 72nd Street Community Complex, and several infrastructure and park improvements. Notably, the Log Cabin project is on hold as of April 2026, and the Chase Avenue Shared Use
Path has been cancelled (A more detailed review of these projects is included below). The Oversight Committee reaffirmed its responsibility to monitor project timelines, budgets, and scope, to ensure that the City maintains efficient and transparent use of G.O. Bond funds. Overall, the
current status reflects steady advancement in the G.O. Bond program, with most projects either
Docusign Envelope ID: 4801E11B-0F4A-8819-8353-93F5472780D9
Page 2 of 8
completed or actively progressing, with ongoing oversight to keep the program in alignment with voter expectations and City priorities. Waste of G.O. Bond Funds
In its reporting, the OIG has highlighted project delays or wasteful practices that have jeopardized completion of planned projects. The OIG has consistently reported on the wasteful practices of starting and stopping projects and changing project scope late in the design phase, despite the prodding of the G.O. Bond Oversight Committee and the recommendations of the City Administration, usually as a result of objections by a small minority of residents. These actions have cost the City millions of dollars. This inefficient use of taxpayer funds, especially with an existing funding shortfall for G.O. Bond projects and a proposed $25 million reduction in the current service level budget, was detailed in OIG 25-15. Project #45: Fire Station #1 It was reported in OIG No. 25-15 that the original contract for design services for the Fire Station #1 project (total estimated cost $3.36 Million) was $999,917, which covered the planning, design, studies and preparation of the design criteria package. The contract was amended twice to add
additional design services in the amounts of $571,037 and $93,669, respectively, bringing the total design contract amount to $1,664,623. The Commission then voted to redesign Fire Station #1 to fit into another location, adding an additional $2,611,752.34 and bringing the total amount
of the contract to $4,276,375. This was done despite the projections by the Administration that redesigning for a new location would cost an estimated $15-20 million and finding additional funding sources would be difficult.
The total Tranche 1 appropriation for the fire station from the G.O. Bond program was $5,746,058. The design and scope changes left the City with only $477,729.76, with staff facing direction from the Commission to spend additional time and money to find a new site for the project, a fruitless search that led to the original location being chosen after years of delay. An additional 500 City staff hours were consumed for this purpose. The OIG concluded that the Fire Station #1 project was an example of “waste” as defined in the GAO standards and questioned the City’s ability to execute the project in a responsible and accountable manner. The OIG suggested a process reform that would require a super majority vote of the Commission to alter a project after it has passed a 30% to 60% design phase.
Stop the Pause Ordinance
Following the OIG suggestion during the protracted Fire Station #1 project, the Mayor and Commission acknowledged, through a Commission Resolution, the importance of ensuring that the City avoid unnecessary interruptions or modifications on “critical infrastructure projects” once
they have reached advanced stages of design. The Resolution was coupled with the initial adoption of a "Stop the Pause" ordinance creating higher voting thresholds for actions that could pause, delay, stop, or materially modify critical infrastructure projects costing over $1 million at advanced design stages. Although the ordinance did not apply to non-infrastructure projects such as Fire Station #1, the
OIG supported the ordinance as a positive step toward greater fiscal responsibility and suggested that its successful implementation could lead to its extension to cover additional projects. This occurred recently, after the conclusion of the Fire Station #1 saga, when the Commission voted
Docusign Envelope ID: 4801E11B-0F4A-8819-8353-93F5472780D9
Page 3 of 8
final passage of an amended “Stop the Pause II” ordinance, applying it more expansively to capital improvement projects over $1 million in late design stages. The amended ordinance also added
provisions to increase resident awareness and budget transparency whenever these votes should occur.
During the past quarter, two projects which would have been covered under the amended “Stop the Pause II” ordinance, had it been passed earlier, reflect the continuing costly decision-making
at late design stages: the abandonment of the 34th Street Shared Use Path (budget of $2,270,075 and 90% designed with permits obtained) and the suspension and possible relocation of the Log Cabin (budget $1,076,000 and 90% designed with permits in process). Both projects were
highlighted by the OIG in previous reports as examples of wasteful practices. Project #43: Chase Avenue/34th Street Shared Use Path
In July 2015, the City Commission passed a Resolution adopting the Miami Beach Transportation Master Plan, based on a prioritization strategy that placed pedestrians and bicycles ahead of private automobiles. The Chase Avenue and 34th Street Shared Use Path was a top priority in the Master Plan. In 2018, the City engaged a consultant to prepare the Chase Avenue and 34th Street Pedestrian and Bicycle Feasibility Study. Public meetings were conducted to present the initial design to the community. The community expressed support for the project with the condition that the City narrow the design of the path in front of one residence. On October 16, 2019, the City Commission adopted a Resolution approving the 34th Street project. In May 2021, the City hired a consultant for design services and construction documents based on the concept that had been approved by the Commission and supported by the residents. The contract for the original design services was $179,837.
The Design Review Board considered the project and recommended a series of modifications to enhance safety which were incorporated into the design. The City applied for an FDOT grant in the amount of $495,075. FDOT reviewed the design and determined that the project did not meet
criteria under which an application for a variance could be submitted due to the narrowing of the path in the one location done to accommodate a single resident. The City agreed to make the path uniform and received the grant.
On December 14, 2022, the City Commission adopted a Resolution directing the City to report to the Public Safety and Neighborhood Quality of Life Committee (PSNQLC) on a quarterly basis regarding this project. In May 2023, the PSNQLC heard an update and directed staff to explore alternatives to the shared use path as designed. In July 2023. Staff advised Committee members that redesigning the project would affect its schedule and possibly jeopardize the grant. In response, the Committee directed CIP and the Transportation and Mobility Department staff to meet with the consultant and request a review of different design options. Subsequently, staff reaffirmed that the original design was the best and safest one for the community. The matter was scheduled to be heard by the Commission on December 13, 2023, but instead of
voting on a resolution approving the design and authorizing the administration to proceed with the invitation to bid and subsequent construction, the Commission again referred the item back to the PSNQLC.
On January 31, 2024, the Commission passed a Resolution approving a new design option for the project and authorizing the administration to modify the design consultant's scope to include the revision of the construction documents to reflect the new design. This triggered a review of
Docusign Envelope ID: 4801E11B-0F4A-8819-8353-93F5472780D9
Page 4 of 8
the newly proposed design and a renewed permitting process. The project had been considered “shovel ready” but this decision delayed the project nearly a year.
FUNDING SOURCES CURRENT BUDGET ENCUMBRANCES OTHER EXPENDITURES TOTAL ENCUMBRANCES & OTHER EXPENDITURES
BALANCE
3 Cent Local
Gas Tax $945,000 $0 $0 $0 $945,000
Grant Fund
(FDOT) $495,075 $0 $0 $0 $495,075
2019 GOB
Neighborhood $830,000 $231,350 $350,198 $581,548 $248,452
TOTALS $2,270,075 $231,350 $350,198 $581,548 $1,688,527
The Oversight Committee expressed concern regarding the delays caused by Commission action, as the project had undergone thorough vetting and received extensive public input over many
years. The Committee urged the Commission to move forward with the project as promised to the residents and highlighted the wasteful financial consequences, including the possible loss of grant funding, cost escalations and expended staff time associated with unreasonable delays--the same
concerns expressed by the G.O. Bond Oversight Committee regarding the Fire Station #1 project. After the repeated directions to staff to change the design of this project, the Commission unanimously voted on February 25, 2026, to cancel the project. The Resolution stated that the Mayor and Commission “find that continuation of the Project is no longer in the best interests of the City and its residents and that the Project should be discontinued and terminated,” and that they “find that discontinuation of the Chase Avenue Project will result in an estimated savings of $1,191,776 to the City. The “savings” referred to was, in part, the unused money raised from the 3-cent gas tax revenue needed to cover the increase costs associated with the redesign of the project. Of the $830,000 in budgeted G.O. Bond funds, only $248,452 remained at the time of the Commission’s decision to cancel the project. This was included in the “savings” referred to in the
Resolution. At the most recent G.O. Bond Oversight Committee meeting held on July 9, members learned
that due to the decision to cancel the project, $581,548 of G.O. Bond funds was squandered. The remaining $248,452 may be applied to another G.O. Bond project. The Committee also was advised that the FDOT grant in the amount of $495,075 has been lost and is not available for
another project. Finally, the Committee learned that, as there is no other alternative for a Chase Avenue and 34th Street dedicated bike path, the opportunity to create a safe dedicated bike path in this neighborhood no longer exists.
While it may be debatable regarding whether the original project plan should have been approved or whether its cancellation should have occurred, it is not debatable that the handling of this project wasted the City funds and staff time. Once again, substantial City resources were expended but lost due to a change in direction in the execution of an important project. The Stop the Pause II Ordinance may help to avoid such situations in the future. Although public outreach by the City is consistently robust on major projects, the public vetting of important capital projects during the planning stage should always be attuned to uncovering, fully discussing, and resolving anticipated objections before the investment of substantial public resources.
Docusign Envelope ID: 4801E11B-0F4A-8819-8353-93F5472780D9
Page 5 of 8
Taken together, the Fire Station#1 and Chase Avenue/34th Street projects constituted a combined waste of nearly $8 million of taxpayer funds. Project #27: The Log Cabin
The Log Cabin project is the latest example of the Commission starting, stopping, and changing the scope of a project late in its design phase, based on objections by a small minority of residents unrelated to construction issues; in the face of protestations from the G.O. Bond Oversight Committee; and against the recommendations of the Administration. On June 6, 2018, the Commission passed a Resolution to reconstruct, restore and designate the Log Cabin, remnants of which were in storage, as a historic site to be used as a mixed-use community space in North Shore Oceanside Park. The original location of the structure at 8128 Collins Avenue was a short distance away from the park. The park had been deemed a more suitable location for its reconstruction due to its easier access to water, sewer, and electrical services, as well as proper elevation for the structure. G.O. Bond funding was planned in Tranche 2 for the project. The original plan was to begin the
project in 2022 and complete it by 2025. Due to delays in other G.O. Bond projects, however, Tranche 2 funds could not be accessed until 2024.
On April 3, 2024, a Resolution was passed unanimously on the consent agenda by the Commission, directing the Administration to prioritize the reconstruction of the North Beach Historic Log Cabin in North Shore Oceanside Park, move the project from Tranche 2 into Tranche 1 of the G.O. Bond program, and identify and quantify funding gaps to be addressed during the 2025 fiscal year budget process. As a consequence, a funding swap in the amount of $1,076,000 occurred with the consent of the Oversight Committee, temporarily transferring funds from Project #13 North Shore Track and Fields and Project #30 Skate Park. On May 15, 2024, the Commission adopted a Resolution approving the sixth amendment to the Capital Budget for Fiscal Year 2024, providing, among other things, G.O. Bond funding in the amount of $1,076,000 necessary to commence the Log Cabin Project. On February 26, 2025, the Log Cabin was again discussed and, by acclamation, sent to PSNQLC for monthly updates. At the Commission meeting, staff was told that they should act with urgency since “we know where we want to put it,” referring to the prior Resolution putting the Log Cabin in
North Shore Oceanside Park. On April 9, 2025, when the project was discussed at a PSNQLC meeting, the Director of CIP,
David Gomez, advised the committee that a purchase order and notice to proceed for design services had been issued and he anticipated it would take eight months to complete. The design would have to go to Design Review Board and then through the permitting process, but the expectation was that the project would go out for bid in early 2026. On July 10, 2025, the Land Use and Sustainability Committee discussed the future programming of the west lots, located across the street from the North Shore Oceanside Park, where the Log Cabin was originally located. There was no mention during the discussion of relocating the Log Cabin to the original site. The design services continued for its location in the park.
The item was heard again on September 10, 2025, at the PSNQLC to discuss the use of the Log Cabin as a community pantry. Committee members reversed previous positions, stating that the
Docusign Envelope ID: 4801E11B-0F4A-8819-8353-93F5472780D9
Page 6 of 8
community wanted it back in its original location in the west lots across from the park. The reasoning of the committee was unrelated to design or construction issues but rather an emotional
attachment held by some residents to the former site of the structure. One committee member mentioned the increase in cost and schedule delays if the project were paused, and as the Committee did not have the authority to direct the staff to pause the project, design services
continued at the previously designated park location. The next day, September 11, 2025, the project was deferred at the Design Review Board. On September 17, 2025, the Commission unanimously approved a consent agenda item without discussion to refer the Log Cabin project to the PSNQLC to discuss its relocation to the original site on the west lots. Design activities continued for the park location. On November 25, 2025, the Design Review Board approved the project at the park location.
On December 17, 2025, on the consent agenda, the Commission referred the Log Cabin project to FERC “to reconstruct the North Beach Historic Log Cabin at its original location at 8128 Collins Avenue; and further, direct the Administration to take all necessary steps to proceed with this new
directive with all deliberate speed.”
On March 30, 2026, the PSNQLC heard items related to the Log Cabin, including whether it should be relocated across the street from the park. There was discussion that residents wanted it moved to the original location. At the time of the meeting, the project had reached 90% design
for the park location and was scheduled to go out to bid in the summer of 2026, just a few months after this meeting. The Committee was also advised that estimates showed it would cost more than $1 million to move the Log Cabin back to its original location across the street, delaying the
construction further because the project would have to be completely redesigned.
In a memo to the Committee, the Administration detailed, in a Fiscal Impact Statement, the reasons why it did not recommend the relocation of the log cabin to its original site and incurring an estimated additional cost of $1,106,100.00:
1. The Commission’s December 17, 2025 Resolution: The Commission has directed the Administration to prepare the FY 2027 budget based on the projected rolled-back millage
rate. This directive may necessitate expenditure reductions of up to $25 million from the
current service-level budget before any consideration of enhancements.
2. Escalating Capital Needs: The City continues to face an increasingly unfunded Capital
Improvement Program, placing additional pressure on long-term financial sustainability.
3. State-Level Tax Policy Risks: The State is contemplating measures to eliminate or significantly reduce property taxes. Given that 62% of the General Fund revenue is derived from property taxes, this poses a substantial risk to the City’s fiscal stability.
The administration further advised the Committee that these fiscal considerations were essential
to ensure that decisions regarding the relocation of the Log Cabin to its original site on the west lots align with the City’s broader long-term financial stability and strategic priorities.
On April 22, 2026, despite the additional costs associated with relocation, the delays in project delivery, the increasingly unfunded capital improvement program, the necessary expenditure
Docusign Envelope ID: 4801E11B-0F4A-8819-8353-93F5472780D9
Page 7 of 8
reductions as a result of the rolled-back millage rate, and the Commission’s prior acknowledgement that “Stop the Pause” was prudent legislation that should apply to projects such
as the Log Cabin (90%designed and over $1 million budget), the Commission unanimously passed a Resolution on the consent agenda to pause all work by the design consultants related to the Log Cabin project, including any work previously authorized by prior City Commission
resolutions, in order to evaluate the potential of incorporating the Log Cabin into the larger west lots project. The decision by the Commission to further delay this project is at odds with its prior direction to staff to act with urgency to build the Log Cabin in North Shore Oceanside Park. If it is determined that relocating the Log Cabin is possible, the project will need to be redesigned, presented to the Historic Preservation Board, and funded from additional sources, assuming those funds are available. Relocation of this project will result in a financial detriment to the City as well as another extensive delay in completing a G.O. Bond project that could have been concluded by now.
On May 6, 2026, the item was heard at the Finance Committee. Committee members were advised by the City Manager that the Administration was concerned with the time and expense of changing the design to carry out the relocation of the Log Cabin to its original site within the west lots. The May 6 memorandum stated that such relocation would require substantial redesign, new infrastructure—including restrooms, plumbing, electrical service, landscaping, and lighting—along with repeated Design Review Board review and extended permitting. The Administration
reiterated that the relocation would add $1,106,100 to project costs, delay completion significantly, and expand the scope beyond what the G.O. Bond program originally funded.
The memorandum again warned that the City is already facing severe fiscal pressures: the Commission directed preparation of the FY 2027 budget under a rolled-back millage rate may
require up to $25 million in reductions; the City has a growing unfunded Capital Improvement Program; and state-level proposals to reduce or eliminate property taxes—representing 62% of General Fund revenue—pose serious financial risk. For these reasons, the Administration
recommended that the relocation not proceed and advised that, if pursued, funding should only be considered within the FY 2027 budget process.
Conclusion:
In total, the combined waste from Fire Station #1, the 34th Street/Shared Use Path, and the Log
Cabin—given the potential of an added $1.1 million as a result of the Log Cabin relocation—now approaches $9 million, representing avoidable expenditures resulting from inconsistent direction, unnecessary redesigns, and pauses issued in conflict with professional recommendations and established project timelines. Such practices weaken public confidence, delay vital community improvements, and jeopardize the financial stability of the G.O. Bond program itself. At a time when the City is struggling to find ways to cut its budget, including hiring freezes, mandatory department reductions of 5%, and other strategies, it is incumbent on City leadership to exercise fiscal restraint. City taxpayers deserve no less.
The amended “Stop the Pause II” ordinance unanimously passed by the Commission on June 24, 2026, contains an important requirement that any motion to stop or pause a project that meets the 90% design completion milestone with an estimated construction cost of $1 million or more (as did all three of the projects in this report) contain within its text, “a detailed estimate of additional costs expected to be incurred due to any pause, delay, stop or material modification…”
Docusign Envelope ID: 4801E11B-0F4A-8819-8353-93F5472780D9
Page 8 of 8
The OIG further recommends that any such vote on a qualifying project be placed on the regular agenda for discussion rather than the consent agenda.
The OIG recommends that, in the wake of the passage of the Stop the Pause II Ordinance and the increased voting threshold needed to relocate the project, as well as the inclusion of a detailed
estimate of additional costs expected to be incurred, that a return to the original plan to locate the project at the North Shore Oceanside Park—for which it has been approved and designed at a location near needed facilities—be strongly considered. The residents of North Beach would be better served if the estimated $1.1 million in additional costs to accommodate the relocation were directed toward a worthier purpose in North Beach. The OIG also recommends reaffirming the advisory authority of the G.O. Bond Oversight Committee to ensure that capital project decisions are aligned with the City’s fiscal constraints. Doing so is essential to restoring public trust, safeguarding public resources, and delivering
voter-approved projects responsibly and efficiently.
Respectfully submitted, ________________________________ ___________ Joseph M. Centorino, Inspector General Date ________________________________ ___________ Jani Kline Singer, Investigator Date cc: Karen Rivo, Chairperson of the G.O. Bond Oversight Committee Eric Carpenter, City Manager David Martinez, Assistant City Manager David Gomez, Director of Capital Improvement Projects
Thais Vieira, Director, G.O. Bond Program Ricardo Dopico, City Attorney Jason Greene, Director of Finance Tameka Otto Stewart, Office of Management and Budget
OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach
1130 Washington Avenue, 6th Floor, Miami Beach, FL 33139
Tel: 305.673.7020 • Hotline: 786.897.1111 Email: CityofMiamiBeachOIG@miamibeachfl.gov
Website: www.mbinspectorgeneral.com
Docusign Envelope ID: 4801E11B-0F4A-8819-8353-93F5472780D9
7/16/2026 | 2:10 PM EDT
7/16/2026 | 2:17 PM EDT