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96-21883 RESO Incomplete CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 CITY OF MIAMI BEACH COMMISSION MEMORANDUM NO. '7 D - q /,p TO: Mayor Seymour Gelber and Memben of the City Commission DATE: February 7, 1996 FROM: 1/ Jose Garcia.ped.....a, ",~K City Manager ' I,' REPORT ON T.1i' CAPITAL IMPROVEMENTSI FINANCE COMMITTEE MEETING OF WEDNESDAY, JANUARY, 31, 1996. SUB.JECf: A Capital Improvements/Finance Committee meeting was held Wednesday, January 31,1996, in the Mayor's conference room. Commissioner Sy Eisenberg, Chairman of the Committee, called the meeting to order. Commissioners Susan Gottlieb, David Pearlson, Martin Shapiro and Nancy Liebman were in attendance. City staff in attendance included: Jose Garcia-Pedrosa, City Manager~ Joe Pinon, Assistant City Manager; Mayra Diaz Buttacavoli, Assistant City Manager; Harry Mavrogenes, Assistant City Manager; Jack Lubin, Executive Assistant to the City Manager/Interim Parking Director; Robert Nachlinger, Finance Director; Dean Grandin, Development, Design and Historic Preservation; Amelia Johnson, Development, Design and Historic Preservation; Vincent O. Akhimie, Public Works Director; Public Works Department; Ruth D. Rahmani, Civil Engineer I, Public Works Department; Michael Alvarez, Streets and Lighting Superintendent, Public Works Department; Alex Taclunes, First Assistant City Attorney; Drew Terpak, Director, General Services Administration; Jacqueline Gonzalez, Middle Beach Director; Kevin Smith, Parks and Recreation Director; and Julio Grave de Peralta, General Services Administration. Others in attendance included: Michael Milberg, Mera Rubell, Alan Orovitz, Elayne Weisburd, Clark Cook, Eric Poms, Jeff Abbaticchio, Ronnie Singer, David Rysinger and Stevan Pardo. 148 AGENDAITEM R In P\ DATE ~ -1.:..9la Commission Memorandum Page 2 February 7, 1996 The following items were discussed: AGENDA ITEM NO.2. Status Re!,ort on the Bass Museum Expansion and Renovation Proiect. Agenda Item No.2 was deferred pending legal opinion. AGENDA ITEM NO.1. Discussion/Evaluation of a PropertY Tax Break for the Elderlv Mr. Garcia-Pedrosa stated that the proposed amendment to the State Constitution to allow an additional exemption of$25,000 in property value for senior taxpayers would result in a general fund reduction of more than $1 million. Commissioner Pearlson said that the proposed amendment is an initiative before the State Legislature. Mr. Nachlinger stated that the analysis considered the 5,455 elderly owner-occupied households in the City which, according to the CHAS Report, have an income less than 80 percent of the median income. Commissioner Pearlson stated that there are financially secure elderly citizens who should not be considered for the exemption. Mr. Nachlinger said that a proposition was approved which limits property value increases to 3%, thereby mitigating the problem in the future. Commissioner Pearlson suggested that Commissioner Shapiro has requested the formation of a Committee to address elderly concerns and that this item should be listed on their fust agenda. He further suggested that the City should support legislation which provides local options. Commissioner Liebman stated that specific criteria must be developed. Commissioner Pearlson stated that Commissioner Penelas proposed a local option where municipalities could elect to provide the exemption. Mr. Garcia-Pedrosa stated that Mr. Diaz-Ballart is a co-sponsor of the legislation in the Senate, and suggested that the City could support a modified form of the proposal. Commissioner Eisenberg suggested that, based on the estimated General Fund reduction of more than $1 million, the City should not support the proposal. Commissioner Pearlson stated that the City send a letter to Commissioner Penelas supporting the proposal, if a local option is included in the proposal and if it provides the ability for the municipality to develop particular criteria. Mr. Garcia-Pedrosa said that the development of the criteria and supporting lal}guage would require a great amount of time and effort. 149 Commission Memorandum Page 3 February 7, 1996 A motion was made and unanimously approved to refer this item to the Commission for consideration. AGENDA ITEM NO.3. Discussion Regardin~ Schedule of Worksho.,p with Parkin\;! and Trans,portation and Ca,pital Improvements/Finance Committee and Nei!!hborhood Groups Recardin!! the Issue of Central Gara!!e Mr. Lubin stated that this item will be discussed at an upcoming meeting of the Parking and Transportation Committee. AGENDA ITEM NO.6. Issuance of Parkin!! Revenue Bonds Mr. NachIinger stated that approximately two years ago the City began identifying a process to construct five garage structures to support the Art Deco District at the following locations: o 7th Street at Collins Avenue (Ballet -V alet Garage) o lOth Street at Collins A venue* o 13th Street at Collins A venue(Extension to the garage) * o 16th Street at Ocean Drive* o 12th Street at Washington Avenue (police Station) The garages at 10th Street, 13th Street and 16th Street are proposed to be funded out of this bond issue as well as the proposed garage at 17th Street and Lenox Avenue. He recommended that, since the City has not finalized an agreement for a movie theater on Lincoln Road, the financing for the garage at 17th Street and Lenox Avenue should be deleted from the bond issue. He said that $12 million in Parking Revenue Bonds were issued in 1988 with an effective rate of 7.5% and that there are approximately $9.7 million outstanding. He further proposed that half of the proposed bond issue be used to refinance the Outstanding 1988 Parking Revenue Bonds which would reduce the city's cost by approximately $100,000 per year through the year 2013. He stated that the effect is approximately an 8% saving to the current cost of the project. He stated that the city will issue twice as many bonds as are outstanding with only an approximate increase of 40% to the existing debt service. He stated that the proposed bond size is $21 Million, but that he will request $24 Million, which will provide $12 Million for the refinancing and $12 MiIlion for new construction. The additional funds approved will provide additional flexibility in case interest rates turn the Wrong direction, thereby increasing the refinancing costs. 150 Commission Memorandum Page 4 February 7, 1996 Commissioner Eisenberg asked what the rates would be owed on the new bonds. Mr. Nachlinger stated that the rate would be 5.5% on the new bonds. He said that the Architectural and Engineering work is virtuaJly complete on the projects and that funding is at this time required to proceed. Commissioner Pearlson asked if a call option has been included in the proposal. Mr. Nachlinger stated that a ten-year call back option has been included. Mr. Nachlinger suggested that the parking garage on Lincoln Road be excluded because it would require the leasing of approximately 500 spaces. He said that only 10% of the spaces in a structure can be leased without the structure being considered taxable. Commissioner Eisenberg stated that a study has shown that an additional 500 spaces are already required for Lincoln Road. Mr. Nachlinger stated that fmancing for additional parking can be obtained after the Movie Theater project is approved and that the other projects, including the meter replacement program, must move forward now. Commissioner Liebman said that the City can control the destiny of the Lincoln Road Theater by controlling the parking garage. The structural condition of the 42nd Street Garage was discussed and Mr. Lubin stated that a study is to be proposed which will detail the required improvements at the 42nd Street Garage. Commissioner Shapiro questioned if parking demands have been analyzed for the Collins Avenue area. Mr. Lubin stated that in 1988 a study concluded that 3000 spaces were required and since then the demand for parking has only increased. Mr. Garcia-Pedrosa asked if there was an operating pro-forma when these projects were originally planned. Commissioner Eisenberg stated that there were pro-forma projections for the Ballet-Valet Garage. Commissioner Pearlson stated that the City should do a careful financial analysis of the garages and determine what percentage will be used by residents. Ms. Gonzalez said that, as the Co-Chair on the Parking and Transportation Committee, she supports the proposed bond issue. She said that a workshop has been scheduled for members of the Parking and Transportation Committee, Parking Department Officials and the City Administration to discuss the development of a comprehensive plan for transportation and parking. She stated that additional construction of parking spaces will encourage vehicular traffic and that other options, such as Park & Ride, Van Pools, electric shuttles must be incorporated into the total plan in order to transport people without additional gridlock. 151 Commission Memorandum Page 5 February 7,1996 Mr. Nachlinger stated that a financial feasibility study report will be included in the proposed bond issue information which will be received by the Commission. A motion was made and unanimously approved that the 1996A Parking Revenue Bonds (for the refinancing of the 1988 bonds) be forwarded to the City Commission with a recommendation for approval. Mr. Garcia-Pedrosa stated that a Master Plan is required in order to determine the space utilization and requirements and the economic feasibility of each project. He stated that the City should proceed with the Police Station garage and with the Parking meter replacement program until the master plan has been developed. A motion was made and unanimously approved that the Parking Revenue Bonds that the matter be referred to the Commission with the recommendation to move forward with the Police Station Garage and the meter replacement program until a master plan has been developed. Commissioner Gottlieb stated that the 17th Street Garage is underutilized and requested that the Administration provide a pro-forma on the costs associated with the 17th Street Garage. AGENDA ITEM NO. 7. Request bv Orange Bowl Committee to Renovate Flaminllo Park Tennis Center Mr. Garcia-Pedrosa introduced the request of the Orange Bowl Committee to renovate the Flamingo Park Tennis Center. The matter was presented by the Administration to the recreational Facilities' Parks Advisory Board at the meeting of January 11, 1996 and that board voted unanimously that the city commit to the amount of funding previously approved in the general obligations bonds ($225,000) and that the Orange Bowl committee be responsible for funding the balance of the additional improvements by seeking support from other sponsors. This is a 2-phase program and the Amt. in question is only Phase I ($600,000) whereas as Phase 2 has a price tag in excess of $3 million. Mr. Smith stated that the Board only discussed the 1st Phase. Mr. Garcia-Pedrosa said that the issue currently before the committee is the request of the Orange Bowl Committee with respect to Phase I with the recommendations of the Parks Advisory Board. Mr. Smith stated that the Master Plan has recommended $225,000 for improvements to the tennis facilities. Commissioner Liebman questioned if Phase II requires changing the footprint of the existing park. It was stated that Phase II, as proposed, requires a change in the footprint. Mr. Clark Cook, President elect of the Orange Bowl Committee, stated thatthe Rolex Orange Bowl International Tennis Championship is the top Junior Tennis tournament in the world and that it has 152 Commission Memorandum Page 6 February 7, 1996 been held at the same site for 49 years. He further stated it has over 1000 participants from 80 countries around the world and that it provides an economic impact to Miami Beach of approximately $ 5.3 million. He stated that Miami Beach has been a wonderful supporter of the tournament. However, he stated, it must continue to improve otherwise Rolex will relocate the tournament. He requested that the City move forward with Phase I. Mr. Poms stated that a proposal was presented to Commissioner Pearlson and the City Manager in November of 1995 which consists of three phases was presented. Phase one(immediate site issues) has been completed and the subject now is really Phases II and III. The primary focus at this time is Phase II which is the Field Court renovation that involves creating walk ways for coaches and participants and spectators to view the players in action. It was stated that the proposed improvements would make it much more Media user friendly. Mr. Cook said that this year there will be a one hour ESPN show and that the facility must be upgraded in order to remain competitive. Commissioner Liebman stated that there is Phase II support from the community. She said that for the next phase, because of the sensitivity required because it is in a residential neighborhood, and it's a local park, she thinks that they need to hear more about that before we make any determination. Mr. Cook stated that only Phase II approval was being sought at this time. Commissioner Pearlson stated that the Orange Bowl Tennis tournament is there 10 days a yr. but Our residents use it on a day by day basis. The utilization there is incredible. I think it must be viewed in terms of improvements and impact it has on our citizens and the utilitization. Mr. Smith stated that the facility has a very high usage. Commissioner Liebman said that, regarding a 3,000 seat stadium, she remembers the history of the Lipton which now is a major event. This is a residential community. The stadium cannot take over the community. The community will be very involved in the Phase III decision. Mr. Poms stated that this is a best case scenario. A Press Box facility is already there and the desire will be for an event like this to have a stadium that has bleachers all around. He stated that at the present time there are only bleacher sections and that in order to match other playing facilities around the world, it needs to have facilities such as a training room, bathrooms, a player lounge and locker rooms. He stated that the tournament has been ongoing for 49 years. Commissioner Liebman stated that renovations which produce a footprint greater than the existing one will be unacceptable. Commissioner Gottlieb question the funding requirements and Commissioner Pearlson stated the Phase being considered required $559,630 and that $225,000 has been identified for the project. 153 Commission Memorandum Page 7 February 7, 1996 Commissioner Gottlieb questioned if the Orange Bowl Committee would provide the incremental difference. Mr. Cook stated that Rolex already allocates approximately $200,000 per year and will probably be unwilling to allocate more funds for this tournament. Commissioner Pearlson stated that the City has been approached by Reebok to pay for improvements in exchange for their name being placed on the back board of the Court and told Mr. Cook that the two alternatives are to value engineer the project to $225,000 or to identify other funding sources. There was some discussion about how to promote the tournament and a black tie affair in celebration of the 50 yrs of the tournament was mentioned. Commissioner Pearlson stated that the County should be approached for funding. A motion was made and unanimously approved that the item be referred to the Commission with a recommendation that $ 225,000 be allocated and that the Administration be directed to explore additional funding sources. AGENDA ITEM NO.4. Pro~ess Rcwort on Bridfl:es A Progress Report on the bridges was given by Mr. Pinon. He stated that Mr. Liu prepared report which estimates a $2,445,000 cost of repair and a $12,883,000 cost of replacement for all the bridges, including the footbridges. He further stated that the creation of a Bridge Maintenance Division within the Public Works Department has been discussed. He introduced Ms. Rahmani, who stated that she met with Mr. William Cary, Historic Preservation Coordinator, and that a telephone conversation was held with Ms. Laura Kammerer, a State Historic Preservation Officer with the State Bureau of Historic Preservation for the purpose of identifying possible funding sources for bridge restoration. Ms. Kammerer stated that funding from the State Bureau of Historic Preservation would only be available if the City was restoring bridges without the use of Federal Department of Transportation (FOOT) funds. Ms. Kammerer further stated during the conversation that she was scheduled to meet with FDOT Officials on February 7, 1996 to encourage FDOT to pursue a restoration approach on the Sunset Island Bridges because the Bureau has determined that the Sunset Isle Bridges are eligible to be listed in the National Register as Historically Significant Structures. Ms. Ralunani stated that the Historic Preservation Board Agenda for February 8, 1996 includes an item that recommends the consideration of the Sunset Isle Bridges for historical preservation designation. Commissioner Liebman stated that the entire bridge collection must be taken into consideration. Commissioner Gottlieb questioned the time-frame for bridge repair and stated that new repair methods must be evaluated. Mr. Pinon stated that repair estimate reported does not take into account such repair methods as the Carbon Fiber and Epoxy repair. Mr. Pinon stated that the LAP Certification process is well underway and that the successful 154 Commission Memorandum Page 8 February 7, 1996 completion of the certification wold enable the city to borrow funds for repair interest free. He stated that Mr. Abreu has assured the City that he would continue to work with us to meet our need. Commissioner Pearlson stated that the Administration has made great progress but further refmement is required in order to have a viable bridge repair/replacement plan. Mr. Hernandez stated that FDOT is considering the placement of additional Miami Beach Bridges on their replacement program for the next couple of years, thereby reducing the estimated repair estimate. Mr. Garcia-Pedrosa stated that no city the size of Miami Beach has ever received this much assistance from FDOT. Mr. Pinon reported that the temporary bridge for La Gorce is scheduled to be placed starting the second week of February. Commissioner Liebman cautioned that sensitivity to the aesthetics must be stressed to FDOT and Mr. Pinon stated that FDOT has shown sensitivity in the design of the La Gorce Bridge by working with the community. However, he cautioned, that if the designs are changed considerably from the standard, a delay in construction will result. AGENDA ITEM NO.5. Fundinl!: Sources for Venetian Causewav Improvements Mr. Nachlinger reported that the project has various components as follows: Beautification Roadway Improvements Water Sewer Stormwater Underground Utilities Total Project $3,936,000 $5,273,000 $230,000 $201,000 $2,300,000 $4.431.000 $16,371,000 He stated the following funding sources have been identified: Roadway Improvements - Water Improvements- Sewer Improvements- Stormwater Improvements - Gas Tax Water and Sewer Funds Water and Sewer Funds Stormwater Utility Bond Fund (From the upcoming bond issue to fund $30 million in Stormwater improvements citywide.) Assessment to homeowners at approximately $175 per linear front foot. Underground Utilities 155 Commission Memorandum Page 9 February 7, 1996 Mr. Rysinger addressed the beautification elements. He stated that Urban Resource group was asked to develop a list of preferences for the residents and to identify associated cost estimates. He stated that the estimates do not asswne efficiency of scale and are stand alone estimates. He presented an overview of the landscaping, intersection and streetscape improvements. Mr. Pardo stated that Dade County has been requested to fund the repavement of the Causeway. Mr. Garcia-Pedrosa stated that the Dade Boulevard intersection has been added to the concept. Mr. Pardo recommended that the County, the City, and the residents will each be responsible for their fair share. The Committee directed the Administration to prepare an RFP for presentation to the City Commission on February 20,1996. The meeting was adjourned at 6:45 p.m. JGP\VOA\DR\RDR\zg c:\rdrlcmlcip\caputlll.min Attachments 156