Loading...
4 - After Action Minutes of the February 22, 2023 Commission Meeting After Action Minutes of the February 22, 2023 Commission Meeting February 22, 2023 City of Miami Beach Hybrid Commission Meeting/RDA/Presentations and Awards C2 D REQUEST FOR APPROVAL TO ISSUE REQUEST FOR QUALIFICATIONS (RFQ) 2023- 120-ND CONSTRUCTION MANAGER AT RISK (CMR) FOR THE 72ND STREET COMMUNITY COMPLEX. Capital Improvement Projects/Procurement ACTION: The request was approved. The Item was separated from the Consent Agenda by Commissioner Rosen Gonzalez for discussion. A motion was made by Commissioner Arriola to approve the request, seconded by Commissioner Richardson. Vote: 6-0; Against: Commissioner Rosen Gonzalez. David Martinez and Alex Denis to handle. Commissioner Rosen Gonzalez explained the Item regarding the 72nd Street Community Complex with the Olympic pool on top. $55 million were initially funded from General Obligation (G.O.) Bonds for the garage, and the City Commission approved up to $100 million in funding to complete the project. The estimate came back higher than the expected amount, and now this Item is to place it back out to bid at twice the price that the electorate initially intended to spend. CIP Director David Martinez explained that this is a standard procurement procedure used in the City to deliver certain types of projects with success such as the South Pointe Pier. It is not a process always used, but it is being used for Lincoln Road. To Commissioner Rosen Gonzalez’s question, he stated that a Construction Manager At-Risk (CMR) is selected on qualification by the City. The City and CMR work as a team during pre- construction design and provide feedback on constructability, cost, and value engineering as the design is developed. The CMR’s design procurement will come back to the City Commission for selection in March or April. Near completion of the bidding, and this is a recognized process, the CMR has a negotiated fee that would be put on the trades needed for the entire project. It is a process monitored by the City in conjunction with Procurement and CIP departments. They take the documents and bid them out to all disciplines in the building such as plumbing, electrical, and concrete, including the pool. They receive sealed bids for them and do a mini bid for the trades. Once compiled, the City works with them to select the best one and develop what is called a Guaranteed Maximum Price (GMP), which comes back to the City Commission upon completion for approval or not in the competitive process for different trades. That is also the CMR procurement method being used for the Fire Station. Commissioner Rosen Gonzalez explained that by using this CMR the City is making sure that the contractors are weighing in on the design process so they do not get a design they cannot afford. CIP Director Martinez added that they are going to be designing to a budget. They have a budget in mind that is in the parameters approved by the City Commission, and they will work towards that. When they bring back the selection of the CMR on qualification, they are only authorized to negotiate pre-construction services, which is a small fraction of the total cost of the construction so they can engage and get paid for providing support as the project is developed. Once they get to develop the GMP it will come back to the Commission for a vote of approval or disapproval. Commissioner Rosen Gonzalez wanted to know what they are giving up in this new process because construction prices are what they are. She saw the scope; what is the difference between the scope in the CMR for the bid and the original scope of the project? What is the City losing? February 22, 2023 City of Miami Beach Hybrid Commission Meeting/RDA/Presentations and Awards David Martinez, CIP Director, stated that in 2018 the voters approved this project. As part of it, some elements composed the project, and that is the guiding principle behind what they are going to be seeking. As part of the previous procurement process for a design- build firm, the design criteria were professionally prepared criteria packaged so they are using that as the basis of design that will be used as a guide in terms of a new design consultant to be selected, and they will try to implement into a final design and achieve all the elements. If they get to a point where they cannot squeeze any more dollars and they are still over budget he would come back to the City Manager and recommend they evaluate what is driving the extra cost and will provide recommendations on how to bring it back down. He cannot say what the solution is, as it has to go through its process including feedback from the CMR to try to control scope and price. Commissioner Rosen Gonzalez separated the Item so that she could record her NO vote. The voters approved $55 million in construction, but they did not agree to spend $100 million on construction; now the budget has doubled. She hopes they keep the Olympic size pool which is what the voters wanted. She is not in favor and feels the project is out of control in terms of the cost to taxpayers. She also believes taxpayers are paying for the parking waived for certain developers going up in the Town Center project. As these massive buildings go up they are going to subsidize parking costs. This is morally wrong. She is opposed to this. In answering Vice-Mayor Meiner, CIP Director Martinez added that this will come back to the City Commission for a designer selection, and if approved today the CMR and pricing will come back for approval. Commissioner Richardson put on the record that it was clear to voters that $50 million was not the complete price. They can bond parking out and this is going to be vetted again. It was heard on December 6 to move forward and will continue to come back if additional funds are needed. It is only a design. He appreciates the support in keeping moving it along. Regarding parking, last month the Commission agreed to subsidize parking in the West Avenue area to help residents there. He does not agree that the City is giving any subsidy to developers in North Beach. All the parking will be paid to park once the garage is built. This is a terrific Item. He appreciates the new direction the Administration has taken. He fully supports it. Commissioner Arriola added that since this was approved by City voters in 2018 construction costs have soared to unprecedented levels in the past few years. It is incumbent to value engineer when they can, but ultimately try to deliver to voters what they voted for. Last month they found ways to fund the shortage in Bayshore Park and that is the same amount in that it has doubled the cost. However, this project can pay for itself when it generates revenue, unlike a park. The Commission will vote on these issues again when there are budget shortfalls. This project was one of the anchor projects in the General Obligation (G.O.) Bond and it is incumbent upon the City Commission to make the numbers work to the best of their ability. David Martinez and his team have been working extremely hard in finding solutions. He thanked them for that, but he thinks this is appropriate, and they will find ways to get it done for North Beach residents and all Miami Beach residents. Commissioner Arriola made a motion to approve the request, seconded by Commissioner Richardson. Voice vote: 6-1: Opposed: Commissioner Rosen Gonzalez. February 22, 2023 City of Miami Beach Hybrid Commission Meeting/RDA/Presentations and Awards C7 A A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A MODIFICATION TO THE CONTRACT AWARDED AT THE DECEMBER 14, 2022 COMMISSION MEETING (ITEM C2 C) PURSUANT TO INVITATION TO BID (ITB) 2022-310-AY FOR BAYSHORE PARK TO BUSLAM COMPANY AND PARTNERS, INC. TO REMOVE THE SCOPE OF WORK AND ASSOCIATED COST OF THE CONSTRUCTION OF THE LAKE (RESILIENT FLORIDA GRANT), AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE CONTRACT, AS MODIFIED, AND FURTHER, AUTHORIZING THE CITY MANAGER TO ISSUE A CHANGE ORDER TO REINSTATE THE CONSTRUCTION OF THE LAKE SCOPE AND ASSOCIATED COST, SUBJECT TO AND CONTINGENT UPON CITY COMMISSION APPROPRIATION OF FUNDING THEREFOR. Capital Improvement Projects Deferred 2/1/2023 - C7 D / Exp: 6/1/2023 ACTION: The Item was deferred to the March 27, 2023 City Commission Meeting. Rafael E. Granado and Lilia Cardillo to place on the agenda. C7 D A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER AND APPROVING THE SELECTION OF WELLS FARGO SECURITIES, LLC, AS SENIOR MANAGER, ALONG WITH GOLDMAN SACHS & CO., LLC, AND ESTRADA HINOJOSA & COMPANY, INC., AS CO-MANAGERS, TO PROVIDE UNDERWRITING SERVICES FOR THE MIAMI BEACH ARTS AND CULTURE GENERAL OBLIGATION BONDS SERIES 2023 THAT THE CITY ANTICIPATES WILL BE ISSUED IN 2023. Finance ACTION: Resolution 2023-32495 adopted. The Item was separated by Vice-Mayor Meiner and Commissioner Richardson. Motion made by Commissioner Fernandez to adopt Resolution, seconded by Mayor Gelber. Vote: 6-0. Recused: Vice-Mayor Meiner. Jason Greene to handle. Vice-Mayor Meiner stated that he needs to recuse himself from the Item and read a statement for the record. (See Form 8B.) Commissioner Rosen Gonzalez stated that she has a question regarding the current interest rate and the cost to residents. At the time this was approved she believes it was $21 per $100,000 and she would like to understand what the interest rate difference would be. City Manager Hudak replied that it is still premature to answer that question for several reasons, but there needs to be a definition for the value of the bonds in tranches and that would determine the amount per resident, but they can give her the number that was used in the initial documents. Eric Carpenter, Deputy City Manager, stated that he does not have the exact number with him, but he and his staff are working on it. Their interest rate will depend mostly on the market conditions when they get to the market. Some of it will be flexible up until the date issued. Commissioner Rosen Gonzalez stated that she understands, but she would like to know if they are doing the full amount of $169 million. February 22, 2023 City of Miami Beach Hybrid Commission Meeting/RDA/Presentations and Awards Deputy City Manager Carpenter stated that it is still being discussed. The Administration will ask the firm to do the first tranche, but they do not know whether the first tranche will be the entirety of the bonds or a portion thereof. Commissioner Rosen Gonzalez stated that they might be doing this in tranches, but then everyone who gets monies will get a small portion. Deputy City Manager Carpenter stated that the details of the individual agencies are being worked out. They are not pushing anyone out. Commissioner Rosen Gonzalez asked how many agencies are receiving money from the Arts and Culture Bond. Deputy City Manager Carpenter replied that he believes it is about 12 agencies. The discussions that are taking place are regarding what can be started in the next 24 to 36 months. Some of the agencies like the FIU/Wolfsonian expansion may not be ready right away. They may not be asking for all the money immediately, but they do not want to go to market with that unless they are ready to spend it. Commissioner Rosen Gonzalez asked what if the City goes to market now with the 4.5% interest rate and within a year or two the second tranche will be 6% or 7% Deputy City Manager Carpenter replied that the Administration is weighing that in with the cost to the taxpayers as opposed to having the money sit somewhere where it is not being utilized. Commissioner Rosen Gonzalez thanked Deputy City Manager Carpenter. She wanted to find out where the City was on this issue. Motion made by Commissioner Fernandez to adopt Resolution, seconded by Mayor Gelber. Vote: 6-0. Recused: Vice-Mayor Meiner. C7 AD A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE ACQUISITION BY THE CITY OF PROJECTION MAPPING PROJECTORS AND RELATED PRODUCTION EQUIPMENT TO ALLOW FOR THE TRANSFORMATION OF CITY VENUES AND FACILITIES INTO IMMERSIVE PERFORMANCE EXPERIENCES UTILIZING FUNDS UP TO THE AMOUNT REMAINING IN THE GENERAL OBLIGATION BOND FOR ARTS & CULTURE - MISCELLANEOUS ARTS & CULTURE PROJECTS CATEGORY, SUCH EQUIPMENT TO BE USED INITIALLY BY THE MIAMI BEACH CLASSICAL MUSIC FESTIVAL FOR PROGRAMMING DURING PUBLIC PERFORMANCES AND ACTIVATIONS, AND FURTHER, REFERRING THIS ITEM TO THE G.O. BOND OVERSIGHT COMMITTEE FOR ITS CONSIDERATION OF THE AMOUNT TO BE ALLOCATED FOR SUCH EQUIPMENT ACQUISITION. Office of the City Attorney Mayor Dan Gelber Resolution 2023-32509 adopted. Item separated by Commissioner Richardson. Maria Hernandez to handle. February 22, 2023 City of Miami Beach Hybrid Commission Meeting/RDA/Presentations and Awards REFERRAL: General Obligation (G.O.) Bond Oversight Committee. Maria Hernandez to place on the Committee Agenda and to handle. R7 A A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FOURTH AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUNDS, INTERNAL SERVICE FUNDS, AND SPECIAL REVENUE FUNDS BUDGETS FOR FISCAL YEAR 2023 AS SET FORTH IN THIS RESOLUTION AND IN THE ATTACHED EXHIBIT "A." 2:10 p.m. Public Hearing Office of Management and Budget ACTION: Resolution 2023-32511 adopted. The Title of the Resolution was read into the record. The Public Hearing was held. Commissioner Richardson made a motion to adopt the Resolution; seconded by Mayor Gelber. Voice Vote: 7-0. Tameka Otto Stewart to handle. Tameka Otto Stewart, Budget Director, stated that this is the fourth amendment to the Operating Budget. It contains four Items and recommends an increase of $2.8 million. The first three Items are funded with a projected general funds surplus noted in the Q1 projections. The first Item is a companion Item to C7 D, which was approved on the Consent Agenda. The issuance costs of arts and cultural bonds of $1.5 million. The second Item is the fire boat donated by the County in 2021, there is an additional need for $233,000 to repair the boat. The third Item is for the Commission Chambers renovation project, which needs $1.1 million based on the one bid the City has received. Finally, the Allison Island Special Taxing District has a $20,000 budget for license plate readers, but it came in higher than they requested, and they will seek $8,000 from their own funds. R7 C A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, CONSENTING TO THE APPOINTMENT OF JASON GREENE, AS THE CHIEF FINANCIAL OFFICER OF THE CITY OF MIAMI BEACH. Human Resources ACTION: Resolution 2023-32513 adopted. Commissioner Richardson made a motion to adopt the Resolution; seconded by the Body. Voice vote: 7-0. Marla Alpizar to handle. City Manager Hudak stated that today is a great day to exercise our love for public service and appoint a true professional to a position in our government. She thanked the City Commission for its support. It is her honor to appoint Miami Beach’s new Chief Financial Officer (CFO), Jason Greene. He is a seasoned professional with two decades of experience, not just with the Miami Expressway Authority, but the City of Surfside and in multiple capacities as City Manager. He is duly qualified and prepared to take on this new challenge. She welcomed Mr. Greene as part of our family. He is joined today by his wife Carolyn and son Jackson. Mr. Greene has actively participated in the General Obligation (G.O.) Bond Committee; he is also a University of Miami graduate. She is pleased to introduce Mr. Jason Greene. Jason Greene thanked the City Commission. He is extremely excited to start this new chapter with the City of Miami Beach. He has called Miami Beach home since 1996. He has enjoyed everything the City has to offer. As CFO he will manage the finances as if February 22, 2023 City of Miami Beach Hybrid Commission Meeting/RDA/Presentations and Awards they were his own, as, in fact, some of it is since he is a resident. As part of the General Obligation (G.O.) Bond Committee, he has gotten to know many of the City’s staff. He thanked his wife Carolyn and his son Jackson. R7 E A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, DIRECTING THE CITY ADMINISTRATION TO INSTALL SPOTLIGHTS AT THE BASE OF THE PALMS LOCATED ALONGSIDE 41ST STREET IN ORDER TO ILLUMINATE AND HIGHLIGHT THE PALMS’ FRONDS AND ICONIC CROWNS. Office of the City Attorney Not reached 2/1/2023 - C7 Y Commissioner Kristen Rosen Gonzalez ACTION: The Sponsor withdrew the Item. R9 I UPDATE ON RELOCATION OF RAINBOW CHILD CARE CENTER. Commissioner Alex Fernandez Not Reached 2/1/2023 - R9 L / Deferred 12/14/2022 - R9 M / Exp: 4/13/2023 Co-sponsored by Commissioner Kristen Rosen Gonzalez ACTION: The Item was not reached. The Item will be moved to the March 27, 2023 City Commission Meeting. Rafael E. Granado and Lilia Cardillo to place on the Commission Agenda. R9 S DISCUSSION AND UPDATE ON THE BYRON CARLYLE. Not reached 2/1/2023 - R9 V Facilities and Fleet Management ACTION: The Item was not reached. The Item will be moved to the March 27, 2023 City Commission Meeting. Rafael E. Granado and Lilia Cardillo to place on the Commission Agenda.